ACCOUNTS

Cash

&

Cash Equivalents

Accounts Receivable
(customer's account,
trade debtors)
Notes Receivable

Loan Receivable

Inventories

Biological Assets
Agricultural Produce

Financial Assets
Investment Property
Property, Plant &
Equipment (PPE)

Government Grant

Depreciation
Intangible Asset
Goodwill

Liabilities
Customer Loyalty
Program

Provision

Bond Payable

Note Payable
Lease- Lessee
Lease- Lessor

Deferred Tax Liability

Deferred Tax Asset

Defined Contribution
Plan

Defined Benefit Plan

Short Term Employee
Benefits

Profit-Sharing & Bonus

Plans

Other Long Term Emplo-

yee Benefits

Termination Benefits

Dividend
Share Based
Compensation

Noncurrent Asset
Held For Sale
 RECOGNITION
unrestricted in use
readily available
not subject to any restrictions
(cash on hand, in bank, fund)

short term highly liquid investments

acquired 3 months before maturity
Trade receivables clai
open accounts arising from sale os goods & servi
in the ordinary course of business, no writing

claims supported by formal promises to pay usua

in the form of notes
payable in demand or at a definite date

financial asset arising from a loan

by a bank/other financial institution
to a borrower/client
goods purchased and held for sale in the ordinar
course of the businesss

living animals and living plants

harvested product of biological assets
a. the entity controls the asset as a result of pa
b. it's probable that future ecenomic benefits a
w/ the asset will flow to the entity
c. fair value or cost of the asset can be measure

any asset that is:

a. cash
b. contractual right to receive cash or another f
from another entity
c. contractual right to exchange financial instrum
entity under conditionds that are potentially fav
d. an equity instrument of another entity

land/building or part of a bldg. or both held by a

by the lessee under a finance lease to earn rent
capital appreciation or both
recognized as an asset when & only when:
a. it's probable that the future economic benefi
associated w/ the investment property will flow
b. cost of the investment can be measured reliab
tangible assets that are held for use in producti
of goods/services, for rental to the others, or f
purposes, & are expected to be used over 1 year
recognized when:
a. it is probable that future economic benefits a
w/ the asset will flow to the entity
b. cost of the asset can be measured reliably

Government grant, including nonmone

a. enti
b. grant w
Gov't grant shall n
• related to depreciable asset shall be recognize
over the periods & in proportion to the deprecia
related asset
• related to nondepreciable asset requiring fulfi
certain conditions shall be recognized as income
periods w/c bear the cost meeting the condition
• becomes receivable as compensation for expen
already incurred/for the purpose of giving imme
financial support to the entity w/ no further rel
shall be recognized as income of the period in wh
becomes receivable

cost allocation in recognition of the exhaustion o

life of an item in PPE
begins when the asset is available for use
ceases when the asset is derecognized
discontinued when the asset is held for sale
Physical depreciation › results to the ultimate r
of the property/termination of the service life o
may be caused by:
a. wear & tear due to frequent use
b. passage of time
c. action of the elements (such as wind,sunshine,
d. casualty/accident
e. disease/decay (physical cause is applicable to
wooden buildings)
Funtional/economic depreciation › arises from i
supersession and obsolence
an identifiable nonmonetary asset w/o physical s
recognized when:
a. it is probable that future economic benefits a
to the asset will flow to the entity
b. cost of the intangible aset can be measured re
Judgement, usually exercised in assessing the degree
of the future economic benefits
• Developed goodwill/internal goodwill internally
because of good name, capable staff & personne
quality of products, favorable location & high cre
"internal goodwill is not recognized as an asse
• Purchased goodwil goodwill that has been paid
when a business is purchased. Recognized as an
present obligations arising from past events, the
of w/c is expected to result in an outflow from t
of resources embodying economic benefits
Legal obligation is a consequence of binding cont
statutory requirements.
Constructive obligation, liability arise by reason
business practice, custom & desire to maintain g
relations or act in an equitable manner.
› initially recognized as deferred revenue & sub
recognized as revenue when the awards credit a
› amount of revenue recognized shall be based o
of award credits that have been redeeemed rela
total number expected to b redeemed
› calculation of revenue to be recognized in any
made on "cumulative basis" in order to reflect t
an existing liability of uncertain timing or uncert
recognized as liability when:
a. the entity has a present obligation, legal/cons
a result of past event
b. it is probable that an outflow of resources em
nomic benefits would be required to settle the o
c. amount of the obligation can be measured reli

