The objective of the International Accounting Standards Board (IASB) is to

• A.enforce International Financial Reporting Standards.
• B.set International Financial Reporting Standards.
• C.oversee the standard setting process and International Financial Reporting Standards Advisory Council.
• D.provide strategic advice to the International Financial Reporting Standards Advisory Council.

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Which one of these concepts suggests that stock prices react to new information almost instantly?

• A.market power
• B.incentive substitution
• C.efficient market
• D.bargaining power

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Which of the following statements are correct in the context of accounting concepts and principles?
I)The going concern assumption requires that assets be carried at their cost values.
II)Prudence allows the creation of contingency reserves and more generous provisions.
III)Financial information is considered complete even if it excludes non-material information.
IV)Understandability does not require complex information to be excluded from financial reports.

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

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In an efficient market, normally if interest rates rise, share prices will

• A.fall since investors expect a higher return.
• B.rise since banks invest their increased profits.
• C.fall in anticipation of a reversal in the interest rate cycle.
• D.rise due to the overall positive sentiment.

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Which one of the following best describes the objective of the International Financial Reporting Standards (IFRS) Foundation?

• A.to develop an International regulatory framework in the national jurisdictions of countries that produce accountants
• B.to guide investors who compare the financial statements of one entity in one country with those of another entity located elsewhere
• C.to co-ordinate the accounting profession on a global scale by issuing and establishing international standards
• D.to promote the application, convergence and use of International Financial Reporting Standards (IFRS) as a high quality reporting solution

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