PFRS for Cooperatives Quiz

•   A cooperative recognizes an impairment loss relating to non-financial assets that are in use or held for sale.   

  True
• A cooperative measures inventories at the lower of cost and selling price less costs to complete and sell  

  True
• Recognition is the process of incorporating in the financial statements an item that meets the definition of an asset, liability, income or expense  

  True
•  An essential characteristic of a liability is that the cooperative has a present obligation to act or perform in a particular way.  

  True
• Allowance for probable losses on receivables shall not be based on the past due amount using portfolio at risk for purposes of prudence in financial reporting  

  True
• The recognition of expenses results directly from the recognition and measurement of assets and liabilities  

  True
• At initial recognition, a cooperative shall measure assets and liabilities at fair value unless this framework requires initial measurement on another basis such as fair value.   

  False
•   A cooperative shall not recognize a contingent asset as an asset

  True
•  Income are decreases in economic benefits during the reporting period in the form of outflows or depletions of assets or incurrence of liabilities that result in decreases in equity, other than those relating to distributions to equity investors. 

  False
•  A contingent liability is either a possible but uncertain obligation or a future obligation that is not recognized because it fails to meet one or both of the conditions.

  True
•  Financial Condition is the relationship of the income and expenses of a cooperative during a reporting period.  

  False
•   Unless expressly allowed in this framework, a cooperative shall prepare its financial statements, except for cash flow information, using the accrual basis of accounting.  

  True
•  Expenses are increases in economic benefits during the reporting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from members and donations.   

  False
•   A cooperative shall recognize expense in the statement of operations when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be measured reliably.  True
•   Gains are other items that meet the definition of income but are not revenue.  

  True