C A S H A N DC A S H

I
a U l v A L F N T S

Presentation:Current Asset valuation:Cash Face value

Foreign currency rate at time of exchange.

CASA
. CASH IN BANK
cash: eclassification
a

not Restricted Balance

if restricted:a
compensating
->

·Disbursement check VALID: deduct b)cash in closed Banks Receivable

·
released Disbursement check is INVALID:
·
delivered · unreleased a
stale
·
X stale ·
undelivered postdated
· x postdated
NOTE: when was redeposited?
it

Date
of clearing.
C. CASA FUND

set aside for what PURPOSE?

CURRENT and OPERATING PURPOSE: Cash NON-CURRENT / NON-OPERATING:Others
Example:Travel Fund Dividend Fund Example: .LT Inv. Fund Redemption Fund
Ps
·

Fund
contingency Fund
Interest Fund PC ·

Bond sinking Fund

hand
Payroll Fund change Fundon Fund
Expansion
·

adj. bal of currencies & BS Date

PCF
cash
3. CASH ON HAND undeposited collections. VALID checks.
s customers' checks INVALID - other classification

CASA FQUIVALENTS
subject
-> to
insignificant risk of
change in value.
Note:Traveler's check. Bank Draft -

secured cash
Examples:
·
Commercial Paper ·
Time Deposit ·

Manager'sCheck. Money Order

·

Money Market Ins.

·

Treasury Bills ·
lOU fr. Officers :Receivable

Maturity:3 mos. CF · CF must be, Debt ins. Eaty. Ins.

3 mos. 1yr. Current Asset Redeemable PS:faty in form

Iyr. Non-current Asset ·Debtin substance:CF

·

certificate of deposit:ce
PFllY CASH FUND Imprest system Fluctuating Bal
PCF set PCF
XX up XX
Accountability:PCFImprest Balance
CIB XX CIB XX
3. Cash and Non-cash item that
should be on hand

Cash count Use ofPCF Exp. xX

No Entry PCF
items actually on hand xX

currencies Fund PCF

Exp. XX
XX
Cash items:Replenishment checks PC short lover XX
PCShort lover xx Replenishment
·Accommodated checks CIB XX
CIB XX?based on
IC weakness. rem. 19Sh

Pre numbered
~

-DisbursementVouchers Exp. XX Yr. End ASE PCShort lover xx

Non. Cash items ~Accom. Check Reverse peshort lover xx
Defective CIB XX
Nxt yr
Employee IOUS PCF XX
BANK RFCONCILIATION
per Bank per count
-
per Book per -

accountability Note:CR Memo-UnrecordedBank Credits

Unadj. Bal XX Unadj. Bal. XX DR Memo-UnrecordedBank Dedits
I XX CR MeMO XX Bank Error-assumed to be corrected
OCS DR MeMO
(xx) (xx) next month.

Bank Errors +- XX Book Errors +/- XX

correct Cash Bal. XX Adj. Bal XX

PROOF OF CASH

yc/DI
i
Rules For and OC Prior month!

i
For CR Memo and DRMemo prior month:
currentmonth. currentmonth.

Rule 2 For Errors Bank or Book

1. Prior Month Error, correctedin currentMonth ist column:Normal Recon. item

if correction is: to cash Receipt

to cash Disb.

B. Prior Month
Error, Not Yet corrected in currentmonth 1stColumn:Normal Recon. item

Jusually per books 4th column:Remain erroneous

c. CurrentMonth Error, Not Yet corrected in currentmonth 4th column:Normal Recon. item

Receipt Disb.:

Month
1. Current Error, correctedin currentMonth understatement Errors:ignore
overstatement Errors:fr. both Rec. andDisb.

· A UD 1 T

>Working Capital CACL

Routinary Business Process

Non-Routinary Business Process

RAP FAP Order to Cash Acquire to Retire

St
-AuditRisk TOC+ ST
Purchase to
pay TOC Financing cycle
Plan to
Inventory ST > PPE/Intangibles/ Investments
"Audit Risk ST Hire to SHE
Retire > Non trade Labs

Business Process Review

I C S -
-

Sales Order
Sale Order
Process
Recording

- --

collection
Delivery Deposit slip /
Delivery Receipt Deposit Bank statement

I sale luv.
DSS<3S/GL/SL
X

Remittance
Billings Recording
customer

Remittance Advance + OR
 Control Objective protection from cash loss WCGW? Cash Loss
use Imprest system:1) Requestcustomer pay directly to bank. cask
c. collections are depositedon a DAILYBASIS. 13 Assertion Affected Existence AR
3)Customers pay thru checks Restrictively endorsed
4)use cash Reg. Machine and /or Prenumbered ORs.

5.
Regular bank recon

checks received thru Mail

:Receives RA; Restrictively

checks + endorsed and prepare pre-listing of receipts.
check + list Treasury
RA + list
Accounting
c.
Treasury prepare cash/check andmake the deposit.
3.) Accounting updates 6L/SL.

PURCHASE10 PAY

Requisitioning Recording
Form

Requisitioning -

↓
Payment Approval;
Purchase check preparation
Purchase
Order and Release
order
X

Voucher
Receiving Ap voucher
Preparation
-

Report SPIGLISL
and Recording
Receiving

Control Objective ensure validpurchases are being approved for payment.

