CURRENT

INITIAL MEASUREMENT SUBSEQUENT MEASUREMENT DESCRIPTION PRESENTATION AND DISCLOSURE

ASSETS
Cash and Cash: Face value Cash: Face value Cash Note:
cash  Cash on hand When to consider as part of cash: when redeposited or
equivalents o Bills and coins cleared?
o Checks from customers Note: Certificate of deposit is a book reconciling item
o Petty cash fund (deduction)
o Money order The following are also part of cash:
o Bank draft from customer  Travel fund
 Cash in bank  Interest fund
o Savings deposit/account
o Demand deposit
o Money market funds that permit
Company to write checks
(Unrestricted cash)
Cash equivalents
Maturity:
 < 3 months : CE
 3<1 year> : Current
Investments
Asset
 More than 1 year: NCA
E.g. Certificate of deposit
Accounts
receivable
IAS 2 Cost: Measured through Outside its scope are: Writedown of inventory
 cost of purchase  FIFO or  Financial instruments  recognized as expense in the period it occurs
Inventories  cost of conversion  Weighted Average  Biological Assets at the point of harvest  Reversal on writedown is recognized as a
 costs of bringing the Method With the scope but not in measurement reduction of the inventory recognized as
asset to its location and Fundamental principle: LCNRV (inventories held by):
expense in the period where the reversal occurs.
condition  producers of agricultural and forest
o Allowance = COGS and vice versa
 Borrowing cost that products, agricultural produce after
harvest, and minerals and mineral products Note: Defective inventory that would be immediately
meet the definition of
Qualifying Asset measured at NRV returned should not be part of Inventory and Purchases.
 Note: trade discounts, rebates,
etc. are deducted
Note: FOH is based on normal
capacity; allocation is not
increased by low production.
For abnormally high
production, FOH allocated if
decreased.
IFRS 5 Before classification: Applicable
IFRS
Non-current (Carrying amount)
Asset Held
for Sale Adjustments: applicable IFRS
Note: no gain is recognized at
the time of recognition
Held for sale and disposal group
- Fair value less cost to sell.
For distribution to owners- Fair
value less cost to distribute.
Changes in FV less cost to sell
(Higher than the CA): recognized
in P&L to the extent that is not in
excess of the cumulative
impairment loss that has been
recognised in accordance with
IFRS 5 or previously in
accordance with IAS 36.
Note: Always lower b/n CA and
the FVLCS at the time of
classification as held for sale
Note: Whether the inventory is sols in cash or
installment basis, such is no longer part of the
inventory
Note: Goods sold with the right to repurchase is
still part of the inventory (check ifrs 15)
 commodity brokers and dealers who
measure their inventories at fair value less
costs to sell
Note: Not included in the cost are
Abnormal waste, storage cost (unless
necessary before further process), admin OH not
related to production, forex differences, interest
cost (deferred settlement terms)
Impairment : Presentation:
At the time of reclassification: recognized in P&L Classified as non-current until reclassified as held for sale
unless the asset had been measured at revalued separately presented in the FS.
amount under IAS 16 or IAS 38, in which case the Disposal group: assets and liabilities are not offset.
