CURRENT

INITIAL MEASUREMENT SUBSEQUENT MEASUREMENT DESCRIPTION PRESENTATION AND DISCLOSURE

ASSETS
Cash and Cash: Face value Cash: Face value Cash Note:
cash  Cash on hand When to consider as part of cash: when redeposited or
equivalents o Bills and coins cleared?
o Checks from customers Note: Certificate of deposit is a book reconciling item
o Petty cash fund (deduction)
o Money order The following are also part of cash:
o Bank draft from customer  Travel fund
 Cash in bank  Interest fund
o Savings deposit/account
o Demand deposit
o Money market funds that permit
Company to write checks
(Unrestricted cash)
Cash equivalents
Maturity:
 < 3 months : CE
 3<1 year> : Current
Investments
Asset
 More than 1 year: NCA
E.g. Certificate of deposit
Accounts
receivable
IAS 2 Cost: Measured through Outside its scope are: Writedown of inventory
 cost of purchase  FIFO or  Financial instruments  recognized as expense in the period it occurs
Inventories  cost of conversion  Weighted Average  Biological Assets at the point of harvest  Reversal on writedown is recognized as a
 costs of bringing the Method With the scope but not in measurement reduction of the inventory recognized as
asset to its location and Fundamental principle: LCNRV (inventories held by):
expense in the period where the reversal occurs.
condition  producers of agricultural and forest
o Allowance = COGS and vice versa
 Borrowing cost that products, agricultural produce after
harvest, and minerals and mineral products Note: Defective inventory that would be immediately
meet the definition of
Qualifying Asset measured at NRV returned should not be part of Inventory and Purchases.
 Note: trade discounts, rebates, Note: Whether the inventory is sols in cash or
etc. are deducted installment basis, such is no longer part of the
Note: FOH is based on normal inventory
capacity; allocation is not Note: Goods sold with the right to repurchase is
increased by low production. still part of the inventory (check ifrs 15)
For abnormally high  commodity brokers and dealers who
production, FOH allocated if measure their inventories at fair value less
decreased. costs to sell
Note: Not included in the cost are
Abnormal waste, storage cost (unless
necessary before further process), admin OH not
related to production, forex differences, interest
cost (deferred settlement terms)
IFRS 5 Before classification: Applicable Held for sale and disposal group Impairment : Presentation:
IFRS - Fair value less cost to sell. At the time of reclassification: recognized in P&L Classified as non-current until reclassified as held for sale
Non-current (Carrying amount) unless the asset had been measured at revalued separately presented in the FS.
Asset Held For distribution to owners- Fair amount under IAS 16 or IAS 38, in which case the Disposal group: assets and liabilities are not offset.
for Sale Adjustments: applicable IFRS value less cost to distribute. impairment is treated as a revaluation decrease. Disclosures:
 description of the non-current asset or disposal
Note: no gain is recognized at Changes in FV less cost to sell After reclassification: difference between the group
the time of recognition (Higher than the CA): recognized adjusted carrying amounts of the asset/disposal  description of facts and circumstances of the sale
in P&L to the extent that is not in group and fair value less costs to sell. (disposal) and the expected timing
excess of the cumulative  impairment losses and reversals, if any, and where in
impairment loss that has been Not subject to depreciation. the statement of comprehensive income they are
recognised in accordance with recognised
IFRS 5 or previously in Gain or loss when it ceases to be held for sale shall  if applicable, the reportable segment in which the
accordance with IAS 36. part of profit or loss. non-current asset (or disposal group) is presented in
accordance with IFRS 8 Operating Segments
Note: Always lower b/n CA and
the FVLCS at the time of
classification as held for sale
 Noncurrent
Assets
IAS 16 Cost: PIN plus DACs Either: Cost Model or Note: Subsequent costs will benefit future periods Note: Revaluation surplus is a component of OCI
PPE DACs: (ISIP TE) Revaluation Model when it : Disclosures:
 Installation and assembly Depreciation:  Extends life  Info about each class of PPE
