Features PFRS For SE PDF
Features PFRS For SE PDF
Features PFRS For SE PDF
Part 1
Introduction
And
General Issues
• Much smaller
– 150 pages (including glossary)
– 230 pages (PFRS for SMEs)
– 3,000 in full PFRSs
• Organised by topic
• Simplifications from full PFRSs and PFRS
for SMEs
• Something like:
“In my opinion, the accompanying financial statements
present fairly, in all material respects, the financial
positions of the Company as at December 31, 2018
and 2017, and of its financial performance and its cash
flows for the years then ended in accordance with
Philippine Financial Reporting Standards for Small
Entities.”
Initial recognition
298 An entity shall recognize a provision only when:
a) the entity has an obligation at the reporting date as a
result of a past event;
b) it is probable (ie more likely than not) that the entity will
be required to transfer economic benefits in settlement;
and
c) the amount of the obligation can be estimated reliably.
Part 2
Statement
Of
Financial Position
Cost of inventories
157 An entity shall include in the cost of inventories all
costs of purchase, costs of conversion and other costs
incurred in bringing the inventories to their present
location and condition.
• Cost Formulas
- specific identification for:
not ordinarily interchangeable and;
goods or services produced and segregated for specific
projects (167)
– FIFO or weighted average for others (168)
– LIFO is not permitted (168)
• Impairment (lower of cost or market) (156)
• Section 21 - Impairment of Assets covers impairment
requirements for inventories.
Yumul Dator and Associates
Section 27 Biological Assets 35
Subsequent
Measurement
Measurement
Current Market
Change/ P&L
Price
Biological Assets
Cost Less Accum
Cost Model Dep and Accum
Impairment
Current Market
Agricultural produce Sec 8 Inventory
Price
Measurement at recognition
Depreciation method
227 An entity shall select a depreciation method that
reflects the pattern in which it expects to consume the
asset’s future economic benefits. The possible
depreciation methods include the
• straight-line method,
• the diminishing balance method and
• a method based on usage such as the units of
production method.
cost.
• Separate acquisition
The cost of a separately acquired intangible asset
248
comprises:
a) its purchase price, including import duties and non-
refundable purchase taxes, after deducting trade
discounts and rebates, and
b) any directly attributable cost of preparing the asset for
its intended use.
Yumul Dator and Associates
Section 13 Intangibles other than goodwill 46
Accounting policy
An entity should make an accounting policy choice to
402
316 An entity shall recognize the issue of shares or other equity instruments
as equity when it issues those instruments and when another party is
obliged to provide cash or other resources to the entity in exchange for the
instruments:
a) Subscription receivable – deduction to equity
b) if the entity receives the cash or other resources before the equity
instruments are issued, and the entity cannot be required to repay the cash
or other resources received, the entity shall recognize the corresponding
increase in equity to the extent of consideration received.
c) to the extent that the equity instruments have been subscribed for but not
issued, and the entity has not yet received the cash or other resources, the
entity shall not recognize an increase in equity.
Part 3
Statement
Of
Profit or Loss
15 Leases
18 Revenue
19 Borrowing Costs
22 Employee Benefits
Post-employment benefit
An entity should account for the post-employment benefit
plans using the accrual approach in accordance with the
minimum retirement benefit required under Republic Act
(RA) No. 7641, otherwise known as The Philippine
Retirement Pay Law, or company policy if superior than
that provided by RA 7641.
Accrual approach is applied by calculating the expected
liability as of reporting date using the current salary of the
entitled employees and the employees’ years of service,
without consideration of future changes in salary rates
and service periods.
Yumul Dator and Associates
The PFRS for Small Entities (SE) 61
Part 4
Special Topics
Initial measurement
131 When a financial asset or financial liability is
recognized initially, an entity shall measure it at its fair
value, which is normally the transaction price.
Subsequent measurement
132 At the end of each reporting period, an entity shall
measure all financial instruments within the scope this
section at fair value and recognize changes in fair value in
profit or loss,
except as follows: equity instruments that are not publicly
traded and whose fair value cannot otherwise be
measured reliably, and contracts linked to such
instruments that, if exercised, will result in delivery of such
instruments, shall be measured at cost less impairment.
Yumul Dator and Associates
Section 26 Related party disclosures 68
Disclosures
Disclosure of key management personnel
compensation
An entity shall disclose key management personnel
452
compensation in total.
453 Ifan entity has related party transactions, it shall disclose the nature of the
related party relationship as well as information about the transactions, outstanding
balances and commitments necessary for an understanding of the potential effect of
the relationship on the financial statements. Those disclosure requirements are in
addition to the requirements in paragraph 452 to disclose key management
personnel compensation. At a minimum, disclosures shall include:
a)the amount of the transactions;
b)the amount of outstanding balances;
i. their terms and conditions, including whether they are secured, and the
nature of the consideration to be provided in settlement; and
ii. details of any guarantees given or received;
c) provisions for uncollectible receivables related to the amount of outstanding
balances; and
d) the expense recognized during the period in respect of bad or doubtful debts due
Yumul Dator and Associates
from related parties.
Section 29 Transition to the Framework 75
Reconciliations
484To comply with paragraph 483, an entity’s first financial statements prepared
using this Framework shall include:
a) a description of the nature of each change in accounting policy;
b) reconciliations of its equity determined in accordance with its previous financial
reporting framework to its equity determined in accordance with this Framework for
both of the following dates:
(i) the date of transition to the Framework;
(ii) the end of the latest period presented in the entity’s most recent annual financial
statements determined in accordance with its previous financial reporting
framework; and
c) a reconciliation of the profit or loss determined in accordance with its previous
financial reporting framework for the latest period in the entity’s most recent annual
financial statements to its profit or loss determined in accordance with this
Framework for the same period.Yumul Dator and Associates
No sections covering these topics 77
• Segment reporting
• Earnings per share
• Interim reporting
• Assets held for sale