This is a free 10 question multiple choice quiz to assist you in testing your knowledge of financial reporting.
A survey of directors, auditors and other financial professionals conducted by the Financial Reporting Council in 2012 revealed that, on average, directors believe their knowledge of the more technical accounting issues was 'fair'.
While the survey acknowledged a large diversity between directors of ASX top 200 companies, versus other listed, non-listed, not-for-profits, and superannuation trustees, almost all survey respondents acknowledged concerns about directors' knowledge of financial reporting.
The development of this free 10 question multiple choice quiz has been informed by the survey findings and recent court decisions about directors' responsibilities in relation to financial reporting. Answers will be shown at the completion of the quiz.
The objectives the quiz seeks to achieve are:
- to provide a self awareness of general competence relating to financial reporting requirements
- to provide education in respect of each specific question
- to provide links to additional resources and/or training to maintain or improve competence.
The quiz focuses on the more technical elements of financial reporting rather than broader financial knowledge. For example, the quiz doesn't test understanding of matters such as financial products or instruments, assessments for capital and funding decisions, financial processes and controls, or how decisions can impact on the future financial health of a company.
It is not meant to be a comprehensive test of directors' knowledge of financial reporting. In particular, the extent and areas of financial reporting knowledge required may be greater depending upon the companies of which you are a director and factors such as the industry and the use of complex financial products.
The topics considered for the questions relate only to knowledge required by a director in approving a financial report of an Australian incorporated company. The topics were chosen based on those areas we consider most commonly would apply to a broad range of directors.
This quiz was developed by the Australian Securities and Investments Commission, Australian Institute of Company Directors, CPA Australia, The Chartered Accountants Australia and New Zealand and the Institute of Public Accountants. The idea for the quiz came from a response to the survey on director financial literacy conducted by the Financial Reporting Council.
Privacy
Completion of this quiz is confidential, no names or email addresses of participants are recorded for any reasons. Responses are collected by a third-party survey provider. IP addresses of respondents are hidden and are not available to ASIC.
Completion of the demographic data in the questionnaire is optional, and will only be used to help us refine the questionnaire in the future.