Features PFRS For SE PDF

The PFRS for Small Entities (SE) 1
Part 1
Introduction
And
General Issues
Yumul Dator and Associates

Part 1 Introduction And General Issues
1 Scope of the Framework

3 Financial Statement Presentation
5 Accounting Policies, Estimates and Errors
16 Provisions and Contingencies
24 Foreign Currency Translation
25 Events After the End of the Reporting Period

Accounting updates
• Financial Reporting Standards Council
(FRSC) December 2017
• Board of Accountancy (BOA) –February 20,
2018 BOA Resolution No. 19-2018
• Securities and Exchange Commission
Sec Memorandum circular No. 5, 2018 –
March 26, 2018
Adoption of Philippine financial reporting
standards for small entities
SRC Rule 68
Large/PAE Medium sized Small Entities Micro Entities
Entities
Total Assets of P Total Assets more than Total assets of Total assets and
350M > or Total P 100M to P 350M or between P 3M to P liabilities are below P
Liabilities P 250M> total liabilities of more 100M or total liabilities 3M
than P 100M to P of between P 3M to P
250M 100M
FULL PFRS/IFRS PFRS FOR SMEs PFRS FOR SMALL PFRS FOR SMALL
ENTITIES ENTITIES OR
January 1, 2019 INCOME TAX
(Early Application permitted)

Exemption. . .
• Entities who have operations or investments that are
based or conducted in a different country with different
functional currency.
• a subsidiary of a parent company reporting under the
full PFRS or PFRS for SMEs
• A subsidiary of a foreign parent company which will be
moving towards IFRS or IFRS for SMEs pursuant to the
foreign country’s published convergence plan
• Either as a significant joint venture or associate, is part
of a group that is reporting under the full PFRS or
PFRS for SMEs Yumul Dator and Associates
Exemption. . .
• A branch office or regional operating headquarter of a
foreign company reporting under the full IFRS or IFRS
for SMEs
• Has a short term projection that show that it will breach
the quantitative thresholds set in the criteria for a small
entity. The breach is expected to be significant and
continuing due to its long-term effect on the company’s
asset size
• Has been preparing financial statements using PFRS or
PFRS for SMEs and has decided to liquidate
• Such other cases that the SEC may consider as valid
exception from the mandatory adoption of PFRS for SE

The PFRS for Small Entities 7
Financial Reporting Made Simpler.

• 150 pages
• 487 paragraphs
• Completely stand-alone
• Designed specifically for Small Entities
• January 1, 2019

How does it differ from full IFRSs and
PFRS for SMEs? 8
• Much smaller
– 150 pages (including glossary)
– 230 pages (PFRS for SMEs)
– 3,000 in full PFRSs
• Organised by topic
• Simplifications from full PFRSs and PFRS
for SMEs

Disclosure simplifications 9
• Big reduction in disclosures:

– Full IFRSs – more than 3,000 items in the
disclosure checklist
– IFRS for SMEs – roughly 300 disclosures
– PFRS for SEs – roughly 180 disclosures

Why for 3rd Financial Reporting Framework
The 2017 Board of the Association of Certified Public

Accountants in Public Practice (ACPAPP) conceived
the idea of presenting a reporting framework for
micro, small and medium sized entities.
This was in response to Government’s effort to

transform the country’s economy to make it more
inclusive, and to encourage micro entrepreneurs to
comply with reportorial requirements by providing
them with simplified financial reporting.
What would the audit report say? 11
• Something like:
“In my opinion, the accompanying financial statements
present fairly, in all material respects, the financial
positions of the Company as at December 31, 2018
and 2017, and of its financial performance and its cash
flows for the years then ended in accordance with
Philippine Financial Reporting Standards for Small
Entities.”

