LIABILITIES

Measurement

PROVISIONS AND CONTINGENCIES

Full PFRS PFRS for SMEs PFRS for SEs

Best Best estimate required to settle the Best estimate required to settle the
estimate obligation at the reporting date obligation at the reporting date

LEASE ( LESSEE ACCOUNTING)

Recognition

Full PFRS PFRS for SMEs PFRS for SEs

The lessee is required to account for  Operating Lease Model Operating Lease
the lease as a FINANCE LEASE under Model (no finance
 Finance Lease Model
the new accounting standard lease recognize)
(Classify based on transfers of risk
and rewards incidental to
ownership)

LEASE  ( MEASUREMENT)

Full PFRS PFRS for SMEs PFRS for SEs

Present Value of Lease Fair Value or If LOWER, The Lessees and lessors shall recognize lease
payment to be made Present value of the expense or income in the period when they
over lease term minimum lease payment are incurred or earned, respectively.
 EMPLOYEE BENEFITS (POST EMPLOYMENT BENEFIT)
Defined Contribution Plan
MEASUREMENT

Full PFRS PFRS for SMEs PFRS for SEs

Similar to IFRS for The contribution payable for Accrual Method

SMEs; however, if the a period by the employer to (Approach)
contributions to a DC the fund is recognized as a
plan do not fall due  Liability for a Defined
wholly within 12 Contribution plan  No consideration
months after the end after deducting any for changes in
of the period, the amount already paid. future salaries
future contributions  As an expense,  No recognition of
are discounted. unless other actuarial gains
provision of the PFRS and losses
for SMEs requires the
contribution be
recognized as part of
cost of an asset

DEFINED BENEFIT PLAN (LIABILITY)

MEASUREMENT

The DB liability is the net total The DB liability is the net NOT APPLICABLE, only
of: total of: defined contribution
• The present value of • The present value of plan is followed by the
the DB obligation at the end the DB obligation at the end small entities
of the reporting period; • of the reporting period;
Plus any actuarial gains (less • Less the fair value at
any actuarial losses) not the reporting date of plan
recognised due to the assets (if any) out of which
corridor method; the obligations are to be
• Less  any settled directly
unrecognised past service
costs;
• Less the fair value at
the reporting date of plan
assets (if any) out of which
the obligations are to be
settled directly.

DEFINED BENEFIT PLAN (LIABILITY)

(Actuarial Gain or Loss)

Recognized through other  Recognized NOT APPLICABLE

comprehensive income immediately in Profit
or Loss
 Recognized
immediately through
other comprehensive
income

ACTUARIAL VALUATION METHOD

 Used in measuring the
defined benefit plan
CURRENT TAXES MEASUREMENT
Full PFRS
Similar to PFRS for SMEs except
IAS 12 is silent on the
discounting current tax
Similar to PFRS for SMEs but
there are additional exceptions
for initial recognition of asset
and liability;
 The initial recognition of
an asset or liability other
than in a business
combination which, at the
time of the transaction,
does not affect
accounting profit or
taxable profit.
Measured at the tax rates that are
expected to apply to the period
when the asset is realized or the
liability is settled,
Required, if information that
is needed to make such
calculation is available.
INCOME TAX
PFRS for SMEs PFRS for SEs
The amount expected to be paid to  Tax Payable
(recovered from) the taxation Method
authorities, using the tax rates (and
tax laws) that have been enacted or
substantively enacted by the
reporting date. Current taxes are not
discounted
DEFERRED TAXES
RECOGNITION
Deferred tax is provided for all Deferred Income Taxes
temporary differences and the Method
carryforward of unused tax losses,
with a few exceptions:
 The initial recognition of
goodwill
 And the outside basis
differences (that is, temporary
difference arising from
investments in subsidiaries,
branches, joint ventures and
associates) from foreign
investments that are
essentially permanent in
duration.
DEFERRED TAXES
MEASUREMENT
Measured using the tax rates (and tax Measure using the Tax
laws) that apply or have been Rates and laws that
(substantively) enacted by the have been enacted or
reporting date. substantively enacted
at the reporting date.