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2. The following statements are correct, except: a. It is expected that IFRS will be beneficial to investors for this will reduce cost of comparing alternative investments. b. The Conceptual Framework is a set of principle-based international standards stating how particular types of transactions should be reported in the financial statements. c. The Conceptual Framework is used to set standards, enhance consistency across standards, and provide a benchmark for judgments. d. Preparers of financial statements use the Conceptual Framework to develop accounting policies in the absence of specific standard or interpretation. 3. Statement 1: The concepts that underlie the Philippine Financial Reporting Standards (PFRS) are objectives of general- purpose financial statements, qualitative characteristics, elements, recognition and measurement, and presentation and disclosure. Statement 2: The PFRS in the Philippines are adopted by the Philippine Financial Reporting Standard Council (PFRSC) and adopted by the Philippine Securities and Exchange Commission (PSEC). a. Only the first statement is correct. b. Only the second statement is correct. с. Both statements are correct. d. Neither of the statements is correct. 4. Which of the following statements is correct? 1. Financial statements are most commonly prepared in accordance with an accounting model based on recoverable historical cost and the nominal financial capital maintenance concept. II. The Conceptual Framework to a certain extent is PFRS and, hence, - defines standards for any particular measurement or disclosure issue. a. Ionly Both I and II C. b. Пonly d. Neither I nor II

2. The following statements are correct, except: a. It is expected that IFRS will be beneficial to investors for this will reduce cost of comparing alternative investments. b. The Conceptual Framework is a set of principle-based international standards stating how particular types of transactions should be reported in the financial statements. c. The Conceptual Framework is used to set standards, enhance consistency across standards, and provide a benchmark for judgments. d. Preparers of financial statements use the Conceptual Framework to develop accounting policies in the absence of specific standard or interpretation. 3. Statement 1: The concepts that underlie the Philippine Financial Reporting Standards (PFRS) are objectives of general- purpose financial statements, qualitative characteristics, elements, recognition and measurement, and presentation and disclosure. Statement 2: The PFRS in the Philippines are adopted by the Philippine Financial Reporting Standard Council (PFRSC) and adopted by the Philippine Securities and Exchange Commission (PSEC). a. Only the first statement is correct. b. Only the second statement is correct. с. Both statements are correct. d. Neither of the statements is correct. 4. Which of the following statements is correct? 1. Financial statements are most commonly prepared in accordance with an accounting model based on recoverable historical cost and the nominal financial capital maintenance concept. II. The Conceptual Framework to a certain extent is PFRS and, hence, - defines standards for any particular measurement or disclosure issue. a. Ionly Both I and II C. b. Пonly d. Neither I nor II

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. The following statements are correct, except: a. It is expected that IFRS will be beneficial to investors for this will reduce cost of comparing alternative investments. b. The Conceptual Framework is a set of principle-based international standards stating how particular types of transactions should be reported in the financial statements. c. The Conceptual Framework is used to set standards, enhance consistency across standards, and provide a benchmark for judgments. d. Preparers of financial statements use the Conceptual Framework to develop accounting policies in the absence of specific standard or interpretation. 3. Statement 1: The concepts that underlie the Philippine Financial Reporting Standards (PFRS) are objectives of general- purpose financial statements, qualitative characteristics, elements, recognition and measurement, and presentation and disclosure. Statement 2: The PFRS in the Philippines are adopted by the Philippine Financial Reporting Standard Council (PFRSC) and adopted by the Philippine Securities and Exchange Commission (PSEC). a. Only the first statement is correct. b. Only the second statement is correct. с. Both statements are correct. d. Neither of the statements is correct. 4. Which of the following statements is correct? 1. Financial statements are most commonly prepared in accordance with an accounting model based on recoverable historical cost and the nominal financial capital maintenance concept. II. The Conceptual Framework to a certain extent is PFRS and, hence, - defines standards for any particular measurement or disclosure issue. a. Ionly Both I and II C. b. Пonly d. Neither I nor II
Transcribed Image Text:2. The following statements are correct, except: a. It is expected that IFRS will be beneficial to investors for this will reduce cost of comparing alternative investments. b. The Conceptual Framework is a set of principle-based international standards stating how particular types of transactions should be reported in the financial statements. c. The Conceptual Framework is used to set standards, enhance consistency across standards, and provide a benchmark for judgments. d. Preparers of financial statements use the Conceptual Framework to develop accounting policies in the absence of specific standard or interpretation. 3. Statement 1: The concepts that underlie the Philippine Financial Reporting Standards (PFRS) are objectives of general- purpose financial statements, qualitative characteristics, elements, recognition and measurement, and presentation and disclosure. Statement 2: The PFRS in the Philippines are adopted by the Philippine Financial Reporting Standard Council (PFRSC) and adopted by the Philippine Securities and Exchange Commission (PSEC). a. Only the first statement is correct. b. Only the second statement is correct. с. Both statements are correct. d. Neither of the statements is correct. 4. Which of the following statements is correct? 1. Financial statements are most commonly prepared in accordance with an accounting model based on recoverable historical cost and the nominal financial capital maintenance concept. II. The Conceptual Framework to a certain extent is PFRS and, hence, - defines standards for any particular measurement or disclosure issue. a. Ionly Both I and II C. b. Пonly d. Neither I nor II
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