Section 1 Scope of the Framework 12
• Defines SE as used by SEC:

– not publicly accountable, and
– publish general purpose financial
statements for external users
• Listed companies may not use, no matter
how small
SEC Memo Circular 5, 2018

Section 3
Financial statement
presentation

Section 3 Financial statement presentation 14
• Fair presentation: presumed to result if

PFRS for SEs is followed (maybe need for
supplemental disclosures)
• Full compliance: State compliance with
PFRS for SEs only if the financial
statements comply in full
• Comparatives: At least one year
comparative financial statements and note
data
Section 3 Financial statement presentation 15
• Complete set of financial statements:

– Statement of financial position (24a)
– Statement of Income (24b)
– Statement of changes in equity (24c)
– Statement of cash flows (24d)
– Notes (24e)

Section 3 Statement of financial position 16
• May still be called “balance sheet” (24a)

• Current/non-current distinction (31 – 33)
• Sequencing, format, and titles are not
mandated (34)

Section 3 Statement of financial position 17
a. property, plant and equipment in classifications appropriate to the entity;

b. trade and other receivables showing separately amounts due from related parties,
amounts due from other parties, and receivables arising from accrued income not yet
billed;
c. inventories, showing separately amounts of inventories:
i. held for sale in the ordinary course of business (for example, inventories held by retailers and
the finished goods of a manufacturer);
ii. in the process of production for such sale (for example, the work in progress of a
manufacturer); and
iii. in the form of materials or supplies to be consumed in the production process or in
the rendering of services (for example, raw materials).
d. trade and other payables, showing separately amounts payable to trade suppliers,
payable to related parties, deferred income and accruals;
e. provisions for employee benefits and other provisions;
f. liabilities and assets for current tax;
g. deferred tax liabilities and deferred tax assets (as applicable); and
h. classes of equity, such as paid-in capital, share premium, and retained earnings.

Section 3 Statement of Income 18
• No extraordinary items (39)

• Analysis of Expenses
- by Nature (40a)
- by Function (40b)

Section 3 Statement of Changes in Equity 19
• Reconciliation between the carrying amount

at the beginning and end of the period for
each component of equity.
• If the only changes to equity in the current period or
any comparative period presented in the financial
statements arise from profit or loss, payment of
dividends, corrections of prior period errors, and
changes in accounting policy, the entity may
present a single statement of income and retained
earnings in place of the statement of income and
statement of changes in equity
Section 3 (41- 54) Statement of cash flows 20
• All SEs must present a statement of cash

flows
• Option to use the
– indirect method, or
– direct method
to present operating cash flows

Section 3 (56-60) Notes 21
• Disclose basis of preparation (ie PFRS for

SEs)
• Summary of significant accounting policies
• Supporting information for items in financial
statements
• Other disclosures
Does not require the disclosure of significant

accounting judgments and estimates
Section 5
Accounting
Policies

Section 5 (80-95) Accounting policies,
Estimates and Errors 23
• If PFRS for SEs addresses an issue, must

follow PFRS for SEs
• If PFRS for SEs does not address an issue:
– Choose policy that results in most relevant and
reliable information
– Or use concepts/pervasive principles in Sec 2
– May look to guidance in PFRS for SMEs

Section 5 Accounting policies 24
• Change in accounting policy: (80-85)

– Applied to the carrying amounts of assets and liabilities
at the beginning of the current period. Any cumulative
effect shall be recognized as an adjustment to the
opening balance of retained earnings (or other
component of equity, as appropriate) of the current
period
– Comparative information shall not be restated.
• Change in accounting estimate: (86-89)
prospective
• Correction of prior period error: (90-92)
restate prior periods if practicable
Section 5 Accounting policies 25
• Correction of prior period error: (90-92)

o The carrying amounts of assets and liabilities at the
beginning of the current period shall be restated to
correct the material prior period error
o Any cumulative effect shall be recognized as an
adjustment to the opening balance of retained earnings
(or other component of equity, as appropriate) of the
current period
o Comparative information shall not be restated.

