INTIAL SUBSEQUENT NECESSARY

ACCOUNT TITLE BRIEF DESCRIPTION RECOGNITION CRITERIA CLASSIFICATION PRESENTATION

MEASUREMENT MEASUREMENT DISCLOSURES
Cash on Hand This includes It is probable that future Face Value Face Value Current Asset Cash and Cash The amount and details
undeposited cash economic benefits will Equivalents should be disclosed in
collections and flow to the entity and the the notes to financial
other cash items asset has a cost or value statements.
awaiting deposits that can be measured
such s customer’s reliably.
checks, cashier or
manager’s check,
traveler’s check,
bank drafts and
money orders
The amount and details
Cash In Bank This includes It is probable that future Face Value Lower of face value Current Asset Cash and Cash should be disclosed in
demand deposit or economic benefits will or estimated Equivalents the notes to financial
checking account flow to the entity and the realizable value statements.
and saving deposit asset has a cost or value
which are that can be measured
unrestricted s to reliably.
withdrawal
The amount and details
Petty Cash Fund It is money set aside It is probable that future Face Value Lower of face value Current Asset Cash and Cash should be disclosed in
to pay small economic benefits will or estimated Equivalents the notes to financial
expenses which flow to the entity and the realizable value statements.
cannot be paid asset has a cost or value
conveniently by that can be measured
means of check reliably.
Three month BSP It is probable that future Face Value Lower of face value Current Asset Cash and Cash The amount and details
treasury bill economic benefits will or estimated Equivalents should be disclosed in
flow to the entity and the realizable value the notes to financial
asset has a cost or value statements.
that can be measured
reliably.
Three months It is bank deposit It is probable that future Face Value Lower of face value Current Asset Cash and Cash The amount and details
time deposit that can be economic benefits will or estimated Equivalents should be disclosed in
withdrawn only flow to the entity and the realizable value the notes to financial
after 3 months. asset has a cost or value statements.
that can be measured
reliably.

It must be acquired three

months or less before
maturity

Three month It is measured at It is probable that future Face Value Lower of face value Current Asset Cash and Cash
money market their collectible economic benefits will or estimated Equivalents The amount and details
instrument amounts flow to the entity and the realizable value should be disclosed in
asset has a cost or value the notes to financial
that can be measured statements.
reliably.

It must be acquired three

months or less before
maturity
Accounts Accounts Receivable It is probable that future Face Value Net Realizable Value Current Asset Trade and Other The amount and details
Receivable are open accounts economic benefits will Receivables should be disclosed in
arising from the sale flow to the entity and the the notes to financial
of goods and asset has a cost or value statements.
services in the that can be measured
ordinary course of reliably.
the business and
not supported by
promissory notes
Accrued Interest The accumulated It is probable that future Face Value Face Value Current Asset Trade and Other The amount and details
Receivable coupon interest economic benefits will Receivables should be disclosed in
earned but not yet flow to the entity and the the notes to financial
paid to the seller of asset has a cost or value statements.
bond by the buyer. that can be measured
reliably.

Advances to It is probable that future Face Value face value for short Current Asset Trade and Other The amount and details
Officers/ economic benefits will term and long term Receivables should be disclosed in
Advances to If collectible in one flow to the entity and the interest bearing the notes to financial
Suppliers/Advan year, it should be asset has a cost or value notes statements.
ces to Directors/ classified as current that can be measured
Advances to assets. Otherwise, reliably. Present value for
Employees such classified s long term non-
non-current ssets interest bearing
notes.

