LIABILITIES
Measurement
PROVISIONS AND CONTINGENCIES
Full PFRS PFRS for SMEs PFRS for SEs
Best Best estimate required to settle the Best estimate required to settle the
estimate obligation at the reporting date obligation at the reporting date
LEASE ( LESSEE ACCOUNTING)
Recognition
Full PFRS PFRS for SMEs PFRS for SEs
The lessee is required to account for Operating Lease Model Operating Lease
the lease as a FINANCE LEASE under Model (no finance
Finance Lease Model
the new accounting standard lease recognize)
(Classify based on transfers of risk
and rewards incidental to
ownership)
LEASE ( MEASUREMENT)
Full PFRS PFRS for SMEs PFRS for SEs
Present Value of Lease Fair Value or If LOWER, The Lessees and lessors shall recognize lease
payment to be made Present value of the expense or income in the period when they
over lease term minimum lease payment are incurred or earned, respectively.
EMPLOYEE BENEFITS (POST EMPLOYMENT BENEFIT)
Defined Contribution Plan
MEASUREMENT
Full PFRS PFRS for SMEs PFRS for SEs
Similar to IFRS for The contribution payable for Accrual Method
SMEs; however, if the a period by the employer to (Approach)
contributions to a DC the fund is recognized as a
plan do not fall due Liability for a Defined
wholly within 12 Contribution plan No consideration
months after the end after deducting any for changes in
of the period, the amount already paid. future salaries
future contributions As an expense, No recognition of
are discounted. unless other actuarial gains
provision of the PFRS and losses
for SMEs requires the
contribution be
recognized as part of
cost of an asset
DEFINED BENEFIT PLAN (LIABILITY)
MEASUREMENT
The DB liability is the net total The DB liability is the net NOT APPLICABLE, only
of: total of: defined contribution
• The present value of • The present value of plan is followed by the
the DB obligation at the end the DB obligation at the end small entities
of the reporting period; • of the reporting period;
Plus any actuarial gains (less • Less the fair value at
any actuarial losses) not the reporting date of plan
recognised due to the assets (if any) out of which
corridor method; the obligations are to be
• Less any settled directly
unrecognised past service
costs;
• Less the fair value at
the reporting date of plan
assets (if any) out of which
the obligations are to be
settled directly.
DEFINED BENEFIT PLAN (LIABILITY)
(Actuarial Gain or Loss)
Recognized through other Recognized NOT APPLICABLE
comprehensive income immediately in Profit
or Loss
Recognized
immediately through
other comprehensive
income
ACTUARIAL VALUATION METHOD
Used in measuring the Required, if information that
defined benefit plan is needed to make such
calculation is available.
INCOME TAX
CURRENT TAXES MEASUREMENT
Full PFRS PFRS for SMEs PFRS for SEs
Similar to PFRS for SMEs except The amount expected to be paid to Tax Payable
IAS 12 is silent on the (recovered from) the taxation Method
discounting current tax authorities, using the tax rates (and
tax laws) that have been enacted or
substantively enacted by the
reporting date. Current taxes are not
discounted
DEFERRED TAXES
RECOGNITION
Similar to PFRS for SMEs but Deferred tax is provided for all Deferred Income Taxes
there are additional exceptions temporary differences and the Method
for initial recognition of asset carryforward of unused tax losses,
and liability; with a few exceptions:
The initial recognition of
an asset or liability other
than in a business The initial recognition of
combination which, at the goodwill
time of the transaction, And the outside basis
does not affect differences (that is, temporary
accounting profit or difference arising from
taxable profit. investments in subsidiaries,
branches, joint ventures and
associates) from foreign
investments that are
essentially permanent in
duration.
DEFERRED TAXES
MEASUREMENT
Measured at the tax rates that are Measured using the tax rates (and tax Measure using the Tax
expected to apply to the period laws) that apply or have been Rates and laws that
when the asset is realized or the (substantively) enacted by the have been enacted or
liability is settled, reporting date. substantively enacted
at the reporting date.