impairment is treated as a revaluation decrease. Disclosures:
 description of the non-current asset or disposal
After reclassification: difference between the group
adjusted carrying amounts of the asset/disposal  description of facts and circumstances of the sale
group and fair value less costs to sell. (disposal) and the expected timing
 impairment losses and reversals, if any, and where in
Not subject to depreciation. the statement of comprehensive income they are
recognised
Gain or loss when it ceases to be held for sale shall  if applicable, the reportable segment in which the
part of profit or loss. non-current asset (or disposal group) is presented in
accordance with IFRS 8 Operating Segments
 Noncurrent
Assets
IAS 16 Cost: PIN plus DACs
PPE DACs: (ISIP TE)
 Installation and assembly
 Site preparation
 Initial delivery and handling
 Professional fees
 Testing (net of items sold
produced by the testing)
 Employee benefits
(acquiring or constructing)
Note: Restoration Cost (IAS 17)
Except for Machinery
(existing obligation)
Deferred payment
 Cash Price Equivalent
 PV or discounted value
Acquisition by Exchange:
(Debt or Equity securities and
Share-based payment)
 Fair value (General Rule)
 Lacks commercial
substance
-CA/IV of asset surrendered
Lump sum group of assets
 Allocation (Relative FV)
On account
 Net of cash discount
Financial Liability
 FV less Transaction costs
o Quoted Price
Either: Cost Model or Note: Subsequent costs will benefit future periods Note: Revaluation surplus is a component of OCI
Revaluation Model when it : Disclosures:
Depreciation:  Extends life  Info about each class of PPE
 Straight-line  Increases capacity and quality o Basis for measurement
Composite Take note: salvage  Improves efficiency and safety o Depreciation method
Group proceeds Note: Revaluation surplus is realized to RE over the o Useful lives/ Depreciation rates
 Declining = remaining useful life of the asset or when o Gross Carrying amount and A/D and I/L
Double Declining = (1/UL)(2) disposed or retired o Reconciliations
(1/UL) (1.5) Note: the new residual value is used in computing
SYD = L (L +1/2) the remaining depreciable amount
 Output-based Land and Building:
Service-hours worked  Accounted separately
Revalued Amount:  Allocation: Relative FV except when building is
 Fair Value unusable
 Depreciated Rep. Cost (SV)  Building
o Improvements are separately
depreciated unless part of the
blueprint
o Permanent fences: Land Improvement
 Land
o PPE
o Inventory
o Investment property
Note: Land improvements are:
 Separately depreciated
 Non-depreciable are capitalized
Bearer Plants = Self-constructed
 o Others: Defer
Self-constructed
 TMC (like acquired)
 Interest (Qualifying Asset)

IFRS 6 Cost- depending on the entity’s Either: Cost Model or Search for: (MONS) Recognize: Exploration and Evaluation Asset
Exploration accounting policy Revaluation Model  minerals, (either Tangible or Intangible)
for and Impairment: EUDI  oil, Wasting assets- non-renewable natural resources
Evaluation Wasting Asset : AEDE  natural gas and Impairment Criteria
of Mineral  Acquisition: DA= C-LV Wasting Asset:  similar non-regenerative resources
Resources  Exploration: Depletion= DR* Units extracted Expenditures include: (ATAT? SGE)
o Successful method  Exploration and evaluation expenditures
o Full cost method before technical feasibility and commercial
 Development: viability and after obtaining the right
o Intangible- Wasting Asset Doctrine:
Capitalized return of capital or payment of dividend =
o Tangible –Dep. Retained Earnings + Accum. Depletion
Separately
 Est. Restoration:
o Must be an existing
obligation

IAS 38 Initial: Cost
Intangible Research and Dev’t Cost
Assets  Research cost- expensed
 Dev’t cost – Capitalised
(Complete/ready to use
or sell)
Note: if phase not
distinguishable: Research
phase only
Patent: PIN plus DACs
Either:
 Cost Model
 Revaluation Model
Note: Amortized unless the asset
has an indefinite UL
Gains or Losses = Net proceeds –
Carrying amount
Acquired through: P-EBIG Scope does not include: FEMIO-51216193
 Purchase Means of Acquiring Initial Measurement (Costs)
 Exchange of assets the IA
 Business Combination  PIN and DACs
Purchased
 Internal generation  If deferred: Cash price
 Government Grant  Fair Value
These costs are expensed when incurred: ISTAR  Lack Commercial
Exchange
 internally generated goodwill [IAS 38.48] Substance: CA of Asset
 start-up, pre-opening, and pre-operating Surrendered
 training cost [IAS 38.69]
 advertising and promotional cos
Trademark: PIN plus DACs plus Note: Derecognition gains shall  relocation costs  FV
(filing fees, registry fees, design not be included in the revenue Classification: Business  QP- Identical asset
cost… if INTERNALLY but in other income.  Finite Life Combination  QP- Similar asset
