10. conceptual framework

Question 1

What is the role of the IFRS Foundation

Answer 1

Responsible for the governance of the standard setting process

Question 2

What is the role of the IASB

Answer 2

The setting of IFRS standards / solely responsible for issuing IFRS / Produce a single set of understandable + enforceable standards

Question 3

What is the role of the IFRS Advisory council

Answer 3

Provides a forum for individuals to participate in the standard setting process

Question 4

What is the role of the IFRIC

Answer 4

Issues rapid guidance on accounting matters where divergent interpretations of IFRS standards have arisen

Question 5

IFRS Advisory Council 3x objectives

Answer 5

1. Give advice to the IASB on agenda decisions and priorities in its work
2. inform the IASB of the views of organisations and individuals on the council on major standard setting projects
3. To give other advice to the Board or to the trustees

Question 6

2x responsibilities of the IFRS IC

Answer 6

1. To review on a timely basic, newly id’d financial reporting issues not specifically addressed in IFRSs
2. To clarify issues where unsatisfactory or conflicting interpretations have developed/are developing with a view to reach a consensus on the agreement

Question 7

Which of the groups is responsible on developing and issuing IFRSs

Answer 7

Interaction Accounting Standards Board

Question 8

How have the IFRSs improved and harmonised Financial Reporting?

Answer 8

1. Using national requirements
2. As the basis for all or some national requirements
3. As the international benchmark for those countries which develop their own requirements
4. By regulatory authorities for domestic and foreign countries
5. By companies themselves

Question 9

What are the major steps in preparing a new IFRS

Answer 9

1. Establish a consultative group - the IASB will consult with this group
2. On acceptance, a steering committee is made
3. On major projects, IASB develops and publishes a discussion Document for public comment
4. Following receipt and review on comments, exposure draft is produced for public comment
5. Following receipt and review, final IFRS issued.

Question 10

What is the objective of the financial statements

Answer 10

To provide information about the financial positon, performance