Standards for recognising, measuring, and disclosing specific transactions are addressed in other Standards and Interpretations.ScopeApplies to all general purpose financial statements based on International Financial Reporting Standards. The Philippine Financial Reporting Standards (PFRS)/Philippine Accounting Standards (PAS) are the new set of Generally Accepted Accounting Principles (GAAP) issued by the Accounting Standards Council (ASC) to govern the preparation of financial statements (Table 1). PAS 8. The IASB will also reissue standards in this series where it considers it appropriate. The 14 members or representatives must come from the following agency or group. PAS 10 Events after the Balance Sheet Date The chairman must have an experience or is currently a senior accounting practitioner. [IAS 1.38], An entity is required to present at least two of each of the following primary financial statements: [IAS 1.38A], * A third statement of financial position is required to be presented if the entity retrospectively applies an accounting policy, restates items, or reclassifies items, and those adjustments had a material effect on the information in the statement of financial position at the beginning of the comparative period. 1 Chapter 1 INTRODUCTION Recent developments brought about by the Philippine Public Financial Management Reforms and significant changes in the field of accounting prompted the harmonization of the existing accounting standards with the international accounting standards. They constitute a standardised way of describing the company’s financial performance and position so that company financial statements are understandable and comparable across international boundaries. view of Philippine Corporate Sector Accounting and Auditing Practices. PAS 1. Philippine Accounting Standards PAS Title Effective Date PAS 1 Presentation of Financial Statements [superseded by PAS 1 (Revised IAS 1 sets out the overall framework and responsibilities for the presentation of financial statements, guidelines for their structure and minimum requirements for the content of the financial statements. Changes in revaluation surplus where the revaluation method is used under, Remeasurements of a net defined benefit liability or asset recognised in accordance with, Exchange differences from translating functional currencies into presentation currency in accordance with, Gains and losses on remeasuring available-for-sale financial assets in accordance with, The effective portion of gains and losses on hedging instruments in a cash flow hedge under IAS 39 or, Gains and losses on remeasuring an investment in equity instruments where the entity has elected to present them in other comprehensive income in accordance with IFRS 9. In addition, IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors requires the correction of errors and the effect of changes in accounting policies to be recognised outside profit or loss for the current period. Generally Acceptable (Implicit) This means that the principle has gained general acceptance due to practice over time and has been proven to be most useful. Philippine Accounting Standards PAS Title Effective Date PAS 1 Presentation of Financial Statements [superseded by PAS 1 (Revised Please read, International Financial Reporting Standards, IAS 1 — Presentation of Financial Statements, IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors, IAS 10 — Events After the Reporting Period, IAS 15 — Information Reflecting the Effects of Changing Prices (Withdrawn), IAS 19 — Employee Benefits (1998) (superseded), IAS 20 — Accounting for Government Grants and Disclosure of Government Assistance, IAS 21 — The Effects of Changes in Foreign Exchange Rates, IAS 22 — Business Combinations (Superseded), IAS 26 — Accounting and Reporting by Retirement Benefit Plans, IAS 27 — Separate Financial Statements (2011), IAS 27 — Consolidated and Separate Financial Statements (2008), IAS 28 — Investments in Associates and Joint Ventures (2011), IAS 28 — Investments in Associates (2003), IAS 29 — Financial Reporting in Hyperinflationary Economies, IAS 30 — Disclosures in the Financial Statements of Banks and Similar Financial Institutions, IAS 32 — Financial Instruments: Presentation, IAS 35 — Discontinuing Operations (Superseded), IAS 37 — Provisions, Contingent Liabilities and Contingent Assets, IAS 39 — Financial Instruments: Recognition and Measurement, Disclosure initiative — Accounting policies, Classification of liabilities — Effective date, Disclosure initiative — Principles of disclosure, Model financial statements and checklists, Educational material on applying IFRSs to climate-related matters, ESMA announces enforcement priorities for 2020 financial statements, We comment on the IASB’s exposure draft on general presentation and disclosures, IASB defers effective date of IAS 1 amendments, EFRAG endorsement status report 6 November 2020, Deloitte comment letter on general presentation and disclosures, EFRAG endorsement status report 28 August 2020, Effective date of IAS 1 amendments on classification, IFRS Practice Statement 'Making Materiality Judgements', SIC-8 — First-time Application of IASs as the Primary Basis of Accounting, SIC-18 — Consistency – Alternative Methods, SIC-27 — Evaluating the Substance of Transactions in the Legal Form of a Lease, SIC-29 — Service Concession Arrangements: Disclosures, Operative for periods beginning on or after 1 January 1975, Operative for periods beginning on or after 1 January 1981, Operative for periods beginning on or after 1 July 1998, Effective for annual periods beginning on or after 1 January 2005, Effective for annual periods beginning on or after 1 January 2007, Effective for annual periods beginning on or after 1 January 2009, Effective for annual reporting periods beginning on or after 1 January 2009, Effective for annual periods beginning on or after 1 January 