Chapter 3

Question 1

financial statements provide info about

Answer 1

assets, liab, equity, income and exp, contri by and distri to, and cash flows

Question 2

complete set of FS

Answer 2

SFP, SCI, SCOE, SCF, Notes, Comparative info and SFP at beg of preceding period

Question 3

SFP

Answer 3

assets, liab, equity

Question 4

SCI

Answer 4

profit, loss, OCI

Question 5

SCOE

Answer 5

profit, loss, OCI, distributions to and contributions from owners (balances)

Question 6

SCF

Answer 6

inflows, outflows of cash and cash equivalents

Question 7

NFS

Answer 7

relevant financial info-activities and basis of presentation, significant acco policies, info of PFRS/IFRS

Question 8

retrospective (acco policy), errors discovered and reclassification of element

Answer 8

restatement of comparative prior period (RER)

Question 9

principles, bases, conventions, rules, practices applied in preparing and presenting FS

Answer 9

IAS 8 (Accounting Policies, Changes in Accounting Policies and Errors)

Question 10

hierarchy of interpretation

Answer 10

(1) Standard and (2) Company

Question 11

Standard

Answer 11

PFRS/interpretation

Question 12

judgment in developing its own

Answer 12

Company Judgment

Question 13

requirements in PFRS dealing with same issues, def, recog, criteria & measurement concept in CF and most recent pronouncement of other bodies

Answer 13

Company Judgment

Question 14

general features of FS

Answer 14

fair presentation & compliance with PFRS/IFRS, going concern, accrual basis of accounting, materiality and aggregation, offsetting, frequency of reporting, comparative info and consistency of presentation

Question 15

PFRS includes:

Answer 15

PFRS, PAS, Interpretations of IFRIC, SIC and PIC

Question 16

direct matching, systematic & rational allocation, expense recognition principle and revenue recognition principle

Answer 16

Accrual Basis

Question 17

direct assoc between costs

Answer 17

Direct Matching

Question 18

allocate the cost of asset

Answer 18

Systematic & Rational Allocation

Question 19

(x) assets that do not provide probable future economic benefit

Answer 19

Expense Recognition Principle

Question 20

recognized at the point of delivery of goods or services = result to inflow of benefits

Answer 20

Revenue Recognition Principle

Question 21

threshold for recognition

Answer 21

Materiality

Question 22

if non-disclosure would influence the decision/evaluation of the user; it depends on the size and nature

Answer 22

Materiality

Question 23

it will call the attention of the user

Answer 23

Single Line Item

Question 24

not considered significant; combined either in the face/notes

Answer 24

Aggregated with other items

Question 25

its general rule is not allowed unless required/permitted by a Standard/Interpretation

Answer 25

Offsetting

Question 26

net unrealized gain/loss

Answer 26

Financial Asset @ FV

Question 27

net in gain/loss

Answer 27

Foreign Exchange Transaction

Question 28

frequency of FS

Answer 28

annually

Question 29

exception to the frequency of FS

Answer 29

changes in date prepared for a period of longer/shorter than 1 year

Question 30

disclosed info need if frequency is not annually

Answer 30

fact and reaosn

Question 31

if annually ay hindi mapipigilan and pagproduce ng iterim FS

Answer 31

True

Question 32

it should be disclosed in respect of the preceding period

Answer 32

Comparative Info

Question 33

exception of comparative info

Answer 33

IFRS permit/require otherwise

Question 34

included in comparative info

Answer 34

comparative narrative and descriptive info = if revelant

Question 35

if may retrospective adjustment, 3 SFP and needed:

Answer 35

end of current period, end of immediate prior period and beginning of the preceding period

Question 36

3 SFP does not apply to entities applying:

Answer 36

PFRS/IFRS for SMEs and PFRS for Small Entities

Question 37

same from period to period

Answer 37

Consistency

Question 38

exception for consistency

Answer 38

change in nature at ang pinalit ay mas appropriate IFRS requires it

Question 39

reclassification of comparative amounts:

Answer 39

nature, amount that is reclassified and reason