ANDREA FLORENCE G.

VIDAL
January 26, 2022

PFRS FOR SMES

It's the first day of our virtual on-the-job training at Christ the King College. As part of

our online internship training, we will participate in a webinar titled "PFRS for Small Entities,"
which will be hosted by PICPA CDO CHAPTER and featuring renowned author Jekkel Salosagcol

of Auditing. It'll be a half-day webinar, and the topic is engaging because it relates to our course
and can be applied in the future.

So, the discussion is all about PFRS for SE and SMEs, their distinctions, and how to
transfer your SMEs to SE standards. The Philippine Financial Reporting Standards for Small

Entities was created in response to small businesses' complaints that the PFRS for Small and
Medium-sized Entities (PFRS for SMEs) is too complicated to implement. The PFRS for SEs

reduces accounting treatment options, eliminates topics that are not generally relevant to small
entities, simplifies recognition and measurement methods, and reduces disclosure requirements,

allowing small businesses to comply with financial reporting requirements without undue cost or
burden.

This webinar is extremely significant for those pursuing a bachelor's degree in

accounting since, in the future, if you are already an accountant, these standards will assist in

bringing uniformity to the whole accounting field. It is a great benefit of accounting standards.
Accounting standards are a set of rules and regulations that govern how accounting

transactions are handled. It implies that all businesses record transactions in the same way.
These guidelines are also critical for business owners to understand. Since they will be recording

and accounting their transactions using these standards. This will maintain consistency in
recording, identifying, and measuring financial transactions, which, if followed correctly, would

ensure the company's financial reporting process is stable and transparent.