PFRS 1

PFRS 1

University

5 Qs

quiz-placeholder

Similar activities

BATTLE OF THE DESCENDANTS (EASY)

BATTLE OF THE DESCENDANTS (EASY)

University

10 Qs

MOG BE SUMMIT 2021

MOG BE SUMMIT 2021

University

10 Qs

Basic Characteristics of Quadratic Function

Basic Characteristics of Quadratic Function

9th Grade - University

10 Qs

Acct 1101 Ch 3 Quiz

Acct 1101 Ch 3 Quiz

University

10 Qs

STAT 26 Quiz Test about a Population Mean

STAT 26 Quiz Test about a Population Mean

University

10 Qs

Inductive and Deductive Reasoning

Inductive and Deductive Reasoning

University

10 Qs

Rounding Applications

Rounding Applications

9th Grade - University

10 Qs

Quiz 2 UAS MK KP B

Quiz 2 UAS MK KP B

University

10 Qs

PFRS 1

PFRS 1

Assessment

Quiz

Mathematics

University

Practice Problem

Easy

Created by

Jannah Mae Lisondra

Used 5+ times

FREE Resource

AI

Enhance your content in a minute

Add similar questions
Adjust reading levels
Convert to real-world scenario
Translate activity
More...

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What does PFRS 1 primarily deal with?

Revenue Recognition

First-time Adoption of Philippine Financial Reporting Standards

Financial Instruments

Leases

Answer explanation

PFRS 1 is specifically designed to help companies in their first-time adoption of Philippine Financial Reporting Standards (PFRS).

It provides guidance on the transition from previous accounting standards to PFRS, ensuring that financial statements are transparent and comparable.

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is required by an entity under PFRS 1?

Opening PFRS financial statements

Final Statement of Financial Position

Opening PFRS statement of profit or loss and other comprehensive income

Closing Statement of Financial Position

Answer explanation

PFRS 1 focuses on the presentation of the opening financial statements under PFRSs.

3.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

When should an entity transition to PFRSs according to PFRS 1?

The beginning of the entity's fiscal year

The end of the entity's fiscal year

There is no specific date mandated by PFRS 1

The beginning of the earliest period for which an entity presents full PFRS financial statements

Answer explanation

PFRS 1 allows flexibility, requiring the transition to occur at the beginning of the earliest period presented as full PFRS financials.

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is the purpose of retrospective application of accounting policies?

As if PFRSs have been used all along

As if PFRSs are used only in prior periods

As if PFRSs are used only in the current period

Restating the Financial Statements in order to correct all errors

Answer explanation

When applying a new accounting policy retrospectively, the financial statements are adjusted to reflect how they would have looked if the new policy had been used from the beginning (for all prior periods presented). This ensures a more comparable picture of the entity's financial performance across periods.

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

PFRS 1 focuses on applying accounting standards retrospectively. What are two potential challenges that entities might face when implementing a retrospective application under PFRS 1?

Increased comparability and transparency

Data conversion difficulties and implementation costs

Potential for fewer accounting policy choices

Reduced user confidence in the financial statements

Answer explanation

Retrospective application can be complex. Entities might struggle with converting historical data to comply with new PFRS requirements, and there can be significant costs associated with implementing new systems and processes.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?