Section 16 Provisions & contingencies 26
Initial recognition
298 An entity shall recognize a provision only when:
a) the entity has an obligation at the reporting date as a
result of a past event;
b) it is probable (ie more likely than not) that the entity will
be required to transfer economic benefits in settlement;
and
c) the amount of the obligation can be estimated reliably.

Section 16 Provisions & contingencies 27
• Accrue if an obligation arising from a past

event and amount can be estimated reliably
• Disclose (no accrual) contingent liability

Section 24 Foreign currency translation 28
• 432An entity shall record the foreign currency transaction

on initial recognition in its functional currency, by
applying to the foreign currency amount the spot
exchange rate between the functional currency and the
foreign currency at the date of the transaction.
• 433 At the end of each reporting period, an entity shall
translate any foreign currency monetary items using

the closing rate. An entity shall recognize, in profit or
loss in the period in which they arise, exchange
differences arising on the settlement of monetary items
or on translating monetary items at rates different from
those at which they were translated on initial
recognition during the period or in previous periods.
Section 25 Events after End of Reporting Period 29
• Adjust financial statements for events after

the balance sheet date that provide further
evidence of conditions that existed at the end
of the reporting period
• Do not adjust for events or conditions that
arose after the end of the reporting period
• Dividends declared after end of period are
not a liability

Section 25 Events after End of Reporting Period 30
Date of authorization for issue

442An entity shall disclose the date when the financial
statements were authorized for issue and who gave that
authorization. If the entity’s owners or others have the
power to amend the financial statements after issue, the
entity shall disclose that fact.

Part 2
Statement
Of
Financial Position

Part 2 Statement Of Financial Position
8 Inventories
9 Investments in Associates
11 Investment in Property
12 Property, Plant and Equipment
13 Intangible Assets Other than Goodwill
17 Equity
21 Impairment of Assets
23 Income Tax
27 Biological Assets
Section 8 Inventories 33
Cost of inventories
157 An entity shall include in the cost of inventories all
costs of purchase, costs of conversion and other costs
incurred in bringing the inventories to their present
location and condition.

Section 8 Inventories 34
• Cost Formulas
- specific identification for:
not ordinarily interchangeable and;
goods or services produced and segregated for specific
projects (167)
– FIFO or weighted average for others (168)
– LIFO is not permitted (168)
• Impairment (lower of cost or market) (156)
• Section 21 - Impairment of Assets covers impairment
requirements for inventories.
Section 27 Biological Assets 35
Subsequent
Measurement
Measurement
Current Market
Change/ P&L
Price
Biological Assets
Cost Less Accum
Cost Model Dep and Accum
Impairment
Current Market
Agricultural produce Sec 8 Inventory
Price

Section 9 Investment in Associates 36
173An associate is an entity, including

an unincorporated entity such as a
partnership, over which the investor
has significant influence and that is
neither a subsidiary nor an interest in
a joint venture.

Section 9 Investment in Associates 37
Measurement - accounting policy election

175 Aninvestor shall account for all of its investments in
associates using one of the following:
a) at cost less impairment; or
b) the equity method

Section 11 (202- 212) Investment property 38
203 Investment property is property (land or a

building, or part of a building, or both) held by the
owner to earn rentals or for capital appreciation or
both, rather than for:
a) use in the production or supply of goods or
services or for administrative purposes, or
b) sale in the ordinary course of business.

Section 11 (202- 212) Investment property 39
• Cost Model or Fair Value model

• If fair value can be measured reliably
without undue cost or effort, use Fair Value
• Otherwise, must treat investment property
as property, plant and equipment using
Section 12

Section 12 Property, plant & equipment 40
Property, plant and equipment accounted for under this

213
Section are tangible assets that:
a) are held for use in the production or supply of goods or
services, for rental to others, or for administrative
purposes; and
b) are expected to be used during more than one period.

Measurement at recognition
216An entity shall measure an item of property, plant and

equipment at initial recognition at its cost.

