International Accounting / IFRS MCQs

1. What does IFRS stand for?
(A) International Finance Reporting Standards
(B) International Financial Reporting Standards
(C) International Federal Reporting Standards
(D) International Funding Reporting Standards

2. Who is responsible for developing IFRS?
(A) IASB
(B) SEC
(C) FASB
(D) IFAC

3. IFRS are primarily designed to:
(A) Assist governments in taxation
(B) Provide a global framework for financial reporting
(C) Increase company profits
(D) Prevent inflation

4. Which standard relates to the presentation of financial statements?
(A) IAS 1
(B) IFRS 9
(C) IFRS 15
(D) IAS 2

5. Which IFRS standard is related to Revenue from Contracts with Customers?
(A) IFRS 9
(B) IFRS 13
(C) IFRS 15
(D) IFRS 16

6. IFRS 16 deals with:
(A) Revenue
(B) Leases
(C) Insurance Contracts
(D) Inventories

7. IFRS 9 relates to:
(A) Financial Instruments
(B) Consolidated Financial Statements
(C) Inventories
(D) Leases

8. The full form of IASB is:
(A) International Accounting Standards Bureau
(B) International Accounting Standards Board
(C) International Audit Standards Board
(D) International Accounts System Board

9. Which standard is used for Fair Value Measurement?
(A) IFRS 10
(B) IFRS 13
(C) IFRS 15
(D) IAS 7

10. IAS 2 is related to:
(A) Revenue
(B) Inventories
(C) Borrowing Costs
(D) Cash Flows

11. Which of the following is NOT an objective of IFRS?
(A) Ensure comparability of financial statements
(B) Increase company sales
(C) Improve transparency in financial reporting
(D) Facilitate global investment decisions

12. IFRS 3 deals with:
(A) Business Combinations
(B) Insurance Contracts
(C) Intangible Assets
(D) Segment Reporting

13. What does IAS 7 focus on?
(A) Presentation of financial statements
(B) Cash Flow Statements
(C) Property, Plant, and Equipment
(D) Borrowing Costs

14. IFRS 17 is related to:
(A) Financial Instruments
(B) Insurance Contracts
(C) Borrowing Costs
(D) Leases

15. Which standard deals with Earnings Per Share?
(A) IAS 33
(B) IFRS 13
(C) IAS 12
(D) IFRS 10

16. The going concern concept means:
(A) The company will continue its operations indefinitely
(B) The company is preparing for liquidation
(C) The company is reporting on cash basis
(D) The company has no profit motives

17. Which IFRS relates to Consolidated Financial Statements?
(A) IFRS 10
(B) IFRS 9
(C) IFRS 16
(D) IAS 2

18. Borrowing Costs are covered by:
(A) IAS 10
(B) IAS 23
(C) IAS 33
(D) IFRS 7

19. Which standard deals with Intangible Assets?
(A) IAS 38
(B) IAS 16
(C) IFRS 3
(D) IFRS 9

20. Which IFRS standard addresses leases?
(A) IFRS 15
(B) IFRS 16
(C) IFRS 13
(D) IAS 33

21. Biological Assets are covered by:
(A) IAS 12
(B) IAS 41
(C) IFRS 10
(D) IAS 23

22. Which IAS relates to Income Taxes?
(A) IAS 12
(B) IAS 7
(C) IAS 2
(D) IAS 23

23. Related Party Disclosures are dealt with under:
(A) IAS 24
(B) IAS 16
(C) IFRS 9
(D) IFRS 13

24. IFRS primarily focuses on:
(A) Managerial reporting
(B) Tax compliance
(C) Financial reporting to external stakeholders
(D) Internal cost reporting

25. IFRS 12 is related to:
(A) Disclosure of Interests in Other Entities
(B) Revenue
(C) Financial Instruments
(D) Borrowing Costs

