PH Disclosure and Content Checklist Primary PDF

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com/ph
PFRS disclosure
and content
checklist
Isla Lipana & Co.

PFRS disclosure and content
Checklists
Introduction
The PH Disclosure and Content Checklist database contains a series of checklists used as guides for determining
whether financial statements (and certain other accompanying information) comply with applicable disclosure
requirements. The checklist do not purport to be complete in all respects or include references to all published
pronouncements, guidelines, interpretations, or similar items. The disclosure and content checklists are NOT a
substitute for authoritative accounting and auditing literature, the Securities and Exchange Commission (SEC)
regulations, or other official instructions, pronouncements, or published regulations nor does its use substitute for
sound technical, professional, and business judgment.
The Disclosure and Content Checklist have been prepared for use as checklists for public and non-public
companies. The disclosure requirements are mainly based on Philippine Accounting Standards (PAS), Philippine
Financial Reporting Standards (PFRS), SIC/IFRIC interpretations approved and issued by the Financial Reporting
Standards Council (FRSC) of the Philippines, as well as the disclosure requirements of the Securities Regulation
Code (SRC) Revised Rules 68 and 68.1 and other relevant SEC Circulars which are effective for financial statements
beginning on or after January 1, 2005. They cover not only disclosure requirements but also the accounting
treatment for certain transactions. The optional disclosures are underscored.
The Primary Checklist is designed as general-purpose checklists and need to be supplemented by the appropriate
specialized industry disclosure and content guides for non-life insurance companies, banks, and construction
contractors where accounting pronouncements have been issued locally. These are not a substitute for professional
judgment as to the essential question of fair presentation. The Supplementary Checklist addresses the disclosure
and content requirements for specific financial statement items and the accounting treatment of certain
transactions. The references in the Checklists are not a complete itemized list of all disclosures and content
requirements but are more in the nature of a general guide to broad areas. When the conditions described are
present, a thorough reading of the indicated reference is necessary.
Firm policy requires completion of the full disclosure and content checklists for all financial statements. Non-
compliance requires an explanation to the Accounting Consulting Service Partner.
These checklists do not cover disclosures required by the rules of applicable local regulatory agencies such as the
Bangko Sentral ng Pilipinas for banks and other financial institutions, the SEC for finance and pre-need companies,
the Philippine Stock Exchange for stock brokers, the Insurance Commission for insurance companies, among
others.
For entities covered by "PFRS for Small and Medium-sized Entities" (PFRS for SMEs) which is effective January 1,
2010 (may be early adopted beginning January 1, 2009), a separate PFRS for SMEs Disclosure and Content
Checklist must be used.
2
Full Disclosure Primary Checklist
The Full Disclosure and Content Checklist – Primary is presented in a format designed to facilitate the collection
and review of disclosures for each component of general purpose financial statements. Where appropriate, all
disclosures have been grouped by subject. Additional notes and explanations in the checklist are shown in italics.
Underlined provisions represent optional disclosures (dv).
a.) The engagement team shall accomplish the checklist in full. In cases where a certain item in the checklist is not
applicable to the reporting entity, an option is given to the engagement team to determine whether the specific
section is applicable or not to the entity by selecting the box located at the right corner of the checklist as follows:
• A ('Applicable') - the section is applicable to the reporting entity

• N/A (Not Applicable) - the section is not applicable to the reporting entity
For "A" answer, the database will automatically provide the corresponding checklist.
Note : This option is on a selected basis only, not all sections in the checklist have this option.
b.) In the fourth column box (headed ‘Y-NO-NA-NM’), one of the following should be marked for each
applicable disclosure item:
• Y (‘YES’) – the appropriate disclosure has been made; or

• NO (‘No’) – the appropriate disclosure has not been made/particular requirement not complied with
• NA (‘Not Applicable’) – the item does not apply to the reporting entity; or
• NM (‘Not Material’) – the item is regarded as not material to the financial statements of the reporting
entity.
* In case of a NO answer, the engagement team shall provide explanation/justification for not meeting the
disclosure requirements and how it will be addressed.
c) The fifth column box on each line ([ ]) can be used to insert a reference to the relevant part of the financial
statements and/or can be used for additional comments.
3
PRIMARY CHECKLIST
SECTION 1- REPORTS, COMPONENTS, REPRESENTATIVE and STATEMENT OF

MANAGEMENT RESPONSIBILITIES
1 Components of Financial Reports submitted to SEC

Ref Components YES No NA NM Remarks
Financial reports submitted to the SEC should
contain the following:
SRC Rule i Statement of Management's Responsibility
68 & 68.1
SRC Rule ii Statement of Representation - FOR FIRST
68 & 68.1 TIME FILING
SRC Rule iii Report of Independent Auditors
68 & 68.1
SRC Rule iv Comparative Balance Sheets
68 & 68.1
SRC Rule v Comparative Income Statements
68 & 68.1
SRC Rule vi Comparative Statements of Changes in
68 & 68.1 Equity
SRC Rule vii Comparative Cash Flow Statements
68 & 68.1
SRC Rule viii General Notes to Financial Statements
68 & 68.1
Submission to SEC
SEC Financial statements submitted to the SEC
checklist should be stamped "RECEIVED" by the Bureau
of Internal Revenue.
SRC Rule For corporations filing under Rule 68 (and
68 (3.d) therefore not covered by Rule 68.1), the
external auditor must issue a supplemental
written statement.
NOTE: Refer to the Knowledge Link

Database for the copy of the template
applicable for Corporation, Branch,
Regional Head Quarter, Regional
Operating Head Quarter and
Representative Office.
Such statement may be incorporated in the

report accompanying the Income Tax Return,
which is required to be submitted with the
Bureau of Internal Revenue. (Note: The SEC
stated that this report may be filed with
the BIR, together with the other
representations to be made. The BIR-
acknowledged copies of the reports
filed will also be the same copies to be
filed with the SEC.)
4
To support the above statement, the auditor

should undertake the audit procedures deem
necessary, such as the following:
1. Obtain a certification from the issuer’s

corporate secretary on the number of
stockholders and their corresponding
shareholdings;
2. Inspect the stock and transfer book and

conduct the tests needed to validate their
entries and balances.
Identification of the Financial
Statements
PAS 1.49 The financial statements shall be identified
clearly and distinguished from other
information in the same published document.
PAS 27.42 When separate financial statements are
prepared for a parent that elects not to prepare
consolidated financial statements in
accordance with paragraph 10 of PAS 27,
disclose:
(a) the fact that the financial statements are
separate financial statements; that the
exemption from consolidation has been
used; the name and country of
incorporation or residence of the entity
whose consolidated financial statements
that comply with International Financial
Reporting Standards have been produced
for public use; and the address where those
consolidated financial statements are
obtainable;
(b) a list of significant investments in
subsidiaries, jointly controlled entities and
associates, including the name, country of
incorporation or residence, proportion of
ownership interest and, if different,
proportion of voting power held; and
(c) a description of the method used to
account for the investments listed under
(b) above.
PAS 1.51 Identify each financial statement and notes.
Disclose the following prominently and
repeatedly when necessary for a proper
understanding of the information presented:
(a) Name of reporting entity or other means of
identification, and any change in
information from the preceding reporting
period;
PFRS Disclosure and Content Checklist 5

Isla Lipana & Co., PwC member firm

(b) Whether the financial statements cover the
individual entity or a group of entities;
(c) The date of the end of the reporting period
or the period covered by the financial
statements;
(d) The presentation currency as defined in
PAS 21;
(e) The level of rounding used in presenting
the amounts in the financial statements.
2 Statement of Management's Responsibility
General
SRC Rule 1 The Statement of Management's
68 & 68.1 Responsibility should be signed by the (1)
Chairman of the Board, (2)
CEO/President, (3) CFO/Treasurer, OR
(4) Resident Agent.
SEC
Comment
NOTE: The Statement of Management’s
Responsibility should be strictly signed by the
persons required by SRC Rule 68 & 68.1. The
same persons occupying the positions
disclosed in the Statement of Management’s
Responsibility should be consistent with the
company’s General Information Sheet
submitted to the SEC. The Statement of
Management's Responsibility should contain
reference to the comparative periods being
presented in the financial statements
submitted to the SEC.
The reporting period stated in the Statement

of Management’s Responsibility should be for
the comparative period (or periods in case a
company presents more than one comparative
period (e.g., companies reporting under SRC
Rule 68.1 or when a company presents a
restatement of the earliest comparative
period) presented in the cover page of the
financial statements.
SRC Rule 2 The statement should contain the following

68 & 68.1 information:
i The financial statements have been
prepared in conformity with
PFRS/other framework (e.g. Non-
PFRS Framework).
ii Management maintains a system of
accounting and reporting which

provides for necessary internal

controls.
SRC Rule iii FOR COMPANIES COVERED BY
68.1 RULE 68.1 (PUBLIC
COMPANIES) - Management has
disclosed to the audit committee and to
its external auditor (a) significant
deficiencies and (b) material weakness
on internal controls and (c) fraud that
involves management or other
employees who exercise significant
roles in internal controls.
iv Board of Directors has reviewed the
v Independent auditors were appointed
by the stockholders.
SRC Rule 3 Independent auditor has been
68 and duly accredited by the SEC
68.1
SRC Rule 4 FOR COMPANIES COVERED
68.1 BY RULE 68.1 (PUBLIC
COMPANIES) - The Statement
of Management's Responsibility
has to be signed under oath
(Notarized).
SRC Rule FOR COMPANIES COVERED BY RULE
68.1(Secti 68.1 (PUBLIC COMPANIES) - The
on 3.b), as Chairman of the Board shall sign the
amended Statement even if he/she is not one of
the company’s executive officers.
He/she shall sign on the basis of the
representation stated in the 3rd
paragraph of the Statement.
3 Report of Independent Auditor
General
SRC Rule The following should be clearly indicated on
68 and the Independent Auditor's Report:
68.1
i Date of Independent Auditor's report
ii The Independent Auditor's signature
iii The financial statements covered by the
report
iv The certifying accountant's license, Tax
Identification and PTR numbers, and the
registration/accreditation number with
BOA/PRC
iv Complete mailing address of the client and
the auditor
v In the case of an auditing firm, the

certifying partner shall sign his/her own

signature and shall indicate that he/she is
signing for the firm, the name of which is
printed in the report.
SRC Rule Indicate the SEC accreditation number of the
68 and Firm and the signing partner.
68.1
4 Representation as to the audit
General
SRC Rule 1 The report should state that the
68 and examination was made in accordance with
68.1 Philippine Standards on Auditing.
SRC Rule 2 If the auditor has scope limitation,
68 and designate any auditing procedure deemed
68.1 necessary under the circumstances of the
particular case.
5 Opinion to be Expressed
General
SRC Rule 1 The External Auditor has rendered an
68 and opinion on the following issues:
68.1
a financial statements covered by the
report, and
b the accounting policies and practices
are reflected therein
SRC Rule 2 The opinion is clear whether it is:
68 and
68.1
a Unqualified
b Qualified
c Disclaimer
d Adverse
SRC Rule FOR COMPANIES COVERED BY RULE
68.1 68.1 (PUBLIC COMPANIES)
(Section
2) Note: SRC Rule 68.1, section 2 entitled
"AUDITOR’S OPINION ON FINANCIAL
STATEMENTS" states the following
provisions:
Audited financial statements of companies

covered by this Rule with an auditor’s
opinion that is other than unqualified
because of departure(s) from the generally
accepted accounting principles in the
Philippines shall be deemed not filed and

shall give rise to the imposition of

appropriate sanctions on the company.
The Commission reserves the right to obtain

clarification or to question other
modifications in the report issued by the
external auditor which it deems
unreasonable.
6 Exceptions
General
SRC Rule 1 Any matter to which the independent CPA
68 and takes exception shall be clearly identified,
68.1 the exception thereto specifically and
clearly stated and to the extent practicable,
the effect of each such exception on the
related financial statements given.
SRC Rule 2 In cases when financial statements filed
68 and with the Commission pursuant to its rules
68.1 and regulations are prepared in accordance
with accounting principles for which there
is no substantial authoritative support,
such financial statements will be presumed
to be misleading or inaccurate despite
disclosures contained in the report of the
accountant or in footnotes to the financial
statements provided the matters involved
are material.
SRC Rule 3 In cases where there is a difference of
68 and opinion between the Commission and the
68.1 corporation as to the proper principles of
accounting to be followed, disclosure will
be accepted in lieu of correction of the
financial statements themselves only if the
points involved are such that there is
substantial authoritative support for the
practices followed by the corporation and
the position of the Commission has not
previously been expressed in rules,
regulations or other official
pronouncements of the Commission.
7 Additional Reportorial/Communication Requirements (Refer to AAN 2006-39) for covered

companies (Groups A to D)
SEC 1 Report the following to the SEC, in the

Memo appropriate form, within 30 days from
Circular submission of findings to the client, if the
13 Series client fails to report the same to the SEC
of 2006 within 5 days from receipt of findings from

the auditors:
(i) Any material findings involving fraud
or error;
(ii) Losses or potential losses the aggregate
of which amounts to at least 10% of
consolidated total assets;
(iii) Any finding that the consolidated
assets, on a going concern basis, are no
longer adequate to cover total claims of
creditors;
(iv) Material internal control weaknesses
which may lead to financial reporting
problems.
SEC 2 Communicate to the Audit Committee or its
Memo equivalent or those charged with corporate
Circular governance prior to the filing of the audit
13 Series report the following:
of 2006
(i) Critical accounting policies and
practices;
(ii) Alternative accounting treatments;
(iii) Other material written
communications (reports on internal
controls, Schedule of Unadjusted
Differences, engagement letter,
independence letter)
SECTION II - SCHEDULES REQUIRED FOR REPORTING
Schedules required for reporting companies under Section 17.2

Schedules:
SRC Rule Schedule A. Marketable Securities (Note
68.1 2) - (Current Marketable Equity Securities
(Note 2) and Other Short-Term Cash
Investments).
1. In support of the caption Current

Marketable Equity Securities (Note 2) in
the balance sheet, if the greater of the
aggregate cost or the aggregate market
value of current marketable equity
securities as of the balance sheet date
constitute 10 per cent or more of total
assets.
2. In support of the caption Other Short-

Term Cash Investments, if the amount at
which other short-term cash investments
shown in the balance sheet constitutes 10
per cent or more of total assets, and

3. In support of the caption Current

Marketable Equity Securities (Note 2) and
Other Short-Term Cash Investments in the
balance sheet, if the greater of the
aggregate cost or the aggregate market
value of current marketable equity
securities (Note 2) plus the amount at
which other short term cash investments is
shown in the balance sheet as of the
balance sheet date.
SRC Rule Schedule B. Amounts Receivable from

68.1 Directors, Officers, Employees, Related
Parties, and Principal Stockholders
(Other than Related parties).
This schedule shall be filed with respect to each

person among the directors, officers,
employees, and principal stockholders (other
than related parties) from whom an aggregate
indebtedness of more than P100,000 or one
per cent of total assets, whichever is less, is
due.
SRC Rule For the purposes of this schedule, exclude in
68.1 the determination of the amount of
indebtedness all amounts receivable from such
persons for purchases subject to usual terms,
for ordinary travel and expense advances and
for other such items arising in the ordinary
course of business.
SRC Rule Schedule C. Non-current Marketable

68.1 Equity Securities (Note 2), Other Long-
Term Investments in Stocks, and Other
Investments - This schedule may be omitted
if:
1. The sum of the captions Non-current

Marketable Equity Securities (Note 2),
Other Long-Term Investments, and Other
Investments in the related balance sheet
does not exceed five per cent of total assets
as shown in the related balance sheet at
either the beginning or end of the period or
2. There has been no material changes in the

information required to be filed from the
last previously reported.
SRC Rule Schedule D. Indebtedness of
68.1 Unconsolidated Subsidiaries and
Related parties - This schedule may be

omitted if:
1. The amount of all indebtedness of Related

parties to the registrant in such balance
sheet does not exceed five per cent of total
assets as shown in the related balance
sheet at either the beginning or end of the
period or
2. There has been no material changes in the

information required to be filed from the
SRC Rule Schedule E. Intangible Assets - Other
68.1 Assets – This schedule shall be filed in
support of the caption Intangible Assets in the
balance sheet.
SRC Rule Schedule F. Long-Term Debt – This
68.1 schedule shall be filed in support of the caption
Long-Term Debt in the balance sheet.
SRC Rule Schedule G. Indebtedness to Related
68.1 Parties - This schedule shall be filed to list
the total of all non-current Indebtedness to
Related Parties included in the balance sheet.
This schedule may be omitted if:
1. The total Indebtedness to Related Parties

included in such balance sheet does not
exceed five per cent of total assets as shown
in the related balance sheet at either the
beginning or end of the period; or
2. There have been no changes in the
information required to be filed from that
SRC Rule Schedule H. Guarantees of Securities of
68.1 Other Issuers. - This schedule shall be filed
with respect to any guarantees of securities of
other issuing entities by the issuer for whom
the statement is filed.
SRC Rule Schedule I. Capital Stock - This schedule
68.1 shall be filed in support of caption Capital
Stock in the balance sheet.
SECTION III - GENERAL DISCLOSURES AND ACCOUNTING POLICIES
A01a General Disclosures

1 1 General
PAS 1.15 Financial statements present fairly the
financial position, financial performance and
cash flows of an entity. Fair presentation
requires the faithful representation of the
effects of transactions, other events and

conditions in accordance with the definitions

and recognition criteria for assets, liabilities,
income and expenses set out in the
‘Framework for preparation and presentation
of financial statements’ (Framework). The
application of PFRSs, with additional
disclosure when necessary, is presumed to
result in financial statements that achieve a fair
presentation.
An entity prepares its financial statements,
except for cash flow information, using the
accrual basis of accounting.
PAS 1.10 (a) Include the following components of the
financial statements:
i Statement of Financial Position as at
the end of the period
ii Separate of Income for the Period (if
presented)
PAS 1.12
Where a separate Statement of
Income is presented, display
immediately before the statement of
comprehensive income
iii Statement of Comprehensive Income
for the period
iv Statement of Changes in Equity for the
period
v Statement of Cash flows for the period
vi Notes, and for PUBLIC COMPANIES
the supplementary SEC schedules
(Refer to Contents Checklist -
Schedules Required for Reporting
Companies Under Section 17.2 of the
SRC at the end of the 2006 Disclosure
Checklist), comprising a summary of
significant accounting policies and
other explanatory notes
viiStatement of Financial Position as at
the beginning of the earliest
comparative period when an entity
applies an accounting policy
retrospectively or makes retrospective
restatement of items, or when it
reclassifies items in its financial
statements
An entity may use titles for the

statements other than those used in this
Standard.
PAS 1.49 (b) Clearly identify and distinguish from
other information in the same published

documents the financial statements (i.e.,

annual report)
PAS 1.11 Present with equal prominence all of the

PAS 1.51 (c) Clearly identify each component of the
SRC Rule (d) Disclose reason(s) for the omission of any
68(2.d.iii) required financial statements.
PAS 1.16 (e) Include the disclosure that the financial
statements comply with Philippine
Financial Reporting Standards (PFRS)
(i.e., an explicit and unreserved
statement) or if in accordance with a
framework other than PFRS, (a) financial
reporting standards in the Philippines
for (describe entity group or industry
group, where applicable) or (b)
accounting principles generally accepted
in the Philippines for (describe entity
group or industry group, where
applicable).
Note: Financial statements should not be

described as complying with the specified
framework in the Philippines unless they
comply with all the requirements of each
applicable PAS/PFRS, each applicable
interpretation of the FRSC, and rules of
regulatory bodies (SEC, IC, BSP, etc).
PAS 1.112 (f) In the notes to financial statements of an
entity:
i present information about the basis
of preparation of the financial
statements and the specific
accounting policies used in
accordance with paragraphs 117-124
of PAS 1;
ii disclose the information required by
PAS/PFRS that is not presented
elsewhere in the financial statements;
and
iii provide additional information that is
not presented elsewhere in the
financial statements, but is relevant
to an understanding of any of them.
PAS 1.113 (g) Present notes to the financial statements
in a systematic manner.
PAS 1.113 (h) Ensure that each item on the face of the
statements of financial position,
statements of comprehensive income, in

the separate income statement (if

presented) and in the statements of
changes in equity and statements of cash
flows is cross-referenced to any related
information in the notes.
PAS 1.114
Notes are normally presented in the
following order to assist users to understand
the financial statements and to compare
them with financial statements of other
entities (unless considered necessary or
desirable to vary the order):
(a) statement of compliance with IFRSs (see
PAS 1.16);
(b) summary of significant accounting
policies applied (see PAS 1 para 117);
(c) supporting information for items
presented in the statements of financial
position and of comprehensive income, in
the separate income statement (if
presented), and in the statements of
changes in equity and of cash flows, in
the order in which each statement and
each line item is presented; and
(d) other disclosures, including:
(i) contingent liabilities (see PAS 37) and
unrecognized contractual commitments;
(ii) non-financial disclosures (see PFRS
7).
SRC Rule (i) Describe reason(s) for filing a single-