formal unconditional promise, made under seal, t

fied sum of money at a determinable future date
periodic interest payment at a stated rate until
sum paid

liability supported by a promissory note w/c is a

promise made in writing made my one person to a
by the maker, engaging to pay on demand/ at a f
nable future time a sum certain in money to orde

contract/part of a contract that conveys the rig

underlying asset for a period of time in exchang
consideration
to be a lease, a contract must convey the right t
use of an identified asset
at the commencement date, a lessee shall recog
of use asset and a lease liability
all lease shall be accounted for by the as finance
however, he is permitted to make an acctg policy
apply operating lease ccctg and not recognize an
liability in two optional exemptions:
a. short term lease
b. low value lease
lessor shall recognize lease payments from opera
as income either straight line basis/ another sys
Operating lease is a lease that doesn't transfer
all the risks & rewards incidental to ownnership
lying asset

Deferred tax liability shall be recognized for all

temporary differences. Arises from:
a. acctg income is higher than taxable income be
timing differences
b. CA of an asset is higher than the tax base
c. CA of a liability is lower than the tax base
However, a deferred tax liability is not recogniz
taxable temporary difference arises from:
a. goodwill resulting from a business combination
nondeductible for tax purposes
b. initial recognition of an asset/liability in a t
is not business combination & affects neither ac
nor taxable income
c. undistributed profit of subsidiary, associate/
when the parent, investor/venturer is able to c
of the reversal of the temporary differences
arises from:
a. taxable income is higher than accounting incom
timing differences
b. tax base ofasset is higher than the CA
c. tax base of liability is lower than the CA
shall be recognized for all deductible temporary
operating loss carryforward when it is probable
income will be available against w/c the deferred
can be used
Entity makes specific/definite amountof contrib
separate fund w/o specifying the retirement ben
received by the employee

entitiy's obligation is to provide the agreed ben

the benefit is definite but contribution is indefi
 Accounting for short term em
No requirement to discount future benefit
No possiblit
An entity shall recognize the expect
a. entity has a present leg
b.
A present obligation exis
Recogniton & measurement is same as th
PV of the liabilit
The only difference
All defined benefit cost are r

An entity shall recognize an expense & liability f

benefits at the earlier of the ff dates:
a. When the entity can no longer withdraw the o
nation benefits
b. When the entity recognizes the cost of restr
involves the payment of termination benefits

Liability to pay dividend shall be recognized whe

is appropriately authorized and is no longer at th
the entity, w/c is the date:
a. When the dividend is declared by mgmt/the B
jurisdiction does notrequire further approval.
b. When the declaration of the dividend by mgm
by the relevant authority
Simply stated, dividend liability must be recogn
date of declaration
a. If the share options vest immediately,the em
required to complete a specified period of servic
ditionally entitled to the share options.
In this case, on grant date, the entity shall rec
pensation as expense in full w/ corresponding in
b. If the share options do not vest until the em
a specified service period, the compensation is r
expense over the service period/vesting period,
the date of grant to the date on w/c the options
exercised.
carrying amount of the asset will be recovered p
through a sale transaction rather than continuin
 MEASUREMENT
face value
if in foreign currency @ current exchange
at estimated realizable value if its lower than th
when the bank/financial institution holding
the money is in bankruptcy

om sale of merch./services in the ordinary course of busin

initially @ fair value plus directly attributable tr
subsequently @ amortized cost
short term: face amount
initially @ present value (long-term noninterest-
subsequently @ amortized cost
initially @ face value (long-term interest bearing
face value (short-term)
initially @ fair value plus directly attributable tr
indirect origination costs is an outright expense
subsequently @ amortized cost
lower of cost and net realizable value (LCNRV)

