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    QUIZ - PFRS 1 - FIRST TIME ADOPTION OF PFRSs

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    Gonzalo Jr. Ruales
    The document is a quiz on PFRS 1 First-time Adoption of PFRSs. It contains 7 multiple choice questions that test understanding of key requirements and concepts in PFRS 1 regarding: [1] the definition of a first-time adopter, [2] required financial statements for transition, [3] the transition date, [4] adjusting and non-adjusting events after the reporting period, [5] early application of standards, [6] requirements for the opening statement of financial position, and [7] the meaning of retrospective application of accounting policies.

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    QUIZ - PFRS 1 - FIRST TIME ADOPTION OF PFRSs

    Uploaded by

    Gonzalo Jr. Ruales
    19K views2 pages
    The document is a quiz on PFRS 1 First-time Adoption of PFRSs. It contains 7 multiple choice questions that test understanding of key requirements and concepts in PFRS 1 regarding: [1] the definition of a first-time adopter, [2] required financial statements for transition, [3] the transition date, [4] adjusting and non-adjusting events after the reporting period, [5] early application of standards, [6] requirements for the opening statement of financial position, and [7] the meaning of retrospective application of accounting policies.

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    QUIZ_PFRS 1_FIRST TIME ADOPTION OF PFRSs

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    The document is a quiz on PFRS 1 First-time Adoption of PFRSs. It contains 7 multiple choice questions that test understanding of key requirements and concepts in PFRS 1 regarding: [1] the definition of a first-time adopter, [2] required financial statements for transition, [3] the transition date, [4] adjusting and non-adjusting events after the reporting period, [5] early application of standards, [6] requirements for the opening statement of financial position, and [7] the meaning of retrospective application of accounting policies.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    19K views2 pages

    QUIZ - PFRS 1 - FIRST TIME ADOPTION OF PFRSs

    Uploaded by

    Gonzalo Jr. Ruales
    The document is a quiz on PFRS 1 First-time Adoption of PFRSs. It contains 7 multiple choice questions that test understanding of key requirements and concepts in PFRS 1 regarding: [1] the definition of a first-time adopter, [2] required financial statements for transition, [3] the transition date, [4] adjusting and non-adjusting events after the reporting period, [5] early application of standards, [6] requirements for the opening statement of financial position, and [7] the meaning of retrospective application of accounting policies.

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    © All Rights Reserved
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    Page |1

    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.

    2. PFRS 1 requires an entity to prepare and present an


    a. opening PFRS financial statements.
    b. opening PFRS statement of financial position.
    c. opening PFRS statement of profit or loss and other comprehensive income.
    d. opening notes to the financial statements.

    3. The date to transition to PFRSs is


    a. the beginning of the earliest period for which an entity presents full comparative
    information under PFRSs in its first PFRS financial statements.
    b. the end of the earliest period for which an entity presents full comparative information
    under PFRSs in its first PFRS financial statements.
    c. the beginning of the first PFRS reporting period.
    d. the end of the first PFRS reporting period.

    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.
    Page |2

    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

    7. Retrospective application of accounting policies means


    a. as if PFRSs have been used all along.
    b. as if PFRSs are used only in prior periods.
    c. as if PFRSs are used only in the current period.
    d. restating the financial statements in order to correct all errors.

    “A wise man will hear and increase learning, and a man of understanding will attain wise counsel.”
    (Proverbs 1:5)

    - END –

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