68(5.d) period statement (e.g., first period of a
new company)
PAS 1.138 (j) Disclose the following information if it is
not disclosed elsewhere in the
information published with the financial
statements:
PAS i domicile, legal form, country of
1.138(a) incorporation of the entity;
PAS ii the address of its registered office (or
1.138(a) principal place of business, if
different from the registered office);
PAS iii description of the nature of the
1.138(b) entity's operations and its principal
activities;
PAS 24.12 iv name of the immediate parent entity
(or other controlling shareholder);
PAS v name of the parent and the ultimate
1.138(c) parent.
dv vi no. of employees - either as at the end
of the period or the average number

for the period

PAS vii if it is a limited life entity,
1.138(d) information regarding the length of
its life.
PAS 24.12 viii name of the ultimate controlling
individual or group of individuals
(where applicable).
If neither the parent entity nor the

ultimate parent entity present
financial statements available for
public use, disclose the name of the
next most senior parent that does so.
SEC (k) The company has prepared two sets of
Circular 1- audited financial statements if the
2006, Company's functional currency is other
no.4 than the Philippine Peso and chooses to
present financial statements in Philippine
Peso.
SEC (l) Disclose in the audited financial
Memo 5 s. statements the total number of
2005 stockholders owning 100 or more shares
each, including the date when the
company attained the status of a public
company under Section 17.2 of the
Securities Regulation Code.
PFRS (m) For companies with exploration and
6.24(b) evaluation activities, disclose the
amounts of assets, liabilities, income and
expense and operating and investing cash
flows arising from the exploration for and
evaluation of mineral resources.
PAS 1.13 (n) Entities may present, outside the
(dv) financial statements, a financial review by
management that describes and explains
the main features of the entity’s financial
performance and financial position and
the principal uncertainties it faces,
including:
i the main factors and influences
determining financial performance,
including changes in the environment
in which the entity operates, the
entity’s response to those changes
and their effect, and the entity’s
policy for investment to maintain and
enhance financial performance,
including its dividend policy;
ii the entity’s sources of funding and its
targeted ratio of liabilities to equity;
and

iii the entity’s resources not recognized

in the statement of financial position
in accordance with PFRSs. (Note 3)
PAS 1.14 (o) Provide environmental reports, value
added statements, etc. outside financial
statements if management believes that it
will assist users in making economic
decisions.
PAS 1.27 (p) An entity should prepare its financial
statements, except for cash flow
information, using the accrual basis of
accounting.
SEC (q) An entity should present an accounting
Circular policy for a significant account.
2009,
no.8 A significant account means a statement of
financial position or statement to
comprehensive income line item, the
mount of which is equivalent to:
(i) For listed companies, public companies,

mutual funds, other issuers of securities
to the public, and pre-need companies:
5% or more of Total Current Assets, if it is
one of the current asset items;
5% of more of Total Non-Current Assets, if it
is one of the non-current asset items;
5% of more of Total Current Liabilities, if it is
one of the current liabilities items;
5% of more of Total Non-Current Liabilities,
if it is one of the non-current liabilities
items;
5% of more of Total Stockholders’ Equity, if it
is one of the equity items OR the Total
Assets if there is capital deficiency;
5% of more of Gross Income, Cost of
Sales/Services or Total Operating
Expenses, as may be applicable.
(ii) For all other corporations, the threshold

shall be 10% or more of the items
mentioned in (i).
PAS 1.116 (r) Notes providing information about the
basis of preparation of the financial
statements and specific accounting
policies may be presented as a separate
section of the financial statements.
PAS (s) Provide additional disclosures when
1.17(c) compliance with the specific
requirements in PFRSs is insufficient to
enable users to understand the impact of

particular transactions, other events and

conditions on the entity’s financial
position and financial performance.
(Note 3) Underscored entries represent optional disclosures
2 Departure from a Standard or an Interpretation

2 Departure from a Standard or
an Interpretation
PAS 1.19 (a) Disclose the following in the
extremely rare circumstances
when management concludes that
compliance with a requirement of
a Standard or an Interpretation
would be misleading, that it
would conflict with the objective
of financial statements set out in
the Framework, the entity shall
depart from that requirement if
the relevant regulatory framework
requires, or otherwise does not
prohibit, such a departure, the
entity shall disclose:
PAS i That management has concluded
1.20(a) that the financial statements fairly
present financial position, financial
performance and cash flows
PAS ii That it has complied with all material
1.20(b) respects with PFRS or if other than
PFRS, (a) the financial reporting
standards in the Philippines for
(describe entity group or industry
group, where applicable) or (b)
accounting principles generally
accepted in the Philippines for
(describe entity group or industry
group, where applicable). Except that
it has departed from a particular
requirement in order to achieve fair
presentation.
PAS iii The title of the Standard or
1.20(c) Interpretation from which the entity
has departed, the nature of the
departure, including the treatment
that the Standard or Interpretation
would require, the reason why that
treatment would be misleading in the
circumstances and the treatment
adopted
PAS iv The financial effect of the departure
1.20(d) on each item in the financial
statements that would have been

reported in complying with the

requirement for each period
presented
PAS 1.21 (b) Disclose iii and iv of (a) above if
an entity has departed from a
requirement of a Standard or an
Interpretation in a prior period,
and that departure affects the
amounts recognized in the
financial statements for the
current period.
PAS 1.23 (c) Disclose the following in the
extremely rare situations where
departure from a Standard or an
Interpretation is necessary to
achieve a fair presentation but the
relevant regulatory framework
prohibits such a departure:
PAS i The title of the Standard or
1.23(a) Interpretation in question;
PAS ii The nature of the
1.23(a) requirement;
PAS iii The reason why management
1.23(a) has concluded that complying
with that requirement would
be misleading in the
circumstances that it conflicts
with the objective of financial
statements set out in the
framework; and
PAS iv For each period presented,
1.23(b) the adjustment to each item in
the financial statements that
management has concluded
would be necessary to achieve
a fair presentation.
3
Uncertainties about going concern
3 Uncertainties about going concern
PAS 1.25 An entity shall prepare financial statements on a
going concern basis unless management either
intends to liquidate the entity or to cease trading,
or has no realistic alternative but to do so.
PAS 1.25 When management is aware, in making its
assessment, of material uncertainties related to
events or conditions that may cast significant
doubt upon the entity's ability to continue as a
going concern, the entity shall:
PAS 1.25 (a) Disclose material uncertainties
relating to events or conditions,

which may cast significant doubt

upon an entity's ability to
continue as a going concern.
PAS 1.25 (b) Disclose the fact that the going
concern basis has not been used,
together with the reason why the
entity is not considered to be a
going concern and the basis
actually used to prepare the
4 Comparative information
4 Comparative information
PAS 1.38 i Disclose comparative information of the
previous period for all amounts reported
in the current period’s financial
statements unless a PAS/PFRS permits
or requires otherwise
PAS 1.38 ii Include comparative information in
narrative and descriptive format when it
is relevant to an understanding of the
current period's financial statements
PAS 1.39 iii In disclosing comparative information,
an entity shall present, as a minimum,
two statements of financial position, two
of each of the other statements, and
related notes.
PAS 1.39 iv When accounting policy was applied
retrospectively or there was a
retrospective restatement of items or
there was a reclassification of items in the
financial statements, as a minimum, the
statement of financial position shall be
presented (i.e., three statements of
financial position, two of each of the
other statements, and related notes) at:
PAS (a) the end of the current period,
1.39(a)
PAS (b) the end of the previous period (which
1.39(b) is the same as the beginning of the
current period), and
PAS (c) the beginning of the earliest
1.39(c) comparative period.
PAS 1.41 v Disclose the nature, amount of, and
reason for, any changes in the
presentation and reclassification of items
in the financial statements and reclassify
the comparative amounts.
PAS 1.42 vi When it is impracticable to reclassify
comparative amounts, disclose the reason
for not reclassifying and the nature of the

changes that would have been made if

amounts were reclassified.
5 Consistency
5 Consistency
PAS 1.45 (a) Retain from one period to the next the
presentation and classification of items in
the financial statements. Note that this is
required unless:
i it is apparent, following a significant
change in the nature of the entity's
operations or a review of its financial
statements, that another presentation
or classification would be more
appropriate (see criteria for selection
and application of accounting policies
in PAS 8); or
ii a change in presentation is required
by a Standard or an Interpretation.
PAS 1.46 (b) Reclassify comparative information in
accordance with PAS 1.41 and 1.42, when
an entity changes presentation of its
financial statements due to significant
acquisition or disposal, for example, to
provide information that is reliable and
more relevant.
6 Reporting period
6 Reporting period
PAS 1.36 Present a complete set of financial
statements (including comparative
information) at least annually.
PAS 1.36 Disclose the following information in
addition to the period covered by the
financial statements when an entity's end of
reporting period changes and annual
financial statements are presented for a
period longer or shorter than one year:
PAS (a) Reason for using a longer or shorter
1.36(a) period other than one year; and
PAS (b) The fact that comparative amounts
1.36(b) presented in the financial statements are
not comparable.
7 Date of authorization
7 Date of authorization
PAS 10.17 (a) Include in the notes to the financial
statements the following disclosures:
i the date when the financial
statements were authorized for issue;

ii the body who gave the authorization;

and
iii if the entity's owners or others have
the power to amend the financial
statements after issue. (Note: This
is rare.)
SRC Rule (b) Submit Statement of Management's
68, Responsibility for Financial Statements,
section 2b signed by three designated officers under
oath, and in the case of public
SRC Rule companies by the Chairman of the
68.1, Board, the Chief Executive Officer and
section 3 the Chief Financial Officer and signed
under oath by such officers, which says
that "The Board of Directors reviews the
financial statements before such
statements are approved and submitted
to the stockholders of the company."
A01b Measurement Uncertainty

1 Measurement Uncertainty
1 Measurement Uncertainty
PAS 1.125 (a) Disclose key assumptions concerning
the future and other key sources of
estimation uncertainty the at end of the
reporting period, that have a significant
risk of causing a material adjustment to
the carrying amounts of assets and
liabilities within the next financial year.
Include details of:
i the nature of those assets and
liabilities, and
ii their carrying amount as at the end
of the reporting period.
PAS 1.129 (b) The disclosures above are presented in a
manner that helps users of financial
statements to understand the judgments
management makes about the future
and about other key sources of
estimation uncertainty. Examples of
disclosures made are:
i the nature of the assumption or other
estimation uncertainty;
ii the sensitivity of carrying amounts to
the methods, assumptions and
estimates underlying their
calculation, including the reasons for
the sensitivity;
iii the expected resolution of an
uncertainty and the range of
reasonably possible outcomes within

the next financial year in respect of

the carrying amounts of the assets
and liabilities affected; and
iv an explanation of changes made to
past assumptions concerning those
assets and liabilities, if the
uncertainty remains unresolved.
PAS 1.131 (c) When it is impracticable to disclose the
extent of the possible effects of a key
assumption or another key source of
estimation uncertainty at the end of the
reporting period, disclose that it is
reasonably possible, based on existing
knowledge, that outcomes within the next
financial year that are different from
assumptions could require a material
adjustment to the carrying amount of the
asset or liability affected. In all cases,
disclose the nature and carrying amount
of the specific asset or liability (or class of
assets or liabilities) affected by the
assumption.
(d) Nature, timing and certainty of cash
flows relating to the following:
PAS 37.86 i contingencies (Section A5.23)
PFRS 7.31 ii financial instruments - terms and
conditions that may affect the
amount, timing and certainty of
future cash flows (Section A8.1, Para.
1)
SIC 29.6-7 iii public service concession
arrangements - terms and conditions
that may affect the amount, timing
and certainty of future cash flows
(Section C3)
PFRS 4.37 iv insurance - information about
nature, timing and uncertainty of
future cash flows from insurance
contracts (Section E, Para. 2)
A01c Accounting Policies

1 General
1 General
PAS 1.117 (a) Describe the following in the summary
of significant accounting policies
section:
i. the measurement basis (bases) used in
preparing the financial statements
(e.g., historical cost, historical cost
modified by the revaluation of certain
non-current assets); and

ii. other significant accounting policies

used that are relevant to an
understanding of the financial
statements.
PAS 27.22, (b) Prepare the financial statements of the
28 parent and its subsidiaries used in the
preparation of the consolidated financial
statements as of the same reporting date.
In consolidated financial
PAS 28.26 statements, the results of all
PAS31.33 subsidiaries, associates and joint
ventures should be consolidated,
equity accounted or proportionally
consolidated, as applicable, using
uniform accounting policies for like
transactions and other events in
similar circumstances.
PAS 27.23; (c) Make adjustments for:
28.25 i. the effects of significant transactions
or events that occur between the
reporting date of a subsidiary or an
associate and the date of the parent's
financial statements when the
financial statements of a subsidiary or
an associate used in the preparation of
consolidated financial statements are
prepared as of a reporting date
different from that of the parent.
ii. In any case, the difference between
the reporting date of the subsidiary or
an associate and that of the parent
should be no more than three (3)
months.
PAS (d) Use uniform accounting policies for like
27.24; transactions and other events in similar
28.26 circumstances in preparing consolidated
PAS 27.25; (e) Make appropriate adjustments to the
28.27 financial statements to conform with the
accounting policies of the parent
(investor) if a member of the group
(associate) uses accounting policies other
than those adopted in the consolidated
financial statements (investor) for like
transactions and events in similar
circumstances.
PAS 1.18 Note: Inappropriate accounting
policies are not rectified either by
disclosure of the accounting policies
used or by notes or explanatory
material.

2 Specific policies
2 Specific policies
PAS 1.119 Disclose particular accounting policies,
including choices made by management
between different policies they allow for the
following.
PAS 1.119 (a) Consolidation principles, including
accounting for subsidiaries and
associates
PAS (b) The method of accounting for
27.42(c) subsidiaries and associates in the parent’s
separate financial statements if the
parent’s separate financial statements are
presented and parent elects not to
prepare consolidated financial statements
in accordance with PAS 27.10.
PFRS 3.4 (c) Accounting for Business combinations
PAS 31.57 (d) Joint ventures, including the method the
venturer uses to recognize its interest in
jointly controlled entities
PAS 1.120 (e) Foreign currency transactions and
translation including determination of
functional currency.
PAS 16.73 (f) Property, plant and equipment -- for each
class, disclose
PAS i. measurement basis (e.g., cost less
16.73(a) accumulated depreciation and
impairment losses, or revaluation
less subsequent depreciation)
PAS ii. depreciation method (e.g., straight-
16.73(b) line)
PAS 16.73 iii. the useful lives or the depreciation
(c) rate used; and
PAS 40.75 (g) Investment property:
PAS i. whether the entity applies the fair
40.75(a) value model or the cost model;
PAS ii. if it applies the fair value model,
40.75(b) whether, and in what circumstances,
property interests held under
operating leases are classified and
accounted for as investment property;
PAS iii. when classification is difficult, the
40.75(c) criteria used to distinguish
investment property from:
(1) owner-occupied property (PPE);
(2) property held for sale in the
ordinary course of business
(inventory);
PAS iv. the methods and significant

40.75(d) assumptions applied in determining

the fair value of investment property,
including a statement on whether the
determination of fair value was
supported by market evidence or was
more heavily based on other factors
(which should be disclosed) because
of the nature of the property and lack
of comparable market data; and
PAS v. the extent to which the fair value of
40.75(e) investment property (as measured or
disclosed in the financial statements)
is based on a valuation by an
independent valuer who holds a
recognized and relevant professional
qualification and has recent
experience in the location and
category of the investment property
being valued. If there has been no
such valuation, that fact should be
disclosed.
PAS (h) Other intangible assets - for each class
38.118, 119 (distinguished between internally
generated and acquired assets):
PAS i accounting treatment (cost less
38.118(c) amortization and any impairment
losses, or, in very rare cases,
revaluation less subsequent
amortization);
PAS ii whether the useful lives are indefinite
38.118(a) or finite; the amortization rates used;
the useful lives
PAS iii for intangible assets with finite useful
38.118(a), lives, the amortization period and
(b) amortization methods used (e.g.,
straight-line);
PAS iv for intangible assets with indefinite
38.108 useful lives, that they have been
tested for impairment annually and
whenever there is an indication that
the intangible asset may be impaired;
and
PAS v Describe the factors that played a
38.122(a) significant role in determining the
indefinite useful life of the asset (see
also PAS 38 Intangible Assets, par.
90).
PAS (i) Treatment of research costs and the basis
38.126-127 for capitalization of development costs
and website development costs.
PAS (j) Borrowing costs (e.g. whether expensed

23.26(a-b) or capitalized as part of qualifying asset,

and if capitalized, capitalization rate
used to determine the amount eligible for
capitalization).
PAS 23.8 (k) The accounting policy adopted for
borrowing costs.
PFRS 7.21 (l) For each class of financial asset, financial
liability and equity instrument, disclose
the accounting policies and methods
adopted, including the criteria for
recognition and the basis of
measurement.
PFRS As part of the disclosure of an entity’s
7.B5(c) accounting policies, disclose, for each
category of financial assets, whether
regular way purchases and sales of
financial assets are accounted for at trade
date or at settlement date. (PAS 39, para.
38)
PFRS 7.21 Disclose all significant accounting
PAS 1.117 policies, including the general principles
adopted and the method of applying
those principles to transactions, other
events and conditions arising in the
entity’s business. In the case of financial
instruments, such disclosure includes:
(a) the criteria applied in determining

when to recognize a financial asset or
financial liability, and when to
derecognize it;
(b) the measurement basis applied to
financial assets and financial
liabilities on initial recognition and
subsequently; and
(c) the basis on which income and
expenses arising from financial assets
and financial liabilities are recognized
and measured.
PAS 1.119; (m)Leases (Refer to Section IV
17.31; Statement of Financial Position and
17.35; Related Notes in the A2c Liabilities
17.47; Section - Leases and
17.56 Supplementary Checklist B08
Accounting by a Lessor).
PAS (n) Inventories, the accounting policy in
2.36(a) measuring inventories including the cost
formula used (e.g., FIFO or weighted
average cost.)
PAS 1.119; (o) Provisions (Refer to Section IV
37.84-86, Statement of Financial Position and

91-92 Related Notes in the A2c Liabilities

Section - Provision and Contingent
Liabilities).
PAS (p.1) Employee benefit costs – including
19.120A(a policy for recognizing actuarial gains
) and losses
SEC (p.2) Retirement benefit plan (Refer to
checklist; Supplementary Checklist B09
PAS 26.34 Retirement Benefit Plans)
PAS 1.119; (q) Share-based payments (Refer to
PFRS 2.44 Supplementary Checklist B13
Share-based Payments)
PAS 1.119; (r) Taxes, including deferred taxes (Refer
12.79-82 to Section A2 Statement of
Financial Position and Related
Notes in the A2c Liabilities Section -
Tax and Section A3 Income
Statement - Income Taxes).
PAS1.119; (s) Revenue recognition (Refer to Section
18.35(a) A3 Income Statement - Revenue).
PAS (t) Method adopted to determine the stage
18.35(a) of completion of transactions involving
the rendering of services.
PAS 1.119; (u) Construction contracts (Refer to
11.39(b)&( Supplementary Checklist B03
c) Construction Contracts), including:
i methods used to determine contract
revenue recognized; and
ii methods used to measure stage of
completion of contracts in progress.
PAS 1.119; (v) Government grants:
20.39(a)
i accounting policy; and
ii method of presentation in financial
statements.
PAS1.119; (w) Definition of cash and cash equivalents.
7.46
PAS 1.119; (x) Segment reporting (required for listed
14.50-83 companies): (Refer to
Supplementary Checklist B04
Segment Reporting)
i definition of business and
geographical segments; and
ii the basis for allocation of costs
between segments.
PFRS (y) Exploration and evaluation
6.23; 6.24 expenditures including the recognition of
(a),(b) exploration and evaluation assets.
PFRS (z) Policy for allocating exploration and
6.21,23 evaluation assets to cash-generating units
to allocate the corporate assets and

goodwill for the purpose of assessing

such assets for impairment.
SEC (aa)Policy on Inflation accounting
Checklist;
PAS
29.39(b)
PAS (bb) Policy for all assets including the
36.80; selection of the cash-generating units to
36.102 allocate the corporate assets and goodwill
for the purpose of assessing such assets
for impairment.
PAS 1.121 (cc)Any other significant accounting policies
that are not specifically required by
PAS/PFRS but are selected and applied
in accordance with PAS 8. An accounting
policy may be significant because of the
nature of the entity's operations even if
amounts for current and prior periods are
not material.
PAS 1.122 (dd)Describe management's judgments,
apart from those involving estimations,
made in the process of applying the
entity's accounting policies that have the
most significant effect on the amounts
recognized in the financial statements in
the accounting policies section or other
notes.
PAS 24.17 (ee) Related party transactions and balances;
how they are accounted for; unusual
arrangements, if any.
PAS 1.134, (dd) Disclose information that enables users
135(a)(i), of the financial statements to evaluate the
(a)(ii), entity’s objectives, policies and processes
(a)(iii), for managing capital, including:
(b), (c), (a) qualitative information about the
(d), objectives, policies and processes,
(e) including:
(i) a description of what the entity
manages as capital;
(ii) the nature of any externally
imposed capital
requirements and how those
requirements are
incorporated into the management of
capital; and
(iii) how the entity is meeting its
objectives for managing capital;
(b) summary quantitative data about
what the entity manages as capital;
(c) any changes in (a) and (b) compared
to the prior period;