-

agreeing does. In voucher package PO, RR, SI

all disb. shouldbe made thru checks.

lastperson who signed checks:release
cancellation of the roucher does by the one who signs the checks last a release the check.

cash
WCGW? Misappropriation of disb. Payment of roucher twice. 13 Assertion Affected. Existence
Payables
unauthorized payments. Unrecordeddisk.

Payment:invalid purchases. completeness

aty. Existence For cash:Existence Rights

and
ASSET Overstatement
meas. Valuation Procedure:Bank Recon Validation v Proof of cash

Bank confirmation cash count

aty. completeness
LIAB Understatement
meas. Valuation
SHE
Overstatement
UNDEPOSITED COLLECTIONS
Note: applicable to PCF 9UC.
Accountability fr. Cash Receipt Journal
others Intact ignore
Intact
x I accountability
Cash Items as currencies
cash count customer checks
b)valid

Non-cash Items any evidence of disbursements

BANK RFCONCILIATION - validation Auditprocedures

per Bank Per Book

BC;current Bal.
month BS
S Unadj. Bal XX Unadj. XX
Gl
I XX CR MeMO XX
currentmonth
cut-off OCS DR MeMO (xx)
BS
(xx) BS
Bank Errors +- XX Book Errors +/- XX

correct Cash Bal. XX Adj. Bal XX

FRAUD RELATED TO CASH

I
kiting overstate caSh Mgt.
window dressing recordtrans of sp to current prd. Fraud

Lapping cover theft Employee

SalamiFraud steal resources at a time Fraud
Government Grants

standard Applicable:PAS 20

·
Definition
Gov't
Grants-assistance from the gort. wh includes outright cash support, subsidies, compensation, financial assistance
for construction of assets.

·Recognition
grants are recognizedif there is reasonable assurance that:

a) entity will compliedto the condition attached.

b.) Grant will be received.

Grant are treatedas Income amortized over the yrs. relatedexpo is incurred.

Income Unconditional Donation

·DeferredInc Conditional Donation

Liability upon receipt of grant.

lypes of Grants
·

:Relatedto Income match recognition of Income to relatedcost andexpense.

receiptof gort. Loan at below market

rate /0% [Link]:benefit is the gort, grant
Face value XX NIR FIR always!
pr loan
of
|xx)
Discount/[Link]. if resulted to Premium No gout. Grant.
Grantis Asset both is
asset andgrant measured & fair value.
a Non-monetary
alternatively, both is measuredof nominal art.

Immediate cash support income when entity qualifies to receive it.

Relatedto Asset
primary condition is to purchase, construct, acquire LT Assets.

Depreciable assets Inc. recognition match with depreciation.

maybe presented in ES as either:a) DeferredIncome
b)Reduction to CA of asset

Grant Become Repayable

in
I
accounting estimates. repayment is appliedfirstto:
Income unamortizedDeferred Inc.

Excess PIL

Grant is related to

netted to ch Repayment "CA of Assets

Asset

DeferredInc. repayment is appliedfirstto:

unamortizedDeferred Inc.

EXCESS PIL
Agriculture

Applicable Std:PAS 41

Living Plants Living Animals

Living Plant Price in age.

change no change
PAS 41
·Agricultural Produce physical change as of BS Date.
Bearer plants PAS 16:PPE birth is a Physicall
all must be met:
I addedto arrive @ FVCTS

not met at usedin production supply of [Link]

PAS4) b) expectedto bear for I acc pod.
applies c) Remote likelihoodto be sold
XPN:incidental sales

inc. in FUCTS of tree

not harvested I unit

Agricultural Agri. Prod.
-

PAS41 harvested a units

Produce
BAS AP

Tree -
Bearer Plant Tree -

PAS 4I

2 units
*

PAS 4I PAS 16

Initial Recognition FULOTS cost

All cost incurred expensed Initial cost

BS Date Measurement FULCTS cost or Rev. Model

in FVLCTS
Always P/2

price -

active market xX OTS Transfertaxes xCTS -

Inc. Taxes
Est. Transport cost (xx) Levies ·Finance cost

Price Farm's Gate - FU XX Commissions Trans. Cost of bringing asset to market

=st. cost to sell (xx)

FVLCT3 XX
 I 35

Applicable Standard:PAS 2

Presentation:Always current Asset

Definition:1) Heldfor sale in the OcB. 5.) Factory supplies

2.) Raw Materials a) service supplies

3.) WIP
BM, DL, OH
4.) FG

Initial Measurment:At cost

cost Example Merchandising Manufacturing ·cost not included:

cost
ofPurchase purchase Price Merchandise
x
storage cost

Import Duties RM selling

x cost
Inventory
Admin cost
·Non-refundable
X
taxes

conversion cost - -
DL, FOA Abnormal Losses
x

DACS ·All cost in Differences

Forex
x
Freight
-

x
interest cost
Insurance bringing goods into
·

while in saleable condition.

Transit

ownership Inventories
of

control
Gen. Rule:Legal Title
Ownership

Exceptions:
WHO OWNS GOODS?

