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    Definition Size Transition: For Reading: Exemptions From Pfrs For Smes

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    1) PFRS for SMEs applies to entities that do not have public accountability and publish general purpose financial statements for external users, with total assets of less than P350 million or total liabilities of less than P250 million. 2) When an entity first adopts PFRS for SMEs, the transition date is the beginning of the earliest period presented in the financial statements. 3) An entity is required to transition from PFRS for SMEs to full PFRS or another acceptable accounting basis if it exceeds the size thresholds or breaches the public accountability criteria on a continuing basis.

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    Definition Size Transition: For Reading: Exemptions From Pfrs For Smes

    Uploaded by

    AM
    36 views1 page
    1) PFRS for SMEs applies to entities that do not have public accountability and publish general purpose financial statements for external users, with total assets of less than P350 million or total liabilities of less than P250 million. 2) When an entity first adopts PFRS for SMEs, the transition date is the beginning of the earliest period presented in the financial statements. 3) An entity is required to transition from PFRS for SMEs to full PFRS or another acceptable accounting basis if it exceeds the size thresholds or breaches the public accountability criteria on a continuing basis.

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    SMEs

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    1) PFRS for SMEs applies to entities that do not have public accountability and publish general purpose financial statements for external users, with total assets of less than P350 million or total liabilities of less than P250 million. 2) When an entity first adopts PFRS for SMEs, the transition date is the beginning of the earliest period presented in the financial statements. 3) An entity is required to transition from PFRS for SMEs to full PFRS or another acceptable accounting basis if it exceeds the size thresholds or breaches the public accountability criteria on a continuing basis.

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    36 views1 page

    Definition Size Transition: For Reading: Exemptions From Pfrs For Smes

    Uploaded by

    AM
    1) PFRS for SMEs applies to entities that do not have public accountability and publish general purpose financial statements for external users, with total assets of less than P350 million or total liabilities of less than P250 million. 2) When an entity first adopts PFRS for SMEs, the transition date is the beginning of the earliest period presented in the financial statements. 3) An entity is required to transition from PFRS for SMEs to full PFRS or another acceptable accounting basis if it exceeds the size thresholds or breaches the public accountability criteria on a continuing basis.

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    SMALL & MEDIUM-SIZED ENTITIES (PFRS for SMEs)

    **DEFINITION SIZE Transition

    First adoption of SME PFRS *from SME to Full PFRS/other acctg. basis
    No *Public Accountability AND Publish general purpose financial
    statements for external users. > Transition date: > To FULL PFRS:
    Beginning of the earliest period - if the entity exceeds the ceiling threshold
    Unlisted Entities Non-financial institution PFRS SEC for which FS is prepared in comformity
    With PFRS for SMEs for the first time.
    *Public Accountability not provided SME Microbusiness > To other acceptable acctg. basis:
    ASSETS: P3M to P350M Asset/Liab: - if the floor threshold is breached.
    - w/ debt of equity securities - holds asset in fiduciary OR Below P3 Million Example:
    traded in a public market or capacity for a broad group LIAB: P3M to P250M FS ending Dec.31, 2020
    it is in the process of issuing of outsiders as one of its Option for → Transition date is Jan. 1, 2020. > When to transition?
    such instruments for trading in primary business. *Under SEC public FS prepration: The entity shall be required to transition
    public market. utility is not an SME, a. Full PFRS in the next year.
    regardless of size b. PFRS for SMEs
    c. Other acceptable *The transition must be made if the event
    basis of acctg. that caused the change is considered
    “significant and continuing” – as a
    general rule, 20% or more of total asset
    or liabilities.

    RETROSPECTIVE APPLICATION
    - Thus adjustments shall be
    recognized directly to
    retained earnings or
    another component of
    SHE.
    ➢ EXCEPTION to restatements:
    - In general, if impractible.

    - No restatements/adjustments for:
    a. Derecognition of fin’l assets & fin’l liab.
    b. Hedge accounting
    c. Accounting estimates
    d. Discontinued operations
    e. Measuring noncontrolling interest
    FOR READING:
    Exemptions from PFRS for SMEs

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