PAS 1: Statement of Profit or Loss and Other Comprehensive Income

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What is the main purpose of an income statement?

To present the financial performance of an entity for a given period of time (correct)

To summarize the cash flows of an entity for a given period of time

To show the financial position of an entity at a specific point in time

To provide information about the changes in equity during a period

Which approach is traditionally used for preparing the income statement in conformity with accounting standards?

Equity valuation approach

Transaction approach (correct)

Entity approach

Resource utilization approach

What is comprehensive income?

The change in equity resulting from transactions with non-owners

The change in equity resulting from transactions and other events excluding changes from transactions with owners (correct)

The change in equity resulting from transactions with owners

The change in equity resulting from transactions with both owners and non-owners

What are the components of other comprehensive income (OCI)?

Both realized and unrealized gains and losses Signup and view all the answers

What does PFRS stand for in the context of comprehensive income?

Philippine Financial Reporting Standards Signup and view all the answers

Why is information about financial performance on the income statement useful?

To predict future performance and ability to generate future cash flows Signup and view all the answers

What is the term used for the income from rendering services such as professional fees, media advertising commissions, and insurance agency commissions?

Rendering of services Signup and view all the answers

According to the Application Guidance of PFRS 9, which item indicates that realization of the revaluation surplus is through retained earnings?

Unrealized gain or loss on debt investments @ FVOCI Signup and view all the answers

Which category includes income from interest, rent, royalty, and similar sources?

Use of entity resources Signup and view all the answers

Where should the line items for amounts of other comprehensive income be presented according to PAS 1, paragraph 82A?

In a single statement of comprehensive income Signup and view all the answers

What is the term for the gain or loss from change in fair value attributable to credit risk of a financial liability designated @ FVPL?

Change in fair value attributable to credit risk of a financial liability designated @ FVPL Signup and view all the answers

Where should the components of profit or loss and components of other comprehensive income be presented?

In a single statement of comprehensive income Signup and view all the answers

Which item is not included in the line items for amounts of OCI that will be reclassified subsequently to profit or loss when specific conditions are met?

Gain or loss from translation of the financial statements of a foreign operation Signup and view all the answers

Which category includes income from sales return, allowances, and discounts deducted from gross sales to arrive at net sales?

Sales of merchandise Signup and view all the answers

What is the term used for the remeasurements that are not reclassified subsequently but are permanently excluded from profit or loss according to the Application Guidance of PFRS 9?

Remeasurements of defined benefit plan Signup and view all the answers

What term is used for the single statement showing the components of profit or loss and components of other comprehensive income according to the Revised Conceptual Framework?

Statement of financial position Signup and view all the answers

PAS 1: Statement of Profit or Loss and Other Comprehensive Income

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