Part -1:

Que1) Which of the following are possible benefits of global accounting standards?
Select one:
a. Comparable and transparent financial information.
b. Reduced financial statement preparation costs.
c. The availability of high-quality information for capital market participants to inform better decisions.
d. All of the above.
e. None of the above.

Que2) Why does non-comparability arise?
Select one:
a. Companies choose to comply with the standard process promoted by the country's accounting standards regulator.
b. Companies do not use similar inputs.
c. Companies do not apply similar procedures.
d. Companies do not use the same systems of classification of costs and revenues or assets and liabilities.
e. A, B and C.
f. B, C and D.

Que3) Which of the following is integral to ensure comparable accounting figures?
Select one:
a. Consistent use of accounting methods from one period to another by a single firm.
b. Consistent use of accounting methods within a single period across firms.
c. Input data must qualify on the test of ‘reliability' and ‘representational faithfulness'.
d. None of the above.

Que4) Which of the following is correct about the relation between International Financial Reporting Standards (IFRS) adoption and market efficiency?
Select one:
a. Firms enjoy reduced cost of capital in any country.
b. Firms enjoy reduced cost of capital in countries with strong legal enforcement.
c. Both A and B.
d. None of the above.

Que5) According to the Financial Accounting Standards Board (FASB), an ideal monetary unit or measurement scale in financial statements would be one that is stable over time.
Select one:
a. True
b. False.

Que 6) Firm incentives are more important than the accounting standards themselves in understanding IFRS effects.
Select one:
a. True
b. False.

Que7) A country may adopt IFRS:
Select one:
a. when they perceive a network of benefits related to lower transaction costs for foreign financial statement users.
b. when its trade partners or regional neighbours adopt IFRS.
c. even if its domestic standards are particularly well-suited to its domestic institutions.
d. All of the above.
e. None of the above.

Que8) The implementation of IFRS in the EU is said to have improved the earnings quality of banks by mitigating the tendency of managers of commercial banks to engage in earnings management using loan loss provisions.
Select one:
a. True
b. False.

Que9) Which is true about US GAAP (Generally Accepted Accounting Principles)?
Select one:
a. Prior to the 2001-02 accounting scandals, US GAAP were held in relatively higher regard in the USA than international rules.
b. Because of a strong capital market and US confidence in GAAP, the rest of the world sought to emulate the GAAP rules.
c. US GAAP and IFRS differ completely.
d. A and B.
e. All of the above.

Que10) The Norwalk agreement:
Select one:
a. is a short-term project aimed at eliminating minor differences between US and international standards.
b. aims to address emerging issues on a joint basis.
c. looks at promoting consistency in FASB and IASB statements.
d. All of the above are correct.

Part -2:

Que1) What does harmonisation of international accounting standards mean?

Que2) How would you define comparability, consistency and uniformity of the accounting standards?

Que3) Critically evaluate the arguments for greater accounting uniformity.