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Notes To Financial Statements - Theory
Notes To Financial Statements - Theory
Notes To Financial Statements - Theory
a. Το present information about the basis of preparation of the statements and accounting policies used.
b. To disclose the information required by PFRS not presented elsewhere in the financial statements.
c. To provide additional information not presented but necessary for a fair presentation.
c. Supporting information for items presented on the face of the financial statements
a. Is voluntary
b. Is mandatory
a. Is voluntary
b. Is mandatory
a. Must be quantifiable.
a. Supporting schedule
b. Parenthetical explanation
5. Accounting policies disclosed in the notes to financial statements typically include all of the following,
except
c. Significant estimates
a. Composition of inventory into raw materials, work in process and finished goods
b. Major backlog of inventory orders .
d. Depreciation method
c. Are an integral part of financial statements. d. Are irrelevant and immaterial facts
c. To provide recognition of amounts not included in the total of the financial statements
2. Which of the following information should be disclosed in the summary of significant accounting
policies?
b. Key management personnel involved in drafting the summary of significant accounting policies
c. Disclosures required by Standards
d. The nature of operations and the policies that the users of the financial statements would expect to
be disclosed
c. Describe the principles and methods peculiar to the industry in which the entity operates.
C. The measurement basis used in preparing the financial statements and the accounting policies used.
d. All of the measurement bases and the accounting policy choices available to the entity irrespective of
whether used.
a. The composition of property, plant and equipment and the depreciation method used
d. Neither the composition of property, plant and equipment nor the depreciation method used.
a. Property, plant and equipment recorded at cost with the depreciation computed principally by straight
line method