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IFRS 2 Hoorcollege 1
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Questions in this quiz (16)
1Artikel Barth (2018): Wat is accounting?
- Alearned profession
- Binformed economic decision-making
- CAccounting judgements requires critical thinking to create useful information that can help decision-makers make better decisions
- DThese decisions have consequences for economic activity and, thus, accounting judgements. However, the ultimate benefit of better informed decisions is a more prosperous society for everyone
- EThis is the ‘information perspective’ on accounting, which has been a cornerstone of academic research for several decades
- Faccounting is not record-keeping and the creation of financial reports according to a set of rules.
2Georgiou Jack 2011, p.311: Wat is volgens deze artikel de Institutional approach?
- AThe use of an accounting basis is perhaps best perceived as a pattern of behaviour and our starting point is an institutional perspective of ‘understanding social behaviour as a historically informed development of rules of “appropriate” behaviour’.
- BInstitutionalisation: a pattern of behaviour becomes finally routinised and fully taken-for-granted
- Can institution is an agreed-upon means for creating rights and obligations among agents.
- Dinstitutions are mechanisms that facilitate efficient exchanges and interactions between economic
players
3North* (1990) Definition of institutions?
- AHumanly devised constraints that shape human interaction' (p. 3) that provide the 'rules of the game in society' (p. 3) where the actions of players (organisations) are governed by rules (institutions).
- BInstitutions influence organisational choices by defining which actions are suitable and supportable in an economy
- CEconomic welfare broadly refers to the level
of prosperity and living standards of either an individual
or a group of persons. In the field of economics, it
specifically refers to utility gained through the
achievement of material goods and services. In other
words, it refers to that part of social welfare that can be
fulfilled through economic activity - DEconomic Activity consists of all activities that generate Economic Value
4Why do we have reporting standards?
- AEconomic welfare broadly refers to the level
of prosperity and living standards of either an individual
or a group of persons. In the field of economics, it
specifically refers to utility gained through the
achievement of material goods and services. In other
words, it refers to that part of social welfare that can be
fulfilled through economic activity. - BEconomic Activity
consists of all
activities that
generate
Economic Value - CEconomic value
creation is
regulated to
increase social
welfare - DIn market
economies,
regulators are
employed to guide
this process - ECapital
allocation is only a
small part of the
broad economic
process to
generate
Economic Value - FCapital allocation
deals with
selecting
investments
projects with
positive Net
Present Value
(NPV) - GAccounting is only
a small part of the
economic value
creation process - HAcccounting
Information
provides
information to
facilitate Capital
Allocation - IInputs: Expected
cash flows
• Outputs: Return
on Investment - Jmanagers respond to varying levels of rule precision by
varying their earnings management attempts to minimize
the chance their auditors will require adjustments.
- AEconomic welfare broadly refers to the level
5WHAT IS ACCOUNTING?
- AIFRS Standards are only a
small part of the Accounting
Process - BStandards play only a
limited role in creating High
Quality Information - CStandards are
complementary to the other
inputs - DAccounting is
empoyed to
enhance Social
Welfare through
the creation of
Economic Value - EAcccounting
Information
provides
information to
facilitate Capital
Allocation - FHigher Quality
Accounting =
Higher Economic
Welfare
- AIFRS Standards are only a
6Why do we have IFRS?
- Ahelp eliminate barries to cross-border trading
- BMeer betrouwbare en transparante jaarrekeningen.
- CEenvoudige vergelijkbaarheid
- DStijging efficiënte markt.
- ELagere kosten stijging kapitaal
- FVerbeterd de concurrentie en helpt met groei
- GEconomische welvaart stijgt indien binnen een land regulatie sterk is met sterke instituties. Hierdoor stijgt ook de kwaliteit van de informatie.
7Hoe creëren we High Quality Information?
- AHoge kwaliteit accounting = Hoge economische welvaart
HQI heeft te maken met de volgende factoren: internal controls, incentives, auditing en standaarden. - BDoor audit af te schaffen
- CMeer conservatism in de jaarrekening
- AHoge kwaliteit accounting = Hoge economische welvaart
8How do accountants think about value?
- AConservative: record reliable values: the best
historical record >> Historical Cost Accounting (HCA) - BFuture oriented: provide relevant information: best
estimate of present value of future benefits >> Fair
Value Accounting (FVA) - CDespite accounting standard setters advocating the increased use of
fair value, not everyone is convinced that it is a legitimate conceptual
basis for accounting. - Drepresentation of economic ‘reality
- AConservative: record reliable values: the best
9Critical Question: How should we Implement IFRS Standards in Financial Reports to maximize economic
welfare for investors?- AEconomische welvaart stijgt indien binnen een land regulatie sterk is met sterke instituties. Hierdoor stijgt ook de kwaliteit van de informatie.
- BConservatisme: Leg betrouwbare waarde vast. Het beste manier is historische kostprijs accounting
10Nolder & Kadous (2018)p.2: Wat is professional skepticism?
- AProfessional skepticism can be conceptualized as both a
mindset and an attitude. - BMindsets consist of a collection of judgment criteria and
cognitive processes and procedures to facilitate
completion of a particular task (openness or receptivity to
information and the extent to which they seek out
confirming or positive information). - Cmindset conceptualization of professional skepticism
captures the idea that information processing—in
particular, critical thinking—is an essential component of
skepticism.
- AProfessional skepticism can be conceptualized as both a
11Attitudes are evaluative responses associated with a target. Include beliefs and feelings that drive individuals‘
intentions and actions.- ATrue
- BFalse
12Relevant targets for the attitude of professional skepticism are the financial statements (i.e.,
management's assertions) and the evidence.- ATrue
- BFalse
13Barker Schulte 2017, p.55: At the heart of the method of
financial accounting is the balance sheet, which is a
representation of economic ‘reality’, in the form of a
summary of the rights (assets) and obligations (liabilities)
of a reporting entity.- ATrue
- BFalse
14Georgiou & Jack (2011), p.311: Wat heeft volgens deze artikel IFRS veranderd?
- AIFRS heeft de de bestaande concept van historische kostprijs en stewardship veranderd en de standaarden zijn nu meer gericht op investeerder beslissingen en toekomstige kasstromen en fair value.
- BZe focussen zich op de verandering naar fair value waardering. Hiermee wordt verandering van historische naar economische gerealiseerd. Hiernaast wordt ook de verandering van weergave economische realiteit bewerkstelligt.
15Wat is het doel van artikel Georgiou & Jack (2011)?
Ze focussen zich op de verandering naar fair value waardering.- ATrue
- BFalse
16Barker & Schulte (2017), p.56: In this paper, we interpret the introduction
of fair value measurement (FVM) in IFRS as a shift in metaphorical construct,
from the historical to the economic, and so also as a shift in the accounting
representation of economic ‘reality’.- ATrue
- BFalse
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- User has deleted their subject information Quiz on IFRS 2 Hoorcollege 1, created by Deleted user on 11/05/2019.
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- Created on 11 May 2019 · updated on 12 May 2019
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