Updates in Philippine Accounting and Financial Reporting Standards 1
“Not intended for publication. For classroom instruction purposes only”.
Updates in Philippine Accounting and Financial Reporting Standards 2
Learning Activities
Name: _CHIN NIEVE S. FIGURA_
Class Schedule: _MW 4:00 PM – 5:30 PM_
Directions: Read and analyze the following standards and answer what is required.
Submit your work in the pigeon boxes which are provided in your department/college, or
to google class on or before the date as reflected in your study schedule. See Rubrics in
appendix. You may also access the rubrics in the classwork section in the google
classroom.
DEFINITION
These are the assets that do not have any
Intangible physical existence but the company expects
assets
future economic benefit from the assets and
it is either created or purchased from past
events.
RECOGNITION MEASUREMENT DERECOGNITION
It means when an asset is
The assets have the At starting the cost removed from the books and
probable future that the business the business stops recording
economic benefit and has paid to acquire
that asset.
it is expected to the asset is used to
receive in future. recognize the asset.
The asset’s cost can After the acquisition,
be reasonably the entity has two Reason for derecognition:- An
estimated. choices for asset is derecognized if it has no
recognizing capacity to remain for
The probability of future intangible asset till generating future economic
economic benefits is also the asset’s life.
benefit.
dependent upon some
feasible and realistic 1.
The cost model is The asset is no longer recorded
assumptions. If an asset used for deducting in the books and any gain and
does not satisfy these the amortization cost loss generated from the disposal
conditions then it is from the book value is reported in the income
charged to the profit and of the asset every
loss account as an statement.
year.
expense.
2. The revaluation
model directly
adjusts the asset’s
book value with a
fair value of that
“Not intended for publication. asset in the market.
For classroom instruction purposes only”.
Updates in Philippine Accounting and Financial Reporting Standards 3
DEFINITION
Asset valued at less than book value or net
Impairment of carrying value. In other words, an impaired
assets
asset has a current market value that is less
than the value listed on the balance sheet.
An asset is stated "impaired" when its
Market value (MV)less than the value listed
on the firm's financial statements such as
the balance sheet.
RECOGNITION MEASUREMENT DERECOGNITION
PAS 36 The income statement
A loss on impairment
will report the asset
is recognized as a -Presumes that
debit to Loss on derecognized when
budgets and there is any loss
Impairment (the
forecasts should not arising from the
distinction between
the new truthful value
go beyond five derecognition of the
and the current value years; for periods asset.
of the asset) and a after five years,
credit to the asset. extrapolate from the
The loss can cut back earlier budgets.
financial gain within
the earnings report
and cut back total -also outlines the
assets on the record. situations in which a
company can
reverse an
impairment loss.
“Not intended for publication. For classroom instruction purposes only”.
An investment
Updates in Philippine Accounting and Financial Reporting Standards 4
property shall be
derecognised
Investment property (eliminated from the
should be statement of financial
recognised as an position) on disposal or
asset when it is when the investment
probable that the
property is
future economic
benefits that are permanently
DEFINITION
associated with the withdrawn from use
property will flow to andReporting
Under Philippines Financial no future
the entity, and the
Investment economic
Standards, investment property is benefits
propertyare
cost of the property
property expected
can be reliably that an entity holds to earn rentalfrom its
income
disposal.
and/or capital appreciation An
. It generates cash
measured.
investment property
flows mostly independently of other assets
held by an entity. may be disposed
through sale or by
entering into a finance
lease.
RECOGNITION MEASUREMENT DERECOGNITION
[PAS 40.16] Initial
measurement.
Investment property is
initially measured at
cost, including
transaction costs.
“Not intended for publication. For classroom instruction purposes only”.
Updates in Philippine Accounting and Financial Reporting Standards 5
DEFINITION
International principle IAS 41, Agriculture, is
Agriculture that the initial normal that specifically covers
the first sector.
IAS 41 introduces a good price model to
agriculture accounting. This can be a
serious shift aloof from the standard price
model wide applied in primary trade.
RECOGNITION MEASUREMENT DERECOGNITION
IAS forty one Biological assets PAS 39: money
specifies the same ought to be Instruments:
old tests so as that a measured at initial Recognition and
biological plus or recognition and at
agricultural turn out measure was a global
the tip of every
be recognized on the accounting principle
reportage amount, at
statement of truthful price less that printed the wants
economic position, calculable prices to for the popularity and
namely: measure of monetary
sell.
Control: the assets, money
enterprise should liabilities, and a few
have possession or contracts to shop for or
Worth the pric or
rights of management sell non-financial
like a possession that truthful value of the
plus will be things.
results from a past
event measured faithfully.
Value: future
economic advantages
area unit expected to
flow to the enterprise
“Not intended for publication. For classroom instruction purposes only”.
from its possession or
management of the
Updates in Philippine Accounting and Financial Reporting Standards 6
DEFINITION
Borrowing costs are interest and other costs
Borrowing cost
that an entity incurs in connection with the
borrowing of funds
RECOGNITION MEASUREMENT DERECOGNITION
Borrowing costs
PAS 23 provides Expenses need to
that are directly guidance on how to match the accounting
attributable to the measure borrowing period of the related
acquisition, costs, particularly revenues that the
construction or when the costs of expenses generate.
production of a acquisition, If finance cost is
qualifying asset construction or being incurred to
form part of the create an asset, it
production are funded
cost of that asset should not be
and, therefore, by an entity’s general
expensed right away
should be borrowings.
but should be added
capitalised. Other
to the cost of the
borrowing costs
asset.
are recognised as
an expense.
“Not intended for publication. For classroom instruction purposes only”.
Updates in Philippine Accounting and Financial Reporting Standards 7
DEFINITION
An award in the form of reward is like
Government financial assistance in the form of monetary
grant
aid by the government to a productive
capable grantee with no return or
expectation that the funds will be paid back.
RECOGNITION MEASUREMENT DERECOGNITION
PAS 20 outlines how The liability regarding
Government grants
connected to revenue to account for the government
ought to be government grants grants should
recognized on a and other derecognize and the
scientific basis within assistance. income is recognized.
the profit and loss
statement over the
periods necessary to
match them with the
related prices that
they're supposed to
compensate.
“Not intended for publication. For classroom instruction purposes only”.
Updates in Philippine Accounting and Financial Reporting Standards 8
Required:
Write the definition, recognition, measurement and derecognition if any in the chart
above provided for the following:
a. Intangible assets
b. Impairment of assets
c. Investment property
d. Agriculture
e. Borrowing cost
f. Government grant
Thank you for completing the task. If you have
not completed, or have difficulty in accomplishing the
activity, please send me a message to our google
class or you may ask clarifications through a text
message or phone calls on the contact number
included in your course guide.
And now, you are ready for the assessment.
“Not intended for publication. For classroom instruction purposes only”.