Measurement after initial recognition

• cost model (221 – 228)
• the fair value model (229 – 230)
230If a reliable measure of fair value is no longer available
without undue cost or effort for an item of property, plant and
equipment measured using the fair value model, the entity shall
thereafter account for that item under the cost model
The carrying amount of the property, plant and equipment on
that date becomes its cost
It is a change of circumstances and not a change in accounting
policy. Yumul Dator and Associates
Depreciation method
227 An entity shall select a depreciation method that
reflects the pattern in which it expects to consume the
asset’s future economic benefits. The possible
depreciation methods include the
• straight-line method,
• the diminishing balance method and
• a method based on usage such as the units of
production method.

Section 13 Intangibles other than goodwill 44
An intangible asset is an identifiable non-monetary

239
asset without physical substance.

Such an asset is identifiable when:
a) it is separable, i.e., capable of being separated or
divided from the entity and sold, transferred, licensed,
rented or exchanged, either individually or together with a
related contract, asset or liability, or
b) it arises from contractual or other legal rights,
regardless of whether those rights are transferable or
separable from the entity or from other rights and
obligations. Yumul Dator and Associates
An entity shall measure an intangible asset initially at

247
cost.
• Separate acquisition
The cost of a separately acquired intangible asset
248
comprises:
a) its purchase price, including import duties and non-
refundable purchase taxes, after deducting trade
discounts and rebates, and
b) any directly attributable cost of preparing the asset for
its intended use.
General principle for recognizing intangible assets

An entity shall recognize an intangible asset as an
240
asset if, and only if:

a) it is probable that the expected future economic
benefits that are attributable to the asset will flow to the
entity;
b) the cost or value of the asset can be measured reliably;
and
c) the asset does not result from expenditure incurred
internally on an intangible item.
Acquisition as part of a business combination
249If an intangible asset acquired in a business

combination, the cost of that intangible asset is its fair
value at the acquisition date.

Measurement after recognition

255An entity shall measure intangible assets at cost less
any accumulated amortization and any accumulated
impairment losses. The requirements for amortization are
set out in this section.
The requirements for recognition of impairment are set

out in Section 21 - Impairment of Assets.

Amortization over useful life

• Amortise over useful life. If unable to
estimate useful life, then use 10 years
• Impairment testing – follow Section 21

Section 21 Impairment of assets 50
An impairment loss occurs when the carrying amount of an

asset exceeds its recoverable amount
• Inventories - write down market value (selling

price), if below cost (362)
• Other assets - write down to recoverable
amount, if below carrying amount (365)
• Recoverable amount is the greater of fair
value less costs to sell and value in use (372-378)
Section 23 Income tax 51
Accounting policy
An entity should make an accounting policy choice to
402
account for income taxes using either

a) the taxes payable method or
b) the deferred income taxes method.

Section 17 Equity 52
316 An entity shall recognize the issue of shares or other equity instruments
as equity when it issues those instruments and when another party is
obliged to provide cash or other resources to the entity in exchange for the
instruments:
a) Subscription receivable – deduction to equity
b) if the entity receives the cash or other resources before the equity
instruments are issued, and the entity cannot be required to repay the cash
or other resources received, the entity shall recognize the corresponding
increase in equity to the extent of consideration received.
c) to the extent that the equity instruments have been subscribed for but not
issued, and the entity has not yet received the cash or other resources, the
entity shall not recognize an increase in equity.

Part 3
Statement
Of
Profit or Loss

Part 3 Statement Of Profit or Loss
15 Leases
18 Revenue
19 Borrowing Costs
22 Employee Benefits

Section 18 Revenue 55
a) the sale of goods (whether produced by the entity for

the purpose of sale or purchased for resale);
b) the rendering of services;
c) construction contracts in which the entity is the
contractor. A construction contract is a contract
specifically negotiated for the construction of an asset or
a combination of assets that are closely interrelated or
interdependent in terms of their design, technology and
function or their ultimate purpose or use;

Section 18 Revenue 56
d) deposits or receivables yielding interest; and

e) dividends from investments in shares of stock that are
not accounted for using the equity method.
Principle for measurement is fair value of

consideration received or receivable

Section 15 Leases 57
292 A lessee shall recognize all lease payments as expense

in profit or loss in the period in which they are incurred.
293A lessor shall recognize all lease receipts as income in

profit or loss in the period in which they are earned.