Allowance for It is contra account It is probable that future

Uncollectible established to economic benefits will Face Value The amount and details
accounts record subtraction flow to the entity and the Measured at should be disclosed in
from accounts asset has a cost or value amortized cost using Current Asset Trade and Other the notes to financial
receivable to allow that can be measured the effective Receivables statements.
for those accounts reliably. interest method.
that will not be paid
Notes face value for Lower of Cost and Current Asset Inventories A. Information
Receivable--- Notes Receivable It is probable that future short term and Net Realizable about the extent
Currently are claims economic benefits will long term interest Value and nature of the
Collectible supported by formal flow to the entity and the bearing notes financial
promises to pay asset has a cost or value instruments;
usually in the form that can be measured Present value for including
of notes. reliably. long term non- significant terms
interest bearing and conditions
notes. that may affect
the amount,
timing and
certainty of
future cash
flows;
Loan Receivable- Loan Receivable is a An entity shall recognize Fair Value Lower of Cost and Current Asset Inventories
-- Currently financial asset a financial asset when, Net Realizable Value
Collectible arising from a loan and only when, the entity
granted by a bank of becomes a party to
other financial contractual provisions of B. An accounting
institution to a the instrument. policies and
borrower or a client methods
adopted,
including the
criteria for
recognition and
the basis of
measurement
applied
Raw Materials Raw materials are It is probable that future Cost
Inventory goods that are to be economic benefits will
used in the flow to the entity and the
production process. asset has a cost or value
that can be measured
reliably.
Goods in Process Goods in process or It is probable that future Cost
Inventory work in process are economic benefits will
partially completed flow to the entity and the
products which asset has a cost or value
require further that can be measured
process or work reliably.
before they can be
sold.
Finish Goods Finished goods have It is probable that future Cost
Inventory been assigned their economic benefits will
full share of flow to the entity and the
manufacturing asset has a cost or value
costs. that can be measured
reliably.
Allowance for It is probable that future Cost
Inventory Write economic benefits will
down flow to the entity and the
asset has a cost or value
that can be measured
reliably.
An entity shall Current Asset Separate Line Item a.the accounting policies
subsequently next to Cash and used in measuring the
measure a financial Cash Equivalents inventories including the
asset at fair value cost formula used
depending on the
entity’s business b.the total carrying
model for managing amount of inventories
financial assets. The and the carrying
business model for
managing assets amount in classifications
may be: appropriate to the entity
a. To hold c.the carrying amount of
investments in inventories carried at fair
order to realize fair value less cost to sell
value changes.
b. To hold d.the amount of
investments in inventories recognized as
order to collect an expense during the
contractual cash period
flows
e.the amount of any
write down of
inventories recognized as
an expense in the period
f.the amount of any
reversal that is
recognized as a reduction
in the amount of
inventories recognized as
expense in the period
g.the circumstances or
events that led to the
reversal of a write down
of inventories
Financial Assets These are financial It is probable that future
at Fair Value assets held for economic benefits will
through Profit or trading or popularly flow to the entity and the
Loss known as “trading asset has a cost or value
securities.” that can be measured
Trading securities reliably.
are debt and equity
securities that are a. It is acquired
purchased with the principally for the
intent of selling purpose of selling or
them in the “near repurchasing it in the
term” or very soon. near term.
b.On initial recognition, it
is part of a portfolio of
identified financial assets
that are managed
together and for which
there is evidence of a
recent actual pattern of
short-term profit taking.
c. It is a derivative, except
for a derivative that is a
financial guarantee
contract or a designated
and an effective hedging
instrument.
Non Current It is probable that future
Asset held for economic benefits will
Sale flow to the entity and the
asset has a cost or value
that can be measured
Fair Value Lower of Carrying Current Asset Separate Line Item 1. Information about
Amount or Fair next to Inventories the significance of
Value less Cost of financial instruments
Disposal to an entity,
2. The nature and
extent of risks arising
from those financial
instruments, both in
qualitative and
quantitative terms.
3. Specific disclosures
are required in
relation to
transferred financial
assets and a number
of other matters.
Carrying Amount It shall be measured CURRENT ASSET Separate Line Item A. description of the
at the amount in the face of
expected to be financial position non-current asset or
recovered from the disposal group
taxation authorities B. description of facts
reliably. using the tax rate and circumstances of
that has been
enacted by the end the sale (disposal) and
of the reporting the expected timing
period C. impairment losses
and reversals, if any,
and where in the
statement of
comprehensive
income they are
recognised
4. if applicable, the
reportable segment in
which the non-current
asset (or disposal
group) is presented in
accordance with IFRS
8 Operating Segments
 BRIEF
ACCOUNT TITLE DESCRIPTION RECOGNITION CRITERIA
Biological Biological It is probable that future
Assets assets economic benefits will flow
are”living to the entity and the asset
animals and has a cost or value that can
living plants.” be measured reliably.
the entity controls the asset
as a result of past events;
it is probable that future
economic benefits associated
with the asset will flow to the
entity; and
the fair value or cost of the
asset can be measured
reliably.
INTIAL SUBSEQUENT
CLASSIFICATION PRESENTATION NECESSARY DISCLOSURES
MEASUREMENT MEASUREMENT
fair value less cost at fair value less Noncurrent Asset Separate line item a. An entity shall disclose the
to sell cost to sell aggregate gain or loss arising
during the current period on
If the fair value initial recognition of biological
cannot be assets and agricultural
measured reliably, produce and from the change
biological asset in fair value less estimated
shall be measured point-of-sale costs of
at its cost less any biological assets
accumulated
depreciation and b. An entity shall provide a
any accumulated description of each group of
impairment losses biological assets.

