IFRS Standards: The Quiz

Reviewed by Editorial Team

The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.

Learn about Our Editorial Process

| By Paul Pacter

Paul Pacter

Community Contributor

Quizzes Created: 2 | Total Attempts: 170,703

| Attempts: 71,479

Questions

Feedback

During the Quiz End of Quiz

Difficulty

Easy First Hard First Sequential

1/216 Questions

A statement of financial position is required as part of a complete set of IFRS financial statements.
- True
- False

About This Quiz

You will be asked to answer 10 true-false questions selected randomly from a pool of over 200 questions. The questions are based on the information in the 2017 edition of ‘Pocket Guide to IFRS® Standards:The Global Financial Reporting Language’ (the “Guide”). For most questions, the answer is contained directly in the Guide. For some questions, the See moreGuide includes enough information to enable an ‘educated guess’ at the answer.
In answering the questions:
-- assume that the amounts involved are material,
-- assume normal circumstances rather than a possible exceptional case, and
-- base your answer on the latest version of full IFRS Standards unless the question specifically asks about the IFRS for SMEs® Standard.
You will be able to review your answers before final submission. After you submit your answers, you will immediately get a grade and be shown the correct answers. If you quit before answering all 10 questions, you will not be graded.

The questions and answers have not been reviewed or approved by the International Accounting Standards Board or IFRS Foundation and should not be relied on as an official interpretation of IFRS Standards.

Entire quiz © Copyright IFRS Foundation. All rights reserved.
By taking this quiz you consent to the IFRS Foundation processing and storing any personal details you provide in accordance with the Foundation's Terms and Conditions and Privacy and Cookies Policy on its website.

Quiz Preview

Quiz Review Timeline (Updated): Mar 22, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
Jun 27, 2014

Quiz Created by
Paul Pacter

Recent Quizzes

MCQ on IFRS vs GAAP MCQ on IFRS vs GAAP

Quiz on AUTOCIP Exception Logics Quiz on AUTOCIP Exception Logics

Financial Literacy Trivia Exam Test! Financial Literacy Trivia Exam Test!

Fiscal Year End: Financial Reporting Quiz Fiscal Year End: Financial Reporting Quiz

Presenting Practice Site Financial Information to Providers Presenting Practice Site Financial Information to Providers

IFRS and GAAP Accounting Quiz: Test IFRS and GAAP Accounting Quiz: Test

Back to top

IFRS Standards: The Quiz

A statement of financial position is required as part of a complete set of IFRS financial statements.

Quiz Preview

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.

Many academic studies of the use of IFRS Standards have concluded that IFRS Standards have improved efficiency of capital markets or promoted cross-border investment.

Consolidated financial statements are the financial statements of a group of companies in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity.

A summary of significant accounting policies must be included in the notes to IFRS financial statements.

If an item of property, plant, and equipment is impaired, the entity must reduce that item’s carrying amount to its recoverable amount, and recognise an impairment loss.

IFRS Standards are developed by the International Accounting Standards Board, which operates under the independent, public-interest IFRS Foundation and is not an agency of any government.

The mission of the IFRS Foundation is to develop, in the public interest, a single set of high quality global accounting standards that bring transparency, accountability and efficiency to financial markets around the world.

Under IFRS Standards, when one company (the parent) controls another company (the subsidiary), the parent is required to prepare consolidated financial statements (with limited exceptions).

Under IFRS Standards, the objective of financial reporting is to provide financial information about a company that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to that company.

Under IFRS Standards, in a business combination the acquiring company generally recognises the assets acquired, and the liabilities assumed, at their fair values on the acquisition date.

Once a new IFRS Standard or major amendment has been in place for several years, the International Accounting Standards Board conducts a Post-implementation Review to assess whether the Standard is achieving its objective and, if not, what amendments should be considered.

The use of one set of high quality standards by companies throughout the world improves the comparability and transparency of financial information and reduces financial statement preparation costs.