(d) whether the entity has complied with

any externally imposed capital
requirements during the reporting
period; and
(e) where the entity has not complied
with any externally imposed capital
requirements, the consequences of
not compliance.
The above disclosure is based on

information provided internally to key
management personnel.
3 Changes in accounting estimates

3 Changes in accounting estimates
PAS 8.36 (a) Include the effect of a change in an
accounting estimate in the determination
of net income or loss in:
PAS i The period of the change, if the
8.36(a) change affects that period only; or
PAS ii The period of the change and future
8.36(b) periods, if the change affects both.
PAS 8.39 (b) In case there is a change in estimate,
disclose:
i the nature and amount of a change in
accounting estimate that has a
material effect in the current period;
or
ii which is expected to have a material
effect in subsequent periods.
PAS 8.40 (c) If it is not practicable to quantify the
amount, this fact should be disclosed.
4 Changes in accounting policies

4 Changes in accounting policy
Note: (This section should not be
applied when an entity becomes a first-
time adopter of PFRS.) The relevant
disclosure requirements under PFRS 1
should be applied.
PAS (a) Where a change in accounting policy is
8.19(a) made on the adoption of a Standard or an
Interpretation, provide the disclosures in
accordance with the specific transitional
provisions of that Standard, if any.
PAS 8.28 (b) On initial application of a relevant
standard or interpretation, disclose:
i the title of the standard or
interpretation;
ii that the change in accounting policy
is made in accordance with its

transitional provisions, when

applicable;
iii the nature of the change in
accounting policy;
iv a description of the transitional
provisions, when applicable;
v the transitional provisions that might
have an effect on future periods,
when applicable;
vi the amount of the adjustment for the
current period and each prior period
presented, to the extent practicable:
v1.1 for each financial statement line
item affected; and
v1.2 if PAS 33 applies to the entity,
the impact on basic and diluted
earnings per share;
vii the amount of the adjustment
relating to periods before those
presented, to the extent practicable;
and
viii if the retroactive application required
is impracticable for a particular prior
period, or for periods before those
presented, the circumstances that led
to the existence of that condition and
a description of how and from when
the change in accounting policy has
been applied. These disclosures need
not be repeated in the Financial
Statements of subsequent periods.
PAS (c) When an entity changes an accounting
8.19(b) policy upon initial application of a
Standard or an Interpretation that does
not include specific transitional
provisions applying to that change, or
changes in accounting policy voluntarily,
it should apply the change retroactively.
PAS 8.29 (d) On a voluntary change in accounting
policy, disclose:
i the nature of the change in accounting
policy;
ii the reasons why applying the new
accounting policy provides reliable
and more relevant information;
iii the amount of the adjustment for the
current period and each prior period
presented, to the extent practicable:
iii.1 for each financial statement line
item affected; and
iii.2 if PAS 33 applies to the entity,

the impact on basic and diluted

earnings per share;
iv the amount of the adjustment
relating to periods before those
presented, to the extent practicable;
and
v if the retroactive application required
is impracticable for a particular prior
period, or for periods before those
presented, the circumstances that led
to the existence of that condition and
a description of how and from when
the change in accounting policy has
been applied. These disclosures need
not be repeated in the Financial
Statements of subsequent periods.
PAS 8.30 (e) If an entity has not applied a new
relevant standard or interpretation that
has been issued but is not yet effective,
disclose:
i the fact that the entity did not apply
the new standard or interpretation
that has been issued but is not yet
effective; and
ii known or reasonably estimable
information relevant to assessing the
possible impact that application of
the new standard or interpretation
will have on the entity's financial
statements in the period of initial
application.
PAS 8.31 (f) In complying with the requirements of
paragraph 30 of PAS 8, the entity should
consider disclosing:
i the title of the new standard or
interpretation;
ii the nature of the impending change or
changes in accounting policy;
iii the date by which application of the
standard or interpretation is
required;
iv the date as at which it plans to apply
the standard or interpretation
initially; and
v either:
v.1 a discussion of the impact that
initial application of the
standard or interpretation is
expected to have on the entity’s
financial statements; or
v.2 if that impact is not known or

reasonably estimable, a
statement to that effect.
SRC Rule (g) For reporting companies under the
68 (2.a) SRC: Disclose in its notes to financial
statements the adoption made of the list
SRC Rule of PFRSs which are not yet effective, but
68.1 which the company has decided to adopt
(Annex earlier, including:
68.1-J)
i a brief description of the PFRS; and
ii a presentation of the reconciliation
between the effective standard and
the PFRS adopted in advance.
5 Correction of errors
5a Accounting treatment
PAS 8.42 (a) An entity should correct material prior
period errors retroactively in the first set
of financial statements authorized for
issue after their discovery by:
i restating the comparative amounts for
the prior period(s) presented in which
the error occurred; or
ii if the error occurred before the
earliest prior period presented,
restating the opening balances of
assets, liabilities and equity for the
earliest prior period presented.
PAS 8.43 (b) Correct a prior period error by
retroactive restatement except to the
extent that it is impracticable to
determine either the period-specific
effects or the cumulative effect of the
error
PAS 8.44 i when it is impracticable to determine
the period-specific effects of an error
on comparative information for one
or more periods presented, the entity
should restate the opening balances
of assets, liabilities and equity for the
earliest period for which retroactive
restatement is practicable (which may
be the current period)
PAS 8.45 ii when it is impracticable to determine
the cumulative effect, at the
beginning of the current period, of an
error on all prior periods, the entity
should restate the comparative
information to correct the error
prospectively from the earliest date
practicable

Disclosures
5b Disclosures
PAS 8.49 An entity should disclose the
following:
(a) the nature of the prior period
error;
(b) the amount of the correction for
each prior period presented, to
the extent practicable:
i for each financial statement
line item affected; and
ii if PAS 33 applies to the entity,
for basic and diluted earnings
per share;
(c) the amount of the correction at
the beginning of the earliest prior
period presented; and
(d) if retroactive restatement is
impracticable for a particular
prior period, the circumstances
that led to the existence of that
condition and a description of
how and from when the error has
been corrected.
PAS 8.49 Note: These disclosures need not be
repeated in the financial statements
of subsequent periods.
6 Discontinued operations
6 Discontinued operations
PFRS 5.33 a Disclose the following for all
periods presented:
PAS i a single amount in the income
12.81(h) statement of comprehensive
income comprising the total
of:
i.1 the post-tax profit or loss
of discontinued
operations; and
i.2 the post-tax gain or loss
recognized on the
measurement to fair value
less costs to sell or on the
disposal of assets or
disposal group(s) constituting
the discontinued
operation.
ii an analysis of the single
amount in (i) above into:

ii.1 the revenue, expenses and

pre-tax profit or loss of
discontinued operations;
ii.2 the related income tax
expense as required by
paragraph 81 (h) of PAS
12;
PFRS 5.33 ii.3 the tax expense relating
to:
(a) the gain or loss on
discontinuance; and
(b) the profit or loss from
the ordinary activities
of the discontinued
operation for the
period, together with
the corresponding
amounts for each prior
period presented; and
PAS (c) the amount of income
12.81(i) tax consequences of
dividends to
shareholders of the
entity that were
proposed or declared
before the financial
statements were
authorized for issue,
but are not recognized
as a liability in the
Note: The analysis may be given in
the notes or on the face of the income
statement. If it is given on the face of
the income statement, it should be
presented in a section relating to
discontinued operations separate
from continuing operations.
The analysis is not required if the

disposal group is a newly acquired
subsidiary that meets the criteria to
be classified as held for sale on
acquisition (see paragraph 11 of
PFRS 5).
PFRS 5.34 (b) Re-present the disclosures in (a)
above for prior periods presented in
the financial statements so that the
disclosures relate to all

operations that have been

discontinued by the end of the
reporting period for the latest
period presented.
PFRS (c) If an entity presents the components of
5.34A profit or loss in a separate income
statement as described in paragraph 81 of
PAS 1, a section identified as relating to
discontinued operations is presented in
that separate statement.
PFRS 5.35 (d) Present separately discontinued
operations with any adjustments in the
current period to amounts previously
presented in discontinued operations that
are directly related to the disposal of a
discontinued operation in a prior period.
The nature and amount of such
adjustments should be disclosed.
PFRS 5.36 (e) If a component of an entity ceases to be
classified as held for sale, the results of
operations of the component previously
presented in discontinued operations
should be reclassified and included in
income from continuing operations for all
periods presented. Disclose the amounts
for prior periods as having been re-
presented.
PFRS 5.36 (f) An entity that is committed to a sale plan
involving loss of control of a subsidiary
shall disclose the information required in
(a) above when the subsidiary is a disposal
group that meets the definition of a
discontinued operation.
A01d Changes in Foreign Exchange Rates

1 Foreign currency transactions
1 Foreign currency transactions
PAS 21.21 (a) Initial recognition - A foreign currency
transaction should be recorded in the
functional currency, by applying to the
foreign currency amount the spot
exchange rate between the functional
currency and the foreign currency at the
date of the transaction.
PAS 21.23 (b) Reporting at the end of subsequent
reporting periods - At each reporting
period:
i foreign currency monetary items
should be translated using the closing
rate;

ii non-monetary items that are

measured in terms of historical cost
in a foreign currency should be
translated using the exchange rate at
the date of the transaction; and
iii non-monetary items that are
measured at fair value in a foreign
currency should be translated using
the exchange rates at the date when
the fair value was determined
PAS 21.26 Note: When several exchange rates are
available, the rate used is that at which
the future cash flows represented by the
transaction or balance could have been
settled if those cash flows had occurred
at the measurement date. If
exchangeability between two currencies
is temporarily lacking, the rate used is
the first subsequent rate at which
exchanges could be made.
(c) Exchange differences
PAS 21.28 i Exchange differences arising on the
settlement of monetary items or on
translating monetary items at rates
different from those at which they
were translated on initial recognition
during the period or in previous
financial statements should be
recognized in profit or loss in the
period in which they arise except (c)
iv below.
PAS 21.30 ii Any exchange component of the gain
or loss on a non-monetary item
should be recognized in other
comprehensive income.
PAS 21.30 iii Any exchange component of the gain
or loss on a non-monetary item
recognized in profit or loss should be
recognized in profit or loss.
PAS 21.32 iv Exchange differences arising on a
monetary item that forms part of a
reporting entity's net investment in a
foreign operation should be
recognized in profit or loss in the
separate financial statements of the
reporting entity or the individual
financial statements of the foreign
operation, as appropriate.

PAS 21.32 v Exchange differences should be

recognized initially in other
comprehensive income and
reclassified from equity to profit or
loss on disposal of the net investment
in accordance with paragraph 48 of
PAS 21 The Effects of Changes in
Foreign Exchange Rates for financial
statements that include the foreign
operation and the reporting entity
(e.g. consolidated financial
statements when the foreign
operation is a subsidiary).
PAS 21.35 (d) Change in functional currency - The
entity should apply the translation
procedures applicable to the new
functional currency prospectively from
the date of the change.
PAS 21.37 Note: The entity translates all items into
the new functional currency using the
exchange rate at the date of change. The
resulting translated amounts for non-
monetary items are treated as their
historical cost. Exchange differences
arising from the translation of a foreign
operation previously classified in equity
in accordance with paragraphs 32 and
39(c) of PAS 21 are not recognized in
profit or loss until the disposal of the
operation.
(e) Disclose:
PAS i the amount of exchange differences
21.52(a) recognized in profit or loss except for
those arising on financial instruments
measured at fair value through profit
or loss in accordance with PAS 39
PAS ii net exchange differences classified in
21.52(b) a separate component of equity, and a
reconciliation of the amount of such
exchange differences at the beginning
and end of the period
PAS 21.53 iii when the presentation currency is
different from the functional
currency, state that fact, together with
disclosure of the functional currency
and the reason for using a different
presentation currency.
PAS 21.54 iv whenever there is a change in the
functional currency of either the
reporting entity or a significant
foreign operation, and the reason for

the change in functional currency

PAS 21.55 v. If presenting financial statements in a
currency that is different from the
functional currency, describe the
financial statements as complying
with IFRS only if they comply with all
the requirements of each applicable
standard and each applicable
interpretation including the
translation method set out in PAS 21
paras 39 and 42.
PAS 21.56 vi. An entity sometimes presents its
financial statements or other financial
information in a currency that is not
its functional currency without
applying the translation methods set
out in PAS 21 paras 39 and 42. For
example, an entity may convert only
selected items from its financial
statements into another currency; or,
an entity whose functional currency is
not the currency of a
hyperinflationary economy may
convert the financial statements into
another currency by translating all
items at the most recent closing rate.
Such conversions are not in
accordance with PFRS, and the
disclosures set out in PAS 21 para 57
are required (see below).
PAS 21.57 vii. If presenting financial statements or
other financial information in a
currency that is different from either
the functional currency or the
presentation currency without
applying the translation methods set
out in PAS 21 paras 39 and 42:
(a) clearly identify the information as
supplementary information to
distinguish it from the
information that complies with
IFRS;
(b) disclose the currency in which the
supplementary information is
displayed; and
(c) disclose the entity’s functional
currency and the method of
translation used to determine the
supplementary information.
A01e Retirement Benefit Cost

1 Short-term employee benefits

1 Short-term employee benefits
PAS 19.23 Disclose the following for short-term
employee benefits:
PAS 1.97; (a) Employee benefit expense
1.102
PAS (b) Short-term benefits for key
24.16(a) management personnel compensation
2 Post-employment benefits
i Defined contribution plans
PAS 19.46- 2a Defined Contribution Plans
47
PAS 19.46; (a) The amount recognized as an expense for
1.102 defined contribution plans
PAS (b) Contributions to defined contribution
24.16(b); plans for key management personnel
PAS 19.47
ii Defined benefit plans
For entities who applied option in PAS 19,p93A-93D
2b Defined Benefit Plans

A. Entities that have decided not to
apply the option in paragraphs
93A-93D of PAS 19 (recognition
of actuarial gains and losses).
For annual periods beginning before

January 1, 2006, above entities should
apply additional amendments and
refer to part B (entities that have
decided to apply the option in
paragraphs 93A-93D of PAS 19 -
recognition of actuarial gains
and losses for a period beginning
before January 1, 2006) of this
checklist. (Note: References in the
left-hand margins of this section
represent the paragraphs of the
standard before the amendment
issued in December 2004.)
PAS (a) Provide a general description of the
19.120(b) type of defined benefit plan.
PAS (b) Provide a reconciliation of the
19.120A(c) assets and liabilities recognized in
the statement of financial position,
showing at least:
i the present value at the end of
the reporting period of defined
benefit obligations that are

wholly unfunded;
ii the present value (before
deducting the fair value of plan
assets) at the end of the
reporting period of defined
benefit obligations that are
wholly or partly funded;
iii the fair value of any plan
assets at the end of the
reporting period;
iv the net actuarial gains or losses
not yet recognized in the
statement of financial position
(see paragraph 92 of PAS 19);;
v the past service cost not yet
recognized in the statement of
financial position (see
paragraph 96 of PAS 19);
vi any amount not recognized as
an asset, because of the limit in
paragraph 58(b) of PAS 19;
vii the fair value at the end of the
reporting period of any right to
reimbursement recognized as
an asset and a brief description
of the link between the
reimbursement right and the
related obligation; and
viii the other amounts recognized
in the statement of financial
position.
For the offsetting rules of an
asset relating to one plan
against a liability relating to
another plan, refer to
paragraph 116 of PAS 19.
PAS 1.61 (c) Where the amounts recognized in
the statement of financial position
combine current and non-current
amounts, disclose the amount of
the non-current portion (where
this can be determined – refer to
paragraph 118 of PAS 19) that is
expected to be recovered or settled
after more than 12 months.
PAS (d) Disclose the amounts included in
19.120(k) the fair value of plan assets for:
i each category of the reporting
entity’s own financial
instruments; and
ii any property occupied by, or

other assets used by, the

reporting entity.
PAS (e) Provide a reconciliation showing
19.120(e) the movements during the period
in the net liability (or asset)
financial position. For example,
the following information would
normally be disclosed:
i the carrying amount at the
beginning and end of the
period;
ii exchange differences from the
translation of foreign entity’s
financial statements;
iii liabilities acquired through
business combinations;
iv expense recognized in the
income statement; and
v contributions paid.
PAS (f) Disclose the principal actuarial
19.120(n) assumptions used as at the end of
the reporting period, including:
i the discount rates;
ii the expected rates of return on
any plan assets for the periods
presented in the financial
statements;
iii the expected rate of return for
the periods presented in the
financial statements on any
reimbursement right
recognized as an asset under
paragraph 104A of PAS 19;
iv the expected rates of salary
increases (and of changes in an
index or other variable
specified in the formal or
constructive terms of a plan as
the basis for future benefit
increases);
v medical-cost trend rates; and
vi any other material actuarial
assumptions used (e.g. details
of mortality assumptions).
Disclose each actuarial
assumption in absolute terms
(for example, as an absolute
percentage), not just as a
margin between different
percentages or other variables.

PAS (g) For multi-employer plans that are

19.29(b) treated as defined benefit plans,
disclose all of the above
information (all items required by
paragraph 120 of PAS 19).
PAS (h) For multi-employer plans that are
19.30(b-c) treated as a defined contribution
plan, disclose:
i the fact that the plan is a
defined benefit plan;
ii the reason why sufficient
information is not available to
enable the entity to account for
the plan as a defined benefit
plan;
iii to the extent that a surplus or
deficit in the plan may affect
the amount of future
contributions, disclose in
addition:
(1) any available information
about that surplus or
deficit;
(2) the basis used to determine
that surplus or deficit; and
(3) the implications, if any, for
the entity (refer also to
paragraph 35 of PAS 19).
For entities who did not apply option in PAS 19,p93A-93D
B. Entities that have decided to apply the

option in paragraphs 93A-93D of PAS
19 (recognition of actuarial gains and
losses) for a period beginning before
January 1, 2006.
Apply the additional amendments and

referred to in this section. (Note: References
in the left-hand margins of this section
represent the paragraphs of the standard
after the amendment issued in December
2004.)
PAS (a) Disclose information that enables users of
19.120 financial statements to evaluate the
nature of its defined benefit plans and the
financial effects of changes in those plans
during the period.
PAS (b) Disclose the following information about
19.120A defined benefit plans:
PAS i the entity's accounting policy for

19.120A(a recognizing actuarial gains and

) losses;
PAS ii a general description of the type of
19.120A(b defined benefit plan;
)
PAS iii a reconciliation of opening and
19.120A(c) closing balances of the present value
of the defined benefit obligation
showing separately, if applicable, the
effects during the period attributable
to each of the following:
(1) current service cost,
(2) interest cost,
(3) contributions by plan
participants,
(4) actuarial gains and losses,
(5) foreign currency exchange rate
changes on plans measured in a
currency different from the
entity’s presentation currency,
(6) benefits paid,
(7) past service cost,
(8) business combinations,
(9) curtailments and
(10)settlements.
PAS iv an analysis of the defined benefit
19.120A(d obligation into amounts arising from
) plans that are wholly unfunded and
amounts arising from plans that are
wholly or partly funded.
PAS v a reconciliation of the opening and
19.120A(e closing balances of the fair value of
) plan assets and of the opening and
closing balances of any
reimbursement right recognized as an
asset in accordance with paragraph
104A showing separately, if
applicable, the effects during the
period attributable to each of the
following:
(1) expected return on plan assets,
(2) actuarial gains and losses,
(3) foreign currency exchange rate
changes on plans measured in a
currency different from the
entity’s presentation currency,
(4) contributions by the employer,
(5) contributions by plan
participants,
(6) benefits paid,

(7) business combinations; and

(8) settlements
PAS vi a reconciliation of the present value of
19.120A(f) the defined benefit obligation in (iii)
and the fair value of the plan assets in
(v) to the assets and liabilities
financial position, showing at least:
(1) the net actuarial gains or losses
not recognized in the statement of
financial position (see paragraph
92 of PAS 19);
(2) the past service cost not
financial position (see paragraph
96 of PAS 19);
(3) any amount not recognized as an
asset, because of the limit in
paragraph 58(b) of PAS 19;
(4) the fair value at the end of the
reporting period of any
reimbursement right recognized
as an asset in accordance with
paragraph 104A of PAS 19 (with a
brief description of the link
between the reimbursement right
and the related obligation); and
(5) the other amounts recognized in
the statement of financial
position.
PAS vii the total expense recognized in profit
19.120A(g or loss for each of the following, and
) the line item(s) in which they are
included:
(1) current service cost;
(2) interest cost;
(3) expected return on plan assets;
(4) expected return on any
(5) actuarial gains and losses;
(6) past service cost;
(7) the effect of any curtailment or
settlement; and
(8) the effect of the limit in
paragraph 58(b) of PAS 19.
PAS viii the total amount recognized in the
19.120A(h statement of recognized income and
) expense for each of the following:
(1) actuarial gains and losses; and

(2) the effect of the limit in

paragraph 58(b) of PAS 19.
PAS ix for entities that recognize actuarial
19.120A(i) gains and losses in the statement of
comprehensive income in
accordance with paragraph 93A of
PAS 19, the cumulative amount of
actuarial gains and losses recognized
in the statement of recognized income
and expense.
PAS x for each major category of plan assets,
19.120A(j) which should include, but is not
limited to, equity instruments, debt
instruments, property, and all other
assets, the percentage or amount that
each major category constitutes of the
fair value of the total plan assets.
PAS xi the amounts included in the fair value
19.120A(k of plan assets for:
)
(1) each category of the entity’s own
financial instruments; and
(2) any property occupied by, or other
assets used by, the entity.
PAS xii a narrative description of the basis
19.120A(l) used to determine the overall
expected rate of return on assets,
including the effect of the major
categories of plan assets.
PAS xiii the actual return on plan assets, as
19.120A(m well as the actual return on any
) reimbursement right recognized as an
asset in accordance with paragraph
104A of PAS 19.
PAS xiv the principal actuarial assumptions
19.120A(n used as at the end of the reporting
) period, including, when applicable:
(1) the discount rates;
(2) the expected rates of return on
any plan assets for the periods
presented in the financial
statements;
(3) the expected rates of return for
the periods presented in the
financial statements on any
(4) the expected rates of salary
increases (and of changes in an
index or other variable specified

in the formal or constructive

terms of a plan as the basis for
future benefit increases);
(5) medical cost trend rates; and
(6) any other material actuarial
assumptions used.
Note: An entity should disclose each
actuarial assumption in absolute terms
(for example, as an absolute percentage)
and not just as a margin between
different percentages or other variables.
PAS xv the effect of an increase of one
19.120A(o percentage point and the effect of a
) decrease of one percentage point in
the assumed medical cost trend rates
on:
(1) the aggregate of the current
service cost and interest cost
components of net periodic post-
employment medical costs; and
(2) the accumulated post-
employment benefit obligation for
medical costs.
PAS Note: For the purposes of this disclosure,
19.120A(p all other assumptions should be held
) constant. For plans operating in a high
inflation environment, the disclosure
should be the effect of a percentage
increase or decrease in the assumed
medical cost trend rate of a significance
similar to one percentage point in a low
inflation environment.
PAS xvi the amounts for the current annual
19.120A(q period and previous four annual
) periods of:
(1) the present value of the defined
benefit obligation, the fair value of
the plan assets and the surplus or
deficit in the plan; and
(2) the experience adjustments
arising on:
(A) the plan liabilities expressed
either as (1) an amount or (2)
a percentage of the plan
liabilities at the end of the
reporting period and
(B) the plan assets expressed
either as (1) an amount or (2)
a percentage of the plan assets
at the end of the reporting
period.