Term Buyer seller

shipping cost

FOB
sUpng Pt X Rule:Owner pays
FOB seller X

FOB seller's Place X

FAS X

CIF X

CF X

Bill Hold X

Installment sale X

sale we high prob. of Return X

Goods man, at customers spec X

special order X

OB Destination
F

FOB
Buyer X

FOB Buyer's place X

X
Lay away sale
sale w/ Buyback X v

sale under in.

Financing X

Hold for shipping Ins. X

sale on Trial Approval X

inventory pledged X
 - W

standard:PAS 16 Presentation:Non-current Asset.

held for production supply of goods/services or for admin purposes.
Definition:Tangible Properties
expectedto be used for I pod.

Initial Measurement:

Acq. after:expensed
1
Cost

DACS/Incidental costs PPF to condition for intendeduse.

2 -
costs incurredin bringing
Enhanced benefit capitalized repair maintenance expense
increase: Life efficiency
capacity safety
3 PU of Est. Future Ret. Costs
Dismantling, Decommissioning, Restoration costs.

Provisions:a) Present Obligation () Amtcan be measured reliably.

b) Probable outflow
1. Modes of
Acquisition
cash
A purchase Purch. Price AExchange

Import Duties ·
wI commercial substance

Non-refundable taxes (net of disc. (rebates) 1) FMU Asset given up

of

2) FMU asset received + cash paid

B on Account -

Cash purchase price, net ofdisc. (whether taken or not? 3) BU of asset given UP
-cash rec

FMU asset given XX

c On Installment PV of installment payment & Disc. Rate. BU asset given (xx)

all on
Exchange XX

D) snare Issuance 17 received

FMU of PPE

2) FMU Eqty. issued

of
+ cash paid who commercial No alL
3) par value of Eaty. issued cash reg. A cash paid
BUICAof asset given up -
cash rea

E) Issuance of Bonds 1) FV of Bonds

Note:commercial substance significant diff.

-

2) FU of Assets
3)Face
in cash flow
amt Bonds
of

self
5) constructedDM, DL, FOA Grants
I Donation

I I
cons. Cost Purch. Price inc.
x in cost non. Related Related

Acq. Cost Income

xincome or PPE XX

G Trade In ~ Def. Inc. Don. Cap XX

Trade In Allow. XTrade In Allow. XX DACS capitalized capitalized

cash paid XX BU Asset
of
given (xx) Donation
* rel. Exp. capitalized () fr. APIC
CASH PRICE XX all XX Pufuture Ret. Cost capitalized capitalized

Borrowing Cost PAS 23)

Gen. Rule:Outright Exp sources:

. Specific Dependent on QA

XPN:Capitalized cost
Qualifying
of Assets. FIR -
Actual BC XX

during [Link]. temporary inv (xx)

[Link].
Notes:1) Cap. Rate:FIR NET Actual BC X
X

2) Cap. Prd:Construction Pod. only.

3) cap. Limit:cap. BC Actual BC c General -

Independentfr. QA.
Actual BC XX
during CP weightedAve. Actual Exp.
s
xx

CAD. BC (xx) Ave. Int. rate on all GB*xx Act. BC fr. all GB
>

Int. EXP XX
vs. Act-BC C
CAPITALIABLE GBCOSTxx Proc. [Link]
 3 combination Acquisition of Land SBIdg.
specific BC ·If Bldg. has SIGNIFICANT VALUE

Net Act. BC XX Acq. Cost + DACs allocate to:

Gen. BC
Land
WAAE pro-rate based
XX

SAP used Dep. Over UL

Proc. fr. SB
|xx) on

Bldg.
Bal. fin. by GB XX
Demolished
Ave. Int. Rate (all GB)
x %

cap. BC fr. GB XX XX cost:Old Bldg. Demolition (rel-costs

TOTAL CAP. BC XX whoff as loss chargedto New Bldg.

2
Bldg. has NO SIGNIFICANT VALUE

Acq. Cost + DACs allocate to Land only

Demolition (rel costs New Bldg.

Before deductedfr. cost of Bldg.

3
Proceeds fr. selling items

Effective 0110112022 deducted

x

recognizedother Inc.

Land
permanently enhances land
value of

4 costof land Improvement

Depreciable subj. to wear tear Land Improvement

partofBlue
Print Bldg.

Gen. Rule:Outright Exp.

Taxes
5
Property
XPN:In arrears
up to date of Moq.

BS Date Measurement

cost Model
Depreciation Mtds.
Initial cost XX FIXED
A METHODS Cost-SV

Acc. Depr. (xx) .

straight-line Dep. COS c
Group Mtd similar items Total Dep
Dep. Rate
-

ACC. Imp. Loss (XX) Composite Mtd-dissimilar items Total cost

Life 3

carrying val. xX
revised DR only if there is asset.