Under IFRS 16 Leases, a lessee recognises an asset representing its right to use the underlying leased asset and a liability representing its obligation to make lease payments.

More than 100 jurisdictions currently require IFRS Standards for all or most domestic listed companies.

Under IFRS Standards, a company must disclose information about its relationships and transactions with related parties and about compensation of key management personnel.

In a 2012 report, the Trustees of the IFRS Foundation reaffirmed their belief that a single set of IFRS Standards is in the best interests of the global economy.

At the end of each reporting period an entity must translate foreign currency monetary items (such as cash, investments, and accounts receivable and payable) at the closing exchange rate (the rate at the end of the reporting period).

A company that adopts IFRS Standards for the first time must measure and disclose how the transition from its previous national standards to IFRS Standards affected the entity’s reported financial position, financial performance, and cash flows.

Under IFRS Standards, inventories are normally measured at the lower of cost and net realisable value.

If an IFRS Standard does not specifically address a particular kind of transaction, IFRS Standards require management to use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable.

Under IFRS Standards, revenue from providing services to a customer is typically recognised over a period of time--the period in which the services are provided.

For statement of cash flows, operating activities are the principal revenue-producing activities of the entity.

Good accounting standards enable capital markets to allocate funds more efficiently.

In most of the jurisdictions that have adopted IFRS Standards, the auditor’s report refers to conformity with International Financial Reporting Standards.

IFRS Standards require that share-based payment transactions, including the issue of shares and share options, must be recognised in the financial statements.

Derivative financial instruments ('derivatives') can be assets or liabilities under IFRS Standards.

Under IFRS Standards, inventories must be written down to net realisable value if net realisable value is below cost.

If a country does not have a stock exchange, it does not benefit from IFRS Standards.

The requirements in IFRS Standards (Standards and mandatory application guidance) are available for free download on the IFRS Foundation's website.

A company that adopts IFRS Standards for the first time in 2016 must also restate the disclosures relating to 2015 that are included in the notes to its 2016 financial statements (with some exceptions).

An IFRS Foundation study of over 140 jurisdictions found that over 80% of the jurisdictions already require the use of IFRS Standards by all or most public companies.

The International Accounting Standards Board publishes its proposed Standards for public comment in a document called an ‘Exposure Draft’.

A company purchased a license to use, for five years, computer software developed by another company. Under IFRS Standards the license is recognised as an asset and its cost amortised over the five years.

The International Accounting Standards Board monitors the implementation of new or amended IFRS Standards to identify any implementation problems that may need to be addressed by an IFRIC Interpretation or a narrow-scope amendment to the Standard.

Under IFRS Standards, assets classified as 'held for sale' must be presented separately in the statement of financial position.

The European Union Accounting Regulation requires that all European companies whose securities trade in a regulated securities market must use IFRS Standards as adopted by the EU in their consolidated financial statements.

The comment letters that the International Accounting Standards Board receives on discussion documents and Exposure Drafts are public documents, available on the IFRS Foundation website.

Most of the listed companies on the main board of the stock exchange in Switzerland use IFRS Standards.

Under IFRS Standards, a company applies the same accounting policies in quarterly and half-yearly reports as in its most recent annual report.

A statement of cash flows is required as part of a complete or condensed set of financial statements included in an interim financial report prepared under IFRS Standards.

A deferred tax asset is recognised for the carryforward of unused tax losses and unused tax credits to the extent that it is probable that the company can use those carryforwards to reduce future tax payments.

An intangible asset is an identifiable non-monetary asset without physical substance.

A warranty obligation is an example of a provision under IFRS Standards.

The International Accounting Standards Committee (IASC) began setting International Accounting Standards (now known as IAS Standards) in 1973.

Under IFRS Standards, the recoverable amount of recognised goodwill must be estimated each year, and an impairment loss is recognised if the recoverable amount is less than the carrying amount.

If a contract with a customer requires an entity to deliver two distinct goods or services, it must recognise revenue separately for each of the two goods or services when they are delivered to the customer--even if the customer pays a single lump-sum amount up front.