PFRS 1 b.

Not recognize items as assets or liabilities if

1.) An entity that presents its first PFRS financial PFRSs do not permit such recognition.
statements is referred to under PFRS 1 as a c. Reclassify items that it recognized in accordance with
a. first-timer. previous GAAP as one type of asset, liability or
b. first-time adopter. component of equity, but are a different type of asset,
c. PFRS novice. liability or component of equity in accordance with PFRSs.
d. first-time PFRSer. d. Apply PFRSs in measuring all recognized assets and
liabilities.
2.) PFRS 1 requires an entity to prepare and present an e. All of these
a. opening PFRS financial statements.
b. opening PFRS statement of financial position. 7.) Retrospective application of accounting policies
c. opening PFRS statement of profit or loss and other means
comprehensive income. a. as if PFRSs have been used all along.
d. opening notes to the financial statements. b. as if PFRSs are used only in prior periods.
c. as if PFRSs are used only in the current period.
3.) The date to transition to PFRSs is d. restating the financial statements in order to correct all
a. the beginning of the earliest period for which errors
an entity presents full comparative information under
PFRSs in its first PFRS financial statements. 8.) Which is the accounting standard-setting body in the
b. the end of the earliest period for which an entity Philippines at present?
presents full comparative information under PFRSs in its A. Accounting Standard Council
first PFRS financial statements. B. Accounting Standard Council
c. the beginning of the first PFRS reporting period. C. Philippine Accounting Standards Board
d. the end of the first PFRS reporting period. D. Financial Reporting Standard Council

