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MSMEs Financial Reporting Standards

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

Financial Statements of corporation with total assets of Php 600,000 needs to be audited by an independent certified public accountant.

a)

True

b)

False

2.

Finance Lease is allowed under PFRS for Small Entities

a)

True

b)

False

3.

Under PFRS for Small Entities, Inventories are subsequently measured using

a)

Cost

b)

Lower of Cost or Market Value

c)

Lower of Cost or Cost of Estimated Selling Price less cost to complete and Sell

d)

Lower of Cost or Net Realizable Value

4.

If a reliable measure of fair value is no longer available without undue cost or effort, an item of Investment Property will be

a)

Transferred to PPE under PFRS for Small Entities

b)

Transferred to Inventories under PFRS for SMEs

c)

Converted from Cost Model to Fair Value Model under PFRS for SMEs

d)

Converted from Fair Model to Cost Model under PFRS for Small Entities

5.

Under PFRS for Small Entities, MSMEs must only adopt Taxes Payable Method

a)

True

b)

False

6.

The change in income tax rate under CREATE Act is an adjusting subsequent event in 2020.

a)

True

b)

False

7.

Under PFRS for Small Entities, Retirement Benefit Obligation is computed under

a)

Defined Contribution Plan

b)

Defined Benefit Plan

c)

Accrual Approach

d)

Any of Defined Benefit Plan or Accrual Approach

8.

Under PFRS for Small Entities, Biological Assets are recognized using which model:

a)

Cost or Fair Value Model

b)

Fair Value or Current Market Price Model

c)

Cost or Current Market Price Model

d)

Cost or Market Value Model

9.

Under PFRS for Small Entities, any changes in accounting estimates are accounted for

a)

Retroactively by adjusting opening balance of retained earnings

b)

Retroactively by adjusting ending balance of retained earnings

c)

Prospectively by including it in Profit or Loss

d)

Prospectively but need to restate the financial statements

10.

One of the notable differences between PFRS for SMEs and PFRS for Small Entities is that


PFRS for SMEs includes Other Comprehensive Income while PFRS for Small Entities does not have other comprehensive incomes.

a)

True

b)

False