PAS xvii the employer’s best estimate, as soon

19.120A(q as it can reasonably be determined, of
) contributions expected to be paid to
the plan during the annual period
beginning after the end of the
reporting period.
PAS (c) An entity with more than one defined
19.122 benefit plan, may report disclosures in
the financial statements in total for all
such plans, separately for each plan, or in
such groupings as are considered to be
the most useful. It may be useful to
distinguish groupings by criteria such as
the following:
i the geographical location of the plans,
for example, by distinguishing
domestic plans from foreign plans; or
ii whether plans are subject to
materially different risks, for
example, by distinguishing flat salary
pension plans from final salary
pension plans and from post-
employment medical plans.
Note: When an entity provides in total for a
grouping of plans, such disclosures are
provided in the form of weighted averages
or of relativity narrow ranges.
PAS (d) For multi-employer plans that are treated
19.29(b) as defined benefit plans disclose the
information required by paragraph 120A
of PAS 19.
PAS 19.30 (e) When sufficient information is not
available to use defined benefit
accounting for a multi-employer plan
that is a defined benefit plan, an entity
should:
PAS i account for the plan under
19.30(a) paragraphs 44–46 of PAS 19 as if it
were a defined contribution plan;
PAS ii disclose the fact that the plan is a
19.30(b) defined benefit plan;
PAS iii disclose the reason why sufficient
19.30(b) information is not available to enable
the entity to account for the plan as a
defined benefit plan;
PAS iv to the extent that a surplus or deficit
19.30(c) in the plan may affect the amount of
future contributions, disclose in
addition:
(1) any available information about
that surplus or deficit;

(2) the basis used to determine that

surplus or deficit; and
(3) the implications, if any, for the
entity.
PAS (f) Disclose information about related party
24.16(b); transaction with post-employment
19.124 benefits and post-employment benefits
for key management personnel.
PAS (g) Disclose contingent liabilities arising
19.125 from post-employment benefit
obligations.
PAS (h) For a defined benefit plan that shares
19.34B(a- risks between entities under common
d) control, disclose;
i the contractual agreement or stated
policy for charging the defined benefit
cost or the fact that there is no such
policy;
ii the policy for determining the
contribution to be paid by the entity;
iii if the entity accounts for an
allocation of the net defined benefit
cost in accordance with paragraph
34A of PAS 19R, all the information
about the plan as a whole in
accordance with paragraphs 120-121
of PAS 19;
iv if the entity accounts for the
contribution payable for the period in
accordance with paragraph 34A of
PAS 19R, information about the plan
as a whole required in accordance
with paragraphs 120A (b)-(e), (j), (n),
(o), (q) and 121 of PAS 19 R.
3 Other long-term employee benefits

3 Other long-term employee benefits
PAS 19.131 Disclose the following information for
other long-term employee benefits:
PAS 1.102; (a) The amount to be recognized as an
19.131 expense for other long-term employee
benefits
PAS (b) Information about other long-term
24.16(c) employee benefits for key management
personnel
4 Termination benefits
4 Termination benefits
PAS 19.141 (a) Disclose contingent liabilities arising from
termination benefits (for example, due to
the uncertainty over the number of

employees who will accept an offer of

termination benefits).
PAS (b) Disclose the nature and amount of
19.142; termination benefits expense, if it is
1.86 material.
PAS (c) Disclose information about termination
24.16(d) benefits for key management personnel.
5 Transitional provisions
5 Transitional provisions
PAS (a) On first-time adoption of PAS 19, an
19.155 (b) entity should determine the transitional
(ii) liability in accordance with paragraph 154
of PAS 19. If the transitional liability is
more than the amount that would have
been recognized at the same date under
the entity's previous accounting policy,
and the difference is recognized on a
straight-line basis over up to five years,
the entity should disclose at each end of
the reporting period:
(a) the amount of difference that remains
unrecognized; and
(b) the amount recognized in the current
period.
Preface to (b) As allowed by the ASC but only for PFRS
PAS 19 purposes, for post-employment benefit
plans, including pension plans and other
long-term employee benefits, under PFRS
1, and with the adoption of the alternative
treatment, the transitional liability may be
recognized on a straight-line basis of up to
5 years from January 1, 2005. Therefore,
if five years is chosen, only 1/5 of the total
transitional liability under PAS 19 will be
recorded as a liability and an expense as of
December 31, 2005. Disclose if such
option was taken, including the
amortization period chosen, the total
transitional liability, periodic amortization
and remaining unrecorded liability.
A01f Events after the reporting period

1 Events after the reporting period
PAS 10.12; (a) The amount of dividends that were
1.137(a) proposed or declared after the end of the
reporting period but before the financial
statements were authorized for issue but
not recognized as a distribution to equity
holders during the period, and related
amount per share.

PAS 10.8- (b) Adjust amounts recognized in the financial

9 statements to reflect adjusting events after
the end of the reporting period. See PAS 10
paragraph 9 for examples.
PAS 10.19 (c) If an entity receives information after the
end of the reporting period about
conditions that existed at the end of the
reporting period, update the disclosures
that relate to those conditions in the light
of the new information.
PAS 10.21- (d) Where non-adjusting events occurring after
22 the end of the reporting period do not
affect the condition of assets or liabilities at
the end of the reporting period but are of
such importance that nondisclosure would
affect the ability of the users of the financial
statements to make proper evaluations and
decisions, disclose:
i the nature of the event; and
ii an estimate of its financial effect, or a
statement that such an estimate cannot
be made.
Note: Paragraph 22 of PAS 10 provides
examples of non-adjusting events after the
end of the reporting period that would
generally result in disclosure.
PFRS (e) Business combinations - if a business
3.59(b) combination has been effected after the end
of the reporting period and before the
financial statements are issued, all relevant
disclosures required in paragraphs B64 to
B66 of PFRS 3 should be prepared (Refer
to Supplementary Checklist B01
Business Combinations & Disposals).
If it is impracticable to disclose any of this
information, disclose that fact and an
explanation of why this is the case.
SECTION IV - STATEMENT OF FINANCIAL POSITION (AND RELATED NOTES)

Ao2a General disclosures
1 General disclosures
PAS 1.54 (a) As a minimum, the face of the statement of
financial position shall include line items
that present the following amounts:
i cash and cash equivalents;
ii trade and other receivables;
iii inventories;
iv biological assets;
v investments accounted for using the
equity method;

vi financial assets, e.g. investments

[excluding amounts shown under (i),
(ii), and (v)];
vii intangible assets;
viii investment property;
ix property, plant and equipment;
x the total of the assets classified as held
for sale and assets included in disposal
groups classified as held for sale in
accordance with PFRS 5 Non-current
Assets Held for Sale and Discontinued
Operations;
xi trade and other payables;
xii provisions;
xiii financial liabilities [excluding
amounts shown under (xi) and (xii)];
xiv current tax liabilities and current tax
assets;
xv deferred tax liabilities and deferred
tax assets;
xvi liabilities included in disposal groups
classified as held for sale in
accordance with PFRS 5
xvii non-controlling interest (presented
within equity); and
xviii issued capital and reserves
attributable to owners of the parent
(for example, ordinary shares, share
premium, treasury shares, fair value
reserves, translation differences and
RE)
PAS 1.55 Additional line items, headings and sub-totals
should be presented on the face of the
statement of financial position when such
presentation is relevant to an understanding
of the entity's financial position. (Refer to
Section A9 for disclosures relating to
discontinued operations)
PAS 1.57 Note: PAS 1 does not prescribe the order or
format for presenting items in the statement
of financial position.
PAS 1.58 Judgment should be used whether to present
additional items separately on the basis of an
assessment of:
PAS (a) the nature and liquidity of assets;
1.58(a)
PAS (b) the function of assets;
1.58(b)
PAS (c) the amounts, nature and timing of
1.58(c) liabilities

PAS 1.32 Assets and liabilities should not be offset

except when offsetting is required or
permitted by a Standard or an Interpretation.
PAS 1.77 (c) Either on the face of the statement of
financial position or in the notes, disclose
further sub-classifications of the line items
presented, classified in a manner
appropriate to the entity’s operations.
PAS 1.78 (d) The detail provided in the
subclassifications depends on the
requirements of PFRSs and on the size,
nature and function of the amounts
involved. In addition, to consider factors
set out in paragraph 58 of PAS 1 to decide
the basis of subclassifications. Disclosures
vary for each item, like:
PAS i property, plant and equipment are
1.78(a) disaggregated into classes in
accordance with PAS 16 Property,
Plant and Equipment;
PAS ii receivables are disaggregated into
1.78(b) amounts receivable from trade
customers, receivables from related
parties, prepayments and other
amounts;
PAS iii inventories are disaggregated, in
1.78(c) accordance with PAS 2 Inventories,
into classifications such as
merchandise, production supplies,
materials, work in progress and
finished goods;
PAS iv provisions are disaggregated into
1.78(d) provisions for employee benefits and
other items; and
PAS v equity capital and reserves are
1.78(e) disaggregated into various classes,
such as paid capital, share premium
and reserves.
PAS 1.60 (e) Is the current/non-current distinction of
assets and liabilities made on the face of
the statement of financial position?
i yes – ensure that classification rules in
paragraphs 66 to 76 of PAS 1 are
applied;
ii no – ensure that a presentation based
on liquidity provides information that is
reliable and more relevant. Also, ensure
that assets and liabilities are presented
broadly in order of their liquidity.
PAS 1.64
An entity is permitted to use a mixed basis

of presentation, including current/non-

current classification and in order of
liquidity, when this provides information
that is reliable and more relevant – for
example, when an entity has diverse
operations.
PAS 1.61 (f) Whichever method of presentation in

paragraph 60 of PAS 1 is applied, for each
asset and liability item that combines
current and non-current amounts, disclose
the non-current portion (the amount
expected to be recovered or settled after
more than 12 months).
SRC Rule 1 Statement of financial position contains at
68, least one-year comparative statement?
Section
5.b; SEC
checklist
2 Is comparative information presented for

the previous period?
3 When the presentation or
classification of items in the
statement of financial position is
amended:
i entity reclassify comparative amounts,
disclose:
- the nature of the reclassification;
- the amount of the reclassification;
and
- the reason for the reclassification
ii Reclassification of comparative
amounts is impracticable, disclose
- the reason for not reclassifying;
and
- the nature of changes that would
have been made if amounts were
reclassified.
A02b Assets
1 Current and non-current assets distinction
1 Current and non-current assets
distinction
PAS 1.66 (a) An asset should be classified as current
asset when it:
PAS i Is expected to be realized in, or is
1.66(a) intended for sale or consumption in,
the entity's normal operating cycle; or

PAS iiIs held primarily for trading purposes;

1.66(b) or
PAS iii Is expected to be realized within twelve
1.66(c) months after the reporting period; or
PAS iv Is cash or cash equivalent (as defined
1.66(d) in PAS 7 -Statement of Cash Flow)
unless it is restricted from being
exchanged or used to settle a liability
for at least twelve months after the
reporting period
PAS 1.66 (b) All other assets should be classified as non-
current assets.
2 Cash and cash equivalents
PAS 2 Cash and cash equivalents
1.54(i)
PAS 7.7 Cash equivalents are held for the purpose of
meeting short-term cash commitments rather
than for investment or other purposes. For an
investment to qualify as a cash equivalent it
must be readily convertible to a known amount
of cash and be subject to an insignificant risk of
changes in value. Therefore, an investment
normally qualifies as a cash equivalent only
when it has a short maturity of, say, three
months or less from the date of acquisition.
Equity investments are excluded from cash
equivalents unless they are, in substance, cash
equivalents, for example in the case of
preferred shares acquired within a short period
of their maturity and with a specified
redemption date.
PAS 7.48 (a) Disclose cash and cash equivalent
balances not available for use by the group
together with a commentary by
management.
PAS 7.49 Note: There are various circumstances in
which cash and cash equivalent balances held
by an entity are not available for use by the
group. Examples include cash and cash
equivalent balances held by a subsidiary that
operates in a country where exchange
controls or other legal restrictions apply when
the balances are not available for general use
by the parent or other subsidiaries.
3 Trade and other receivables
PAS 3 Trade and other receivables
1.54(h)
PAS 1.78 (a) Receivables should be disclosed in
a manner appropriate to the entity's
operation, with the following specific
disclosures:

SRC Rule i trade receivables (customers);

68.1
(Annex
68.1-K
(1A.i));
PAS
1.78(b)
ii receivables from subsidiaries (in stand-
alone accounts);
SRC Rule iii FOR PUBLIC COMPANIES:
68.1 receivables from related parties (also
(Annex refer to definition under par.
68.1-K (1)(b)(viii) of Rule 68);
(1A.ii));
PAS
1.78(b)
SRC Rule iv other receivables; and
68.1
(Annex
68.1-K
(1A.iii));
PAS
1.78(b)
PAS v prepayments.
1.78(b)
SRC Rule (b) FOR PUBLIC COMPANIES: If
68.1 significant in amount, other
(Annex receivables should be segregated by
68.1-K type, otherwise, they may be
(1A.iii)) grouped in one figure captioned as
"Accounts Receivables - Others", or
other equivalent title.
SRC Rule (c) FOR PUBLIC COMPANIES:
68.1 Disclose the following amounts
(Annex recognized during the period:
68.1-K
(1.B))
i allowance for impairment;
(Note 4)
ii reversal of allowances for
impairment;
iii portion of impairment or
reversal pertaining to related
parties.
PAS 1.61 (d) Where any of the above items
combine current and non-current
amounts, disclose the amount of the
non-current portion, which is
expected to be recovered or settled
after more than 12 months
PFRS (e) Disclose impairment losses recognized

7.20a(iv) during the period on receivables.

PFRS (f) Disclose impairment losses recognized
7.20e during the period on receivables.
PAS (g) Disclose gross amount due from
11.42(a); customers for construction contract
11.43 work.
_________________________
(Note 4) If none, please state so.
4 Inventories
PAS 4 Inventories
1.54(g)
Disclose:
PAS (a) The accounting policies adopted in
2.36(a) measuring inventories, including the cost
formula used.
PAS (b) Disclose the carrying amount of
2.36(b) inventories in total.
Inventories,sub-classified by main
categories appropriate to the entity.
PAS For example:
1.78(c); - merchandise;
PAS 2.37 - production supplies;
- raw materials;
- work in progress; and
- finished goods.
PAS (c) The carrying amount of inventories
2.36(c) carried at fair value less costs to
sell.
Note: Disclosure of the provision
for obsolete or slow-moving
inventories does not alter the need
to disclose inventories at net
realizable value.
Present separately inventories

carried at cost and net realizable
value.
PAS (d) The amount of, and circumstances

2.36(f) or events leading to, reversal of
and (g) write-downs of inventories that is
recognized as a reduction in the
amount of inventories recognized as
expense in the period (arising from
increase in net realizable value)
recognized as income.
PAS (e) The carrying amount and nature

2.36(h)/S (underlined words supplied) of

EC inventories pledged as security for
required liabilities.
disclosure
PAS 11.41; (f) For Construction Contracts,
11.44 disclose deduction of progress
payments and advances from
related construction work in
progress.
(g) Disclose:
PAS i the amount of inventories
2.36(d) recognized as an expense during the
period, which is often referred to as
cost of sales;
PAS ii the amount of any write-down of
2.36(e) inventories recognized as an
expense in the period in accordance
with paragraph 34 of PAS 2, and;
PAS 2.39 iii the operating costs together with
the amount of the net change in
inventories, applicable to revenues,
recognized as an expense during the
period, classified by their nature.
SEC (h) Disclose declines subsequent to
checklist; reporting date in market prices of
SRC Rule inventory not protected by firm sales
68.1 contracts.
(Annex
68.1-K.2)
SEC (i) Changes in pricing methods and the
checklist; effects thereof.
SRC Rule
68.1
(Annex
68.1-K.2)
SEC (j) Unusual purchase commitments and
checklist; accrued net losses, if any, on such
SRC Rule commitments. (Note: Losses which are
68.1 expected to arise from firm and
(Annex uncancellable commitments for the
68.1-K.2) future purchase of inventory items
should, if material, be recognized in the
accounts and separately disclosed in the
income statement.)
SEC (k) The amount of any substantial and
checklist; unusual write-downs.
SRC Rule
68.1
(Annex
68.1-K.2)
PAS 1.61 (l) Where any of the above items combine

current and non-current amounts,

disclose the amount of the non-current
portion, which is expected to be
recovered or settled after more than 12
months (see PAS 1.59).
5 Other current assets

5 Other current assets
SRC Rule (a) FOR PUBLIC COMPANIES: State
68.1 separately any amount in excess of five
(Annex percent (5%) of total current assets.
68.1-K.3) The remaining items may be shown in
one amount.
6 Property, plant and equipment

PAS 6 Property, plant and equipment
1.54(a)
PAS 17.32; The disclosure requirements of PAS 16,
17.57 Property, Plant and Equipment (PPE)
apply both to owned assets and also to the
amounts of leased assets held under finance
leases in the lessee's accounts, disclose:
PAS (a) For each class of PPE, the gross carrying
16.73(d), amount and the accumulated
1.78(a) depreciation (including accumulated
impairment losses) at the beginning and
end of the period presented.
PAS (b) A reconciliation of the carrying amount
16.73(e) in respect of each class of PPE at the
beginning and end of the period
showing:
i additions;
ii assets classified as held for sale or
included in a disposal group
accordance with PFRS 5 and other
disposals;
iii acquisitions through business
combinations;
iv increases or decreases during the
period resulting from revaluations
and from impairment losses
recognized or reversed directly in
other comprehensive income
under PAS 36;
v impairment losses recognized in
income or loss during the period
in accordance with PAS 36;
vi impairment losses reversed in
in accordance with PAS 36;

