Subject : AE 417/ Intermediate Accounting 3

Class Schedule : MWF (3:00 pm – 6:00 pm)

Teacher : Cyril Marie S. Ramos, CPA, MBA
Date : May 11, 2020

FINAL ASSESSMENT TASK

Deadline: May 18, 2020

Make a summary of ALL existing PFRS and PAS which guide the preparation of Financial Statements in the Philippines. Use the matrix / template
provided below.

This is a group assessment, which means, it is up to the class to divide the work.

Final output should be:

 Computerized (in soft copy)
 Font: 12 Verdana
 Spacing: Single
 Paper Size: Legal
 Should be sent to cyrilmarieramos@gmail.com on or before the specified deadline
Number Title Date of Important Provisions Initial Subsequent Presentation
Effectivity Measurement Measurement (if standard is
(if standard is (if standard is related related to an
related to an to an account title) account title)
account title)
PAS 1 Presentation of January 1, Presentation of Financial
(revised) Financial 2009 Statements sets out the
Statements overall requirements for
financial statements, including
how they should be structured,
the minimum requirements for
their content and overriding
concepts such as going
concern, the accrual basis of
accounting and the
current/non-current distinction.
The standard requires a
complete set of financial
statements to comprise a
statement of financial position,
a statement of profit or loss
and other comprehensive
income, a statement of
changes in equity and a
statement of cash flows.

Important Sections /
Contents:
 1. Objectives of Financial
Statements
2. Components of Financial
Statements
3. General Features of
Financial Statements
4. Structure and Content of
Financial Statements
5. Reporting Period
6. Statement of financial
position (balance sheet)
a. Current and
Noncurrent Items
b. Line Items
c.
7. Statement of profit or
loss and other
comprehensive income
a. Choice of presentation
format
b. Profit or loss section
c. Other comprehensive
Income
d. Other Requirements
8. Statement of Cash Flows
9. Statement of Changes in
Equity
10. Notes to Financial
Statements
PAS 2 Inventories Jan 1 Standard on Inventories At Cost Lower of Cost or Net Presented as
2005 contains the requirements on Cost should include Realizable Value Current Asset
how to account for most types all: under Line Item
of inventory. The standard  costs of NRV is the estimated “Inventories”
requires inventories to be purchase selling price in the
measured at the lower of cost (including ordinary course of This line item may
and net realizable value (NRV) taxes, business, less the include accounts:
and outlines acceptable transport, and estimated cost of 1. Raw Materials
methods of determining cost, handling) net of completion and the Inventory
including specific identification trade discounts estimated costs 2. Work In Process
(in some cases), first-in first- received necessary to make the Inventory
out (FIFO) and weighted   sale. [IAS 2.6] Any 3. Finished Goods
average cost.  costs of write-down to NRV Inventory
A revised version of IAS 2 was conversion should be recognized as
issued in December 2003 and (including fixed an expense in the period Disclosure
applies to annual periods and variable in which the write-down Requirements :
beginning on or after 1 January manufacturing occurs. Any reversal  accounting policy
2005. overheads) and should be recognized in for inventories 
  the income statement in  Carrying amount,
Important Sections /  other costs the period in which the generally
Contents: incurred in reversal occurs. [PAS classified as
1. Objective of PAS 2 bringing the 2.34] merchandise,
2. Scope inventories to supplies,
3. Measurement of their present materials, work
Inventories location and in progress, and
4. Expense Recognition condition finished goods.
5. Disclosure The
Inventory cost should classifications
not include: [PAS depend on what
2.16 and 2.18] is appropriate for
 abnormal waste the entity 
   carrying amount
 storage costs of any
   inventories
 administrative carried at fair
overheads value less costs
unrelated to to sell 
production  amount of any
  write-down of
 selling costs inventories
  recognized as an
 foreign expense in the
exchange period 
differences  amount of any
arising directly reversal of a
on the recent write-down to
acquisition of NRV and the
inventories circumstances
invoiced in a that led to such
foreign reversal 
currency  carrying amount
  of inventories
 Interest cost pledged as
when security for
inventories are liabilities 
purchased with  Cost of
deferred inventories
settlement recognized as
terms. expense (cost of
goods sold).
PAS 7 Statement of January 1, A statement of cash flows,
Cash Flows 2005 when used in conjunction with
the rest of the financial
statements, provides
information that enables users
to evaluate the changes in net
assets of an entity, its financial
structure (including its liquidity
and solvency) and its ability to
affect the amounts and timing
of cash flows in order to adapt
to changing circumstances and
opportunities.

The objective of this standard

is to require the provisions of
information about the historical
changes in cash and cash
equivalents of an entity by
means of a statement of cash
flows which classifies cash flow
during the period from
operating, investing and
financing activities.

Important
Sections/Contents:
1. Objective of PAS 7
2. Scope
3. Benefits of cash flow
information
4. Presentation of
statement of cash flows
a. Operating activities
b. Investing activities
 c. Financing activities
5. Reporting cash flows
a. from operating
activities
b. from investing and
financing activities
c. on a net basis
PAS 8 Accounting January 1, Changes in Accounting
Policies, 2005 Policies
Changes in An entity shall change an
Accounting accounting policy only if the
Estimates and change:
Errors a. is required by an
IFRS; or
b. results in the financial
statements providing reliable
and more relevant information
about the effects of
transactions, other events or
conditions on the entry's
financial position, financial
performance or cash flows.

The following are not

changes in accounting
policies:
a. the application of an
accounting policy for
transactions, other events or
conditions that differ in
substance from those
 previously occurring; and
b. the application of a new
accounting policy for
transactions, other events or
conditions that did not occur
previously or were immaterial.

Important
Sections/Contents:
1. Objective of PAS 8
2. Scope
3. Accounting Policies
• Selection and application
of accounting policies
• Consistency of
accounting policies
• Changes in accounting
policies
4. Changes in Accounting
Estimates
• Disclosure
5. Errors
• Limitations on
retrospective restatement
• Disclosure of prior period
errors
PAS 10 Events after the January 1, Events after the reporting
Reporting 2005 period are those events,
Period favourable and unfavourable,
that occur between the end of
the reporting period and the
date when the financial
statements are authorized for
issue. Two types of events can
be classified:
a. those that provide evidence
of conditions that existed at
the end of the reporting period
(adjusting events after the
reporting period); and
b. those that are indicative of
conditions that arose after the
reporting period (non-adjusting
events after the reporting
period).

The standard requires that an

entity should not prepare its
financial statements on a going
concern basis if events after
the reporting period indicate
that the going concern
assumption is not appropriate.

This Standard prescribes:

a) when an entity should
adjust its financial statements
for events after the balance
sheet date;
and
b) the disclosures that an
entity should give about the
 date when the financial
statements were authorized for
issue and about events after
the balance sheet date.
The Standard also requires
that an entity should not
prepare its financial statements
on a going concern basis if
events after the balance sheet
date indicate that the going
concern assumption is not
appropriate.

Important
Sections/Contents:
1. Objective of PAS 10
2. Scope
3. Recognition and
measurement
a. Adjusting events after
the reporting period
b. Non-adjusting events
after the reporting period
c. Dividends
4. Going Concern
5. Disclosure
PAS 12 Income Taxes January 1, This Standard prescribes the Deferred tax Deferred tax Consistent with the
2005 accounting treatment for liabilities Deferred tax assets and principles underlying
income taxes. The principal The general principle liabilities are measured IAS 12, the tax
issue in accounting for income in IAS 12 is that a at the tax rates that are consequences of
taxes is how to account for the deferred tax liability expected to apply to the transactions and
current and future tax is recognised for all period when the asset is other events are
consequences of: taxable temporary realised or the liability is recognised in the
a) the future recovery differences. There settled, based on tax same way as the
(settlement) of the carrying are three exceptions rates/laws that have items giving rise to
amount of assets (liabilities) to the requirement to been enacted or those tax
that are recognized in an recognise a deferred substantively enacted by consequences.
entity's statement of financial tax liability, as the end of the reporting Accordingly, current
position; and follows: period. [IAS 12.47] The and deferred tax is
b) Transactions and other measurement reflects recognised as income
events of the current period Liabilities arising the entity's or expense and
that are recognized in an from initial expectations, at the end included in profit or
entity's financial statements. recognition of of the reporting period, loss for the period,
goodwill [IAS as to the manner in except to the extent
It is inherent in the recognition 12.15(a)] liabilities which the carrying that the tax arises
of an asset or liability that the arising from the amount of its assets and from: [IAS 12.58]
reporting entity expects to initial recognition of liabilities will be
recover or settle the carrying an asset/liability recovered or settled. Transactions or
amount of that asset or other than in a [IAS 12.51] events that are
liability. If it is probable that business combination recognised outside of
recovery or settlement of that which, at the time of Where the tax rate or profit or loss (other
carrying amount will make the transaction, does tax base is impacted by comprehensive
future tax payments larger not affect either the the manner in which the income or equity) -
(smaller) than they would be if accounting or the entity recovers its assets in which case the
such recovery or settlement taxable profit [IAS or settles its liabilities related tax amount is
were to have no tax 12.15(b)] (e.g. whether an asset is also recognised
consequences, this Standard sold or used), the outside of profit or
requires an entity to recognize Liabilities arising measurement of loss [IAS 12.61A] a
a deferred tax liability from temporary deferred taxes is business combination
(deferred tax asset), with differences consistent with the way - in which case the
certain limited exceptions. associated with in which an asset is tax amounts are
investments in recovered or liability recognised as
This Standard requires an
entity to account for the tax subsidiaries, settled [IAS 12.51A] identifiable assets or
consequences or transactions branches, and liabilities at the
and other events in the same associates, and Where deferred taxes acquisition date, and
way that it accounts for the interests in joint arise from revalued non- accordingly
transactions and other events arrangements, but depreciable assets (e.g. effectively taken into
themselves. Thus, for only to the extent revalued land), deferred account in the
transactions and other events that the entity is able taxes reflect the tax determination of
recognized in profit or loss, any to control the timing consequences of selling goodwill when
related tax effects are also of the reversal of the the asset [IAS 12.51B] applying IFRS 3
recognized in profit or loss. For differences and it is Deferred taxes arising Business
transactions and other events probable that the from investment Combinations. [IAS
recognized outside profit or reversal will not property measured at 12.66]
loss (either in other occur in the fair value under IAS 40
comprehensive income or foreseeable future. Investment Property Current tax assets
directly in equity), any related [IAS 12.39] reflect the rebuttable and current tax
tax effects are also recognized presumption that the liabilities can only be
outside profit or loss (either in Deferred tax assets investment property will offset in the
other comprehensive income •The initial be recovered through statement of financial
or directly in equity, recognition of an sale [IAS 12.51C-51D] position if the entity
respectively). Similarly, the asset or liability other has the legal right
recognition of deferred tax than in a business If dividends are paid to and the intention to
assets and liabilities in a combination which, shareholders, and this settle on a net basis.
business combination affects at the time of the causes income taxes to [IAS 12.71]
the amount of the bargain transaction, does not be payable at a higher
purchase gain recognized. affect accounting or lower rate, or the Deferred tax assets
profit or taxable entity pays additional and deferred tax
This Standard also deals with profit. taxes or receives a liabilities can only be
the recognition of deferred tax refund, deferred taxes offset in the
assets arising from unused tax A deferred tax asset are measured using the statement of financial
losses or unused tax credits, is recognised for tax rate applicable to position if the entity
the presentation of income deductible temporary undistributed profits has the legal right to
taxes in the financial
statements and the disclosures differences, unused [IAS 12.52A] settle current tax
of information relating to tax losses and amounts on a net
income taxes. unused tax credits to Deferred tax assets and basis and the
the extent that it is liabilities cannot be deferred tax amounts
Amendment to PAS 12 - probable that taxable discounted. [IAS 12.53] are levied by the
Deferred Tax: Recovery of profit will be available same taxing
Underlying Assets against which the Consistent with the authority on the
January 1, 2012 deductible temporary principles underlying IAS same entity or
PAS 12 requires an entity to differences can be 12, the tax different entities that
measure the deferred tax utilised, unless the consequences of intend to realise the
relating to an asset depending deferred tax asset transactions and other asset and settle the
on whether the entity expects arises from: [IAS events are recognised in liability at the same
to recover the carrying amount 12.24] the same way as the time. [IAS 12.74]
of the asset through use or items giving rise to
sale. It can be difficult and Deferred tax assets those tax consequences. The amount of tax
subjective to assess whether for deductible expense (or income)
recovery will be through use or temporary related to profit or
through sale when the asset is differences arising loss is required to be
measured using the fair value from investments in presented in the
model in PAS 40, Investment subsidiaries, statement(s) of profit
Property. The amendment branches and or loss and other
provides a practical solution to associates, and comprehensive
the problem by introducing a interests in joint income. [IAS 12.77]
presumption that recovery of arrangements, are
the carrying amount will, only recognised to The tax effects of
normally be, be through sale. the extent that it is items included in
probable that the other comprehensive
As a result of the amendments, temporary difference income can either be
SIC-21 Income Taxes - will reverse in the shown net for each
Recovery of Revalued Non- foreseeable future item, or the items
Depreciable Assets would no and that taxable can be shown before
longer apply to investment profit will be available tax effects with an
properties carried at fair value. against which the aggregate amount of
The amendments also temporary difference income tax for
incorporate into PAS 12 the will be utilised. [IAS groups of items
remaining guidance previously 12.44] (allocated between
contained in SIC-21, which is items that will and
accordingly withdrawn. The carrying amount will not be
of deferred tax assets reclassified to profit
The amendments are effective are reviewed at the or loss in subsequent
from January 1, 2012. Earlier end of each reporting periods). [IAS 1.91]
application is permitted. period and reduced
to the extent that it Disclosures
Important is no longer probable Major components of
Sections/Contents: that sufficient taxable tax expense (tax
1. Objective profit will be available income) [IAS 12.79]
2. Scope to allow the benefit of Examples include:
3. Recognition of Current part or all of that current tax expense
Tax deferred tax asset to (income) any
4. Initial Measurement of be utilised. Any such adjustments of taxes
Current Tax and Deferred reduction is of prior periods
Tax subsequently amount of deferred
5. Subsequent reversed to the tax expense
Measurement extent that it (income) relating to
of Current Tax and becomes probable the origination and
Deferred that sufficient taxable reversal of temporary
Tax profit will be differences amount
6. Presentation available. [IAS of deferred tax
7. Disclosure 12.37] expense (income)
relating to changes in
A deferred tax asset tax rates or the
is recognised for an imposition of new
unused tax loss carry taxes amount of the
forward or unused benefit arising from a
tax credit if, and only previously
if, it is considered unrecognised tax
probable that there loss, tax credit or
will be sufficient temporary difference
future taxable profit of a prior period
against which the write down, or
loss or credit carry reversal of a previous
forward can be write down, of a
utilised. [IAS 12.34] deferred tax asset
amount of tax
expense (income)
relating to changes in
accounting policies
and corrections of
errors.

