Problem 1 – 3:

1) It is the standard – setting body in the Philippines at the present time

a) Accounting Standards Council
b) Auditing and Assurance Standards Council
c) Philippine Accounting Standards Board
d) Financial Reporting Standards Council

2) Which of the following statements is true regarding the FRSC?

a) The FRSC is created by PRC upon recommendation of BOA to assist BOA in carrying out
its powers and functions under R.A. No. 9298
b) The FRSC shall be composed of 15 with a chairman and 14 representatives
c) The Chairman and members of FRSC are appointed by PRC upon recommendation of
BOA and shall have a term of three years renewable for another term
d) All of the statements are true

3) All of the following are represented in FRSC, except

a) Board of Accountancy
b) Securities and Exchange Commission
c) Commission on Audit
d) Department of Budget and Management

4) The Philippine Financial Reporting Standards collectively include

a) PFRS corresponding to IFRS
b) PAS corresponding to IAS
c) Philippine Interpretations corresponding to IFRIC and SIC Interpretations and
Interpretations developed by PIC
d) All of these are included in Philippine Financial Reporting Standards

5) It is a global phenomenon intended to bring about transparency and a higher degree of

comparability in financial reporting in order to achieve the goal of one uniform and globally
accepted financial reporting standards.
a) IFRS
b) Borderless accounting
c) World Trade
d) Information Technology
Problem 1 – 4:

1) The International Accounting Standards Board was formed

a) To enforce IFRS in foreign countries
b) To develop a single set of high quality IFRS
c) To establish accounting standards for multinational entities
d) To develop accounting standards for countries that do not have their own standard –
setting bodies
2) The IASB publishes standards called
a) International Accounting Standards
b) Financial Reporting Standards
c) International Financial Reporting Standards
d) Statement of Financial Accounting Standards

3) The IASB employs a due process system which

a) Is an efficient system for collecting dues from members
b) Enables interested parties to express their views on issues under consideration
c) Identifies the accounting issues that are the most important
d) Requires that all CPAs must receive a copy of IFRS

4) What is due process in the context of standard – setting by IASB?

a) IASB operates in full view of the public
b) Public hearings are held on proposed standards
c) Interested parties can make their views known.
d) All of these are part of due process in standard – setting

5) IFRIC Interpretations issued by IASB

a) Are considered authoritative and must be followed
b) Cover newly identified financial reporting issues not specifically addressed
c) Cover issues where unsatisfactory or conflicting interpretations have developed
d) All of these are true about IFRIC Interpretations