B VARIABLE METHODS c DIMINISHING METHODS

.
Output / Production Depreciable cost SYDRate
2 Input (Ex. Working hus.) Est. Max Output /Working Ars. SYDMAd. Depreciable n(n+1)
x
cost 2

D INVENTORY METHODS small tools same items

Declining Bal. Med

life 1.5/2
2
Beg. Inv XX cribed x

purchases XX Retirement Mtd. (FIFO)

, su is ignored
End. In

proceed fr. sales ReplacementMtd. ((IF0)

DEPRECIATION XX
Impairment (PAS54) PV of net it from:

if RU CV value in use continueduse

Carrying value xX Eventual disposal (SV)

higher between use pre-tax if I disc. rate
*
Recoverable Amt. XX

IMPAIRMENT LOSS XX

FMVLCTS

NOTES:

Imp. testing is not done each ye, done only when there is indicator (external/internall
c
Testing is done:a) Individually
b) Thru COUS

Impairment of CGUS

Step 1:Determine CV of CGUS

Step 3:Allocate Imp. Loss

update or of assets using own stas. I am of CGU until exhausted

2 other Assets win PAS 36
win · PPE -

Dep. CU [Link]. -

Eaty. Med.
pro-rata based on OV bet. Imp
Intangibles [Link] [Link](cost) Dep. CV
-
·
·
PAS 34

Step 4:Consider limitation

outside -
Cash Face Val. Inventory ICNRU

Receivables -
AMC FA FMU or AMC
in [Link] on
of their own RV

(indiv. FMULCTS)
Step 2:Determine RV of CGUS

PV of net it from:

value in use continueduse

Eventual disposal (SV)
higher between use pre-tax if I disc. rate
*

FMVLCTS .
single unit disposal
·Indiv. FMU -

ignored

Appraisal /Rev. Method

per class basis:not necessary every yy, done only if significantly diff. and or at FMV.

I I
possible scenarios. nocting. Mtds. subsequent to Reval.
Fair Market value XX With Active Market Elimination Med. Trans to Rs to RE.

carrying value XX published price ·

Acc. Dep xX piecemeal
Rev. Surplus. OCI XX Quotations PPE xX for dep, assets
·
PPE XX ·Dep. Exp XX

RS: OCI XX Acc. Dep XX

RS-OCI
2) Who Active Market Proportional Med xX
·

RE XX
Rep. Cost ·
PPE
**
xX

Rem. Life CV condition % ACC.

Dep-Al xX R3/Rem. Life
Or
Total life Dep. Cost Dep. Repl. Cost1 XX
RS OCI
-
XX

FMVI soundvalue 2 Lump-sum

Rep. Cost -

Original cost
upon derecognition
Rep. AD -
ADbased on cost
of relatedasset.
Mulsound val -

carrying value
Increase in value

1) Gain on Reversal Imp.

prev, Impaired Limit:CU ATBN prev, Impaired
C) Reval. Surplus
cost Model Reval. Model
IGNORE
prew
X
Impaired prew
X
Impaired Reval. Surplus

Decrease in value

prev, Impaired Exhaust Rev. Surplus

Model ExCeSS:Imp. Loss
charged Model 2
cost to Imp. loss Reval.

X Prew ImpairedImp. Loss (No limit)

Wasting Asset Accounting

initial cost (unexplored & undevelopedWAI

1) Acq. cost
2) exp. andtral. Cost (after TF)
acts, to establish technical feasibility (comm. viability.
start:legal rights obtained
end:after (CV.
it

Prior Technical Feas. Upon establishment technical teas.

separate presentation SFP: separate presentation SFP:

Tangible EE Asset Intangible Asset c. consumed labor Tangible EE Asset Intangible F Asset

·materials

cost Model cost -

Impairment Dep on tangible cost Model Wasting Asset

IIE assets. if facts, is continuous

and ongoing.

3) Dev. Cost (intangible)

acts, to prep. WA
for comm. Extraction Production

straight line
Intangible WA
Tangible Mine PPE Depreciatedusing
shorter:
Output Mtc

4 PV of Future Ret. Cost

 - 1 -
SS- S
Standard:P- 538 Recognition:
1) Probable future economic benefit will flow.
separable
identifiable arising from contractual legal rights 2 cost can be measuredreliably.
Definition: Non-monetary
who physical substance

Measurement

Initial:at cost (PAS16)

·
BS Date:

cost Model

COSE XX Note:Salvage val. O;Dec, hardto determine.

ACC. Amrt. (xx) XPN:both is met:

ACC. Imp. (xx) commitment by 3rd party to purchase at endoflife.

carrying val. XX There is an active market.

2 Revaluation Model PAS 16

PHASES

Research Expensed 3 Production

discovery of new knowledge. commercial prod. I distribution.

lab, research Inventory
clinical testing
Note: R/D- Gen. Rule:Exp.

2 Development expensed ·
RorD
can not be distinguished treat as Research phase.
technical feasibility exists.

prototypes
>PATIS
mass testing testedfor Imp.
Useful life Amortization
can be capitalizedif all is met: Indicator x Indicator
Probable ( Measureable Finite life. Amrt. over UL X

·Available for uselsale. Indefinite life. Not Amit but tested

·technical teas. for Impairment.
Intention to complete

sufficient resources to complete

Major Classification
1 PATENT useful life 3 COPYRIGHTS

amortized wic ever is shorter subj. to amortization (in order ofpriority)

legal life (20 yrs) a) pattern ofbenefits.