•aggregate current
and deferred tax
relating to items
recognised directly in
equity tax relating to
each component of
other comprehensive
income explanation
of the relationship
between tax expense
(income) and the tax
that would be
expected by applying
the current tax rate
to accounting profit
or loss (this can be
presented as a
reconciliation of
amounts of tax or a
reconciliation of the
rate of tax) changes
in tax rates amounts
and other details of
deductible temporary
differences, unused
tax losses, and
unused tax credits
temporary
differences
associated with
investments in
subsidiaries,
branches and
associates, and
interests in joint
arrangements for
each type of
temporary difference
and unused tax loss
and credit, the
amount of deferred
tax assets or
liabilities recognised
in the statement of
financial position and
the amount of
deferred tax income
or expense
recognised in profit
or loss tax relating to
discontinued
operations tax
consequences of
dividends declared
after the end of the
reporting period
information about
the impacts of
business
combinations on an
acquirer's deferred
tax assets
recognition of
deferred tax assets
of an acquire after
the acquisition date.
Other required
disclosures:

•details of deferred
tax assets [IAS
12.82] tax
consequences of
future dividend
payments. [IAS
12.82A]

In addition to the
disclosures
required by IAS
12, some
disclosures
relating to income
taxes are required
by IAS 1
Presentation of
Financial
Statements, as
follows:
Disclosure on the
face of the statement
of financial position
about current tax
assets, current tax
liabilities, deferred
tax assets, and
deferred tax liabilities
[IAS 1.54(n) and (o)]
Disclosure of tax
expense (tax
income) in the profit
or loss section of the
statement of profit or
loss and other
comprehensive
income (or separate
 statement if
presented). [IAS
1.82(d)]
PAS 16 Property, Plant January 1, The principal issues in At cost Cost model Presented as Non-
and Equipment 2005 accounting for property, plant Cost should include The asset is carried at Current Asset
and equipment are the all: cost less accumulated under Line Item
recognition of the assets, the  Its purchase depreciation and im- “Property, Plant
determination of their carrying price, including pairment. [IAS 16.30] and Equipment”
amounts and the depreciation import duties
charges and impairment losses and non- Revaluation model Disclosure
to be recognised in relation to refundable The asset is carried at Requirements:
them. purchase taxes, a revalued amount, • basis for measuring
after deducting being its fair value at carrying amount
Important trade discounts the date of revaluation •depreciation
Sections/Contents: and rebates. less subsequent depre- method(s) used
1. Objective  Any costs ciation and impair- •useful lives or de-
2. Scope directly ment, provided that preciation rates
3. Recognition attributable to fair value can be •gross carrying
4. Initial Measurement bringing the measured reliably. amount and accumu-
5. Subsequent asset to the [IAS 16.31] lated depreciation
Measurement location and and impairment
6. Depreciation condition losses
7. Derecognition necessary for it •reconciliation of the
8. Disclosure to be capable carrying amount at
9. Revaluation of operating in the beginning and
the manner the end of the
intended by period, showing:
management.  additions
 The initial  disposals
estimate of the  acquisitions
costs of through
 dismantling and business
removing the combina-
item and tions
restoring the  revaluation
site on which it increases or
is located, the decreases
obligation for  impairment
which an entity losses
incurs either  reversals of
when the item impairment
is acquired or losses
as a  depreciation
consequence of  net foreign
having used exchange
the item during differences
a particular on transla-
period for tion
purposes other  other
than to produce movements
inventories
during that
period.

Cost should not

include:
 costs of
opening a new
facility;
 costs of
introducing a
 new product or
service(includin
g costs of
advertising and
promotional
activities);
 costs of
conducting
business in a
new location or
with a new
class of
customer
(including costs
of staff
training); and
 administration
and other
general
overhead
costs;

Incidental operations
may occur before or
during the
construction or
development
activities and as
incidental operations
are not necessary to
bring an item to the
 location and condition
necessary for it to be
capable of operating
in the manner
intended by
management, the
income and related
expenses of
incidental operations
are recognised in
profit or loss.
PAS 17 Leases January 1, This Standard prescribes, for Finance lease Finance lease Statement of
2005 lessees and lessors, the receivable receivable is Financial Position
appropriate accounting policies measured at an subsequently Right-of-use asset
and disclosures to apply in amount equal to measured similar to is presented
relation to leases. the net investment an amortized cost either:
in the lease financial asset • Separately from
Important other assets
Sections/Contents: •Gross investments= •Finance income •Together with other
1. Objective Lease payment + (interest income): assets as if they
2. Scope Unguaranteed Computed using the were owned, with
3. Recognition residual value effective interest method disclosure of the line
4. Initial Measurement items that include
5. Subsequent •Lease payments •Lease payments right-of-use assets.
Measurement include: Applied against the ***Right-of-use
6. Reassessment of the •Fixed lease gross investment in the assets that meet the
lease payments, lease to reduce both the definition of
liability including principal and the investment property
7. Presentation in-substance, less unearned finance income are presented as
8. Disclosure lease incentives investment property.
payable. • No need to record
 •Variable lease depreciation since the Lease liabilities are
Payments based asset under leased has presented either:
on already been •Separately from
Index or rate. derecognized other liabilities; or
• Guaranteed •Together with other
Residual Value liabilities, with
•Exercise price of disclosure of the line
purchase items that include
option , the lease liability
if reasonable
certain Statement of profit
•Termination or loss and other
penalty, if comprehensive
reasonably income
certain •Depreciation and
interest expense are
•Net investment= presented separately
Present value of (i.e., offsetting is
Gross Investment or prohibited).
(PV of lease •Interest expense on
payments + PV of the lease liability is a
Unguaranteed component of finance
residual value) costs.

•Unearned interest Disclosure: lessees

income= Gross – finance leases
investment – Net [IAS 17.31]
investment Carrying amount of
asset reconciliation
Initial direct costs: between total
•Included in the minimum lease
initial measurement payments and their
of the net investment present value
in the lease and amounts of minimum
reduce the amount of lease payments at
income recognized balance sheet date
over the lease term. and the present
value thereof, for the
•Include: next year years 2
commissions, legal through 5 combined
fees, and internal beyond five years
costs that are contingent rent
incremental and recognised as an
directly attributable expense total future
to negotiating and minimum sublease
arranging a lease. income under
noncancellable
•Exclude General subleases general
overheads (sales and description of
marketing team) significant leasing
arrangements,
•capitalized except including contingent
direct costs incurred rent provisions,
by a manufacturer or renewal or purchase
dealer lessor under a options, and
sales type lease, restrictions imposed
which are expensed on dividends,
immediately. borrowings, or
further leasing.
Operating lease
Lessor recognizes the Disclosure: lessees
lease payments as – operating leases
income on a straight [IAS 17.35]
line basis over the Amounts of minimum
lease term, unless lease payments at
another systematic balance sheet date
basis is more under noncancellable
representative if the operating leases for:
pattern in which the next year years 2
benefit from the use through 5 combined
of the underlying beyond five years
asset is diminished. total future minimum
- This is equivalent to sublease income
the “short term” and under noncancellable
“low values” leases subleases lease and
for lessees. - A sublease payments
manufacturer or recognised in income
dealer lessor does for the period
not recognize any contingent rent
selling profit on recognised as an
entering into expense general
operating lease description of
because it is not the significant leasing
equivalent of a sale. arrangements,
including contingent
Initial direct cost rent provisions,
Capitalized to the renewal or purchase
carrying amount of options, and
the underlying asset restrictions imposed
and recognize those on dividends,
costs as expense borrowings, or
over the lease term further leasing
on the same basis as
the lease income,
regardless of the Disclosure: lessors
depreciation method – finance leases
used on the [IAS 17.47]
underlying asset. Reconciliation
between gross
Depreciation investment in the
The leased asset lease and the present
remains the asset of value of minimum
the lessor. Therefore lease payments;
the lessor still gross investment and
recognizes present value of
depreciation expense. minimum lease
payments receivable
Finance Lease for:
Receivable the next year years 2
Not recognized under through 5 combined
operating lease beyond five years
unearned finance
Lease bonus income
Accounted as unguaranteed
unearned income and residual values
re recognized as accumulated
income over the allowance for
lease term on the uncollectible lease
same method applied payments receivable
to recognition of contingent rent
lease income. recognised in income
general description of
Advanced Rentals significant leasing
Accounted for as arrangements
unearned income and
recognize it as
 income only when Disclosure: lessors
earned – operating leases
[IAS 17.56]
Security Deposits Amounts of minimum
A lessor recognizes a lease payments at
security deposit balance sheet date
received from the under noncancellable
lessee as payable, operating leases in
measured as an the aggregate and
amortized cost for:
financial liability. the next year years 2
through 5 combined
beyond five years
contingent rent
recognised as in
income general
description of
significant leasing
arrangements
PAS 19 Employee January 1, Employee Benefits Expected Cost An entity shall measure This Standard
(revised) Benefits 2013 (amended 2011)  Short-term termination benefits on prescribes the
Outlines the accounting employee initial recognition, and accounting and
requirement for employee benefits, shall measure and disclosure for
benefits, including short term undiscounted recognize subsequent employee benefits. It
benefits (e.g. wages and amount of the changes, in accordance requires an entity to
salaries, annual leave) post- benefits with the nature of the recognize:
employment benefits such as expected to be employee benefit, a) a liability when an
retirement benefits, other long- paid in respect provided that if the employee has
term benefits (e.g long service of service termination benefits are provided service in
leave) and termination benefits. rendered by an enhancement to exchange for
The standard establishes the employee in an post-employment employee benefits to
principle that the cost providing accounting benefits, the entity shall be paid in the future;
employee benefits should be period is apply the requirements and
recognized in the period in recognized in for post-employment b) an expense when
which the benefit is earned by that period. benefits. the entity consumes
the employee, rather than  Profit-sharing the economic benefit
when it is paid or payable, and and bonus Otherwise, arising from service
outlines how each category of payments, when  If the termination provided by an
employee benefits are and only when it benefits are employee in
measured, providing detailed has legal and expected to be exchange for
guidance in particular about constructive settled wholly employee benefits.
post-employee benefits. obligation to before twelve
make such months after the Presentation
Important payment as a end of the annual  An entity shall
Sections/Contents: result of past reporting period in recognize the
 Changes introduced by events and which the net defined
IAS 19 (2011) as reliable termination benefit benefit liability
compared to IAS 19 estimated of the is recognized, the (asset) in the
(1998) expected entity shall apply statement of
 Scope obligation can the requirements financial
be made. for short-term position.
Definition, Recognition and  Defined employee benefits.  An entity shall
Measurement of: contribution  If the termination recognize
 Short-term employee plan, the benefits are not service cost
benefits amount expected to be and net
 Profit-sharing and bonus recognized in settled wholly interest on the
payments the period is the before twelve net defined
 Types of Post- contribution months after the benefit liability
employment Benefits payable in end of the annual (asset) in the
Plan: exchange for reporting period, Profit or Loss.
1. Defined Contribution service rendered the entity shall  An entity shall
Plan by the apply the recognize the
 1. Defined Benefits Plan employees requirements for Remeasuremen
1. Multi-employer during the other long-term t of the net
plans period. employee benefits. defined benefit
 Defined benefit Ultimate cost liability (asset)
plans that share  Defined benefits in the Other
risks between plan, required to Comprehensive
entities under recognized net Income.
common control defined liability
 State plans or asset. Net Disclosures
 Insured benefits defined benefit  IAS 1
 Actuarial asset is the Presentation of
assumptions used lower of any Financial
in measurement of surplus and Statements
Define Benefits Plan "asset ceiling" requires
 Past service costs (present value disclosure of
 Components of of any economic employee
Defined Benefits benefits benefits
Plan available in the expense.
 Other guidance and form of refunds  An entity shall
Disclosures about from the plan or disclose the
Defined Benefits reduction in amount
Plan future recognized as
 Other long-term benefits contributions to an expense for
 Termination benefits the plan). defined
In order to contribution
measure the plans.
present value of  An entity shall
the post- disclose
employment information
benefit that:
obligations and (a) Explains
 the related the
current service characteristics
cost, it is of its defined
necessary: benefit plans
(a) to apply an and risks
actuarial associated with
valuation them.
method; (b) Identifies
(b) to attribute and explains
benefit to the amounts in
periods of its financial
service; and statements
(c) to make arising from its
actuarial defined benefit
assumption plan, and
 Actuarial (c) Describes
assumptions how its defined
used must be benefit plans
unbiased and may affect the
mutually amount, timing
compatible, and and uncertainty
represents best of the entity’s
estimate of future cash
variables flows.
determining the  An entity shall
ultimate post- disclose:
employee (a) information
benefits cost. about the
characteristics
of its defined
benefit plans,
 including:
(i) The nature
of the benefits
provided by the
plan
(ii) A
description of
the regulatory
framework in
which the plan
operates.
(iii) A
description of
any other
entity’s
responsibilities
for the
governance of
the plan,
 Although this
Standard does
not require
specific
disclosures
about other
long-term
employee
benefits, other
IFRSs may
require
disclosures.
 Although this
Standard does not
require specific
disclosures about
termination benefits,
other IFRSs may
require disclosures.
PAS 20 Government January 1, Accounting for Government At fair value No subsequent Presentation of
Grants 2005 Grants and Disclosure of (a) Government measurement grants related to
Government Assistance grants related to assets:
outlines how to account for assets Government grants
government grants and other (b) Grants related to related to assets,
assistance. Government grants income including
are recognized in profit or loss non-monetary grants
on a systematic basis over the at fair value, shall be
periods in which the entity presented in the
recognizes expenses for the statement of financial
related costs for which the position either by
grants are intended to setting up the grant
compensate, which in the case as deferred income
of grants related to assets or by deducting the
requires setting up the grant as grant in arriving at
deferred income or deducting it the carrying amount
from the carrying amount of of the asset.
the asset.
Presentation of
This Standard shall be applied grants related to
in accounting for, and in the income:
disclosure of, government Grants related to
grants and in the disclosure of income are presented
as part of profit or
other forms of government loss, either
assistance. separately or under a
general heading such
This Standard does not deal as ‘Other income’;
with: alternatively, they
(a) The special problems are deducted in
arising in accounting for reporting the related
government grants in financial expense.
statements reflecting the
effects of changing prices or in The following
supplementary information of a matters shall be
similar nature. disclosed:
(b) Government assistance (a) the accounting
that is provided for an entity in policy adopted for
the form of benefits that are government grants,
available in determining including the
taxable profit or tax loss, or methods of
are determined or limited on presentation adopted
the basis of income tax in the financial
liability. Examples of such statements;
benefits are income tax (b) the nature and
holidays, investment tax extent of government
credits, accelerated grants recognized in
depreciation allowances and the financial
reduced income tax rates. statements and an
(c) Government participation in indication of other
the ownership of the entity. forms of government
(d) Government grants assistance from
covered by PAS 41 Agriculture. which the entity has
directly benefited;
Government grants, including and
non-monetary grants at fair (c) unfulfilled
value, shall not be recognized conditions and other
until there is reasonable contingencies
assurance that: attaching to
(a) the entity will comply with government
the conditions attaching to assistance that has
them; and been recognized.
(b) the grants will be received.