Section 19 Borrowing costs 58
• All charged to expense when incurred

• No capitalisation

Section 22 Employee benefits 59
387Employee benefits are all forms of consideration given

by an entity in exchange for service rendered by
employees, including directors and management. An
entity shall recognize the cost of all employee benefits to
which its employees have become entitled as a result of
service rendered to the entity during the reporting period:
a) as a liability, after deducting amounts that have been
paid directly to the employees
b) as an expense, unless another section of this
Framework requires the cost to be recognized as part
of the cost of an asset
Section 22 Employee benefits 60
Post-employment benefit
An entity should account for the post-employment benefit
plans using the accrual approach in accordance with the
minimum retirement benefit required under Republic Act
(RA) No. 7641, otherwise known as The Philippine
Retirement Pay Law, or company policy if superior than
that provided by RA 7641.
Accrual approach is applied by calculating the expected
liability as of reporting date using the current salary of the
entitled employees and the employees’ years of service,
without consideration of future changes in salary rates
and service periods.
Part 4
Special Topics

Part 4 Special Topics
6 Basic Financial Instruments

7 Other Financial Instruments
26 Related Party Disclosures
29 Transition to the Framework

Section 6 (96- 125 ) Basic financial
instruments 63
• Section 6 is an amortised historical cost

model with one exception:
– Equity investments with quoted price or
readily determinable fair value are at fair
value through P&L. (103 b)

Section 6 Basic financial instruments 64
• Scope of Sec 6 includes:

a) cash;
b) the following receivables and payables provided they meet the
requirements in paragraph 99:
i) bank deposits;
ii) trade receivables and payables;
iii) loans receivable and payable;
iv) notes receivable and payable; and
c) investments in non-convertible preference and non-puttable ordinary
shares. Non-puttable shares in an entity are shares that cannot be sold
back to the entity at the option of the holder.

Section 6 Basic financial instruments 65
• Amortised cost – effective interest method

• Must test all amortised cost instruments for
impairment
• Reversal of impairment
• Derecognition

Section 7 Other financial instruments 66
Initial measurement
131 When a financial asset or financial liability is
recognized initially, an entity shall measure it at its fair
value, which is normally the transaction price.

Section 7 Other financial instruments 67
Subsequent measurement
132 At the end of each reporting period, an entity shall
measure all financial instruments within the scope this
section at fair value and recognize changes in fair value in
profit or loss,
except as follows: equity instruments that are not publicly
traded and whose fair value cannot otherwise be
measured reliably, and contracts linked to such
instruments that, if exercised, will result in delivery of such
instruments, shall be measured at cost less impairment.
Section 26 Related party disclosures 68
Related party defined
447A related party is a person or entity that

is related to the entity that is preparing its
financial statements (the reporting entity).
a)A person or a close member of that
person’s family is related to a reporting
entity
b)An entity is related to a reporting entity
a) A person or a close member of that person’s

family is related to a reporting entity if that person:
i. is a member of the key management personnel of
the reporting entity or of a parent of the reporting
entity;
ii. has control over the reporting entity; or
iii. has joint control or significant influence over the
reporting entity or has significant voting power in it.

b) An entity is related to a reporting entity if any of the following conditions applies:
i. the entity and the reporting entity are members of the same group
(which means that each parent, subsidiary and fellow subsidiary is
related to the others);
ii. either entity is an associate or joint venture of the other entity (or of a
member of a group of which the other entity is a member);
iii. both entities are joint ventures of a third entity;
iv. one entity is a joint venture of a third entity and the other entity is an
associate of the third entity;
v. the entity is a post-employment benefit plan for the benefit of employees
of either the reporting entity or an entity related to the reporting entity. If
the reporting entity is itself such a plan, the sponsoring employers are
also related to the plan;