4.) The statement of financial position of ABC Co. as of 9.) Generally accepted accounting principles
January 1, 20x4 included an allowance for bad debts A. Are accounting principles based on law
computed using the “aging of accounts receivable” B. Derive their credibility and authority from law
method. The “over 120 days” category in the aging C. Derive their authority and credibility from regulatory
schedule included a ₱200,000 receivable which was authority
actually written off on January 5, 20x4 (the 20x3 financial D. Derive their credibility and authority from recognition
statements were authorized for issue on March 1, 20x4). and acceptance by the accountancy profession.
ABC Co. could not have foreseen this event on
December 31, 20x3. Does ABC Co. need to 10.) Financial statements prepared in accordance with
revise its previous estimate of bad debts as of PFRSs are said to be the entity's "First PFRS financial
January 1, 20x4 (date of transition) on December statements" if the previous financial statements
31, 20x5 (end of first PFRS reporting period)? A. Were prepared in accordance with other reporting
a. No. The receipt of the information on January standards not consistent with the PFRSs.
5, 20x4 is accounted for prospectively as a non- B. Did not contain an explicit and unreserved statement of
adjusting event after the reporting period. compliance with PFRSs.
b. Yes. The receipt of the information on January C. Contained an explicit and unreserved statement of
5, 20x4 is accounted for retrospectively as an compliance with some, but not all, PFRSs.
adjusting event after the reporting period. D. Were prepared using some, but not all, applicable
c. No. The event should be ignored because it is within PFRSs.
the scope of the previous GAAP and not the PFRSs. E. Any of these.
d. Yes. Although, PFRS 1 does not require the
adjustment, other PFRSs do. 11.) Which of the following does IFRS 1 require an entity
to do in the opening IFRS statement of financial position
5.) Under PFRS 1, the early application of PFRSs that that it prepares as a starting point for its accounting under
have not yet become effective as of the current reporting IFRSs?
period A. Recognize all assets and liabilities whose recognition
a. is required is required by IFRSs
b. is permitted, but not required. B. Not recognize items as assets or liabilities if IFRSs do
c. is required, but not permitted. not permit such recognition
d. is prohibited. C. Reclassify items that it recognized under previous
GAAP as one type of asset, liability or component of
6.) PFRS 1 requires a first time adopter to do which of the equity, but are a different type of asset, liability or
following in the opening PFRS statement of financial component of equity under IFRSs
position? D. Apply IFRSs in measuring all recognized assets and
a. Recognize all assets and liabilities whose recognition liabilities
is required by PFRSs. E. All of the above
F. A and C
12.) An entity’s first IFRS financial statements shall d. Early application of PFRSs that have not yet become
include at least __________, __________, two effective as of the current reporting period is
separate statements of profit or loss (if presented), two permitted not required
statements of cash flows, two statements of
changes in equity and ____________, including 17.) Which of the following statements is incorrect
comparative information for all statements presented. regarding the provisions of PAS 1?
A. Three statements of profit or loss and other A. An entity is required to present separate sections of
comprehensive income; two statements of financial profit or loss and other comprehensive income.
position; related notes B. Presenting an income statement or statement of profit
B. Two statements of financial position; two statements of or loss in addition to a statement of other comprehensive
profit or loss and other comprehensive income; two sets income is permitted when an entity elects to use the "two-
of related notes statement presentation.
C. Three statements of financial position; two statements C. Presenting an income statement or statement of profit
of profit or loss and other comprehensive income; related or loss alone without a statement of other comprehensive
notes income is allowed.
D. Three statements of financial position; three D. Presenting comprehensive income as a note
statements of profit or loss and other comprehensive disclosure only is prohibited.
income; two sets of related notes
18.) Retrospective application under PFRS 1 requires
13). Which of the following statements is true regarding restating assets and liabilities in the opening statement
the requirements of IFRS 1? of financial position in order to conform with PFRSs. The
A. An entity shall apply different versions of IFRSs that resulting adjustment are:
were effective at earlier dates A. Recognized directly in retained earnings
B. An entity shall not apply different versions of IFRSs that B. Recognized in profit or loss
were effective at earlier dates C. Recognized directly in other category of equity
C. An entity may apply a new IFRS that is not yet D. A or C
mandatory if that IFRS permits early application
D. An entity may not apply a new IFRS that is not yet PFRS 2
mandatory if that IFRS permits early application 1.) Many shares and most share options are not traded in
E. B and D an active market. Therefore, it is often difficult to arrive at
a fair value of the equity instruments being issued. Which
14.) The explicit and unreserved statement of compliance of the following option valuation techniques should
with PFRSs required under PFRS 1 is presented not be used as a measure of fair value in the first
A. On the face of the opening statement of financial instance?
statements a. Black-Scholes model.
B. On the face of all of the financial statements b. Binomial model.
C. In the notes c. Monte-Carlo model.
D. All of these d. Intrinsic value.

