Chapter 3
Multiple Choice
1. Which of the following is not an environmental factor that could impact on the development of a
country’s accounting system?
2. What is the current acronym for the body most responsible for issuing international accounting
standards?
3. How many trustees serve on the IASC Foundation?
4. How many members serve on the IASB?
5. Which of the following bodies has the responsibility to issue international financial reporting
standards (IFRS)
6. Which of the following is not a use of international accounting standards?
7. How does the IASC enforce its standards?
8. What is the name given to the agreement between the FASB and IASC to harmonize accounting
standards?
9. What is the title of the form that foreign companies have used to reconcile their financial
statements to U. S. GAAP?
10. Which of the following is not a qualitative characteristic contained in the IASB’s Framework for
the Preparation of Financial Statements?
11. Which of the following is not an element of financial statements contained in the IASB’s
Framework for the Preparation of Financial Statements?
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12. Which of the following is seen as a pervasive difference between IASB’s and FASB’s Conceptual
Frameworks?
13. Which of the following concepts is contained in the FASB’s conceptual framework but not in the
IASC’s
Essay
1. Discuss the environmental factors that impact on the development of a country’s accounting
system.
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2. Discuss the approaches a company might take when issuing financial reports to users in foreign
countries.
3. What is the purpose of the International Accounting Standards Board?
4. Discuss the factors that have contributed to the need for new approaches to international standard
setting.
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5. Discuss the IASB’s annual improvements project..
6. Discuss the composition and role of The International Accounting Standards Board.
7. Discuss the duties of the trustees of the International Accounting Standards Committee
Foundation.
8. Discuss the role of The International Financial Reporting Interpretations Committee
9. How are IASB standards used by various countries?
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10. Discuss the Short-term International Convergence Project
11. Discuss the IASB-FASB Norwalk agreement.
12. List the milestones contained in the FASB-IASB Roadmap Convergence Project.
13. What is the objective of the joint FASB-IASB Convergence Project?
14. Under rules enacted prior to 2007, how could a foreign company list its securities for sale in U. S.
capital markets? How did this rule change?
15. Discuss the objectives of accounting as defined by the IASB’s Framework for the Preparation of
Financial Statements
16. Discuss the qualitative characteristics of accounting information as defined by the IASB’s
Framework for the Preparation of Financial Statements.
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17. Discuss the elements of financial statements defined by the IASB’s Framework for the
Preparation of Financial Statements.
18. Discuss the concepts of capital and capital maintenance discussed in the Framework for the
Preparation of Financial Statements.
A final issues addressed in the framework were concepts of capital. Under the financial concept
19. Discuss IFRS No. 1, “First Time Adoption of International Reporting Standards.