Notes to Financial Statements Flashcards
What is the first item in presenting the notes?
a. Statement of Compliance with PFRS
b. Other disclosures, such as contingent liabilities and unrecognized contractual commitments
c. Supporting information for items presented on the face of the financial statements
d. Summary of significant accounting policies.
a. Statement of Compliance with PFRS
However, should there be a choice stating the general information of the company that is the answer.
An entity whose financial statements comply with PFRS shall
a. Make an explicit statement of compliance in the notes
b. Make an unreserved statement of compliance in the notes.
c. Make an explicit and unreserved statement of compliance in the notes.
d. Not describe financial statements as complying with PFRS.
c. Make an explicit and unreserved statement of compliance in the notes.
Notes to financial statements
a. Are relatively unimportant facts
b. Document the source of financial statement facts
c. Are an integral part of financial statements
d. Are irrelevant and immaterial facts
c. Are an integral part of financial statements
The presentation of the notes to financial statements in a systematic manner
a. Is voluntary
b. Is mandatory
c. Is mandatory, as far as practicable
d. Depends on the industry
c. Is mandatory, as far as practicable
The cross-reference between each line item in the financial statements and any related information disclosed in the notes to financial statements
a. Is voluntary
b. Is mandatory
c. Depends on the industry
d. Is either voluntary or mandatory
b. Is mandatory
The notes to financial statements are not required if the amounts in the financial statements can explain the financial events on their own.
False
A statement of compliance with PFRSs shall be made to the notes only if all the provisions of the PFRS are complied by the entity
True
Accounting policies related to asset recognition, liability recognition, income
recognition and expense recognition are required to be disclosed in the financial
statements.
True
An entity is only encouraged to disclose the significant amount of cash and cash
equivalent balances held by the entity that are not available for use.
False
The carrying amount of inventories pledged as security for liabilities is required to
be disclosed in the notes.
True
An entity is only encouraged to disclose its contractual commitments for the
acquisition of property, plant and equipment.
True
The disclosure requirements for intangible assets are substantially the same with
the disclosure requirements for property, plant and equipment.
True
If an entity uses the fair value model for its investment properties, depreciation
methods are not required to be disclosed.
True
In connection with the borrowing costs, the total carrying amount of qualifying
assets are required to be disclosed in the notes.
False
Cash and cash equivalents are considered as a source of estimation uncertainty
since the relevant accounting procedures are generally straightforward.
False
Which of the following is not provided by the notes to financial statements?
a. Breakdown of the highly aggregated amounts on the face of the financial
statements.
b. Description and narration of some of the events causing the amounts reported
in the financial statements.
c. Disclosure of additional information as specified by other accounting standards.
d. None of the above
d. None of the above
The notes shall provide all of the following, except
a. present information about the basis of preparation of the financial statements
and the specific accounting policies used.
b. assurance that the information provided in the face of financial statements in
the notes are reasonable.
c. disclose the information required by other accounting standards that is not
presented elsewhere in the financial statements.
d. provide information that is not presented elsewhere in
b
Systematic manner of presenting the notes to financial statements shall consider the
effects of which of the following?
a. comparability and relevance
b. relevance and timeliness
c. comparability and understandability
d. understandability and timeliness
c
Anentity’s disclosure of its significant accounting policies shall comprise of which of
the following?
I. Measurement basis (bases) used in preparing the financial statements
II. Other accounting policies used that are relevant to an understanding of the
financial statements
Both
Astocashand cash equivalents, an entity is required to disclose the following, except
a. Accounting policy which it adopts in determining the composition of cash and
cash equivalents.
b. Aggregate amount of cash flows that represent increases in operating capacity.
c. The amount of significant cash and cash equivalent balances held by the entity,
if any, that are not available for use by the group.
d. a reconciliation of the amounts in its statement of cash flows with the equivalent
items reported in the statement of financial position.
b
Which of the following is/are encouraged, but not required, to be disclosed by an
entity related to its cash and cash equivalents?
a. the amount and details of undrawn borrowing facilities
b. the amount of the cash flows arising from the operating, investing and financing |
activities of each cash-generating unit.
c. both a and b
d. neither a nor b
c
Which of the following is not a required disclosure for an entity’s inventories?
a. The accounting policies adopted in measuring inventories, including the cost
formula used.
b. The total carrying amount of inventories and the carrying amount in
classifications appropriate to the entity.
c. The amount of inventories recognized as an expense during the period.
d. The number of units produced, work-in-process and sold during the period.
d
All of the following are required disclosures regarding an entity’s inventories, except
a. The carrying amount of inventories pledged as security for liabilities.
b. The amount of any reversal write-down of inventories recognized as a reduction
in the amount of inventories recognized as expense in the period, including the
circumstances or events that led to the reversal (if any).
c. The amount of any write-down of inventories recognized as an expense in the
period (if any).
d. None of the above
d
11.Which of the following is not a required disclosure related to an entity’s property,
plant and equipment?
a. The measurement bases (cost model or revaluation model) used for
determining the gross carrying amount.
b. The gross carrying amount of any fully depreciated property, plant and equipment that is still in use.
c. The depreciation methods used, including the useful lives or the depreciation
rates used.
d. The gross carrying amount and the accumulated depreciation (aggregated with
accumulated impairment losses) at the beginning and end of the period.
b
