Quick Notes in AFAR | PARTNERSHIP PARTNERSHIP FORMATION 41 Gish Face Value 2 Gah Deprecabie Asset & NCA 9 Agreed Vaue 8 Parvaue © Appeals Value 44 Carjng Vaio Value lasted are conadered asurad he prbien sent Inverter = Lover f Cos ana Nat Restle Value (LON) apa St Bonus netnos 52 Imesinendhdravsl Method Bonus METHOD {Te protiem tert) SMiharewoudbe a anser of capt 2 Thera recognten egos 5. Theta sane ond cpt wal temain unchanged INVESTMENTWATHORAWAL 4, Aged Captalis mace hen Uneuste Cap 2 Aveo Captal lees than Unagused Cpt ADIUSTING ENTRIES (Use conse) 1. Buldng Caring Value Pu, Agreed Vale: PEA ‘cums Bepedoton| PM Cont su 2 Accounts Recavabie Coc P10000, NV: PONDD Ctl ‘rtone tlowence er Doub Aecxnts 00 “nores: + Totrarsir be depreciei asset shows bein net aunt 1 Toranstr he seen receiatie ote row boc, shod ot be net amvant + 73000 9 PURPOSE: To ngage he pry {The cal personality of te partes aes tam the meeting et miss ‘Buta be Estoca—lgay bing the pater but ro femal syreonert fied Pammershg- Wo o mere general parmers and an er mareimtes farmers PavbaderParnershio single Wancacon PARTNERSHIP OPERATION Ths cou be rational year {Gen rogasess of aut peraton 2. erst This cou ten ractonal year 5. Gen regacss wher tere prof res . (Guse ne salarinarestrato ie probiem sales mat he amount io be ‘dereutad'othepaers sup l te exter cf prt oy ore rte ‘dees bese on te pint) Ti giant teria prot eny {Bonus snot abays given heres pot ‘CASEY Net cen of P500000 belo slases of PESOOD eres ot ‘Pe anatenus of oh * Bones Rate ‘seRomas Nate, ran a 5 9B 1556 seuss|2ASE2: Net come of P1000 before stares of PEGCD. Interest of P3000 and enuser to Heian Sart Ey poms Rate x 10% 8-migama NOTES: Aavancoe mae by tho prrrehip to a pare are ncued In capa Inlerestbut sha nt oot ne capal Daance of parner PROFITRATIO. LOSS.RATIO 1. Pott ato Loss Ratio 2 vs 2 Pret Ral Prom Rate 3 Oran Cate Rao, Loss eto 4 Grain Capt Rat, Grignal Capt Ratio == EXAMPLE ON HOW TO COMPUTE THE AVERAGE CAPITAL: 4.4/1 Prooo=e/2= goo [2 PEoO » 1212 Poco mn “Goong” 200 ao « i227 fon sen ¥i2> a5 cos an2= 0) aaa Be ‘wore: Pie Sen > orignal Capa 5 Ines = Seon Average Capital 1 Netincame ater htereet and ely ut fore bonus Forms, Net come ~ Total ieret~ To Slay= Bows PARTNERSHIP DISSOLUTION (Chango numbers ofparnes. 1. Atmiscion by Puehace witout Revauaton ‘Sent Personal raneactons ‘ot ese ane capt wl ein vnchanged Purchase pie signred 2. Admission by Purchase win Revaluation ‘eo Siggs be flout + 'Deteraned re ost revatston 1 Dotouoinelueesto he bg pane is | we gous) Wa ua subetée ‘aitstec | tibeice ° * 2 Purchase Pree ‘idea by New irtrest of Now Parner ousted Capt $e Unease rderaluss Asst (VA) Muspy Percorage et: Canta, shexbenbe® be usp: (100% New Parner) Bk RETIREMENT 1. Comput th capa dance betoreretromert Cantal bance Store inet ere! ss Drawings ‘ional invesiment Revatunton f WA Revatuston f OVA {9 Condenan the penrashiptablnyrecavable of yur éebar 2. Setlamantismare han Capt nares = Bonus the retiing partner ‘we Setlemert eles an Copa Ieret= Barve oe rematning parner PARTNERSHIP LIQUIDATION 4, Lurp-sum Liqulsston~ srg estbuton 2 tnsalimert Leuizaton plese moarSTEPS IN LUNP SUM LIQUIDATION 4 Roalzaen of Non-cash Asat Profi.ss) 2 Payment of abibes and quiaton expense sity Pc Capita Pex cae x cae Pe 3. Eiminason ef cefcencies INSTALLMENT LIQUIDATION ‘cash begining Pax ‘ss Proseed % rus abates| pescr Ligudaton Expense