It is probable that future

economic benefits will flow Measured at its fair
to the entity and the asset value less cost to
has a cost or value that can sell at the point of A. Carrying amount of
be measured reliably. harvest Noncurrent Asset Separate Line item biological assets
Agricultural Agricultural The fair value
produce produce is the measurement of B. Description of an
harvested agricultural entity's biological
product of an produce stops at assets, by broad group
entity’s the point of
biological harvest. After that C. Change in fair value
assets. date, PAS 2 shall less costs to sell
apply. This means during the period
that the inventory
shall be measured
 at the lower of cost
or net realizable
value

Financial Asset Investment in It is probable that future Fair Value plus At fair value Non-Current Asset Separate Line Item 1. Information about the
at Fair Value equity economic benefits will flow directly depending on the significance of financial
through Other instrument to the entity and the asset attributable entity’s business instruments to an
Comprehensive that is not held has a cost or value that can transaction costs model for entity,
Income for trading. be measured reliably. managing financial
assets. The 2. The nature and extent
Financial asset shall be business model for of risks arising from
recognized when the entity managing assets those financial
becomes a party to the may be: instruments, both in
contractual provision of the a. To hold qualitative and
instrument. investments in quantitative terms.
order to realize fair
value changes. 3. Specific disclosures are
b. To hold required in relation to
investments in transferred financial
order to collect assets and a number of
contractual cash other matters.
flows
Financial Asset The difference It is probable that future Fair Value plus At amortized cost Non-Current Asset Separate Line Item Requires disclosure of
at Amortized between the economic benefits will flow transaction costs using the effective information about the
Cost new carrying to the entity and the asset that are directly interest method. significance of financial
amount of the has a cost or value that can attributable to the instruments to an entity, and
financial asset be measured reliably. acquisition the nature and extent of risks
at amortized arising from those financial
cost and the a. The entity’s business instruments, both in
face value of model is to hold the financial qualitative and quantitative
the financial asset in order to collect terms. Specific disclosures are
asset shall be contractual cash flows on required in relation to
amortized specified dates. transferred financial assets
through profit b. The contractual cash flows and a number of other
or loss over the are solely payments of matters.
remaining life principal and interest on the
of the financial principal amount
asset using the outstanding.
effective
interest
method.
Investment in An It is probable that future Cost Equity method Non-Current Asset Separate Line Item a. The fair value if
Associate intercorporate economic benefits will flow investments in associates
share to the entity and the asset for which there are
investment is has a cost or value that can published price
the purchase of be measured reliably. quotations;
the equity
securities of Holds significant influence b. Summarized financial
one entity by directly or indirectly through information of associates,
another entity. subsidiaries, which may be including the aggregated
evidenced by: amount of assets,
* Holds 20% or more (20% to liabilities, revenues, and
49%) voting power profit or loss;
* Representation in the
Board of Directors c. the reasons why the
* Participation in policy presumption that an
 making process investor does not have a
* Material transactions
between the investor and the
investee

Investment in It is probable that future Consolidation Consolidation Non-Current Asset Separate Line Item The nature of the relationship
Subsidiary economic benefits will flow method method between the parent and a
to the entity and the asset subsidiary even without
has a cost or value that can related party transactions
be measured reliably.