PAS 16.78
NOTE: In accordance with PAS 36, an
entity discloses information on
impaired property, plant and
equipment in addition to the
information required by paragraph
73(e)(iv)-(vi).
vii depreciation;
viii the net exchange differences
arising on the translation of the
financial statements from the
functional currency into a
different presentation currency,
including the translation of a
foreign operation into the
presentation currency of the
reporting entity; and
PAS 1.41 ix transfers between class of PPE
(e.g. from PPE under
construction to land and
buildings); and
x other movements.
PAS 16.76 (c) The nature and effect of a change in
an accounting estimate that has an
effect in the current period or is
expected to have an effect in
subsequent periods in accordance
with PAS 8. For property, plant and
equipment, such disclosure may arise
from changes in estimates with
respect to:
i residual values;
ii the estimated costs of dismantling,
removing or restoring items of
property, plant and equipment;
iii useful lives; and
iv depreciation methods.
(d) For PPE stated at revalued amounts:
SEC i basis used to revalue assets;
Checklist
PAS i effective date of revaluation;
16.77(a)
PAS ii whether an independent
16.77(b) valuer was involved;
PAS iii the methods and significant
16.77(c) assumptions applied in estimating the
items' fair values;
PAS iv the extent to which the items'
16.77(d) fair values were determined
directly by reference to
observable prices in active

market or recent market

transactions on arm's length
terms, or the extent to which
they were estimated using
other valuation techniques;
and
PAS v the carrying amount of each
16.77(e) class of PPE that would have
been included in the financial
statements had the assets
been carried under the cost
model.
PAS (e) The existence, amounts and nature
16.74(a)/S (underlined words supplied) of PPE
EC whose title is restricted.
required
disclosure
PAS (f) The amounts and nature
16.74(a)/S (underlined words supplied) of
EC property, plant and equipment
required pledged as security for liabilities.
disclosure
PAS (g) The amount of expenditures on
16.74(b) account of PPE in the course of
construction.
PAS (h) The amount of contractual
16.74(c) commitments for acquisition of
PPE.
PAS (i) If it is not disclosed separately on
16.74(d) the face of the income statement,
disclose the amount of
compensation from third parties
for items of PPE that were
impaired, lost or given up and
that is included in income or loss.
PAS (j) Borrowing costs, disclose;
23.26(a)
and (b)
i the amount of borrowing costs
capitalized during the period; and
ii the capitalization rate used to
determine the amount of
borrowing costs eligible for
capitalization.
PAS (k) For each class of asset held under finance
17.31(a) leases, the net carrying amount.
dv; PAS (l) Entities are encouraged to disclose the
16.79 following:
i the carrying amount of temporarily
idle PPE;
ii the gross carrying amount of any fully

depreciated PPE that is still in use;

iii the carrying amount of PPE retired
from active use and held for disposal;
iv when PPE is carried at cost less
depreciation, the fair value of PPE if
this is materially different from the
carrying amount.
PAS 16.67 Note: An item of property, plant and
equipment should be ELIMINATED from
the statement of financial position on:
a) DISPOSAL, or
b) when the asset is PERMANENTLY
withdrawn from use and no future
economic benefits are expected from
its disposal.
PAS 16.67 (m)Disclose the methods adopted and the

estimated useful lives or depreciation
rates selected by management.
7 Investment property
PAS 7 Investment property
1.54(b)
PAS (a) For investment properties, disclose the
40.75(a), following information:
(b) and (c)
i whether it applies the fair value model or
the cost model.
ii if it applies the fair value model,
whether, and in what circumstances,
property interests held under operating
leases are classified and accounted for as
investment property.
iii when classification is difficult (see
paragraph 14 of PAS 40), the criteria it
uses to distinguish investment property
from owner-occupied property and from
property held for sale in the ordinary
course of business.
PAS (b) Disclose the methods and significant
40.75(d) assumptions applied in determining the fair
value of investment property, including a
statement whether the determination of fair
value was supported by market evidence or
was more heavily based on other factors
(which the entity should disclose) because of
the nature of the property and lack of
comparable market data.
PAS (c) Whether the entity applies the fair value
40.76; model or cost model, provide a
40.79(d) reconciliation of the carrying amount of

investment property at the beginning and

end of each period presented showing the
following:
i additions, disclosing separately those
additions resulting from acquisitions and
those resulting from subsequent
expenditure recognized in the carrying
amount of the asset;
ii additions resulting from acquisitions
through business combinations;
iii assets classified as held for sale or
included in a disposal group classified as
held for sale in accordance with PFRS 5
and other disposals;
iv depreciation;
v the amount of impairment losses
recognized, and the amount of
impairment losses reversed, during the
period in accordance with IAS 36;
vi net gains or losses from fair value
adjustments (where the fair value model
in PAS 40 is used);
vii net exchange differences arising on the
translation of the financial statements into
a different presentation currency and on
translation of a foreign operation into the
presentation currency of the reporting
entity;
viii transfers to and from:
-inventories; and
-owner-occupied property; and
ix other movements/changes.
PAS (d) Disclose the extent to which the fair value of
40.75(e) investment property (as measured or
disclosed in the financial statements) is
based on a valuation by an independent
valuer who holds a recognised and relevant
professional qualification and has recent
experience in the location and category of the
investment property being value.
If there has been no valuation by an

independent professionally qualified valuer,
disclose that fact.
PAS 40.78 (e) If the fair value model is used, but certain
investment properties are carried under the
PAS 16 cost model because of the lack of a
reliable fair value, provide:
i a description of the investment property;
ii an explanation of why fair value cannot
be reliably measured;

iii the range of estimates within which fair

value is highly likely to lie; and
iv if the entity disposes of investment
property whose fair value previously
could not be measured reliably, disclose:
(1) that the entity has disposed of the
investment property not carried at
fair value;
(2) the carrying amount of that
investment property at the time of
sale; and
(3) the gain or loss on disposal.
PAS (f) Disclose the existence, amounts and nature
40.75(g) (underlined word supplied) of restrictions on
the realizability of investment property or the
remittance of income and proceeds of
disposal.
PAS (g) Disclose the amounts recognized in profit or
40.75(f) loss for:
i rental income from investment property;
ii direct operating expenses (including
repairs and maintenance) arising from
investment property that generated
rental income during the period; and
iii direct operating expenses (including
repairs and maintenance) arising from
investment property that did not
generate rental income during the period.
PAS iv the cumulative change in fair value
40.32C recognized in profit or loss on a sale of
investment property from a pool of assets
in which the cost model is used into a
pool in which the fair value model is
used.
PAS (h) Disclose contractual obligations to
40.75(h) purchase, construct or develop investment
property or for repairs, maintenance or
enhancements.
(i) If the cost model is used, disclose:
PAS i depreciation methods used;
40.79(a)
PAS ii the useful lives or the depreciation rates
40.79(b) used; and
PAS iii the gross carrying amount and the
40.79(c) accumulated depreciation:
(1) at the beginning of the period
(2) at the end of the period.
PAS iv a reconciliation of the carrying amount at
40.79(d) the beginning and end of the period of:
(1) depreciation;

(2) the amount of impairment losses

recognised, and the amount of
impairment losses reversed, during the
period in accordance with PAS 36;
(3) the net exchange differences arising
on the translation of the financial
statements into a different presentation
currency, and on translation of a foreign
operation into the presentation currency
of the reporting entity; and
PAS v the fair value of investment property.
40.79(e) When an entity cannot reliably determine
the fair value of the investment property,
disclose:
(1) a description of the investment
property;
(2) an explanation of why fair value
cannot be reliably measured;
(3) the range of estimates within which
fair value is highly likely to lie.
PAS 40.77 (j) When the valuation obtained for investment
property is adjusted significantly for the
purpose of the financial statements (for
example, to avoid double-counting of assets
or liabilities that are recognized as separate
assets and liabilities as described in
paragraph 50 of PAS 40), disclose:
i a reconciliation between the valuation
obtained and the adjusted valuation
included in the financial statements,
ii separately, in the reconciliation:
(1) the aggregate amount of any
recognized lease obligations that have
been added back; and
(2) any other significant adjustments.
(k)Transitional Provisions:
PAS 40.80 Fair value model
i An entity that has previously applied PAS
40 and elects for the first time to classify
and account for some or all eligible
property interests held under operating
leases as investment property should
recognize the effect of that election as an
adjustment to the opening balance of
retained earnings for the period in which
the election is first made. In addition:
PAS (1) if the entity has previously disclosed
40.80(a) publicly (in financial statements or
otherwise) the fair value of those
property interests in earlier periods
(determined on a basis that satisfies

the definition of fair value in

paragraph 5 and the guidance in
paragraphs 36–52), the entity is
encouraged, but not required:
(1.a)to adjust the opening balance of
retained earnings for the earliest
period presented for which such
fair value was disclosed publicly;
and
(1.b)to restate comparative
information for those periods;
and
PAS (2) if the entity has not previously
40.80(b) disclosed publicly the information
described in (a), it should not restate
comparative information and should
disclose that fact.
PAS ii When an entity first applies this
40.82;83 Standard, the adjustment to the opening
balance of retained earnings includes the
reclassification of any amount held in
revaluation surplus for investment
property.
PAS 40.84 Cost model
ii The requirements of paragraphs 27 to 29 of
PAS 40 regarding the initial measurement
of an investment property acquired in an
exchange of assets transaction should be
applied prospectively only to future
transactions.
8 Investments accounted for using the equity method

PAS 1. 8 Investments accounted for using the
54(e) equity method
PAS 28.1 An entity holding an investment in an associate
that is measured at fair value through profit or
loss in accordance with PAS 39 discloses the
information required by paragraph 37(f) PAS
28.
PAS 28.38 (a) Associates accounted for using the
equity method: disclose as a separate
item under non-current assets.
PAS 28.38 (b) Disclose the investor's share of the
income or loss of associate and the
carrying amount of those investments.
PAS 28.38 (c) Disclose separately the investor's share of
any discontinued operations of
associates.
PAS (d) Disclose if the Investment in Associates
28.23/SEC account include goodwill (less
checklist accumulated impairment) on the

acquisition of the investment in the

associate.
PAS 28.37 (e) The following disclosures should be
made:
i the fair value of investments in
associates (individually) for which
there are published price quotations;
ii summarized financial information of
associates (individually for each
significant associate), including the
aggregated amounts of assets,
liabilities, revenues and income or
loss;
iii the reasons why the presumption
that an investor has significant
influence is overcome if the investor
holds, directly or indirectly through
subsidiaries, less than 20% of the
voting or potential voting power of
the investee but concludes that it has
significant influence;
iv the reasons why the presumption that
an investor has significant influence
is overcome if the investor holds,
directly or indirectly through
subsidiaries, 20% or more of the
voting or potential voting power of
the investee but concludes that it does
not have significant influence;
v the end of reporting date period of an
associate's financial statements, when
such financial statements are used in
applying the equity method and are as
of a date or for a period that is
different from that of the investor,
and the reason for using a different
date or different period;
vi the nature and extent of any
significant restrictions (for example,
resulting from borrowing
arrangements or regulatory
requirements) on associates' ability to
transfer funds to the investor in the
form of cash dividends, or repayment
of loans or advances;
vii If an investor discontinues
recognition of its share of losses of an
associate, disclose the share of losses
of the associates during the period
and cumulatively;
viii The fact that an associate is not

accounted for using the equity

method, in accordance with
paragraph 13 of PAS 28; and
ix Summarized financial information of
associates, either individually or in
groups, that are not accounted for
using the equity method, including
the amounts of total assets, total
liabilities, revenues and income or
loss.
SEC (f) Although not required by PAS 28, it is
checklist useful to disclose the reconciliation of
movements in the investment in
associates during the period.
PAS 28.39 (g) The investor's share of changes
recognized directly in the associate's
other comprehensive income should be
recognized directly in other
comprehensive income by the investor
and should be disclosed in the statement
of changes in equity, as required by PAS
1.
PAS 28.40 (h) In accordance with PAS 37, disclose:
i the investor's share of an associate's
contingent liabilities incurred jointly
with other investors; and
ii those contingent liabilities that arise
because the investor is liable for all or
part of the liabilities of the associate.
9 Joint ventures
9 Joint ventures
PAS 31.56 (a) Disclose a listing and description of
interests in significant joint ventures and
the proportion of ownership interest held
in jointly controlled entities using the
line-by-line reporting format for
proportionate consolidation, or the equity
method.
PAS 31.56 (b) Disclose the aggregate amount of each of
the following items related to the entity’s
interests in jointly controlled entities.
i current assets;
ii long-term assets;
iii current liabilities;
iv long-term liabilities;
v income (e.g., total of revenue and
other operating income); and
vi expenses (e.g., total of operating
expenses, and net interest expense).
PAS 31.54 (c) Disclose separately from other contingent

liabilities unless the probability of loss is

remote:
i any contingent liabilities that the
venturer has incurred in relation to its
interest in joint ventures and its share
in each of the contingent liabilities
which have been incurred jointly with
other venturers;
ii its share of the contingent liabilities of
the joint ventures themselves for which
it is contingently liable; and
iii those contingent liabilities that arise
because the venturer is contingently
liable for the liabilities of the other
venturers of a joint venture.
PAS 31.55 (d) Disclose separately from other
commitments the aggregate of:
i any capital commitments of the
venturer in relation to its interests in
joint ventures and its share in the
capital commitments that have been
incurred jointly with other venturers;
and
ii its share of the capital commitments of
the joint ventures themselves.
PAS 31.57 (e) Disclose the method the venturer uses to
recognize its interest in jointly controlled
entities.
PAS 31.1 (f) An entity holding an interest in a joint
venture that is measured at fair value
through profit or loss in accordance with
PAS 39 discloses the information required
by paragraphs 55 and 56 of PAS 31.
10 Intangible assets
PAS 10 Intangible assets
1.54(c)
PAS (a) Initial Recognition and
38.18-24 Measurement - Recognize initially, at
cost, if, and only if:
i the asset meets the definition of an
intangible asset (particularly, there
should be an identifiable asset that is
controlled and clearly distinguishable
from an entity’s goodwill)
ii it is probable that the future
economic benefits that are
attributable to the asset will flow to
the entity; and
iii the cost of the asset can be measured
reliably. This requirement applies

whether an intangible asset is

acquired externally or generated
internally. Additional recognition
criteria for internally generated
intangible assets are also provided.
PAS (b) Recognition as an Expense
38.68-71
i An intangible item that does not meet
both the definition and recognition
criteria of an intangible asset should be
expensed when incurred.
ii However, if the item is acquired in a
business combination that is an
acquisition, this expenditure (included
in the cost of acquisition) should form
part of the amount attributed to
goodwill (negative goodwill) at the date
of acquisition.
iii Expenditures on research, start-up
costs, training costs, advertising costs
and relocation or reorganization costs
should be expensed when incurred.
However, some development
expenditures may result in the
recognition of an intangible asset (for
example, some internally developed
computer software) if certain
conditions are met.
iv Internally generated goodwill, brands,
mastheads, publishing titles, customer
lists and items similar in substance
should not be recognized as intangible
assets.
PAS (c) In accordance with PAS 36 Impairment of
38.108 Assets, an entity is required to test an
intangible asset with an indefinite useful
life for impairment by comparing its
recoverable amount with its carrying
amount:
i. annually or
ii. whenever there is an indication that the
intangible assets may be impaired.
PAS (d) An intangible asset should be derecognized
38.112 (eliminated from the statement of financial
position on disposal or when no future
economic benefits are expected from its use
and subsequent disposal.
PAS (e) Gains or losses arising from the
38.113 derecognition of an intangible asset should
be determined as the difference between
the net disposal proceeds, if any, and the

carrying amount of the asset and it shall be

recognized in profit or loss when the asset
is derecognized (unless PAS 17 Leases
requires otherwise on a sale and leaseback
transaction). Gains should not be classified
as revenue.
Disclosures:
PAS The disclosure requirements of PAS 38 apply
17.32,57 to owned intangible assets and to the amounts
of leased intangible assets held under financial
leases in the lessee's accounts.
PAS 1 Disclose the following for each class of
38.118 intangible assets, distinguishing between
internally generated intangible assets and
other intangible assets:
(a) Whether the useful lives are indefinite
or finite, and if finite, the useful lives or
the amortization rates used;
(b) The amortization methods used for
intangible assets with finite useful lives;
(c) The gross carrying amount and the
accumulated amortization (aggregated
with accumulated impairment losses) at
the beginning and end of the period;
(d) The line item(s) of the income
statement in which the amortization of
intangible assets is included;
(e) A reconciliation of the carrying amount
at the beginning and end of the period
showing:
(i) Additions, indicating separately
those from internal development,
those acquired separately, and
those acquired through business
combinations;
(ii) Assets classified as held for sale
or included in a disposal group
accordance with PFRS 5 and other
disposals;
PAS (iii) Increases or decreases during the
36.65; period resulting from revaluations
36.77-78; under paragraphs 75, 85 and 86
36.126-133 of PAS 38 and from impairment
losses recognized or reversed
directly in other comprehensive
income under PAS 36,
Impairment of Assets (if any);
(iv) Impairment losses recognized in
under PAS 36 (if any);

(v)
Impairment losses reversed in
in accordance with PAS 36 (if
any);
(vi) Amortization recognized during
the period;
(vii) Net exchange differences arising
on the translation of the financial
statements into the presentation
currency, and on the translation
of a foreign operation into the
presentation currency of the
entity; and
(viii) Other changes in the carrying
amount during the period.
PAS 2 A class of intangible assets is a grouping of
38.119 assets of a similar nature and used in an
entity’s operations. Examples of separate
classes may include:
(a) Brand names;
(b) Mastheads and publishing titles;
(c) Computer software;
(d) Licenses and franchises;
(e) Copyrights, patents and other industrial
property rights, service and operating
rights;
(f) Recipes, formulae, models, designs and
prototypes; and
(g) Intangible assets under development.
The classes mentioned above are
disaggregated (aggregated) into smaller
(larger) classes if this results in more relevant
information for the users of the financial
statements
PAS 3 An entity discloses information on
38.120; impaired intangible assets under PAS 36 in
36.126-133 addition to the information required by
paragraph 118(e)(iii) to (v) of PAS 38.
PAS 4 An entity discloses the nature and effect of
38.121; a change in an accounting estimate that has
8.32-40 a material effect in the current period or
that is expected to have a material effect in
subsequent periods. Such disclosure may
arise from changes in:
(a) The assessment of an intangible asset's
useful life;
(b) The amortization method; or
(c) Residual values.
PAS 5 Disclose also:
38.122

PAS (a) For an intangible asset assessed as having

38.122(a) an indefinite useful life, the carrying
amount of that asset and the reasons
supporting the assessment of an
indefinite useful life. In giving these
reasons, describe the factor(s) that played
a significant role in determining that the
asset has an indefinite useful life.;
PAS (b) A description, the carrying amount and
38.122(b) remaining amortization period of any
individual intangible asset that is
material to the entity's financial
statements;
PAS (c) For intangible assets acquired by way of a
38.122(c) government grant and initially
recognized at fair value (see paragraph 44
of PAS 38):
(i) The fair value initially recognized for
these assets;
(ii) Their carrying amount; and
(iii)Whether they are measured after
recognition under the cost model or
the revaluation model;
PAS (d) The existence, carrying amounts and
38.122(d); nature (underlined and italicized words
SEC supplied)of intangible assets whose title
required is restricted and the carrying amounts
disclosure and nature (underlined words
supplied)of intangible assets pledged as
security for liabilities; and
PAS (e) The amount of contractual commitments
38.122(e) for the acquisition of intangible assets.
PAS 6 When an entity describes the factor(s) that
38.123 played a significant role in determining the
useful life of an intangible asset that is
amortized over more than twenty years is
indefinite, the entity considers the list of
factors in paragraph 90 of PAS 38.
Intangible Assets Measured after
Recognition using the Revaluation
Model
PAS 7 If intangible assets are carried at revalued
38.124 amounts, the following should be disclosed:
(a) By class of intangible assets:
(i) The effective date of the revaluation;
(ii) The carrying amount of revalued
intangible assets; and
(iii)The carrying amount that would have
been recognized had the revalued
class of intangible assets been
measured after recognition using the

cost model in paragraph 74 of PAS

38;
(b) The amount of the revaluation surplus
that relates to intangible assets at the
beginning and end of the period,
indicating the changes during the period
and any restrictions on the distribution of
the balance to shareholders; and
(c) The methods and significant
assumptions applied in estimating the
asset's fair values.
PAS 8 It may be necessary to aggregate the classes
38.125 of revalued assets into larger classes for
disclosure purposes. However, classes are
not aggregated if this would result in the
combination of a class of intangible assets
that includes amounts measured under
both the cost and revaluation models.
Other Information
dv PAS 9 An entity is encouraged, but not required,
38.128 to disclose the following information:
(a) A description of any fully amortized
intangible asset that is still in use; and
(b) A brief description of significant
intangible assets controlled by the
entity but not recognized as assets
because they did not meet the
recognition criteria in this Standard or
because they were acquired or
generated before this Standard became
effective.
PFRS 6.25 10 An entity should treat exploration and
evaluation assets as a separate class of
assets and make the disclosures required
by:
(a) PAS 38 if they are classified as
intangible assets, or
(b) PAS 16 if they are classified as property,
plant and equipment.
SRC Rule 11 A separate disclosure for each major class
68.1 of intangible assets, such as goodwill,
(Annex franchises, patents, copyrights, licenses,
68.1-K.6) secret processes, subscription lists, non-
competition agreements, and trademarks
(if material in amount). These can be
shown under a separate caption following
property, plant and equipment in the non-
current section of the statement of financial
position or under Other Assets.
Disclose the basis of determining their

respective amounts.
11 Contingent assets
11 Contingent assets
PAS 37. (a) Contingent assets are not recognized but
21, 31, 34 disclosure is required when an inflow of
economic benefits is probable.
PAS 37.89 (b) Disclose for contingent assets, where an
inflow of economic benefits is probable:
i a brief description of the nature of the
contingent assets at the end of the
reporting period; and
ii where practicable, disclose also an
estimate of their financial effect,
measured using the principles set out
for provisions in paragraphs 36-52 of
PAS 37; and
PAS 37.90 Note: It is important that disclosures
for contingent assets avoid giving
misleading indications of the
likelihood of income arising.
PAS 37.91 iii where this information is not disclosed
because it is not practicable to do so,
disclose that fact.
PAS 37.92 (c) In extremely rare cases, disclosure of some
or all of the information required by
paragraphs 84-89 of PAS 37 can be
expected to prejudice seriously the
position of the entity in a dispute with
other parties on the subject matter of the
provision, contingent liability or
contingent asset. In such cases, an entity
need not disclose the information, but
should disclose the general nature of the
dispute, together with the fact that, and
reason why, the information has not been
disclosed.
12 Other assets
12 Other assets
PAS 11.44 (a) Costs incurred and recognized profits
less recognized losses to date on long-
term construction contracts in
progress at the end of the reporting
period.
SRC Rule (b) FOR PUBLIC COMPANIES: State
68.1 separately any item which is in excess
(Annex of five per cent (5%) of total assets.
68.1-K.3)
13 Impairment of assets

