T7 Practice Exam Questions with Answers International Financial Reporting Standards for Compensation Professionals Exam Certification

Approves principles-based standards and informs International Accounting Standards Board (IASB) of implications of proposed standards

Oversees standards set for the public sector

Monitors International Accounting Standards Board (IASB)’s effectiveness, raise funds, approve budget, responsible for constitution

Provides advice to International Accounting Standards Board (IASB) on priorities

Past service cost

Current service cost

Net interest on the net defined benefit liability (asset)

Time value of money

Noncurrent assets cannot be easily converted to cash within a year

Noncurrent assets are not affected by the fiscal year

Noncurrent assets cannot be easily converted to cash within two years

Noncurrent assets can only be converted to cash until the subsequent fiscal year

Directors and management personnel

All employees except casual employees

All employees

All full-time employees

To show liability and equity and the manner in which those funds are employed

To account for changes in cash during the accounting period

To show details of the nature of a company’s operating activities

To reconcile the beginning and ending balances of stockholders’ equity

Before the end of the fiscal year

Within a year

Within a fiscal year

Within two years

Assets

Owners’ equity

Contributed capital

Liabilities

Net interest on the net defined benefit liability (asset)

Time value of money

Current service cost

Actuarial gains and losses

Complete, neutral, freedom from error

Assets, liabilities, equity

Predictive value, confirmatory value, relevance

Comparability, verifiability, timeliness

Cost and materiality

Predictive value and confirmatory value

Relevance and faithful representation

Timeliness and understandability

Provide guidance on reporting issues not specifically addressed in International Accounting Standards Board (IASB)’s standards

Provide advice to International Accounting Standards Board (IASB) on priorities

Monitor International Accounting Standards Board (IASB)’s effectiveness, raise funds, and approve budget

Discuss the roles and responsibilities of the International Accounting Standards Board (IASB) and its advisory groups

Because it involves incorporating actuarial assumptions into measurement of the obligation and the expenses

Because defined benefits plan obligations are not measured on a discounted basis

Because defined benefits plans must be settled within ten years after the employee renders the related service

Because the employer is not allowed to incorporate actuarial assumptions into measurement of the obligation and the expenses

Standards Advisory Council (SAC)

International Accounting Standards Committee (IASC) Foundation

International Financial Reporting Interpretations Committee (IFRIC)

International Accounting Standards Board (IASB) staff

Period costs

Production costs

Cost of materials

Expenses

The employer must assume risk for the plan

Contributions must be discounted

Contributions must not be discounted

The employer must pay a specified amount to the employee

Short-term benefits

Post-employment benefits

Termination benefits

Long-term benefits

Net defined benefit liability (asset)

Asset ceiling

Fair value

Net present value

Develop accounting policies in the absence of specific standards

Document a historical record of all judgments

Develop alternate interpretations of specific standards

Encourage change to standards as Board members change

Informs International Accounting Standards Board (IASB) of implications of proposed standards

Appoints International Accounting Standards Board (IASB) members

Approves principles-based standards but does not issue detailed application guidelines

Has the sole responsibility for setting standards

Retained earnings and treasury stock

Investing activities and financing activities

Operating revenues and noncurrent assets

Revenue items and owners’ equity

Going concern

Monetary unit

Periodicity

Economic entity