Investor holds 50% or more

voting power or control over
the investee
Investment in Investment in It is probable that future Cost At cost less any Noncurrent Asset Separate Line Item 1. The fact that these equity
Unquoted unquoted economic benefits will flow impairment loss securities are measured at
Equity equity to the entity and the asset cost because their fair
Securities instruments has a cost or value that can value cannot be reliably
are measured be measured reliably. measured
at cost if the 2. Description of the
fair value It is acquired for the purpose financial instruments,
cannot be of accruing income through their carrying mount, an
measured dividends and increase in explanation of why fair
reliably. market value, or controlling value cannot be reliably
another entity. measured, and if possible,
the range of estimates
within which fair value is
highly likely to lie

Investment Investment It is probable that the future Cost. Use either the Cost Non-current Asset Separate line item * Whether the entity uses the
Property property is economic benefits that are model or cost model or fair value model
defined as associated with the Transactions costs Revaluation model of measuring investment
property (land investment property will flow shall be included in property.
or building or to the entity. the initial * The amount of rental
part of a measurement income for the period along
building or the cost of the investment with the related expense.
both) held by property can be measured * Restrictions on the
an owner or by reliably. investment property either
the lessee through rentals or sale
under a finance proceeds.
lease to earn * Contractual obligations to
rentals or for purchase or construct
capital investment property
appreciation or
both.
Intangible Asset An identifiable It is probable that future Cost Using either the Non Current Asset Separate Line item a. Whether useful lives are
nonmonetary economic benefits cost or revaluation indefinite or finite, and if
asset without attributable to the asset will model finite, the useful lives or
physical flow to the entity. the amortization rate.
substance. The cost of the intangible b. Amortization method
asset can be measured c. Gross carrying amount
reliably. and any accumulated
amortization at the
beginning and end of the
period
d. Line item in the income
statement in which any
amortization of intangible
asset is included
e. Additions, separately
showing those internally
generated, those acquired
separately and those
acquired through business
combination.
f. Intangible assets classified
as held for sale in
accordance with PFRS 5.
g. Increases and decreases in
intangible assets resulting
from revaluation.
h. Impairment losses and
reversal of impairment
losses.
i. Net exchange differences
on translation
j. The carrying amount of
intangible asset with
indefinite life and the
reason supporting the
assessment of indefinite
life.
 k. The carrying amount and
remaining amortization
period of intangible assets
that are material to the
entity’s financial
statements.
l. The carrying amount of
intangible assets whose
title is restricted or
pledged as collateral.
m. Contractual commitments
for the acquisition of
intangible assets.
n. Intangible assets acquired
by way of government
grant and initially
recognized at fair value.
o. The amount of research
and development
expenditure recognized as
expense during the
period.

Exploration and These are the It is probable that future Cost Either the cost Noncurrent Asset May be classified as a. Its accounting policies for
evaluation asset exploration economic benefits will flow model or tangible or exploration and evaluation
and evaluation to the entity and the asset revaluation model intangible asset and expenditures including the
expenditure has a cost or value that can presented recognition of exploration and
be measured reliably. separately evaluation assets.

The entity must develop its b. The amounts of assets,

own accounting policy for the liabilities, income and expense
recognition of such assets. and operating and investing
cash flows arising from the
exploration for and evaluation
 of mineral resources.

Leasehold Leasehold It is probable that future Cost Using Cost Model Non-Current Asset Part of Property,
Improvements improvements economic benefits associated Plant and
are alterations with the asset will flow to the Equipment
or modification entity.
on the leased
property made The cost of the asset can be
by the lessee. measured reliably.
Leased Asset An asset It is probable that future Fair Value of leased May choose Non-Current Asset Property, Plant and Disclosures for Finance leases-
acquired by the economic benefits associated property at the between cost or Equipment Lessee
lessee by virtue with the asset will flow to the inception of the revaluation model.
of a contract of entity. lease or the 1. For each class of asset, the
lease to use present value of *Depreciation is net carrying amount at
the specific The cost of the asset can be minimum lease based on the useful the balance sheet date.
property measured reliably. payments, life of the asset if: 2. Reconciliation between
owned by the whichever is lower; a. The lease the total of future
lessor for a plus initial direct qualifies under the minimum lease payments
definite period costs. “transfer of at the balance sheet date
of time in ownership” and and their present value.
consideration *Minimum Lease bargain purchase In addition, an entity shall
for a certain Payments include: option criteria. disclose the total of future
sum of money rental payments *it is based on the minimum lease payments
in the form of for the whole lease lease term or at the balance sheet date,
rent. term, bargain useful life of the and their present value,
purchase option, asset w/c ever is for each of the following
and guaranteed shorter, if it periods:
residual value. qualifies under the a. Not later than one
75% and 90% year
*Implicit interest criteria. b. Later than one
rate is used in year and not later
computing the than five years
present value if this c. Later than five
 is practicable to years
determine. 3. Contingents recognized as
Otherwise, the an expense in the period.
lessee’s 4. The total of future
incremental minimum sublease
borrowing rate is payments expected to be
used. received under
noncancellable subleases
at the balance sheet date.

