IAS 1: PRESENTATION OF FINANCIAL STATEMENTS

IAS 1 uses terminology is suitable for

• A. Profit-oriented entities
• B. Public sector business entities
• C. Entities operating in not-for-profit sector
• D. A and B
• E. All of the above

Which of the following does not comprise a set of financial statements?

• Statement of financial position at the end of period
• Statement of profit or loss and other comprehensive income
• Changes in equity and cash flow for the period
• Report of the entity’s sources of funding
• Comparative information in respect of the preceding period and notes

According to IAS 1, current assets are those that:

• A. Cash and cash equivalents (unless tied).
• B. Holds mainly for commercial purposes and is expected to exercise within 12 months.
• C. Expected to occur during the unit's normal operating cycle.
• D. All of the above

According to IAS 1, an entity will classify a liability as short-term when:

• A. The entity expects to settle this liability in a normal business cycle
• B. The entity does not have the right to unconditionally delay the payment of the liability for at least 12 months from the end of the reporting period
• C. Only A is correct
• D. A and B are both correct

Which of the following about comprehensive income is correct?

• Profit or loss is equal to comprehensive income plus total other comprehensive income.
• Comprehensive income is equal to profit or loss plus total other comprehensive income.
• Total other comprehensive income is equal to comprehensive income plus profit or loss.
• Comprehensive income is equal to profit or loss plus total other comprehensive income plus extraordinary items.

What is the impact of an additional share issue on the statement of changes in equity?

• It increases the share capital balance
• It decreases the share capital balance
• It increases the retained earnings balance
• It decreases the retained earnings balance

Which of the following items appear in a company’s statement of cash flows ?

• Surplus on revaluation of non-current assets
• Proceeds of issue of shares
• Proposed dividend
• The revaluation of non-current assets

Which of the following statements is correct regarding the preparation of notes?

• An entity should cross-reference items in the SOFP and statement of profit or loss and other comprehensive income, but not the statement of cash flows and statement of changes in equity, to the notes.
• An entity may present notes providing information about the basis of preparation of the financial statements and specific accounting policies as a separate section of the financial statements.
• The notes is an optional statement. An entity may decide not to present it.
• The notes does not occupy a bulk portion of a complete set of financial statements.

What do the notes to the financial statements do?

• Tell all the accounts a company has and the balance in each.
• Tell how much money was made or lost in a given time period.
• Tells how cash came into a company and went out of a company in a given time period.
• Give more information to users of the financial statements about items that appear in the financial statements.

Due to IFRS which standards was said an entity shall not offset assets and liabilities:

• IAS 1
• IAS 32
• IAS 37
• IFRS 7