Chapter 30

1. This is defined as the first annual financial statements in which an entity adopts
PFRS by an explicit and unreserved statement of compliance with PFRS. First
PFRS financial statements

2. An entity that presents first annual financial statements that conform with PFRS
is known as a first time adopter.

3. What is the date of transition to PFRS? The beginning of the earliest period
for which an entity presents full comparative information under PFRS.

4. An entity is a first time adopter of PFRS. The most recent financial statements it
presented under previous GAAP were on December 31, 2020. The entity
adopted PFRS for the first time and intended to present the first PFRS financial
statements on December 31, 2021. The entity plans to present a two-year
comparative information for years 2020 and 2019. The opening PFRS
statement of financial position should be prepared on January 1, 2019.

5. The statement of financial position at the date of transition to PFRS is best

described as opening PFRS statement of financial position

6. Under which of the following circumstances would an entity’s current year

financial statements not qualify as first PFRS financial statements? The entity
prepared its financial statements in the previous year in conformity with
all requirements of PFRS and contained an explicit and unreserved
statement compliance with PFRS.

7. Under what condition would an entity’s current year financial statements qualify
as first PFRS financial statements? All of these conditions would qualify the
current year financial statements of an entity as first PFRS financial
statements

8. Which is not a required adjustment in an opening PFRS statement of financial

position? Disclose as comparative information all figures under previous
GAAP alongside figures for the current year presented under PFRS.
 9. How should a first timer adopter of PFRS recognize the adjustments required
to present the opening PFRS statement of financial position? All of the
adjustments should be recognized directly in retained earnings or, if
appropriate, in another category of equity.

10.Which of the following would be included in the first PFRS financial statements?
All of these statements would be included in the first PFRS financial statements