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1 ST Lecture (2nd Week)
1 ST Lecture (2nd Week)
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 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 6: Investments
Investments in Equity Securities xxx
Investments in Debt Securities xxx
Investments in Real Estate xxx
Long Term Funds – Pension xxx
TOTAL XXX