13 Impairment of assets
PAS 17.32, The disclosure requirements of PAS 36 apply
57 to owned assets and to the amounts of leased
assets held under finance leases in the
lessee's accounts.
PAS (a) Disclose the following for each class of
36.126 assets:
i the amount of impairment losses
recognized in income or loss during
the period and the line item(s) of the
income statement in which those
impairment losses are included.
ii the amount of reversals of
impairment losses recognized in
income or loss during the period and
the line item(s) of the income
statement in which those impairment
losses are reversed.
iii the amount of impairment losses on
revalued assets recognized directly in
other comprehensive income during
the period.
iv the amount of reversals of
impairment losses on revalued assets
recognized directly in other
comprehensive income during the
period.
PAS (b) If an impairment loss for an individual
36.130 asset (or cash-generating unit)
recognized or reversed during the period
is material to the financial statements of
the reporting entity as a whole, disclose:
i the events and circumstances that led
to the recognition or reversal of the
impairment loss;
ii the amount of the impairment loss
recognized or reversed;
iii for an individual asset:
(1) the nature of the asset; and
(2) the segment information in
accordance with PFRS 8, the
reportable segment to which the
asset belongs (based on primary
format);
iv for a cash-generating unit:
(1) a description of the cash
generating unit (such as whether
it is a product line, a plant, a
business operation, a
geographical area, a reportable
segment or as defined in PAS 14);

(2) the amount of the impairment

loss recognized or reversed:
- by class of assets; and
- by reportable segment if the
entity reports segment
information in accordance
with PFRS 8; and
(3) The current and former way of
aggregating assets and the
reasons for changing the way the
cash-generating unit is identified,
if the aggregation of assets for
identifying the cash-generating
unit has changed since the
previous estimate of the cash-
generating unit's recoverable
amount.
v whether the recoverable amount of
the asset is its fair value less costs to
sell or its value in use;
vi the basis used to determine fair value
less costs to sell (e.g., whether it was
determined by reference to an active
market or in some other way) if
recoverable amount is fair value less
costs to sell, ; and
vii the discount rates used in the current
estimate and previous estimate (if
any) of value in use, if recoverable
amount is value in use.
PAS (c) Disclose the following information for the
36.131 aggregate impairment losses and the
aggregate reversals of impairment losses
recognized during the period for which no
information is disclosed under paragraph
130 of PAS 36 [(b) above]:
i the main classes of assets affected by
impairment losses (or reversals of
impairment losses); and
ii the main events and circumstances that
led to the recognition (reversal) of these
impairment losses.
PAS (d) If any portion of the goodwill acquired in a
36.133 business combination during the reporting
period has not been allocated to a cash-
generating unit at the reporting date,
disclose the amount of the unallocated
goodwill, together with the reasons why
that amount remains unallocated.
PAS (e) An entity should disclose the information
36.134 required by items i-vi below for each cash-

generating unit (group of CGUs) for which

the carrying amount of goodwill or
intangible assets with indefinite useful lives
allocated to that unit (group of CGUs) is
significant in comparison with the entity's
total carrying amount of goodwill or
intangible assets with indefinite useful
lives:
i the carrying amount of goodwill
allocated to the unit (group of CGUs).
ii the carrying amount of intangible assets
with indefinite useful lives allocated to
the unit (group of CGUs).
iii the basis on which the unit's (group of
CGUs') recoverable amount has been
determined (i.e. value in use or fair
value less cost to sell).
iv if the unit's (group of CGUs')
recoverable amount is based on value in
use:
(1) a description of each key
assumption on which management
has based its cash flow projections
for the period covered by the most
recent budgets/forecasts. Key
assumptions are those to which the
unit's (group of CGUs') recoverable
amount is (are) most sensitive.
(2) a description of management's
approach to determining the
value(s) assigned to each key
assumption, whether those value(s)
reflect past experience and/or, if
appropriate, are consistent with
external sources of information; if
not, how and why they differ from
past experience of external sources
of information.
(3) the period over which management
has projected cash flows based on
financial budgets/forecasts
approved by management and,
when a period greater than five
years is used for a cash-generating
unit (group of CGUs), an
explanation of why that longer
period is justified.
(4) the growth rate used to extrapolate
cash flow projections beyond the
period covered by the most recent
budgets/forecasts, and the

justification for using any growth

rate that exceeds the long-term
average growth rate for the
products, industries, or country or
countries in which the entity
operates, or for the market to which
the unit (group of CGUs) is
dedicated.
(5) the discount rate(s) applied to the
cash flow projections.
v The methodology used to determine fair
value less costs to sell if the unit’s
(group of CGUs’) recoverable amount is
based on fair value less costs to sell. If
fair value less costs to sell is not
determined using an observable market
price for the unit (group of CGUs), the
following information should also be
disclosed:
(1) a description of each key
assumption on which management
has based its determination of fair
value less costs to sell. Key
assumptions are those to which the
unit’s (group of CGUs’) recoverable
amount is most sensitive; and
(2) a description of management’s
approach to determining the
value(s) assigned to each key
assumption, whether those value(s)
reflect past experience and/or, if
appropriate, are consistent with
external sources of information,
and, if not, how and why they differ
from past experience and/or
external sources of information.
If fair value less costs to sell is
determined using discounted cash flow
projections, the following information
shall also be disclosed:
(3) the period over which management
has projected cash flows.;
(4) the growth rate used to extrapolate
cash flow projections; and
(5) the discount rate applied to the
cash flow projections.
vi if a reasonably possible change in a key
assumption on which management has
based its determination of the unit’s
(group of CGUs’) recoverable amount
would cause the unit’s (group of CGUs’)

carrying amount to exceed its

recoverable amount:
(1) the amount by which the unit’s
(group of CGUs’) recoverable
amount exceeds its carrying
amount;
(2) the value assigned to the key
assumption; and
(3) the amount by which the value
assigned to the key assumption
must change, after incorporating
any consequential effects of that
change on the other variables used
to measure recoverable amount, in
order for the unit’s (group of CGUs’)
recoverable amount to be equal to
its carrying amount.
PAS (f) If some or all of the carrying amount of
36.135 goodwill or intangible assets with indefinite
useful lives is allocated across multiple
cash-generating units (groups of CGUs),
and the amount so allocated to each unit
(group of CGUs) is not individually
significant in comparison with the entity’s
total carrying amount of goodwill or
lives, that fact should be disclosed, together
with the aggregate carrying amount of
goodwill or intangible assets with indefinite
useful lives allocated to those units (groups
of CGUs).
PAS (g) If the recoverable amounts of any of those
36.135 units (groups of CGUs) are based on the
same key assumption(s) and the aggregate
carrying amount of goodwill or intangible
assets with indefinite useful lives allocated
to them is significant in comparison with
the entity’s total carrying amount of
goodwill or intangible assets with indefinite
useful lives, an entity should disclose that
fact, together with:
i the aggregate carrying amount of
goodwill allocated to those units
(groups of CGUs).
ii the aggregate carrying amount of
lives allocated to those units (groups of
CGUs).
iii a description of the key assumption(s).
iv a description of management’s
approach to determining the value(s)

assigned to the key assumption(s),

whether those value(s) reflect past
experience and/or, if appropriate, are
consistent with external sources of
information; if not, how and why they
differ from past experience or external
sources of information.
v if a reasonably possible change in the
key assumption(s) would cause the
units’ (groups of CGUs’) carrying
amounts to exceed its recoverable
amounts:
(1) the amount by which the aggregate
of the units (groups of CGUs’)
recoverable amounts exceeds the
aggregate of their carrying amounts.
(2) the value(s) assigned to the key
assumption(s).
(3) the amount by which the value(s)
assigned to the key assumption(s)
must change, after incorporating
any consequential effects of the
change on the other variables used
to measure recoverable amount, in
order for the aggregate of the units’
(groups of CGUs’) recoverable
amounts to be equal to the
aggregate of their carrying amounts.
PAS (h) If the most recent detailed calculation of
36.136 the recoverable amount of a CGU made in a
preceding period is carried forward and
used in the impairment test for that unit in
the current period, the information for the
CGU that is incorporated into the
disclosures required under paragraph 134-
135 of PAS 36 relate to the carried forward
calculation of recoverable amount.
Ao2c Liabilities
1 Current and non-current liabilities distinction
1 Current and non-current liabilities
distinction
PAS 1.69 (a) A liability should be classified as a
current liability when it:
PAS i Is expected to be settled in the
1.69(a) normal course of the entity's
operating cycle;
PAS ii Is held primarily for the purpose of
1.69(b) being traded;
PAS iii Due to be settled within twelve
1.69(c) months after the reporting period.

Terms of a liability that could, at the

option of the counterparty, result in
its settlement by the issue of equity
instruments do not affect its
classification.
PAS iv The entity does not have an
1.69(d) unconditional right to defer
settlement of the liability for at least
twelve months after the reporting
period.
PAS 1.69 (b) All other liabilities should be classified as
non-current liabilities.
2 Trade and other payables

2 Trade and other payables
PAS (a) Payables should be disclosed in a
1.54(k); manner appropriate to the entity's
1.78 operations with the following specific
disclosures:
SRC Rule i trade payables
68.1
(Annex
68.1-K
(8A.i))
SRC Rule ii payables to subsidiaries (in stand-
68.1 alone accounts)
(Annex
68.1-K
(8A.ii))
SRC Rule iii payables to related parties
68.1
(Annex
68.1-K
(8A.iii))
iv other payables
v accruals and
. vi deferred income
PAS 1.61 (b) Where any of the above items combine
current and non-current amounts,
disclose the amount of the non-current
portion, which is expected to be
recovered or settled after more than 12
months.
SRC Rule (c) FOR PUBLIC COMPANIES: Disclose
68.1 separately Advances from Directors,
(Annex officers, employees and principal
68.1-K stockholders and related parties of the
(8A.iii)) company or its related parties (exclude
from this item amounts from purchases
subject to usual trade items, from
ordinary travel expenses, and from other

items arising in the ordinary course of

business).
SRC Rule (d) FOR PUBLIC COMPANIES: Accruals
68.1 (show separately significant accruals for
(Annex payrolls, taxes other than income taxes,
68.1-K interest, and any other material items).
(8A.iv))
PAS (e) Disclose gross amount due to customers
11.42(b); for construction contract work
11.44
SRC Rule (f) FOR PUBLIC COMPANIES: Disclose
68.1 the following separately if amount is
(Annex material:
68.1-K.9)
i Dividends declared and not paid at
balance sheet date
ii Acceptances payable
iii Liabilities under trust receipts
iv Current portion of long-term debt
v Deferred income
vi Any other current liability in excess
of five per cent (5%) of total current
liabilities.
SRC Rule (g) FOR PUBLIC COMPANIES: Disclose
68.1 additional information regarding:
(Annex
68.1-
K.8B)
i any current liability guaranteed by
others;
ii assets pledged against secured
liabilities.
(h) Show secured liabilities separately from
unsecured liabilities.
3 Leases
3 Leases
PAS 17 Note: This section of the checklist applies
to Lessees. For Lessors, please refer
to Supplementary Checklist entitled
"Accounting by a Lessor".
SEC From the Standpoint of a Lessee -
Checklist Finance leases:
Disclose the following items:

PAS (a) For each class of asset, the net carrying
17.31(a) amount at the end of the reporting period;
PAS (b) a reconciliation between the total future

17.31(b) minimum lease payments at the end of the

reporting period, and their present value;

PAS (c) the total of future minimum lease
17.31(b) payments at the end of the reporting
period, and their present value, for each of
the following periods:
(i) not later than one year;
(ii) later than one year and not later than
five years; and
(iii)later than five years;
PAS (d) the amount of contingent rents recognized
17.31(c) as an expense for the period;
PAS (e) the total of future minimum sublease
17.31(d) payments expected to be received under
non-cancellable subleases at the end of the
reporting period; and
PAS (f) a general description of the lessee’s
17.31(e) significant leasing arrangements. This
would include, but is not limited to:
(i) the basis on which contingent rent
payments are determined;
(ii) the existence and terms of renewal or
purchase options and escalation
clauses; and
(iii) restrictions imposed by lease
arrangements, such as those
concerning dividends, additional debt,
and further leasing.
PAS 17.32 (g) The disclosure requirements of PAS 16
apply to amounts of leased assets under
finance leases that are accounted for by the
lessee as acquisitions of assets.
From the Standpoint of a Lessee -
Operating leases:
Disclose the following items:

PAS (a) the total of future minimum lease
17.35(a) payments under noncancellable operating
leases for each of the following periods:
(i) not later than one year;
(ii) later than one year and not later than
five years; and
(iii)later than five years.
PAS (b) the total of future minimum sublease
17.35(b) payments to be received under non-
cancellable subleases at the end of the
reporting period;
PAS (c) lease and sublease payments recognized in
17.35(c) the income statement for the period, with
separate amounts for minimum lease
payments, contingent rents and sublease
payments; and

PAS (d) a general description of the lessee’s

17.35(d) significant leasing arrangements. This
would include, but is not limited to:
(i) the basis on which contingent rent
payments are determined;
(ii) the existence and terms of renewal or
purchase options and escalation
clauses; and
(iii)restrictions imposed by lease
arrangements, such as those
concerning dividends, additional debt,
and further leasing.
PAS 17.65 (e) The disclosure requirements about leases
set out in paragraphs (a) and (c) above also
apply to sale and leaseback transactions.
Any unique or unusual provisions of the
agreements or terms of the sale and
leaseback transactions should be separately
disclosed.
IC/SIC (f) Certain special disclosures apply over the
27.10- 11 legal form of leases - Refer to IC/SIC 27.
Disclosures required in accordance with

IC/SIC 27:
All aspects of an arrangement that does

not, in substance, involve a lease under
PAS 17 should be considered in
determining the appropriate disclosures
that are necessary to understand the
arrangement and the accounting treatment
adopted. An entity should disclose the
following in each period that an
arrangement exists:
(1) a description of the arrangement
including:
(i) the underlying asset and any
restrictions on its use;
(ii) the life and other significant terms
of the arrangement;
(iii)the transactions that are linked
together, including any options; and
(2) the accounting treatment applied to any
fee received, the amount recognized as
income in the period, and the line item
of the income statement in which it is
included.
(g) The disclosures required above should be
provided individually for each arrangement
or in aggregate for each class of
arrangement. A class is a grouping of

arrangements with underlying assets of a

similar nature (e.g., power plants).
IFRIC (h) The disclosure requirements set out in
4.BC39 Section A2c.3 Liabilities - Leases also
apply to leases under IFRIC 4.
IFRIC (i) If a purchaser/lessee concludes that it is
4.15(b) impractical to separate the lease payments
in an operating lease reliably from other
payments, it should treat all payments
under the agreement as lease payments for
the purpose of complying with the
disclosures of PAS 17, but:
i disclose these payments separately from
minimum lease payments of other
arrangements that do not include
payments for non-lease elements, and
ii state that the disclosed payments also
include payments for non-lease
elements in the arrangement.
4 Income Taxes
4 Income taxes
PAS (a) Current income tax assets/liabilities
1.54(n) should be presented separately in the
statement of financial position. (See f
below)
PAS (b) Deferred tax assets/liabilities should be
1.54(o) presented separately in the statement of
financial position. (See f below)
PAS 1.56 (c) If a distinction between current and non-
current assets and liabilities is made on the
face of the statement of financial position,
deferred tax assets (liabilities) should be
classified as non-current assets (liabilities).
PAS 1.61 (d) Where any of the above items combine
current and non-current amounts, disclose
the amount of the non-current portion,
which is expected to be recovered or settled
after more than 12 month.
SEC (e) Deferred tax assets and tax liabilities
checklist relating to different jurisdiction should be
presented separately.
PAS 12.71 (f) Offsetting rules of current tax assets and
& 74 liabilities are covered by PAS 12.71 and for
the offsetting rules of deferred tax assets
and liabilities by PAS 12.74.
An entity should offset current tax assets

and current tax liabilities, if and only if
the entity:
(i) has a legally enforceable right to set

off the recognized amounts; and

(ii) intends either to settle on a net basis,
or to realize the asset and settle the
liabilities simultaneously.
An entity should offset deferred tax assets

and deferred tax liabilities, if and only if:
(i) the entity has a legally enforceable
right to set off current tax assets
against current tax liabilities; and
(ii) the deferred tax assets and the
deferred tax liabilities relate to income
taxes levied by the same taxation
authority on either:
(a) the same taxable entity; or
(b) different taxable entities which intend
either to settle current tax liabilities
and assets on a net basis, or to realise
the assets and settle the liabilities
simultaneously, in each future period
in which significant amounts of
deferred tax liabilities or assets are
expected to be settled or recovered.
PAS 12.81 (h) In respect of temporary differences,
disclose:
PAS i the amount (and expiry date, if any) of
12.81(e) deductible temporary differences,
unused tax losses, and unused tax
credits for which no deferred tax asset
is recognized in the statement of
financial position;
PAS ii the aggregate amount of temporary
12.81(f) differences associated with investments
in subsidiaries, branches and associates
and interests in joint ventures, for
which deferred tax liabilities have not
been recognized (see PAS 12.39);
PAS iii in respect of each type of temporary
12.81(g) difference, and in respect of each type
of unused tax losses and unused tax
credits, disclose:
1 the amount of the deferred tax
assets and liabilities recognized in
for each period presented; and
2 the amount of the deferred tax
income or expense recognized in
the income statement, if this is not
apparent from the changes in the
amounts recognized in the
statement of financial position (for

example, where there are deferred

tax items charged or credited to
other comprehensive incomeduring
the period).
Note: Although not required by PAS
12, it is a helpful ‘proof’ to display the
movements during the period in each
category of temporary differences in the
deferred tax account.
PAS (i) Disclose the amount of a deferred tax asset
12.82(a-b) and the nature of the evidence supporting
its recognition, when:
i the utilization of the deferred tax asset
is dependent on future taxable profits
in excess of the profits arising from the
reversal of existing taxable temporary
differences; and
ii the entity has suffered a loss in either
the current or preceding period in the
tax jurisdiction to which the deferred
tax asset relates.
PAS (j) Disclose the aggregate current and
12.81(a) deferred tax relating to items charged or
credited to other comprehensive income.
It is useful to disclose the analysis by
category of temporary differences.
PAS (k) Disclose the amount of income tax
12.81(i) consequences of dividends that were
proposed or declared after the end of the
statements were authorized for issue.
PAS (l) In the circumstances described in
12.82A paragraph 52A of PAS 12, an entity should
disclose:
i the nature of the potential income tax
consequences that would result from
the payment of dividends; and
ii the amounts of the potential income tax
consequences practically determinable
and whether there are any potential
income tax consequences not practically
determinable.
PAS (m) Disclose an explanation of the relationship
12.81(c) between tax expense (income) and
accounting profit in either or both of the
following forms:
(i) a numerical reconciliation between tax
expense (income) and the product of
accounting profit multiplied by the
applicable tax rate(s), disclosing also the
basis on which the applicable tax rate(s)

is (are) computed; or
(ii)a numerical reconciliation between the
average effective tax rate and the
applicable tax rate, disclosing also the
basis on which the applicable tax rate is
computed;
PAS (n) Disclose an explanation of changes in the
12.81(d) applicable tax rate(s) compared to the
previous accounting period.
PAS 12.88 (o) Disclose any tax-related contingent
liabilities and contingent assets in
accordance with PAS 37, Provisions,
Contingent Liabilities and Contingent
Assets.
PAS 12.88 (p) Disclose any significant effect of those
changes on its current and deferred tax
assets and liabilities where changes in tax
rates or tax laws are enacted or announced
after the reporting period.
5 Provisions and contingent liabilities