Related party defined
b) An entity is related to a reporting entity if any of the following conditions applies:
vi. the entity is controlled or jointly controlled by a person identified in (a);

vii. a person identified in (a)(i) has significant voting power in the entity;
viii. a person identified in (a)(ii) has significant influence over the entity or
significant voting power in it;
Ix a person or a close member of that person’s family has both significant
influence over the entity or significant voting power in it and joint control
over the reporting entity; or
x. a member of the key management personnel of the entity or of a parent
of the entity, or a close member of that member’s family, has control or joint
control over the reporting entity or has significant voting power in it.

Disclosure of parent-subsidiary relationships

451 Relationships between a parent and its subsidiaries
shall be disclosed irrespective of whether there have
been related party transactions. An entity shall disclose
the name of its parent and, if different, the ultimate
controlling party. If neither the entity’s parent nor the
ultimate controlling party produces financial statements
available for public use, the name of the next most senior
parent that does so (if any) shall also be disclosed.

Disclosures
Disclosure of key management personnel
compensation
An entity shall disclose key management personnel
452
compensation in total.

Disclosures
Disclosure of related party transactions
453 Ifan entity has related party transactions, it shall disclose the nature of the
related party relationship as well as information about the transactions, outstanding
balances and commitments necessary for an understanding of the potential effect of
the relationship on the financial statements. Those disclosure requirements are in
addition to the requirements in paragraph 452 to disclose key management
personnel compensation. At a minimum, disclosures shall include:
a)the amount of the transactions;
b)the amount of outstanding balances;
i. their terms and conditions, including whether they are secured, and the
nature of the consideration to be provided in settlement; and
ii. details of any guarantees given or received;
c) provisions for uncollectible receivables related to the amount of outstanding
balances; and
d) the expense recognized during the period in respect of bad or doubtful debts due
from related parties.
Section 29 Transition to the Framework 75
476An entity's date of transition to this Framework is the

beginning of the earliest period for which the entity
presents full comparative information in accordance with
this Framework.

Section 29 Transition to the Framework 76
Reconciliations
484To comply with paragraph 483, an entity’s first financial statements prepared
using this Framework shall include:
a) a description of the nature of each change in accounting policy;
b) reconciliations of its equity determined in accordance with its previous financial
reporting framework to its equity determined in accordance with this Framework for
both of the following dates:
(i) the date of transition to the Framework;
(ii) the end of the latest period presented in the entity’s most recent annual financial
statements determined in accordance with its previous financial reporting
framework; and
c) a reconciliation of the profit or loss determined in accordance with its previous
financial reporting framework for the latest period in the entity’s most recent annual
financial statements to its profit or loss determined in accordance with this
Framework for the same period.Yumul Dator and Associates
No sections covering these topics 77
• Segment reporting
• Earnings per share
• Interim reporting
• Assets held for sale

SIMILARITIES WITH PFRS FOR SMES 78
• The objective behind the financial statements.

• Key concepts, such as the “recognition of assets, liabilities, income and
expenses,” accrual basis of accounting and offsetting.
• The requirement to “present fairly the financial position, financial
performance and cash flows of an entity.”
• The key principles for financial statement presentation such as the
entity’s ability to continue as a going concern, consistency of
presentation and classification of financial statement items from period
to period, disclosure of comparative information, materiality and
aggregation and disclosures on accounting policies.
• Certain provisions of PFRS for SMEs such as those for related party
disclosures, changes in accounting estimates and subsequent events,
among others.

