QUIZ - PFRS 1 - FIRST TIME ADOPTION OF PFRSs
QUIZ - PFRS 1 - FIRST TIME ADOPTION OF PFRSs
QUIZ - PFRS 1 - FIRST TIME ADOPTION OF PFRSs
QUIZ:
1. An entity that presents its first PFRS financial statements is referred to under PFRS 1 as a
a. first-timer.
b. first-time adopter.
c. PFRS novice.
d. first-time PFRSer.
4. The statement of financial position of ABC Co. as of January 1, 20x4 included an allowance for
bad debts computed using the “aging of accounts receivable” method. The “over 120 days”
category in the aging schedule included a ₱200,000 receivable which was actually written off on
January 5, 20x4 (the 20x3 financial statements were authorized for issue on March 1, 20x4). ABC
Co. could not have foreseen this event on December 31, 20x3. Does ABC Co. need to revise its
previous estimate of bad debts as of January 1, 20x4 (date of transition) on December 31, 20x5 (end
of first PFRS reporting period)?
a. No. The receipt of the information on January 5, 20x4 is accounted for prospectively as a
non-adjusting event after the reporting period.
b. Yes. The receipt of the information on January 5, 20x4 is accounted for retrospectively as an
adjusting event after the reporting period.
c. No. The event should be ignored because it is within the scope of the previous GAAP and
not the PFRSs.
d. Yes. Although, PFRS 1 does not require the adjustment, other PFRSs do.
5. Under PFRS 1, the early application of PFRSs that have not yet become effective as of the current
reporting period
a. is required.
b. is permitted, but not required.
c. is required, but not permitted.
d. is prohibited.
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6. PFRS 1 requires a first time adopter to do which of the following in the opening PFRS statement of
financial position?
a. Recognize all assets and liabilities whose recognition is required by PFRSs.
b. Not recognize items as assets or liabilities if PFRSs do not permit such recognition.
c. Reclassify items that it recognized in accordance with previous GAAP as one type of asset,
liability or component of equity, but are a different type of asset, liability or component of
equity in accordance with PFRSs.
d. Apply PFRSs in measuring all recognized assets and liabilities.
e. All of these
“A wise man will hear and increase learning, and a man of understanding will attain wise counsel.”
(Proverbs 1:5)
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