Accounting standards: IASB to study the costs

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. The IASB undertakes an effects analysis before the issue of a new IFRS. This analysis is communicated by the IASB in different ways. Which of the following would not be a way in which the effects analysis is communicated?

  2. The IASB considers certain matters prior to the issue of a standard. These matters include a range of matters concerning the changes to financial reporting. Which of the following effects would the IASB not take into account?

  3. On application of the new IFRS, investors will be provided with different information upon which to base their decisions. Investor assessment of how management have discharged their stewardship responsibilities, could be changed. Which of the following effects is unlikely to follow from the disclosure of new information under IFRSs?

  4. IFRS based financial statements are used in contracts or regulation. Which of the following is unlikely to be affected as a result of a change in an accounting standard?

  5. Where new and revised pronouncements are applied for the first time, there can be an impact on the drafting of the financial statements. The financial statements will need to reflect the new recognition, measurement and disclosure requirements. What is the recent amendment to IFRS 10 as regards investment entities?

  6. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors contains a general requirement that changes in accounting policies are fully retrospectively applied. When might the general requirement under IAS 8 to retrospectively apply a new IFRS not apply?

  7. When first applying IFRS 15 Revenue from Contracts with Customers, entities should apply the standard in full for the current period, including retrospective application to all contracts that were not yet complete at the beginning of that period. Which of the following is not part of the transition guidance under IFRS 15?

  8. IAS 8 requires the disclosure of a number of matters as regards the new IFRS. Which of the following disclosures are not required by IAS 8 as regards a new IFRS?

  9. IAS 33, Earnings Per Share, requires basic and diluted EPS to be adjusted for the impacts of adjustments result from changes in accounting policies accounted for retrospectively and IAS 8 requires the disclosure of the amount of any such adjustments. Which of the following IFRS are most likely to be affected by the changes introduced by IFRS 15?

  10. Why is it important that the entity should prepare an impact assessment relating to the introduction of the new IFRS?