KEY DIFFERENCES FROM PFRS FOR SMES 79
• As PFRS for Small Entities aims to simplify a number of requirements
under PFRS for SMEs, there are key differences between the two
financial reporting frameworks, such as the following:
• PFRS for Small Entities does not have the concept of other
comprehensive income and does not require entities to present a
statement of comprehensive income.
• For the statement of income, PFRS for Small Entities does not provide
for a list of minimum items to be presented in the statement of income,
making this new financial reporting framework less prescriptive than
PFRS for SMEs, as far as this statement is concerned.
• PFRS for Small Entities has fewer disclosure requirements. One
example is that PFRS for Small Entities does not require the disclosure
of significant accounting judgments and estimates.

KEY DIFFERENCES FROM PFRS FOR SMES 80
• For changes in accounting policies or correction of prior period errors, PFRS for Small
Entities has less onerous requirements. For example, they don’t require small entities to
restate prior year’s balances. Any impact from the change in accounting policy or
correction of errors will only be reflected in the opening balances of the current year’s
financial statements.
• PFRS for Small Entities simplifies the requirements for measuring inventories (i.e.,
assessing if they are impaired) as it only requires the comparison of cost against the
“probable selling price to willing buyers as of reporting date” (i.e., the market value),
instead of the “selling price less costs to complete and sell” concept under PFRS for
SMEs.
• PFRS for Small Entities also simplifies lease accounting as it does not contain the concept
of “finance lease” nor does it require lease expenses or income to be recognized on a
straight-line basis over the term of the lease. Under PFRS for Small Entities, lessees and
lessors shall recognize lease expense or income in the period when they are incurred or
earned, respectively.
• Lastly, PFRS for Small Entities incorporates more policy options for small entities. One
example is that small entities are now allowed to measure their investment properties
either at cost or at fair value. Another one is that small entities with biological assets can
now carry such assets as either at cost or Dator
Yumul at current market price. PFRS for SMEs, in both
and Associates
cases, only allow such assets to be carried at fair value.

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The PFRS for Small Entities (SE) 1

Yumul Dator and Associates

1 Scope of the Framework

25 Events After the End of the Reporting Period

Yumul Dator and Associates

Yumul Dator and Associates

exception from the mandatory adoption of PFRS for SE

Financial Reporting Made Simpler.

Yumul Dator and Associates

Yumul Dator and Associates

• Big reduction in disclosures:

Yumul Dator and Associates

The 2017 Board of the Association of Certified Public

This was in response to Government’s effort to

Yumul Dator and Associates

• Defines SE as used by SEC:

SEC Memo Circular 5, 2018

Yumul Dator and Associates

Yumul Dator and Associates

• Fair presentation: presumed to result if

• Complete set of financial statements:

Yumul Dator and Associates

• May still be called “balance sheet” (24a)

Yumul Dator and Associates

a. property, plant and equipment in classifications appropriate to the entity;

Yumul Dator and Associates

• No extraordinary items (39)

Yumul Dator and Associates

• Reconciliation between the carrying amount

• All SEs must present a statement of cash

Yumul Dator and Associates

• Disclose basis of preparation (ie PFRS for

Does not require the disclosure of significant

Yumul Dator and Associates

• If PFRS for SEs addresses an issue, must

Yumul Dator and Associates

• Change in accounting policy: (80-85)

• Correction of prior period error: (90-92)

Yumul Dator and Associates

Yumul Dator and Associates

• Accrue if an obligation arising from a past

Yumul Dator and Associates

• 432An entity shall record the foreign currency transaction

translate any foreign currency monetary items using

• Adjust financial statements for events after

Yumul Dator and Associates

Date of authorization for issue

Yumul Dator and Associates

Yumul Dator and Associates

Yumul Dator and Associates

Yumul Dator and Associates

173An associate is an entity, including

Yumul Dator and Associates

Measurement - accounting policy election

Yumul Dator and Associates

203 Investment property is property (land or a

Yumul Dator and Associates

• Cost Model or Fair Value model

Yumul Dator and Associates

Property, plant and equipment accounted for under this

Yumul Dator and Associates

216An entity shall measure an item of property, plant and

Yumul Dator and Associates