Amrt. EXP XX b) straight line

ACC. Amrt. XX
22-20 yrs
cost of
defending patent:always expe 4 FRANCHISE

Equip. usedin R&D cap, dep.

and Over UL pov of Franchisee
IFF:Int. Asset
2 TRADEMARK CFF:Expensed

IP law:Legal life:auto-renew every 10 yrs. subj. to amortization Definite -

us

subj. amortization. amut.

x
Gen. Rule:not to
Indefinite -

but test
XPN:there is mgt. est. UL.
Of
for Imp.
GOODWILL
5

arising from Buscom.

unidentifiable

Methods of
computingGW d % is NRR on and Excess
FUNA Earnings is:by #of yrs.
a) Residual Approach Ave. NI XX

Payment xx Normal NI |xx)

FUNA (xx) EXCESS X

GW xX #ofyrs. #
divide GW xX

b) Ave. Earnings are capitalized

FUNA incldg. GW xx Ave N1/Cap. Rate excess disc for limited # of Yrs.
e
earnings
FUNA PXCIdg. GW (xx)
Ave. NI XX
GOODWILL XX

Normal NI |xx)
23 %is NRR on
and excess
FUNA Earnings are capitalized
EXCESS X
x
Ave. NI XX PU Factor #

Normal NI |xx) GW xX

EXCESS X

cap. Rate 1.

GW xX

Minor classifications
own use for business:Int. Asset
I COMPUTER SOFTWARE Integral part of Machine:PPE
for sale to others:
Inventory

own use for business:Int. Asset

2 WEBSIIES for advertisement/prom:OpEX

for sale to others:

Inventory

data base of customers

3 CUSTOMER (134 Purchase:Int. Assets

Internally gen:Expensed
 S S

standards: PFRS 9

·PAS 32:Presentation

·PFRS7:Disclosure

any contracts cast

7 Debt ins.
Financial Instruments financial Financial Asset Investment in bonds
asset
of one entity
financial liab. (eaty of another. I
dapat favorable investment in shares -

Faty. Ins.

rights to
exchange Deviva
7 Lives
FAat potentially far.
terms
CLASSIFICATION
FADID. If fail
OF FURL
-

BM test OFC Test Debt Eqty. Initial Meas. Subseq. Meas.

1 AMC Hold to SPPI AMC
using
-

X FU+TC
collect Test EIR

-> w/recycling
SPPI >AMC EIR
(UGUL)
De
2 FVOCI Hold to AFU-OCI -
se
FU+TC
Mandatory collect & sell Test cum. UGUL SHE-BIS

3) FUPL Held for

stock
Trading FU Debt
short-term
FV
profit
S current Trading
TC -

EXP. Eaty.
Assets

NOTES: XDNS:(irrevocable)

1)
CF characteristic test -

nature cash flow.

of 1.
Eayty. Ins. may elect Oc

> Fail PPI test -

FUPL who recycling:[Link] RE

2) FAAMC, FVOCIS FFUPL (FU options

2) Bus. Model -
how
Test entity manage investment. (Purpose)
to avoid
acting mismatch

ifthere is 1 in Bus. Model

Reclassification Prospective Application

start:1st day of rep. prd. ff. yr of 1 in BM.

Compound Financial Instrument

Bonds (Liab) Rights
stock
+

(Eaty)
↓ ↓
& FV Residual
 Y
~

*
~

X -
ROC

> Fr option

stock Rights
InU.
xxxx

↓FV is adj. yr. end

there
·
potential voting Rights
-
usedin determining if
is
-PlL sig. Inf SNI
actualyo fownership used in
Dir Inc
 FV IUU. ASSOC.
IFVPL)
Diff - RE

6,WIGBP
-> P/2

unsde
 Investment in Debt Securities
AccruedInterest

Transaction cost
FUPL
Expensed
FVOCI

capitalized
AM COSt

capitalized transaction.
8
-[Link] does not coincide wI date of

Amortization None NIR FIR NIR FIR Initial cost of

Exclude
Investment
[Link]. Face val.X NIR AMCX FIR AMC X FIR
Date of Acquisition
CV, BS Date Fair value Fair value AMC Include cash paid
UGUL D in FV P12 001-501 None

cumulative UGUL None SHE-SFB None Exclude all on sale

Gain/loss on sale PIL PlL PlL Date of sale

Include Cash Received

FUPL

FV:a Total Amt. BS Date:[Link]. X

X

b Qouted Price QPxFace Val [Link]

=

XX

a
effective rate PV =
of Face val. Int

FUOCI

sumulative value naul-end Disposal:all on sale

FUPL FVOCI & IAMC

FV, BS Date XX et SP
↓ XX et SP
↓ XX

AMC, BS Date XX CV(FVS XX

CV(AMC) XX

naIUL, End XX SHE-SFP all on sale-PL XX all on sale-PL XX

UGUL, BCG. XX

nalus currentxx C OCI-SCI

ifthere is 1 in Bus. Model

Reclassification Prospective Application

start:1st day of rep. prd. ff. yr of 1 in BM.