Grants related to Assets

The government grants which
are available for the
construction, acquisition or
purchase of certain assets are
called grants related to assets.
It may be having some certain
conditions attached to it
regarding the nature, use or
location of the asset.

Grants related to Income

These are government grants
other than grants related to
assets, and are normally
available for development or
improvements. Such as grant
for improvement in working
conditions for employees, grant
for the creation of job
vacancies, and grant for the
training of the staff.
 Important
Sections/Contents:
 Objectives
 Scope
 Classification
 Accounting for
Government Grants
 Recognition and
Measurement
 Disclosure
PAS 21 The Effects of January An entity may carry on foreign A foreign currency At the end of each The results and
Changes in 1,2005 activities in two ways. It may transaction shall be reporting period: financial position of
Foreign have transactions in foreign recorded, on initial (a) foreign currency an entity whose
Exchange Rates currencies or it may have recognition in the monetary items shall be functional currency is
foreign operations. In addition, functional currency, translated using the not the currency of a
an entity may present its by applying to the closing rate; hyperinflationary
financial statements in a foreign currency (b) non-monetary items economy shall be
foreign currency. The objective amount the spot that are measured in translated into a
of this Standard is to prescribe exchange rate terms of historical cost different presentation
how to include foreign currency between the in a foreign currency currency using the
transactions and foreign functional currency shall be translated using following procedures:
operations in the financial and the foreign the exchange rate at the (a) assets and
statements of an entity and currency at the date date of the transaction; liabilities for each
how to translate financial of the transaction. and statement of financial
statements into a presentation (c) non-monetary items position presented
currency. that are measured at fair (i.e. including
value in a foreign comparatives) shall
The principal issues are which currency shall be be translated at the
exchange rate(s) to use and translated using the closing rate at the
how to report the effects of exchange rates at the date of that
changes in exchange rates in date when the fair value statement of financial
the financial statements. was measured. position;
(b) income and
This Standard shall be applied: expenses for each
(a) in accounting for statement presenting
transactions and balances in profit or loss and
foreign currencies, except for other comprehensive
those derivative transactions income (i.e. including
and balances that are within comparatives) shall
the scope of IFRS 9 Financial be translated at
Instruments; exchange rates at
(b) in translating the results the dates of the
and financial position of foreign transactions; and
operations that are included in (c) all resulting
the financial statements of the exchange differences
entity by consolidation or the shall be recognized in
equity method; and other comprehensive
(c) in translating an entity’s income.
results and financial position
into a presentation currency. Disclosure :
An entity shall
disclose:
(a) the amount of
exchange differences
recognized in profit
or loss except for
those arising on
financial instruments
measured at fair
value through profit
or loss in accordance
 with IFRS 9; and
(b) net exchange
differences
recognized in other
comprehensive
income and
accumulated in a
separate component
of equity, and a
reconciliation of the
amount of such
exchange differences
at the beginning and
end of the period.
PAS 23 Borrowing January 1, The standard requires that Qualifying assets are
(Revised) Costs 2009 borrowing costs directly not segregated from
attributable to the acquisition, other assets in the
construction or production of a financial statements.
qualifying asset are included in They are presented
the cost of the asset. The as regular assets
standard does not require the under their normal
capitalization of borrowing cost classification as
relating to assets measured at provided under other
fair value and inventories that standards. For
are manufactured or produced example, if the
in large quantities on a qualifying asset is an
repetitive basis. The item of PPE, it is
requirements of this standard presented as part of
are applicable to deal with the PPE and not
accounting treatment of segregated and
borrowing cost. presented
 separately.
Important Sections/
Contents:
1. Core principle
2. Scope
3. Recognition
 Borrowing Cost
eligible for
capitalization
 Excess of the
carrying amount of
the qualifying asset
over recoverable
amount
 Commencement of
capitalization
 Suspension of
capitalization
 Cessation of
capitalization
4. Transitional provisions
5. Disclosure
PAS 24 Related Party January 1, The standard sets out the
(Revised) Disclosures 2011 necessary disclosures of an
entity’s financial statements.
PAS 24 requires a disclosure
on the nature of the related
party relationship as well as
information about those
transactions and outstanding
balances, including
commitments, necessary for
users to understand the
potential effect of the
relationship on the financial
statement.

Important Sections /
Contents:
1. Objective of PAS 24
2. Scope
3. Purpose
4. Pricing transactions
between related parties
5. Disclosures
 Relationship
between parents
and subsidiaries
 The entity having
joint control of or
significant
influence over an
entity
 Key management
personnel
 Close family
members of an
individual
 Management
Compensation
 Transactions with
government-
 related entities
 Items of similar
nature in
aggregate
 Transactions
conducted at arm’s
length terms
Other transactions between
related parties
PAS 26 Accounting and January 1, The standard outlines the Retirement benefit Presented as
Reporting by 2005 requirements for the plan assets shall be Liability in the
Retirement preparation of general purpose carried at fair value. Statement of Net
Benefit Plans financial statements or In the case of Assets Available
financial reports of retirement marketable for Benefits
plans which may be a defined securities, fair value
contribution plan or defined is market value. This includes various
benefit plan. The standard sets Where plan line items:
out a requirement to report a investments are held 1. Net Assets
Statement of Net Assets for which an estimate Available for
Available for Benefits at year of fair value is not Benefits
end that shows the net assets possible, the reason 2. Actuarial present
available for benefits, the why fair value is not value of benefits
actuarial present value of used shall be 3. Excess or Deficit
promised benefits disclosed. of Net assets
distinguishing between vested
and non-vested benefits and Disclosure
the resulting excess or deficit. Requirements :
The standard requires to  a statement of
present investments at fair net assets
value for both the defined available for
contribution plan and defined benefits
benefit plan.  a statement of
changes in net
Important Sections/ assets available
Contents: for benefits
1. Objective of PAS 26  description of
2. Scope funding policy
3. Financial Statement  other details
report of Defined about the plan
Contribution Plan and  a summary of
Defined Benefit Plan significant
4. Actuarial present value of accounting
promised retirement policies
benefits  a description of
a. calculated using the plan and the
current salary effect of any
level; changes in the
b. projected salary plan during the
level period
5. Frequency of actuarial  disclosures for
valuations defined benefit
a. obtained every 3 plans:
years;  actuarial
b. most recent present
valuation value of
6. Valuation of the promised
Retirement Benefit Plan benefit
7. Disclosures and obligations
accompanying notes to  description
financial statements of actuarial
assumption
s
  present
value of
promised
benefit
obligations
PAS 27 Separate January 1, This Standard shall be applied Disclosure
(Amende Financial 2013 in accounting for investments Requirements:
d) Statements in subsidiaries, joint ventures When a parent, in
and associates when an entity accordance with
elects, or is required by local paragraph 4(a) of
regulations, to present IFRS 10, elects not
separate financial statements. to prepare
consolidated
A revised version of PAS 27 financial statements
was issued in May 2011 and and instead
the amended standard is prepares separate
applicable to annual periods financial statements,
beginning on or after January it shall disclose in
1, 2013. Earlier application is those separate
permitted. financial
statements:
Important Sections /
Contents: (a) the fact that the
2. Objective of PAS 27 financial statements
3. Scope are separate
4. Definition of Financial financial
Statements statements; that the
5. Preparation of separate exemption from
financial statements consolidation has
6. Disclosure been used; the
7. Effective date and name and principal
transition place of business
(and country of
incorporation, if
different) of the
entity whose
consolidated
financial statements
that comply with
International
Financial Reporting
Standards have
been produced for
public use; and the
address where those
consolidated
financial statements
are obtainable.

(b) a list of
significant
investments in
subsidiaries, joint
ventures and
associates,
including:
(i) the name of
those investees.
(ii) the principal
place of business
(and country of
incorporation, if
different) of those
investees.
(iii) its proportion of
the ownership
interest (and its
proportion of the
voting rights, if
different) held in
those investees.

(c) a description of
the method used to
account for the
investments listed
under (b).