 Site preparation  Straight-line  Increases capacity and quality o Basis for measurement
 Initial delivery and handling Composite Take note: salvage  Improves efficiency and safety o Depreciation method
 Professional fees Group proceeds Note: Revaluation surplus is realized to RE over the o Useful lives/ Depreciation rates
 Testing (net of items sold  Declining = remaining useful life of the asset or when o Gross Carrying amount and A/D and I/L
produced by the testing) Double Declining = (1/UL)(2) disposed or retired o Reconciliations
 Employee benefits (1/UL) (1.5) Note: the new residual value is used in computing
(acquiring or constructing) SYD = L (L +1/2) the remaining depreciable amount
 Output-based Land and Building:
Note: Restoration Cost (IAS 17) Service-hours worked  Accounted separately
Except for Machinery Revalued Amount:  Allocation: Relative FV except when building is
(existing obligation)  Fair Value unusable
 Depreciated Rep. Cost (SV)  Building
Deferred payment o Improvements are separately
 Cash Price Equivalent depreciated unless part of the
 PV or discounted value blueprint
Acquisition by Exchange: o Permanent fences: Land Improvement
(Debt or Equity securities and  Land
Share-based payment) o PPE
 Fair value (General Rule) o Inventory
 Lacks commercial o Investment property
substance Note: Land improvements are:
-CA/IV of asset surrendered  Separately depreciated
Lump sum group of assets  Non-depreciable are capitalized
 Allocation (Relative FV) Bearer Plants = Self-constructed
On account
 Net of cash discount
Financial Liability
 FV less Transaction costs
o Quoted Price
 o Others: Defer
Self-constructed
 TMC (like acquired)
 Interest (Qualifying Asset)

IFRS 6 Cost- depending on the entity’s Either: Cost Model or Search for: (MONS) Recognize: Exploration and Evaluation Asset
Exploration accounting policy Revaluation Model  minerals, (either Tangible or Intangible)
for and Impairment: EUDI  oil, Wasting assets- non-renewable natural resources
Evaluation Wasting Asset : AEDE  natural gas and Impairment Criteria
of Mineral  Acquisition: DA= C-LV Wasting Asset:  similar non-regenerative resources
Resources  Exploration: Depletion= DR* Units extracted Expenditures include: (ATAT? SGE)
o Successful method  Exploration and evaluation expenditures
o Full cost method before technical feasibility and commercial
 Development: viability and after obtaining the right
o Intangible- Wasting Asset Doctrine:
Capitalized return of capital or payment of dividend =
o Tangible –Dep. Retained Earnings + Accum. Depletion
Separately
 Est. Restoration:
o Must be an existing
obligation

IAS 38 Initial: Cost Either: Acquired through: P-EBIG Scope does not include: FEMIO-51216193
Intangible Research and Dev’t Cost  Cost Model  Purchase Means of Acquiring Initial Measurement (Costs)
Assets  Research cost- expensed  Revaluation Model  Exchange of assets the IA
 Dev’t cost – Capitalised Note: Amortized unless the asset  Business Combination  PIN and DACs
Purchased
(Complete/ready to use has an indefinite UL  Internal generation  If deferred: Cash price
or sell)  Government Grant  Fair Value
Note: if phase not Gains or Losses = Net proceeds – These costs are expensed when incurred: ISTAR  Lack Commercial
Exchange
distinguishable: Research Carrying amount  internally generated goodwill [IAS 38.48] Substance: CA of Asset
phase only  start-up, pre-opening, and pre-operating Surrendered
 training cost [IAS 38.69]
Patent: PIN plus DACs  advertising and promotional cos
Trademark: PIN plus DACs plus Note: Derecognition gains shall  relocation costs  FV
(filing fees, registry fees, design not be included in the revenue Classification: Business  QP- Identical asset
cost… if INTERNALLY but in other income.  Finite Life Combination  QP- Similar asset
DEVELOPED)  Infinite Life  Estimate of entity
Purchased Goodwill: Specific Intangibles: Internally generated  DACs (must be complete)
 Residual approach  Patent (Finite/Infinite) – 20 years  FV
 Direct Approach Government grant
o Competing  NV or Zero plus DACs
Goodwill through Bus. Comb. o Relative
Consideration xxx  Trademark (Indefinite)- 10 years
Amount of NCI  Purchased Goodwill
in the acquiree xxx  Copyright
FV of previously  Franchise