·IAC to FUPL or FUUCI ·FUPL tO FUOCI/IAMC

TO FUPL TO FOCI To FVOCI TO IAC

Initial cost FV FV Initial cost FV FV Date of

Date of
GIL on Reclassification GIL
*
on Reclassification None None ReCIASS.
PIL OCI ReCIASS.
(AMC FUS -

Amortization NIR EIR NIR EIR

Amortization None NIR EIR new IR new FIR

Int. Income subsequent
Int. Income NIR EIR(Orig) FV IAC to RCCIASS.
subsequent CV, BS Dat e

CV, BS Dat e FV FV to RCCIASS. nGlUL 021-SCI None Date

nGlUL PIL 021-SCI Date cumulative UGIUL SHE-SFD None

cumulative UGIUL None SHE-SFD new EIR FIR & date 1 in Bus. Model.
*
of

·FrOCI to FUPL or IAMC

TO FUPL TO IAC

Initial cost FV IAC

Date of
cumulative UGUL Trans. to Adj. against
ReCIASS.
c Equity) PIL the FV

Amortization None NIR EIR

Int. Income NIR EIR (ovig) subsequent

CV, BS Dat e FV AMC to RCCIASS

nGlUL PIL None Date

cumulative UGIUL None None
 property
Investment

standards:PAS 40

to earn rentals for prod of goods services.

and

Definition:Land & Bldg. PRECOOP) admin. purposes.

relatedto main operations.
for capital appreciation

Note:

Land undetermineduse -
Inv. Property. Property in construction/ for future use

operating least
Prop.
Inv. intention will prevail
who trans of ownership
· Leases and gamit in the future.

Finance Lease -

we trans of ownership
Parent lease prop, to subsidiary PPE
for conso. FS

Inv. Prop. if separate FS

cost Model

Initial Measurement costs + DACS subsequent Measurement

Fair value Model like FVPL

,
subject to
not depreciation.

other ISSUES

Partly Inv. Prop., Partly OCP IPPE 2) Ancillary services

Lease -
IP sex. security, maintenance
Yes Yes PPE

office. Oc Is it significant
can be sold separately? NO IP

NO who is more significant?

3 Transfer between Inv. Prop, OCP, Inventory

if there is Din use.

cost Model PPE/Inventory xx

at CA
Inv. Prop XX

Fair value Model

Inv. Prop. to PPE Inventory to Inv. Prop. PPE to Inv.

Inventory Prop.

PPE/Inutry (FVS XX Inv. Prop. (FV) XX Inv. Prop. (FVS xx

Inv. Prop (CA) *Inutry (CV) XX Imp. LOSS PIL xX

Gain on Reclas.-PIL xx Gainon Reclas.-PIL xx PPE(CA) xX

Rev. Surp. -

OCI xx
 other long. Term Investments

Cash Surrender Value

amount Insurance company pays upon pre-termination.

accrues after 3 yrs. or after 3 full payment of premium.

Beneficiary
Insured's Family company

Journal Entry Journal Entry

· Ins. Exp xx CSV XX

cash yr. 3/yr. in WIC csU

XX Ins. EXP. XX

starts to accrue.
RE xX

·CSV XX
subsequentaccrual
CSV
Ins. Exp XX

·
Cash XX
if there is
Ins. Exp. XX Div. Inc.

·cast XX

CSV XX
upon settlement
if full
not
Ins. Exp. XX

yr.
Gain xX

Bond
Sinking Fund

cash set aside for paymentof LTliab. (BP)

BP.
mirrors classification of

BP BSF

NOL NCA

Ch CA

admin. by Entity BSF acts like cash

Accounting for BSF

Trustee Trustee reports what happens

to BS Fund
turn statement of

Bal;settle BP.
 MOU. CURRENT ASSET HELD FOR SALE AND DISCONTINUED OPERATIONS

NCAAAS DISCONTINUED OPERATIONS

STANDARD:PFRS 5 STANDARD:PFRS 5

DEFINITION: DEFINITION:
sale v
Held for sale if CA can be recovered thru major line of business

I
-
-

continueduse X the
individual assets
component) segment geographical area
disposed
-
NON CURRENT ASSETS subsidiary
disposal group
D Impair Indiv. assets MEASUREMENT:
2Impair grp. of assets - GW CA
lower of > [Link]
OA alloc based RV=FULCTs
FU

MEASUREMENT:

lower of
CA
diff is charge to
*
[Link]
-
or Gain on reversal presentation
RV=PULCTS *
depreciated(NCAHFS)
not istatement of Comprehensive Income
single amount:post taxPIL
->

I for the whole

CRITERIA
(both) post-tax GlL yr.

