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What are the barriers of developing one set of global standards?1.
disagreement on the ____ treatment of a particular issue2. _________
pressures
An item should be __________ in its financial statement element if a
future economic benefit from the item is __________ and the item's value
or cost can be measured reliably
SEC Required FilingsU.S. firms are required of file this report quarterly with updated financial statements
6. _____ value- the amount at which two parties in an arm's-length transaction would exchange the asset
SEC Required FilingsThese three forms involve the beneficial ownership
of securities and can be used to learn about purchases and sales of
company securities by insiders
The IASB define an asset as a _______ from which a future benefit is
expected to flow. FASB defines an asset as a future economic benefit
using the word ________
A company will often present a ____________ statement showing what its
financial results would have been under an alternative reporting system
What are the three barriers to creating a coherent framework1.
________- 2. Standard ______- there are three approaches to this,
principles based, rules based, and objectives oriented3. ___________- a
trade-off in financial reporting is between properly valuing the
elements at one point in time and valuing the changes between points in
time
The conceptual framework is used in the ____________ of accounting standards
SEC Required FilingsA company must file this to disclose material
events (acquisitions and disposals, changes in management or governance
or matters related to its accountants, its financial statements or the
markets it trades in)
SEC Required FilingsThis registration statement is filed prior to the
sale of new securities to the public. Includes audited financial
statements, risk assessment, underwriter ID and estimated amount and use
of proceeds
going concern assumes the company will continue to _____ for the foreseeable future
The IASB framework lists ______ and expenses as elements related to
_________. FASB framework includes _______, expenses, gains,losses and
comprehensive income. (FASB splits IASB Aggregates)
What are the pros of convergence efforts to a set of global
standards?1. Increased ____________2. Decrease problems and expenses of
raising capital in ________ markets3. Decrease problems and expense of
preparing __________ financial statements for foreign subsidiaries
a ______ based approach that gives specific guidance about how to classify transactions
SEC Required FilingsThis is a required annual filing similar to the
annual report to shareholders equivalent to the 40F for Canadian
companies and 20F for other foreign issuers
Because of the increasing globalization of the markets the
international organization of securities commissions has a goal of
uniform financial _________ across countries
The objective of financial reporting is to provide _________ about the
firm to current and ________ investors and _________ that is useful for
making their decisions about investing in or lending to the firm
Government agencies that have legal authority to enforce compliance
with financial reporting standards are called ____________ authorities
i.e. SECC or FSA
Materiality is an aspect of __________
The three important features for the structure and content of
financial statements1. Classified Balance Sheet- showing _______ and
noncurrent assets and liabilities2. ________ Information- is required on
the face of each financial statement and in the notes3. Comparative
Information- for _____ periods should be included
In the united states the financial accounting standards board sets forth _____ (GAAP or IFRS)
Non US companies are typically required to file the form semiannually- equivalent to the US form 10Q
Three characteristics of a financial reporting framework are 1.
___________- Full disclosure and fair presentation reveal the underlying
economics of the company 2. ___________- all types of transactions that
have financial implications should be part of the framework, including
new types of transactions that emerge3. __________- Similar transactions
should be accounted for in similar ways across companies, geographic
areas and time periods
Outside the united states the international accounting standards board sets forth ____
The FASB does not allow the _______ valuation of most assets
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