held interest  Leasehold
in the acquiree xxx o Leasehold improvements
Total xxx  Broadcasting License (Finite/Infinite)
FV Net Assets (xxx)  Purchased customer list
Goodwill xxx
 Service Concession Arrangement
 Gain on Bargain Purchase o Right or License
o Residual interest (Infras. Asset)
Copyright: all expenses o Concession operator
incurred in the production and o Grantor
those required to establish the Research and Development
right
 Research costs – expensed
Franchise: Lump sum or initial
 Dev’t Cost – expense unless all criteria are
franchise fee plus DACs like
met
Legal fees
Leasehold: Lump sum payment
on negotiation
IAS 40 1. Initially measured: Either: Property can be: Note: Intercompany Rental (Parent)
Investment  Purchase price plus  Cost Model  Owner-occupied – IAS 16 Consolidated FS Owner-occupied
Property (Cash Price if deferred) IFRS 5 LCFVLC  Meant for sale in the ordinary business IAS Individual FS Investment Property
 Transaction cost(PPIT) IFRS 16 (leases) 2
o Professional IAS 16 (Cost-A/D)  Held for sale IFRS 5 When is FV (always required):
fees  Fair value Model :  Investment Property – IAS 40 Measurement Entity uses FV model
o Property taxes Applied to All properties  Land
o Installation Disclosure Entity uses Cost model
Changes in P&L  Building Rentals or Capital
o Testing Continue to use until:  Both Appreciation Note: Fair Value of Assets or liabilities which are usually
Not Cost of IP: (SOA) Disposal  Or a portion recognized separately shall not be double-counted when
 Start-up cost (unless Becomes owner- such is an integral part of the Investment Property
Property Treatment
needed for bringing…) Occupied (IAS 16) (e.g. Furniture of a furnished building)
IP(insignificant portion is
 Operating losses To be sold in ordinary Mixed-use for the production and
 Abnormal amounts course of business other admin purposes) Note: IFRS 16 has amended the scope of IAS 40 by defining
(waste) (IFRS 5) IP- insignificant to the investment property to include both owned investment
2. Acquired through Barter: Note: Prepaid or accrued arrangement property and investment property held by a lessee as a
Usually FV unless: operating lease income is not Ancillary Services Owner-occupied- right-of-use asset. A lessee is required to account for right-
Exchange Carrying part of the FV of the IP significant to the of-use assets that meet the definition of investment
lacks Amount or Note: FV of IP held by the arrangement as a whole property in a manner consistent with its policy for owned
Commercial Impaired lessee as ROUA reflects investment property – i.e. using either the cost model and
Substance Value of expected CF disclosing fair value, or using the fair value model. [IFRS
Inability to measure FV at initial recognition:
asset given (including variable lease 1. Property under -@ Cost until FV is 16:BC178]
up payments) construction determinable/completed
Note: Disposal: (earlier)
Gain not Transfers: to and from WHEN AND ONLY WHEN there is change in use
 gain or loss in P&L -on remeasurement to
recognized FV, difference is Cost model: Carrying Amount do not change and the cost for
unless IFRS 16 (sale and measurement and disclosure
FV is neither CA of asset recognized in P&L
leaseback) says otherwise Fair Value Model:
measurable surrendered 2. Owned Inv. Property IAS 16: RV is Zero
 Amount of gain or loss is (applied until disposal) - FV with subsequent accounting in accordance to
3. IP held by lessee as ROUA: in accordance wt IFRS 15 IP to OP
IAS 16, IFRS 16 or IAS 2
3. Held by lessee as IFRS 16 (applied until or Inventories
IFRS 16 applies  Compensation from 3rd - Difference (P&L)
ROUA disposal)
parties for investment *Except for the above, the remaining shall continue
that was impaired/lost/ to be measured at FV
given up = P&L when it
becomes receivable
 OP to Inv. -FV at the date of change
Property -Difference b/n CA and the FV is a revaluation (IAS
16) if previously measured using IAS 16 :
FV < CA Decrease in CA is in P&L which is >
RS
FV > CA -Increase in P&L > amt needed to
restore the CA to what it would
have been (net of dep) had the prior
impairment not occurred
-remaining part of increase is
recognized in OCI and increases the
Revaluation Surplus
Inventories - FV at the date of change
to IP - Difference (P&L): COGS?
