IFRS Standards: The Quiz

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IFRS Standards: The Quiz - 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 Guide 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 abou


Questions and Answers
  • 1. 
    The mission of the IFRS Foundation and the International Accounting Standards Board is to develop, in the public interest, high quality accounting standards that countries can use as the basis for designing their own national standards.
    • A. 

      True

    • B. 

      False

  • 2. 
    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.
    • A. 

      True

    • B. 

      False

  • 3. 
    The IFRS Foundation decides which countries must use IFRS Standards.
    • A. 

      True

    • B. 

      False

  • 4. 
    Because it is not possible to make a reliable estimate of the fair value of share options when they are granted to employees, under IFRS Standards, an expense is recognised and measured when the employee exercises the option.
    • A. 

      True

    • B. 

      False

  • 5. 
    Under IFRS Standards, only companies with public accountability (listed companies and financial institutions) must present a cash flow statement.
    • A. 

      True

    • B. 

      False

  • 6. 
    IFRS Standards require all companies whose securities are publicly traded and that use IFRS Standards to prepare a full or condensed set of interim financial statements at least half-yearly. 
    • A. 

      True

    • B. 

      False

  • 7. 
    More than 100 jurisdictions currently require IFRS Standards for all or most domestic listed companies.
    • A. 

      True

    • B. 

      False

  • 8. 
    The Trustees of the IFRS Foundation appoint the members of the International Accounting Standards Board.
    • A. 

      True

    • B. 

      False

  • 9. 
    IASB meetings are closed to the public, but summaries of all decisions are published.
    • A. 

      True

    • B. 

      False

  • 10. 
    IFRS Standards provide the financial information for public capital markets covering over half of the world’s GDP.
    • A. 

      True

    • B. 

      False

  • 11. 
    Approximately 150 people are on the staff of the International Accounting Standards Board and IFRS Foundation.
    • A. 

      True

    • B. 

      False

  • 12. 
    A contingent liability is not recognised in the statement of financial position.
    • A. 

      True

    • B. 

      False

  • 13. 
    Under IFRS Standards, financial assets and financial liabilities are offset (netted in the statement of financial position) only when the entity has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or realise the asset and settle the liability simultaneously.
    • A. 

      True

    • B. 

      False

  • 14. 
    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.
    • A. 

      True

    • B. 

      False

  • 15. 
    The members of the International Accounting Standards Board serve as representatives of the individual accounting standard-setting boards from their home countries.
    • A. 

      True

    • B. 

      False

  • 16. 
    Under IFRS 16 Leases, issued in 2016, a lessee’s contractual obligations under all material leases longer than one year are shown as liabilities in the lessee’s balance sheet.
    • A. 

      True

    • B. 

      False

  • 17. 
    Under IFRS Standards, all borrowing costs are charged to expense when incurred.
    • A. 

      True

    • B. 

      False

  • 18. 
    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).
    • A. 

      True

    • B. 

      False

  • 19. 
    Under IFRS Standards, all investments in equity securities are measured at fair value in the statement of financial position, with changes in those fair values from period to period reflected in the measurement of profit or loss.
    • A. 

      True

    • B. 

      False

  • 20. 
    The International Accounting Standards Board has a public consultation on its agenda of projects once every three years.
    • A. 

      True

    • B. 

      False

  • 21. 
    One of the International Accounting Standards Board's responsibilities is to enforce the implementation of IFRS Standards to ensure that the objective of high quality financial reporting is achieved.
    • A. 

      True

    • B. 

      False

  • 22. 
    If a country does not have a stock exchange, it does not benefit from IFRS Standards.
    • A. 

      True

    • B. 

      False

  • 23. 
    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.
    • A. 

      True

    • B. 

      False

  • 24. 
    The IFRS Foundation has found that most countries in the world have modified IFRS Standards before adopting IFRS Standards as their national standards.
    • A. 

      True

    • B. 

      False

  • 25. 
    Most European countries have their own national accounting standards, making it difficult for investors to compare financial information reported by listed companies across borders.
    • A. 

      True

    • B. 

      False

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