NATIONAL COLLEGE OF SCIENCE & TECHNOLOGY

Dasmarinas, Cavite

ACCT 047
UPDATES ON FINANCIAL REPORTING

The Philippine Financial Reporting Standards (PFRS) require preparation and presentation of the following reports for
internal and external users:
1. Statement of FINANCIAL POSITION (SFP), (otherwise known as Balance Sheet;
2. Statement of Comprehensive Income (SCI), otherwise known as Income Statement;
3. Statement of Changes in Equity (SCE), otherwise known as Capital Statement;
4. Statement of Cash Flows (SCF); and
5. Notes to the Financial Statements.

NOTE: The above sequence s for proper presentation; the proper sequence for preparation s SC, SCE, SFP, SCF,
and NOTES to the FS.

Another requirement of the reporting standards is the reporting of related accounts in a ONE LINE presentation. The
details are to be presented as notes to the financial statements. Examples:
A. CASH & CASH EQUIVALENTS (Note 1)
B. RECEVABLES (Note 2)
C. INVENTORIES (Note 3)
D. PREPAID EXPENSES (Note 4)
E. PROPERTY, PLANT & EQUIPMENT (Note 5)
F. INVESTMENTS (Note 6)
G. CURRENT LIABILITIES (Note 7)
H. NON-CURRENT LIABILITES (Note 8)
I. SHAREHOLDERS’ EQUITY (Note 9)

Note 1: Cash * Cash Equivalents

Cash on Hand xxx
Cash in Bank- Savings Account xxx
Cash in Bank-Current Account xxx
Cash in Bank-Payroll Account xxx
Petty Cash Fund xxx
TOTAL XXX

Note 2: Recevables
Account Receivable – Trade xxx
Allowance For Doubtful Accounts (xxx)
Notes Receivable xxx
Advances to Officers & Employees xxx
Advances to Affiliates xxx
TOTAL XXX

Note 3: Inventories
Raw Materials xxx
Goods n Process xxx
Finished Goods xxx
Merchandise Inventory * xxx
TOTAL XXX
*for “buy & sell business

Note 4: Prepaid Expenses

Office Supplies on Hand xxx
Store Supplies on Hand xxx
Factory Supplies on Hand xxx
Prepaid Rent xxx
Prepaid Advertisement xxx
Prepaid Interest xxx
TOTAL XXX
Note 5: Property, Plant, & Equipment
Accumulated Book
Cost Depreciation Value
Land xxx - xxx
Building xxx xxx xxx
Leasehold Improvements xxx xxx xxx
Machinery & Equipment xxx xxx xxx
Furniture & Fixtures xxx xxx xxx
Tools xxx xxx xxx
TOTAL XXX XXX XXX

Note 6: Investments
Investments in Equity Securities xxx
Investments in Debt Securities xxx
Investments in Real Estate xxx
Long Term Funds – Pension xxx
TOTAL XXX

Note 7: Current Liabilities

Accounts Payable - Trade xxx
Notes Payable xxx
Accrued Salaries xxx
Accrued Utilities xxx
Accrued Rent xxx
SSS & EC Contributions Payable xxx
PhilHealth Contributions Payable xxx
HMDF Contributions Payable xxx
IncomeTax Payable xxx
Wtholdng Taxes Payable xxx
VAT Payable xxx
Current Portion of Long-Term Liabilities xxx
TOTAL XXX

Note 8: Long Term Liabilities

5-year Notes Payable xxx
Mortgage Payable xxx
Bonds Payable xxx
TOTAL XXX

Note 9: Shareholders’ Equity

__% Preference Shares, Par__
(__shares authorized, __shares issued) xxx
Subscribed Preference Shares xxx
Subscription Receivable – Preference (xxx)
Ordinary Shares, Par __
(__shares authorized, ___ shares issued) xxx
Subscribed Ordinary Shares xxx
Subscription Receivable-Ordinary (xxx)
Accumulated Profit xxx
Treasury Shares (xxx)
TOTAL XXX