FINANCIAL STATEMENTS BASED ON

PHILIPPINES ACCOUNTING STANDARDS (PAS)

 STATEMENT OF FINANCIAL POSITION

 INCOME STATEMENT AND ITS FORMS

 STATEMENT OF CASH FLOW

DIFFERENCE BETWEEN
ACCOUNTING AND
FINANCIAL MANAGEMENT
 ACCOUNTING
Accounting is a systematic and comprehensive process of
identifying, measuring, processing, classifying and
recording of financial transactions pertaining to an
economic entity.
 FINANCIAL MANAGEMENT
Financial Management means planning, organizing,
directing and controlling the financial activities such as
procurement and utilization of funds of the enterprise. It
means applying general management principles to financial
resources of the enterprise.
PHILIPPINE FINANCIAL REPORTING STANDARDS

The Philippine Financial Reporting Standards

(PFRS)/Philippine Accounting Standards (PAS) are the
new set of Generally Accepted Accounting Principles
(GAAP) it is issued by the Accounting Standards
Council (ASC) to govern the preparation of financial
statements.
 PHILIPPINE FINANCIAL REPORTING STANDARDS

These standards are patterned after the revised International

Financial Reporting Standards (IFRS) and International Accounting
Standards (IAS) issued by the International Accounting Standards
Board (IASB).
 OBJECTIVES OF
PHILIPPINES ACCOUNTING STANDARD

It prescribes the basis for presentation of general purpose

financial statements to improve comparability both with
the entity’s financial statements of previous periods (intra-
comparability) and with the financial statement of other
entities (inter-comparability)
 ORIGIN OF
PHILIPPINES ACCOUNTING STANDARD/IFRS

http://www.sec.gov.ph/wp-
content/uploads/2015/10/pf
rs-adopted-by-sec-as-of-
12312011.pdf
 TYPES OF FINANCIAL STATEMENT

Statement of
Financial Position
often called the balance sheet. •Assets and their Classification
•Liabilities and their Classification
In other words, it lists the •Shareholders Equity and It’s Components
resources, obligations, and
ownership details of a
company on a specific day.
ASSETS AND IT’S
CLASSIFICATION
S
ASSETS AND IT’S
CLASSIFICATION
S
https://efinancemanagement.com/financial-accountin
g/meaning-and-different-types-of-assets
 TYPES OF FINANCIAL STATEMENT

Statement of
Financial Position
often called the balance sheet. •Assets and their Classification
•Liabilities and their Classification
In other words, it lists the •Shareholders Equity and It’s Components
resources, obligations, and
ownership details of a
company on a specific day.
 LIABILITIES AND IT’S CLASSIFICATIONS
Current liabilities (short-term liabilities) are liabilities that are
due and payable within one year.
Example:
 Income taxes payable
 Bills payable
 Bank account overdrafts
 Accrued expenses
 Short-term loans
LIABILITIES AND IT’S CLASSIFICATIONS
 Non-current liabilities (long-term liabilities)
are liabilities that are due after a year or more.
List of non-current liabilities:
 Bonds payable
 Long-term notes payable
 Deferred tax liabilities
 Mortgage payable
 Capital leases
 LIABILITIES AND IT’S CLASSIFICATIONS

 Contingent liabilities are liabilities that

may or may not arise, depending on a
certain event.

Examples of contingent liabilities:

 Lawsuits https://corporatefinanceinstitute.
com/resources/knowledge/accou
 Product warranties nting/types-of-liabilities/
 TYPES OF FINANCIAL STATEMENT

Statement of
Financial Position
often called the balance sheet. •Assets and their Classification
•Liabilities and their Classification
In other words, it lists the •Shareholders Equity and It’s Components
resources, obligations, and
ownership details of a
company on a specific day.
 SHAREHOLDERS EQUITY AND IT’S COMPONENTS

 Shareholders' equity represents the COMPONENTS:

interest of a company's shareholders in  Common stock
 Preferred stock
the net assets of the company.
 Additional paid-up capital-common stock
 Additional paid-up capital- preferred stock
This fundamental relationship is expressed in  Retained earnings
 Foreign currency translation reserve
the form of accounting equation.
 Available-for-sale securities reserve
 Cash flow hedge reserve
 Assets = Liabilities + Shareholders' equity  Revaluation reserve
 Shareholders equity = Assets - Liabilities  Treasury shares
 Non-controlling interest (also called minority
interest)
 TYPES OF FINANCIAL STATEMENT

Statement of
Financial Position
often called the balance sheet. •Assets and their Classification
•Liabilities and their Classification
In other words, it lists the •Shareholders Equity and It’s Components
resources, obligations, and
ownership details of a
company on a specific day.