F - Presentation of financial statements Describes the basis for

presentation of general and special purpose financial statements

to improve both inter comparability and Intra comparability.

F- Intra comparability is also referred to as horizontal

comparability while inter comparability is also referred to as
vertical comparability

T - PAS 1 presentation of financial statements requires an entity

to make an explicit statement of compliance with PFRS

F- According to PAS 1, An entity is never allowed in any

circumstance to depart from a provision of a PFRS

T- According to PAS 1 Material items are presented separately on

the face of the financial statement while individually
immaterial items with similar nature are aggregated and
presented under a single line item

F- PAS 1 presentation of financial statements and carriages but

does not require the presentation of the preceding year’s
financial statements as comparative information to the current
year’s financial statements

T- Equity is the residual interest in the net assets of an entity

T- Current liabilities are obligations that are expected to be

liquidated through the use of current assets or the creation of
other current liabilities

T- Working capital is the net amount of a company's relatively

liquid resources. It is the excess of the total current assets over
total current liabilities

F- PAS 1 Encourages but does not require the disclosure of the

domicile and legal form of the entity its country of incorporation
and address of its registered office

T- Unless there is evidence to the contrary accounts receivable is

presented in the statement of financial position as current asset

T- investments in trading securities are always presented in the

statement of financial position as current asset

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 F- Unless there is evidence to the contrary investment in equity
securities measured at FVOCI is presented in the statement of
financial position as current asset

T- investments in associate are non-current assets

F- Investment properties are presumed to be current asset

F- all expenses of an entity are classified as either distribution

costs or administrative expenses under the function of expense
method

F- the only difference between the function of expense to the

nature of expense methods the presentation of cost of goods sold
under the function of expense method

T- The main difference between the function and the nature of

expense methods is the segregation of operating and
non-operating items under the function of expense method

F - Freight in is presented as distribution cost under the function

of expense method

F- PAS 1 requires an entity to provide additional disclosures

when it uses the nature of expense method

The objective of PAS 1 Presentation of financial statement is to

Prescribe the basis for presentation of general purpose financial
statements to ensure
intra comparability and inter comparability

general purpose financial statements are those statements that

cater to the
common needs of a wide range of external users

the purpose of general purpose financial statements is to provide

information about the
financial position financial performance and cash flows of an
entity that is useful to a wide range of users in making economic
decisions

a complete set of financial statements includes

Notes

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 an additional statement of financial position as At the beginning
of the preceding period is prepared when an entity makes
prospective application

presenting a separate statement of profit or loss or income

statement is
permitted under PAS 1 provided a statement of
comprehensive income is still presented

according to PAS 1 presentation of financial statements the

general features of financial statements include all of the
following except
comparability of presentation

according to PAS 1 presentation of financial statements

inappropriate accounting policies are
Not rectified either by disclosure of the accounting policies
used or by notes or explanatory material

when an entity changes the end of its reporting period and

presents national statements for a period longer or shorter than
one year an entity shall disclose all of the following except
A quantification of the possible adjustment that would
eliminate the effects of the longer or shorter reporting period

The statement of financial position will be presented either

showing current/ non-current distinction ( classified) or based
on liquidity ( unclassified) PAS 1 presentation of financial
statements encourages the
classified presentation

In a classified statement of financial position PAS 1 ascension of

financial statements requires deferred tax assets and deferred tax
liabilities to represented as
non-current items

PAS 1 presentation of financial statements

does not prescribe the order or format in which an entity
presents items in the financial statements

According to PAS 1 presentation of financial statements an

entity all items income and expense recognized in a period
Both single statement and two statements

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 The comprehensive income comprises items of income and
expense ( including reclassification adjustments) that are
not required in profit or loss as required or permitted by other
PFRSs

which of the following is not one of the components of other

comprehensive income
Remeasurements of the net defined benefit liability
( asset) unrealized gains and loss on FVPL

according to PAS 1 presentation financial statement

reclassification adjustments are
amounts reclassified to profit or loss in the current period that
were recognized in other comprehensive income in the current
or previous periods

other comprehensive income including reclassification

adjustments are presented
both net or gross related taxes

total comprehensive income includes

all non-owner changes in equity

comprehensive income comprises

profit or loss and other comprehensive income

presenting extraordinary items in the financial statements

is prohibited on both the face of the financial statements and in
the notes

According to PAS 1 presentation of financial statements

expenses are presented using
BOTH nature and function of expense method

additional disclosure is required when expenses are presented

under the
function of expense method

dividends are disclosed in the

BOTH statement of changes in equity and notes

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 which of the following statements in Correct in relation to the
provisions of PAS 1 presentation of financial statements
none of these

the notes is an integral part of the financial statements

represents all of the following except
auditor's opinion

All of the following statements correctly refer to the provisions of

PAS 1 presentation of financial statements except
PAS 1 shall be applied to all-purpose financial statements
prepared and presented in accordance with philippine financial
reporting standards

financial statements are structured presentation of the financial

position and financial performance of an entity the objective of
general purpose financial statement is to provide information
about an entity's
Valuation

the following statements relate to PAS 1 presentation of

financial statements choose the correct statement
applying a requirement is impracticable when the entity cannot
apply it after making very reasonable effort to do so

