ExpertMedium2 marksMultiple Choice
ACCA · Question 03 · The Context and Purpose of Financial Reporting
EuroTrade Logistics operates across multiple European borders. Which TWO of the following are primary functions of the IFRS Foundation and the International Accounting Standards Board (IASB)?
EuroTrade Logistics operates across multiple European borders. Which TWO of the following are primary functions of the IFRS Foundation and the International Accounting Standards Board (IASB)?
Answer options:
A.
Developing a single set of high-quality, globally accepted accounting standards.
B.
Enforcing the application of IFRS standards in national courts.
C.
Promoting the use and rigorous application of IFRS standards.
D.
Conducting the external audits of multinational corporations.
How to approach this question
Identify the standard-setting and promotional roles of the IASB/IFRS Foundation versus enforcement and auditing roles.
Full Answer
The IASB is responsible for developing and publishing IFRS Standards and promoting their use. It does not have the authority to enforce them legally (this is done by local regulators like the SEC or ESMA) nor does it conduct audits.
Common mistakes
Assuming the IASB has enforcement powers.
Practice the full ACCA FA — Financial Accounting Practice Exam 4
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