IPSAS 1

1. IPSAS is ...

I. Authoritative standards for the preparation of general purpose financial statements.

II. Designed to apply to public sector entities that have primary objective to make profits.

III. One of the global financial reporting standards for public sector.

• Only statement I is true

• Statements I and II are true

• Statements I and III are true

• All statements are true

How many IPSASs are issued and effective as of December 31, 2023?

• 45

• 44

• 43

• 42

How many IPSAS are adopted and effective in the Philippines as of December 31, 2023?

• 30

• 29

• 28

• 27

The financial statements provide users with information about an entity’s:

I.         resources and obligations at the reporting date

II.        income and expenses as of the reporting date

III.      flow of resources between reporting dates

• I and II only

• II and III only

• I and III only

• I, II and III

Statement 1: Items of a dissimilar nature or function shall be presented separately, unless they are immaterial.

Statement 2: Assets and liabilities, and revenue and expenses, shall not be offset unless required and permitted by an IPSAS.

• Statement 1 is true, Statement 2 is false

• Statement 1 is false, Statement 2 is true

• Both Statements are true

• Both Statements are false

When it is impracticable to reclassify comparative amounts, an entity shall disclose:

I.         The nature of the reclassification

II.        The reason for not reclassifying the amounts

III.      The amount of each item or class of items that is reclassified

IV.      The nature of the adjustments that would have been made if the amounts had been reclassified

• I and II only

• II, III and IV only

• II and IV only

• I, II and IV only

Statement 1: An entity shall disclose on the face of the statement of financial position and in the notes, further subclassifications of the line items presented, classified in a manner appropriate to the entity’s operations

Statement 2: All items of revenue and expense recognized in a period shall be included in surplus or deficit, unless an IPSAS requires otherwise.

• Statement 1 is true, Statement 2 is false

• Statement 1 is false, Statement 2 is true

• Both Statements are true

• Both Statements are false

As a minimum, the face of the statement of financial performance shall include line items that present the following amounts for the period:

I. Finance costs

II. Accumulated Surplus or deficit

III. Reserves

IV. Impairment losses

• I and II only

• I and IV only

• I, II and III only

• I, III and IV only

Cash flow information provides users of financial statements with a basis to assess:

I. ability of the entity to generate cash and cash equivalents

II. sources of cash and cash equivalents

III. needs of the entity to utilize those cash flows

• I and II only

• II and III only

• I and III only

• I, II and III

Statement 1: Notes providing information about the basis of preparation of the financial statements and specific accounting policies may not be presented as a separate component of the financial statements.

Statement 2: The summary of significant accounting policies applied is the first part of the Notes.

• Statement 1 is true, Statement 2 is false

• Statement 1 is false, Statement 2 is true

• Both Statements are true

• Both Statements are false