Page 102 - CAPE Financial Services Syllabus Macmillan_Neat

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38. Which of the following affects the implementation of international accounting standards
as a country’s national Generally Accepted Accounting Principles (GAAP)?

I. Misunderstandings to the nature of standards
II. Lack of appropriate mechanisms for granting national authority to international

standards
III. Inconsistencies between standards and legal framework of sovereign
IV. Non-observability of compliance
V. Match between accounting, auditing requirements and market demands

(A) I, and II
(B) II, and III
(C) I, II and IV
(D) I, II, III and IV

39. The first Basel Concordat was developed because of the

(A) capital adequacy of banks
(B) off-balance sheet activities of banks
(C) contagion of banks
(D) division of responsibilities among national supervisory authorities

40. The Basel Accord is concerned with which of the following?

I. Operational risk

II. Capital risk

III. Random risk

(A) I only
(B) II only
(C) III only
(D) I and II

41. A conceptual framework for financial reporting is a set of

(A) financial reporting standards
(B) regulations for all accounting standards
(C) standards that regulate that changes in cash flow
(D) principles which guide the financial reporting process

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