Investment Cost = PP plus TC  FV if it can be reliably Transfers:
Property Note: Borrowing costs are measured w/o undue  FV can no longer be reliably measured >>> PPE
Expensed cost with movements o CA at transfer will be the cost
IFRS for recognized in P&L o Disclosure: Change in circumstances
SMEs  Otherwise: treated as  To or from: when it meets or ceases to meet the
PPR using cost- definition.
deprecation-impairment
model
IAS 41 Biological Asset:  Agricultural produce Scope: (BAG) Note: Bearer plants – IAS 20 or IAS 16 but the produce is
Agriculture  FVLCS (Initial and end of  Always FVLCS  Biological Assets (except Bearer Plants) within IAS 41 as a Biological Asset
each reporting period)  After Harvest – IAS 2  Agricultural produce (At the point of Note: Those that are not bearer plants:
Unless FV cannot be and other standards harvest) “The plant and the produce are one”
reliably measured  Gains and Losses (P&L)  Government grants Note: Government grants (FVLCS)
Agricultural Produce:  Biological Asset: o IAS 41: Bio Asset @ FVLCS  Unconditional: recognized when it becomes
 FVLCS at the point of  FVLCS o IAS 20: Bio Asset @ CLADI receivable
harvest  CLADI if FV cannot Not applied to: (agricultural activity) (B-GIRL)  Conditional: recognized when conditions are met
 Transaction Cost- Cost to be measured reliably  Bearer plants (except its produce)  Entry:
Sell and does not include  GG related to bearer plants Bio asset xxx
transport cost  Intangible assets Grant income xxx
However: if location is a  ROUA arising from land Disclosures:
characteristic of the asset, the  Land  General
 principal market shall be Disclosures: o Gains and Losses
adjusted for the transport  Add’l (when FV is available again) o Description of each group
costs o Description of assets o Description of enterprise’s activities
Note: Gains and losses (P&L) o Explanations o Info about BA with restricted titles
o Effect of change o Commitments (development/acquisition)
SMEs:  Government Grants o Fin risk management strategy
 FV if can be obtained w/o o Nature and extent o Reconciliations
undue cost; or o Unfulfilled conditions  Add’l if FV cannot be measured reliably
 Cost-depreciation- o Significant decreases in the expected o Description of assets
impairment level of grants o Explanation
o Depreciation method
o Useful lives or Depreciation rates
o Gains or loss (disposal)
o Gross Carrying amount and A/D
o Reconciliations
IFRS 16 LESSEE: LESSEE: Requisites: Lessee POV Lessor POV
Leases Lease Liability xxx Right-of-use-asset  Lessor – Owner Finance Operating Finance Operating
Lease payments xxx  Cost Model  Lessee – Renter Lease Lease Lease Lease
Initial Direct cost xxx  Adjusted for any  Underlying asset Note: in either case, Receivable xxx Assets are
Asset xxx
EC (dismantle/restore) xxx remeasurement of the  Consideration capitalize all leased assets presented
ROUA @ cost xxx lease liability  Contract (right to control and obtain and liabilities based on the
 IAS 40 – Investment economic benefits) nature of
Note: Lease payment = net of Property Note: Remeasurement is the result of lease ROUA xxx the
lease incentives  IAS 16 - Revaluation modification. Lease Liability xxx Underlying
model… Note: Lease modification may be Asset
Separation of contract Lease Liability  Accounted as a separate lease (SAC); or Note: Lease of Land and
components (Lease and Non- Interest expense  Continued to be accounted using the Building should be treated
lease components) Lease Payments original contract (nSDIC) separately.
Lessee Lessor Reameasure: Note: Subleases are treated
 Reassessment/ separately.