When an investment
entity that is a
parent (other than a
parent covered by
paragraph 16)
prepares, in
accordance with
paragraph 8A,
separate financial
statements as its
only financial
statements, it shall
disclose that fact.
The investment
entity shall also
 present the
disclosures relating
to investment
entities required by
IFRS 12 Disclosure of
Interests in Other
Entities.
PAS 28 Investments in January 1, This Standard was amended to Equity Method There are no
(Amende Associates and 2013 incorporate accounting Under equity method disclosures specified
d) Joint Ventures requirements for joint  On initial in this Standard.
ventures. Once an entity has recognition, the Instead, IFRS 12
determined that it has an investment in an Disclosure of
interest in a joint venture, it associate or a Interests in Other
accounts for the investment joint venture is Entities outlines the
using the equity method in recognised at disclosures required
accordance with IAS 28 cost, and the for entities with joint
(amended in 2011). carrying amount control of, or
is increased or significant influence
The amended standard is decreased to over, an investee.
applicable to annual periods recognise the
beginning on or after January investor’s share
1, 2013. Earlier application is of the profit or
permitted. loss of the
investee after
Important Sections/ the date of
Contents: acquisition and
2. Objective of PAS 28 the investor’s
3. Scope share of the
4. Significant Influence investee’s profit
5. Equity Method or loss is
recognised in
 the investor’s
profit or loss.
 Distributions
received from
an investee
reduce the
carrying amount
of the
investment.
 Adjustments to
the carrying
amount may
also be
necessary for
changes in the
investor’s
proportionate
interest in the
investee arising
from changes in
the investee’s
other
comprehensive
income such as
changes arising
from the
revaluation of
property, plant
and equipment
and from foreign
exchange
 translation
differences and
the investor’s
share of those
changes is
recognised in
the investor’s
other
comprehensive
income.
Exemptions from
applying the Equity
Method
 Entity is
subsidiary of
another entity
 Entity’s
instrument not
traded
 Entity is not in
process of
issuing publicly
traded
securities
 The
ultimate/any
intermediary
parent
produces
consolidated FS
When held by
venture capital and
similar entities. The
used of FVTPL in line
with IFRS 9.
When classified held
for sale. The used of
IFRS 5
Discontinuing the
use of the equity
method
 If the
investment
becomes a
subsidiary, the
entity shall
account for its
investment in
accordance with
IFRS 3 Business
Combinations
and IFRS 10
Consolidated
Financial
Statements.
 If the retained
interest in the
former associate
or joint venture
is a financial
 asset, the entity
shall measure
the retained
interest at fair
value. The fair
value of the
retained interest
shall be
regarded as its
fair value on
initial
recognition as a
financial asset in
accordance with
IFRS 9 Financial
Instruments.

 The entity shall

recognise in
profit or loss
any difference
between:
The fair value of
any retained
interest and any
proceeds from
disposing of a
part interest in
the associate or
joint venture;
and the
 carrying amount
of the
investment at
the date the
equity method
was
discontinued.
 When an entity
discontinues the
use of the equity
method, the
entity shall
account for all
amounts
previously
recognised in
other
comprehensive
income in
relation to that
investment on
the same basis
as would have
been required if
the investee had
directly disposed
of the related
assets or
liabilities.

PAS 29 Financial January 1, This Standard shall be applied Disclosure

 Reporting in 2005 to the financial statements, Requirements
Hyperinflationa including the consolidated The following
ry Economies financial statements, of any disclosures shall be
entity whose functional made:
currency is the currency of a (a) the fact that the
hyperinflationary economy. financial statements
and the
Important Sections / corresponding figures
Contents for previous periods
2. Scope have been restated
3. The restatement of for the changes in
financial statements the general
4. Economies ceasing to be purchasing power of
hyperinflationary the functional
Disclosure currency and, as a
result, are stated in
terms of the
measuring unit
current at the end of
the reporting period;
(b) whether the
financial statements
are based on a
historical cost
approach or a
current cost
approach; and
(c) the identity and
level of the price
index at the end of
the reporting period
 and the movement in
the index during the
current and the
previous reporting
period.

The disclosures
required by this
Standard are needed
to make clear the
basis of dealing with
the effects of
inflation in the
financial statements.
They are also
intended to provide
other information
necessary to
understand that
basis and the
resulting amounts.
PAS 32 Financial January 1, Financial Instruments:
Instruments: 2005 Presentation outlines the
Presentation accounting requirements for
the presentation of financial
instruments, particularly as to
the classification of such
instruments into financial
assets, financial liabilities and
equity instruments. The
standard also provides
 guidance on the classification
of related interest, dividends
and gains/losses, and when
financial assets and financial
liabilities can be offset.

Important
Sections/Contents:

1. Objectives of IAS 32
2. Scope
3. Classification of Financial
Instruments
A. Financial Asset
B. Financial Liability
C. Equity Instrument
4. Classification as liability or
equity
5. Contingent settlement
provisions
6. Compound financial
Instruments
7. Offsetting
8. Disclosures
PAS 33 Earnings per January Earnings per Share sets out
Share 1,2005 how to calculate both basic
earnings per share (EPS) and
diluted (EPS). The calculation
of Basic EPS is based on the
weighted average number of
ordinary shares outstanding
 during the period, whereas
diluted EPS also includes
dilutive potential ordinary
shares (such as options and
convertible instruments) if they
meet certain criteria.

Important
Sections/Contents:

1. Objectives of Earnings per

Share
2. Scope
3. Classification of Ordinary
Share
A. Dilution
B. Anti-dilution
4. Requirements to present
EPS
A. Basic EPS
B. Diluted EPS
C. Retrospectives
Adjustments
5. Disclosure
PAS 34 Interim January 1, Interim Financial Reporting
Financial 1999 applies when an entity
Reporting prepares an interim financial
report, without mandating
when an entity should prepare
such a report. Permitting less
information to be reported
than in annual financial
statements (on the basis of
providing an update to those
financial statements), the
standard outlines the
recognition, measurement and
disclosure requirements for
interim reports.

Important
Sections/Contents:

1. Objective of IAS 34
2. Scope
3. Content of an interim
financial report
A. Minimum components
of an interim financial
report
B. Form and Content of
interim financial
statements
C. Significant events and
transactions
D. Other disclosures
E. Disclosure of
compliance with IFRS
F. Periods for which
interim financial
statements are required to
be presented
G. Materiality
 4. Disclosure in annual
financial statements
5. Recognition and
measurement
A. Same accounting
policies as annual
B. Revenues received
seasonally, cyclically, or
occasionally
C. Costs incurred unevenly
during the financial year
D. Applying the
recognition and
measurement principles
E. Use of estimates
Restatement of previously
reported interim
PAS 36 Impairment of January 1, This standard on Impairment The impairment loss
Assets 2005 of Assets prescribes the is recognized in profit
procedures that an entity or loss and presented
applies to ensure that its separately in the
assets are carried at no more income statement.
than their recoverable amount.
An asset is carried at more The reversal of the
than its recoverable amount if impairment loss shall
its carrying amount exceeds be recognized
the amount to be recovered immediately as
through use or sale of the income in the income
asset. If this is the case, the statement.
asset is described as impaired
and the Standard requires the Disclosure:
entity to recognize on Disclosure by class of
impairment loss. The standard assets:
also specifies when an entity  Impairment
should reverse on impairment losses
loss and prescribes disclosure. recognized in
profit or loss
Important Sections /  Impairment
Contents: losses reversed
1. Objective of PAS 36 in profit or loss
2. Scope  Which line
3. Key Definitions items of the
4. Indications of statement of
Impairment comprehensive
5. Determining Recoverable income
Amount  Impairment
6. Fair Value Less Costs of losses on
Disposal revalued assets
7. Value in Use reversed in
8. Discount Rate other
9. Recognition of an comprehensive
Impairment Loss income
10. Cash-generating
Units Disclosure by
11. Impairment of reportable segment:
Goodwill  Impairment
12. Reversal of an losses
Impairment Loss recognized
13. Disclosure  Impairment
losses reversed

If an individual
impairment loss
(reversal) is
material, disclose:
1. Events and
circumstances
resulting in the
impairment loss
2. Amount of the loss
3. Individual
asset:nature and
segment to which it
relates
4. Cash generating
unit: description,
amount of
impairment loss
(reversal) by class of
assets and segment
5. If recoverable
amount is fair value
less cost to sell,
disclose the basis for
determining air value
6. If recoverable
amount is value in
use, disclose the
discount rate

If impairment loss
recognized
(reversed)
 material in
aggregate to the
financial statement
as a whole,
disclose:
1. Main classes of
assets affected
2. Main events and
circumstances

