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Flashcards in Ch 1 + 2 IFRS Insights Deck (17):
0

4 reasons to develop one set of international financial accounting standards?

1 multinational corporations
2 mergers and acquisitions btw international companies
3 information technology is improving intl communication
4 financial markets, global currency, equity, bond and derivative markets exist throughout the world

1

IFRS and IASB

International Financial Reporting Standards

International Accounting Standards Board

2

GAAP and IFRS standard setting are primarily driven by?

Investors and creditors

3

Compared to the GAAP, IFRS is more..

Principles based standards, while the GAAP is more
rules based standards

4

What does the SEC allow foreign companies to do?

The SEC allows foreign companies to trade shares in
US markets by filing their IFRS financial statements
Without reconciliation of GAAP

5

2 organizations that have a role in international standard
Setting?

International Organization of Securities Commissions (IOSCO)
And IASB

6

3 Main standards of the International Organization of
Securities Commissions (IOSCO)?

Ensuring global markets can operate In An efficient and
Effective basis

Promote regulation and surveillance of intl securities transactions

Provide enforcement against offenses

7

IOSCO Memorandum of understanding (MOU) 4 objectives?

1 Facilitates cross border cooperation

2 reduces global systemic risk
3 protects investors
4 ensures fair and efficient securities markets

8

4 organizations that set standards internationally?

1 IASB,
2 Standards Advisory Council,
3 International Financial Reporting Interpretations Committee (IFRIC),
4 International Accounting Standards Committee Foundation (IASCF)

9

What do the trustees of the International Accounting Standards Committee Foundation (IASCF) do?

Select members of the IASB and Standards Advisory Council,
Fund their activities and generally oversee the IASB's
Activities

10

Mission of the IASB?

Develop in the public interest a single set of high-quality
And understandable general purpose IFRS financial
statements

11

Standards Advisory Council (SAC) functions?

SAC consults with IASB on major policy and technical issues
And helps select task force members

12

International Financial Reporting Interpretations Committee (IFRIC) main purpose?

IFRIC develops implementation guidance for consideration
By IASB

Issues International Financial Reporting Interpretations that are considered authoritative and must be followed

13

Major difference between IASB and FASB?

IASB has 14 members, which is twice as many as FASB
This reflects a broader need for geographic representation

14

3 major types of pronouncements issued by IASB?

1 international financial reporting standards
2 framework for financial reporting
3 international financial reporting interpretations

15

The hierarchy of rules in IFRS?

1 international reporting financial standards

2 international accounting standards

3 interpretations from the IFRIC or the former SIC

16

The authoritative status of the Framework for the Preparation and Presentation of Financial Statements is as follows?

Used when there is no standard or interpretation related
To the reporting issues under consideration