5 Provisions and contingent liabilities
PAS 37.28 (a) A contingent liability is disclosed, as
required by paragraph 86 of PAS 37, unless
the possibility of an outflow of resources
embodying economic benefits is remote.
Intro of (b) Recognize a provision when, and only
PAS 37 when:
Par. 2;
PAS 37.14
i An entity has a present obligation (legal
or constructive) as a result of a past
event;
ii It is probable (i.e. more likely than not)
that an outflow of resources embodying
economic benefits will be required to
settle the obligation; and
iii A reliable estimate can be made of the
amount of the obligation. The Standard
notes that it is only in extremely rare
cases that a reliable estimate will not be
possible.
Intro of (c) Do not recognize a contingent liability.
PAS 37 Disclose such unless the possibility of an
Par. 19; outflow of resources is remote.
PAS 37.27-
28
PAS 37.84 (d) For each class of provision, an entity
should disclose:
i The carrying amount at the beginning
and end of the period;

ii Additional provisions made in the

period, including increases to existing
provisions;
iii Amounts used (i.e., incurred and
charged against the provision) during
the period;
iv Unused amounts reversed during the
period; and
v The increase during the period in the
discounted amount arising from the
passage of time and the effect of any
change in the discount rate.
Comparative information is not required.
PAS 37.85 (e) An entity should disclose the following for
each class of provision:
i A brief description of the nature of the
obligation and the expected timing of
any resulting outflows of economic
benefits;
ii An indication of the uncertainties about
the amount or timing of those outflows.
Where necessary to provide adequate
information, an entity should disclose
the major assumptions made
concerning future events, as addressed
in paragraph 48 of PAS 37; and
iii The amount of any expected
reimbursement, stating the amount of
any asset that has been recognized for
that expected reimbursement.
PAS 37.86 (f) Unless the possibility of any outflow in
settlement is remote, an entity should
disclose for each class of contingent
liability at the end of the reporting period a
brief description of the nature of the
contingent liability and, where practicable:
PAS i An estimate of its financial effect,
37.86(a) measured under paragraphs 36-52 of
PAS 37;
PAS ii An indication of the uncertainties
37.86(b) relating to the amount or timing of any
outflow; and
PAS iii The possibility of any reimbursement.
37.86(c)
PAS 37.88 (g) Where a provision and a contingent
liability arise from the same set of
circumstances, the link between the
provision and the contingent liability should
be shown.
PAS 37.89 (h) Where an inflow of economic benefits is
probable, an entity should disclose a brief

description of the nature of the contingent

assets at the end of the reporting period,
and, where practicable, an estimate of their
financial effect, measured using the
principles set out for provisions in
paragraphs 36–52 of PAS 37.
PAS 37.91 (i) Where any of the information required
under (f) and ((h) above is not disclosed
because it is not practicable to do so, that
fact should be stated.
PAS 37.92 (j) In extremely rare cases, disclosure of some
or all of the information required by
paragraphs 84-89 of PAS 37 can be expected
to prejudice seriously the position of the
entity in a dispute with other parties on the
subject matter of the provision, contingent
liability or contingent asset. In such cases,
an entity need not disclose the information,
but should disclose the general nature of the
dispute, together with the fact that, and
reason why, the information has not been
disclosed.
PAS 34.26 (k) If an estimate of an amount reported in an
interim period is changed significantly
during the final interim period of the
financial year but a separate financial
report is not published for that final
interim period, the nature and amount of
that change in estimate should be disclosed
in a note to the annual financial statements
for that financial year.
Note: This item is applicable only when the
reporting entity publishes an interim
financial report prepared in accordance
with PAS 34.
Decommissioning, Restoration and
Environmental Rehabilitation Funds
IFRIC 5 interpretation – Rights to Interests
arising from Decommissioning, Restoration
and Environmental Rehabilitation funds,
effective from January 1, 2006, explains how to
treat expected reimbursements from funds set
up to meet the costs of decommissioning plant
(such as nuclear plant) or equipment (such as
cars) or in undertaking environmental
restoration or rehabilitation (such as rectifying
pollution of water or restoring mined land).
IFRIC5p4 This Interpretation applies to accounting in
the financial statements of a contributor for
interests arising from decommissioning funds
that have both of the following features:

(a) the assets are administered separately

(either by being held in a separate legal
entity or as segregated assets within
another entity); and
(b) a contributor’s right to access the assets is
restricted.
A residual interest in a fund that extends

beyond a right to reimbursement, such as a
contractual right to distributions once all the
decommissioning has been completed or on
winding up the fund, may be an equity
instrument within the scope of PAS 39 and is
not within the scope of this Interpretation.
IFRIC5p11 (a) A contributor should disclose the nature of
its interest in a fund and any restrictions on
access to the assets in the fund.
IFRIC5p12 (b) When a contributor has an obligation to
make potential additional contributions
that is not recognized as a liability (refer to
paragraph 10 of IFRIC5), it should make
the disclosures required by paragraph 86 of
PAS 37 (Please refer to (f) above).
IFRIC5p13 (c) When a contributor accounts for its
interest in the fund in accordance with
paragraph 9 of IFRIC 5, it should make the
disclosures required by paragraph 85(c) of
PAS 37 (Please refer to (e.iii) above).
6 Borrowings and other liabilities

6 Borrowings and other liabilities
PAS 1.60- (a) Disclose the borrowings classified between
61 current and non-current portions, in
accordance with paragraphs 69 to 76 of
PAS 1.
PAS 1.73 (b) If an entity expects, and has the discretion,
to refinance or roll over an obligation for at
least twelve months after the reporting
period under an existing loan facility, it
classifies the obligation as non-current,
even if it would otherwise be due within a
shorter period.
Note: When refinancing or rolling over is
not at the discretion of the entity (i.e. for
example, there is no agreement to
refinance), the potential to refinance is not
considered and the obligation is classified as
current.
PAS 1.75 (c) If the lender agreed by the end of the
reporting period to provide a period of

grace ending at least twelve months after

the reporting period, within which the
entity can rectify the breach and during
which the lender cannot demand
immediate payment, the liability is
classified as non-current.
PAS 1.76 (d) In respect of loans classified as current
liabilities, if the following events occur
between the end of the reporting period
and the date the financial statements are
authorized for issue, those events qualify
for disclosure as non-adjusting events in
accordance with PAS 10 Events after the
Reporting Period:
i refinancing on a long-term basis;
ii rectification of a breach of a long-term
loan agreement; and
iii the granting by the lender of a period
of grace to rectify a breach of a long-
term loan agreement ending at least
twelve months after the reporting
period.
PAS 32.28 (e) The issuer of a non-derivative financial
instrument should evaluate the terms of
the financial instrument to determine
whether it contains both a liability and an
equity component. Such components
should be classified separately as financial
liabilities, financial assets, or equity
instruments, in accordance with paragraph
15 of PAS 32.
SRC Rule (f) FOR PUBLIC COMPANIES: State
68.1 separately any other long-term liability in
(Annex excess of five per cent (5%) of total
68.1-K.10) liabilities.
A02d Share capital and reserves

1 Share capital and reserves
1 Share capital and reserves
PAS (a) For each class of share capital, disclose the
1.54(r) following, either in the statement of
financial position or the statement of
changes in equity, or in the notes:
i the number of shares authorized
ii the number of shares issued and fully
paid, and issued not fully paid
iii par value per share, or that the shares
have no par value
iv a reconciliation of the number of
shares outstanding at the beginning
and at the end of the year

v the rights, preferences and restrictions

attaching to that class including
restrictions on the distribution of
dividends and the repayment of capital
vi shares in the entity held by the entity
itself or by subsidiaries or associates of
the entity; and
vii shares reserved for issuance under
options and sales contracts, including
the terms and amounts
SRC Rule (b) FOR PUBLIC COMPANIES: Provide a
68.1 summarized discussion of the company's
(Annex track record of registration of securities
68.1-K.11) under the SRC by indicating:
i the number of shares registered,
ii issue/offer price,
iii date of approval or date when the
registration statement covering such
securities was rendered effective by the
Commission, and
iv the number of holders of such
securities as of year-end.
PAS 1.80 (c) An entity without share capital, such as
partnership or trust, should disclose
information equivalent to the information
required for share capital, showing
changes during the period in each category
of equity interest and the rights,
preferences and restrictions attaching to
each category of equity interest.
PAS (d) Disclose the following, either in the
1.79(b) statement of financial position or the
statement of changes in equity, or in the
notes, a description of the nature and
purpose of each reserve within owners'
equity
PAS (f) The amount of dividends proposed or
1.137(a) declared before the financial statements
were authorized for issue but not
recognized as distribution to equity holders
during the period, and the related amount
per share
PAS (g) The amount of any cumulative preferred
1.137(b) dividends not recognized
(h) Other equity
PAS i Revaluation surplus, if any, should be
16.77(f) shown as a separate caption after the
share capital section
PAS ii Disclose portion accumulated as
16.77(f) additional depreciation charges to
operations, the amount transferred to

retained earnings, if any, and the

portion of revaluation increment
absorbed through depreciation which
is declared as cash dividends during
the year.
iii Movement for the period and
restrictions on distribution for:
PAS (1) Revaluation surplus
16.77(f)
PAS (2) Foreign exchange differences
21.52(b)
PAS (3) Distributions to holders of a
16.77(f) financial instrument classified as
equity
2 Dividends
2 Dividends
PAS 1.107 (a) An entity should disclose, either in the
statement of changes in equity or in the
notes, the amount of dividends recognized
as distributions to owners during the
period, and the related amount per share.
PAS 10.12 (b) If an entity declares dividends to holders of
equity instruments (as defined in PAS 32
Financial Instruments: Disclosure and
Presentation) after the end of the reporting
period, the entity should not recognize
those dividends as a liability at the end of
the reporting period.
PAS 10.13 Note: If dividends are declared (i.e. the
dividends are appropriately authorized
and no longer at the discretion of the
entity) after the end of the reporting
period but before the financial statements
are authorized for issue, the dividends are
not recognized as a liability at the end of
the reporting period because they do not
meet the criteria of a present obligation in
PAS 37. Such dividends are disclosed in
the notes in accordance with PAS 1
Presentation of Financial Statements.
IFRIC For distribution of non-cash assets to owners,
17.16 disclose the following information, if
applicable:
(a) the carrying amount of the dividend
payable at the beginning and end of the
period; and
(b) the increase or decrease in the carrying
amount recognized in the period in
accordance with paragraph 13 as result of
a change in the fair value of the assets to

be distributed.
IFRIC If, after the end of a reporting period but
17.17 before the financial statements are authorized
for issue, an entity declares a dividend to
distribute a non-cash asset, it shall disclose:
(a) the nature of the asset to be distributed;
(b) the carrying amount of the asset to be
distributed as of the end of the reporting
period; and
(c) whether fair values are determined, in
whole or in part, directly by reference to
published price quotations in an active
market or are estimated using a valuation
technique and the method used to
determine fair value and, when a valuation
technique is used, the assumptions
applied [PFRS 7 paragraph 27(a) and (b)].
3 Treasury shares
3 Treasury shares
PAS 32.33 (a) If an entity reacquires its own equity
instruments, those instruments (‘treasury
shares’) should be deducted from equity.
(i) No gain or loss should be recognized
in profit or loss on the purchase, sale,
issue or cancellation of an entity’s
own equity instruments.
(ii) Such treasury shares may be acquired
and held by the entity or by other
members of the consolidated group.
(iii) Consideration paid or received
should be recognized directly in
equity.
PAS 32.34 (b) The amount of treasury shares held is
disclosed separately either on the face of
the statement of financial position or in
the notes, in accordance with PAS 1
Presentation of Financial Statement.
PAS 32.34 (c) An entity provides disclosure in
accordance with PAS 24 Related Party
Disclosures if the entity reacquires its
own equity instruments from related
parties.
PAS 32 - Note: An entity’s own equity instruments
AG36 are not recognized as a financial asset
regardless of the reason for which they
are reacquired. Paragraph 33
requires an entity that reacquires its
own equity instruments to deduct those
equity instruments from equity.
However, when an entity holds its own

equity on behalf of others, e.g. a

financial institution holding its own
equity on behalf of a client, there is an
agency relationship and as a result
those holdings are not included in the
entity’s statement of financial position.
4 Puttable instruments
Puttable instruments
PAS Disclose the amount reclassified into and out of
32.80A; each category (financial liabilities or equity),
1.8A and the timing and reason for that
reclassification if there is a reclassification of
(a) a puttable financial instrument classified as
an equity instrument, or
(b) an instrument that imposes on the entity
an obligation to deliver to another party a
pro rata share of the net assets of the entity
only on liquidation and is classified as an
equity instrument
PAS For puttable financial instruments classified as
32.136A equity instruments, disclose the following:
(a) summary quantitative data about the
amount classified as equity;
(b) its objectives, policies and processes for
managing its obligation to repurchase or
redeem the instruments when required to
do so by the instrument holders, including
any changes from the previous period;
(c) the expected cash outflow on redemption
or repurchase of that class of financial
instruments; and
(d) information about how the expected cash
outflow on redemption or repurchase was
determined.
PAS Disclose the following, if not disclosed
32.138A elsewhere in information published with the
financial statements:
(a) the domicile and legal form of the entity,
its country of incorporation and the
address of its registered office (or principal
place of business, if different from the
registered office);
(b) a description of the nature of the entity's
operations and its principal activities
(c) the name of the parent and the ultimate
parent of the group; and
(d) if it is a limited life entity, information
regarding the length of its life
Other disclosures

5 Retained earnings
4 Retained earnings
Corp. (a) For stock corporations whose retained
Code Sec. earnings are in excess of 100% of their
43; paid-in share capital, include in notes
PAS justification for non-declaration of
1.79(v); dividends, which must be substantiated
PAS 1.122; by board resolutions, dealings with
PAS 1.125; investors, contracts, etc, such as the
PAS 1.7; following:
PAS 1.106;
SEC
Circular
13 of 2009
(i) When justified by definite corporate
expansion projects or programs
approved by the board of directors; or
(ii) When the corporation is prohibited
under any loan agreement with any
financial institution or creditor,
whether local or foreign, from declaring
dividends without its/his consent, and
such consent has not yet been secured;
or
(iii) When it can be clearly shown that such
retention is necessary under special
circumstances obtaining in the
corporation, such as when there is need
for special reserve for probable
contingencies.
SEC (b) Disclose the amount of undistributed
Opinion earnings of investee accounted for by the
dated Apr equity method included in the retained
23, 1995 earnings to properly explain the
increases in the balance of the retained
earnings which may be looked upon as an
undue accumulation of profits.
Note: The title of the statement should
continue to refer to equity even if the
amount is negative, that is, a deficit. In
this context, the term equity is
considered to be sufficiently broad as to
cover situations where there is a deficit
on the shareholder's funds. However,
individual line items within the
statement should refer to shareholders'
deficit if the amount is negative.
Similarly, if the entity records a net
loss, the title "Income Statement"
should still be used, but individual line

items should be amended to reflect the

loss, for example, "Loss before income
tax".
A02e Related party transactions

1 Related party transactions
SEC Disclose or present related party transactions
Circular required under PAS 24, Related party
No. 8 of transactions. Any deficiency shall be
2009 considered significant regardless of the
amount involved if the reporting company
is:
i A public company;
ii Listed company;
iii Issuer os securities to the public or
secondary licensee of the SEC.
PAS 24.09 (a) The definition of related parties includes
the following entities and individuals:
i controlling shareholders (e.g.,
parent companies/ individual
companies/trusts etc.);
ii subsidiaries and fellow subsidiaries;
iii parties that have an interest in the
entity that gives them significant
influence over the entity;
iv parties that have joint control over
the entity;
v associates;
vi joint ventures;
vii the entity's or parent's key
management personnel;
viii close members of the family of an
individual referred to in i, ii,iii, or
vii;
ix an entity that is controlled or
significantly influenced by any
individual referred to in items vii or
viii, or for which significant voting
power in the entity resides with,
directly or indirectly, any individual
referred to in items vii or viii;
x the post-employment benefit plan.
PAS 24.12 (b) Disclose relationships between parents and
subsidiaries, irrespective of whether there
have been transactions between those
related parties.
PAS 24.12 (c) Disclose the name of the entity's parent
and, if different, the ultimate controlling
party. If neither the entity's parent nor the
ultimate controlling party produces
financial statements available for public

use, the name of the next most senior

parent that does so should also be
disclosed.
PAS 24.16 (d) Key management personnel compensation
should also be disclosed in total and for
each of the following categories:
i short-term employee benefits;
ii post-employment benefits;
iii other long-term benefits;
iv termination benefits; and
v share-based payments.
PAS (e) Where there have been transactions
24.17(a-d) between related parties, disclose:
i nature of related party
relationships;
ii types of transactions (e.g., goods or
services sold/purchased,
management service, directors’
remuneration and emoluments,
loans, guarantees, etc.); and
iii the amount of transactions;
iv the amount of outstanding balances
(including terms and conditions,
secured or not, the nature of the
consideration to be provided in
settlement and any guarantees given or
received);
v provisions for doubtful debts related to
the amount of outstanding balances;
and
vi the expense recognized during the
period in respect of bad or doubtful
debts due from related parties.
PAS 24.22 (f) Where necessary for an understanding of
the effects of related party transactions on
the financial statements, disclose
separately, rather than in aggregate, items
of similar nature.
PAS 1.78; (g) Disclose separately (i) amounts payable to
24.18-19 and (ii) amounts receivable from the
following:
i the parent entity;
ii entities with joint control or
significant;
iii fellow subsidiaries;
iv associates;
v joint ventures;
vi entity's or parent's key
management personnel; and
vii other related parties.

PAS 24.20 Note: The following are examples of

transactions that may require disclosure:
(1) purchases or sales of goods
(finished or unfinished);
(2) purchases or sales of property and
other assets;
(3) rendering or receiving of services;
(4) leases;
(5 transfers of research and
development;
(6) transfers under license
agreements;
(7) transfers under finance
arrangements (including loans and
equity contributions in cash or in
kind);
(8) provision of guarantees or
collateral; and
(9) settlement of liabilities on behalf of
the entity or by the entity on behalf
of another party.
PAS 24.21 (h) Only provide disclosures that related-party
transactions were made on an arm's length
basis if such terms can be substantiated.
PAS 32.34 (i) Separately provide disclosures where the
entity re-acquires its own equity
instruments from related parties, in
accordance with paragraph 22 of PAS 24.
19p34B (j) Participation in a defined benefit plan that
shares risks between various entities under
common control (for example, a parent and
its subsidiaries) is a related-party
transaction for each individual group
entity. Make the following disclosures in
the separate or individual financial
statements:
(a) the contractual agreement or stated
policy for charging the net defined
benefit cost or the fact that there is
no such policy;
(b) the policy for determining the
contribution to be paid by the
entity;
(c) if the entity accounts for an allocation
of the net defined benefit cost in
accordance with paragraph 34A of PAS
19, all the information about the plan as
a whole in accordance with paragraphs
120-121 of PAS 19; and
(d) if the entity accounts for the
contribution payable for the period in

accordance with paragraph 34A of PAS

19, the information about the plan as a
whole required in accordance with
paragraphs 120A(b)-(e), (j), (n), (o), (q)
and 121 of PAS 19. The other
disclosures required by paragraph 120A
of PAS 19 do not apply.
SRC Rule (k) Indebtedness of or Advances to
68.1 Unconsolidated Subsidiaries and
(Annex Related Parties
68.1-K.5)
FOR PUBLIC COMPANIES: Non-
current advances to unconsolidated
subsidiaries and related parties are shown
separately under this caption.
A02f Commitments
1 Commitments
1 Commitments
(a) Disclose the amount of contractual
commitments for the acquisition of:
PAS i property, plant and equipment; and
16.74(c)
PAS 38. ii intangible assets.
122(e)
PAS (b) Disclose contractual obligations:
40.75(h)
i to purchase, construct or develop
investment property; or
ii for repairs, maintenance or
enhancements of investment property.
SECTION V - STATEMENT OF COMPREHENSIVE INCOME (AND RELATED NOTES)

A03a General disclosures
SRC Rule A The statement of comprehensive income
68, contains at least one-year comparative
Section statements.
5.c; SEC
checklist
SRC Rule B FOR PUBLIC COMPANIES: In the case
68.1, of a reporting company under SRC
Section Rule 68.1, the income statement should
4.b.ii contain a comparative three-year
statement.
PAS 1.81 Present all items of income and expenses
recognized in a period:
PAS 1.81(a) (a) in a single statement of comprehensive
income, or
PAS 1.81(b) (b) in two statements: a statement displaying
components of profit or loss (separate

income statement) and a second statement

beginning with profit or loss and displaying
components of other comprehensive
income (statement of comprehensive
income).
PAS 1.82 (a) As a minimum, the face of the
statement of comprehensive income
should include the following line items:
PAS i revenue;
1.82(a)
PAS 1.97; ii analysis of costs (either on the face
1.99 of the income statement or in the
notes)
SRC Rule iii operating income or loss;
68
(Section
4.d.ii)
PAS iv finance costs;
1.82(b)
PAS v share of profit and losses of
1.82(c) associates and joint ventures
accounted for using the equity
method;
SRC Rule vi profit or loss before tax;
68,
Section
4.d.ii
PAS vii tax expense;
1.82(d)
SRC Rule viii profit or loss after tax;
68,
Section
4.d.ii; SEC
Checklist
PAS ix a single amount comprising the
1.82(e); total of:
PFRS
5.33(c)
(1) the post-tax profit or loss of
discontinued operations and
(2) the post-tax gain or loss
recognized on the measurement
to fair value less cost to sell or
on the disposal of the assets or
disposal group(s) constituting
the discontinued operation; and
PAS x profit or loss for the period.
1.82(f)
PAS xi each component of other
1.82(g) comprehensive income classified by

nature (excluding amounts in xii)

