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NEW QUESTION 38
Venturer Ltd has received fees from venture capital activities and has engaged you as the accountant to prepare the financial report for 31 December 20X0. Unable to find a specific reference to venture capital fees in either the conceptual framework or the accounting standards, you establish the appropriate accounting treatment by
- A. referring to the fundamental accounting assumptions and conventions.
- B. using your professional judgment and referring to generally accepted accounting principles and practice.
- C. consulting with the International Accounting Standards Board.
- D. using your professional judgment and referring to the conceptual framework's definitions and recognition criteria.
Answer: D
NEW QUESTION 39
According to the Australian Accounting Standards Board, which one of the following is a benefit of adopting International Financial Reporting Standards (IFRSs)?
- A. to make it easier for tax authorities to calculate taxes on investors' overseas income
- B. to increase foreign investors' understanding of local financial reports
- C. to become a resource for developing nations who can easily adopt IFRSs as a full set of standards
- D. to enable the national government to control activities of foreign multinationals
Answer: B
NEW QUESTION 40
Which of the following are the stated objectives of the International Accounting Standards Board (IASB)?
I)Enforce accounting standards.
II)Develop accounting standards.
III)Work for convergence of accounting standards.
- A. III only
- B. II and III only
- C. I only
- D. I and II only
Answer: B
NEW QUESTION 41
In a stock market that displays strong efficiency, share prices reflect all available
- A. information about past changes in share prices.
- B. public and inside information.
- C. public information.
- D. information about future expansion plans.
Answer: B
NEW QUESTION 42
A multinational company is converting the methodology of reporting by its subsidiaries in various countries to make it uniform with the requirements of the International Financial Reporting Standards (IFRS). While changing the reporting methodologies, accountants have to apply certain judgments.
Which one of the following is not a valid motivation for decision making on reporting methodologies?
- A. to present the company's financial performance in the most favourable way
- B. to be consistent with the methodologies followed in the home country of the company
- C. to present the financial statements in a manner that is understood by most users
- D. to comply with the information demands of government bodies in home country
Answer: A
NEW QUESTION 43
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