15.) The date to transition to PFRSs is 2.) Elizabeth, a public limited company, has granted 100
a. the beginning of the earliest period for which an share appreciation rights to each of its 1,000 employees
entity presents full comparative information under in January 20X4. The management feels that as of
PFRSs in its first PFRS financial statements. December 31, 20X4, 90% of the awards will vest on
b. the end of the earliest period for which an entity December 31, 20X6. The fair value of each share
presents full comparative information under PFRSs in appreciation right on December 31, 20X4, is P10. What is
its first PFRS financial statements. the fair value of the liability to be recorded in the financial
c. the beginning of the first PFRS reporting period. statements for the year ended December 31, 20X4?
d. the end of the first PFRS reporting period. a. P300,000
b. P10 million
16.) Which of the following statement is incorrect c. P100,000
regarding provisions of PFRS 1? d. P90,000
a. The first time adopter shall select its accounting policies
based on the latest version of PFRSs as at the current DEC 31 20X4 = 1000 (100 000 X 90% ) x P10 x 1/3
reporting date DEC 31, 20X5 = -
b. Accounting policies based on the latest version of DEC 31, 20X6 = -
PFRSs are applied to the current period financial 100 X 1000 = TOTAL SHARE OPTIONS GRANTED
statement while those based on earlier versions of PFRSs
are applied to the comparative financial statement 3.) On January 1, 20x1, JP CO. agreed to issue 5000
c. The selected policies are applied to all financial shares to Rock Company in exchange for construction of
statements presented together with the first PFRS a building. Ownership of the building was transferred on
financial statements November 30, 2021. However, the contract price was
settled on January 01, 20x2. At which date should JP Co a fair value of P35, an option price of P30 and a par value
recognize the acquisition of building? of P25. By December 31, 20x1, 10 employees have left
A. January 01, 20x1 the entity and according to a weighted average
B. November 30, 20x1 probability, 10 more employees will most likely leave
C. January 01, 20x2 during the in 20x2. How much compensation expense
D. November 30, 20x2 should the entity recognize on December 31, 20x1?
A. 886,666.67
4.) On January 01, 20x1, Gen Co. grants 10,000 share B. 720,000
option to its employees. The share option entitles the C. 840,000
employees to purchase Gen Co.'s shares at PHP 110 per D. 2,520,000
share. Gen Co.'s shares have a par value of PHP 100 per Dec 31, 20x1
share and a fair value of PHP 120 per share. The share 200- 10= 180 x 400 = 72 000 granted shares
options have fair value of PHP 15 per share. If the Shares (72 000 x P35 x 1 / 3) = 840 00
vest immediately, what amount should be debited as
Salaries Expense on January 01, 20x1? 10.) On January 1, 20x1, ABC Inc. granted 400 share
A. 150,000 options to all its employees (200 employees), conditional
B. 1,000,000 upon the remaining employees in the entity upon a 3-year
C. 1,200,000 vesting period. On the grant date. Each share option has
D. 1,500,000 a fair value of P35, an option price of P30 and a par value
of P25. By December 31, 20x2, the entity decided to
5.) On January 01, 20x1, Gen Co. grants 10,000 share award them early and settled with a cash payment of
option to its employees. The share option entitles the 4,000,000. No employees left the entity during the year
employees to purchase Gen Co.'s shares at PHP 110 per 20x1 and 20x2. How much compensation expense
share. Gen Co.'s shares have a par value of PHP 100 per should the entity recognize?
share and a fair value of PHP 120 per share. The share A. 1,200,000
options have fair value of PHP 15 per share. The shares B. 2,133,333.33
vest immediately and the employees exercised the share C. 1,480,000
option at July 01, 20x1. Which of the following is the D. 1,600,000
correct journal entry at July 01, 20x1
A. Debit to cash of 1,100,000 400 x 200 x 35 = 2 800 000
B. Credit to cash of 1,100,000 4 000 000 – 2 800 000= 1 200 000
C. Debit to share premium of 150,000
D. Credit to share capital of 150,000 11.) An accounting standard that governs Share-based
payments
6.) Which of the following statements is incorrect? A. IFRS 3
A. When share option vests immediately, total B. IFRS 2
compensation expense is recognized in full C. IFRS 6
B. When share option do not vest immediately, total D. None of these
compensation expense is recognized in full
C. When share option vests immediately, there is no 12.) It is a transaction in which the entity acquires goods
vesting period to complete or services and pays for them by issuing its own equity
D. When share option do not vest immediately, there is a instruments or cash based on the value of its equity
required vesting period to complete. instruments.
A. Share-based payment transaction
7.) Which of the following is true about the Fair Value B. Cash-settled share based transaction
Method? C. both are correct
A. It is only computed annually D. none are correct
B. It is mandated by IFRS 2
C. measures the fair value of options at the date of 13.) A share based payment transaction is one which an
purchase entity receives goods or services and pays for them
D. None of these A. By issuing its own equity instruments
B. Through cash but the amount is based on the FV of the
8.) What are the two measurement methods of share entity or the supplier of the goods or services
options? C. A share-based payment is a transaction in which the
A. Fair value and Initial value entity receives goods or services either as consideration
B. Fair value and Appraisal value for its equity instruments or by incurring liabilities for
C. Fair value and Intrinsic value amounts based on the price of the entity's shares or other
equity instruments of the entity.
9.) On January 1, 20x1, ABC Inc. granted 400 share D. Any of these
options to all its employees (200 employees), conditional
upon the remaining employees in the entity upon a 3-year
vesting period. On the grant date. Each share option has
14. Which of the following is excluded from the scope of 6.) For each business combination, one of the combining
PFRS 2? entities shall be identified as the __________.
A. Employee share option plans A. Entity that has joint control
B. Employee share appreciation rights B. Controlling entity
C. Purchase of goods from an unrelated party in C. Acquirer
exchange for an entity’s own shares of stock D. Combined entity
D. Transfer of equity instrument as consideration for
business combination 7.) Which of the following agrees with PFRS 3 regarding
the recognition of costs that the acquirer expects but is
PFRS 3 not obliged to incur in the future to effect its plan to exit an
1.) The “excess of the acquirer’s interest in the net activity of an acquiree?
fair value of acquiree’s identifiable assets, liabilities, A. The acquirer shall recognize these costs as part of
and contingent liabilities over cost” (formerly known as applying the acquisition method
negative goodwill) should be B. The acquirer shall not recognizes these costs in its
a. Amortized over the life of the assets acquired. post-combination financial statements in accordance with
b. Reassessed as to the accuracy of its measurement and other IFRSs
then recognized immediately in profit or loss. C. The acquirer shall not recognize these costs as part of
c. Reassessed as to the accuracy of its measurement and applying the acquisition method
then recognized in retained earnings. D. The acquirer shall never recognizes these costs
d. Carried as a capital reserve indefinitely.
8.) At the acquisition date, the acquirer shall __________
2.) The acquisition date is the identifiable assets acquired and liabilities
a. the date on which the acquirer obtains control of the assumed as necessary to apply other IFRSs
acquiree. subsequently.
b. the opening date. A. Revaluate or classify
c. the date the acquirer transfers to the acquiree the B. Classify or designate
consideration in a business combination. C. Dispose or transfer
d. any of these D. Transfer or designate

