19. The Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia joined the European Union in 2004. In addition to belonging to the EU, what do these countries have in common?

A) They share a common language.

B) Formerly they were under the political and economic influence of the Soviet Union.

C) All were under the political control of Germany until the early 1960s.

D) They were former British colonies until after World War II.

20. The initial harmonization efforts (1973-1988) of the International Accounting Standards Committee (IASC) created standards that have been described as the lowest common denominator approach. What was the effect of these first international accounting standards?

A) IASC standards accommodated accounting practices in several countries.

B) Comparability of financial statements between countries.

C) It turned out that few companies complied with IASC standards.

D) All of the above

21. Which of the following is NOT a goal of the International Accounting Standards Board (IASB)?

A) Establish the global uniformity of accounting practice

B) Develop a unique set of executable global accounting standards

C) Promote the use and application of global accounting standards

D) Encouraging the convergence of national accounting standards

22. The International Accounting Standards Board (IASB) was preceded by:

A) the IOSCO

B) ASEAN

C) the IASC

D) the NRC

24. Which of the following is NOT part of the due process followed by the IASB in the formulation of International Financial Reporting Standards?

A) A public comment period is provided after the discussion papers have been prepared.

B) The rules are unanimously approved by the 16 members of the board.

C) Exposure drafts are published before a vote of the board of directors.

D) National accounting standards and practices are studied prior to the preparation of exposure drafts.

25. What basis does the International Accounting Standards Board (IASB) use to formulate its IFRS?

A) Detailed rules for accounting practice

B) A framework of accounting principles

C) The tax laws typical of the western nations

D) Exceptions or unusual circumstances that require special attention