Omissions or miss statements of items are material if they could

individually or collectively influence the economic decisions of
users taken on the basis of the financial statements materiality
depends on
the size and nature of the emission or misstatements judge in
the surrounding circumstances

according to PAS1 presentation of financial statements is

provide narrative description or aggregations of items disclosed in
those statements and information about items that do not qualify
for recognition in those statements
Notes

the general features listed in PAS 1 includes the following

remove accounting entity and compatibility

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 in virtually all circumstances, a fair presentation is achieved by
compliance with applicable PFRSs a fair presentation also
requires an entity
to have its financial statements examined by an external party

In virtually all circumstances a fair presentation is achieved by

compliance with applicable IFRSs a fair presentation also
requires an entity
to establish a system of internal control responsibility which is
the entity's management furthermore the entities financial
statements should be audited by an independent external party
at least annually

in extremely rare circumstances in which management concludes

that compliance with a requirement in a standard or an
interpretation would be so misleading that it would conflict with
the objective of financial statements set out in the framework
that it has complied with other applicable standards other than
those issued by FRSC or IASB

identify the incorrect statement

PAS 1 requires an entity preparing financial statements to
make an assessment of the entity's ability to continue as a going
concern in assessing whether the going concern assumption is
appropriate management takes into account all relevant
information about the future which is at least that is not limited
to five years from the balance sheet date

Identify the incorrect statement

an entity shall prepare its financial statements including cash
flow information using the accrual basis of accounting

all of the following are examples of offsettings except

presenting accounts receivable net of allowance for doubtful
accounts

which of the following statements is incorrect

PFRSs apply to financial statements and to other information
presented in an annual report or other document

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 each component of the statements shall be identified clearly in
addition the following information shall be stayed prominently
and repeated when it is necessary for a proper understanding of
the information presented
all of the following

when an entity’s balance sheet date changes and the annual

financial statements are presented for a period longer or shorter
than one year an entity shall disclose in addition to the period
covered by financial statements

the reason for using a longer or shorter period

the amounts charged to the beginning balance of the retained
earnings net of tax

according to PAS 1, an asset shall be classified as current when it

satisfies any of the following criteria except
it is cash or cash equivalent that is resisted

All of the following statements are correct except

when an entity presents current and noncurrent assets and
current and noncurrent liabilities are presented classification on
the face of its balance sheet

a liability of the following except

The entity has an unconditional right to defer settlement of the
liability or at least twelve months after the balance sheet date

when an entity breaches an undertaking under a long term loan

agreement on or before the end of the reporting period with the
effect that the liability becomes payable on demand
the liability is classified as current even if the lender has agreed
after the balance sheet date and before the authorization of the
financial statements for issue not to demand payment as a
consequence of the breach

the objective of PAS 1 financial statements is

provide the basic principles and the presentation of general
purpose financial statements to improve comparability

according to PAS 1, these are financial statements intended to

serve the needs of users who do not have the authority to them
and financial reports tailored for their own needs
general purpose financial statements
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 general purpose nestlé statements cater to what type of needs
of users
common needs

PAS 1 Does not require the presentation of which of the following

financial statements
income statement

a complete set of financial statements does not include

statement of retained earnings

which of the following items is within the scope of PAS 1

Notes

ABC Co’s depreciation expense for the period is overstated

which of the following statements is incorrect
ABC Co’s can rectify the error by simply making appropriate
disclosures in the notes

according to PAS 1, this general feature of financial statements

requires the presentation of the last year's financial statements
together with the current Years financial statements
comparative information

the assessment of an entity's going concern shall cover a

minimum period of
One year

which of the following is an example of offsetting under PAS 1

deducting the related selling costs from the sale price when
computing for the gain or loss on the sale of an item or property
plant and equipment

when is an entity not required to present an additional balance

sheet dated as of the beginning of the preceding period
The entity changes the frequency of its reporting

in which of the following instances would a liability that would

otherwise be presented as current is presented as noncurrent
the entity enters into a refinancing agreement and the
financing agreement is completed by the balance sheet date

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 in a classified balance sheet, deferred tax assets/ liabilities are
presented
non-current items

which of the following statements correctly relate to the

provisions of PAS 1
an entity may present its income and expenses in a single
statement or into statements

in which of the following is not a component of other

comprehensive income
the ineffective portion of a cash flow hedge

in which of the following instances may an entity make a

reclassification adjustment
a hedging relationship thesis and the entity as first the related
cumulative fair value changes accumulated in equity to profit or
loss

Total Comprehensive income includes which of the following

all of these

An entity is required to present additional disclosure if the entity

present its expenses using the
function of expense method

according to PAS 1 dividends declared by an entity are disclosed

in the
Notes

which of the following are disclosed in the notes under the

summary of significant accounting policies section
the methods of depreciation used by the entity

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