Topic1_Practice_Questions_Solutions - Solutions for...

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Solutions for Practice Questions Lecture Topic 1 Lecture Topic 1 Introduction to Corporate Financial Reporting Describe the Australian external financial reporting environment and regulatory framework Describe the standard setting process in Australia Describe the Conceptual Framework and explain how it is used Practice Questions Picker et al, Chapters 1 DQ 3, DQ11 Picker et al, Chapters 2 DQ2, DQ3, DQ6 Problem 2.20 Picker et al, Chapters 1 DQ 3, DQ11 3. Under the approach to accounting standard-setting that has been adopted in Australia, will Australian companies be following IFRSs? a. Companies in Australia will be following Australia’s national GAAP, not IFRSs, and their audit reports will refer to conformity with Australian GAAP. However, the audit report will also note that conformity with Australian GAAP results in conformity with international accounting standards. b. Although Australia decided to adopt national GAAP that are generally word-for-word equivalents to IFRS, there are differences between IFRSs and Australian GAAP. Australian accounting standards Aus paragraphs containing additional disclosures, and principles for not-for-profit entities. c. For not-for-profit entities applying Australian GAAP, they may not be complying with IFRSs as some Aus paragraphs that relate to not-for-profits result in non-compliance with IFRsSs. d. Australia has additional conceptual framework documents and accounting standards that are not part of IFRSs, and Australian companies must apply these.
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11. Explain the structure of an Australian accounting standard. Australian accounting standards consist of AASB 1-X: Standards equivalent to IFRS standards AASB 101 – AASB 1XX: Standards equivalent to IAS standards AASB 1004 etc: Standards developed and issued by the AASB to address domestic issues AAS series – do not apply to companies For the IFRS series: Rubric All paragraphs have equal authority Paragraphs in bold type state the main principles Terms defined are in italics the first time they appear
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Topic1_Practice_Questions_Solutions - Solutions for...

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