[TFA] Notes to Financial Statements

Question 1

Which is the first item in presenting the notes to financial statements?

a. Explicit and unreserved statement of compliance with PFRS
b. Other disclosures, such as contingent liabilities and nonfinancial disclosures
c. Supporting information for items presented on the face of the financial statements
d. Summary of significant accounting policies

Answer 1

ANS: a. Explicit and unreserved statement of compliance with PFRS.

Question 2

Notes to financial statements

a. Must be quantifiable.
b. Must qualify as an element.
c. Amplify items presented in the financial statements.
d. All of these are characteristics of notes to financial statements.

Answer 2

ANS: c. Amplify items presented in the financial statements.