Modification (Revised SALE AND LEASEBACK: (Constitutu Posesorium)
Discount Rate) Parties: Note: Rights held by a lessee under licensing agreements for
 Seller-Lessee items such as motion picture films, video recordings, plays,
 Buyer-Lessor
 allocate the shall  Change in Lease term Note: If FV of consideration than the FV of UA or manuscripts, patents and copyrights are within the scope of
consideration allocate (Revised Discount Payments for lease than the market rates IAS 38 and are excluded from the scope of IFRS 16. [IAS 38.6]
payable on the using rate)  Accounted as additional financing
basis of the IFRS 15  Future Lease  Otherwise, prepayments of lease
relative stand- Payments- Change in In case of Sale (IFRS 15):
alone prices CPI (Unchanged DR) Seller-Lesse:
 Amts. Expected to be ROUA = ROUA = (c/f) (p-a)
payable under GRV Gain/Loss = (f-c/f) [f-(p-a)]
(Unchanged DR) a = Consideration- FV of UA
LESSOR:
 Operating Lease LESSOR:
 Finance Lease
Finance Lease :
Lease receivable = Net  Finance lease income
Investment = Discounted GI  Derecognized/
Finance Lease: Impaired
Lessors other than Dealer  Modification
and Manufacturer  Changes in URV
Receivable xxx Operating Lease:
Asset xxx Lessors other than Dealer
and Manufacturer
Lease payments xxx  Lease income
Add: URV xxx
 Amortization of IDC
Gross investment (GI) xxx
 Dep. Of UA (IAS
16/IAS 38)
PV of LP xxx
 Impairment of UA
PV of URV xxx
 From rented to held
NI xxx
for sale in the OCB:
IAS 2 @CA
Operating Lease:
Initial Direct Cost xxx  Modification: Prepaid
Carrying Amount of asset xxx and Accrued in
Underlying asset xxx consider in the new
lease
 Dealer and Manufacturer:
For Dealers and Mftr.:  Selling profit not
 Revenue recognized
 Cost of sale
 Selling P&L

IFRS 9/ IAS Two main sources: Classification: Applies to all except: Note: The difference of financial instruments from other
32/IFRS 7  Trade receivables- IFRS 15  Amortized cost  IFRS 10 Sometimes apply some or all of asset and liabilities is its way of settlement-Cash or another
Financial  All other Financial  FV through P&L  IAS 28 IFRS 9: Apply (IFRS 9, IAS 32, IFRS 7) instrument. (Investments)
Instruments instruments: recognized  FV through OCI  IFRS 16 Parties involved ( Presentation- IAS 32)
when and only when the Classification is based on both: Lessor accounting: Lease receivables applies  Issuer: the one who has the obligation
entity becomes a party to  Business Model IFRS 9 for Impairment and Derecognition Recognizes: F/L or E/I
the contract  Contractual Cash Flow Lessee: Derecognition of Lease Liability (IFRS 9) Note: Holder of EI applies IFRS 9
PART 1: Accounting: Characteristics Derivatives: embedded in leases (IFRS 9)  Holder: the one who holds the right
 Trade date: date S1 S2 BM: BM: Other  IAS 19 Recognizes F/A
>> Hold Hold to
committed collect
BMs  IFRS 2 Nonfinancial item using IAS 32,IFRS 9 and IFRS 7:
to
 Settlement date: date collect
and sell  IFRS 4 (Purchase of sell at a future date/Designated through P&L)
received/delivered CCFC= Amort. FVOCI FVPL Instruments that are settled in the entity’s own  Subject to net settlement
Note: Changes in value are SPPI Cost (manda equity instrument:  Not in accordance to expected sale or purchase
recognized for FVPL tory)
 Financial asset What are part of P&L:
and FVOCI Other FVPL FVPL FVPL o Nonderivative- receive variable  Amortization of premium of discount (debt securities
Initial measurement: CCFC o Derivative- pay variable, received fix at FVOCI or amortized cost
 FA and FL @FVPL- FV Note: The entity may designate FI  Financial Liability