gastos! isrbutat a Maximum Possible Loss (MPL) 1. Unea Noncath Asset Pex 2 Aniopsd Lguaion Expense (tree) ax Unpaid a CASH PRIORITY PROGRAM “iRecevacasngiven) 1, Detemine tre cpt terest 2 Compute oss absopton blanco (LAB): Cap riers PA. Rabo 83 quate he LAB daauct he second nghect fan eight ul equal 4 itmovton Oflerncen LAB = Prt Rate nen ouse cath Promy rogram? When he problem sas, whet cunt shoul be dsrouted tothe parmers| EXAMPLE: Coptatwes tooo = bana Hono ns oe 06CUl te mon Fame Fa ren 72 rent 2 = 0009 200 Dc a} > WAraseved 25800, nov much was gen tov? prey: wget Pranty2 es ee ee) ner oa gm im a a SAFE PAYMENTS opt Besiing Pre SMGmemine Recent tarest Garvan. a 2 Gedctbetosmum Posse Macmum Possle Lore x ee EimnatonSetemey = 3. fer doen) Eonamnaon ee Gero SN Bietion on I CORPORATE LIQUIDATION + Trea 3) years quiet 1 The singer fui pescralty happen in eslufon VALUATION 1 heel =Fo Value 2, Cents" Maity Vatu Pinipl + nere) CLASSIFICATION (Statement of Atfairs) yrassers 2 pase Pace wh Fully Seewed Creators 1 Abses Peoge win Paral Secured Cesters 1 Free Ascete asst hat sent xia ple to any lates 2, vasiumes: + Fay Seared Libites {Paral Secwed Laties 1 Unto sites wh Penty "Salees Toes + Raita Expense (Ligation Expense) + Gisiaer Dopost + Unsocre Labineswihaut Ponty (no clear!) Percentage of Recovery (POR) ar Greccned Greiors WoW POR3. OWNER'S EQUITY DEFICIENCY CAPITAL 2 captal TOTALUNSECURED CREDITORS ‘WMTHOUT PRIORITY TUL) Teicese FPS Pa NET FREE ASSETS NA TERS PR oerPst om tx | owrAPTPSL Pax 2 Free hast Ta | 2. ut wi Prenty a 4 |Site Be 23. UL wih ry a Net Free leat Ba ESTIMATED DEFICIENCY (ED). ED=TUU=NER ae Es TUL = POR ee a a SHE bag Pat Estee ne oss a ‘crud rest fa Lguaton evpanee ta ED Be oe ‘NOTE: Statement of Realzaon -nocaeh [STATEMENT OF REALIZATION AND QUDATION ‘TAasaisTo be ead i 1 Neneash sels, bogrnng + PPE net prosseds 2 Aaseisacquies (AA)! ron Asset | + Recevabies —celecton intrest Recevcle 2 iverary cos of sales 1 esau Recevabie 4 Assent eaized (ANR) 7 Alabites iit (L) * Nenecash ASS ening Sime eruqsametiay |S lies tasted rey + ening belnee of elataties 6. Uabiies assured (LA)/ in Lisbies 9 Supplementary charges /Expenses | + ewe Expenses ims ae 2 te ‘a Segura ee Rome “ee ‘HLNETINCOME GAIN Red nest income x2 NETLOSS /LOSS As toe oe SHE, begining Notes) Pont cash end + ANE + SHE, en naan stato Equlty I INSTALLMENT SALES Pa = oe ‘TWPES OF SALES 1. REGULAR SALES 2 INSTALLMENT SALES cash Sales ‘Cost Recovery 1 Cred Selee 1 Stowe Prot Reatzaton 1 Usetne accrue! 1 Instiment Metiod GP tom Sale ot Repossessed Merchancse™ (GP on Regular Sales (Reguar Sales ~ Cost of Regular Sales) ROP on ineainent Sine Or ir 2015 BGP ta ROP Bor 2016 2016 (Colecton « GPR) 2017 (Colecton « GPR) Toal RG? Loss: Expenses (Loss on Repossession and Losulpence tom we af) nner Income 2017 hE Reconaitonng Cost GP trom Sale of Ropostessed Merchandise Fair Vale of Repossessed Merchanaise Recenatoning Gost Net Puchaoes Eetimated Seling Price (stent ater) ‘aller prescribed by the standart PeIrstatmert Sales Costot Sane Deferred Gross Profit, Inetalment Accounts Recehable UUneseured Gost Defer Gross Prot AAPL: For Value of Repossessed Merchandise! {eee Unrecovored Cost TARRepossessed Account (Gocohable BefautadLnpals Batace) Less Deerea Grose Pratt Loss (Ue > FV or Repossessed Merchandise) ENTRIES: ny be fo ee era 100 2 0) eu 1. Roposs Mee. FV #70 cash bee Ey aR TAR po ocr