DEVELOPED)  Infinite Life  Estimate of entity
Purchased Goodwill: Specific Intangibles: Internally generated  DACs (must be complete)
 Residual approach  Patent (Finite/Infinite) – 20 years  FV
 Direct Approach Government grant
o Competing  NV or Zero plus DACs
Goodwill through Bus. Comb. o Relative
Consideration xxx  Trademark (Indefinite)- 10 years
Amount of NCI  Purchased Goodwill
in the acquiree xxx  Copyright
FV of previously  Franchise
held interest  Leasehold
in the acquiree xxx o Leasehold improvements
Total xxx  Broadcasting License (Finite/Infinite)
FV Net Assets (xxx)  Purchased customer list
Goodwill xxx
 Service Concession Arrangement
 Gain on Bargain Purchase o Right or License
o Residual interest (Infras. Asset)
Copyright: all expenses o Concession operator
incurred in the production and o Grantor
those required to establish the Research and Development
right
 Research costs – expensed
Franchise: Lump sum or initial
 Dev’t Cost – expense unless all criteria are
franchise fee plus DACs like
met
Legal fees
Leasehold: Lump sum payment
on negotiation
IAS 40 1. Initially measured: Either: Property can be: Note: Intercompany Rental (Parent)
Investment  Purchase price plus  Cost Model  Owner-occupied – IAS 16 Consolidated FS Owner-occupied
Property (Cash Price if deferred) IFRS 5 LCFVLC  Meant for sale in the ordinary business IAS Individual FS Investment Property
 Transaction cost(PPIT) IFRS 16 (leases) 2
o Professional IAS 16 (Cost-A/D)  Held for sale IFRS 5 When is FV (always required):
fees  Fair value Model :  Investment Property – IAS 40 Measurement Entity uses FV model
o Property taxes Applied to All properties  Land
o Installation Disclosure Entity uses Cost model
Changes in P&L  Building Rentals or Capital
o Testing Continue to use until:  Both Appreciation Note: Fair Value of Assets or liabilities which are usually
Not Cost of IP: (SOA) Disposal  Or a portion recognized separately shall not be double-counted when
 Start-up cost (unless Becomes owner- such is an integral part of the Investment Property
Property Treatment
needed for bringing…) Occupied (IAS 16) (e.g. Furniture of a furnished building)
IP(insignificant portion is
 Operating losses To be sold in ordinary Mixed-use for the production and
 Abnormal amounts course of business other admin purposes) Note: IFRS 16 has amended the scope of IAS 40 by defining
(waste) (IFRS 5) IP- insignificant to the investment property to include both owned investment
2. Acquired through Barter: Note: Prepaid or accrued arrangement property and investment property held by a lessee as a
Usually FV unless: operating lease income is not Ancillary Services Owner-occupied- right-of-use asset. A lessee is required to account for right-
Exchange Carrying part of the FV of the IP significant to the of-use assets that meet the definition of investment
lacks Amount or Note: FV of IP held by the arrangement as a whole property in a manner consistent with its policy for owned
Commercial Impaired lessee as ROUA reflects investment property – i.e. using either the cost model and
Substance Value of expected CF disclosing fair value, or using the fair value model. [IFRS
Inability to measure FV at initial recognition:
asset given (including variable lease 1. Property under -@ Cost until FV is 16:BC178]
up payments) construction determinable/completed
Note: Disposal: (earlier)
Gain not Transfers: to and from WHEN AND ONLY WHEN there is change in use
 gain or loss in P&L -on remeasurement to
recognized FV, difference is Cost model: Carrying Amount do not change and the cost for
unless IFRS 16 (sale and measurement and disclosure
FV is neither CA of asset recognized in P&L
leaseback) says otherwise Fair Value Model:
measurable surrendered 2. Owned Inv. Property IAS 16: RV is Zero
 Amount of gain or loss is (applied until disposal) - FV with subsequent accounting in accordance to
3. IP held by lessee as ROUA: in accordance wt IFRS 15 IP to OP
IAS 16, IFRS 16 or IAS 2
3. Held by lessee as IFRS 16 (applied until or Inventories
IFRS 16 applies  Compensation from 3rd - Difference (P&L)
ROUA disposal)
parties for investment *Except for the above, the remaining shall continue
that was impaired/lost/ to be measured at FV
given up = P&L when it
becomes receivable
 OP to Inv. -FV at the date of change
Property -Difference b/n CA and the FV is a revaluation (IAS
16) if previously measured using IAS 16 :
FV < CA Decrease in CA is in P&L which is >
RS
FV > CA -Increase in P&L > amt needed to
restore the CA to what it would
have been (net of dep) had the prior
impairment not occurred
-remaining part of increase is
recognized in OCI and increases the
Revaluation Surplus
Inventories - FV at the date of change
to IP - Difference (P&L): COGS?
