Questions and Answers

 2. The Conceptual Framework can override requirements in a Standard.

A. True
B. False

 4. When developing requirements for IFRS Standards, can the International

Accounting Standards Board depart from the Conceptual Framework?
a) No
b) Yes, the Board is not required to use the Conceptual
Framework when developing Standards
c) Yes, but only from aspects of the Conceptual Framework and
only if doing so is needed to meet the objective of financial
reporting
  
 6. Entities have to apply the revised Conceptual Framework:
A. Immediately after it is issued
B. For annual reporting periods beginning on or after 1 January
2020, with early application permitted
C. Never - the Conceptual Framework is only used by the
International Accounting Standards Board

 12.The fundamental qualitative characteristics of useful financial information

are: 

A. Comparability and relevance

B. Relevance and reliability
C. Relevance, reliability and comparability
D. Relevance and faithful representation
E. Comparability, relevance and faithful representation
 
 13. For information to be relevant, it has to possess:
A. Only predictive value
B. Only confirmative value
C. Both predictive and confirmatory value
D. Either predictive or confirmatory value, or both
 
 14. The Conceptual Framework describes prudence as:

Mayron Alejandro Peña Garcia

Contaduría Pública.
Estados Financieros Consolidados.
 A. The exercise of caution when making judgements under
conditions of uncertainty
B. A bias towards understating assets or income and towards
overstating liabilities or expenses
C. A preference towards the earlier recognition of expenses and
liabilities than of income and assets
D. A mechanism for smoothing profits over time (understate profits
in good years and overstate profits in bad years)
E. A form of accounting conservatism
 
17. Only a legal entity can be a reporting entity.
A. True
B. False
 
 24. For a right to meet the definition of an asset, it needs to be likely that the
right will produce economic benefits for the entity.
A. True
B. False

30. Which factors may indicate that recognition of an item meeting the
definition of an asset or a liability may not provide relevant information?
Uncertainty about whether an asset or liability exists
Low probability of an inflow or outflow of economic benefits
Other factors
All of the above
None of the above

35. In selecting a measurement basis for an asset or liability, it is more

important to consider the nature of the information that the measurement
basis will produce in the statement(s) of financial performance than in the
statement of financial position.
True
False

Mayron Alejandro Peña Garcia

Contaduría Pública.
Estados Financieros Consolidados.