Q.1 Which organization is responsible for issuing International Financial Reporting Standards (IFRS)?
IASB
FASB
SEC
GAAP Board
Explanation - The International Accounting Standards Board (IASB) issues IFRS to ensure global accounting consistency.
Correct answer is: IASB
Q.2 What does IFRS stand for?
International Finance Reporting Standards
International Financial Reporting Standards
International Fiscal Rules System
International Framework for Reporting Standards
Explanation - IFRS is short for International Financial Reporting Standards, providing a common accounting language.
Correct answer is: International Financial Reporting Standards
Q.3 Which accounting standard deals with inventories under IFRS?
IAS 1
IAS 2
IAS 7
IAS 16
Explanation - IAS 2 provides guidance on accounting for inventories, including measurement and cost formulas.
Correct answer is: IAS 2
Q.4 Which is the main objective of accounting standards?
To increase profits
To ensure uniformity and comparability
To reduce expenses
To help taxation
Explanation - Accounting standards ensure financial statements are consistent and comparable across companies.
Correct answer is: To ensure uniformity and comparability
Q.5 Which standard under IFRS covers the presentation of financial statements?
IAS 1
IAS 7
IAS 8
IFRS 9
Explanation - IAS 1 sets out the overall requirements for financial statements, including structure and minimum content.
Correct answer is: IAS 1
Q.6 What does IAS 7 primarily deal with?
Cash Flow Statements
Inventory Valuation
Property, Plant, and Equipment
Revenue Recognition
Explanation - IAS 7 provides rules for the preparation of cash flow statements, classifying activities into operating, investing, and financing.
Correct answer is: Cash Flow Statements
Q.7 Which of the following is true about IFRS adoption?
It is mandatory in all countries
It is used only in the USA
It is adopted by many countries worldwide
It replaces taxation rules
Explanation - Many countries have adopted IFRS for global comparability, though not all have made it mandatory.
Correct answer is: It is adopted by many countries worldwide
Q.8 Which IFRS standard deals with financial instruments?
IFRS 7
IFRS 9
IAS 10
IAS 19
Explanation - IFRS 9 covers classification, measurement, and impairment of financial instruments.
Correct answer is: IFRS 9
Q.9 What is the primary goal of IFRS?
Increase company profits
Standardize accounting globally
Reduce audit work
Control government budgets
Explanation - IFRS aims to provide a global framework for consistent and transparent financial reporting.
Correct answer is: Standardize accounting globally
Q.10 Which accounting standard relates to employee benefits?
IAS 12
IAS 17
IAS 19
IFRS 15
Explanation - IAS 19 deals with accounting for employee benefits like pensions and post-employment benefits.
Correct answer is: IAS 19
Q.11 Which of the following is a key difference between IFRS and GAAP?
IFRS is rules-based, GAAP is principles-based
IFRS is principles-based, GAAP is rules-based
Both are rules-based
Both are principles-based
Explanation - IFRS emphasizes principles and flexibility, whereas GAAP relies more on detailed rules.
Correct answer is: IFRS is principles-based, GAAP is rules-based
Q.12 Which standard addresses accounting policies, changes in estimates, and errors?
IAS 1
IAS 8
IFRS 5
IAS 21
Explanation - IAS 8 provides guidance on selecting accounting policies and handling changes or corrections.
Correct answer is: IAS 8
Q.13 What is the main purpose of IAS 16?
Revenue recognition
Accounting for inventories
Property, Plant and Equipment
Cash flow reporting
Explanation - IAS 16 covers recognition, measurement, and depreciation of property, plant, and equipment.
Correct answer is: Property, Plant and Equipment
Q.14 Which accounting body issues accounting standards in India?
IASB
FASB
ICAI
SEC
Explanation - The Institute of Chartered Accountants of India (ICAI) is responsible for issuing accounting standards in India.
Correct answer is: ICAI
Q.15 Which IFRS standard covers revenue from contracts with customers?
IAS 18
IAS 20
IFRS 15
IFRS 16
Explanation - IFRS 15 provides a single, principles-based model for revenue recognition from contracts with customers.
Correct answer is: IFRS 15
Q.16 Which of the following is NOT an advantage of IFRS adoption?
Global comparability
Improved transparency
Reduced accounting fraud
Guaranteed profitability
Explanation - IFRS improves comparability and transparency but cannot guarantee company profitability.
Correct answer is: Guaranteed profitability
Q.17 Which standard deals with accounting for leases under IFRS?
IAS 17
IFRS 16
IAS 10
IAS 28
Explanation - IFRS 16 replaced IAS 17 and provides the accounting treatment of leases.
Correct answer is: IFRS 16
Q.18 Which principle underlies IFRS?
Conservatism
Consistency
Fair Presentation
Materiality
Explanation - Fair presentation ensures financial statements reflect true and fair financial position under IFRS.
Correct answer is: Fair Presentation
Q.19 Which standard deals with accounting for foreign currency transactions?
IAS 12
IAS 18
IAS 21
IFRS 7
Explanation - IAS 21 governs how to account for foreign currency transactions and translation of financial statements.
Correct answer is: IAS 21
Q.20 What does IAS 12 deal with?
Deferred Tax
Leases
Cash Flows
Inventory
Explanation - IAS 12 deals with income taxes, including current and deferred tax assets and liabilities.
Correct answer is: Deferred Tax
Q.21 Which of the following financial statements is NOT mandatory under IAS 1?
Statement of Financial Position
Income Statement
Statement of Cash Flows
Statement of Tax Collection
Explanation - IAS 1 requires financial position, performance, cash flows, and equity but not a tax collection statement.
Correct answer is: Statement of Tax Collection
Q.22 What does IFRS 3 deal with?
Business Combinations
Employee Benefits
Leases
Inventories
Explanation - IFRS 3 specifies accounting for business combinations, including goodwill.
Correct answer is: Business Combinations
Q.23 Which body replaced the IASC in issuing standards?
FASB
IASB
SEC
GAAP Board
Explanation - The International Accounting Standards Board (IASB) replaced the International Accounting Standards Committee (IASC).
Correct answer is: IASB
Q.24 What is the main focus of IFRS 5?
Non-current Assets Held for Sale
Employee Benefits
Revenue
Cash Flow
Explanation - IFRS 5 deals with assets held for sale and discontinued operations.
Correct answer is: Non-current Assets Held for Sale
Q.25 Which IFRS standard replaced IAS 18 for revenue recognition?
IFRS 9
IFRS 15
IFRS 16
IAS 20
Explanation - IFRS 15 replaced IAS 18 and IAS 11 to unify revenue recognition rules.
Correct answer is: IFRS 15