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CFAS > PAS 1 > Flashcards

PAS 1 Flashcards

1
Q

It prescribes the basis for presentation of general purpose financial statements

A

Philippine Accounting Standards 1

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2
Q

PAS 1 is used to ensure _____ and requires _____

A

Comparability and Consistency

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3
Q

This type of comparability refers when the same entity is compared to different time periods

A

Intra-Comparability (Horizontal or Inter-Period)

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4
Q

This type of comparability refers when different entities are compared with the same time period

A

Inter-Comparability (Dimensional)

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5
Q

PAS 1 is only suitable for profit-oriented entities

A

FALSE, non-profit may also use but may need to amend the line-time and financial statement descriptions

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6
Q

It refers to the structured representation of an entity’s financial position and results of its operations

A

Financial Statements

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7
Q

It refers to a type of financial statement that intends to meet the users common needs and have no right to request tailored information needs

A

General Purpose Financial Statements

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8
Q

The primary purpose of Financial Statements states that

A

To provide information of the financial position, financial performance, and cash flows for economic decisions

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9
Q

The secondary purpose of Financial Statements states that

A

To show results of management’s stewardship over entity’s resources

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10
Q

What are the 6.1 financial statements

A
  1. Financial Position
  2. Profit or Loss and Other Comprehensive Income
  3. Changes in Equity
  4. Cash Flows
  5. Notes (Comparative information)
  6. Additional statement of financial position (when the situation requires to do so)
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11
Q

Are income statement, profit or loss and other comprehensive income, and comprehensive income the same?

A

No

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12
Q

This general feature of financial statements refer to faithfully representing the statements and the effects of transaction and proper selection and application of accounting policies

A

Fair Presentation and Compliance with PFRSs

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13
Q

PAS 1 does not require entities to make an explicit and unreserved statement of such compliance in the notes

A

False, notes is where the explicit and unreserved statements are found and are required

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14
Q

If a PAS requirement makes an entity’s financial statements misleading, they are not allowed to depart from a PFRS measure

A

False, they are allowed and also encouraged to follow Regulatory Accounting Principles (RAP)

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15
Q

This general feature of financial statement refers to the entity’s ability to continue in the future with at least and not limited to 12 months

A

Going Concern

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16
Q

An entity is considered going concern if it has a history of profitable operations and ready access financial resources

A

True

17
Q

An entity with material uncertainties may affect its going concern and must not be disclosed in the notes

A

Ture, but the material uncertainties should be disclosed in the notes

18
Q

An entity that is no longer a going concern should continue preparing its financial statements in the same basis

A

False, another basis should be used and shall be disclosed and the reason why the entity is no longer considered a going concern

19
Q

All financial statements use the accrual basis of accounting

A

False, Cash Flows require cash basis of accounting

20
Q

This refers to the class of similar items

A

Line Item

21
Q

Dissimilar material items are aggregately presented

A

False

22
Q

Immaterial items are individually presented

A

False, these immaterial items are aggregated

23
Q

It refers to reflecting the substance of the transaction

A

Offsetting

24
Q

Presenting gains and losses from assets net of the related selling expenses is an example of offsetting

A

True

25
Q

Deducting allowance for doubtful accounts from accounts receivable is an example of offsetting

A

False

26
Q

Presenting a loss from a provision net of a reimbursement from a third part is an example of offsetting

A

True

27
Q

Measuring assets net of valuation if offsetting

A

False

28
Q

Financial statements are prepared at least annualy

A

True

29
Q

If an entity changes its reporting period, the entity shall…

A

Disclose the following
1. Period Covered
2. Reason
3. Fact that the information presented are not entirely comparable

30
Q

The PAS 1 requires a minimum of three or each financial statements and related notes

A

False, only two are required but may entity’s can provide additional information more than minimum requirement

31
Q

An additional statement of financial position can occur when an entity applies an accounting policy retrospectively

A

True

32
Q

When an entity does not create retrospective restatement of items in its financial statement, additional statement of financial position is required

A

False

33
Q

When an entity reclassifies items in its financial statements, additional statement of financial position is allowed

A

True

34
Q
A

CFAS (5 decks)

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