Investment Cost = PP plus TC  FV if it can be reliably Transfers:
Property Note: Borrowing costs are measured w/o undue  FV can no longer be reliably measured >>> PPE
Expensed cost with movements o CA at transfer will be the cost
IFRS for recognized in P&L o Disclosure: Change in circumstances
SMEs  Otherwise: treated as  To or from: when it meets or ceases to meet the
PPR using cost- definition.
deprecation-impairment
model
IAS 41 Biological Asset:  Agricultural produce Scope: (BAG) Note: Bearer plants – IAS 20 or IAS 16 but the produce is
Agriculture  FVLCS (Initial and end of  Always FVLCS  Biological Assets (except Bearer Plants) within IAS 41 as a Biological Asset
each reporting period)  After Harvest – IAS 2  Agricultural produce (At the point of Note: Those that are not bearer plants:
Unless FV cannot be and other standards harvest) “The plant and the produce are one”
reliably measured  Gains and Losses (P&L)  Government grants Note: Government grants (FVLCS)
Agricultural Produce:  Biological Asset: o IAS 41: Bio Asset @ FVLCS  Unconditional: recognized when it becomes
 FVLCS at the point of  FVLCS o IAS 20: Bio Asset @ CLADI receivable
harvest  CLADI if FV cannot Not applied to: (agricultural activity) (B-GIRL)  Conditional: recognized when conditions are met
 Transaction Cost- Cost to be measured reliably  Bearer plants (except its produce)  Entry:
Sell and does not include  GG related to bearer plants Bio asset xxx
transport cost  Intangible assets Grant income xxx
However: if location is a  ROUA arising from land Disclosures:
characteristic of the asset, the  Land  General
 principal market shall be Disclosures: o Gains and Losses
adjusted for the transport  Add’l (when FV is available again) o Description of each group
costs o Description of assets o Description of enterprise’s activities
Note: Gains and losses (P&L) o Explanations o Info about BA with restricted titles
o Effect of change o Commitments (development/acquisition)
SMEs:  Government Grants o Fin risk management strategy
 FV if can be obtained w/o o Nature and extent o Reconciliations
undue cost; or o Unfulfilled conditions  Add’l if FV cannot be measured reliably
 Cost-depreciation- o Significant decreases in the expected o Description of assets
impairment level of grants o Explanation
o Depreciation method
o Useful lives or Depreciation rates
o Gains or loss (disposal)
o Gross Carrying amount and A/D
o Reconciliations
IFRS 16 LESSEE: LESSEE: Requisites: Lessee POV Lessor POV
Leases Lease Liability xxx Right-of-use-asset  Lessor – Owner Finance Operating Finance Operating
Lease payments xxx  Cost Model  Lessee – Renter Lease Lease Lease Lease
Initial Direct cost xxx  Adjusted for any  Underlying asset Note: in either case, Receivable xxx Assets are
Asset xxx
EC (dismantle/restore) xxx remeasurement of the  Consideration capitalize all leased assets presented
ROUA @ cost xxx lease liability  Contract (right to control and obtain and liabilities based on the
 IAS 40 – Investment economic benefits) nature of
Note: Lease payment = net of Property Note: Remeasurement is the result of lease ROUA xxx the
lease incentives  IAS 16 - Revaluation modification. Lease Liability xxx Underlying
model… Note: Lease modification may be Asset
Separation of contract Lease Liability  Accounted as a separate lease (SAC); or Note: Lease of Land and
components (Lease and Non- Interest expense  Continued to be accounted using the Building should be treated
lease components) Lease Payments original contract (nSDIC) separately.
Lessee Lessor Reameasure: Note: Subleases are treated
 Reassessment/ separately.