D Available for Immediate sale. the start.

if comparative
->
SCI:as if Disc. operation from
2sale must be HIGHLY PROBABLE.

a) is committed on
mgt. selling. Revenues XX

I
-

b)Mgt. is
actively locating for a buyer. xpenses
E (xx)
-

c.) sale is expected to be completed win Iyr. Inc. Det Tax XX

fr. continuing
XPN:beyond
entity's controll Inc. tax EXD (xX) operations
d) Price is reasonable):FV) Incafter tax fr. CO xX

es unlikely to aldraw the plan to sell. [Link]. Disc. Operation XX

NET INCOME XX

CHANGE IN CLASSIFICATION

CA if
as no
reclassification 23
statement of Financial Position
lower

Amt-higher is
Recov. SSETS -CA
*
separate
↓ LIAB -
CL
fr. con. Op.
CURRENTLIABILITIES

legal contracts/law
presentobligation
constructive
LIABILITY transfer an economic resource -
to pay cash, deliver goods, render services.
pastevent

->
must
be & MEASUREABLY
PROBABLE

currentsettledwin N.O.C. win 12 mos. after BS Date.

PRESENTATION ·

Trade-related

Non-current -

residual

Examples:

Liab.
current
short-term NP
Non-current liab.

Trade andother payables Accrued Exp. &Notes Payable

unearned Rev.
! ~subscription ~ Deposit
2Bonds Payable
~ Gift cert
warranty byLeases
2EstimatedLiab (warranties & premiums) Income tax

[Link] & contingencies ⑤pensions PROVISIONS -

existing [Link] uncertain timing Iamt
be:
must
Obligation fr. Past events

Refinancing replace oldloan wl new loan. probable

-

measurable

spate is issuance Maturity Date RuleS

Asset
Liability
Gen. Rule:current Liab.
virtually certain -

Recognize
XDR:Dafter BS Date but before is Issuance CL
probable (50%) Recognize:
-

Disclose:

[Link] or Before BS Date -

NCL provision contingent Asset
③Entity has discretion to refinance for at least 12 mos. after BB possible (550%) Disclose:
(DNCL Ignore
contingent liab

Payable on demand -due to breach of covenant. Remote (<10%) Ignore Ignore

Gen. Rule:current Liab. note:

XDR:Dafter BS Date but before is Issuance -

L contingent liab, not probable or not measurable

[Link] or Before BS Date

-
NCL

MeaSUREMENT (In order of priority)

Past Events
&
Best Estimate (mgt.)
ESTIMATED LIABILITIES amount not definite 2).Expectedvalue
payee cannot be identified ③Midpoint
Promotions

⑪D PREMIUMS

customer royally program pts/credits/awards

-

Actual Redeemed
cumulative
Revenue Est. pts, to be Redeemed
PRODUCT
sales - SAP
poinis, unearned Revenue

[Link]
PRODUCT
sales - SAP

warranty liab.
 COMPOUND FINANCIAL INSTRUMENTS nOn-ITERESTBEARING
Financial Liability at Amortized Cost & Other -contains both liability & eaty. component. Face value
Noncurrent Liabilities a)
Bonds wI warrants (SP) b)convertible Bonds principal Interest

rightto acquire OS.

rights to exchange Bonds to Os. CPU of notes (Disc. on BPS

BONDS PAYABLI
ISSUANCE BONDS
OF ISSUE PRICE FVAsset Rec.
pr ofn ote:

LIABILITY FQUITY (SP) PV ofn ote:

Disc. Val. Of FCF.
TERM BONDS SERIAL BONDS

"Wo" warrants swo

Down Payment
matures on a single date. mature in Equal Installments.
xx

PU of I PV of OA Total Amt- Con. Bonds [Link] PU ofFCF

Face value x XX Face value x XX xX

Periodic periodic QoutedPrice

int.
PaymentxPV of OAxx int.
PaymentxPU of I XX COST OF ASSET xY

ISSUE PRICE xX ISSUE PRICE xX Effective Rate

INTEREST EXPENSE, Exercise of warrants conversion

INTEREST BEARING
Amortization FIR -NIR BP XX
Nominal Int. Rate:Face Value xNIR cash
-

XX -

Premium Discount SWO Prem XX

Int. Expense XX XX Realistic Rate Unrealistic Rate
prem. BP Int. Exp. XX SP-BCP XX NIR= FIR NIR F EIR
cash/[Link] 05
-

XX XX XX

Int. Exp XX Disc. BP XX OS XX

PV Face value Disc.=NIR SEIR
-

SP
=

xX

Sp XX
No Disc. Prem prem. NIR> FIR
=

JOURNAL ENTRIES:

Premium GAIILOSS OR CONVERTIBLE BONDS retire bonds & eaty.

Discount

LIABILITY [QTY.
cast XX cash XX

Ret. Price Ret. Price

Bonds Payable X
X Disc. BP
-

XX

CV of BP CV of BCP
Prem-BP xX Bonds Payable XX

612-PKL GlL = Eaty.

DATE OF RETIREMENT DEBT RESTRUCTURING

Before Maturity
On Maturity Date CV liab CV liab
GILDR GILDR
No Gain or Loss! FV Asset given
Asset swap issued /or liab settled/CnLiab. settled
wI Gain or Loss -P/L Equity swap Fush

CV Asset given Gil Disposal Gil Disposal

par value
price CV
of BP
Gain:Ret >
~

Loss Ret. Price <CVBP

-

MODIFICATION OFTERMS

AccruedInterest:Face [Link] Time CA Old Liab XX

WI S. M.0. T
10%of IV of oldlab.

