Chapter 1 | SOFP

Question 1

Structured representation of an entity’s financial position and results of its operations.

Answer 1

Financial statements

Question 2

Intended to meet the needs of users who are not in the position to require an entity to prepare reports tailored to their needs.

Answer 2

General purpose financial statements (financial statements)

Question 3

Cater most common needs of a wide range of external users.

Answer 3

General purpose financial statements

Question 4

Subject matter of Conceptual Framework and PFRSs.

Answer 4

General purpose financial statements

Question 5

Purpose of financial statements: (2)

Answer 5

1. Primary objective: Provide info about financial position, financial performance, and cash flows of an entity.
2. Secondary objective: Show results of management’s stewardship over an entity’s resources.