The future of UK GAAP?

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 Accounting Standards Board (ASB) in the UK has published financial reporting exposure drafts (FREDs) setting out revised proposals for the future of financial reporting in the UK and Republic of Ireland. Which of the following areas do the FRED's not deal with?

  2. What do the proposals recommend as the way forward for UK GAAP?

  3. FRED 46 'Application of financial reporting requirements' outlines the revised framework. Which of the following is not a requirement of the FRED?

  4. The ASB has looked at the principles for amending the IFRS for SMEs for application in the UK and this has resulted in the allowance of certain accounting practices. Which of the following accounting practices are not allowed by FRED 48?

  5. There are numerous changes outlined in the proposed approach with the aim of reducing the administrative burden for entities. Which of the following changes is not outlined in the proposed framework?

  6. All entities reporting under UK GAAP will be affected, by the new framework and qualifying entities will need to consider whether they wish to use the reduced disclosure framework. Why might this reduced disclosure be attractive to entities?

  7. Although the ASB is pushing ahead with moving UK GAAP onto an IFRS-based framework, it has decided to defer the mandatory effective date of the revised framework to 1 January 2015. Why has the ASB decided to defer the mandatory effective date of the framework to 2015?

  8. The ASB's drive towards an IFRS framework is likely to be supported by the majority of finance leaders. Why might finance leaders support the move towards an IFRS framework?

  9. Lease accounting changes could result in potential significant changes. For example, both current UK accounting standards and FRED 48 require an entity to classify each of its leases as either a finance lease or an operating lease. Which of the following accounting practices is likely to cause a significant change under the proposals?

  10. Under UK GAAP and FRED 48 there is an option to revalue items of property, plant and equipment. However, the new proposals may create an issue with the application of this model. Which of the following practices may cause an issue with the accounting for property,plant and equipment?