Name: April 21, 2025
ACCTG 325N MW 1:00 – 2:30 P.M.
Write TRUE if the statement is true, otherwise, write FALSE.
1. PFRS 18 Presentation and Disclosures of Financial Statements replaces PAS 7
Statement of Cash Flows.
2. Under PFRS 18, entities must classify income and expenses into three
categories only: operating, investing, and financing.
3. PFRS 18 requires the disclosure of Management-Defined Performance
Measures (MPMs) in the notes to the financial statements.
4. The effective date for PFRS 18 annual reporting periods beginning on or after
January 1, 2025.
5. PFRS 18 prohibits the use of a mixed presentation approach, not allowing the
analysis of operating expenses by both nature and function.
6. PFRS 19 aims to simplify and reduce the cost of financial reporting for parents of
subsidiaries while maintaining the usefulness of their financial statements.
7. The objective of PFRS 19 is to specify the disclosure requirements an entity is
permitted to apply instead of the disclosure requirements in other PFRS
Accounting Standards.
8. An entity has public accountability if its debt or equity instruments are traded in a
public market.
9. An entity has public accountability if it holds assets in a fiduciary capacity for a
specific group of outsiders as one of its primary businesses.
10. An entity cannot elect to apply IFRS 19 more than once.
Choose the best answer for each question and write the letter in CAPITAL LETTER.
1. Under IFRS 18, how should entities handle the presentation of material information in
financial statements?
A. They should provide all information, even if immaterial
B. They must aggregate or disaggregate items to avoid obscuring material
information
C. They should only provide disclosures required by IFRS without additional details
D. They are allowed to omit disclosures about significant accounting estimates
2. What is the primary purpose of IFRS 18?
A. To replace the statement of financial position with a new format
B. To enhance comparability and clarity in the presentation of financial statements
C. To eliminate the requirement for a statement of profit or loss
D. To introduce a cash-based accounting framework
3. Which of the following is NOT a category of income and expenses in the statement of
profit or loss under IFRS?
A. Operating category
B. Investing category
C. Financing category
D. Depreciation category
4. IFRS 19 was issued in May 2024 and applies to an annual reporting period beginning
A. On or after January 1, 2025.
B. On or after January 1, 2027.
C. Before January 1, 2025.
D. Before January 1, 2027.
5. An entity is eligible to apply PFRS19 if:
A. It is a parent of a subsidiary
B. It has public accountability
C. It has an ultimate or intermediate parent that produces consolidated financial
statements available for public use that comply with IFRS Accounting Standards.
D. All of the above
