A Paper Evaluation of Financial Statement Disclosures

Presented to the Faculty of College of Business,

Accountancy and Computer Studies
University of Negros Occidental - Recoletos

In Partial Fulfilment of the Requirements for the Course

UPDFRS030: Updates in Financial Reporting Standards
leading to the Degree
Bachelor of Science in Accountancy

Anne Caroline T. Ambagan

Jades E. Apellido
Europa F. Europa
Renee Rose I. Flores
Shirley Ann O. Valencia
Krissa K. Villanueva

February 5, 2022

Page

Title Page 1
Table of Contents

Chapter 1 INTRODUCTION

Objectives

Application of Philippine Financial Reporting Standards

Chapter 2 DISCLOSURE REQUIREMENTS

PAS 1 Presentation of Financial Statements

PAS 12 Income Taxes

PAS 33 Earnings Per Share

Chapter 1
INTRODUCTION
Objectives
Every line item visible in the face of a financial statement is a compact of every
transaction, events, errors, changes that have taken place in that accounting period. An omission
of a single yet relevant event in the financial statements might materially affect the assets,
liabilities and equity of an entity that it composed, and it could lead the financial statements to be
misrepresented. Therefore, place a significant threat to the financial statements’ accuracy,
completeness, reliability, timeliness and relevance, such, could impair the sound economic
decisions of the users. With this, the more we need to dissect and evaluate disclosures of
financial statements.

IAS 1 states that the objective of general-purpose financial statements is to provide

information about the financial position, financial performance, and cash flows of an entity that
is useful to a wide range of users in making economic decisions. To meet that objective, financial
statements provide information about an entity's: (IAS 1.9) assets liabilities equity income and
expenses, including gains and losses contributions by and distributions to owners (in their
capacity as owners) cash flows. However, in order to ensure the fair presentation of financial
statements full disclosure of the facts, changes, errors, and other noteworthy events that affects
or comprises the items in the financial statement's assets, liability and equity.

To evaluate the disclosures of AllHome Corporation financial statement is to scrutinized

every line item that composed it, see and examine the if all transactions and events were
accounted accordingly, and if governing accounting standards were followed when recognizing
such events that took place, in order to meet the following objectives:

1. To ensure fair presentation of every line item in the financial statement

2. To ensure completeness of record
3. To allow transparency with regards to all the necessary transactions, events and/or facts that
took place, and explains its significant effect on the entity's financial statement during the
accounting period
4. To ensure compliance to the right accounting standards that governs the recognition of such
transactions, events and/or facts
5. To allow the public, management, users, and other interested parties to examine the records
that arrived to the creation of the financial statements.

Application of Philippine Financial Reporting Standards