-if int payment does not coincide we transaction date. PV of Rest Future (F XX
DIFFERENCE /G or L
6.1L:Recompute PU of RFCF based on EIR date rest

INCLUDE-Cash paid Ret. Price xx GHIR LOSS XX Wo S.M.0.4 x Recompute

EXCLUDE -

Ret. Price CV of BP |xx)

GAIN/LOSS xX
 1 A S E S

STAND GRD:PFRS 16 NOTE:

D EFINITION: &If P.O is exercised [Link] guaranteedRV

contract(rental rate, Escalation clause, term, security depo) [Link]./Payable xx GRUSF of Asset at endofLT.

right to use Lease Liab. xX Acc. DCD. xX

LE
aSE

for a pro of time cask XX LOSS xX

for a consideration ROVA XX

③URU is ignoredin GRU>FU of Asset at endof

LT.
ACCOUNTING:POU OF
LESSEE
DOU.
lessee's Acc. DCD. xX

INITIAL MEASUREMENT LOSS xX

Gen. Rule:Finance Lease ROVA XX

(12 mos.)
ROUA (PPE) XX
XPN:Operating Lease(Short-term
low value
Cash XX

lease liab XX

ACCOUNTING:POU OF
LESSOR
LEASE LIABILITY CLASSIFICATION
PU of min lease payment of Lessee to lessor. OPERATING LEASE

excludes executory costs (lessed to 3rd parties) andrewards. * Lease Bonus

j
who transer of risk Dep.
line method. Equal Over 1
1)Fixed Rentals straight I DC
*

addedto Assets
2. IAUCE
↑
LEASE
variable Rentals i n BS.
CA

-w/ transer of risk andrewards.

③certain purchase option either
7
⑰Guaranteed Residual value Or
-

Any of the ff.

5penalties (preterminations transfer

as ownership
of to lessee.

b)
BargainP.O-makakatipid si lessee.

Disc. Rate:1)
Implicit Int. Rate c)Lease term is $ 75% of useful life.
Sreq. I target return of lessor d)PU of MLP
is > FV.
90% of asset's

②Incremental Borrowing Rate lessee

of 2)Asset is specializednature.
of

RIGHTOF USE ASSET PRE COSt+DACS TYPES OF

FINANCE LEASE

1 PV of min. lease payment Finance

Direct

lease Incentive engagedin leasing financing.

-

[Link] bonus -

reimbursement nicessor Income source

Entry:
-

lessee-lessors lessee Journal

Kay
S a)Rentals
for more fav. term Lease Rec. (G1) xx

b)[Link]. Equipment (N)

③.Initial costs
Direct IDACS xx

Ibroker, finder's fee GROSS INVESTMENT (mLP+URV) XX unearned1.1 xX

⑭Restoration costs -

be
must written
PU of MLP RET INVESTMENT (CostEq. +DACS) (XX)
UEARUED IT. INCOME xX Presentation

BS DATE MEASUREMENT note:If there is transfer of

ownership:Lease Rec. XX

liab Amortizedcost RV is ignored U. [Link]. |xx)

lease ignore
-

-
ROUA-Cost Model deducted in sales
& cons. Lease Rec., Net xX

Depreciation:a)trans ofownership
an
b)
certain P.O
I SALES TYPE IDC
= +
expensed
-lessor is a manufacturer.
c)
No transfer ownership
of shorter Journal Entry:

d)GRV
I UL12
-

Income source: Lease Rec. XX

-
al

as
Mark-up saleS xx NI
-

b)
Rentals
OPERATING, LEASE UII xx UII
[Link].
c) ·COGS X
X
straight line Med.

MLP
sum of all Rent payment sales lower:
PU of Invtry xX

Exp.
Rent =

Lease Term AV of leased Asset

excess I deficient -

charge to Rent payable.

SALE AND LEASE BACK

operating lease

Finance Lease

pou cessor
buyer- same concept
POU lessee seller -

SP FV
=

ROUD in proportion to rights retained.

LL PU of MLP

Rights Ret. -
ROUA

Fr asset

Rights Trans.

ROVA CA Asset
= x RR/FU Asset.

SP XX

CA XX

GAID xX

RT/FU Asset
xx

GAI on Sale xx

SP > FU Excess
-
Additional Financing
-Rights Ret.
+ Rights Trans.

SP < FU Deficient -

pre-payment

+ Rights Ret.
-Rights Trans.
 FARAP 4512: INCOME TAXES

Acting Dep. (Tax Dep

Timing Difference (Now or Later) - different period of recognizing Income and Expense.
• Financial/ Accounting (Accrual Method) vs. Tax (Cash Basis)
• Results in: TTD/FTA and/or DTD/FDA
Permanent Difference (Never)- relates to income that are tax free & expenses that are non-
deductible. Those subject to FWT and CGT
Note:

1. DTL and DTA= NONCURRENT A/L. 3. ∆ Tax Rate - Change in Estimates.

2. ∆ Tax Rate- enacted by law
on
 -

-on SD

-
amtiven during
in

silent(NCANPS
$ For Pref. Share
-

in arrears (+ cy Dirs
if use LOWERY..
I classes
( for OS)
both
participating
-sub. Rec. IGNORED (CAOrNC) for SAE.