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Assigned Activities From IM 1

1. The document provides identification questions to test knowledge of accounting standards and concepts. It asks to identify the standard setting bodies that issue international and US accounting standards, define accounting and other accounting terms, and arrange statements in the correct sequence. 2. The second part provides true or false statements to test understanding of the conceptual framework. It asks to identify whether statements about the conceptual framework's purpose and application are true or false. 3. The document aims to assess understanding of key accounting standards, standard setting bodies, and the conceptual framework which guides the development of accounting standards.

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Marcus Monocay
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73 views

Assigned Activities From IM 1

1. The document provides identification questions to test knowledge of accounting standards and concepts. It asks to identify the standard setting bodies that issue international and US accounting standards, define accounting and other accounting terms, and arrange statements in the correct sequence. 2. The second part provides true or false statements to test understanding of the conceptual framework. It asks to identify whether statements about the conceptual framework's purpose and application are true or false. 3. The document aims to assess understanding of key accounting standards, standard setting bodies, and the conceptual framework which guides the development of accounting standards.

Uploaded by

Marcus Monocay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A.

Identification -Write the word(s) best described by the statements below:


Instructions : Write your answer before the number.
International Accounting Standards Board 1. The standard-setting body who issues
the International Financial Reporting Standards
Financial Accounting Standards Board 2. The standard-setting organization who
issues the U.S. GAAP
Accounting 3. The process of identifying, measuring, and communicating economic
information to permit informed judgment and decision by users of the information.
Philippine Interpretations Committee 4. This was created to issue implementing
guidelines on PFRS.
Liquidity 5.The amount of time that is expected to elapse until an asset is realized or
otherwise converted into cash
Balance sheet 6.The financial report that shows the reporting entity’s economic
resources and claims
7.The financial report that shows the changes due to events and transactions other
than financial performance such as the issue of equity instruments and distributions
of cash or other assets to shareholders
Historical Cost 8.This is used when assets are recorded at the amount of cash or cash
equivalents or the fair value of the consideration given to acquire them at the time
of their acquisition.
9.Refers to the ability of the business to raise cash to meet unexpected cash
requirements.
10.Those responsible for the preparation and presentation of financial statements.
11.The standard that sets out the requirements for the presentation of the cash flow
statement and related disclosures.
12.Portray the financial effects of transactions and other events by grouping them
into broad classes according to their economic characteristics.
13.Result if an asset is sold more than book value.
14.One of its recognition criteria is that it is probable that the future economic
events will flow to the enterprise.
15.Under this concept a profit is earned only if the physical productive capacity (or
operating capability) of the entity (or the resources or funds needed to achieve that
capacity) at the end of the period exceeds the physical productive capacity at the
beginning of the period, after excluding any distributions to, and contributions from,
owners during the period

Sequencing -Arrange the following according to the correct sequence.


A. IASB Due Process1.An exposure draft, which is IASB’s main vehicle for consulting
the public, is published for public comment.
2.All comments received on discussion document and exposure draft are considered.
3.Topics are identified and placed on IASB’s agenda.
4.After the due process is completed, all outstanding issues are resolved, and the
IASB members have balloted in favor of publication, the IFRS is issued.
5.After comments on the first exposure draft have been affected, the IASB considers
whether to publish its revised proposals for another round of comments.
B. FRSC Due Process
1.Approval of a standard or an interpretation by a majority of the FRSC members.
2.Consideration of pronouncement of IASB.
3.Consideration of all comments received within the comment period and, when
appropriate, preparing a comment letter to the IASB.
4.An exposure draft approved by a majority of the FRSC members for comments
(comment period 60 –30 days)
E. True or False: Write A if the statement is correct or B if incorrect. UNDERLINE the
word or group of words that make the statements incorrect.

1.The principal difference between two concepts of capital maintenance is the


treatment of the effects of changes in the prices of assets and liability of the entity.
2.The selection of the appropriate concept of capital by an entity should be based on
the needs of the users of its financial statements.
3.The concept of capital maintenance chosen by an entity shall determine the
accounting model used in the preparation of its financial statements.
4.The Conceptual Framework serves as a guide in developing future financial
reporting standards and in reviewing existing ones.
5.The Conceptual Framework is a source of guidance for determining an accounting
treatment where a standard does not provide specific guidance.
6.The Conceptual Framework does not in any was assist prepares of financial
statements in applying PFRS and in dealing with topics that have yet to form the
subject of PFRS.
7.The Conceptual Framework is not a PFRS, and nothing in it overrides any specific
PFRS, including PFRS that is in some respect in conflict with the Conceptual
Framework.
8.The GPFS show the results of the stewardship of the management for the
resources entrusted to it by the capital providers.
9.The GPFS are prepared at least annually and are directed to both the common and
specific information needs of a wide range of statement users.
10.The GPFS provide information about the financial position, performance and cash
flows of an enterprise that is useful to a wide range of users in making economic
decisions.

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