A financial reporting quiz designed to help directors assess their financial reporting knowledge has been released by the Australian Securities and Investments Commission (ASIC).
It consists of 10 multiple-choice questions, focusing on the more technical elements of financial reporting rather than broad knowledge.
The topics chosen address the knowledge required by a director in approving a financial report of an Australian incorporated company and cover areas that commonly apply to a broad range of directors.
The quiz was created in response to the findings from a survey on director financial literacy conducted by the Financial Reporting Council in 2012, which revealed that, on average, directors only considered their technical accounting knowledge to be “fair”.
This, coupled with court decisions on the financial reporting expectations of directors, has led ASIC and the professional bodies to focus on this area.
The quiz aims to provide directors with a self-awareness of general competence relating to financial reporting requirements, education in respect of each specific question and links to additional resources and/or training to maintain or improve competence.
To find out more and access the quiz, click here.
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