3.) On January 1, 20x1, ABC Co. acquired 60% interest in 9.) Which of the following is not an example of
XYZ, Inc. for ₱2,000,000 cash. ABC Co. incurred classifications or designations that the acquirer shall
transaction costs of ₱100,000 in the business make on the basis of the pertinent conditions as they exist
combination. ABC Co. elected to measure NCI at the at the acquisition date?
NCI’s proportionate share in XYZ, Inc.’s identifiable net A. Classification of a contract as an insurance contract in
assets. The fair values of XYZ’s identifiable assets and accordance with IFRS 4 Insurance Contracts
liabilities at the acquisition date were ₱6,000,000 and B. Designation of a derivative instrument as a hedging
₱3,500,000, respectively. How much is the goodwill (gain instrument in accordance with IFRS 9
on a bargain purchase)? C. Classification of a lease contract as either an operating
a. 500,000 lease or a finance lease in accordance with IAS 17 Leases
b. 478,000 D. A and C
c. (500,000) E. All of the above
d. (478,000)
10.) The acquirer shall measure the identifiable assets
4.) Which of the following areas does IFRS 3 apply to? acquired and the liabilities assumed at their:
A) The accounting for the formation of a joint arrangement A. Acquisition-date fair values
in the financial statements of the joint arrangement itself B. Acquisition-date historical cost
B) The acquisition of an asset or a group of assets that C. Reporting-date net book value
does not constitute a business D. Reporting-date present value
C) A combination of entities or businesses under common
control 11). Which of the ff. method must be applied in accounting
D) None of the above for business combination under PFRS 3?
E) A and B A. Acquirer method
B. Acquisition method
5.) If the assets acquired are not a business, the reporting C. Purchase method
entity shall account for the transaction or other D. Pooling method
event as __________.
A. A non-controlling interest 12.) The company that obtains control over another
B. An asset acquisition company in a business combination transaction is
C. An adjusting event referred
D. A business combination to as the
A. Acquirer
B. Patent
C. Subsidiary c. only when they qualify as held for sale assets under
D. A and B PFRS 5.
d. never presented as current items.
13.) According to PFRS 3, which of the following
transaction costs would increase the amount of goodwill 7.) The qualification of an asset to be classified as held for
from a business combination? sale after the reporting period but before the financial
a. Legal fees, accounting fees, and similar cost statements are authorized for issue
b. Issuance cost of equity securities a. is a non-adjusting event after the reporting period.
c. Issuance costs of debt instruments b. is an adjusting event after the reporting period.
d. None of these c. is an extraordinary item.
d. a or b
PFRS 5
1.) The results of a discontinued operations are presented 8.) A noncurrent asset classified as held for sale in
in the statement of profit or loss accordance with PFRS 5 has not been sold after a year.
a. before the profit or loss from continuing operations but The asset shall continue to be presented as held for sale
after the profit for the year. under PFRS 5 if
b. after the profit or loss from continuing operations but a. the delay is due to events beyond the entity's control.
before the profit for the year. b. the entity remains committed to its plan to sell the asset.
c. separately from the profit or loss from continuing c. the noncurrent asset is actually sold after the reporting
operations and it does not affect the profit for the year. period but before the financial statements were
d. as an adjustment to the beginning balance of the authorized for issue.
retained earnings. d. a and b