Disclose detailed
information about
the estimates used to
measure recoverable
amounts of cash
generating units
containing goodwill
or intangible assets
with indefinite useful
lives.
PAS 37 Provisions, January This standard ensures that At Best Estimate Provisions are
Contingent 1, 2005 appropriate recognition criteria  Making the presented in the
Liabilities and and measurement bases are estimate Statement of
Contingent applied to provisions, requires Financial Position
Assets contingent liabilities and management’s separately from
contingent assets and that judgement, other types of
sufficient information is supplemented liabilities.
disclosed in the note to enable by experienced
users to understand their from similar Disclosure:
nature, timing and amount. transactions,
and in some Reconciliation for
 cases, reports each class of
Important Sections/ from provision:
Contents: independent  Opening
1. Objective of PAS 37 experts. The Balance
2. Scope estimates also  Additions
3. Key Definition consider events  Used (amounts
4. Recognition of Provisions after the charged
5. Measurement of reporting against the
Provisions period. provision)
6. Remeasurement of  Unused
Provisions At Expected Value amounts
7. Restructuring  If provisions reversed
8. Use of Provisions being  Unwinding of
9. Disclosure measured the discount, or
involves a large changes in
population of discount rate
items, the  Closing Balance
obligation is
measured at its A prior year
expected value. reconciliation is not
Expected value required.
is computed by
weighting all For each class of
possible provision, a brief
outcomes by description of:
their associated  Nature
probabilities.  Timing
 Uncertainties
At Mid-Point  Assumptions
 If there is a  Reimbursement
continuous , if any.
 range of
possible
outcomes, and
each point in
that range is a
likely as any
other, the mid-
point of the
range is used.
PAS 38 Intangible January 1, This Standard prescribes the PAS 38, paragraph 24, The entity may choose Disclose the
Assets 2005 accounting treatment for provides that an to measure the following for each
intangible assets that are not intangible asset shall intangible asset after class of intangible
dealt with specifically in be measured initially recognition using: assets:
another Standard. The at cost. 1. Whether useful
Standard requires an entity to Cost model lives are indefinite or
recognize an intangible asset The cost of an – cost less accumulated finite, and if finite,
if, and only if, certain criteria intangible asset amortization and accum the useful lives or
are met. The Standard also depends on the ulated impairment loss. the amortization rate
specifies how to measure the following: 1. Amortization
carrying amount of intangible Revaluation model method
assets and requires certain If Acquired – revalued amount 2. The gross carrying
disclosures regarding Separately – (FMV) less accumulated amount and any
intangible assets. at cost plus amortization and accum accumulated
any directly ulated impairment loss. amortization
Important Sections / attributable cost of This model may only be aggregated with
Contents: preparing the asset on used if the intangible accumulated
1) Objective of PAS 38 its intended use asset has an active impairment losses at
2) Scope (capitalized). market. the beginning and
3) Key Definitions end of the period.
4) Recognition If Part of Business Other measurement 3. The line item in
5) Classification of Intangible Combination – fair considerations the income
Assets based on useful life
6) Subsequent Expenditure
7) Disclosure
market value at date Amortization statement in which
of acquisition. – if the asset has: any amortization of
If due to  Limited/Finite Life – intangible asset is
a Government amortized over their included
Grant – either fair useful life 4. Additions,
value or nominal  Indefinite Life – separately showing
amount (zero) plus only tested for those internally
any expenditure that impairment and not generated, those
is directly attributable amortized acquired separately
to preparing the asset Note that the useful life and those acquired
for its intended use. of an asset is indefinite if through business
If there is no foreseeable combination.
from Exchange – fair limit on the period when 5. Intangible assets
market value. the asset may generate classified as held for
If Internally economic benefits to the sale in accordance
Generated – entity. with PFRS5
all directly attributable 6. Increases and
costs necessary to Impairment decreases in
create the asset will – an impairment loss intangible assets
be capitalized. must be recognized from resulting from
an intangible asset revaluation
when: 7. Impairment losses
Recoverable Amount < and reversal of
Carrying Amount impairment losses.
Recoverable amount is 8. Net exchange
the higher of fair value differences on
less cost to translation.
sell and value in 9. The carrying
use (present value of the amount and
future cash flows). remaining
amortization period
of intangible assets
that are material to
the entity’s financial
statements.
10. The carrying
amount and
remaining
amortization period
of intangible assets
that are material to
the entity’s financial
statements.
11. The carrying
amount of intangible
assets whose title is
restricted or pledged
as collateral security.
12. Contractual
commitments for the
acquisition of
intangible assets.
13. Intangible assets
acquired by way of
government grant
and initially
recognized at fair
value.
15. The amount of
research and
development
expenditure
 recognized as
expense during the
period.
PAS 39 Financial January 1, This Standard establishes At Cost At Fair Value Disclosure
Instruments: 2005 principles for recognizing and  All financial Subsequent Requirements:
Recognition and measuring financial assets, assets and Measurement – IFRS requires certain
Measurement financial liabilities and some liabilities must Financial Assets not disclosures to be
contracts to buy or sell non- be initially Designated as Hedges presented by
financial items. Requirements measured at After initial recognition, category of
for presenting information cost, which is an enterprise should instrument based on
about financial instruments are the fair value of measure financial the IAS 39
in IAS 32 Financial the assets, including measurement
Instruments: Presentation. consideration derivatives that are categories. Certain
Requirements for disclosing given or assets, at their fair other disclosures are
information about financial received   for values, without any required by class of
instruments are in IFRS 7 it. Transaction deduction for transaction financial instrument.
Financial Instruments: costs are costs that it may incur For those disclosures
Disclosures. included in the on sale or other an entity must group
initial disposal, except for the its financial
Important Sections/ measurement following categories of instruments into
Contents: of all financial financial assets, which classes of similar
1. Objectives of PAS 39 assets should be measured instruments as
2. Scope and liabilities. under the provisions of appropriate to the
3. Four categories of (PAS 39.66). the following paragraph: nature of the
Financial Assets  loans and information
4. Measurement of Financial receivables presented. [IFRS
Assets originated by the 7.6]
5. Disclosure enterprise and not  financial assets
Amendments to PAS 39 held for trading; measured at
 held-to-maturity fair value
investments; and through profit
 any financial asset and loss,
that does not have showing
a quoted market separately
price in an active those held for
market and whose trading and
fair value cannot those
be reliably designated at
measured. initial
recognition
Amortized cost  held-to-
 “Loans and maturity
receivables investments
originated by the  loans and
enterprise” and receivables
“held-to-maturity  available-for-
investments” must sale assets
be subsequently  financial
measured at liabilities at fair
amortized cost value through
using the effective profit and loss,
interest rate showing
method if they separately
have a fixed those held for
maturity. trading and
 If the fair value of those
a "held for trading" designated at
or "available-for- initial
sale" financial recognition
asset can be  financial
reliably measured, liabilities
it must be measured at
 subsequently amortized cost
measured at fair  special
value (without disclosures
deduction of about financial
disposal costs). assets and
• If a "held for trading" financial
or "available for sale” liabilities
financial asset does not designated to
have a quoted market be measured at
price in an active market fair value
and its fair value cannot through profit
be reliably measured, it and loss, [IFRS
must be subsequently 7.9-11]
measured as follows:  reclassifications
- if it has a fixed of financial
maturity, measure instruments
the financial asset from one
at amortized cost category to
using the effective another (e.g.
interest rate from fair value
method and to amortized
review for cost or vice
impairment at versa) [IFRS
each balance date; 7.12-12A]
- if it has no fixed  information
maturity, measure about financial
the financial asset assets pledged
at cost and review as collateral
for impairment at and about
each balance date. financial or
non-financial
Subsequent assets held as
Measurement – collateral [IFRS
Financial Liabilities 7.14-15]
not Designated as  reconciliation
Hedges of the
 Financial liabilities allowance
other than those account for
that are "held for credit losses
trading" and (bad debts) by
derivatives that class of
are liabilities must financial assets
be subsequently [IFRS 7.16]
measured at  information
amortized cost. about
After initial recognition, compound
an enterprise should financial
measure liabilities held instruments
for trading and with multiple
derivatives that are embedded
liabilities at fair value, derivatives
except for a derivative [IFRS 7.17]
liability that is linked to  Information
and that must be settled about hedge
by delivery of an accounting,
unquoted equity including:
instrument whose fair [IFRS 7.22]
value cannot be  Qualitative
measurably measured, disclosures
which should be [IFRS 7.33]
measured at cost.  Quantitative
disclosures
 [IFRS 7.34]
 Credit Risk
[IFRS 7.36-38]’
 Liquidity Risk
[IFRS 7.39]
Market risk [IFRS
7.40-42]
PAS 40 Investment January 1, The Standard prescribes the An entity recognizes (1) The entity has two Disclose the
Property 2005 accounting treatment for a biological asset or options to account for following:
investment property and agriculture produce the Investment property  The
related disclosure only when: at reporting date: measurement
requirements. 1. The entity controls (2) Whichever model is model used by
the asset as a result chosen; it should be the entity
This standard also applies to: of past events applied for all the example the
 The books of lessee, for 2. It is probable that investment Properties cost or fair
the accounting treatment future economic held by the entity. value model.
of Property Interest held benefits will flow to  The
by lessee. the entity; Option 1: Fair value circumstance in
 The books of lessor, for 3. The fair value or model which entity
the accounting treatment cost of the asset can *an investment property has opted the
of investment property be measured reliably. is carried at fair value at classification
provided to lessee under Investment property the reporting date. option for
operating lease. shall be initially *it is determined in the property
measured at cost, line with the standard interest.
including the IFRS 12 Fair Value  How entity has
transaction cost determined the
 Purchase price Measurement fair value for
Any directly related  a gain or loss from investment
cost such as remeasurement to property.
(professional or legal fair value shall be  Any amounts
charges, property recognized in recognized in
transfer taxes and profit or loss statements of
any other transaction  once the entity the profit or
costs). opts to use the fair loss in respect
value model, it of:
should be used for - Any rentals
all the investment from
properties, expect investment
investment property
property for which - Any operating
fair value is not expenses such
available under as repair and
specified maintenance
circumstances.  For the
 The entity which investment
has opted to property under
measure an cost model, the
investment entity should
property at fair disclose:
value, it will - Depreciation
continue to Method
measure the - Estimate of
property at fair useful life
value, up to the - Its gross
date of disposal or carrying
until the date of amount
changes in use of - Any amount
the property. of impairment
loss
Option 2: Cost model  For the
 Second option for property for
subsequent which fair value
 measurement of could not be
investment determined and
property is a cost the entity has
model. to measure
 it refers to the such property
standard IAS 16 under cost
Property, Plant model, the
and Equipment. It entity should
means you need to disclose:
take the same - Nature of the
methodology as in investment
IAS 16. property
 Cost less - Reason why
accumulated the fair value is
Depreciation less not determined
Accumulated  For the
Depreciation less property which
Accumulated has been
Impairment loss. disposed of the
 It can actually entity should
switch from cost disclose:
model to fair value - Its carrying
model or vice amount on
versa from fair disposal date
value model to - Any amount of gain
cost model but or loss on disposal
only if the change
result in the
financial
statements
providing better,
 more reliable
information about
company’s
financial position,
result and other
events.
PAS 41 Agriculture January 1, The Standard prescribes the An enterprise should Presentation:
2005 accounting and disclosure recognize a biological Biological assets and
related to agriculture activity. asset or agriculture agricultural produce
Presumes that fair value can produce only when: should be presented
be reliably measured for most  The enterprise as separate line
biological assets. However, controls the items under the
that presumption can be asset as a following headings:
rebutted for a biological asset result of part
that, at the time it is initially events Non-current assets
recognized, does not have a  It is probable  Property, Plant
quoted market price in an that future and Equipment
active market and for which economic – would include
alternative fair value benefits will bearer plants
measurements are determined flow to the  Biological
to be clearly unreliable. In such enterprise assets – would
a case, the asset is measured The fair value or cost include all
at cost less accumulated of the asset can be agricultural
depreciation and impairment measure reliably. produce to be
losses. But the entity must still harvested more
measure all of its other than 12
biological assets at fair value months from
less costs to sell. If the reporting
circumstances change and fair date, livestock
value becomes reliably to be held for
measurable, a switch to fair more than 12
value less costs to sell is months and
required. trees cultivated
for lumber and
fruit.
Current assets
 Biological
assets – would
include produce
to be harvested
within 12
months of
reporting date,
livestock to be
slaughtered
within 12
months and
annual crops
e.g. wheat,
maize
 Inventories –
includes the
inventories
produced from
agricultural
produce e.g.
the Tea to be
sold, produced
from the tea
leaves
Disclosure
requirements:
 aggregate gain
or loss from
the initial
recognition of
biological
assets and
agricultural
produce and
the change in
fair value less
costs to sell
during the
period
 description of
the nature of
an entity's
activities with
each group of
biological
assets and
non-financial
measures or
estimates of
physical
quantities of
output during
the period and
assets on hand
at the end of
the period
 information
 about biological
assets whose
title is
restricted or
that are
pledged as
security
commitments
for
development or
acquisition of
biological
assets
 financial risk
management
strategies
 reconciliation
of changes in
the carrying
amount of
biological
assets,
showing
separately
changes in
value,
purchases,
sales,
harvesting,
business
combinations,
 and foreign
exchange
differences
 Separate
and/or
additional
disclosures are
required where
biological
assets are
measured at
cost less
accumulated
depreciation

If fair value cannot

be measured
reliably, additional
required disclosure
includes:
 description of
the asset
 an explanation
of why fair
value cannot
be reliably
measured
 if possible, a
range within
which fair value
is highly likely
 to lie
 depreciation
method
 useful lives or
depreciation
rates
 gross carrying
amount and
the
accumulated
depreciation,
beginning and
ending
PFRS 1 First-time July 1, This Standard ensures that an
(Revised) Adoption of 2009 entity's first PFRS financial
Philippine statements, and its interim
Financial financial reports
Reporting for part of the period covered
Standards by those financial statements,
contain high quality
information that:
a) is transparent for users and
comparable over all periods
presented;
b) provides a suitable starting
point for accounting in
accordance with International
Financial
Reporting Standards (IFRSs);
and
c) can be generated at a cost
 that does not exceed the
benefits.
PFRS 2 Share-based January 1, This standard for share-based For equity-settled Modifications, Goods or services
Payment 2005 payment contains share-based cancellations, and acquired should be
requirements in the recognition payments: settlements: recognized as
of share-based payment (a)Non-employees – (a)If an entity modifies a EXPENSES in
transactions (granted shares, Order of priority in share-based payment Profit/Loss unless
share options, or share measurement: transaction, the cost of they qualify for
appreciation rights) in its 1. Fair value of the original share-based recognition as
financial statements, including goods or payment must be ASSETS.
transactions with employees or services recognized as if it has
other parties to be settled in received not been modified. If the -If the goods and
cash, other assets, or equity 2. Fair value of modification increases services were
instruments of the entity. equity the fair value of the acquired in an
Requirements are specifically instruments share-based payment, equity-settled
included for equity-settled and granted the entity must share-based
cash-settled share-based (b)Employees and recognize the additional payment
payment transactions, as well Others providing cost. transaction, then
as those where the entity or similar services – (b)If the share-based the corresponding
supplier has a choice of cash or Order of priority in payment transaction is increase is
equity instruments. measurement: cancelled or settled recognized in equity.
Amendments to PFRS 2 issued 1. Fair value of during the vesting - If the goods and
by the Board at June 2016 equity period, it is treated as services were
clarifies the accounting for (a) instruments an acceleration of acquired in a cash-
the effects of vesting and non- granted vesting and the entity settled share-
vesting conditions on the 2. Intrinsic value immediately recognizes based payment
measurement of cash-settled For cash-settled the remaining amount transaction, then
share-based payments; (b) share-based that it otherwise would the corresponding
share-based payment payments: have recognized for increase is
transactions with a net The entity measures services over the recognized as a
settlement feature for the fair value of remaining period. liability.
withholding tax obligations; goods and services
and (c) a modification to the received based on Disclosures:
terms and conditions of a the fair value of the -The nature and
share-based payment that liability at each extent of share-
changes the classification of period. based payment
the transactions from cash- For transactions with arrangements that
settled to equity-settled. non-employees – existed during the
The equity period.
Important component is -How the fair value
sections/contents: computed as the of the goods and
1. Objective of PFRS 2 difference between services received, or
2. Scope (a) the fair value of the fair value of the
3. Recognition goods and services equity instruments
4. Equity-settled share- received and (b) the granted, during the
based payment fair value of the debt period was
transactions component at the determined
5. Cash-settled share-based date the goods or -The effect of share-
payment transactions services are received. based payment
6. Share-based payment transactions on the
transactions with a net If there is a entity’s profit or loss
settlement feature for vesting condition: for the period and on
withholding tax 1. Market vesting its financial position.
obligations conditions are
7. Share-based payment taken into
transactions with cash account when
alternatives estimating the
8. Share-based payment share-based
transactions among payment at
group entities (2009 grant date.
amendments) 2. Non-market
9. Disclosures vesting
 10. Effective Date conditions are
11. Transitional taken into
Provisions account by
subsequently
adjusting the
number of
share-based
payment
transactions
expected to
vest.
PFRS 3 Business July 1, This standard improves the
(Revised) Combinations 2009 relevance, reliability and
comparability of the
information that a reporting
entity provides in its financial
statement about a business
combination and its effects. To
accomplish that, this PFRS
establishes principles and
requirements for how the
acquirer:
a) recognizes and measures in
its financial statements the
identifiable assets acquired,
the liabilities
assumed and any non-
controlling interest in the
acquiree;
b) recognizes and measures
the goodwill acquired in the
business combination or a gain
from a
bargain purchase; and
c) determines what information
to disclose to enable users of
the financial statements to
evaluate the nature and
financial effects of the business
combination.

