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Full Pfrss Vs Pfrs For Smes Vs Pfrs For Small Entities: Gato, Abdul Barri Indol
Full Pfrss Vs Pfrs For Smes Vs Pfrs For Small Entities: Gato, Abdul Barri Indol
Full Pfrss Vs Pfrs For Smes Vs Pfrs For Small Entities: Gato, Abdul Barri Indol
09452146094
Quantitative Threshold
Micro-entities Small Medium Large
Assets > 100M to 350M > 350M PFRS for SMALL ENTITIES
< 3M 3M - 100M
Liabilities > 100M to 250M > 250M
Notes
Common requisites for Micro, Small and Medium entities: - no IFRS equivalent
⑥ Not listed or not in the process being listed - per SEC Memo Circular #5, Series of 2018
⑥ Not holder of secondary licenses issued by regulatory agencies - effective January 1, 2019
⑥ Not required to file FS (SRC Rule 68.1) - in case if breach of floor/ceiling threshold at end of current year, entity shall
* Banks are highly regulated (Full PFRS) transition to applicable financial reporting framework in next reporting period
- required for small entities
Dual Framework
Exceptions:
Example 1: Asset: > 350M } Whichever is higher A. Entities who have operations/investments that are based/conducted in a different
Liabilities: > 100M to 250M (Full PFRS) country with a different functional currency shall NOT apply PFRS for Small entities.
Instead they shall apply:
Whichever is higher
Example 2: Asset: < 3M } (PFRS for Small entities)
- Full PFRS; or
Liabilities: > 10M - PFRS for SMEs
MICRO ENTITIES B. Entities under the following situations may use Full PFRS, PFRS for SMEs or PFRS
for Small Entities:
- have the following options: - Small entity which is a subsidiary of a parent reporting
under Full PFRS or PFRS for SMEs
1) Income tax basis of accounting May be used provided Statement of Mgmt’s Responsibility - Small entity which is a subsidiary of a foreign parent which will be moving
2) PFRS for Small entities } that FS shall be
accompanied by
Auditor’s Report
Statement of Income towards IFRS or IFRS for SMEs
Notes of FS
3) Other bases deemed by management as acceptable - Small entity, either as a significant joint venturer/associate, is part of
- Cash basis a group that is reporting under Full PFRS or PFRS for SMEs
- PFRS for SMEs - Small entity is a branch office/ROHQ of a foreign company reporting
- Full PFRS under Full PFRS or PFRS for SMEs
- Small entity that has been preparing FS using Full PFRS or PFRS for SMEs
PFRS for SMEs and has decided to liquidate
- mandatory for medium enterprises - Such other cases SEC may consider as valid exceptions
Exceptions: Breach of FLOOR threshold: apply options of a MICRO ENTITY
Breach of CEILING threshold: PFRS for SMEs or FULL PFRS accordingly
Same criteria with #1-#6 under exception B in PFRS for Small entities
: Medium entity that has a subsidiary mandated to report under Full PFRS
Medium entity that has short-term projection that it will breach quantitative threshold LARGE ENTITIES
and breach is expected to be significant (at least 20%) and continuing (not one time) Notes
⑥
Medium entity that has a concrete plan to conduct IPO within next 2 yrs
- full PFRS shall apply
OMITTED TOPICS (SMEs) SPECIAL ACTS (SMEs) - following are large entities:
those required to file FS under SRC Rule 68
Earnings per Share (EPS) Service Concession agreements those in the process of filing or being listed
Held for Sale (Assets) Extractive Activities (mining) those holders of secondary licenses issued by regulatory agencies
Interim reporting Agriculture
Segmented reporting
Insurance contracts
FULL PFRS PFRS for SMEs PFRS for Small Entities
1) Statement of Income & Statement of Comprehensive Income (SCI) Statement of Income &
Retained Earnings Statement of Change in Equity (SCE) Retained Earnings
(only changes to RE)
NI or NL
SAME
Correction of Errors
Change in policy
Dividends (except stock dividend)
* If contributed capital / OCI changes,
prepare SCI and SCE instead
Lower Cost
8) Biological Assets FV less Cost to Sell SAME Current Market Price
No quoted price: @ COST
FULL PFRS PFRS for SMEs PFRS for Small Entities
1, 3 3, 3 2, 2
10) Development Costs ⑥ CAPITALIZED
- as Intangible Asset EXPENSED SAME
if all 6 criteria met; or
EXPENSED
:
11) Borrowing Costs CAPITALIZED EXPENSED SAME
- if qualifying asset
12) Defined Benefit Plans Projected Unit Credit Method SAME Actuarial Method
(PAS 19R) - current salary only
- no actuarial gain/loss
14) Income taxes Deferred Tax Method only SAME Income Tax Payable Method; or
Deferred Tax Method