Evaluated CFAs Revision Questions

Evaluated CFAs Revision Questions Which statement is incorrect regarding the Conceptual Framework for Financial Reporting? A. Describes the objective of, and the concepts for, general purpose financial reporting B. Serves as a guide in developing future PFRSs and as a guide to resolving accounting issues that are not addressed directly in existing PFRSs C. Is not a PFRS and hence does not define standards for any particular measurement or disclosure nature D. Prevails in cases where there is conflict with a PFRS - CORRECT ANSWER-D. Which is not a specific purpose of the Conceptual Framework? A. To assist FRSC in the development of future Philippine Financial Reporting Standard (PFRSs) and in its review of existing PFRSs B. To assist users of financial statements in interpreting information contained in financial statements C. Provide those who are interested in the work of FRSC with information about its approach to the formulation of PFRSs D. To assist the BOA in promulgating rules and regulations affecting the practice of accountancy in the Philippines - CORRECT ANSWER-C. How is the Conceptual Framework useful to auditors? A. By assisting in forming an opinion as to whether financial statements conform to PFRSs B. By assisting in promoting harmonization of regulations, accounting standards and procedures relating to the presentation of financial statements by providing a basis for reducing the number of alternative accounting treatments permitted by PFRSs C. By assisting in applying the accounting standards D. By assisting in interpreting the information contained in financial statements prepared in conformity with PFRSs - CORRECT ANSWER-A. Which of the following remained unchanged in the 2018 Conceptual Framework? A. The reporting entity B. Derecognition