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The selected policies are applied to all financial statements presented together with the first PFRS financial statements.
The selected policies are applied to all financial statements presented together with the first PFRS financial statements.
True
PFRS 1 requires retrospective application of the accounting policies selected by the first-time adopter in all cases.
PFRS 1 requires retrospective application of the accounting policies selected by the first-time adopter in all cases.
False
The first PFRS financial statements must include at least two-year comparative information.
The first PFRS financial statements must include at least two-year comparative information.
False
The first-time adopter shall explain how the transition to PFRSs affected its financial statements by providing reconciliations of equity and comprehensive income.
The first-time adopter shall explain how the transition to PFRSs affected its financial statements by providing reconciliations of equity and comprehensive income.
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The first-time adopter is not required to provide any disclosures to help users understand the impact of the PFRSs on the entity's financial statements.
The first-time adopter is not required to provide any disclosures to help users understand the impact of the PFRSs on the entity's financial statements.
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The objective of PFRS 1 is to ensure that an entity's First financial statements contain high quality information that is transparent to users and comparable.
The objective of PFRS 1 is to ensure that an entity's First financial statements contain high quality information that is transparent to users and comparable.
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PFRS 1 does not apply when previous financial statements contained an explicit and unreserved statement of compliance with PFRSs, even if the auditors' report has been qualified.
PFRS 1 does not apply when previous financial statements contained an explicit and unreserved statement of compliance with PFRSs, even if the auditors' report has been qualified.
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PFRS 1 requires an entity to prepare and present an opening PFRS statement of financial position at the date of transition to PFRSs.
PFRS 1 requires an entity to prepare and present an opening PFRS statement of financial position at the date of transition to PFRSs.
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The date to transition to PFRSs is the end of the earliest period for which an entity presents full comparative information under PFRSs in its first PFRS financial statements.
The date to transition to PFRSs is the end of the earliest period for which an entity presents full comparative information under PFRSs in its first PFRS financial statements.
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The application of the PFRSs starts on the date of transition to PFRSs.
The application of the PFRSs starts on the date of transition to PFRSs.
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The entity selects its accounting policies based on the latest versions of PFRSs as at the end of the reporting period.
The entity selects its accounting policies based on the latest versions of PFRSs as at the end of the reporting period.
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Study Notes
First-time Adoption of PFRS
- The selected policies are applied to all financial statements presented together with the first PFRS financial statements.
- PFRS 1 requires retrospective application of the accounting policies selected, but grants exemptions if the cost exceeds the benefits or requires management judgments about past conditions.
- The first PFRS financial statements shall include at least one-year comparative information.
Transition to PFRSs
- The objective of PFRS 1 is to ensure that an entity's first financial statements contain high-quality, transparent, comparable, and cost-efficient information.
- The first PFRS financial statements require an entity to explain how the transition to PFRSs affected its financial statements.
- This includes providing reconciliations of equity and comprehensive income, and other relevant disclosures.
Definition of First PFRS Financial Statements
- First PFRS financial statements are the first annual financial statements that adopt PFRSs with an explicit and unreserved statement of compliance.
- PFRS 1 only applies once, when the entity first adopts PFRSs.
- It does not apply if previous financial statements contained an explicit and unreserved statement of compliance, even if the auditors' report was qualified.
Opening PFRS Statement of Financial Position
- PFRS 1 requires an entity to prepare and present an opening PFRS statement of financial position at the date of transition to PFRSs.
- The date of transition is the beginning of the earliest period for which an entity presents full comparative information under PFRSs in its first PFRS financial statements.
Accounting Policies
- The entity selects its accounting policies based on the latest versions of PFRSs as at the current reporting date.
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Description
Learn about the objectives of PFRS 1 which ensures high quality, transparent, comparable financial information in accordance with PFRSs. Understand when PFRS 1 is applied and its impact on an entity's first financial statements.