RP 2.Bxpenses peo Ge (20%) 20 ‘caintoss > Pn. ia 200 “DG > Conta recewable account rte 20%) AR 2016 pcp 2016 Begining PTO | Calecbar PSO “AGP —— TO | Beging P20 Ra 32 DoPonRA 's Wo ‘5 OGPenWo ee ea 85 re Ra OGPonRA Wo _bePenwo, Ee ee Beginning Ivertony Net Purchases Fregitan Repossessed Merchandise Recondoning Cost Teas. Ending nvertony (New + Unsold M+ RO) Cost of Sales (RegularinctsimentRepascessed Merchandie) ‘TRADEIN 8 SALE OF REPOSSESSED MERCHANDISE, ‘Down payment Cash ‘own payment PY e Tragein Cotocton nat of tro, Cotton Muti Gross Prof Rato Realaes Grose Pro, ‘oss Prot om Sale of Repossessed Merchandise ‘otal Realaed Grose Prot Lose (FV of Reposs. Mace. -Unecovered Coe) NET INCOME “TRAREAN Instron Sales Fair Vaio of Traesn ‘Tracain aowanee Adjused instalment Sales Cet Sales Adjusted statment Sates ‘Sou payment cash Farrvalw of Trades Vor Receivash Tracein Allowance Collectibles Beak fk Phe? a? Rete? BEY BEIV, LONG TERM CONSTRUCTION CONTRACTS (IAS 11) ‘CONPUTATION OF AGJUSTED PRICE ILLING (A): Canoes Pa | PERCENTAGE OF COMPLETION HETHCO + mewn oa) a ‘cicane cn bocce nay 2 bell meman eos} = fe poien ie rt = ena Sue ce oie ture) = {THINEUT MEASURE (Coste Cos) feta weet urore x Connareg Yo utes Tat Cost “i+ teat range Ses Vnten oe 12.6ururmeASuRe ABWUSTeD pm ELLING (CP APa) a ol nts rod =Total Ut Expects Prd 2.00ST RECOVERY METHOD YeaRt YEAR? veana Sec ted iy cro ee SE? RE SMa mB & CONTRACT RETENTION oe Pe Pe recente -ie a BB CBee ean zone avert (Pre tyoueton BB =P { iaamescacion coon tease 3 Faoeora eure uaa Asiet feoretcooect can Pe Contact Retro me CConsTRucTION I PROGRESS “Thi Fut Coronet Me: Percentage of Completion = CIP > \ONSONPLETENORPROMECT. {hts jes poe)-LrD «(1 Pooy se a hog -tro}= 6 ‘Contract Retention Po ae ey oBlLZATION FEE moms: S roeaneaenent ceecckntifingren > PRO-FORMA ENTRY: "Comrie Acne = Pec can Pe vrce tor Customers re 2.) Accs Recotla Pn ropes tangs Poe CConPUTATION OF cost NCURRRED TO DATE (TD teeters Px aycas, at «ose s eco Recavane Poe $Ghorenes = aye0e Pi 1a) Deoresenofcarsteten Emupmert (ee = Expense) Connetonin Pores = Leavers = ‘Soenucion ae Pa a 8) AocmtsRecevable Pa 317} aonaw Cost Quatg Asa = *Spectc= el soem a= c) CR Frees ens Pax +16) Untses Sips teas wha Aoneve Use = 8) Pees trys Ps {eblnddena ume tn ues oe Sera atts Corea Pores Poe ‘SosrincunneD To ate Be[COMPUTATION OF ADJUSTED CONTRACT PRICE: Cconat Price anale Pree onus [Adjusted Contract Price Bh? ‘COMPUTATION OF ci: Cost nated Date Feslaad Grove Profit date Construction in Progress BR? YEAR Cento Price po | Be (SD ener Year+ cuent Yes) Ba | Be Estnated Coss aa | oe Vaal Cone go | ge ‘Total Eeimates Cros Pret Pe | Be Mat Percentage of Caroleton ae | oe YaalRenived rox Prom etooee | Pe | Pax Featzed Gross Prot Pror Year(s) | Tax | ae Feazed Grose Pro cwrontYoor | Bx | Ba ‘SQUPUTATION OF OP. nett Pe 2PM (oat nares To Dato on ‘ota trates Cros Prot x | ean Mp: Percentage tcompieton =| =| Soo JoalesteadGonrontoowe | Bo | im Pas Pas Progress aitings PY +c) jo | ou CComsivuctionin Progress, rat ofPB | Biz | Ba RECOGNITION OF REVENUE ats partin time ‘YEAR | LASTYEAR Bk 2le2Bh 22 a PERE COMPUTATION OF DUE FROM (OLE TO) CUSTOMER ¥2 ‘Year 81mg ‘Year261nge eoleston Fe "Year Galason 18 custome payment a amount ies) = (100%: Retenton Fea) Year 2 Calecton 28 = customer paynent of amount be)» (10%: Retenton Fee) ue rom (Duet) Customers ¥2 BE g ae? V. IAS 18 - REVENUE (CRITERIA TO RECOGNIZE REVENUE: *.Recaunbles send reasoly assured 2 Qa Dan Payment (aon) renrsusiee a ‘stan perornance Nore: + These canon sol med to reagnze revenue {IFRS 15 Contingent Franenbe Feo IAS 18 Contnung Franchise Fee ae od of ae Fe*Revewe| = Deares | cosh Pe ‘scant Pa Francree Revenue oe Deters Revere ea EXCEPTION TO THE RULE: 'S'Dom payments eonsdeced as venue he DP is nvtuabe ant DP reese iarmeneu ot senses areadyrnderse(Coser) BY ~blee Bena Aral Meted Coste es (Oveet Cot nti Seres) ortnang Frencice Fe (Sales =) Imre eae Fare Aunt = trot Rate 712) Expense 0c or iS+ Ic far C3 Def SO) NeTINeOME ose 2, ~Nenitues Being rst eon ‘Down Payment —cash Catmcton aug the pid “ot Catecton lly Gros rf ato (GP= Revewe) eve wr Continuing Fenehse Fee Enpenses, EE RY Navneet Bening é2 Revenue OF + PY) Conta Sor Conte Fancse Foe Ire eae (== 72) Expenses, Ress 2kik? Beate? se Pee RE (esse) Bx —Ner-eterest earng ‘ew Payne ly Grose Prat Rat (GP Reve) sven Pv Resize Goss Pat ‘CeminungFenchse Fee ret nce (PV =» 72) apenas ‘oun pment atecion Re TOTAL REVENUE FROM EE ‘enn payment tec Teen FF Vl. HOME OFFICE AND BRANCH ACCOUNTING = con = arom sos sees ae 4 Beg ay: Peg thede? & Bern 22k? Bhan? Bh? (orn a ins a —> nor‘nore: "Begining inverter) — HO (a)invanst por year (6) Frag Charges + Ending veony = HO. (a) intans~ cunt yeer(SFHOs Repared Net nee an) ‘Netincane @ Goa >The Net ane one fe) Boos @ BF C008 G Caes Netcone @ BF Resid Gross Prat BaMPLE | -crmes eticonereparedy netranen ia | “PBT rena eprce rar pean e| 9 + Atoraton expense | 52 setnconetatsoustaerepated Tar | Fa | a ‘eaoe roma rt | re | ie “eet ieame | meon seiienome | cotcunlconeen ru iedmenteane he me ms 5 teenie 2 sR a ay ee a ee Svarmerrae Ey “NOTE: The value metnod is ppeable oly fr rang secs. TYPES OF BUSINESS COMBINATION 1. ASSET ACQUISITION (100% Ownership) Vi. BUSINESS COMBINATION (FRS 3) & CONSOLIDATED Prandeyepe sareens BUSI cc HEeinyueye Asst Seman ee ee ores face quscmue | | accom me wenn sccountna n=tHo0 BREE | SRB | const Prva Seed 010 Pita Mad) are |e | Se, esse neon Soman ge tae ? i 2 Seale one i rate Sar aN necceoni tn, wi yslove we Peer a Trearfon beer oa couc oqebe al urs oe romero a iter see pumenien aad & ee es vnmac an saci yer meme pieviemtbaect ‘“ snnscipen sede wim aw, nal tw fuses ee aeath oe Drees per tees a ee Unrealized Gain 1 Unrealized Loss c) ae fe 5 ee YS Ricca ies eth rn Pe PaxFORMULAS ae ca gs Prem Pen vu feieehe he mpm eawwg Jo NAQPY np ar Gold aon ou Sine na 2 Prdsiioy Prdsacoye ad cate cy TTaE terest hate * PMG = Ba EXAMPLE: Purchase Pre 1000 NAY ~ 201 Po. ABBY (SHE) "[70) Net income 0 Ercose F300 Bhicend a ova (6) NABEV- BC Be ta too) ‘Goon ean Purchase Pree i000 -NA@BV—BC 700 NAGFY (squeezed) = 1750) UWA 00 ‘Gooaw| Bal OVA i NA@FY ao Re 7 “. Droct Cost > expanee 2 lndrect Gost sxponse CCTIR Keywords: 3. Coatt leew orRegerer(cTiR) See > Based on priority 2 Stork 3 Shore Prema fom 2 Share 2.2 Stare remum tom » Rey a sige wstance 33, Dente Stok stuance AMPLE ‘Share Premium rom stance 50 ‘Stare Premium rom ogra suance 3 ome 100 ‘stare Premum 30 ‘Stare Premuum 2 cashiPayatie reo PRESENTATION OF NCI 1. FV of NCI Full God ‘fhe i vas urknom compute the trl a vale roms pe ry PEE rie Contr Prem yoy, ‘Comtollng interest 2 Propartnate Share /Relvant Share nereatin te Not Asst of Siocary ‘ina FV ot Nat Aste «NCH = IAS ‘CONTROL PREMIUM (C?) fettmustbe ncacedin fe purchase pice 