1. PAS 1 does not require the presentation of which of the following financial statements? a. Balance sheet b. Notes diafor c. Income statement d. All of these are required
1. PAS 1 does not require the presentation of which of the following financial statements? a. Balance sheet b. Notes diafor c. Income statement d. All of these are required
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PROBLEM 2: FOR CLASSROOM DISCUSSION
1. PAS 1 does not require the presentation of which of the
following financial statements?
a. Balance sheet
sior c. Income statement
d. All of these are required
1o moits
b. Notes
2. Which of the following statements correctly relate to the
provisions of PAS 1?
a. According to PAS 1, "cash and cash equivalents" shall
always be presented as the first line item in the balance
sheet.
b. The term "balance sheet" may be used in lieu of the
"statement of financial position" and the term "income
statement" may be used in lieu of the "statement of profit
or loss and other comprehensive income."
c. An entity is prohibited from presenting extraordinary
items in the financial statements but may disclose those
items in the notes.
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Statement of Comprehensive Income
75
d. An entity may present its income and expenses in a single
statement or in two statements.
3. Which of the following is not a component of other
comprehensive income?
a. A revaluation increase in an item of property, plant and
equipment during the period.
b. The difference between the return on plan assets and the
interest on the plan assets.
c. A decrease in the fair value of investment in FVOCI
securities.
d. The ineffective portion of a cash flow hedge.
Transcribed Image Text:4. In which of the following instances may an entity make a
reclassification adjustment?
a. A revalued property is sold at a gain.
b. The entity amends its retirement benefit plan resulting to a
decrease in the present value of defined benefit obligation.
c. An entity sells its investment in equity securities measured
at FVOCI.
d. A hedging relationship ceases and the entity transfers the
related cumulative fair value changes accumulated in
equity to profit or loss.
5. Total comprehensive income includes which of the following?
a. Unrealized loss on FVOCI securities
b. Unrealized loss on FVPL securities
c. Profit or loss during the period
d. All of these
6. An entity is required to present additional disclosures if the
entity presents its expenses using the
„a. Nature of expense method
b. Function of expense method
c. Either a or b
d. Neither a nor b
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