2. Which of the following statements is correct? I An entity whose financial statements comply with PFRS/IFRS shall no longer make an explicit and unreserved statement of such compliance in the notes. I An entity shall not describe financial statements as complying with PFRS/IFRS unless they'comply with all the requirements of PFRS/IFRS.
2. Which of the following statements is correct? I An entity whose financial statements comply with PFRS/IFRS shall no longer make an explicit and unreserved statement of such compliance in the notes. I An entity shall not describe financial statements as complying with PFRS/IFRS unless they'comply with all the requirements of PFRS/IFRS.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Choose the letter of the correct answers.
Transcribed Image Text:Which of the following statements is correct?
1 An entity whose financial statements comply with PFRS/IFRS
shall no longer make an explicit and unreserved statement of such
compliance in the notes.
I An entity shall not describe financial statements as complying
with PFRS/IFRS unless they comply with all the requirements of
PFRS/IFRS.
а. I only
Both I and II
с.
b. Пonly
d. Neither I nor II
3.
The following statements are correct, except:
An entity shall prepare all its financial statements using the.
а.
accrual basis of accounting.
b. An entity need not provide a specific disclosure required by PFRS/
IFRS if the information is not material.
С.
An entity shall not offset assets and liabilities or income and
expenses, unless required or permitted by PFRS/IFRS.
d. When an entity departs from a requirement of PFRS/IFRS, it shall
disclose that it has complied with applicable PFRS/IFRS, except
that it has departed from a particular requirement to achieve a fair
presentation.
4. Which of the following statements is correct?
'I. An entity shall present separately each immaterial class of similar
items.
II. An entity shall present separately each dissimilar nature or
function unless they are immaterial.
a. Ionly
I only
Both I and II
С.
II only
d. Neither I nor II
2.
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