The revised Standards

supersede the existing PFRS 3
and PAS 27, respectively,
effective July 1,
2009. Entities are permitted to
adopt the revised Standards
earlier.

Business combinations are an

important feature of the capital
markets. Over the past decade
the average annual value of
corporate acquisitions
worldwide has been the
equivalent of 8-10 percent of
the total market capitalization
of listed securities.
The revised PFRS 3 reinforces
the existing PFRS 3 model but
remedies problems that have
emerged in its application.
PFRS 4 Insurance January 1, This Standard specifies the The total of The sum of the An entity shall
Contracts 2005 financial reporting for insurance fulfillment cash liability for remaining present separately
contracts by any entity that flows (FCF) and the coverage and the the statement of
issues such contracts contractual service liability for incurred financial position the
(described in this PFRS as an margin (CSM) claims carrying amount of
insurer) until the Board groups of:
completes the second phase of On initial recognition, On subsequent  Insurance
its project on insurance an entity shall measurement, the contracts
contracts. In particular, this measure a group of carrying amount of a issued that are
PFRS requires: insurance contracts at group of insurance assets;
a) limited improvements to the total of: contracts at the end of  Insurance
accounting by insurers for each reporting period contracts
insurance contracts; and The fulfillment cash shall be the sum of: issued that are
b) disclosure that identifies and flows (FCF) which liabilities;
explains the amounts in an comprise: The liability for  Reinsurance
insurer's financial statements  Estimates of remaining coverage contracts held
arising from insurance contracts future cash comprising: that are
and helps users of those flows;  The FCF related assets; and
financial statements understand  An to future  Reinsurance
the amount, timing and adjustment services and; contracts held
uncertainty of future cash flows to reflect the  The CSM of the that are
from insurance contracts. time value of group up to liabilities.
money (TVM) that date;
Important and the An entity shall
Sections/Contents: financial risks The liability for incurred disaggregate the
1. Objectives of PFRS 4 associated claims, comprising the amounts recognized
2. Scope of PFRS 4 with future FCF related to past in the statement(s)
3. Accounting policies of cash flows; service allocated to the of financial
PFRS 4 and group at that date. performance into:
4. Changes in accounting  A risk  An insurance
policies of PFRS 4 adjustment service result,
 5. Remeasuring insurance for non- comprising
liabilities financial risk insurance
6. Prudence revenue and
7. Future investment *The contractual insurance
margins service margin (CSM) service
8. Asset Classifications expenses; and
9. Disclosures  Insurance
finance income
or expenses

Income or expenses
from reinsurance
contracts held shall
be presented
separately from the
expenses or income
from insurance
contracts issued.
PFRS 5 Non-current January 1, This Standard prescribes the At the lower of its On subsequent Assets classified as
Assets Held for 2005 accounting for assets held for carrying amount remeasurement of a held for sale, and the
Sale and sale, and the presentation and and fair value less disposal group, the assets and liabilities
Discontinued disclosure of discontinued costs to carrying amounts of included within a
Operations operations. Sell any assets and liabilities disposal group
 If a newly that are not within the classified as held for
In particular, the PFRS acquired asset scope of the sale, must be
requires: (or disposal measurement presented separately
a) assets that meet the criteria group) meets requirements of this on the face of the
to be classified as held for sale the criteria to be IFRS, but are included in statement of financial
to be measured at the lower of classified as a disposal group position.
carrying amount and fair value held for sale, it classified as held for
less costs to sell, and is being sale, shall be
depreciation on such assets to measured on remeasured in
cease; and initial accordance with
b) assets that meet the criteria recognition at applicable IFRSs before
to be classified as held for sale the lower of its the fair value less costs
to be presented separately in carrying amount to sell of the disposal
the statement of financial had it not been group is remeasured.
position and the results of so classified (for
discontinued operations to be example, cost)
presented separately in the and fair value
statement of comprehensive less costs to
income. sell. Hence, if
the asset (or
Important Sections/ disposal group)
Contents: is acquired as
1. Objectives of PFRS 5 part of business
2. Scope of PFRS 5 combination, it
3. Measurement of Non- shall be
current Assets (or measured at fair
Disposal Groups) value less costs
classified as held for sale to sell.
4. Presentation and
Disclosure An entity shall
measure a non‐
current asset (or
disposal group)
classified as held
for distribution to
owners at the lower
of its carrying
amount and fair
value less costs to
 distribute.

PFRS 6 Exploration for January 1, The Standard: At cost Cost model or An entity treats
and Evaluation 2006  permits an entity to An entity shall Revaluation model exploration and
of Mineral develop an accounting determine an After recognition, an evaluation assets as
Resources policy for exploration and accounting policy entity shall apply either a separate class of
evaluation assets without specifying which the cost model or the assets and makes
specifically considering expenditures are revaluation model to the the disclosures
the requirements of recognized as exploration and required by either
paragraphs 11 and 12 of exploration and evaluation assets. If the PAS 16 Property,
PAS 8, Accounting evaluation assets and revaluation model is Plant and Equipment
Policies, Changes in apply the policy applied (either the or PAS 38 Intangible
Accounting Estimates and consistently. In model in PAS 16 Assets consistent
Errors. Thus, an entity making this Property, Plant and with how the assets
adopting PFRS 6 may determination, an Equipment or the model are classified.
continue to use the entity considers the in PAS 38), it shall be
accounting policies degree to which the consistent with the
applied immediately expenditure can be classification of the
before adopting the PFRS. associated with finding assets.
This includes continuing specific mineral
to use recognition and resources.
measurement practices
that are part of those The following are
accounting policies. examples of
 requires entities expenditures that
recognizing exploration might be included
and evaluation assets to in the initial
perform an impairment measurement of
test on those assets when exploration and
facts and circumstances evaluation assets (the
suggest that the carrying list is not
 amount of the assets may exhaustive):
exceed their recoverable (a) acquisition of
amount. rights to explore;
 varies the recognition of (b) topographical,
impairment from that in geological,
PAS 36, Impairment of geochemical and
Assets, but measures the geophysical studies;
impairment in accordance (c) exploratory
with that Standard once drilling;
the impairment is (d) trenching;
identified. (e) sampling; and
 requires disclosure of (f) activities in relation
information that identifies to evaluating the
and explains the amounts technical feasibility
recognized in its financial and commercial
statements arising from viability of extracting
the exploration for and a mineral resource.
evaluation of mineral
resources, including (a)
its accounting policies for
exploration and
evaluation expenditures
including the recognition
of exploration and
evaluation assets, and (b)
the amounts of assets,
liabilities, income and
expense and operating
and investing cash flows
arising from the
exploration for and
 evaluation of mineral
resources.

Important
Sections/Contents:
1. Objectives of PFRS 6
2. Scope of PFRS 6
3. Recognition of Exploration
and Evaluation of Assets
4. Measurement of
Exploration and
Evaluation of Assets
5. Presentation
6. Impairment
7. Disclosure

PFRS 7 Financial January 1, This Standard requires entities

Instruments: 2007 to provide disclosures in their
Disclosures financial statements that enable
users to evaluate:
a) the significance of financial
instruments for the entity's
financial position and
performance; and
b) the nature and extent of
risks arising from financial
instruments to which the entity
is exposed during the period
and at the end of the reporting
period, and how the entity
manages those risks.
The principles in this Standard
complement the principles for
recognizing, measuring and
presenting financial assets and
financial liabilities in PAS 32
Financial Instruments:
Presentation and PAS 39
Financial Instruments:
Recognition and Measurement.
✔ Related / Significant
Amendments to PFRS 7
and Related Standards:
[1] Amendment to PFRS 7
was made accordingly to, an
entity that applies PFRS 7 for
annual periods beginning on or
after January 1, 2007 need not
present comparative
information for the disclosures
required by paragraphs 31-42,
unless the disclosure was
previously required under PAS
30 or PAS 32.
[2] Amendment to PAS 39 &
PFRS 7 (Reclassification of
Financial Assets) ; (07-01-
08)
[3] Amendments to PAS 39
and PFRS 7: Reclassification of
Financial Assets - Effective Date
and Transition
 [4] Amendments to PFRS 7:
Improving Disclosures about
Financial Instruments
[5] Amendments to PFRS 7:
Disclosures - Transfers of
Financial Assets ; (Effectivity,
07-01-11)
PFRS 8 Operating January 1, The Standard requires an Disclosure
Segments 2009 entity to adopt the requirements:
‘management approach’ to The entity shall
reporting on the financial disclose the
performance of its operating following for each
segments. Generally, the period for which a
information to be reported statement of
would be what management comprehensive
uses internally for evaluating income is
segment performance and presented:
deciding how to allocate (a) general
resources to operating information;
segments. Such information
may be different from what is (b) information
used to prepare the income about reported
statement and balance sheet. segment profit or
The Standard therefore loss, including
requires explanations of the specified
basis on which the segment revenues and
information is prepared and expenses included in
reconciliations to the amounts reported segment
recognized in the income profit or loss,
statement and balance sheet. segment assets,
segment liabilities
 PFRS 8 applies to annual and the basis of
financial statements for periods measurement; and
beginning on or after January
1, 2009. The Standard, which (c)
applies to listed companies, reconciliations of the
replaces PAS 14, Segment totals of segment
Reporting. revenues, reported
segment profit or
loss, segment assets,
segment liabilities
and other material
segment items to
corresponding entity
amounts.
PFRS 9 Financial January 1, The standard introduces new At Fair Value FINANCIAL ASSET: Presented as
(2014) Instruments 2013 requirements on the -all financial Either : financial asset or
classification and measurement instruments at fair ● Fair Value, or liability on the
of financial assets. It uses a value through profit ● Amortized cost statement of
single approach to determine or loss financial position
whether a financial asset is FINANCIAL when, and only
measured at amortized cost or At Fair Value plus LIABILITY: when, the entity
fair value, replacing the many Transaction cost ● Fair value through becomes party to the
different rules in PAS 39, -in the case of a profit or loss (if contractual
Financial Instruments: financial asset or held for trading), provisions of the
Recognition and Measurement. financial liability at or instrument.
fair value through Amortized cost (unless For a hedge of a
The approach in the new other comprehensive the fair value option is group of items with
standard is based on how an income. applied) offsetting risk
entity manages its financial positions whose
instruments (its business Fair value hedged risk affects
model) and the contractual -amount for which an different line items in
 cash flow characteristics of the asset could be the statement of
financial assets. The new exchanged, or a profit or loss and
standard also requires a single liability settled, other comprehensive
impairment method to be between income, any hedging
used, replacing the many knowledgeable, gains or losses in
different impairment methods willing parties, in an that statement shall
in PAS 39. arm’s length be presented in a
transaction. separate line from
The standard is for mandatory those affected by the
adoption by January 1, 2013. Transaction costs hedged items.
Earlier application is permitted -incremental Hence, in that
for financial statements cost that are directly statement the
beginning on or after January attributable to the amount in the line
1, 2010 in the Philippines. acquisition, issue or item that relates to
disposal of financial the hedged item
The Standard includes instrument. itself (for example,
requirements for: revenue or cost of
● classification and sales) remains
measurement of financial unaffected.
assets;
● impairment;
● classification and
measurement of financial
liabilities; and
● hedge accounting.
PFRS 10 Consolidated January 1, The objective of PFRS 10 is to
Financial 2013 establish principles for the
Statements presentation and preparation
of consolidated financial
statements when an entity
controls one or more other
entities.

The Standard:
 requires a parent entity (an
entity that controls one or
more other entities) to
present consolidated
financial statements
 defines the principle of
control, and establishes
control as the basis for
consolidation
 set out how to apply the
principle of control to
identify whether an
investor controls an
investee and therefore
must consolidate the
investee sets out the
accounting requirements
for the preparation of
consolidated financial
statements
 defines an investment
entity and sets out an
exception to consolidating
particular subsidiaries of an
investment entity.

PREPARATION OF
CONSOLIDATED FINANCIAL
 STATEMENTS
Parent uses uniform
accounting policies for like
transactions and other events
in similar circumstances.

Investment entities
consolidation exemption:
 obtains funds from one or
more investors for the
purpose of providing
investment management
services
 its business purpose is to
invest funds solely for
return from capital
appreciation, investment
income or both;
 measures and evaluates the
performance of its
investments on a fair value
basis.

