PAS 1 Presentation of Financial Statements

Problem 1

1. What is the primary objective of PAS 1?

A) To ensure all financial statements are audited
B) To prescribe the basis for presentation of financial statements
C) To specify the acceptable accounting principles
D) To determine tax liabilities

2. Which financial statements are covered under PAS 1?

A) Income Statement and Balance Sheet
B) Statement of Cash Flows and Statement of Changes in Equity
C) Statement of Comprehensive Income and Statement of Profit and Loss
D) All of the above

3. According to PAS 1, financial statements should be prepared on the basis of:

A) Historical cost
B) Fair value
C) Net realizable value
D) Any of the above, depending on management's discretion

4. What is the minimum requirement for the presentation of a complete set of financial
statements under PAS 1?
A) Balance Sheet
B) Income Statement
C) Statement of Cash Flows
D) Statement of Changes in Equity

5. How frequently should an entity present a statement of cash flows according to PAS
1?
A) Annually
B) Semi-annually
C) Quarterly
D) It is not required under PAS 1