Direction. TRUE or FALSE. _______1. An SME does not have a “cash and cash equivalents” line item in its balance sheet while an entity that uses the full PFRSs has this line item. _______2. An SME is does not have an “allowance for bad debts” account. _______3. An SME entity shall require to use the direct method of presenting cash flows from their operating activities. _______4. An SME is exempted from accounting for interest revenue under the cost interest method. _______5. An SME is exempt from measuring its long-term, noninterest-bearing notes at present value. _______6. An SME does not account for changes in fair values of investments in equity securities in the other comprehensive income. _______7. An SME is not required to present earnings per share information. _______8. An SME is required to disclose key management personnel compensation in total only. _______9. An SME doe not account for derivatives and hedging transactions. _______10.An SME does not have any accounting for share-based payments. These transactions are accounted for only by entities using the full PFRSs.
Direction. TRUE or FALSE.
_______1. An SME does not have a “cash and cash equivalents” line item in its
an entity that uses the full PFRSs has this line item.
_______2. An SME is does not have an “allowance for
_______3. An SME entity shall require to use the direct method of presenting
operating activities.
_______4. An SME is exempted from accounting for interest revenue under the cost interest method.
_______5. An SME is exempt from measuring its long-term, noninterest-bearing notes at present value.
_______6. An SME does not account for changes in fair values of investments in equity securities in
the other comprehensive income.
_______7. An SME is not required to present earnings per share information.
_______8. An SME is required to disclose key management personnel compensation in total only.
_______9. An SME doe not account for derivatives and hedging transactions.
_______10.An SME does not have any accounting for share-based payments. These transactions are
accounted for only by entities using the full PFRSs.
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