 Gains or losses (difference b/n TC and FV)
 FA and FL not @FVPL- FV measured @ FVPL irrevocably at o Nonderivative- deliver variable  Change in FV in FVPL
(plus/minus) transaction initial recognition o Derivative- receive variable, deliver fix
Note: FVOCI- an election for EIs  Interest revenue (effective interest method) for Debt
cost  Equity instrument instrument at FVOCI and Amortized cost
Note: (Debt instruments) Reclassification: (prospectively) o Nonderivative – receive fix  Debt instruments: amortization of amortized TC
Capitalized TC are  FA: FVPL/FVOCI/AC if o Derivative- Pay fix, receive fix  Impairment (FVOCI and Amortized cost)
amortized to P&L using EIM and only if Business Note: When the FI gives one party the choice of  Gain or loss on sale: (Debt instrument at AC and
model no longer applies. settlement, then it is a Derivative FI FVPL)
Note: If transaction price is not  Reclassification date: 1st
at FV = Gains or losses (FV  Reclassifications
day of the reporting Gross CA= Amount at initial recognition-Principal o FVPL-FVOCI
hierarchy) recognized in P&L or period following the repayments (+/-) o FVPL – Amortized cost
Amortized Cost = Gross CA – Loss allowance for FA
Gains or losses (other sources change in business What increases or (decreases) investment o Amortized cost- FVPL
of FV) deferred over the term model. account?  Cumulative gain or loss previously recognized in OCI
or when derecognized No reclassification for:  Debt securities (AC and FVOCI): as equity when Debt instrument at FVOCI is
 EIs @ FVOCI Premium amortization- (decrease) derecognized “Reclassification adjustment” – actually
 FV option has been Discount amortization – increase the gain of loss on sale
exercised in any o FVOCI to FVPL
circumstance for FA or FL Derecognition:  Gains and losses (Debt Instrument @ FVOCI)
Impairment (except for POCI)  Full  Foreign exchange gains and losses (Debt instruments
 Provision for expected credit o Gain or loss = CA – Consideration @FVOCI)
losses received What are part of OCI:
Impairment xxx  Partial  Change in FV: Difference b/n amortized cost and FV
Loss Allowance xxx o Previous CA is allocated b/n the “Investment Revaluation Reserve” (Debt instrument
 Note: Debt instruments @ remaining and the derecognized based @ FVOCI)
FVPL are NOT impaired on the RELATIVE FV  Loss on expected credit losses (Debt instrument @
 Stage 1: (12-month expected o Gain or loss = CA of the derecognized – FVOCI)
losses consideration of the part derecognized  Gains and Losses (Debt instrument @ FVOCI) until
Stage 2: Lifetime credit derecognized or reclassified
losses; Int Rev applying EIR to Note: SMEs are measured at AMORTIZED COST Debt instrument: Presentation
the GCA; more than 30 days ONLY  FVPL
past o Financial asset – current asset
Stage 3: Lifetime credit o Interest income – P&L
losses; Int rev applying EIR to o Interest receivable – current asset
Amortized cost; more than  AC and FVOCI
90 days past due o Financial Asset – Noncurrent asset
Credit loss = PV of Cash flows o Interest receivable – current asset
that are due – PV of expected o Interest income –P&L
cash flows Presentation of Credit allowance on SFP:
 FVOCI- Part of revaluation reserve
Credit loss for FA that is credit-  Amortized Cost- Deduction from the gross carrying
impaired at the reporting period amount to arrive at the Amortized Cost
that is not POCI: How are the related interest, dividends, losses and gains be
CL= Asset at GCA – PV of est. classified?
future CF at orig EIR When do financial asset and financial liability be offset?
How is treasury shares accounted for?
