The International Federation of Accountants (IFAC) was established by

• A.the United Nations.
• B.the International Accounting Standards Board.
• C.various professional accounting bodies.
• D.the Organization for Economic Co-operation & Development.

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LMN Ltd recently changed the measurement base for their assets. They should I)treat this like a change in an estimate.
II)treat this like a change in the accounting policy.
III)disclose this in the notes to financial statements.

• A.III only
• B.II and III only
• C.I and III only
• D.I only

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The accounting policies used by companies must result in financial reports that are

• A.signed by the CEO or equivalent.
• B.independently audited.
• C.easy to read.
• D.comparable with previous years' reports.

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The ability of a company to pay its bills when and as they fall due is a measure of

• A.compliance with the conceptual framework.
• B.solvency.
• C.the true and fair view of the financial report.
• D.economic value.

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Venturer Ltd has received fees from venture capital activities and has engaged you as the accountant to prepare the financial report for 31 December 20X0. Unable to find a specific reference to venture capital fees in either the conceptual framework or the accounting standards, you establish the appropriate accounting treatment by

• A.using your professional judgment and referring to the conceptual framework's definitions and recognition criteria.
• B.using your professional judgment and referring to generally accepted accounting principles and practice.
• C.consulting with the International Accounting Standards Board.
• D.referring to the fundamental accounting assumptions and conventions.

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