2.) Which of the following is included in profit from 9.) According to PFRS 5, gain on impairment reversal on
continuing operations? an asset held for sale is
a. extraordinary items a. recognized for the fair value change during the period.
b. discontinued operations b. recognized in other comprehensive income.
c. other comprehensive income c. recognized only to the extent of cumulative impairment
d. income tax expense losses previously recognized.
d. not recognized.
3.) According to PFRS 5, held for sale classification is
permitted when 10.) The results of discontinued operations are presented
A. the noncurrent asset or disposal group is available for separately in the statement of profit or loss and other
immediate sale in its present condition. comprehensive income
B. the sale is highly probable. A. as a single amount gross of tax.
C. a and b B. As a single amount net of tax.
D. the sale actually occurred after the reporting period but C. as part of the regular line items.
before the financial statements were D. a or b
authorized for issue.
11.) The statement of profit or loss includes which of the
4.) According to PFRS 5, assets held for sale are following?
measured at a. Revenue, cost of goods sold, distribution costs, general
a. fair value and administrative expenses and extraordinary items.
b. fair value less costs to sell. b. Discontinued operations.
c. carrying amount. c. Gains and losses arising from treasury share
d. Lower of b and e transactions.
d. Other comprehensive income.
5.) According to PFRS 5, a disposal group may qualify as
discontinued operation if 12.) Assets that are classified as held for sale under PFRS
A. it is a component of an entity. 5 are
B. it meets the held for sale classification criteria. a. required under PAS 36 to be tested for impairment
C. a and b annually.
D. none of these b. amortized over a period not exceeding 5 years.
c. depreciated.
6.) Non-current assets are presented as statement of d. not depreciated.
financial position
a. only when they are expected to be sold within 12 13.) According to PFRS 5, gains and losses on
months from the end of reporting period. remeasurement of assets held for sale are
b. only if they are actually sold after the reporting period a. recognized in profit or loss
but before the date of authorization of the financial b. recognized in other comprehensive income.
statements for issue. c. recognized only for impairment losses
d. not recognized.
14.) Which of the following statements is true regarding feasibility and commercial viability of extracting the
the accounting treatment of costs to sell under PFRS 5? mineral resource
a. Costs to sell are added to the fair value when c. The search for mineral resources before the entity has
determining the measurement basis for an asset held for obtained a legal rights to explore in a specific area up to
sale. the date when mineral resources are actually confirmed
b. Costs to sell are never discounted because held for to exist in the area
sale assets should be sold within one year d. The search for mineral resources before the entity has
c. Costs to sell are discounted if it is expected that the sale obtained a legal rights to explore in a specific area up to
will be made beyond one year the date when the commercial operations begins
d. a and c
6.) According to PFRS 6 Exploration for an Evaluation of
15.) According to PFRS 5, the assets and liabilities of a Mineral Resources, an entity may change its accounting
disposal group are presented policies for exploration and evaluation expenditures if
a. as one line item in either current assets or current a. The change makes the financial statements more
liabilities. relevant and more reliable
b. as one line item in either noncurrent assets or b. Other PFRSs do not prohibit the change
noncurrent liabilities. c. The change makes the financial statements more
c. separately on the face of the statement of financial relevant and no less reliable, or more reliable and no less
position. relevant.
d. a or b d. a or b