2 Breloedn eamptng NCL 3 fetes gooawiter gan (CONTINGENT CONSIDERATION PAYABLE (COP) {Lirinetrormaton exists ares os he eecuiston dete any acustmet to far vate ous aect he good roan 2. te nfrmaton seated fo eet get mak price any ‘ausimert goosto Pic and dost fect na good x fan OIE Aausmerto ioe saab ples reomestve Dect Costs cates capisizabe Nchismeasurod ung poporenate {Geoouil goosoparnt ‘Groowe arortzaien (10 yeas)BUMPLE: case1 Fae Vaio of Susisaty Netassets FV Sood Inpatient toes econ eure) pxszan (or ‘itt proto sont uso the Fv ‘The A oN! shoul nt ker of NAS. w nas puomoo0 vs. rn300000 o 7 meereen 20% = 9325000 case 2c 100%) (0%) 20%) TOTAL Purcnass ace NCL Farvawe otsubeisary —issouoo eisue00o 250000 NotAssots @ FV -{ioooo0o, — —agonom) © —(2o0000) Goode! peso =— acum Bn 290000 #300000 Praag vq, THN TN 20 = 250004 case (00% (0%) em) jota, a wenase Pree NCI FrValus ot Subsisary 20050" o00000"" —® 260c00 NetAssala @ FV ioceonm ©" facneom —“zao00 ood Fr remem «vs, 00000 20% = 92500004 oaet? 520% = #25000 Case 4 (CP of P300000 since} (190%) (on) 0%) TOTAL Purchase Puce NCL Fairvatue of Subssary stanoot “ptanooeo 20000 NetAsses @ FV {ison © goon) _z00000. ood azo | am Be 1000000 = F360000 3. pa ysoop a0 x cases, 00%) 0%) om TOTAL Purchase Puce NCL FairVaiue ot subsitary 000060 700000 280000 Net Asset @ Fv 1000000 (2000 “rae Gooawi fim RB NOTE: Gainienaveratocate Igoe to Parent grou conus purcnece Price Fico ooo et Assets @ Far Vaie Biss sao Stoowi Emme Eom ‘Good on January 12017 = 200000, ‘CONSOLIDATED FINANCIAL STATEMENT (“At he date of businass combination) ross renin eg ts mises 24 : = 5 Seat meeomnen & sence 3 sepa Bae 3 ue & Total Assats eaTOTALWABLIMES ‘CONTROL PREMIUM Tosi Labties of Parent @ BV ‘Toa! Labiies of Susser) @ FV Pe Purchase Price (Labs) Drectcost “i ungate inact Cost ‘Ural ‘otal abies ‘SHE of Parent @ av nor rene Purchase Price (Stocks @FY) CE cre "otal Assets ‘catonal nvestment Partot purchase price ‘ios goalie) Ignorea wn compuaing NCI ‘cash Nonessh sbi Stock (WORKING PAPER ELIMINATING ENTRIES. {DIVIDEND RECEIVED Divisend Income Neer) vend Decare- Sussiaary ? af Bhuxeee? af Bags 2. SUBSOMRY- SHE ‘Orinary Share ~ Subsidy Share remum = Sisedary Retaned eamngs Subseary Invesertin Subeitaty Ne 2. OVA, UWA, GOoDWLL Equoment Inventory ‘Geen investment in Subsidiary ner ‘Operating Expense PPE net Imparment Loss ‘Good cont ot sales Invetary 5. INTERCOMPANY SALES & PURCHASES Cost ot sles sure ‘Cont ot Slee inventory 7. RPSL Relanes Eamngs Parent Nev Goat ot Sates “Encing inventory lip GPR of Sle pet 2006 PBI —2007 BEL? NOTE: ‘cONSO 908 wre Ree Pex oe ex pe Px Pe pe Pe Px ee ee ee Po po ventory. onai Rasa setae bane pa S aac Ah iiakanbi:Shaatine tacos Sdn EXAMPLE: ‘Sales. Pano Cost sates or ‘Sees Prt Paco Une rate) ning vento % = BD Ope! Bigg) RPaI(oUoN/7) Begexxeds Seeexene wage exvextht @ Eng Invertery (100050) Working Paper Elinaing Entries ie oun weer cos. pox |cos ventory Pa | verry BEB RE boy pox | Re bog 638 pee | Nei cos But ae a rm a ‘EXAMPLE: lntercompany Sale of Eauloment Sales 70 Gv feoc490/10) 3) = cain er ‘SELER AUER WEEE cas 70 |Emupmert p70 cen °7 mec.Den 27 ‘cash p70 |Eqipment 20 ‘qupment P90 ‘ec Dep 27 Gar 7 Dep ex ps | ep exp mio |e. Dep ‘accDep "9 | AcciDsp PIO) Dep Exp PY proz-P “pp rgononeaer LUNREALIZED GAIN cain *7 aulpment °7 *ftdepends upon he Seting Price) wean yeaa uments | Re ” noenrRy Gn Equipment ” Realized | Ace Dap. ee dae * an op ep 1 | Mow ee " EXAMPLE: Inercompany Sale of Land Lana (sting pee) - 100 a 0 ‘Slot tr pay - 150 YEAR| YEAR? | YEAR 2) —Reconed— Subsidiary P50 us “ay | 0 |~-o | Notyetrecoded ag re “e | 3 | 2 EaFORMULAS: oes rtp po: Si em Sty = senso se sping Pa ti Eni (= & enc ae et ene = uncec Pst naar etn (= . Setaea ces fa fatten Ursa este ey Monenhing rere end & pert a Crate none a Norsonlrg nis = Caetsidand crews Pot me Sera Nat crmeran = pnsing Scans Poet v= Sea poe fa Spray gree Sein = Prat Rand amngs é ‘ez Lat te dort aon = esse an te seecetor eo) ) ‘finay shove Parr, Pa Seen . ae = Amortization of Undervalued Assets. ~ Genes Reta Bora = Dertaaton of Overiuee Assets a crcaanton ee = = = ‘Shocked shrshoere equ Ed Sonal Seta = staraolr's Egy, ond Po iver — cuts @ BY = eens sebeter ‘ ree eee 3 a = Sereutineey 8 easy Amortization of Undervalued Assets — Inventory ex) nee, 000 “Amortation of Qvervaluec Assets — inventory. ~ Ger ast (0) = Shetita Pts Enaotany OPE a Net Assets atfair value = ‘Consolidated inventory Pax ‘Sales ~ Patent Pree stad Net Income attributable to Parent cc Sais Sein = Sencontaing ea neticane. ° Facog ie Puce Seg Pe fa Sore = Cocca Se & Cente Sale Paet = Se Stes Bay = Vil, JoB ORDER COSTING faconary Same Pocases x Steg rice See nase erty wee) = Presta OH Rats = aes on BUDGETED ese Spr PO) © rooo) §— ppoce 0000 = = Tom sa “Once the OH costof the sevice department becomes exhausting, do not locato che cet the eeraes department “+ RECIPROCAL METHOD QC — Maintenance Machining Assembly ‘auaty const om con 20m Maivarance 26% : te om ‘auaty Contol= 250000 +0250 Hameance = 2oote0» 0 200¢ } Subsite (Gers aso +780 = at083 20000 020621085)» 204291 ac Maintenance Machining Assembly 350000 "20000 "400000, 300000 (21083) eazit 2ias2 aaa 11053, eee ‘eae 283 2 & meat ara bx, JUSTIN TIME TRIGGER POINTS: * Putenese 1 Completion « ie coats: 4 Biminatng any production press that does nota value 2 JOURNAL ENTRIES: > Butase Rew andin Process Po ‘Accounts Payable oe Conversion Cost Pe "Var Aecours Pax > omsiston Finishes Cosds Pex Faw andin Process ee Canveraton Coat mo ‘Cortot Sales ee nened Goods Po ‘cost ot Sales ee Raw and n Process Px omerson Cost = > 1swere sol ‘Cost of Sloe Pee Fetes Goods es ‘Gomwerson Cost Po ‘Reward in Process =X. JOINT COSTING Joint cost Liss NRV of By produet 2 3 veriarables Remaining Joint Cost rmataal ‘TREATMENT OF BY.PRODUCT 1 Upon sale or walzation “Tecorded as ehor come, tho by-product i mstoral 2 Upon production of rvertrate “IRE NRY of byproducts deducted rom th otal pit cost ALLOCATION OF REMAINING {UA Pgical measure such a8 galonvklogam 12 Unie rosuce 413. Welgmed average nts rocuce 2. MONETARY 221, Sales vale at splot alo krona relative market vate 22 Nat ealzabie vac atapito 23 ypotnetcalapproematocfotineted at pt-f also known as adjsted market alse 1Wo TYPES OF COST FOR THEJOINT PRODUCT ‘aint Cost Stare or Absated Joie Cot 2 Traceabe Got or Adtora Processing Cost Xl, STANDARD COSTING ou rca SE rw od oe eteerey i. = ae LXIl, FOREIGN EXCHANGE (1AS) ‘Assos & Labitios Shareholer's Equty 44. Foreign Curney Tansacton 2 Foreign Exchange Traclabon & Hedging or FOREX Rise EXCHANGE RATE ~This the rato of exchange between wo curercies. [SPOT RATE ~Ratetorinmedite delvey. (CLOSING RATE Ths se spot rae at Balance Sheet ae FUNCTIONAL CURRENCY - Cureney of primary economie enwonment Ivetich to entity operat, \irat