26. Which standard governs impairment of assets?
(A) IAS 36
(B) IFRS 10
(C) IFRS 16
(D) IAS 19

27. IFRS are designed to be used:
(A) Only by public companies
(B) Globally by companies preparing general purpose financial statements
(C) Only by governments
(D) Only by multinational corporations

28. Which IAS deals with employee benefits?
(A) IAS 37
(B) IAS 19
(C) IAS 16
(D) IFRS 17

29. Which IFRS standard relates to Fair Value Measurement?
(A) IFRS 12
(B) IFRS 13
(C) IFRS 14
(D) IFRS 15

30. Which standard addresses accounting for provisions and contingencies?
(A) IAS 37
(B) IAS 12
(C) IFRS 9
(D) IFRS 15

31. IAS 16 deals with:
(A) Intangible Assets
(B) Property, Plant, and Equipment
(C) Cash Flow Statements
(D) Provisions and Contingencies

32. IFRS requires companies to prepare financial statements:
(A) Quarterly
(B) Yearly
(C) Whenever requested
(D) Annually, unless otherwise required by local law

33. IFRS emphasizes which type of measurement for assets and liabilities?
(A) Historical cost
(B) Fair value
(C) Replacement cost
(D) Net realizable value

34. Which standard relates to share-based payments?
(A) IFRS 2
(B) IAS 33
(C) IFRS 12
(D) IAS 16

35. IFRS for SMEs stands for:
(A) IFRS for State Managed Enterprises
(B) IFRS for Small and Medium-sized Entities
(C) IFRS for Stock Market Enterprises
(D) IFRS for State-Owned Enterprises

36. Which of the following is true regarding IFRS and US GAAP?
(A) They are identical
(B) They are completely different
(C) They have similarities but also significant differences
(D) IFRS is used in the USA

37. IFRS encourages the use of which model for measuring Property, Plant, and Equipment?
(A) Cost model
(B) Revaluation model
(C) Either cost or revaluation model
(D) Historical model only

38. IFRS applies to:
(A) Only profit organizations
(B) Only listed companies
(C) All entities that prepare general purpose financial statements
(D) Only government organizations

39. IAS 10 deals with:
(A) Events after the Reporting Period
(B) Borrowing Costs
(C) Insurance Contracts
(D) Revenue

40. Which IFRS standard replaced IAS 39?
(A) IFRS 9
(B) IFRS 10
(C) IFRS 13
(D) IFRS 15

41. IFRS was developed to:
(A) Facilitate comparison of financial statements across countries
(B) Improve government tax collection
(C) Help only small businesses
(D) Make accounting more complicated

42. Which standard relates to Segment Reporting?
(A) IFRS 8
(B) IFRS 9
(C) IFRS 13
(D) IFRS 2

43. Which IAS standard covers leases?
(A) IAS 17
(B) IFRS 16
(C) IAS 2
(D) IAS 38

44. Which IFRS standard relates to Joint Arrangements?
(A) IFRS 10
(B) IFRS 11
(C) IFRS 12
(D) IFRS 13

45. Which body issues IFRS Interpretations?
(A) IFRIC
(B) IASB
(C) FASB
(D) SEC

46. IFRS requires that financial statements provide information that is:
(A) Biased
(B) Useful to users
(C) Legal for taxation
(D) None of the above

47. The concept of prudence means:
(A) Overstating profits
(B) Recording expenses only when paid
(C) Avoiding overstatement of assets and income
(D) Ignoring liabilities

48. Which IFRS covers Financial Reporting in Hyperinflationary Economies?
(A) IFRS 12
(B) IAS 29
(C) IAS 41
(D) IFRS 13

49. IFRS standards are:
(A) Compulsory for all nations
(B) Voluntarily adopted by some countries
(C) Imposed by UN
(D) Made by International Monetary Fund (IMF)

50. IFRS enhances:
(A) Tax collection systems
(B) Global comparability of financial statements
(C) Employee productivity
(D) Production planning