How to create an IFRS mindset

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. In 2005, the IFRS Foundation created the Education Initiative to support and promote consistent application of International Financial Reporting Standards (IFRS) throughout the world. What is the current purpose of the Education Initiative?

  2. The principle-based nature of IFRS is not fully understood worldwide and so the Education Initiative has concentrated on certain key areas. Which of the following is not a key area of focus for the Education Initiative?

  3. It seems that there is overwhelming support for principle-based standards but there are questions over what principle-based actually means and whether IFRS are actually principle-based. What is meant by a principle based standard?

  4. There are certain underlying definitions that are currently used in IFRS but not dealt with by the Framework. The term Business Model has been used in IFRS 9 Financial Instruments(2009). A reference to the business model was also included in the 2008 Exposure Draft of the Conceptual Framework, but not published in the final version. Which of the following considerations would not be used to determine a business model?

  5. There are many views about the usefulness of the Framework. Currently, the Framework assists preparers in dealing with transactions that are not the subject of an IFRS. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors sets out the role of the Framework in this situation. Which of the following sources must not be referred to by management in dealing with transactions that are not the subject of an IFRS?

  6. The Framework based teaching approach attempts to give students an understanding of IFRS by relating the IFRS requirements to the objective of IFRS financial information and the concepts that underlie IFRS and inform its development. Furthermore, there should be discussion as to why it was not cost effective to maximise the main concepts in the Conceptual Framework. Where is the discussion as regards the above cost effectiveness likely to be found?

  7. Constructive alignment is an outcomes-based methodology for designing, promoting and assessing deep student learning.  It is based upon belief that students construct their learning through engaging in relevant learning activities and the tutor creates the appropriate learning environment. Which of the following is generally agreed not to be an approach to learning?

  8. In many jurisdictions,there is little experience of the use of judgement in reporting under IFRS. Framework based teaching is an initiative by the IASB. Which of the following sentences best describes the nature of Framework based teaching?

  9. The Conceptual Framework sets out the concepts upon which the Standards are based. The majority of IFRS requirements are deemed to be consistent with the concepts set out in the Framework. Which constraint has caused inconsistency between IFRS and the Framework?

  10. Surface learners tended to concentrate on the main facts and issues, whereas those students who interpret the meaning of the text use a deep approach, and the strategic approach is adopted where the intention is to achieve the best possible grades. Which approach does the IASB appear to be adopting through its Framework based teaching initiative?