fair value less cost of sell

fair value less cost of sell at the point of harves
gain on initial recognition of bio assets @ FV les
changes in FV less cost to sell of bio assets duri
are included in profit or loss
gain on initial recognition of agricultural produce
to sell are included in profit or loss in w/c it ari
initially at fair value plus, in the case of financia
through P/L, transaction costs that are directly
the acquisition of financial asset.
Financial asset held for trading or @FV through
cost are expensed outright.
subsequenlty at:
a. FV through P/L (FVPL)
b. FV through other comprehensive income (FVO
c. Amortized cost
initially at its cost plus transaction costs
cost of purchased (purchased price + directly at
self-constructed (cost@date construction/deve
deferred payment (cost is cash price equivalent)
subsequently entity shall choose either of the
policy & shall apply to all of the investment pr
a. Fair value model (any changes in FV are include
b. Cost model (cost less accm. dep. and accm imp
FV of the investment property shall b
However, when a property interest held by a lessee u
is an investment property, the FV model shall be appl
 initially at cost
subsequently, shall choose either cost model (co
and any accum impairmen loss) or revaluation m
carrying amount) to an entire class of PPE

t fair value, shall be recognized when there is reasonable a

y w/ the conditions attaching to the grant
ed
ized on a cash basis as this is not consistent w/ GAAP.

1. Equal/uniform charge methods

a. Straigh line
b. Composite method
 c. Group method
2. Variable charge/use-factor/activity methods
a. working hours/service hours
b. output/production method
3. Decreasing charge/accelerated/diminishing ba
a. Sum of year's digits
b. Declining balance method
c. Double declining balance
4. Other methods
a. Inventory/appaisal
b. Retirement method
c. Replacement method

initially at cost
cost depends on:
a. separate acquisition
b. acquisition as part of a business combination
c. acquisition by way of governtment grant
d. acquisition by exchange
e. acquisition by self-creation/internal generat
subsequently either:
1. Cost model (cost less accm depr & any accm im
2. Revaluation model (revalued ammount less any
amortization & any accm impairment loss)
Intangible asset can only be carried at revalued
an active market for the asset.
Residual approach (excess of the purchase price
intangible and idenifiable asset is considered as
Direct approach ( if future earnings exceed nor
excess are indicative fact that there is an unide
asset, such thing is a goodwill)

current liabilities; face amount

noncurrent liabilities, initially at present value,
amortized cost
If the long term note payable is interset bearing
subsequently measured at face amount
fair value of the consideration received with res
shall be allocated between the award credits & t
relative stand-alone price

amount recognized as provision should be the be

that an entity would rationally pay to settle the oblig
ting period/to transfer it to a third party at that tim
required to settle the present obligation
› if single obligation is being measured, the indiv
outcome adjusted for the effect of other possib
th e best estimate
› when there is a continuous range of possible o
in range is as likely as any other, the midpoint of
› involves large population of items, weight all po
by their associated possibilities (expected value
not designated at FV through P/L shall be initia
FV less directly attributable transaction costs, b
is deducted from FV
measured at FV through P/L, bond issue cost is e
subsequently:
a. at amortized cost, using the effective interes
b. at fair value through profit or loss
not designated at FV through P/L shall be initia
FV less directly attributable transaction costs, b
is deducted from FV
if note payable is irrevocably designated at FV
transaction costs are expensed immediately
subsequently:
a. at amortized cost, using the effective interes
b. at fair value through profit or loss if note pay
designated at FV through P/L
initial measurement of right of use of asset
> the lessee shall measure the right of use asset
commencement date
paragraph 24 provides that the cost of right of
a. the amount of initial measurement of the leas
present value of lease payments
b. lease payments made to lessor at or before co
such as lease bonus, less any lease incentives rec
c. initial direct costs incured by the lessee
d. estimate the cost of dismantling, removing an
underlying asset for which the lessee has a pres
Lease incentives should be deducted from the co
use asset
Leasehold improvements, not initial direct costs
the cost of right of use asset. Separately accou
depreciated w/c ever is shorter between the lea
of improvements
Any security deposit refundable upon the lease e
accounted for as an asset by the lessee.
subsequent measurement
lessee shall measure the right of use of asset ap
CA of the right of use asset is adjusted for any
of the lease liability
depreciation of right of use of asset
lessee shall apply normal depreciation policy, can
right of use of asset over the useful life of the
under the ff conditions:
a. lease transfers ownership of the underlying as
at the end of lease term
b. lessee is reasonably certain to exercise a purc
absence of the conditions, lessee shall depreciat
asset over the shorter between the useful life o
lease term
lease liability
present value of lease payments
lease payments, discounted using interest rate im
incremental borrowing rate of the lesse is used
is absent
Depreciation policy for depreciable asset shall b
lessor's normal depreciation for similar asset
Initial indirect cost incurred, is added to the CA
asset & recognized as an expense over the lease
Any security deposit refundable upon the lease e
accounted for as liability by the lessor.
Any lease bonus received by the lessor from the
as unearned rent income to be amortized over th
Deferred tax asset or liability shall be measured
that has been enacted by the end of the reporti
expected to apply to the period when the asseti
liability is settled

