Beruflich Dokumente
Kultur Dokumente
Exchange Rates
IAS 19- Employee Benefits (Revised)
IAS 40- Investment Property
IAS 41- Agriculture
IAS 16- Property, Plant and Equipment
IAS 38- Intangible Assets
IAS 37- Provisions and Contingencies
Agenda
IAS 17- Leases
IAS 36- Impairment of Assets
IAS 2- Inventories
IAS 39/ IFRS 9- Financial Instruments
IAS 28- Investment in Associates
IFRIC 15- Revenue- Real Estate Developer
IAS 8- Accounting Changes
IFRS 1- First-time Adoption
IAS 12- Income Tax
affected:
PPE
Investment property
Intangible asset
Taxation
recognized as expense in
the period in which they are
incurred. Borrowing costs
incurred in connection with
the construction or
production of a qualifying
asset shall be capitalized as
part of the cost of the asset.
Interest earned on idle fund
is treated as a reduction of
borrowing costs
affected:
Cash and cash equivalents
Receivables
Payables
affected:
Foreign currency translation adjustment
Taxation
For conversion of foreign
Taxation
The use of US dollars as
a functional currency is
allowed since the use of
foreign currency is
revenue neutral- BIR
Ruling 4-2003
affected:
Actuarial gains and losses
benefits include:
Wages and salaries and
allowances
Compensated absences
Bonuses
Non-monetary benefits
such as medical care,
housing, cars, subsidized
goods or services
expense includes:
Service costs
Net interest cost
expense depends on
whether the plan is
registered with the BIR or
not.
Registered- Actual
affected:
Biological assets
Inventory
Taxation
Livestock assets are
measured at cost.
affected:
Revaluation surplus
A reasonable allowance
cost.
PPE is taxable or
deductible.
affected:
Intangible assets
affected:
Revaluation surplus
Taxation
expense immediately
amortized over 60
months and are not
deductible in full in the
year incurred.
Research and
development costs can
be recognized as
expense immediately or
amortized over a period
of not less than 60
months
expensed immediately
while development costs
are capitalized when
certain criteria are met
Taxation
Intangibles, the use of
when
the entity has a present
obligation;
it is probable that an
outflow of economic
resources will be required;
and
a reliable estimate of the
amount of obligation can
be made
to contingent assets or
liabilities are not taxable
and not deductible.
an
Operating lease; or
Finance lease.
Taxation
Lease can either be
Lease; or
Conditional sale
Taxation
Lease Lessor
Lessor should report as
income only the lease
payments that it is
entitled to receive for the
year.
Advance rent is taxable in
the year it is received.
Costs related to the
leased property that are
the responsibility of the
lessor but paid by the
lessee are deemed
additional lease income.
Taxation
Lease Lessee
Lessee may deduct only
the amount of rent
actually due, under the
lease agreement, during
the year.
Costs related to the
leased property that are
the responsibility of the
lessor but paid by the
lessee are deemed
additional lease
expense.
Taxation
Conditional sale
The amounts paid to the
vendor will be
considered as payments
which are part of the
purchase price
Depreciation and
interest expenses are
deductible for tax
purposes
recognized in P&L
whenever the carrying
amount of an asset is
greater than its
recoverable amount.
a completed transaction,
shall be allowed as
deduction.
Thus, impairment loss
under IAS 36 is not
deductible unless the
taxpayer can clearly show
that due to the effect of
economic conditions, an
item of PPE will have to be
abandoned prior to the
end of its useful life.
IAS 2- Inventory
Statement of financial position accounts
affected:
Inventory
IAS 2- Inventory
Accounting
Taxation
determined for
accounting purposes is
the same as the cost for
tax purposes.
Only losses realized from
actual disposition or
destruction of inventory
can be claimed as a
deduction
initially measured at FV
Financial assets are
subsequently measured
at FV or amortized costs
measured at contracted
amount.
Financial assets are
measured at cost or
amortized cost. Thus,
changes in FV are not
taxable and not deductible.
Impairment loss on
affected:
Unrealized gains and losses
domestic corporation is
not subject to income tax
while dividend received
from foreign corporation is
taxable
Interest income and
expense are taxable and
deductible except imputed
interest.
Loss is allowed only on
closed and completed
transactions.
affected:
Share in investees OCI
Investment in associates
not recognized.
Dividends from domestic
either
Revenue is classified
either
Installment sale; or
Cash sale
performed (Stage of
Completion)
IAS 8- Accounting
Change
Accounting
Taxation
Change in estimates
tax calculation
prospectively.
ITR for the years affected
should be amended.
Amendment is allowed
within 3 years from the
date of prescribed filing,
provided no LoA for a tax
investigation has been
served to the tax payer
IAS 8- Accounting
Change
Accounting
Taxation
Change in accounting
Effect of transition to