John Cavender

ACC 311 -102

9/30/10

Exercises Unit 1 - 1, 2, 3

Unit 1

1. International Financial Reporting Standards are comprised of which of the following?

d. all of the above

2. How can national standard-setting bodies be involved in setting International Financial

Reporting Standards?

d. all of the above

3. How are International Financial Reporting Standards enforced?

b. Regulatory bodies of individual countries

Exercises Unit 2 - 1, 2, 3, 4

1. The conceptual framework for IFRS addresses:

d. all of the above

2. What is the status of the IFRS/US GAAP convergence project related to conceptual

frameworks?

c. It is part of the long-term convergence project

3. What are differences between the conceptual framework for IFRS and US GAAP?

a. Measurement methods

4. Your company is considering switching from US GAAP to IFRS. Your CEO, Julie

Jones, has asked you to identify the major differences in the conceptual frameworks of

US GAAP and IFRS so that she can understand the different foundations of the

accounting rules.
I would inform Julie Jones that US GAAP uses historical cost in determining that value of

capital, while IFRS will let you use historical cost, current cost, realizable value, and present

value but without set guidelines of which method to use. Another difference occurs in the

financial statement, the detailed information between liabilities and equity in relation to

convertible debt is not the same. As well a minor difference exists in characteristics of the

framework. US GAAP has the same qualities as IASB framework but also makes it easier to

compare two entities due to an expected consistency.