the ary ever of fnctonal cureney? — SALES — coocing ate SS isons Rae Revenue expences Average (Computation: (+E)2) SS Spettate mean) FOREX TRANSACTION: importation (ee (Mea nerunent) Fats rerton oo} nent faercan Tool (201 ex Gan FR, FOREX TRANSACTION: Exportation ‘SELLER OF MERCHANDISE 5 ER Fes Gan SELLER OF Fe. TERY = Forex oes GFR =ForeeCanENTRIES: win roy aUING OF Fc. Purses Px FOR, Pa ‘Accounts Payal "Pex FOP (eed) Po Forectoss Pax For ee ‘Recounts Payaie pe Ferexan, Pox ‘Accounts Payable Pax Foroctoss ee exon px oR me ‘counts Payable Paw oP (mech Pa ‘cash Px Cast = For Pa SELLER OF MERCHANDISE SELLER OFC. AccaunisRecevetle Pax FOR ued) Pax ‘ales moe eR Pa AecoumtsRecaveble Px Forex Loss ee Forex toss Po Foe a TOR ited) Pix FOREX TRANSLATION "only oct consodated FS 3 an Oto: Comprenenswe Income component oct: 4. Forex Transition (14821) 2. Etocie Porton of Cash Pow Hedge (FRS 7/9) & Rovaluaton Suplus (45 76) ‘& Remeasuromert Gt flated to omployesbonett (AS 10) 15 Estited Ueatzed GA on FA at FVTOCI (IFRS 7) Risk GU on cred yi fr thane Faby desig to PA. RECLASSIFIED TO PI: 2 Etectve perton of Cash Fow Heape As Lo + stow” seu” sow 281 sel 0p rot = Fat + PI + #n—Srrenaaton Aqustmert ‘crest si sem saw io = FEM + Ran + P2M—prrencaton Adjustment NA, ending @ OR > NA, ening @ RE=Trarslaon Ajuctnent Cred NA endeg @ CR < NA’ nang € RF = Trrslaben Adjuster Dob NA dep OS HR Poe Se, bea ‘ek ——> (ransted amon ‘Net income ep average mx Dridend @ SF a Navona @ RF ea ‘auoration: {DIRECT ~ Foret Cureny to Prippine Peso 2. INDIRECT ~ Piipine Peso Foreign Currency ‘SPOT RATE: {BUYER = Sling Spot Rate Oe Rate / Asking 2. SELLER Buying Spot Rate Ba Rate ARM COMMITMENT (1) The hedge © perfect when th company acquired a forward contac for the same amount ofthe same crency Inte Sef comment (2) Une prlect hedging the amount of forex gain fem hesgeg rstumert |S equal tum commarere a habit (@) The amount of forex los from hedging inebument equal fim (a) Types OF Fiat COMMITMENT (6) The aseet sold or purchased is recorded at he date of stoma rased en he foarte onthe date of comminent‘THREE HEDGE RELATIONSHIP (1) Far Vane Hedge Wedges of expometo the cangesin vive ofa recognize asset or ‘recognized itm conntnent “ie protem sien use the PVH (2) Caen Flow Heege "Mrsges ot probe recast Waneactens eth vay the es fow ‘tarocegnzed asset tbily (2) Netinvesimen Hesge edges of he netivesmentn ere epeaton options = "Canacts tht re tgh and nt abigation buy os commas © ee + Tete days favorate cn fhe part he helio 5 irtisgan ermine mney exrase he epton 1 intissuter tbe money, sonot exes re opten {a open sen he prt he buyer 1 ifopton sc hepato seer CALL OPTION: Warket Pe = sks Price > AT THE MONEY Watet Pe > crite Pre > 1 THE MONEY (US) Wisket Pe < Ste Pres 3 OUT OF THE MONEY Pur opmon: laket Pre = ake Price > AT THE MONEY Wvaet Pe > Gite Price > 1N THE MONEY Wise Pe < Site Price > OUT OF THE MONEY ‘SPUTACCOUNTING. orn Inbinsc Value —Urreatzed Gan > 0c: "ime vse Conese” —> PL rH Inbinsic Value—Urreatzos Gain. ——> “ime Vale “Ganiose” —> IL MON.sPUT AccouNTNG Inbnsc Vale Ureeslzes Gen ——> ocr Invine Vale —Urresizes Gain. ——> PIL 22 XIll, ACCOUNTING OF NPO (AICPA) ‘COMPUTATION: ‘Gross Patent Senice Revenue Chay care ‘Amount Charge ied to Customers Convacuat Aajusment(PHiLMEALTH, MEDICARE) ‘iscourto Hosp Emgloyees [Net Palen Service Revere ‘STATEMENT OF ACTIVITIES + Shows conzachal dustment 