Chapter 4 - The regulatory environment

Question 1

What are some elements of regulation?

Answer 1

Local law
Local accounting standards
International accounting standards
Conceptual frameworks
Requirements of international bodies

Question 2

What does GAAP stand for and what is it?

Answer 2

Generally Accepted Accounting Practices
It encompasses the conventions, the rules and the procedures necessary to define accepted accounting practice at a particular time

Question 3

What is the IFRS foundation?

Answer 3

Responsible for appointing members of IASB, IFRS interpretation committee and the IFRS advisory council. Overseen by the IFRS Foundation Monitoring Board

Question 4

What is the IFRS Advisory council?

Answer 4

Gives advice to IASB on agenda and priorities in its work and gives other advice to the board or trustees

Question 5

What is the International Accounting Standards Board (IASB)?

Answer 5

Has complete responsibility for all IASB technical matters including the preparation and publication of IFRSs, Exposure Drafts, withdrawal of IFRSs and final interpretations by the IFRS Interpretations Committee

Question 6

What is the IFRS Interpretations Committee?

Answer 6

Assists the IASB by reviewing accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance

Question 7

What is the process of standard setting?

Answer 7

1. Advisory committee established
2. IASB develops and publishes a discussion paper for public comment
3. Receipt and review of comments on discussion paper
4. Exposure draft & review of feedback is published
5. Receipt and review of comments on exposure draft
6. Final standard issued