 Disclosures – IFRS 7

IAS 20 Note: Government Grants are Specific Expenses: Note: Grants (Local/Nationa/International) will Classification
Government income  Same period as the relevant not be recognized until there is a reasonable  Grant related to asset
Grants expenses assurance:  Grant related to income
Depreciable Assets:  That the entity will comply to the condition; Note: Benefit of a gov’t loan @ below the market rate = GG
 P&L in proportions in which and Note: Government Grant is recognized as an income on a
D/E on the asset is  The grant(s) will be received systematic basis
recognized Note: Recognition to P&L – on a receipts basis Presentation Related to Asset
Nondepreciable Assets: Note: Repayment of Government grant is a change Balance Sheet
 Fulfillment of the obligation in accounting estimate  Grant related to Asset: (Purchase/Construct/Acquire)
and over periods that bear  Grant related to income: Option 1: Set up a deferred income
the cost of meeting the Deferred Grant Income xxx Option 2: Deduct the Grant in arriving at the CA of asset
obligation Loss on repayment xxx Cash Flow Statement (Cash)
Grants with a number. of Cash or A/P xxx  Present in ‘Investing activities’: Inflow and outflow are
attached conditions:  Grant related to asset not netted
 Consolidated grant amount is Asset or DGI xxx Presentation Related to Income
apportioned Cash or A/P xxx Option 1: Separately or under Other Income
Grant becomes receivable Option 2: Deduct from related expenses
(compensation or immediate
financial support) Disclosure
 Recognized on the period it  Accounting policy and methods of presentation
becomes receivable  Nature and extent of GG and other forms
Income when:  Unfulfilled conditions and contingencies
IFRS for
 Proceeds become receivable
SMEs
 When conditions are met
 Revenue criteria not yet met
but proceeds is already
received is a liability
OTHER
DESCRIPTION MEASUREMENT DISCLOSURE
TOPICS
Petty Cash PCF Note: the amount of replenishment in Imprest and
Fund  Imprest Fund System Fluctuating are the same
 o Establishment
PCF xxx
Cash in Bank xxx
o When expenses are made – Memo entry in PCF
journal
o When the fund is replenished – Expenses are
recorded and cash is withdrawn
Expenses xxx
Cash in Bank xxx
o When the fund is unreplenished: Adjusting entry
Expenses xxx
PCF xxx
o Reversal of entry (Unreplenished)
PCF xxx
Expenses xxx
o Replenishment and Increase of fund
PCF xxx
Expenses xxx
Cash in Bank xxx
 Fluctuating Fund System
Bank Recon Purpose: to determine how much cash should we present in the
balance sheet
IAS 23 Used to produce a qualifying asset. Could be: Include: (should be directly attributable to the Disclosure [IAS 23.26]
Borrowing  property, plant, and equipment and investment property acquisition, construction or production)  amount of borrowing cost capitalised during the
Cost during the construction period,  interest expense calculated by the effective period
 intangible assets during the development period, or interest method under IAS 39,  capitalisation rate used
 "made-to-order" inventories  finance charges in respect of finance leases What if silent whether specific or general?
Qualifying assets but not under IAS 23: recognised in accordance with IAS 17
 qualifying assets measured at fair value, such as bio- Leases, and
logical assets (IAS 41 Agriculture)  exchange differences arising from foreign
 inventories that are manufactured, or otherwise currency borrowings to the extent that
produced, in large quantities on a repetitive basis and they are regarded as an adjustment to
that take a substantial period to get ready for sale (for interest costs
example, maturing whisky) Measured using:
  Borrowed funds: the actual costs incurred
less any income earned on the temporary Note: if the asset is Specifically financed, and part of it is used
investment of such borrowings in the working capital, such should be treated as general
 General pool: capitalization rate to the ex- borrowing
penditure on that asset

Total Capitalizable BC:

Specific (Actual BC-Interest income) xxx ** Total Ave. expenditures xxx
General (Total Ave. Exp*Cap rate)** xxx Applicable to specific xxx
Total Capitalizable BC xxx Applicable to general xxx
Total Expenditures xxx
Total cost of the asset xxx Reminder: see if the completion is more than 1 year but less
than 2 years because the fraction will not be the same.
IFRS 8 Basic truth: One entity with different industries that earn revenues Reportable segment (10% or more of the Required Disclosure:
Operating and incur expenses and these results are reviewed regularly by the combined):  Sales in all circumstance
Segment chief operating decision maker. Such has a discrete financial  Combined Revenues (includes  P or L in all circumstances
information. intersegment revenue)  Asset
Note: Not all operating segments are reportable segments  Absolute amount compared to the greater  Liabilities
of the absolute amount of the combine Disclosure about a major customer: (FaToSe)
Segment reporting Profit (those reported a profit) and Loss  The fact of reliance to the major customer
Profit or Loss includes the following: (those who reported loss)  Total amount of revenue from the major customer
 External Sales  Combine Assets  Identity of the segment/segments reporting the
 Internal sale Note: at least 75% of the entity's total external revenue
 External cost revenue is included in reportable segments Not required to be disclosed: (DePoFiRi)
 Internal cost Note: Interest revenue and interest expense are  Deferred tax assets
 Allocated costs reported separately unless a majority of the  Postemployment benefit assets
segment revenue is from the interest.  Financial instruments
 Rights arising from insurance contracts
Reconciliations: Note: The following Disclosure are required only if (i)regularly
Reportable sales xxx provided to CODM or (ii) if those amounts are amounts are
Non-reportable sales xxx included in the relevant measure:
Total xxx  PAIN I DIE
Intersegment sale (xxx) o PAS 1 par 97
 Entity Sale xxx o Amortization
o Intersegment revenue
Reportable Profit xxx o Non-cash material items
Non-reportable Profit xxx o Interest (income and expense)
Intersegment Profit (xxx) o Income tax expense
Share in Assoc profit xxx o Depreciation
Unallocated items: o External Revenue
Income xxx  ALJI
Expenses (xxx) o Asset
Entity Income xxx o Liabilities
o Joint Venture (Int in P&L)
o Investment in Assoc (Int in P&L)

IAS 36 Impaired: Recoverable amount < Carrying Amount Note: Reversal of an impairment loss for goodwill
Impairment Terms to be considered: is prohibited.