can be a fixed amount, a percentage of employer

tage of employee's earnings/combination of thes

discounted basis
Defined benefit cost compon
1. Service cost w/c comprises:
a. current service cost
b. past service cost
c. any gain/loss on settlement
2. Net interest w/c comprises:
a. interest expense on defined benefit liabili
b. interest income on plan assets
3. Remeasurements w/c comprise:
a. actuarial gain/loss
b. actual return on plan assets less interest in
c. any change in the effect of asset ceiling m
 effect of asset ceiling

fits is fairly straightforward,there are no actuarial assump

payable no later than 12 months after the end of the curre
l gain/loss, measured on an undiscounted basis.
rofit sharing & bonus payment when all of the ff conditions
tive obligation to make such payment as a result of past eve
stimate of the obligation can be made
entity has no realistic alternative but to make the paymen
enefit plan. In other words, liability recognized is equal to t
V of the paln assets at the end of reporting period.
gnition of the components of the defined benefit cost.
n P/L & included in the computation of employee benefit ex
a. current service cost
b. past service cost
any gain/loss on settlement
rest expense/net interest income
e. remeasurements
a. If the termination benefits are expected to
within 12 months after the end of reporting pe
termination benefit is recognized, the requireme
employee benefits shall be applied.
"undiscounted amount"
b. If the termination benefits are expected not
within 12 months after the end of reporting pe
ments for other long term employee benefits sh
"discounted amount using the applicabl
Property dividend: FV of the asset to be distrib
: increased/decreased as a r
in FV of the asset at the year end & date of set
Noncash asset distributed: lower of carrying am
to distribute (FVlesstoDistribute < CA = impairm

a. Fair value method (FV of the share optioms o

b. Intrinsic value method (excess of the FMV o
the option price) can be used only if FV of the shar

• lower of CA or FV less cost of disposal

• not depreciated
• FV less cost of disposal < CA = impairment loss
• increase in FV less cost of disposal shall recog
in excess of any impairment loss previously reco
 DISCLOSURE
current asset: 1st item
non-current asset if
deposits in foreign currency
is restricted & material

current asset: 1st item

& NR
current asset: ≤ 1year
long term asset: > 1year

current asset: ≤ 1year

long term asset: > 1year

current asset: ≤ 1year

long term asset: > 1year

current asset
presented as one line item in
the B/S but the its details shall
be disclosed in the notes
general disclosures:
1. model used as measurement
2. rental income for the period w/ the
related expense
3. restrictions either rentals/sale
4. comtractual obligation to purchase or
construct investment property
when fair value model is used:
1. detailed reconciliation, showing all
movements, between carrying amount of
investment property at the beg. & end
of the period
2. method of determining the FV of
investment property & whether the
valuation is carried out by an independent
qualified valuer
3. net gains/losses from Fv adj.
4.whether significant fixtures have been
separately recognized
when cost model is used:
1. depreciation method/rate & useful life
2. detailed reconciliation of the gross
cost & the related accm depr. showing
all movements during the year
3. FV of invesyment property where
possible. If it isn't possible, such fact
shall be explained.
non-current asset
optional disclosures:
a. CA of temporarily idle PPE
b. gross CA of any fully depr PPE still in use
c. CA of PPE retired from active use &
classified as held for sale
d. when cost model is used, the FV of PPE
when this is materiallydifferent from CA
gov't grant related to asset, including
nonmonetary grant@FV, presented in B/S
either:
a. by setting the grant as deferred income
b. by deducting the grant inarriving at the
carrying amount of the asset
gov't grant related to income:
a. presented in I/S, either separately or
under the general heading "other income"
b. alternatively, the grant is deducted from
the related expense
disclosures:
a. acctg policy adopted and method of
presentation dopted in FS
b. nature & extent of gov't grant recognized
in the FS & an indication of other forms of
gov't assistance from w/c the entity has
directly benefited
c. unfulfilled conditions & other
contingencies attaching to gov't assistance
that has been recognized
an expense may be part of COGM /an OPEX
(depeciation chage for each year)
An entity shall disclose the ff for each class
of intangible assets, distinguishing between
internally generated intangible asset & other
intangible assets.
1. whether useful lives are indefinite/finite,
& if finite, the useful lives/amortization rate
2. amortization method
3. gross CA & any accm amortization
(aggregated w/ accm impairment losses) at
the beginning and end of the period
4. line item in I/S in w/c any amortization of
intangible asset is associated
5. additions, separately showing those
internally generated, those acquired sepa-
rately & those acquired through business
combination
6. intangible assets classified as held fo sale
in accordance w/ PFRS 5
7. increase & decrease in intangible assets
resulting from revaluations
8. impairment losses & reversal impair. losses
9. net exchance diffeences on translation
10. CA of intangible asset w/ indefinite life
& the reason supporting the assessment of
indefinite lfe
11. CA & remaining amortization period of
intangible assets that are material to the
entity's FS
12. CA of intangible assets whose titile is
restricted/pledged as collateral security
13. contractual commitments for the acqui-
sition
14. acquired by way of gov't grant &
initially recognized at FV
15. amount of research & development
expenditure recognized as expense during
the period

