PFRS 1

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Questions and Answers

Which financial statements are considered as an entity's 'First PFRS financial statements'?

Financial statements prepared in accordance with other reporting standards not consistent with the PFRSS
Financial statements with an explicit and unreserved statement of compliance with PFRSs (correct)
Financial statements prepared for internal reporting purposes only
Financial statements that did not contain a complete set of financial statements as required under PAS 1
Financial statements prepared using some, but not all, applicable PFRSS

When are financial statements considered as an entity's 'First PFRS financial statements'?

When the previous financial statements were prepared in accordance with other reporting standards not consistent with the PFRSS (correct)
When the previous financial statements were prepared in accordance with PFRSS but were used for internal reporting purposes only
When the entity did not present financial statements in the previous period
When the previous financial statements contained an explicit and unreserved statement of compliance with some, but not all, PFRSS
When the previous financial statements were prepared using some, but not all, applicable PFRSS

What renders financial statements as 'First PFRS financial statements'?

Presence of a complete set of financial statements as required under PAS 1
Preparation of financial statements in accordance with other reporting standards not consistent with the PFRSS
Preparation of financial statements using some, but not all, applicable PFRSS
An explicit and unreserved statement of compliance with PFRSs (correct)
Preparation of financial statements for internal reporting purposes only

When are financial statements not considered as an entity's 'First PFRS financial statements'?

<p>When the previous financial statements contained an explicit and unreserved statement of compliance with some, but not all, PFRSS (D)</p> Signup and view all the answers

What distinguishes 'First PFRS financial statements' from other financial statements?

<p>Explicit and unreserved statement of compliance with PFRSs (D)</p> Signup and view all the answers

Flashcards

First PFRS Financial Statements

Financial statements with a clear and complete statement of compliance with PFRSs.

What makes financial statements 'First PFRS'?

An explicit and unreserved statement that the company is following all PFRSs.

Previous statements not PFRS-compliant.

Financial statements prepared using reporting standards different from PFRSs.

When are financial statements NOT 'First PFRS'?

When previous statements were compliant with some but not all PFRSs.

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Key Distinction of 'First PFRS'?

A clear and unambiguous statement of compliance with ALL PFRSs.

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Study Notes

First PFRS Financial Statements

Financial statements are considered as an entity's 'First PFRS financial statements' when it presents its financial statements in accordance with Philippine Financial Reporting Standards (PFRS) for the first time.
This occurs when an entity adopts PFRS, having previously followed local accounting standards or another international financial reporting framework.
Financial statements cease to be considered 'First PFRS financial statements' when the entity presents its second or subsequent PFRS financial statements.
The distinguishing feature of 'First PFRS financial statements' is the adoption of PFRS, resulting in a change in the framework used to prepare financial statements.