Financial Statements

and How to Prepare them

A. Statement of Financial Condition (Balance Sheet)
B. Statement of Operations (Income Statement)
C. Statement of Changes in Equity
D. Cash Flows Statement
E. Notes to Financial Statements
Financial Statement Presentation
• Fair presentation: ang ginatuohan nga muresulta kung sundon ang FRAMEWORK
alang sa mga Kooperatiba.
• Kailangan nga magpakita ang mga Kooperatiba ug kompleto nga set of financial
statements at least annually (tinuig).
A. Statement of Financial Condition (Balance Sheet)
B. Statement of Operations (Income Statement)
C. Statement of Changes in Equity
D. Cash Flows Statement

• At least one-year comparative financial statements and note data

• Presentation and classification of items
• Kinahanglan nga consistent (makanunayon) gikan sa usa ka tuig hangtod sa sunod
Statement of Financial Condition
(Balance Sheet)
Statement of
Financial Condition
(Balance Sheet)

ginapakita niini ang mga assets,

liabilities ug equity nga naa sa usa ka
Kooperatiba as of a specific date o
katapusan sa period (o tuig) sa
pagreport sa financial statements.
Statement of
Financial Condition
(Balance Sheet)

• Kasagarang kinahanglan ang

pagkalahi sa current ug non-current
alang sa pagpresentar.
• Gikinahanglan ang mga minimum nga
kinahanglanon sa presentasyon sa
statement of financial condition.
[Minimum presentation requirements
required in the statement of financial
condition.]
NAME OF COOPERATIVE

How to Prepare a
Statement of
Financial Condition
(Balance Sheet)
 NAME OF COOPERATIVE

1. Determine the
Reporting Date and Period
• Ang balance sheet ginabuhat aron ihulagway ang
kinatibuk-ang mga assets, liablilities, ug equity sa usa ka
Kooperatiba on a specific date, nga kasagarang
gnatawag nga reporting date. Kasagaran ang reporting
date o ang petsa sa pagreport mao ang katapusang
adlaw sa reporting period.
• Kasagarang ginagamit sa mga Kompanya nga
nagareport nga tinuig, ang December 31st ingon ilang
petsa sa pagreport, (pero makapili gihapon sila bisan unsang
petsa.)
• Normal lang na magkinahanglan ug pipila ka mga
semana after sa paghuman sa reporting period aron
makapangandam ug balance sheet.
 NAME OF COOPERATIVE

2. Identify Your Assets

• Kasagaran, sa usa ka balance sheet, ginalista ang mga
assets sa duha nga paagi:
As individual line items and then as total assets.
• Ang pagbahinbahin sa mga assets sa lainlaing mga
line items, magpadali sa pagsabut sa mga analista
kung unsa gyud ang imong mga assets ug asa kini
gikan; ang pagtotal sa ila kay kinahanglan for final
analysis.
• Current and non-current assets should both be
subtotaled, and then totaled together.
Total Current Assets TOTAL ASSETS
Total Non-Current Assets
 NAME OF COOPERATIVE

2. Identify Your Assets

MINIMUM INFORMATION e. Property, Plant and
Equipment
a. Cash and Cash Equivalents
f. Investment Property
b. Loans and Receivables
g. Intangible Assets
c. Financial Assets (excluding
amounts shown under (a), h. Biological Assets
(b), ( i) (j) and (k)
i. Investments in Associates
d. Inventories
j. Investments in Joint
Ventures
k. Investments in Subsidiaries
 NAME OF COOPERATIVE

3. Identify Your Liabilities

MINIMUM INFORMATION
l. Trade and Other p. Financial Liabilities
Payables (excluding amounts
shown under (l), ( m), (n),
m. Interest on Share Capital
(o) and (s))
Payable
q. Liabilities and Assets for
n. Patronage Refund
Current Tax (if applicable)
Payable
r. Deferred Tax Liabilities
o. Due to Unions and
and Deferred Tax Assets
Federations (CETF)
(if applicable)
s. Provisions
 NAME OF COOPERATIVE

4. Calculate Equity
MINIMUM INFORMATION
t. Members’ Equity
u. Donation and Grants
v. Statutory Funds (Reserve Fund, Education and Training
Fund, Optional Fund, Community Development Fund)
w. Revaluation Surplus
 NAME OF COOPERATIVE

5. Add Total Liabilities to

Total Equity and Compare
to Total Assets
• Aron maseguro nga balanse ang balance sheet,
kinahangalan nga icompare ang TOTAL ASSETS sa
TOTAL LIABILITIES PLUS EQUITY. Aron mahimo kini,
kinahanglan nimo idugang ang liabilities ug ang
equity.

Assets = Liabilities + Equity

DOES A BALANCE SHEET ALWAYS BALANCE?
A balance sheet should always balance.
The name itself comes from the fact that a
company’s assets will equal its liabilities plus
any equity that has been issued.
Assets = Liabilities + Equity!
Kung tan-aw nimo nga ang imong balance
sheet dili gyud mabalanse, mahimo kini
hinungdan sa usa sa mga mosunod:
• Incomplete or misplaced data
• Incorrectly entered transactions
• Errors in currency exchange rates
• Errors in inventory
• Miscalculated equity calculations
• Miscalculated loan amortization or
depreciation
NAME OF COOPERATIVE

1. Determine the reporting date & period

2. Identify your assets

5. Compare total assets

3. Identify your liabilities

4. Calculate equity

5. To total liabilities plus total equity

 Cooperative Development Authority. (2016). MC 2016-06 | Revised Standard Chart of Accounts for
Cooperatives. https://cda.gov.ph/memorandum-circulars/mc-2016-06-revised-standard-chart-of-accounts-for-
cooperatives/?fbclid=IwAR0M94KTEfWutV5ScRQ5kHx1TYAytzd2x61j6fLNZRjOGYJQUnLCNADRovk

Cooperative Development Authority. (2021). PHILIPPINE FINANCIAL REPORTING FRAMEWORK FOR

COOPERATIVES. https://cda.gov.ph/wp-content/uploads/2021/01/natl-forum-phili-fin-reporting-framework-for-
coops.pdf

Stobierski, T. (2019). How to prepare a balance sheet: 5 steps for beginners. Harvard Business School
Online. https://online.hbs.edu/blog/post/how-to-prepare-a-balance-sheet

References SAMPLE BALANCE SHEET:

K-COOP. (2020). Kabuhayan sa Ganap na Kasarinlan Credit & Savings Cooperative AUDITED FINANCIAL STATEMENTS.
KCOOP
WEBSITE. https://www.kcoop.org.ph/support/enews/enewsfile/2020%20Audited%20Financial%20Statements.pdf

ILLUSTRATIONS:
Drogatnev. (n.d.). Accountant with report vector image [Vector].
VectorStock. https://cdn2.vectorstock.com/i/1000x1000/94/76/accountant-with-report-vector-26319476.jpg

Kanin_a. (n.d.). Financial statements concept vector. Income statement, balance sheet, cash flow statement flat
illustration. Finance and accounting concept [Vector]. Shutterstock. https://image.shutterstock.com/z/stock-vector-
financial-statements-concept-vector-income-statement-balance-sheet-cash-flow-statement-flat-1705528627.jpg