showing current/non-current distinction (classified) or bacon liquidity (unclassified). PAS 1 Presentation of FinanciaStatements enoourages thea. classified presentationb. unclassified presentationc. combination of a and bd. none of these8. In a classified statement financial position, PAS 1 Presentationof Financial Statements requires deferred tax assets anddeferred tax liabilities to be presented asa. current itemseither a or bc.b. noncurrent itemsd. none of these eliminate the effects of the longer or shorter reporting6, When an entity changes the end of its reporting period andpresents financial statements for a period longer or shorterthan one year, an entity shall disclose all of the following,excepta. the period covered by the financial statements.Chapter 146b. the reason for using a longer or shorter period.are not entirely comparable.period.

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7. The statement of financial showing current/non-current distinction (classified) or baced on liquidity (unclassified). PAS 1 Presentation of Financial Statements encourages the a. classified presentation b. unclassified presentation c. combination of a and b d. none of these 8. In a classified statement financial position, PAS 1 Presentation of Financial Statements requires deferred tax assets and deferred tax liabilities to be presented as a. current items b. noncurrent items c. either a or b d. none of these

7. The statement of financial showing current/non-current distinction (classified) or baced on liquidity (unclassified). PAS 1 Presentation of Financial Statements encourages the a. classified presentation b. unclassified presentation c. combination of a and b d. none of these 8. In a classified statement financial position, PAS 1 Presentation of Financial Statements requires deferred tax assets and deferred tax liabilities to be presented as a. current items b. noncurrent items c. either a or b d. none of these

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 4MCQ

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When an entity changed at the end of the reporting period longer or shorter than one year, an entity shall disclose all of the following except: a. Period covered by the financial statements b. The reason for using a longer or shorter period c. The fact that amounts presented in the financial statements are not entirely comparable d. The fact that similar entities in the geographical area in which the entity operates have done so in the current year
When an entity changed at the end of the reporting period longer orshorter than one year, an entity shall disclose all of the following except: Period covered by the financial statementsThe reason for using a longer or shorter periodThe fact that amounts presented in the financial statements are not entirelycomparableThe fact that similar entities in the geographical area in which the entity operateshave done so in the current year
PAS 1, encpurages, but does not require the presentation of the preceding years financial statements as comparative information to the current year's financial statement. True or false? According to PAS 1,PFRSs apply to financial statements as well as to other information presented in an annual report a regulatory filing or another document. True or false?
Choose the incorrect statement below:A. An entity shall select and apply different accounting policies each period in order to achieve comparability of financial statements.B. A change in reporting entity is actually a change in accounting policy and therefore shall be treated retrospectively to disclose what the statements would have looked like if the current entity had been in existence in the prior year.C. Prior period errors are retrospectively corrected by adjusting the beginning balance of retained earnings and affected assets and liabilities.D. Changes in accounting estimates are to be handled currently and prospectively, if necessary.
If an entity does not prepare interim financial reports A. The year-end financial statements are deemed not to comply with PFRS.B. The year-end financial statements’ compliance with PFRS is not affectedC. The year-end financial statements shall not be acceptable under local jurisdictionD. Interim financial reports shall be included in the year-end financial statements
Why are these statements are false?I. Non-compliance with IAS 34 indicated that the entity does not comply with the requirements of IAS 1.II. IAS 34 requires entities whose equity or debt securities are traded in a public capital market to publish interim reports at least as of the end of the first half of the financial year.
If an entity does not prepare interim financial reports: a. The year-end financial statements are deemed not to comply with PFRS (IFRS). b. The year-end financial statements’ compliance with PFRS (IFRS) is not affected c. The year-end financial statements shall not be acceptable under local jurisdiction d. Interim financial reports shall be included in the year-end financial statements
Entities have to apply the revised Conceptual Framework: A. Immediately after it is issued B. For annual reporting periods beginning on or after 1 January 2020, with early application permitted C. Never - the Conceptual Framework is only used by the International Accounting Standards Board D. None of the above
If the statement of financial position error is discovered in a subsequent accounting period, what action is to be done by the entity? A. Reclassify the item to its proper real account but do not restate the statement of financial position of the prior year affected by the error. B. Reclassify the item to its proper real account. C. Restate the statement of financial position of the prior year affected by the error. D. Reclassify the item to its proper real account and restate the statement of financial position of the prior year affected by the error
When it is difficult to distinguish between a change of estimate and a change in accounting policy, then an entity should (a) Treat the entire change as a change in estimate with appropriate disclosure. (b) Apportion, on a reasonable basis, the relative amounts of change in estimate and the change in accounting policy and treat each one accordingly. (c) Treat the entire change as a change in accounting policy. (d) Since this change is a mixture of two types of changes, it is best if it is ignored in the year of the change; the entity should then wait for the following year to see how the change develops and then treat it accordingly.
For a publicly owned company, indicate which of the fol-lowing accounting activities are likely to occur at or shortly after year-end. (More than one answer may be correct.)a. Preparation of income tax returns.b. Adjusting and closing of the accounts.c. Drafting of disclosures that accompany the fi nancialstatements.d. An audit of the fi nancial statements by an independentCPA fi rm.
According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, an entity must select and apply its accounting policies consistently from one period to the next and among various items in the financial statements. However, an entity may change its accounting policies under certain conditions. Required: Identify the circumstances under which it may be appropriate to change accounting policy in accordance with the guidance given in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.