Measurement - Initial and Subsequent Recognition and Impairment

Section 11

Section 12
Section 13
Section 16
Section 17

Section 18

Section 24

Section 25

Section 23

Section 28

Section 21

Section 29

Section 34

Impairment

Leases

urement - Initial and Subsequent Recognition and Impairment

Items
FA/FL under Section 11 (LCDT-CNN-CBALL)
Debt instruments that meet the conditions of paragraph 11.9
Debt instruments that are classified as CA/CL
Commitment to receive a loan
Investment in nonconvertible P/S and nonputtable P/S and O/S (publicly traded)
Investment in nonconvertible P/S and nonputtable P/S and O/S (all others)
FA/FL that constitutes a financing transaction
FA/FL under Section 12 (C-CHAD)
Inventories
Investment Property
Property, plant and equipment
Intangible assets, separately acquired
Intangible assets, as part of business combination
Research and development costs
Government grants
does not impose specific future performance
imposes future performance
received before the recognition criteria
Borrowing cost
Revenues
if constitutes a financing transaction
exchange of goods that are dissimilar in nature and has commercial substance
services (percentage of completion)
if outcome of transaction cannot be estimated reliable for services rendered
Plan assets
Termination benefits, general
Termination benefits, not due 12 months
Short-term employee benefits
Provisions

Deferred Tax Asset

Biological asset / Agricultural produce
if FV can be measured reliably without undue cost or effort
if FV cannot be measured reliably without undue cost or effort
Acquisition of tangible and intangible assets in extractive activities

Financial asset at amortized cost/ CLI

Inventory
PPE and Investment Property carried at cost

LESSEE
Leased asset
Lease liability

LESSOR (DIRECT FINANCING)

Lease receivable
Asset for lease
Unearned interest income

LESSOR (SALES TYPE)

Lease receivable
Sales
Unearned Interest income

Cost of sales
Inventory
Cash

Initial Measurement

Transaction price including transaction cost

PV of all future payments

FV (normally the transaction price)
Cost of purchase, conversion and other costs
Purchase price, legal services, transfer taxes
Cost (Purchase price, dismantling, other attributable cost)
Cost
FV at acquisition date
Expensed

Income when grant proceeds are receivable @FV of asset re

Income when performance of conditions is met @FV of asset
Deferred income @FV of asset received
Expensed

Fair Value of consideration received or receivable less trade discounts, volume reb

PV of all future receipts and shall recognize interest reve

FV of consideration received ; FV of consideration given up ; CA of cons

(Costs incurred over Estimated total costs) * Contract Pr

Income is to the extent of expenses recognized as recove

Fair value
Best estimate
Discounted present value
Undiscounted amount
Best estimate

Net carrying amount (Gross less valuation allowance)

FVLCTS
Cost
Capitalized @ Cost (Section 17 &18)

at the end of each reporting date

at each reporting date
when there is an indication of impairment (assessed at each reporting date)

FV of lease asset or PV of MLPs and UGRV whichever is lower

FV of lease asset or PV of MLPs and UGRV whichever is lower

Gross rentals + Residual value, whether GRV or UGRV

PV of MLPs + PV or Residual Value, whether GRV or UGRV
Gross minus net investment

Gross rentals and residual value, whether GRV or UGRV

FV of lease asset or PV of MLPs and UGRV whichever is lower

Gross minus net investment

Cost of asset sold + IDC

Cost of asset sold
IDC cost

Subsequent Measurement

amortized cost
undiscounted
cost less impairment
FV
cost less impairment
PV of all future payments
FV
LCNRV
FV, if can be measured without undue cost or effort ; otherwise, cost
Cost less accumulated depreciation and impairment
Cost less accumulated amortization and impairment loss
Expensed

ceeds are receivable @FV of asset received

e of conditions is met @FV of asset received

ncome @FV of asset received

Expensed

able less trade discounts, volume rebates and prompt settlement

pts and shall recognize interest revenue

consideration given up ; CA of consideration given up
Estimated total costs) * Contract Price

nt of expenses recognized as recoverable

Net carrying amount (Gross less valuation allowance)