1 This is colectle at the party payor ae sent be "Recouts Recevable Po (@Eoxsenools rete ne) ‘Expendeuefor student ——? "Accounts Recetabe ex ‘CONTRIBUTED MATERIALS, SERVICES, & FACILITIES sm weectee unde (ioeetny Px ‘Conmouten Revere ex (2) Sas Pa Caninouton Revere me (@)Rent Expense Pe ‘Cottbsen Revere Pa (OTHER OPERATING REVENUE Ueaicted unde cast Px ‘ner Operating Revenuet PaFINANCIAL STATEMENTS (1) STATEMENT OF actives + Amount of changes each of he thee classes of net atte (@) Changes Unestictog Net asses (0) Changes in Temporary Restle Net Assets (6) Changes in Permanent Rowe Not Assos (2) BALANCE SHEET Asses, Liales, Net Asets 1 Thess tapes of et Asate (a) Unostrictog Not Aste (0) Temporary Rested Not Ascots (©) Permaranty Restced Net Assets + The estciedcash and investment afe prescribed separately 1 Alsecuis afe valoda a vale (@) STATEMENT OF CASH FLOW + Restcee wheter emporarypermanent(FIWANCING) 1 Gunssencooment > unesticed (OPERATING) 1 Receipts of donation to purchase PPE (flow: INVESTING) 1 Cash eutow ts purenase PPE (FINANCING) 1 Torm enaowment> Temporary (FINANCING) 1 Pure endowment > Permanent FINANCING) (@) STATEMENT OF FUNCTIONAL EXPENOTTURE +” Speetiealy for Voluntary Heath and Weliate Crganizaton (NGOS) XIV. GOVERNMENT ACCOUNTING JASES OF BUDGETARY PROCEDURE 1. PREPARATION AND PRESENTATION ‘Submission ef budget te expencture 2, BUDGET AUTHORIZATION = Enact byte congress of the Genera Appropriation Aet 3. BUDGET EXECUTION AND OPERATION a paiease of revenue altment 44 BUDGET ACCOUNTABILITY Luin of expendtie and aut condute by Coniston on Aust (GOVERNMENT ACCOUNTING MANUAL (GAM) > Under GAN, erty sta not mama reguaragercy book and natenl ‘government book > GAM supersedes NGAS effective January 1, 2016 implemonted 2002 > Commission on Aust has orc sty fo define tho scope of aude (1) Statement of Franca Postion (2) Statement of Pmaneia Penemance {@) Statement of Changesin Net Asse Equty (@) Statement of Casn Few (@) Statement of Comparison of Suet and Actua Amounts (6) Notes to metal statements, compesing a summary of sgnifcant Seeburg poles and other enpanstay rete 200KS OF ACCOUNTS & REGISTRIES 1. JOURNALS {2 Ganeral Jour B Gach Recep Jour © Cash Debursement ual {Check Oiscursemen ous! 2. LEDoERS General Legere B Subsitny taapers REGISTRIES (1) RROR ~ Rogisties of Revenue and Other Receits (@) RAPAL Regist o Appropriation ara Aten (6) RAOO — Regeores ot Alotmens.Obigstion and Dsbursements (@) ROUD —Reghstes of Budget, Utzation and Disbursements CLASSIFICATION OF RAOD & RBUD ‘+ PS-Pemsonel Senices MOE” Manterance and Other Operatng Expenses 2 FE Fhnancal Expenses 2 co Ceptal OutnyNOTICE OF CASH ALLOCATION (NCA) ' Issued by Dapatontof Budget and Managoment(OBM) tan agency ‘thoreng te tro csbtea by checks (1) RECEIPT OF NCA ‘Cash MDS. Reguae eo ‘Suny om Nana! Government Pee “Net of 5 ea VAT ond 1 matte woe ae (a) unuseD Nca Subs trom National Government Pe ‘Caan inOS, Reguar Pex [ACCOUNTING FOR DISBURSEMENTS. 1: Net Payrol Avance to Dsbursin Cte ‘avances fr Payot Pex “Gash” MOS Reguar Pm 12. avait Coes and Emolovess and et up slay decuctons Salas ana Wages — Regular Po Pere es ‘Sue toa Duet sis Dueto Papas Dieta Phieath usta Omer and Employees 2, emitance of Sst Deductions Duet Gsis Duet Pagi816 Duets pribeam ‘Cash MDS, Reguat Pm “4: Liat of Advances foc Payal ue to oie and Employees Pox ‘navances for Payrt Po nuasd aad PRESETS ERE