Consolidation Procedures
1. Combine like items of
assets, liabilities, equity,
income, expenses and
cash flows of the parent
with those of its
subsidiaries:
2. Offset the carrying
 amount of the parent’s
investment in each
subsidiary; and
3. Eliminate in full
intragroup assets and
liabilities, equity, income,
expenses and cash flows
relating to transactions
between entities of the
group.
PFRS 11 Joint January 1, This Standard requires an
Arrangements 2013 entity to account joint
arrangement based on its
rights and obligations arising
from the arrangement rather
than based on the structure of
the arrangement as required
by PAS 31, Interests in Joint
Ventures. The new standard
has removed the option to
account jointly controlled
entities using either
proportionate consolidation or
equity method.

Joint control
involves the contractually
agreed sharing of control and
arrangements subject to joint
control.
 There are two types of joint
arrangements. Namely, joint
operation and joint
ventures.

Joint Operation
The parties that have joint
control of the arrangement
(joint operators) have rights to
particular assets, and
obligations for particular
liabilities, relating to the
arrangement.

Joint Ventures
The parties that have joint
control of the arrangement
(joint ventures) have rights to
the net assets of the
arrangement.
PFRS 12 Disclosure of January 1, The objective of PFRS 12 is to
Interests in 2013 require the disclosure of
Other Entities information that enables users
of financial statements to
evaluate:
 the nature of, and risks
associated with, its
interests in other
entities 
 the effects of those
interests on its financial
 position, financial
performance and cash
flows.

Where the disclosures required

by PFRS 12, together with the
disclosures required by other
IFRSs, do not meet the above
objective, an entity is required
to disclose whatever additional
information is necessary to
meet the objective.

IFRS 12 is required to be
applied by an entity that has
an interest in any of the
following:
 subsidiaries
 joint arrangements (joint
operations or joint
ventures)
 associates
 unconsolidated structured
entities

Annual Improvements to PFRS

Standards 2014–2016
Cycle clarified that the
disclosures required in PFRS 12
(with the exception of B10-
B16) also apply to interests
 held for sale and discontinued
operations in accordance with
PFRS 5.

PFRS 12 does not apply to

certain employee benefit plans,
separate financial statements
to which PAS 27 Separate
Financial Statements applies
(except in relation to
unconsolidated structured
entities and investment entities
in some cases), certain
interests in joint ventures held
by an entity that does not
share in joint control, and the
majority of interests in another
entity accounted for in
accordance
with PFRS 9 Financial
Instruments.

An investment entity that

prepares financial statements
in which all of its subsidiaries
are measured at fair value
through profit or loss presents
the disclosures relating to
investment entities required by
PFRS 12.
PFRS 13 Fair Value January 1, That definition of fair value Transaction Price A valuation technique An entity shall
Measurement 2013 emphasizes that fair value is a When an asset is that uses unobservable disclose information
market-based measurement, acquired or a liability inputs will be used to that helps users of its
not an entity-specific is assumed in an measure fair value in financial statements
measurement. When measuring exchange transaction subsequent periods. It assess both of the
fair value, an entity uses the for that asset or shall be calibrated so following:
assumptions that market liability, the that at initial recognition (a) for assets and
participants would use when transaction price is the result of the liabilities that are
pricing the asset or liability the price paid to valuation technique measured at fair
under current market acquire the asset or equals the transaction value on a recurring
conditions, including received to assume price. or non-recurring
assumptions about risk. As a the liability (an entry basis in the
result, an entity’s intention to price). Valuation techniques statement of financial
hold an asset or to settle or When determining An entity shall use position after initial
otherwise fulfil a liability is not whether fair value at valuation techniques recognition, the
relevant when measuring fair initial recognition that are appropriate in valuation techniques
value. equals the transaction the circumstances and and inputs used to
Important price, an entity shall for which sufficient data develop those
Sections/Contents: take into account are available to measure measurements.
1. Objective factors specific to the fair value, maximizing (b) for recurring fair
2. Scope transaction and to the the use of relevant value measurements
3. Measurement asset or liability. observable inputs and using significant
a. Definition of fair For example, the minimizing the use of unobservable inputs
value transaction price unobservable inputs. (Level 3), the effect
b. The asset or liability might not represent This Standard requires of the measurements
c. The transaction the fair value of an entities to apply on profit or loss or
d. Market participants asset or a liability at valuation techniques other comprehensive
e. The price initial recognition if consistent with any of income for the
f. Application to non- any of the following the following three period.
financial assets conditions exist: methods:
g. Application to (a) The transaction is (a) Market approach -
liabilities and an between related uses prices and other
 entity's own equity parties, although the relevant information
instruments price in a related generated by market
h. Application to party transaction may transactions involving
financial assets and be used as an input identical or comparable
financial liabilities into a fair value (i.e. similar) assets,
with offsetting measurement if the liabilities or a group of
positions in market entity has evidence assets and liabilities,
risks or that the transaction such as a business
counterparty credit was entered into at (b) Cost approach -
risk market terms. reflects the amount that
i. Fair value at initial (b) The transaction would be required
recognition takes place under currently to replace the
j. Valuation duress or the seller is service capacity of an
techniques forced to accept the asset (often referred to
k. Inputs to valuation price in the as current replacement
techniques transaction. cost).
l. Fair value hierarchy For example, that (c) Income approach -
4. Disclosure might be the case if converts future amounts
the seller is (e.g. cash flows or
experiencing financial income and expenses) to
difficulty. a single current (i.e.
(c) The unit of account discounted) amount. The
represented by the fair value measurement
transaction price is is determined on the
different from the unit basis of the value
of account for the indicated by current
asset or liability market expectations
measured at fair about those future
value. For example, amounts.
that might be the case
if the asset or liability Fair value hierarchy
measured at fair value IFRS 13 introduces a fair
is only one of the value hierarchy that
elements in the categorizes inputs to
transaction (e.g. in a valuation techniques into
business three levels. The highest
combination), the priority is given to Level
transaction includes 1 inputs and the lowest
unstated rights and priority to Level 3
privileges that are inputs. An entity must
measured separately maximize the use of
in accordance with Level 1 inputs and
another IFRS, or the minimize the use of
transaction price Level 3 inputs.
includes transaction
costs. Level 1 inputs
(d) The market in Level 1 inputs are
which the transaction quoted prices
takes place is different (unadjusted) in active
from the principal markets for identical
market (or most assets or liabilities that
advantageous the entity can access at
market). For example, the measurement date.
those markets might An entity shall not make
be different if the adjustments to quoted
entity is a dealer that prices, only under
enters into specific circumstances,
transactions with for example when a
customers in the retail quoted price does not
market, but the represent the fair value
principal (or most (i.e. when a significant
advantageous) market event takes place
for the exit between the
transaction is with measurement date and
other dealers in the market closing date).
dealer market.
Level 2 inputs
Level 2 inputs are inputs
other than quoted prices
included within Level 1
that are observable for
the asset or liability,
either directly or
indirectly. Adjustments
to Level 2 inputs will
vary depending on
factors specific to the
asset or liability.

Level 2 inputs include

the following:
(a) quoted prices for
similar assets or
liabilities in active
markets.
(b) quoted prices for
identical or similar
assets or liabilities in
markets that are not
active.
(c) inputs other than
quoted prices that are
observable for the asset
 or liability, for example:
(i) interest rates and
yield curves observable
at commonly quoted
intervals;
(ii) implied volatilities;
and
(iii) credit spreads.
(d) market-corroborated
inputs.

Level 3 inputs
Level 3 inputs are
unobservable inputs for
the asset or liability. An
entity shall use Level 3
inputs to measure fair
value only when relevant
observable inputs are
not available.
PFRS 14 Regulatory January 1, Rate regulation can create a As the regulatory An entity shall not Presentation and
Deferral 2016 regulatory deferral account deferral account change its accounting disclosure
Accounts balance. A regulatory deferral balances to be policies in order to start  Separate line
account balance is an amount recognized are to recognize regulatory items are
of expense or income that restricted to the deferral account presented in
would not be recognized as an incremental amounts balances. An entity may the statement
asset or liability in accordance from what would only change its of financial
with other Standards, but that otherwise be accounting policies for position for the
qualifies to be deferred in recognized as assets regulatory deferral total of all
accordance with IFRS 14, and liabilities under account balances if the regulatory
because the amount is IFRS and the change makes the deferral
included, or is expected to be conceptual financial statements account debit
included, by a rate regulator in framework, the more relevant to the balances and
establishing the price(s) that an measurement of these economic decision- credit balances.
entity can charge to customers balances effectively making needs of users  Regulatory
for rate-regulated goods or entails a two-step and no less reliable, or deferral
services. process: more reliable and no less account
• An entity would first relevant to those needs. balances are
Important determine the An entity shall judge not classified
Sections/Contents: carrying amount of its relevance and reliability between
1. Objective assets and liabilities using the criteria in current and
2. Scope under IFRS, excluding paragraph 10 of IAS 8. non-current,
3. Recognition, IFRS 14. but are
Measurement, • These amounts separately
Impairment and would then be disclosed using
Derecognition compared with the subtotals
a. Temporary assets and liabilities
exemption from determined under the The net movement in
paragraph 11 of entity’s previous GAAP regulatory deferral
IAS 8 Accounting presentation (i.e., its account balances is
Policies, Changes in rate-regulated separately presented
Accounting balances). The in the statement of
Estimates and differences would profit or loss and
Errors represent the other comprehensive
b. Continuation of regulatory deferral income using
existing accounting debit or credit account subtotal.
policies balances to be
c. Changes in recognized by the Disclosure
accounting policies entity. Requirements
d. Interaction with 1. The nature of,
other Standards The standard is clear risks associated with,
4. Presentation that if an entity had the rate regulation
 a. Changes in not recognized that establishes the
presentation regulatory deferral price(s) the entity
b. Classification of account balances can charge
regulatory deferral under its previous customers for the
account balances GAAP, it is not allowed goods or services it
c. Classification of to change its provides.
movements in accounting policies in  entity's rate-
regulatory account order to start regulated
balances recognizing regulatory activities and
5. Disclosure deferral account the rate-setting
a. Objective balances upon initial process
b. Explanation of adoption of IFRS.  the identity of
activities subject to the rate
rate regulation regulator(s)
c. Explanation of  and the
recognized amounts impacts of risks
and
uncertainties
on the recovery
or reversal of
regulatory
deferral
balance
accounts 
2. The effects of rate
regulation on the
entity's financial
statements
 basis on which
regulatory
deferral
 account
balances are
recognized and
how they are
assessed for
recovery
 a reconciliation
of the carrying
amount at the
beginning and
end of the
reporting
period
 discount rates
applicable
 income tax
impacts
 details of
balances that
are no longer
considered
recoverable or
reversible
PFRS 15 Revenue from January 1, Important If other standards If no other standard Presentation and
Contracts with 2018 Sections/Contents: specify how to provides guidance on disclosure:
Customers 1. Objective separate and/or how to separate and/or Presented in the
2. Scope initially measure one initially measure one or entity’s statement of
3. Recognition or more parts of the more parts of the financial position as a
a. Identifying the contract contract, then those contract, then IFRS 15 contract liability, a
b. Combination of separation and will be applied.  contract asset, or a
contracts measurement receivable
 c. Contract modifications requirements are The revenue model (depending on the
d. Identifying applied first. The 1. Identify the relationship between
performance obligations transaction price is contract(s) with a the entity’s
e. Satisfaction of then reduced by the customer  performance and the
performance obligations amounts that are 2. Identify the customer’s payment)
4. Measurement initially measured performance
a. Determining the under other obligations in the  Contract
transaction price standards. contract  liability-
b. Allocating the 3. Determine the customer paid
transaction price to transaction price  an amount of
performance obligations 4. Allocate the consideration
c. Changes in the transaction price prior to the
transaction price to the performance entity
5. Contract costs obligations in the performing by
a. Incremental costs of contract  transferring the
obtaining a contract 5. Recognize revenue related good or
b. Costs to fulfill a when (or as) the service to the
contract entity satisfies a customer
c. Amortization and performance
impairment obligation.  Contract
6. Presentation asset-
7. Disclosure customer has
a. Contracts with not yet paid
customers the
b. Significant judgments consideration
in the application of this for the action
Standard performed by
c. Assets recognized from the entity;
the costs to obtain or fulfill a recognized
contract with a customer when the
d. Practical expedients entity’s right to
 consideration is
conditional on
something
other than the
passage of
time.

 Receivable-
customer has
not yet paid
the
consideration
for the action
performed by
the entity;
recognized
when the
entity’s right to
consideration is
unconditional
except for
passage of
time
Disclosure
requirements
An entity shall
disclose qualitative
and quantitative
information about all
of the following:
(a) Its contracts with
customers;
(b) The significant
judgments, and
changes in the
judgments, made in
applying this
Standard to those
contracts; and
(c) Any assets
recognized from the
costs to obtain or
fulfill a contract with
a customer.

