Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Santa maria bulacan campus
Santa Maria, Bulacan

Name: Flores, Erika C.

Section: BSA 2-1
Date and Time of Submission: December 3, 2021 (6:00 PM)

CONCEPTUAL FRAMEWORKS AND ACCOUNTING STANDARDS

ANSWERS TO LESSON MODULES
04 LESSON: PAS 1 PRESENTATION OF FINANCIAL STATEMENTS (PART 2)

RESEARCH ANALYSIS
Discussion Questions:
1. What is the purpose of the notes to financial statements?
 Financial statement notes are the supplemental notes that are included with the
published financial statements of a company. The notes are used to explain the
assumptions used to prepare the numbers in the financial statements, as well as the
accounting policies adopted by the company.
2. What are the components of comprehensive income?
 Comprehensive income includes net income and unrealized income, such as unrealized
gains or losses on hedge/derivative financial instruments and foreign currency
transaction gains or losses. It provides a holistic view of a company's income not fully
captured on the income statement.
3. What are the two forms of presenting the income statements?
 The income statement comes in two forms, multi-step and single-step. In the multi-step
income statement, four measures of profitability are revealed at four critical junctions in
a company's operations: gross, operating, pretax, and after-tax. In the single-step
presentation, the gross and operating income figures are not stated. They can be
 calculated from the data provided. In this method, sales minus materials and production
equal gross income.
4. What are the components of the statement of changes in equity?
 The statement of changes in equity is a financial statement showing the changes in a
company's equity (difference between assets and liabilities) for a given period of time.
The statement of changes in equity shows the company's: Share capital, or the value of
the shares it has issued to its shareholders.

ASSIGNMENT
Research one (1) Audited Financial Statements of the following companies and analyze what
items in the Statement of Comprehensive Income made them profitable.

 Petron Corporation
 To determine whether a company is profitable, the indicators such as sales revenue,
merchandise expense, operating charges and net income are important, All these elements are
part of an income statement, also known as a statement of profit and loss. Profitability is
distinct from liquidity, though.

The Petron Corporation have rising sales numbers and net income and I can therefore
say that gross premium, net premiums earned and other income sources made them profitable.

FORMATIVE ASSESSMENT

1. B
2. B
3. A
4. C
5. D
6. A
7. D
8. A
9. B
10. B

LEARNING ASSESSMENT

1. C
2. C
3. C
4. A
5. D
6. C
7. D
8. C
9. C
10. B

References
Links:
https://library.croneri.co.uk/cch_uk/iast/ias1-200709
https://www.petron.com/wp-content/uploads/2021/07/Petrogen-AFS-PIC-2020-stamped-
received-for-website-posting.pdf