CFAS Focus: PAS 1 (Presentation) & PAS 7 (Cash Flows)
PAS 1 (Presentation of Financial Statements) - correct answer ✔✔Prescribes the basis for the
presentation of general purpose FS, the guidelines for their structure, and the minimum requirements
for their content to ensure comparability.
Intra-comparability (Horizontal or Inter-period) - correct answer ✔✔Refers to the comparability of FS of
the same entity but from different periods.
Inter-comparability (dimensional) - correct answer ✔✔Refers to the comparability of FS between
different entities.
Notes - correct answer ✔✔Provides information in addition to those presented in other FS.
Total Comprehensive Income - correct answer ✔✔The change in equity during a period resulting from
transactions and other events, other than those changes resulting from transactions with owners in their
capacity as owners. "Profit/Loss + Other comprehensive income
Reclassification Adjustments - correct answer ✔✔Amounts reclassified to profit or loss in the current
period that were recognized in other comprehensive income in the current or previous periods.
Nature of Expense Method - correct answer ✔✔Expenses are aggregated according to their nature and
are not reallocated according to their functions within entity.
Function of Expense Method - correct answer ✔✔An entity classifies expenses according to their
function.
Other Comprehensive Income - correct answer ✔✔comprises items of income and expenses including
reclassification adjustments that are not recognized in profit or loss as required or permitted by other
PFRSs.
Profit or Loss - correct answer ✔✔Income less expenses, excluding the components of other
comprehensive income.
, Transaction Approach - correct answer ✔✔Method of computing for profit or loss.
Refinancing - correct answer ✔✔The replacement of an existing debt with a new obligation but with
different terms. It is often done following periods of high interest rates. Normally entails a fee or penalty.
Troubled debt restructuring - correct answer ✔✔A refinancing where the debtor is under financial
distress.
Loan Facility - correct answer ✔✔Refers to a credit line.
Operating cycle - correct answer ✔✔The time between the acquisition of assets for processing and their
realization in cash or cash equivalents.
Working Capital - correct answer ✔✔current assets - current liabilities
Classified presentation - correct answer ✔✔Shows distinctions between current and noncurrent assets
and current and noncurrent liabilities.
Unclassified presentation (Based on Liquidity) - correct answer ✔✔Shows no distinction between
current and non-current items
Management - correct answer ✔✔Responsible for an entity's financial statements.
Fair presentation - correct answer ✔✔Faithfully representing the effects of the transactions and other
events in accordance with the definitions and recognition criteria for assets, liabilities, revenues, and
expenses.
Relevant Regulatory Framework - correct answer ✔✔Refers to the accounting principles and other
financial reporting requirements prescribed by a government regulatory body.
PAS 1 (Presentation of Financial Statements) - correct answer ✔✔Prescribes the basis for the
presentation of general purpose FS, the guidelines for their structure, and the minimum requirements
for their content to ensure comparability.
Intra-comparability (Horizontal or Inter-period) - correct answer ✔✔Refers to the comparability of FS of
the same entity but from different periods.
Inter-comparability (dimensional) - correct answer ✔✔Refers to the comparability of FS between
different entities.
Notes - correct answer ✔✔Provides information in addition to those presented in other FS.
Total Comprehensive Income - correct answer ✔✔The change in equity during a period resulting from
transactions and other events, other than those changes resulting from transactions with owners in their
capacity as owners. "Profit/Loss + Other comprehensive income
Reclassification Adjustments - correct answer ✔✔Amounts reclassified to profit or loss in the current
period that were recognized in other comprehensive income in the current or previous periods.
Nature of Expense Method - correct answer ✔✔Expenses are aggregated according to their nature and
are not reallocated according to their functions within entity.
Function of Expense Method - correct answer ✔✔An entity classifies expenses according to their
function.
Other Comprehensive Income - correct answer ✔✔comprises items of income and expenses including
reclassification adjustments that are not recognized in profit or loss as required or permitted by other
PFRSs.
Profit or Loss - correct answer ✔✔Income less expenses, excluding the components of other
comprehensive income.
, Transaction Approach - correct answer ✔✔Method of computing for profit or loss.
Refinancing - correct answer ✔✔The replacement of an existing debt with a new obligation but with
different terms. It is often done following periods of high interest rates. Normally entails a fee or penalty.
Troubled debt restructuring - correct answer ✔✔A refinancing where the debtor is under financial
distress.
Loan Facility - correct answer ✔✔Refers to a credit line.
Operating cycle - correct answer ✔✔The time between the acquisition of assets for processing and their
realization in cash or cash equivalents.
Working Capital - correct answer ✔✔current assets - current liabilities
Classified presentation - correct answer ✔✔Shows distinctions between current and noncurrent assets
and current and noncurrent liabilities.
Unclassified presentation (Based on Liquidity) - correct answer ✔✔Shows no distinction between
current and non-current items
Management - correct answer ✔✔Responsible for an entity's financial statements.
Fair presentation - correct answer ✔✔Faithfully representing the effects of the transactions and other
events in accordance with the definitions and recognition criteria for assets, liabilities, revenues, and
expenses.
Relevant Regulatory Framework - correct answer ✔✔Refers to the accounting principles and other
financial reporting requirements prescribed by a government regulatory body.
