SELF TEST PSAK 1

1. Are the following statements in relation to materiality true or false, according to PSAK 1
Presentation of financial statements?

(1) Materiality of items depends on their individual or collective influence on the

economic decisions of users.

(2) Materiality of an item depends on its absolute size and nature.

Statement (1) Statement(2)

A False False
B False True
C True False
D True True

2. According to PSAK 1 Presentation of financial statements, the notes within the

financial statements contain information in addition to that presented in which TWO of
the following?

A Report on sustainability
B Chairman's statement
C Statement of financial position
D Statement of financial performance

3. Are the following statements true or false, according to PSAK 1 Presentation of

financial statements?

(1) Dividends paid should be recognised in the statement of

comprehensive income.

(2) A loss on disposal of assets should be recognised in the statement of changes in

equity.

Statement (1) Statement(2)

A False False
B False True
C True False
D True True

4. Are the following statements true or false, according to PSAK 1 Presentation of financial
statements?

Provisions should be recognised in the statement of financial position.

A revaluation surplus on non-current assets should be recognised in the

statement of changes in equity.

Statement (1) Statement(2)

A False False
B False True
C True False
D True True
5. According to PSAK 1 Presentation of financial statements, which TWO of the
following must be included in an entity's statement of financial position?

A Investment property
B Number of shares authorised
C Provisions
D Shares in an entity owned by that entity
 ANSWER

1. Material negligence to include or errors in financial statement items is material if, both by
itself and together, can affect the economic decisions of users of financial statements.
Materiality depends on the size and nature of the negligence to list or error in the list with
due regard to the conditions involved. The size or nature of the financial statements, or a
combination of the combined, can be the determining factor. PSAK (7)
2. Notes – contain information in addition to that presented in the statement of financial
position, statement(s) of profit or loss and other comprehensive income, statement of
changes in equity and cash flow statement. Notes provide narrative descriptions or
disaggregations of items disclosed in those statements and information about items that
do not qualify for recognition in those statements. PSAK1 (7)
3. (1). Dividends paid are recognized in the statement of changes in equity. An entity
presents, either in a statement of changes in equity or in notes or financial statements, the
amount of dividends recognized as distribution to owners during the period, and the
amount of dividends per share concerned. PSAK (107)
(2). An entity recognizes all income and expense items for a period in profit or loss
unless a PSAK requires or permits otherwise. PSAK (88)
4. a. Provisions should be recognized in the statement of financial position in PSAK1 (54).
b. statement of profit or loss and other comprehensive income (statement of
comprehensive income) presents, in addition to the share of profit and loss and other
comprehensive income: PSAK1 (81)
(a) profit or loss
(b) total other comprehensive income
(c) comprehensive income for the period, i.e. total income and other comprehensive
income.
5. statement of financial position includes the presentation of the following items: PSAK1
(54)
(b) investment property
(l) provision
But shares in an entity owned by that entity are in PSAK1 (79). An entity shall disclose
the following in the financial statements of financial position or statement of changes in
equity, or recorded in the financial statements:
(a) Total authorized capital shares