UFRS REVIEWER INTERNATIONAL ACCOUNTING STANDARDS
(IAS)- enables investors and other market
TEST 1- MCQ participants to make informed economic
TEST 2-IDENTIFICATION decisions about investment opportunities and
TEST 3-T/F risks and improves capital allocation.
TEST 4- ESSAY (M1-3)
PHILIPPINE FINANCIAL REPORTING
Financial Accounting Standards Board (FASB) STANDARDS (PFRS) – to ensure consistency in
recording, recognizing and measuring
-The FASB is an independent nonprofit transactions, which, if followed properly, will
organization responsible for establishing ensure stability and transparency throughout
accounting and financial reporting standards for the financial reporting process of the company.
companies nonprofit organization in the United
States, following Generally Accepted Accounting PHILIPPINE ACCOUNTING STANDARDS (PAS) –
Principle (GAAP). ensure the financial statements from
- Formed in 1973 multiple companies are comparable.
- Has seven members
-Accounting standard GAAP ACCOUNTING STANDARDS- a common set of
principles, standards and procedures that define
The Generally Accepted Accounting Principle the basis of financial accounting policies and
(GAAP) refers to the combination of accounting, practices.
standards and procedures that govern the
preparation of financial statements in the IFRS FOUNDATION- has 22 trustees, new name
United States as established by the FASB. of international accounting standards
committee (IASC) approved in 2010.
– INTERNATIONAL ACCOUNTING STANDARDS
BOARD (IASB) IMPORTANCE OF IFRS
- can present a same financial statements as the
-The International Accounting Standards Board foreign competitors.
is an independent private sector body that -able to use one accounting language company-
develops and approve International Reporting wide.
Standard (IFRS). -companies will no longer required to prepare
-Formed in 2001 its fs under different GAAP.
-Accounting standard- IFRS
ADVANTAGES OF IFRS
Generally Accepted Accounting Principle- -Having one acccounting system will make life
accounting rules, procedures, practices litte less complicated.
and standards followed in the preparation and -knowledge to Ifrs is essential for a growing
presentation of the financial statements. business.
-higher market liquidity
Financial Reporting Standards Council (FRSC) –
is an accounting standard setting body created DISADVANTAGES OF IFRS
by the Professional Regulations Commission -differences of financial reporting
(PRC) upon recommendation of the Board of -environmental factors such as culture,
Accountancy (BOA) to assist the BOA in carrying language,and legal system how IFRS is applied.
out its powers and functions provided in RA
9298. REQUIREMENTS OF IFRS
1. SFP
FRSC- has 14 embers 2. Statement of profit and loss and other
comprehensive income
INTERNATIONAL FINANCIAL REPORTING 3. Statement of changes in equity
STANDARDS (IFRS )- 4. Cash flow Statement
bring transparency by enhancing the 5. Notes
international comparability and quality of
financial information, enabling investors and
other market participants to make informed
economic decisions.
COMPONENTS OF FINANCIAL STATEMENTS If the goods or services were acquired in an
[Link] Sheet, equity-settled share-based payment
[Link] Statement, transaction, then the corresponding increase is
[Link] of Cash Flows, recognized in equity.
[Link] of Changes in Equity
[Link], If the goods or services were acquired a cash-
settled share-based payment transaction, then
BASIC PRINCIPLES AND ASSUMPTIONS the corresponding increase is recognized as a
liability.
[Link] Basis
[Link]-concern assumptions TO MEASURE EQUITY SETTLED SBP
[Link] and comparative information 1. At fair value of goods and services received
principles found in the Framework. 2. Fair value of the equity instrument granted
[Link] items should be aggregated. 3. At the grant date
[Link] and liabilities and expenses should not
be offset and reported at a net amount unless TO CASH SETTLED SBP
specifically permitted by a standard or 1. Share Appreciation Rights
interpretation. 2. Rights to Redeemable Shares
IFRS 17 INSURANCE CONTRACTS
-Effective for annual periods beginning on or Mcq
after 1 January 2023. 1. Law practice- RA 9298
2. Independent examination- Auditing
IFRS 9 -Financial Instruments 3. Primarily responsibility- the management of
IFRS 13 -Fair Value Measurement the company.
SHARE BASED PAYMENTS Identification
1. Equity settled 1. It is accounting - Accrual Basis
2. Cash Settled 2. Set of standards- GAAP
3. Etting of PRC- FRSC
IFRS 2-Share-based Payment Modified T/F
IAS 19 Employees Benefits 1. The purpose og GAAP - balance sheet- FS
2. Accounting- reporting
Share-based payment transaction is a
transaction in which the entity: receives goods ESSAAAY
or services from the supplier (including What should be the purpose of FR?
employee) in a share-based payment - to provide accurate financial data and asses
arrangements; the financial health of the company.
Share-based payment arrangement is an
agreement between the entity and another
party (including an employee) whereby the
other party receives:
VESTING CONDITIONS- must be met before any
payment made.
IFRS 2 recognizes 2 types of vesting conditions:
[Link] conditions – they require the
counterparty to complete a specified
period of service;
[Link] conditions –they require the
counterparty to complete a specified
period of services and specified performance
targets to be met.