Under paragraph 54 of PAS 1, as a minimum,

the face of the B/S shall include the ff
line items for current liabilities:
a. Trade & other receivable (AP,NP, accrued
interest on NP, dividends payable & accrued
expenses)
b. Current provisions
c. Short-term borrowing
d. Current portion of long term debt
e. Current tax liability
Noncurrent liabilities include:
a. noncurrent portion of long term debt
b. finance lease liability
c. deferred tax liability
d. long term obligation to entity officers
e. long term deferred revenue

noncurrent liability
Lessee
1. depreciation charge for right of use asset
by class of underlying asset
2. interest expense on lease liability
3. expense relating to short term leases ex-
cluding the expense relating to leases w/
a term of one month/less
4. expense relating to low value leases exclu-
ding the expense relating to low value leases
w/ a term of one month/less
5. expense relating to variable lease payment
not included in the measurement of lease liab
6. Income from subleasing right of use asset
7. total cash outflow for leases
8. addition to right of use asset
9. CA of right of use assets @ the end of
reporting period by class of underlying asset
10. short term leases/low value leases
accounted for as operating lease
Additional Disclosures
qualitative & quantitative info about leasing
activities to help users assess
1. nature of lessee's leasing activities
2. future cash outflows to w/c the lessee
is potentially exposed that are reflected
in the measurement of lease liability
 a. variable lease payments
b. extension option & termination option
c. residual value guarantee
d. lease not yet commenced to w/c the
lessee is committed
3. Restrictions/ covenants imposed

present underlying asset subject to operating

lease in the statement of financial position
according to the nature of the asset

Income tax
1. components of the total tax expense
2. explanation of the relationship between
total income expense & accounting profit
This essentially discloses the acctg profit
subject to tax w/c is the acctg profit after
considering permanent differences
3. applicable tax rate, the basis on w/c the
tax rate has been applied, & the explanation
for any change in the applicable tax rate
4. aggregate amount of current & deferred
tax relating to items recognized directly
in equity
5. aggregate amount of temporary diffe-
rences associated w/ investments in subsi-
diary, associate&joint venture for w/c no
deferred tax liability has been recognized
6. analysis of the beginning and ending
balance of deferred tax asset & deferred
tax liability

a. amount recognized as expense for the

defined contribution plan
b. contribution to defined contribution plan
for key mgmt personnel as required by PAS
24 on related party disclosures
Once the defined contribution is paid,
the employer has no more obligation under
the plan
a. characteristics of the defined benefit
plan & risks associated with it
b. reconciliations for the FV of plan assets
& the PV of the defined benefit plan
c. separate showing of current service cost,
past service cost, interest expense/income
& remeasurements
d. disaggregation of the FV of plan assets
into classes that distinguish the nature
and risks of assets
e. sensitivity analysis for each significant
actuarial assumption showing the effect
on the defined benefit obligation for any ∆
f. description of any funding arangement
and policy
g. expexted contribution to the plan for
the next period
h. maturity profile of the defined benefit
obligation
current asset