 An entity shall
consider the
level of detail
necessary to
satisfy the
disclosure
objective and
how much
emphasis to
place on each
of the various
requirements.
 An entity shall
aggregate or
disaggregate
disclosures so
that useful
 information is
not obscured
by either the
inclusion of a
large amount
of insignificant
detail or the
aggregation of
items that have
substantially
different
characteristics.
 An entity need
not disclose
information in
accordance
with this
Standard if it
has provided
the information
in accordance
with another
standard.
PFRS 16 Leases January 1, PFRS 16 replaced the Lease liability Lease liability Lease liabilities are
2019 following standards and The lease liability is The lease liability is presented either:
interpretations: initially measured at subsequently measured  Separately from
 PAS 17 Leases the present value similar to an amortized other liabilities;
 IFRIC 4 Determining of the lease cost financial liability or
Whether an Arrangement payments that are (but remeasured to  Together with
Contains a Lease not yet paid as at the reflect any other liabilities,
 SIC 15 Operating Leases commencement date. reassessments or lease with disclosure of
 – Incentives Lease payments modifications). the line items
 SIC 27 Evaluating the include the following: Accordingly: that include the
Substance of  Fixed payments,  Interest on the lease liability
Transactions Involving including in- lease liability is
the Legal Form of a substance fixed computed using the Presentation of
Lease payments, less effective interest right-of-use asset
any lease method and Paragraph 47
The standard (PFRS 16) retains incentives recognized in profit provides that the
the definition of a lease in PAS receivable; or loss, unless it lessee shall present
17 but changes the guidance  Variable lease forms part of the the right-of-use asset
setting out how to apply it. It payments that carrying amount of as a separate line
determines whether a contract depend on an another asset. item in the statement
contains a lease on the basis of index or a rate, Interest in each of financial position.
whether the customer has the initially measured period reflects a
right to control the use of an using the index constant periodic Alternatively, the
identified asset for a period of or rate as at the rate of interest on lessee may include
time. commencement the remaining the right-of-use asset
date; balance of the lease in the appropriate
It does not change the  Amounts liability. line item within
accounting for service expected to be  Lease payments are which the
components of contracts. payable by the apportioned corresponding
Although leases and services lessee under between the underlying asset
are often combined in a single residual value interest on the world be presented if
contract, amounts related to guarantees; remaining balance owned.
services are NOT required to  The exercise of the lease liability.
be reported on the balance price of a Disclosure
sheet. purchase option if Right-of-use asset requirements:
the lessee is The right-of-use asset is It is required that the
Lessee Accounting reasonably subsequently measured property, plant, and
PFRS 16 changes significantly certain to similar to a purchased equipment include
how an entity accounts for exercise that asset. Accordingly, the right-of-use asset.
leases that were off balance option; and asset is subsequently
sheet applying PAS 17, other  Payments of measured under the Disclosures –
than short-term leases and penalties for cost model, except Lessee
leases of low-value assets. This terminating the when: A lessee shall
means that the operating lease, if the lease a. It relates to a class disclose the following
lease-style of accounting is no term reflects the of PPE that is for the reporting
longer available except for lessee exercising measured under the period:
short-term leases and leases an option to revaluation model,  Depreciation
of low-value assets. terminate the in which case, the charge for right-
lease. asset may be of-use assets by
All other leases within the measured under the class of
scope of PFRS 16 are required Right-of-use asset revaluation underlying asset
to be brought on-balance sheet The right-of-use model.  Interest expense
by leases – recognizing a asset is initially b. It meets the on lease liability
right-of-use asset and the measured at cost definition of an  The expense
related lease liability at the comprised of the investment property relating to short-
commencement of the lease, following: and the entity uses term leases
with subsequent accounting  The amount of the fair value excluding the
generally similar to the finance the initial model, in which expense relating
lease model under PAS 17. measurement of case, the asset is to leases with a
the lease measured under the term of one
In addition to the recognition liability; fair value model. month or less
of right-of-use asset and  Any lease  The expense
lease liability in the balance payments made Cost model relating to
sheet, entities are also at or before the Under the cost model, variable lease
required to : commencement the right-of-use asset is payments not
 Recognize depreciation date, less any measured at cost: included in the
of the leased assets and lease incentives  Less any measurement of
interest on lease received; accumulated lease liability
liabilities in the income  Any initial direct depreciation and  Income from
statement over the lease costs incurred by any accumulated subleasing right-
 term; and the lessee; and impairment losses; of-use assets
 Separate the total  The present and  Total cash
amount of cash paid into value of any  Adjusted for any outflow for
a principal portion decommissioning remeasurement of leases
(presented within and restoration the lease liability.  Addition to right-
financing activities) and costs for which of-use assets
interest (presented the entity has Depreciation  The carrying
within either operating or incurred an The lessee depreciates amount of right-
financing activities) in obligation, the underlying asset of-use assets at
the statement of cash unless those over its useful life if: the end of the
flows. costs are  The contract reporting period
incurred to provides for the by class of
The main difference between produce transfer of underlying asset
PFRS 16 and PAS 17 relates to inventories. ownership to the  Short-term
the treatment of residual lessee by the end of leases or low
value guarantees provided Finance lease the lease term; or value leases
by a lessee to a lessor. PFRS receivable  There is a accounted for as
16 requires that the lessee A lessor recognizes reasonable certainty an operating
recognize only amounts an asset from a that the lessee will lease
expected to be payable under finance lease as a exercise a purchase
residual value guarantees, receivable measured option. Additional
rather than the maximum at an amount equal disclosures
amount guaranteed as to the net In any other case, the A lessee shall
required by PAS 17. investment in the lessee depreciates the disclose additional
lease. Lease underlying asset over qualitative and
Lessor Accounting payments include the the shorter of the asset’s quantitative
The accounting requirements following: useful life and the lease information about
for lessor are substantially  Fixed payments, term. Depreciation starts leasing activities
unchanged under PFRS 16. including in- from the necessary to help
Lessors will continue to classify substance fixed commencement date of users of financial
leases as either finance leases payments, less the lease. statements to assess
or operating leases applying any lease the effect of leases
PFRS 16, and account for those incentives Finance lease on financial position,
two types differently. payable; receivable financial performance
 Variable lease The net investment in and cash flows.
Meanwhile, disclosure in the payments that the lease (net lease 1. The nature of
financial statements is depend on an receivable) is the lessee’s
enhanced under PFRS 16. index or a rate, subsequently measured leasing
Lessors are required to disclose initially similar to an amortized activities
additional information about measured using cost financial asset. 2. Future cash
how it manages risk related to the index or rate Accordingly: outflows to
its residual interest in assets as at the  Finance income which the lessee
subject to leases. commencement (interest income) is is potentially
date; computed using the exposed that are
Important  Guaranteed effective interest not reflected in
Sections/Contents residual value; method and the
 Scope of PFRS 16  The exercise recognized in profit measurement of
 Essential elements in price of a or loss. Interest in lease liability.
identifying a lease purchase option each period reflects  Variable lease
 Separation of the if the lessee is a constant periodic payments
components of a lease reasonably rate of return on  Extension
contract certain to the lessor’s net option and
 Lessee accounting exercise that investment in the termination
 Lessor accounting option; and lease. option
 Finance lease  Payments of  Lease payments are  Residual
 Operating lease penalties for applied against the value
 Right-of-use asset terminating the gross investment in guarantee
 Lease liability lease, if the the lease to reduce  Leases not
 Residual value guarantee lease term both the principal yet
 Lease modifications reflects the and the unearned commenced
 Lease bonus lessee exercising finance income. to which the
 Depreciation an option to lessee is
  Interest terminate the committed
 Sales type lease lease. 3. Restrictions or
 Sale and leaseback covenants
 Disclosure imposed
PFRS 17 Insurance January 1, For Philippines reporting The total of The sum of the Statement of
Contracts 2021 purposes, IFRS 17 will have to fulfillment cash liability for remaining Financial Position
be approved for adoption by flows (FCF) and the coverage and the An entity shall
the Financial Reporting contractual service liability for incurred present separately
Standards Council and then margin (CSM) claims the statement of
submitted to the Board of On initial recognition, On subsequent financial position the
Accountancy and Professional an entity shall measurement, the carrying amount of
regulation Commission for measure a group of carrying amount of a groups of:
adoption and implementation. insurance contracts at group of insurance  Insurance
With the implementation of the total of: contracts at the end of contracts
Insurance Commission (IC) A. The fulfillment cash each reporting period issued that are
Circular 2016-67 effective flows (FCF) which shall be the sum of: assets;
January 1, 2017, Philippine comprise: A. The liability for  Insurance
insurance companies will need  Estimates of remaining coverage contracts
to undergo another adoption future cash comprising: issued that are
for Philippine Financial flows;  The FCF related liabilities;
Reporting Standards (PFRS)  An to future  Reinsurance
financial statements in 2021 adjustment services and; contracts held
given that there are differences to reflect the  The CSM of the that are
between the local valuation time value of group up to assets; and
methodology and the IFRS money (TVM) that date;  Reinsurance
measurement requirements. and the B. The liability for contracts held
financial risks incurred claims, that are
With the issuance of the new associated comprising the FCF liabilities.
insurance accounting standard with future related to past
called IFRS 17, Insurance cash flows; service allocated to Statement of
Contracts, the Board closes a and the group at that Financial
long and eventful journey to  A risk date. Performance
define the basic objectives, adjustment An entity shall
accounting principles, and for non- disaggregate the
reporting guidelines for financial risk amounts recognized
insurance contracts. The early B. The contractual in the statement(s)
application of this standard is service margin of financial
permitted provided that (CSM) performance into:
PFRS/IFRS 9 (Financial  An insurance
Instruments) and PFRS/IFRS service result,
15 (Revenue from Contracts comprising
with Customers), are also insurance
applied. revenue and
insurance
The issuance of this standard, service
IFRS 17, is a defining event for expenses; and
the insurance industry. For the  Insurance
first time ever, there exists a finance income
global accounting standard for or expenses
insurance contracts.
Income or expenses
The standards introduces a from reinsurance
consistent framework for the contracts held shall
recognition, measurement, and be presented
presentation and reporting of separately from the
insurance contracts, which is expenses or income
expected to result in more from insurance
useful and transparent contracts issued.
financial reports from
insurance companies. Disclosures:
An entity shall
The significant changes will disclose qualitative
provide more information and quantitative
about the value of insurance information about:
obligations as companies will  The amounts
measure insurance contracts at recognized in its
current value; companies will financial
reflect the time value of money statements that
in estimated payments to arise from
settle incurred claims, and insurance
companies will measure their contracts;
insurance contracts based on  The significant
only on the obligations created judgments, and
by these contracts. Similarly, changes in those
information about profitability judgments,
is expounded on as companies made when
will now have to provide applying IFRS
consistent information about 17; and
the components of current and  The nature and
future profits from insurance extent of the
contracts. risks that arise
from insurance
This standard will be applicable contracts.
to insurance contracts,
including reinsurance contracts
issued by the companies;
reinsurance contracts held;
and investment contracts with
discretionary participation
features, provided the entity
also issues insurance
contracts.
 Important
Sections/Contents:
1. Objectives of IFRS 17
2. Scope of IFRS 17
3. Accounting policies of
IFRS 17
4. Changes in accounting
policies of IFRS 17
5. Remeasuring insurance
liabilities
6. Prudence
7. Future investment
margins
8. Asset Classifications
9. Disclosures

INFORMATION OF STUDENT’S ASSIGNMENT

Standard No. Summarized by (name of assigned student)
PAS 1 Cyril Ramos
PAS 2 Cyril Ramos
PAS 7, 8, and 10 Katherine Baran and Niña Lorainne Aming
PAS 12, 16, and 17 Hannah Trisha Brigole and Franz Ana Marie Cua
PAS 19 (Revised), 20, and 21 Nicole Ann Dela Cruz and Navilyn Delica
PAS 23 (Revised), 24 (Revised), and 26 Caryll Duran and Edelweiss Encinares
PAS 27 (Amended), 28 (Amended), and 29 Crispin Alberto Ephan and Jalen Estrella
PAS 32, 33, and 34 Lyca Mae Esma and Flora May Flores
PAS 36, 27, and 38 Louie Franco and Gwynne Jala
PAS 39, 20, and 41 Flora Mae Jakosalem and Eva Marie Lopez
PFRS 1 (Revised), 2, and 3 (Revised) Melanie Lovitos and Lucille Rose Mamburao
PFRS 4, 5, and 6 Ethel March Maglupay and Johanna Marie Mantalaba
PFRS 7, 8, and 9 (2014) Justine Ryan Manlunas and Mariellance Melijor
PFRS 10, 11 , and 12 Michelle Plania and Ma. Athena Solatorio
PFRS 13, 14, and 15 Crisel Anne Tampipi and Marnz Cheska Tenebro
PFRS 16 and 17 Kathleen Joi Monteza