Modification (Revised SALE AND LEASEBACK: (Constitutu Posesorium)
Discount Rate) Parties: Note: Rights held by a lessee under licensing agreements for
 Seller-Lessee items such as motion picture films, video recordings, plays,
 Buyer-Lessor
 allocate the shall  Change in Lease term Note: If FV of consideration than the FV of UA or manuscripts, patents and copyrights are within the scope of
consideration allocate (Revised Discount Payments for lease than the market rates IAS 38 and are excluded from the scope of IFRS 16. [IAS 38.6]
payable on the using rate)  Accounted as additional financing
basis of the IFRS 15  Future Lease  Otherwise, prepayments of lease
relative stand- Payments- Change in In case of Sale (IFRS 15):
alone prices CPI (Unchanged DR) Seller-Lesse:
 Amts. Expected to be ROUA = ROUA = (c/f) (p-a)
payable under GRV Gain/Loss = (f-c/f) [f-(p-a)]
(Unchanged DR) a = Consideration- FV of UA
LESSOR:
 Operating Lease LESSOR:
 Finance Lease
Finance Lease :
Lease receivable = Net  Finance lease income
Investment = Discounted GI  Derecognized/
Finance Lease: Impaired
Lessors other than Dealer  Modification
and Manufacturer  Changes in URV
Receivable xxx Operating Lease:
Asset xxx Lessors other than Dealer
and Manufacturer
Lease payments xxx  Lease income
Add: URV xxx
 Amortization of IDC
Gross investment (GI) xxx
 Dep. Of UA (IAS
16/IAS 38)
PV of LP xxx
 Impairment of UA
PV of URV xxx
 From rented to held
NI xxx
for sale in the OCB:
IAS 2 @CA
Operating Lease:
Initial Direct Cost xxx  Modification: Prepaid
Carrying Amount of asset xxx and Accrued in
Underlying asset xxx consider in the new
lease

For Dealers and Mftr.:
 Revenue
 Cost of sale
 Selling P&L
IFRS 9/ IAS Two main sources:
32/IFRS 7  Trade receivables- IFRS 15
Financial  All other Financial
Instruments instruments: recognized
when and only when the
entity becomes a party to
the contract
PART 1: Accounting:
 Trade date: date
committed
 Settlement date: date
received/delivered
Note: Changes in value are
recognized for FVPL
and FVOCI
Initial measurement:
 FA and FL @FVPL- FV
 FA and FL not @FVPL- FV
(plus/minus) transaction
cost
Note: (Debt instruments)
Capitalized TC are
amortized to P&L using EIM
Note: If transaction price is not
at FV = Gains or losses (FV
hierarchy) recognized in P&L or
Dealer and Manufacturer:
 Selling profit not
recognized
Classification:
 Amortized cost
 FV through P&L
 FV through OCI
Classification is based on both:
 Business Model
 Contractual Cash Flow
Characteristics
S1 S2 BM: BM: Other  IAS 19
>> Hold Hold to
collect
BMs
to
collect
and sell
CCFC= Amort. FVOCI FVPL
SPPI Cost (manda
tory)
Other FVPL FVPL FVPL
CCFC
Note: The entity may designate FI  Financial Liability
measured @ FVPL irrevocably at
initial recognition
Note: FVOCI- an election for EIs
Reclassification: (prospectively)
 FA: FVPL/FVOCI/AC if
and only if Business
model no longer applies. settlement, then it is a Derivative FI
 Reclassification date: 1st
day of the reporting
period following the
Applies to all except:
 IFRS 10 Sometimes apply some or all of
 IAS 28 IFRS 9: Apply (IFRS 9, IAS 32, IFRS 7)
 IFRS 16
Lessor accounting: Lease receivables applies
IFRS 9 for Impairment and Derecognition
Lessee: Derecognition of Lease Liability (IFRS 9)
Derivatives: embedded in leases (IFRS 9)
 IFRS 2
 IFRS 4
Instruments that are settled in the entity’s own
equity instrument:
 Financial asset
o Nonderivative- receive variable
o Derivative- pay variable, received fix
o Nonderivative- deliver variable
o Derivative- receive variable, deliver fix
 Equity instrument
o Nonderivative – receive fix
o Derivative- Pay fix, receive fix
Note: When the FI gives one party the choice of
Gross CA= Amount at initial recognition-Principal
repayments (+/-)
Amortized Cost = Gross CA – Loss allowance for FA
Note: The difference of financial instruments from other
asset and liabilities is its way of settlement-Cash or another
instrument. (Investments)
Parties involved ( Presentation- IAS 32)
 Issuer: the one who has the obligation
Recognizes: F/L or E/I
Note: Holder of EI applies IFRS 9
 Holder: the one who holds the right
Recognizes F/A
Nonfinancial item using IAS 32,IFRS 9 and IFRS 7:
(Purchase of sell at a future date/Designated through P&L)
 Subject to net settlement
 Not in accordance to expected sale or purchase
What are part of P&L:
 Amortization of premium of discount (debt securities
at FVOCI or amortized cost
 Gains or losses (difference b/n TC and FV)
 Change in FV in FVPL
 Interest revenue (effective interest method) for Debt
instrument at FVOCI and Amortized cost
 Debt instruments: amortization of amortized TC
 Impairment (FVOCI and Amortized cost)
 Gain or loss on sale: (Debt instrument at AC and
FVPL)
 Reclassifications
o FVPL-FVOCI
o FVPL – Amortized cost
Gains or losses (other sources
of FV) deferred over the term
or when derecognized
change in business
model.
