Chapter 26: SMEs – Assets

A. INVENTORIES

Inventories
Item Full PFRS PFRS for SMEs
Loss on Inventory
Component of COGS Impairment Loss
writedown

B. Associate – 20% to 50%

INVESTMENT IN ASSOCIATE- shall be presented as a separate line item under NCA.

1. Cost – initially measured at transaction price including transaction cost.

- not permitted if associate has a published price quotation.
- tested for impairment whenever there is an indication of impairment

2. Equity- Same equity method w/ Full PFRS

3. FV Model- Initially measured at the transaction price, excluding transaction cost.

- each reporting date, measured at FV with changes in FV recognized in PL.

-best evidence of FV is the quoted price in an active market.

-If no active market, FV is estimated using a valuation technique.

-If impracticable to measure FV reliably w/o undue cost or effort, the investment is accounted for under
the cost model.

-Not tested for impairment

c. INVESTMENT PROPERTY

INVESTMENT PROPERTY
Item Full PFRS PFRS for SMEs

INITIALLY measured
? COST
AT

Cost of Purchased investment property= PURCHASE

PRICE AND ANY DIRECTLY ATTRIBUTABLE
EXPENDITURE SUCH AS LEGAL AND BROKERAGE
FEES, PROPERTY TRANSFER TAXES AND OTHER
TRANSACTION COST.
Shall be measured at fv at the end of reporting period
Changes in FV shall be recognized in PL
Allows accounting
Policy of either FV FV Model, otherwise accounted for separately using
Measured AT
Value Model or the cost-depreciation-impairment- model.
Cost Model
If entity follows the cost model, the FV of the property
must be disclosed.