FVLCTS
Cost less accumulated depreciation and impairment
Cost less accumulated depreciation and impairment

not subject to impairment test

not subject to impairment test
subject to impairment test

PV of MLPs and UGRV = FV of leased asset + IDC

MLPs = Rental payments, GRV or BPO

If asset will not revert back to lessor, do not include residual value in computations

Exclude the PV of UGRV to cost of sales and Inventory

Income Tax
A
T
L

Accounting income > Taxable Income

Taxable Temporary Difference
Deferred Tax Liability
Example:
Gross Profit
Dep'n
Net Income

Acctg Dep'n
2000
800
1200

Tax Dep'n
2000
1000
1000

CA
2000
800
1200

TB
2000
1000
1000

PPE
Dep'n
CA

T
D
A

Taxable income > Accounting Income

Deductible Temporary Difference
Deferred Tax Asset
Example:
Sales
Unearned
Total profit

Unearned service revenue: 1000

Accounting
3000
0
3000
CA
1000

Unearned Rev.

Tax
3000
1000
4000
TB
0

Events after the Reporting Period

Reporting Date
ADJUSTING EVENTS (CBI-AFP)
1. Settlement after the reporting
period of a court case when the
entity had present obligation at the
end of the reporting period
2. Bankruptcy of customer
3. Sale of inventories after reporting
period may give evidence to NRV at
reporting date
4. Determination of cost of assets
purchased or the proceeds from
assets sold before the end of
reporting date

NON-ADJUSTING EVENTS
All others not included in the adjusting events (CBI-A
Require disclosures only

entity had present obligation at the

end of the reporting period
2. Bankruptcy of customer
3. Sale of inventories after reporting
period may give evidence to NRV at
reporting date
4. Determination of cost of assets
purchased or the proceeds from
assets sold before the end of
reporting date
5. Profit sharing or bonus payment
given that the entity has present
obligation at the end of reporting
date
6. Discovery of fraud, errors

Related Parties
RELATED PARTIES (AffAssJoKClIP)
Aff
Affiliates
Ass Associates (20%-50%)
Jo
Joint Venture
K
Key management personnel
Cl
Close family members of an individual (individual's spouse and children, spouse's ch
I
Individuals owning directly or indirectly an interest in the voting power that gives the
P
Postemployment benefit plans

Transition to IFRS for SMEs

requires full retrospective application with 5 mandatory exemptions, 12 optional exemption
MANDATORY (M-ADHD)
M Measuring noncontrolling interest
A Accounting estimate
D Derecognition of financial assets and liabilities
H Hedge accounting
D Discontinued operations

GENERAL
If impracticable, apply paragraph 35.7 -35.10

Example: Installment sale, Accelerated Depreciation, Prepaid Expense

A>T

CA>TB Note: This applies to asset

CA<TB Note: This applies to liability

Example: Probable and measurable litigation loss, estimated warranty, impairment loss, re

T>A

CA> TB Note: This applies to liability

CA<TB Note: This applies to asset

TING EVENTS
e adjusting events (CBI-AFP).

losures only

Authorization of FS

nd children, spouse's children and dependents of the individual or individual's spouse)

ng power that gives them significant influence (20% or more of share ownership)

, 12 optional exemptions and 1 general exemption.

OPTIONAL (FSBS-CRC-DEADS)
F
Fair value deemed cost
S
Share-based payment transactions
B
Business combination
S
Separate financial statement
C
Cumulative translation differences
R
Revaluation deemed cost
C
Compound financial instruments
D
Deferred Income Tax
E
Extractive activities
A
Arrangements containing lease
D
Decommissioning liability
S
Service concession arrangements

ty, impairment loss, research cost, doubtful accounts