Final answer:
The statement is true; an entity should declare compliance with the PFRS in the notes of its financial statements only if it has adhered to all the PFRS requirements according to PAS 1.
Step-by-step explanation:
The question refers to the compliance with the Philippine Financial Reporting Standards (PFRS) and the requirements for an entity to make an explicit and unreserved statement of this compliance in its financial statements. According to PAS 1, an entity should only make such a statement if it has complied with all the requirements of the PFRS. Therefore, the statement that an entity shall make an explicit and unreserved statement of compliance with the PFRSs in the notes only if the entity complies with all the requirements of PFRSs is true.