No reclassification for:
 EIs @ FVOCI
 FV option has been
exercised in any
circumstance for FA or FL
Impairment (except for POCI)
 Provision for expected credit
losses
Impairment xxx
Loss Allowance xxx
 Note: Debt instruments @
FVPL are NOT impaired
 Stage 1: (12-month expected
losses
Stage 2: Lifetime credit
losses; Int Rev applying EIR to
the GCA; more than 30 days
past
Stage 3: Lifetime credit
losses; Int rev applying EIR to
Amortized cost; more than
90 days past due
Credit loss = PV of Cash flows
that are due – PV of expected
cash flows
Credit loss for FA that is credit-
impaired at the reporting period
that is not POCI:
CL= Asset at GCA – PV of est.
future CF at orig EIR
What increases or (decreases) investment
account?
 Debt securities (AC and FVOCI):
Premium amortization- (decrease)
Discount amortization – increase
Derecognition:
 Full
o Gain or loss = CA – Consideration
received
 Partial
o Previous CA is allocated b/n the
remaining and the derecognized based
on the RELATIVE FV
o Gain or loss = CA of the derecognized –
consideration of the part derecognized
Note: SMEs are measured at AMORTIZED COST
ONLY
o Amortized cost- FVPL
 Cumulative gain or loss previously recognized in OCI
as equity when Debt instrument at FVOCI is
derecognized “Reclassification adjustment” – actually
the gain of loss on sale
o FVOCI to FVPL
 Gains and losses (Debt Instrument @ FVOCI)
 Foreign exchange gains and losses (Debt instruments
@FVOCI)
What are part of OCI:
 Change in FV: Difference b/n amortized cost and FV
“Investment Revaluation Reserve” (Debt instrument
@ FVOCI)
 Loss on expected credit losses (Debt instrument @
FVOCI)
 Gains and Losses (Debt instrument @ FVOCI) until
derecognized or reclassified
Debt instrument: Presentation
 FVPL
o Financial asset – current asset
o Interest income – P&L
o Interest receivable – current asset
 AC and FVOCI
o Financial Asset – Noncurrent asset
o Interest receivable – current asset
o Interest income –P&L
Presentation of Credit allowance on SFP:
 FVOCI- Part of revaluation reserve
 Amortized Cost- Deduction from the gross carrying
amount to arrive at the Amortized Cost
How are the related interest, dividends, losses and gains be
classified?
When do financial asset and financial liability be offset?
How is treasury shares accounted for?

