IFRS QUESTIONS
True/False:
1.iGAAP includes both International Financial Reporting Standards and International Accounting Standards.
2.International Financial Reporting Standards preceded International Accounting Standards
3.The standard-setting structure used by the International Accounting Standards Board is very similar to that used by the Financial Accounting Standards Board.
4.The rules-based standards of iGAAP are more detailed than the simpler, principles-based standards of U.S. GAAP.
5.The International Accounting Standards Board issues International Financial Reporting Standards.
6.International Accounting Standards are no longer considered part of iGAAP because they have been replaced by International Financial Reporting Standards.
Multiple Choice:
1. Authoritative standards for iGAAP include:
a.International Financial Reporting Standards only.
b.International Financial Reporting Standards and International Accounting Standards only.
c.International Financial Reporting Standards, International Accounting Standards and U.S. GAAP only.
d.International Financial Reporting Standards, International Accounting Standards and any GAAP standard recognized by an organized stock exchange.
2. Which of these statements regarding the iGAAP and U.S. GAAP is correct?
a.U.S. GAAP is considered to be “principles-based” and more detailed than iGAAP.
b.U.S. GAAP is considered to be “rules-based” and less detailed than iGAAP.
c.iGAAP is considered to be “principles-based” and less detailed than U.S. GAAP
d.Both U.S. GAAP and iGAAP are considered to be “rules-based”, but U.S. GAAP tends to be more complex.
3. The IASB's standard-setting structure includes all of the following except
a.Standing Interpretations Committee
b.Standards Advisory Council
c.Standards Comparison Committee
d.Trustees
Short Answer:
- Why would it be advantageous for U.S. GAAP and International GAAP to be the same?.
2. What is the difference between principles-based and rules-based accounting rules? Is iGAAP more principles-based than U.S. GAAP? Explain.