Cash fund It is set aside It is probable that future At face value At face value Non-current asset Long term The amount and details
for current economic benefits will flow if legally restricted investment if legally should be disclosed in the
purposes such to the entity and the asset for use beyond 12 restricted for use notes to financial statements.
s petty cash has a cost or value that can months. beyond 12 months
fund, payroll be measured reliably. and material; other
fund, and noncurrent asset if
dividend fund immaterial.

Advances to PAS 39 It is probable that future
affiliate economic benefits will flow
to the entity and the asset
has a cost or value that can
be measured reliably.
At face value At face value Noncurrent asset Presented as long The amount and details
term investment should be disclosed in the
notes to financial statements.

Notes Notes It is probable that future At present value At amortized cost Noncurrent asset Separate line item. 1. Information about the
Receivable--- Receivable are economic benefits will flow for long term non- for long term notes for the portion of extent and nature of the
not collectible claims to the entity and the asset interest bearing receivable. notes receivable financial instruments;
currently supported by has a cost or value that can notes. maturing beyond including significant terms
formal be measured reliably. one year. and conditions that may
promises to affect the amount, timing
pay usually in An entity shall recognize a and certainty of future
the form of financial asset when, and cash flows;
notes. only when, the entity 2. An accounting policies and
 becomes a party to methods adopted,
contractual provisions of the including the criteria for
instrument. recognition and the basis
of measurement applied
Loan Loan It is probable that future At fair value plus At amortized cost Non Current Asset, Separate Line item A. Information about the
Receivable--- Receivable is a economic benefits will flow transaction costs using the effective if the loan is extent and nature of the
not collectible financial asset to the entity and the asset interest method. receivable beyond financial instruments;
currently arising from a has a cost or value that can one year including significant terms
loan granted by be measured reliably. and conditions that may
a bank of other affect the amount, timing
financial An entity shall recognize a and certainty of future
institution to a financial asset when, and cash flows;
borrower or a only when, the entity B. An accounting policies
client becomes a party to and methods adopted,
contractual provisions of the including the criteria for
instrument. recognition and the basis
of measurement applied
Lease It is probable that future Lease Receivable is At amortized cost Noncurrent asset Separate Line Item Disclosures for Finance leases-
Receivable- economic benefits will flow equal to the using the effective in the face of Lessor
noncurrent to the entity and the asset amount of Gross interest method Note: if it is statement of
portion has a cost or value that can Investment. collectible beyond financial position 1.)Reconciliation between the
be measured reliably. 12 months from gross investment in the lease
the end of the and the present value of the
reporting period minimum lease payments
receivable at the end of the
reporting period.
2,)The gross investment in the
lease and the present value of
the minimum lease payments
receivable at the end of the
reporting period for each of
the following periods:
A.)Not later than one year
B.)Later than one year and not
later than 5 years
C.)Later than 5 years
3.) Unearned finance income
or unearned interest income.
4.) Unguaranteed residual
value accruing to the benefit
of the lessor.
5.) Accumulated allowance for
uncollectible minimum lease
payments receivable.
6.) Contingent rents
recognized as income in the
period.
7.) A general description of
the lessor’s material leasing
arrangements.
Darelle Hannah H. Marquez

2BSA-1

SUMMARY OF ACCOUNTS