IAS 20 Note: Government Grants are Specific Expenses:
Government income  Same period as the relevant
Grants expenses
Depreciable Assets:
 P&L in proportions in which
D/E on the asset is
recognized
Nondepreciable Assets:
 Fulfillment of the obligation
and over periods that bear
the cost of meeting the
obligation
Grants with a number. of
attached conditions:
 Consolidated grant amount is
apportioned
Grant becomes receivable
(compensation or immediate
financial support)
 Recognized on the period it
becomes receivable
Income when:
IFRS for
 Proceeds become receivable
SMEs
 When conditions are met
 Revenue criteria not yet met
but proceeds is already
received is a liability
OTHER
DESCRIPTION
TOPICS
Petty Cash PCF
Fund  Imprest Fund System
Disclosures – IFRS 7
Note: Grants (Local/Nationa/International) will Classification
not be recognized until there is a reasonable  Grant related to asset
assurance:  Grant related to income
 That the entity will comply to the condition; Note: Benefit of a gov’t loan @ below the market rate = GG
and Note: Government Grant is recognized as an income on a
 The grant(s) will be received systematic basis
Note: Recognition to P&L – on a receipts basis Presentation Related to Asset
Note: Repayment of Government grant is a change Balance Sheet
in accounting estimate  Grant related to Asset: (Purchase/Construct/Acquire)
 Grant related to income: Option 1: Set up a deferred income
Deferred Grant Income xxx Option 2: Deduct the Grant in arriving at the CA of asset
Loss on repayment xxx Cash Flow Statement (Cash)
Cash or A/P xxx  Present in ‘Investing activities’: Inflow and outflow are
 Grant related to asset not netted
Asset or DGI xxx Presentation Related to Income
Cash or A/P xxx Option 1: Separately or under Other Income
Option 2: Deduct from related expenses
Disclosure
 Accounting policy and methods of presentation
 Nature and extent of GG and other forms
 Unfulfilled conditions and contingencies
MEASUREMENT DISCLOSURE
Note: the amount of replenishment in Imprest and
Fluctuating are the same
 o Establishment
PCF xxx
Cash in Bank xxx
o When expenses are made – Memo entry in PCF
journal
o When the fund is replenished – Expenses are
recorded and cash is withdrawn
Expenses xxx
Cash in Bank xxx
o When the fund is unreplenished: Adjusting entry
Expenses xxx
PCF xxx
o Reversal of entry (Unreplenished)
PCF xxx
Expenses xxx
o Replenishment and Increase of fund
PCF xxx
Expenses xxx
Cash in Bank xxx
 Fluctuating Fund System
Bank Recon Purpose: to determine how much cash should we present in the
balance sheet
IAS 23 Used to produce a qualifying asset. Could be: Include: (should be directly attributable to the Disclosure [IAS 23.26]
Borrowing  property, plant, and equipment and investment property acquisition, construction or production)  amount of borrowing cost capitalised during the
Cost during the construction period,  interest expense calculated by the effective period
 intangible assets during the development period, or interest method under IAS 39,  capitalisation rate used
 "made-to-order" inventories  finance charges in respect of finance leases What if silent whether specific or general?
Qualifying assets but not under IAS 23: recognised in accordance with IAS 17
 qualifying assets measured at fair value, such as bio- Leases, and
logical assets (IAS 41 Agriculture)  exchange differences arising from foreign
 inventories that are manufactured, or otherwise currency borrowings to the extent that
produced, in large quantities on a repetitive basis and they are regarded as an adjustment to
that take a substantial period to get ready for sale (for interest costs
example, maturing whisky) Measured using:
  Borrowed funds: the actual costs incurred
less any income earned on the temporary
investment of such borrowings
 General pool: capitalization rate to the ex-
penditure on that asset
Note: if the asset is Specifically financed, and part of it is used
in the working capital, such should be treated as general
borrowing

Total Capitalizable BC:

Specific (Actual BC-Interest income) xxx ** Total Ave. expenditures xxx
General (Total Ave. Exp*Cap rate)** xxx Applicable to specific xxx
Total Capitalizable BC xxx Applicable to general xxx
Total Expenditures xxx
Total cost of the asset xxx Reminder: see if the completion is more than 1 year but less
than 2 years because the fraction will not be the same.
IFRS 8 Basic truth: One entity with different industries that earn revenues Reportable segment (10% or more of the Required Disclosure:
Operating and incur expenses and these results are reviewed regularly by the combined):  Sales in all circumstance
Segment chief operating decision maker. Such has a discrete financial  Combined Revenues (includes  P or L in all circumstances
information. intersegment revenue)  Asset
Note: Not all operating segments are reportable segments  Absolute amount compared to the greater  Liabilities
of the absolute amount of the combine Disclosure about a major customer: (FaToSe)
Segment reporting Profit (those reported a profit) and Loss  The fact of reliance to the major customer
Profit or Loss includes the following: (those who reported loss)  Total amount of revenue from the major customer
 External Sales  Combine Assets  Identity of the segment/segments reporting the
 Internal sale Note: at least 75% of the entity's total external revenue
 External cost revenue is included in reportable segments Not required to be disclosed: (DePoFiRi)
 Internal cost Note: Interest revenue and interest expense are  Deferred tax assets
 Allocated costs reported separately unless a majority of the  Postemployment benefit assets
segment revenue is from the interest.  Financial instruments
 Rights arising from insurance contracts
Reconciliations: Note: The following Disclosure are required only if (i)regularly
Reportable sales xxx provided to CODM or (ii) if those amounts are amounts are
Non-reportable sales xxx included in the relevant measure:
Total xxx  PAIN I DIE
Intersegment sale (xxx) o PAS 1 par 97
 Entity Sale xxx o Amortization
o Intersegment revenue
Reportable Profit xxx o Non-cash material items
Non-reportable Profit xxx o Interest (income and expense)
Intersegment Profit (xxx) o Income tax expense
Share in Assoc profit xxx o Depreciation
Unallocated items: o External Revenue
Income xxx  ALJI
Expenses (xxx) o Asset
Entity Income xxx o Liabilities
o Joint Venture (Int in P&L)
o Investment in Assoc (Int in P&L)

IAS 36 Impaired: Recoverable amount < Carrying Amount Note: Reversal of an impairment loss for goodwill
Impairment Terms to be considered: is prohibited.