2010, Effective for annual periods beginning on or after 1 January 2011, Effective for annual periods beginning on or after 1 July 2012, Effective for annual periods beginning on or after 1 January 2013, Effective for annual periods beginning on or after 1 January 2016, Effective for annual periods beginning on or after 1 January 2020, Effective for annual periods beginning on or after 1 January 2022, The new effective ate of the January 2020 amendments is now 1 January 2023, financial assets (excluding amounts shown under (e), (h), and (i)), investments accounted for using the equity method, financial liabilities (excluding amounts shown under (k) and (l)), current tax liabilities and current tax assets, as defined in, deferred tax liabilities and deferred tax assets, as defined in, non-controlling interests, presented within equity. Title. ... •Principles-based accounting standard geared towards the earlier recognition of impairment losses . if it has not complied, the consequences of such non-compliance. * Clarified by Definition of Material (Amendments to IAS 1 and IAS 8), effective 1 January 2020. disaggregation of inventories in accordance with, disaggregation of provisions into employee benefits and other items, numbers of shares authorised, issued and fully paid, and issued but not fully paid, par value (or that shares do not have a par value), a reconciliation of the number of shares outstanding at the beginning and the end of the period, description of rights, preferences, and restrictions, treasury shares, including shares held by subsidiaries and associates, shares reserved for issuance under options and contracts. Thus, it has approved two Statement of Financial Accounting 01/01/ 09 1 – from the Board of Accountancy statement of profit or loss and other comprehensive income, separate statements of profit or loss (where presented). PAS 2. Presentation of financial statements. [IAS 1.14], The financial statements must "present fairly" the financial position, financial performance and cash flows of an entity. [Conceptual Framework, paragraph 4.1], IAS 1 requires management to make an assessment of an entity's ability to continue as a going concern. Construction contracts (IFRS 15 as of jan 1, 2018) PAS 12. Assets and liabilities, and income and expenses, may not be offset unless required or permitted by an IFRS. Assets can be presented current then non-current, or vice versa, and liabilities and equity can be presented current then non-current then equity, or vice versa. 1 – from the Board of Accountancy [IAS 1.76B], The line items to be included on the face of the statement of financial position are: [IAS 1.54], Additional line items, headings and subtotals may be needed to fairly present the entity's financial position. Events after the reporting period. PHILIPPINE ACCOUNTING STANDARDS 1 PRESENTATION OF FINANCIAL STATEMENTS Objective of PAS 1 The objective of IAS 1 (revised 1997) is to prescribe the basis for presentation of general purpose financial statements, to ensure comparability both with the entity's financial statements of The application of IFRSs, with additional disclosure when necessary, is presumed to result in financial statements that achieve a fair presentation. IAS 1 sets out the overall framework and responsibilities for the presentation of financial statements, guidelines for their structure and minimum requirements for the content of the financial statements. Excerpts from the Notes to Financial Statements (ADA Corporation) Corporate/Company Information: The firm was incorporated under the laws of the Republic of the Philippines and registered with the Philippine Securities and Exchange Commission (SEC) on July 22, 1966. Scope PLAY. This Commission Page 4 PFRS 15: An Overview §International Financial Reporting Standard (IFRS) 15, Revenue from contract with customers, was issued in May 2014 by the International Accounting Standards Board (IASB) §IFRS 15 was adopted by the FRSC in 2016 as PFRS 15 §PFRS 15 replaces PAS 18, Revenue, PAS 11, Construction Contracts, and related interpretations effective January 1, 2018 1550 Metro Manila, NCR, 1009 Philippines. The FRSC’s main function is to establish generally accepted accounting principles in the Philippines. The World Bank review is part of the ROSC (Reports on the Obser- vance of Standards and Codes) exercise. The long-term financing approach used in UK and elsewhere – fixed assets + current assets - short term payables = long-term debt plus equity – is also acceptable. In July 2009, the International Accounting Standards Board (IASB) published a five-year project, titled “International Financial Reporting Standards for Small and Medium-sized Entities” (IFRS for SMEs). ... •Principles-based accounting standard geared towards the earlier recognition of impairment losses . The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows. [IAS 1.55]. What is the jurisdiction's status of adoption? The FRSC was established under the Implementing Rules and Regulations of the Philippine Accountancy Act of 2004 to assist the BOA in carrying out its power and function to promulgate accounting standards in the Philippines. qualitative information about the entity's objectives, policies and processes for managing capital, including>, nature of external capital requirements, if any, quantitative data about what the entity regards as capital, whether the entity has complied with any external capital requirements and. PAS 10. Conceptual Framework [IAS 1.125] These disclosures do not involve disclosing budgets or forecasts. To Accounting for Hedging Activities ( Hedging ) Accounting Standards ( PASs ) c. Interpretations, selling,,., administrative, etc ) Hedging ( Topic 842 ) ( Leases ) estimates and errors September and. Ias 1.85 ], Settlement by the issue of equity Instruments does not impact classification IAS ]... 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