PFRS 6 7.) According to PFRS 6 expenditures on exploration for

1.) Which of the following is not a requirement of IFRS 6? and evaluation of mineral resources are recognized as
A. To improve the existing accounting practices for a. assets
exploration and evaluation expenditures b. expenses
B. To measure any impairment of exploration and c. a or b depending on the entity’s accounting policy
evaluation assets in accordance with IAS 36 d. not accounted for
Impairment of Assets
C. To disclose the information that identifies and explains 8.) According to PFRS 6, how are exploration and
the amounts in the entity’s financial statements arising evaluation asset measured?
from the utilization of mineral resources a. cost (initial) and cost model (subsequent)
D. None of the above b. cost (initial) and cost model (subsequent)
c. cost (initial) and cost model or revaluation model
2.) An entity shall apply IFRS 6 to exploration and (subsequent)
evaluation __________ that it incurs. d. fair value (initial) and fair value through P/L
A. Income (subsequent)
B. Expenditures
C. Cash flows PFRS 7
D. Liabilities 1.) Mark Ngina’s Sari-sari Store has a sign that reads
“Your credit is good but I need cash.” What type of risk is
3.) According to IFRS 6, how shall exploration and Mr. Mark trying to avoid by putting up that sign?
evaluation assets be measured? a. credit risk
A. At present value b. market risk
B. At cost c. liquidity risk
C. At amortized cost d. store risk
D. At fair value
2.) How does PFRS 7 define “liquidity risk”?
4.) According to IFRS 6, an entity may classify its a. The risk that an entity will encounter difficulty in meeting
exploration and evaluation assets as … obligations associated with financial liabilities.
A. Tangible b. The risk that an entity will encounter difficulty in
B. Intangible disposing a financial asset due to lack of market liquidity.
C. Current c. The risk that an entity will encounter difficulty in meeting
D. Either A or B cash flow needs due to cash flow problems.
d. The risk that an entity's cash inflows will not be
5.) Exploration for and evaluation of mineral resources sufficient to mat the entity's cash outflows. (Adapted)
a. The search for mineral resources after the entity has
obtained legal rights to explore in a specific area 3.) PFRS 7 requires the disclosure of the significance of
b. The search for mineral resources, including minerals, financial instruments to the entity’s financial position and
oils, natural gas and similar non regenerative resources performance which of the following is not included in this
AFTER the entity has obtained legal rights to explore in a disclosure?
specific area, as well as the determination of the technical
a. Disclosure of fair values of financial instruments in a c. at least 10% of total assets (inclusive of intersegment
way that the fair value can be compared with the carrying receivables).
amount of the financial instrument. d. at least 10% of total revenues (external only)
b. The carrying amounts of the various categories of
financial instruments. 3.) According to PFRS 8, disclosures for major
c. Information on any reclassification between categories customer shall be provided if revenues from
of financial instruments. transactions with a single external customer amount to
d. Information on financial instruments arising from a. at least 75% of the entity’s external and internal
employee benefit plans and share-based revenues.
b. at least 75% of the entity’s external revenues.
4.) PFRS 7 requires the disclosure of the nature and c. 10% or more of the entity’s external revenues.
extent of risks arising from financial instruments. d. less than 10% of the entity’s external revenues.
Which of the following is not included in this disclosure?
a. Qualitative and quantitative information about credit PFRS 9
risk 1.) A period, an entity acquires an investment. The entity
b. Qualitative and quantitative information about liquidity has a "hold to collect and sell" business model. The
risk. investment should be classified as
c. Qualitative and quantitative information about market A. Investment measured at fair value through other
risk. comprehensive income.
d. Qualitative and quantitative information about B. Investment measured at amortized cost.
operational risk. C. Investment measured at fair value through profit or loss
D. Any of these.
5.) PFRS 7 addresses which of the following?
a. The presentation of financial instruments as financial 2.) If an entity's business model's objective is to hold
assets, financial liabilities or equity instruments. investments in order to collect contractual cash flow that
b. The recognition and measurements of financial are solely payments for principal and interests, then
instruments investments should be classified as
c. The disclosures about the significance of financial A. Investment measured at fair value through other
instruments to the entity's financial position and comprehensive income.
performance and the nature and extent of risks arising B. Investment measured at amortized cost.
from financial instruments to which the entity is exposed, C. Investment measured at fair value through profit or
and how the entity manages those risks. loss.
d. All of these D. Any of these.