of Assets  Carrying amount
 Recoverable amount (higher between)
o Fair value less cost of disposal(net selling price)
o Value in Use
Note: CGU uses Value in Use
IAS 36 applies to (among other assets):
 land
 buildings
 machinery and equipment
 investment property carried at cost
 intangible assets
 goodwill
 investments in subsidiaries, associates, and joint ventures
carried at cost
 assets carried at revalued amounts under IAS 16 and IAS 38

IAS 24 Who are the related parties? Related Party Transactions: Required disclosures (RAM)
 transfer of resources  Relationships: (PUN)
Related Party  A person or a close member of a person in a reporting entity  services, or o Name of Parent Subsidiary and/or
Transactions who: (CSM)  obligations o Ultimate controlling party and/ or
o control or joint control between related parties, REGARDLESS of whether a o Next most senior parent
o significant influence price is charged  Amounts incurred by the entity for the provision of key
o member of the key management management personnel services that are provided by
 An entity and the reporting entity are: (JACK’S PET) the separate management entity
o members of the same group  Management compensation: (SPOTS)
o One entity is an associate or joint venture of the other o short-term employee benefits
entity o post-employment benefits
o joint ventures of the same third party o other long-term benefits
o One is a joint venture and the other is an associate o termination benefits
(Both belong to the same third party o share-based payment benefits
o entity is a post-employment defined benefit plan If there was indeed a transaction, minimum disclosures are:
(employees of reporting entity or another related  Amount of transaction (AOAE)
party)  Outstanding balance, terms and conditions, whether
o entity is controlled or jointly controlled by a person secured or unsecured and nature of consideration
identified above  Allowance for doubtful account for the outstanding
o person who has a control of an entity is a key member balance
of the other entity  Expense recognized during the period in respect of
o provides key management personnel services to the doubtful accounts due from related parties
reporting entity
IAS 10 Adjusting Events Events after the reporting period Note: FS is authorized for issue when the board has  Significant non-adjusting events must be disclosed.
Events After Non-adjusting Events Between END of reporting period and DATE
reviewed and authorized it. (a) the nature of the event and
the when FS is authorized for issue (b) an estimate of its financial effect or a statement
Reporting that a reasonable estimate of the effect cannot be
Period made
 The date the FS is authorized for issue

LITTLE THINGS:
NRV = estimated selling price- estimated cost to complete the product and estimated cost of selling the product
Costs to sell = incremental costs of disposing an asset excluding finance cost and income taxes
Cost of purchase = purchase price, import duties, other non-refundable taxes, transport and handling costs
Cost of conversion = DM + DL + OH
Reminder: For the audit of inventory where Purchases and net income are also asked, note that every change in Purchases affects COGS which in effect affects Net income 
Purchases (O), Net income (U). Furthermore, Beginning Inventory and the Purchases are DIRECTLY related to the COGS while the Ending Inventory is DIRECTLY related to the Net Income.
An increase in the Purchases has a corresponding Increase in the Ending Inventory. Thus, offsets the effect in the Net Income.
Accounting estimates:
 Depreciation- PPE
 Depletion – Wasting Assets
 Amortization –Intangibles
IFRS 9 impairment model applies to: (Provision of expected credit losses/loss allowance)
 FA at amortized cost
 FA at FVOCI
 Lease receivables
 Contract Assets
 Financial Guarantee contracts