1 International Accounting is not part of accounting that is concerned with describing
international trade, policies, and standards associated with export and export transactions
2 The exchange rate of foreign currency at the time of transaction is always the same
at the time of payment.
3 The current rate is the exchange rate that existed when the transaction took place.
4 The historical rate is the exchange rate at the time of preparing financial statements
5 An increase in foreign exchange rates shall result in an exchange Loss to the account
receivables.
6 purchases on the account denominated in foreign currency are not subject to
foreign exchange risk
7 A decrease in foreign exchange rates shall result in an exchange Loss in account
payables.
8 Companies shift profits from countries with Low-tax rates to countries with High-tax
rates
9 Reduce costs, and increasing sales and profit are not considered a reason to seek
foreign investment
10 Countries are similar in their taxation system
11 Code law countries do not prefer to follow formal and written rules and procedures
12 Countries with high rates of inflation tend to apply fewer adjustments in financial
statements compared with countries with low rates of inflation.
13 The loose social fabric and uncertainty avoidance do not cause accounting diversity
among countries.
14 Secrecy versus Transparency adopted accounting values do not cause accounting
diversity among countries.
15 Lack of comparability does not affect investment decisions and performance analysis
16 Low information quality is not associated with accounting diversity
17 International Harmonization does not promote transparent financial reporting
18 International Harmonization does not include the Harmonization of company laws
and taxation
19 International harmonization of accounting standards passed with five important
phases
20 The Comparability Project framework of international harmonization did not state
the Objectives of financial statements or the Qualitative characteristics of financial
information
21 The International Organization of Securities Commissions (IOSCO Agreement) was
conducted in the first phase of the international harmonization
22 Countries in the European Union are not obligated by law to apply IFRS
23 IASB stands for the international accounting standard committee while IASC stands
for international accounting standard board.
24 The IASB is responsible for setting IAS international accounting standards
25 The IASC board members are full-time members who have technical expertise.
26 The IASC is composed of 16 members who are selected based on professional
competence and practical experience.
27 The IASB board members are divided into 3 full-time members and 13 part-time.
28 The IASB Adopted the rule-based approach to standard setting
29 The IASB’s structure is different from the FASB’s structure
30 Rule-based standards are more flexible than principle-based standards
31 Under rule-based standards, a firm adjusts the accounting principles to fit its own
transactions
32 Under principle-based standards, an accountant adjusts the firm’s operations to
accounting rules
33 The Norwalk Agreement is a Memo signed by FASB and IASC to achieve convergence
between the US GAAP and International Accounting Standards (IAS).
34 Cost/benefit analysis and investors satisfaction with national standards should not
be considered during the convergence to IFRS.
35 Argument against the convergence to IFRS state that convergence process shall
reduce financial reporting costs
36 The main purpose of IASB framework is to assist IASC in developing new standards
and revise existing standards
37 Understandability, reliability and comparability are important quantitative
characteristics of financial reporting.