6.) Which of the following properly describes credit risk? 3.) A permanent decline in the fair value of an investment
a. The possibility that Entity A will not be able to settle its in equity securities that the entity made an irrevocable
financial liabilities when they become due. election at initial recognition to subsequently measure at
b. The possibility that Entity A will incur loss on its foreign- FVOCI is recognized in
currency denominated financial instruments when there is A. Profit or loss
an adverse change in foreign exchange rates. B. Other comprehensive income
c. The possibility that Entity A cannot collect on its C. Either a or b
receivables. D. Not recognized.
d. The possibility that Entity A will be required to pay
higher interest on its variable-rate loan when 4.) Boss Co. Purchased bonds at a dicount in the open
market interest rates increase. market as an investment. The bond will be held in order
to collect their contractual cash flows. Boss should
PFRS 8 account for these bonds at
1.) According to PFRS 8, a reportable operating segment A. Cost.
is one which B. Amortized cost.
a. management uses in making decisions about operating C. Fair value through OCI
matters. D. Lower of cost or market.
b. results from aggregation of two or more segments and
qualify under any of the quantitative thresholds. 5.) According to PFRS 9, on initial recognition, the entity
c. a and b has the option of designating financial assets to be
d. none of these measured at FVPI.
A. If doing so enhances the qualitative characteristic of
2.) Which of the following is not among the quantitative financial information presented in the
thresholds under PFRS 8? financial statements.
a. at least 10% of total revenues (external and internal). B. If doing so significantly reduces or eliminates
b. at least 10% of the higher of total profits of segments "accounting mismatch."
reporting profits and total losses of segments reporting C. If it is required by "shadow accounting."
losses, in absolute amount D. At the entity's management's absolute discretion
MEASUREMENT
6.) Which of the following financial assets are measured
at fair value through profit or loss?
A. Held for trading securities
B. Designated financial assets
C. Trade receivables
D. a and b

7.) According to PFRS 9, it is the amount at which a

financial asset or a financial liability is measured at
initial recognition minus principal repayments, plus
or minus the cumulative amortization using the
effective interest method of any difference between
that initial amount and the maturity amount and, for
financial assets adjusted for any loss allowance.
a. cost
b. carrying amount
c. amortized cost
d. fair value

8.) Which of the following is measured at fair value with

fair value changes recognized in profit or loss?
a. Held to maturity investments
b. Financial assets designated at FVPL
c. FVOCI
d. All of these

9.) If the entity’s business model’s objective is to

hold assets in order to collect contractual cash flows
and cash flows are solely payments of principal and
interest on the principal amount outstanding, the financial
asset is classified
a. according to management’s intention of holding the
securities.
b. as financial asset measured at amortized cost.
c. as financial asset measured at fair value through other
comprehensive income.
d. any of these