Flashcards in IASB Deck (20):
How long are the terms for the trustees of the IFRS Foundation?
Three years, with one renewable term.
What is IOSCO?
It is the International Organization of Securities Commissions. ISOCO promotes high standards of regulation to ensure transparent and efficient capital markets.
What is the third objective of the IFRS Foundation?
To take into account the special needs of a range of sizes and types of entities in diverse economic settings.
What is the first objective of the IFRS Foundation?
to develop in the public interest a single set of high quality, understandable enforceable and globally accepted financial reporting standards. These standards require high quality, transparent and comparable information in financial reporting to help make economic decisions.
What is the second objective of the IFRS Foundation?
To promote the use and rigorous application of those standards.
Who appoints members of the IASB, IFRS Advisory Council, and IFRS Interpretation Committee?
The IFRS Foundation.
How long are the terms for Board Members of the IASB?
Five years, renewable one term.
From what entity did the IASB evolve?
The IASB, formed in 2001, evolved from the International Accounting Standards Committee (IASC), which was established in 1973.
What is the fourth objective of the IFRS Foundation?
To promote and facilitate adoption of the IFRS issued by the IASB, through the convergence of national accounting standards IFRS.
How many members does the IASB have?
Does the IASB have enforcement power over companies?
No they do not.
What does the IFRS Advisory Council do?
The council advises the IASB on priorities and the view of interested organizations on major projects, as well as the benefits and costs of proposed standards.
Is IFRS more rule based or principle based?
List the steps of developing International Accounting Standards.
1. Add item to agenda
2. Discuss issue
3. Publish discussion paper if topic is difficult
4. Prepare and vote on exposure draft
5. Issue the exposure draft
6. Analyze the comments on the exposure draft
7. Debate the issue at hand
Under IFRS, if not standards exist on an accounting issue, what should companies use?
The definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses in the Framework.
What did the SEC eliminate for foreign companies listed in the US?
A reconciliation of earnings and equity to US GAAP (Form 20-F) in their financial statements.
What is the highest level of International GAAP?
What is simplified for Small and Medium Sized Entities (SMEs) in IFRS?
Topics that are irrelevant are eliminated, recognition and measurement aspects simplified, disclosures reduced to 10% of those in regular IFRS.
When can revisions happen for SMEs in IFRS?
Revisions for SMEs standards happen every three years at most.