of Assets  Carrying amount
 Recoverable amount (higher between)
o Fair value less cost of disposal(net selling price)
o Value in Use
Note: CGU uses Value in Use
IAS 36 applies to (among other assets):
 land
 buildings
 machinery and equipment
 investment property carried at cost
 intangible assets
 goodwill
 investments in subsidiaries, associates, and joint ventures
carried at cost
 assets carried at revalued amounts under IAS 16 and IAS 38

IAS 24 Who are the related parties? Related Party Transactions: Required disclosures (RAM)
 transfer of resources  Relationships: (PUN)
Related Party  A person or a close member of a person in a reporting entity  services, or o Name of Parent Subsidiary and/or
Transactions who: (CSM)  obligations o Ultimate controlling party and/ or
o control or joint control between related parties, REGARDLESS of whether a o Next most senior parent
o significant influence price is charged  Amounts incurred by the entity for the provision of key
o member of the key management management personnel services that are provided by
 An entity and the reporting entity are: (JACK’S PET) the separate management entity
o members of the same group  Management compensation: (SPOTS)
o One entity is an associate or joint venture of the other o short-term employee benefits
entity o post-employment benefits
o joint ventures of the same third party o other long-term benefits
o One is a joint venture and the other is an associate o termination benefits
(Both belong to the same third party o share-based payment benefits
o entity is a post-employment defined benefit plan If there was indeed a transaction, minimum disclosures are:
(employees of reporting entity or another related  Amount of transaction (AOAE)
party)  Outstanding balance, terms and conditions, whether
o entity is controlled or jointly controlled by a person secured or unsecured and nature of consideration
identified above  Allowance for doubtful account for the outstanding
o person who has a control of an entity is a key member balance
of the other entity  Expense recognized during the period in respect of
o provides key management personnel services to the doubtful accounts due from related parties
reporting entity
IAS 10 Adjusting Events Events after the reporting period Note: FS is authorized for issue when the board has  Significant non-adjusting events must be disclosed.
Events After Non-adjusting Events Between END of reporting period and DATE
reviewed and authorized it. (a) the nature of the event and
the when FS is authorized for issue (b) an estimate of its financial effect or a statement
Reporting that a reasonable estimate of the effect cannot be
Period made
 The date the FS is authorized for issue

LITTLE THINGS:
NRV = estimated selling price- estimated cost to complete the product and estimated cost of selling the product
Costs to sell = incremental costs of disposing an asset excluding finance cost and income taxes
Cost of purchase = purchase price, import duties, other non-refundable taxes, transport and handling costs
Cost of conversion = DM + DL + OH
Reminder: For the audit of inventory where Purchases and net income are also asked, note that every change in Purchases affects COGS which in effect affects Net income 
Purchases (O), Net income (U). Furthermore, Beginning Inventory and the Purchases are DIRECTLY related to the COGS while the Ending Inventory is DIRECTLY related to the Net Income.
An increase in the Purchases has a corresponding Increase in the Ending Inventory. Thus, offsets the effect in the Net Income.
Accounting estimates:
 Depreciation- PPE
 Depletion – Wasting Assets
 Amortization –Intangibles
IFRS 9 impairment model applies to: (Provision of expected credit losses/loss allowance)
 FA at amortized cost
 FA at FVOCI
 Lease receivables
 Contract Assets
 Financial Guarantee contracts