GLIMPSE OF A CPA'S MIND

Summary of IAS 10 Key definitions Event after the reporting period: An event, which could be favourable or unfavourable, that occurs between the end of the reporting period and the date that the financial statements are authorised for issue. [IAS 10.3] Adjusting event: An event after the reporting period that provides further evidence of conditions that existed at the end of the reporting period, including an event that indicates that the going concern assumption in relation to the whole or part of the enterprise is not appropriate. [IAS 10.3] Non-adjusting event: An event after the reporting period that is indicative of a condition that arose after the end of the reporting period. [IAS 10.3] Accounting Adjust financial statements for adjusting events - events after the balance sheet date that provide further evidence of conditions that existed at the end of the reporting period, including events that indicate that the going concern assumption in relation to the whole...

Related Interpretations IAS 8(2003) supersedes SIC 2 Consistency - Capitalisation of Borrowing Costs IAS 8(2003) supersedes SIC 18 Consistency - Alternative Methods . Amendments under consideration by IASB IAS 8 - Effective date and transition methods Financial statement presentation - Comprehensive project Summary of IAS 8 Key definitions [IAS 8.5] Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements. A change in accounting estimate is an adjustment of the carrying amount of an asset or liability, or related expense, resulting from reassessing the expected future benefits and obligations associated with that asset or liability. International Financial Reporting Standards are standards and interpretations adopted by the International Accounting Standards Board (IASB). They comprise: International Financial Reporting Standards (IFRSs); Inte...

Objective of IAS 7 The objective of IAS 7 is to require the presentation of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows, which classifies cash flows during the period according to operating, investing, and financing activities. Fundamental principle in IAS 7 All entities that prepare financial statements in conformity with IFRSs are required to present a statement of cash flows. [IAS 7.1] The statement of cash flows analyses changes in cash and cash equivalents during a period. Cash and cash equivalents comprise cash on hand and demand deposits, together with short-term, highly liquid investments that are readily convertible to a known amount of cash, and that are subject to an insignificant risk of changes in value. Guidance notes indicate that an investment normally meets the definition of a cash equivalent when it has a maturity of three months or less from the date of acquisition. Equity inve...

Objective of IAS 2 The objective of IAS 2 is to prescribe the accounting treatment for inventories. It provides guidance for determining the cost of inventories and for subsequently recognising an expense, including any write-down to net realisable value. It also provides guidance on the cost formulas that are used to assign costs to inventories. Scope Inventories include assets held for sale in the ordinary course of business (finished goods), assets in the production process for sale in the ordinary course of business (work in process), and materials and supplies that are consumed in production (raw materials). [IAS 2.6] However, IAS 2 excludes certain inventories from its scope: [IAS 2.2] work in process arising under construction contracts (see IAS 11 Construction Contracts ) financial instruments (see IAS 39 Financial Instruments: Recognition and Measurement ) biological assets related to agricultural activity and agricultural produce at the point of harvest (se...

Objective of IAS 1 The objective of IAS 1 (2007) is to prescribe the basis for presentation of general purpose financial statements, to ensure comparability both with the entity's financial statements of previous periods and with the financial statements of other entities. IAS 1 sets out the overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. [IAS 1.1] Standards for recognising, measuring, and disclosing specific transactions are addressed in other Standards and Interpretations. [IAS 1.3] Scope Applies to all general purpose financial statements based on International Financial Reporting Standards. [IAS 1.2] General purpose financial statements are those intended to serve users who are not in a position to require financial reports tailored to their particular information needs. [IAS 1.7] Objective of financial statements The objective of general purpose financial statem...

Republic of the Philippines Congress of the Philippines Metro Manila Fourteenth Congress First Regular Session Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand seven. Republic Act No. 9504             June 17, 2008 Amending RA 8424 AN ACT AMENDING SECTION 22, 24, 34, 35, 51, AND 79 OF REPUBLIC ACT NO. 8424, AS AMENDED OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE OF 1997 Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: : SECTION 1. Section 22 of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby further amended by adding the following definition after Subsection (FF) to read as follows: "SEC. 22. Definitions . - when used in this Title: "(A) x x x. "x x x "(FF) x x x. "(GG) the term 'statutory minimum wage' earner shall refer to rate fixed by the Regional Tripartite Wage and Productivity Boar...

MATRIX ON DUE DATES OF TAX RETURNS AND OTHER DOCUMENTS APPLICATION FORMS BIR form 1900 Sept 2002 Application for Authority to Use Loose-Leaf/Computerized Books of Accounts and/or Accounting Record Due date: Before actual use of Loose-Leaf/Computerized Books of Accounts and/or Accounting Records. BIR form 1901 Jan 2000 Application for Registration For Self-Employed and Mixed Income Individuals, Estates and Trusts  Due date: On or before commencement of business, before payment of tax due, or before filing of return. BIR form 1902 Jan 2000 Application for Registration for Individuals Earning Purely Compensation Income and Non-Resident Citizens/OCWs/Seamen Earning Purely Foreign Source Income Due date : 10 days from date of employment. BIR form 1903 Jan 2000 Application for Registration For Corporations/Partnerships (Taxable/ Non-Taxable), Including GAIs and LGUs  Due date: On or before commencement of business, ...