FR A The conceptual and regulatory framework

Which two characteristics are the fundamental qualitative characteristics of useful financial information?

• 1 Comparability and timeliness
• 2 Prudence and neutrality
• 3 Relevance and faithful representation
• 4 Verifiability and understandability

Which of these is a measurement basis in the conceptual framework?

• 1 Fair value
• 2 Retained value
• 3 Budgeted value
• 4 Nominal profit

A liability is best defined as:

• 1 Any cost not yet paid
• 2 A future expense
• 3 A present obligation to transfer an economic resource as a result of past events
• 4 The residual interest in assets

Which statement about a principles-based framework is correct?

• 1 It prevents any choice of policy
• 2 It gives detailed rules for every case
• 3 It cannot be used with IFRS Accounting Standards
• 4 It sets objectives and relies on judgement in applying them

What is the role of the ISSB?

• 1 To set standards for sustainability-related disclosures
• 2 To audit financial statements
• 3 To set accounting standards for banks only
• 4 To enforce tax law

Why are intra-group transactions eliminated on consolidation?

• 1 They are illegal
• 2 They are always fraudulent
• 3 They are immaterial
• 4 The group is treated as a single economic entity

Which entity is accounted for using the equity method?

• 1 A subsidiary
• 2 A branch of the parent
• 3 A trade investment
• 4 An associate