IFRS standards:

A. Are established by the Financial Accounting Standard Board (FASB)

B. Are established International Accounting Standard Board (IASB)

C. Are enforced by the International Accounting Standard Board (IASB)

D. Are established by the Securities and Exchange Commission (SEC)

What are the main reasons why US GAAP and IFRS differ?

A. US GAAP was developed to primarily satisfy the need of investors and creditors.

B. US GAAP was developed to primarily satisfy the need of tax authorities and government planners.

C. IFRS and US GAAP standard setters are operating in the countries with the same court and legal system

D. Cultural differences have no effect on developing multiple different standards in the world including IFRS and US GAAP

Select the true statement from the following:

A. There are only two accounting standards in the world: US GAAP and IFRS

B. Many countries have their own accounting standards, but US GAAP is the only one that is allowed for the publicly traded companies on the global stock exchanges

C. There are two sets of acceptable rules for international stock exchanges—GAAP and IFRS

D. There are over 130 countries that have either adopted or signed to adopt US GAAP.

Which of the following is a benefit of the convergence between US GAAP and IFRS?

A. Increased comparability between financial statements produced in different countries

B. All companies now have a choice between different sets of financial reporting standards

C. The IASB and FASB use the exact same conceptual framework to generate accounting standard

D. All companies will produce financial statements in English

As a result of the convergence efforts since 2007:

A. the SEC began allowing foreign companies to report under IFRS without reconciliation to US G

B. IFRS was required to use for US (domestic) companies

C. US GAAP was defined as the high-quality, globally accepted accounting standard and thus no changes were introduced to it

D. US GAAP was required to use in more than 15 countries

IFRS and US GAAP are

A. drastically different even for most commonly encountered transactions

B. different as US GAAP is accrual based and IFRS is the cash based

C. different as US GAAP is cash based and IFRS is the accrual based

D. largely grounded in the same principles

IFRS and US GAAP differ because:

A. IFRS is more rules based and US GAAP is more principles based

B. IFRS is more objective and US GAAP is more subjective

C. IFRS is more principles based and US GAAP is more rules based

D. IFRS is more prescriptive and US GAAP is more descriptive

One significant difference between US GAAP and IFRS is:

A. IFRS does not allow the use of FIFO

B. IFRS does not allow the use of LIFO

C. IFRS does not capitalize shipping costs related to inventory

D. US GAAP does not allow LIFO

"Development" costs refer to costs firms incur in developing new products, process and services. They are part of "Research and Development' costs. Which of the following statements is true with respect to accounting for development costs:

A. US GAAP requires development costs to be expensed as incurred unless addressed by guidance in another ASC Topic.

B. IFRS requires development costs to be expensed as incurred unless addressed by guidance in another IASB Topic.

C. US GAAP requires development costs to be capitalized when technical and economic feasibility of a project can be demonstrated in accordance with specific criteria, including: demonstrating technical feasibility, intent to complete the asset and ability to sell the asset in the future.

D. US GAAP and IFRS have the same requirements for development costs.

Which of the following is TRUE regarding the convergence between US GAAP and IFRS?

A. The main justification for IFRS and US GAAP convergence was a drastic difference between two standards in all of the transactions

B. Convergence will be achieved when the differences in the way GAAP and IFRS account for and report transactions are eliminated.

C. Convergence will be achieved when IFRS and US GAAP will be completely eliminated and instead the new, superior quality single globally accepted accounting standard will be set up.

D. While convergence is not attainable in the nearest future, the goal to keep US GAAP and IFRS as comparable as possible is still in the FASB and IASB agendas.

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