PAS xii share of the other comprehensive
1.82(h) income of associates and joint
ventures accounted for using the
equity method; and
PAS xi total comprehensive income.
1.82(i)
PAS 1.83 (b) The following items should be disclosed
in the statement of comprehensive
income as allocations of profit or loss for
the period:
PAS i profit or loss for the period
1.83(a) attributable to minority interest and
owners of the parent.
PAS ii total comprehensive income for the
1.83(b) period attributable to minority
interest and owners of the parent.
PAS 1.84 (c) An entity may present in a separate
income statement the line items in
paragraph 82 (a)-(f) [that is, (a)i-x above]
and the disclosures in paragraph 83(a)
[that is, (b)I above].
PAS 1.85 (d) Additional line items, headings and sub-
totals in the statement of comprehensive
income and separate income statement
(if presented), when such presentation is
relevant to an understanding of the
entity's financial performance.
PAS 1.88 (e) All items of income and expense
recognized in a period should be included
in profit or loss for the period unless a
Standard or an Interpretation requires
otherwise.
PAS 1.90 (f) Disclose the amount of income tax
relating to each component of other
comprehensive income, including
reclassification adjustments, either in the
statement of comprehensive income or in
the notes.
PAS 1.91 (g) Present components of other
comprehensive income either:
PAS i net of related tax effects, or
1.91(a)
PAS ii before related tax effects with one
1.91(b) amount shown for the aggregate
amount of income tax relating to
those components.
PAS 1.92 (h) Disclose reclassification adjustments
relating to components of other
PAS 1.94 (i) Present reclassification adjustments in

the statement of comprehensive income

or in the notes. Reclassification
adjustments presented in the notes
should present components of other
comprehensive income after any related
reclassification adjustments.
PAS 1.32 (j) Items of income and expense should not
be offset unless required or permitted by
a Standard or an Interpretation.
PAS 1.107 (k) Disclose either in the statement of
changes in equity, or (more usually) in
the notes, the amount of dividends
recognized as distributions to equity
holders during the period, and the related
amount per share.
PAS 8.39- (l) Disclose the nature and amount of a
40 change in an accounting estimate that has
an effect in the current period or which is
expected to have an effect in future
periods. If it is impracticable to estimate
the amount, disclose this fact.
PAS 34.26 (m) If an estimate of an amount reported in
an interim period changes significantly
during the final interim period of the
financial year but a separate financial
report is not published for that final
interim period, the nature and amount of
that change in estimate should be
disclosed in a note to the annual financial
statements for that financial year.
This is only applicable when the

reporting entity publishes an interim
financial report prepared in accordance
with PAS 34.
A03b Revenue
2 Revenue
PAS Disclose amount of each significant category
1.82(a); of revenue including:
18.35
SRC Rule (a) Primary business of the company;
68.1
(Annex
68.1-L)
PAS (b) Sale of goods and rendering of services;
18.35(b.i
& b.ii)
PAS (c) Construction contract revenue including
11.39(a-c) methods used to determine the contract
revenue recognized in the period and the

methods used to determine the stage of

completion of contracts in progress;
PAS (d) Revenue from exchanges of goods or
18.35(c) services rendered included in each
significant category of revenue;
PAS (e) Interest;
18.35(b.iii
)
PAS (f) Royalties;
18.35(b.iv
)
PAS (g) Dividends;
18.35(b.v)
SRC Rule (h) Equity in earnings of associates;
68.1
(Annex
68.1-L)
SRC Rule (i) Lease income (if any);
68.1
(Annex
68.1-L)
SRC Rule (j) Gain from sale of property; and
68.1
(Annex
68.1-L)
SRC Rule (k) Others.
68.1
(Annex
68.1-L)
SEC Present in the notes to the financial
Comment statements the details of deductions from
gross sales, such as:
i Sales returns
ii Sales discounts
iii Sales rebates; and
iv Value-added taxes.
A03c Cost of sales

3 Cost of sales
Disclose cost of sales:
PAS (a) The amount of inventories recognized as
2.36(d), expense during the period
38
PAS (b) The amount of any write-downs of
2.36(e) inventories recognized as an expense in
the period in accordance with paragraph
34 of PAS 2
PAS (c) The amount of any reversal of any write-
2.36(f) down of inventories that is recognized as
a reduction in the amount of inventories
recognized as an expense in the period in

accordance with paragraph 34 of PAS 2

PAS (d) The circumstances or events that led to
2.36(g) the reversal of a write-down of
inventories in accordance with paragraph
34 of PAS 2.
PAS 2.39 (e) The operating costs, applicable to
revenues, recognized as an expense
during the period, classified by their
nature
A03d Analysis of expenses

4 Analysis of expenses
PAS 1.99 (a) Present an analysis of expenses recognized
in profit or loss using a classification
based on either the nature of expenses or
their function within the entity, which
ever provides information that is reliable
and more relevant.
PAS 1.100 Note: Entities are encouraged to present
the analysis in the statement of
comprehensive income or in the
separate income statement (if
presented).
PAS 1.101 (b) Expense items are sub-classified in order
to highlight components of financial
performance which may differ in terms of
frequency, potential for gain and loss and
predictability. This analysis is provided in
one of two formats:
PAS 1.102 i If analyzed by nature of expense,
this comprises:
(1) other income;
(2) changes in inventories of finished
goods and work in progress;
(3) raw materials and consumables
used;
(4) employee benefit expense;
(5) depreciation and amortization
expense; and
(6) other expenses
PAS 1.103 ii If analyzed by function of expense,
this comprises:
(1) cost of sales
(2) gross profit
(3) other income
(4) distribution (selling) costs
(5) administrative expenses; and
(6) other expenses
PAS 1.104 iii Entities classifying expenses by
function should disclose additional

information on the nature of expenses,

including the following:
(1) depreciation and amortization
expense; and
(2) employee benefit expense.
(c) Employee benefits – disclose:
PAS 19.46 i the expense for defined contribution
plans;
PAS ii for defined benefit plans – the total
19.120A(g expense for each of the following, and
) the line item(s) of the income
statement in which they are included:
(1) current service cost;
(2) interest cost;
(3) expected return on plan assets;
(4) expected return on any
reimbursement right recognized as
an asset;
(5) actuarial gains and losses;
(6) past service cost;
(7) the effect of any curtailment or
settlement; and
(8) the effect of the limit in paragraph
58(b) of PAS 19.
PAS iii for defined benefit plans:
19.120A(m
)
(1) the actual return on plan assets; and
(2) the actual return on any
reimbursement right recognized as
an asset in accordance with
PAS 19.131 iv the expense resulting from other long-
term employee benefits, if significant;
and
PAS v the expense resulting from termination
19.142 benefits, if significant.
SRC Rule (d) Disclose the aggregate amount of
68.1 research and development expenditure
(Annex recognized as an expense during the
68.1- period.
L.5A);
PAS
38.126
PAS Note: Research and development
38.127 expenditure comprises all expenditure that is
directly attributable to research or
development activities (see paragraphs 66
and 67 of PAS 38 for guidance on the type of
expenditure to be included for the purpose of

the disclosure requirement in paragraph 126

of PAS 38).
A03e Finance costs

5 Finance costs (FOR PUBLIC
COMPANIES)
SRC Rule The amount of interest expense and
68.1 amortization of debt discount and expenses for
(Annex each of the following are stated separately on
68.1-L.2) the face or in notes to financial statements:
(a) Short-term promissory notes;
(b) Long-term promissory notes;
(c) Interest in bonds, mortgages and other
similar long-term debt
(d) Amortization of debt discount, expense or
premium
(e) Other interest
A03f Other income

6 Other income
SRC Rule (a) FOR PUBLIC COMPANIES: Dividends -
68.1 amount of dividends from the following are
(Annex stated separately (if practicable):
68.1-L.3A)
i Securities of related parties and
unconsolidated subsidiaries,
ii Marketable securities (Note 2), and
iii Other securities.
SRC Rule (b) FOR PUBLIC COMPANIES: Interest
68.1 income on securities - state separately the
(Annex amount of interest from the following:
68.1-L.3B)
i Securities of related parties and
unconsolidated subsidiaries,
ii Marketable securities (Note 2), and
iii Other securities
SRC Rule (c) FOR PUBLIC COMPANIES: Gain (loss)
68.1 on Securities - Gain or loss on disposal of
(Annex securities are shown separately - disclose
68.1-L.3C) gains, net of losses or vice versa stated and
the method followed in determining the cost
of securities sold, e.g., "average cost", "first-
in" first-out" or "specific identification
method.
(d) Income from investments:
PAS i Interest, royalties, dividends, rentals on
18.35(b) long-term and current investments
ii Profits/losses on disposal
PAS iii Gain or loss on a financial asset or
39.55(a) financial liability classified as at fair

value through profit or loss

PAS iv Cumulative gain or loss on an available-
39.55(b) for-sale financial asset previously
recognized in other comprehensive
income.
PAS v Dividends on an available-for-sale
39.55(b) equity instrument when the entity's right
to receive payment is established
PAS 39.56 vi Gain or loss on financial assets and
financial liabilities carried at amortized
cost when the financial asset or financial
liability is derecognized or impaired, and
through the amortization process
PAS 39.63 vii Impairment loss on loans and
receivables or held-to-maturity
investments carried at amortized cost
Note: The amount of loss is measured at the
difference between the asset's carrying
amount and the present value of estimated
future cash flows (excluding future credit
losses that have not been incurred)
discounted at the financial asset's original
effective interest rate (i.e. the effective
interest rate computed at initial
recognition).
PAS 39.65 viii The amount of reversal when the
amount of the impairment loss
decreases and the decrease can be
related objectively to an event occurring
after the impairment was recognized
(such as an improvement in the debtor's
credit rating)
PAS 39.67 ix Cumulative loss when the decline in the
fair value of an available-for-sale
financial asset that had been recognized
directly in other comprehensive income
should be removed from other
PAS 39.70 x The amount of reversal of the
impairment loss after the increase in the
fair value of an available-for-sale
financial asset.
SRC Rule (e) FOR PUBLIC COMPANIES:
68.1 Miscellaneous – State separately the
(Annex material amounts of miscellaneous other
68.1-L.3D) income indicating clearly the nature of the
transactions out of which the items arose.
Miscellaneous other income may be stated
net of miscellaneous income deductions or
vice versa, provided that any material
amounts are set forth separately.

A03g Income taxes

7 Income taxes
PAS 12.77 (a) Present tax expense (income) related to
income or loss from ordinary activities
on the face of the statement of
comprehensive income or income
statement (if separately presented).
PAS 12.79 (b) Disclose the major components of tax
expense (income) separately:
PAS 12.80 i current tax expense (income);
a-h
ii any adjustments recognized in the
period for current tax of prior
periods;
iii the amount of deferred tax expense
(income) relating to the origination
and reversal of temporary
differences;
iv the amount of deferred tax expense
(income) relating to changes in tax
rates or the imposition of new taxes;
v the amount of the benefit arising
from a previously unrecognized tax
loss, tax credit or temporary
difference of a prior period that is
used to reduce current tax expense;
vi the amount of the benefit from a
previously unrecognized tax loss, tax
credit or temporary difference of a
prior period that is used to reduce
deferred tax expense;
vii deferred tax expense arising from
the write-down, or reversal of a
previous write-down, of a deferred
tax asset in accordance with
paragraph 56 of PAS 12; and
viii the amount of tax expense (income)
relating to those changes in
accounting policies and errors that
are included in profit or loss for the
period in accordance with PAS 8,
because they cannot be accounted
for retrospectively.
PAS (c) Tax expense relating to items which are
12.81(a); charged or credited to equity;
SEC
Checklist
PAS (d) Tax expense relating to each component
12.81(ab) of other comprehensive income (see
paragraph 62 and PAS 1);

PAS (e) The amount and expiration date of

12.81(e); deductible temporary differences, and
SEC unused tax losses and tax credits for which
Checklist no deferred tax asset has been recognized;
PAS (f) Aggregate temporary differences
12.81(f); associated with investments in
SEC subsidiaries, branches and associates, and
Checklist interests in joint ventures, for which
deferred tax liabilities have not been
recognized;
PAS (g) For each type of temporary difference and
12.81(g); for each type of unused tax loss or unused
SEC tax credit, the amount of deferred tax asset
Checklist and liability recognized in the statement of
financial position, for each period
presented, and the amount of deferred tax
expense or benefit recognized in the
income statement, unless otherwise
apparent from changes in the statement of
financial position accounts.
PAS 12.81 (h) Provide an explanation of the relationship
(c) between tax expense (income) and
accounting profit in either or both of the
following forms:
i numerical reconciliation between tax
expense (income) and product of
accounting profit, multiplied by the
applicable tax rate(s), disclosing also
the basis on which the applicable tax
rate(s) is (are) computed (see
paragraph 85 of PAS 12); or
ii a numerical reconciliation between
the average effective tax rate and the
applicable tax rate, disclosing also the
basis on which the applicable tax rate
is computed (see paragraph 85 of PAS
12).
PAS 12.81 (i) Provide an explanation of changes in the
(d) applicable tax rate(s) compared to the
previous period.
PAS 12.81 (j) In respect of discontinued operations, the
(h.i-ii) tax expense relating to:
i the gain or loss on discontinuance; and
ii the income or loss from the ordinary
activities of the discontinued operation
for the period, together with the
corresponding amounts for each prior
period presented.
PAS 12.81 (k) If a business combination in which the
(j) entity is the acquirer causes a change in
the amount recognised for its pre-

acquisition deferred tax asset (see

paragraph 67 of PAS 12), the amount of
that change; and
PAS 12.81 (l) If the deferred tax benefits acquired in a
(k) business combination are not recognized
at the acquisition date but are recognized
after the acquisition date (see paragraph
68 of PAS 12), a description of the event or
change in circumstances that caused the
deferred tax benefits to be recognized.
A03h Other matters

8 Other matters
PAS 1. 29 (a) When a class of similar items of income
and expense are material, their nature
and amount should be disclosed
separately. An entity shall present
separately items of a dissimilar nature or
function unless they are immaterial.
Note: Circumstances which may give rise

to the separate disclosure of items of
income and expense in accordance with
paragraph 87 of PAS 1 include:
PAS 1.97- Circumstances which may give rise to
98 the separate disclosure of items of
income and expense:
i The write-down of inventories to net
realizable value or property, plant and
equipment to recoverable amount, as
well as the reversal of such write-
downs;
ii A restructuring of the activities of an
entity and the reversal of any
provisions for the costs of
restructuring;
iii Disposal of items of property, plant
and equipment;
iv Disposal of investments;
v Discontinued operations;
vi Litigation settlements; and
vii Other reversals of provisions.
(b) Specific disclosures on the face of
the statement or in the notes:
PAS 1.104 i Depreciation
PAS 1.104 ii Amortization expense
PAS 1.104 iii Employee benefit expense
SRC Rule iv Research and development costs
68.1 expensed in the period
(Annex
68.1-

L.5(A));
PAS
38.126
SRC Rule v Amount of exchange differences
68.1 included recognized in the net
(Annex income profit or loss for the period
68.1- except those arising on financial
L.5(B)); instruments measured at fair value
PAS through profit or loss in accordance
21.52(a) with PAS 39.
PAS 21.32 vi Impact of change in classification of
a significant foreign operation on net
profit or loss
SRC Rule vii Net Asset Value Per Share (NAVPS),
68.1 in case of mutual funds/investment
(Annex companies
68.1-
L.5(c)
PAS 1.87 (c) An entity should not present any items
of income or expense as extraordinary
items, in the statement of comprehensive
income or separate income statement (if
presented), or in the notes.
PAS (d) Impairment losses - For each class of
36.126(a) assets, the financial statement should
& (b) disclose the following amounts in income
or loss during the period, and the line
item(s) of the income statement in which
these amounts are included:
i impairment losses recognized
ii reversals of impairment losses
SRC Rule (e) Other Expenses - State separately the
68.1 expenditures with material amount or that
(Annex which constitutes 10% or more of the
68.1-L.4 revenue of the registrant.
SIC (f) Disclose the accounting treatment applied
27.10(b) to any fee received in an arrangement that
has the legal form of a lease but that in
substance does not involve a lease under
PAS 17, the amount recognized as income
in the period, and the line item of the
income statement in which it is included
(Refer to Section A2 Statement of
Financial Position and Related Notes
in the A2c Section of Liabilities -
Leases).
PAS (g) Disclose the amount of foreign exchange
21.52(a) differences recognized in income or loss
except for those arising on financial
instruments measured at fair value through
profit or loss in accordance with PAS 39.

(h) Disclose the following amounts recognized

during the period and the line item(s) of
the statement of comprehensive income or
income statement (if presented) in which
they are included:
PAS i amortization of intangible assets (by
38.118(d) each class); and
PFRS ii excess of acquirer’s interest in the net
3.B67(g) fair value of acquiree’s assets, liabilities
and contingent liabilities over cost
recognised as income.
PAS (i) Investment property – disclose:
40.75(f)
i rental income;
ii direct operating expenses including
repairs and maintenance arising from
investment property that generated
rental income during the period;
iii direct operating expenses including
repairs and maintenance arising from
investment property that did not
generate rental income during the
period; and
PAS iv the cumulative change in fair value
40.32C, recognized in income or loss on a sale
75(f),(iv) of investment property from a pool of
assets in which the cost model is used
into a pool in which the fair value
model is used;
PFRS 7.20 (j) Disclose the following material items
resulting from financial assets and financial
liabilities:
i income;
ii expense;
iii gains; and
iv losses.
PFRS 7.20 (k) The disclosures in (j) above should include
the following:
i total interest income and expense
calculated using the effective interest
method for financial assets and
financial liabilities that are not at fair
value through profit or loss;
ii for available-for-sale assets, the amount
that was removed from other
comprehensive income and recognized
in profit or loss for the period;
iii the amount of interest income accrued
on impaired financial assets in
accordance with paragraph AG93 of
PAS 39; and

PAS 39IG, iv total gains and losses from fair value

G.1 adjustments of recognized assets and
liabilities analyzed into the following
categories:
(1) available-for-sale assets
(2) financial assets and liabilities at fair
value through profit or loss; and
(3) hedging instruments.
v fee income and expense (other than
amounts included in determining the
effective interest rate) arising from:
(i) financial assets or financial
liabilities that are not at fair value
through profit or loss; and
(ii) trust and other fiduciary activities
that result in the holding or
investing of assets on behalf of
individuals, trusts, retirement
benefit plans, and other
institutions.
PFRS (l) Disclose, either in the statement of
7.20(e); comprehensive income or in the
PAS notes, the nature and amount of any
32.94(i) impairment loss recognized in income or
loss for a financial asset, separately for each
significant class of financial asset (refer to
paragraph 55 of PAS 32 for guidance on
determining classes of financial assets).
PAS (m) Disclose material items of income,
32.94(k) expense and gains and losses resulting
from financial assets and financial
liabilities, whether included in profit or loss
or as a separate component of equity,
which should include at least the following
items:
i total interest income and total interest
expense (calculated using the effective
interest method) for financial assets
and financial liabilities that are not at
fair value through profit or loss;
ii for available-for-sale financial assets,
the amount of any gain or loss
recognized directly in equity during the
period and the amount that was
removed from equity and recognized in
profit or loss for the period; and
iii the amount of interest income accrued
on impaired financial assets, see PAS
39, paragraph AG93.
PAS 27.28 (n) Profit or loss and each component of other
comprehensive income should be

attributed to the owners of the parent and

to the non-controlling interests.
Total comprehensive income is attributed

to the owners of the parent and to the non-
controlling interests even if this results in
the non-controlling interests having a
deficit balance.
A03i Earnings per share

10 Earnings per share (FOR PUBLIC
COMPANIES)
PAS 33.02 This standard should be applied by entities
whose common shares or potential common
shares are publicly traded, by entities that are
in the process of issuing common shares or
potential common shares in public securities
market, and by those who voluntarily disclose
earnings per share (EPS).
This should also be applied by other entities

that are required to comply with the
reportorial provisions of SRC Rule 17.
PAS 33.03 An entity that discloses EPS should calculate
and disclose EPS in accordance with PAS 33.
(a) Entities should disclose:
PAS 33.66 i Basic and fully diluted EPS for all
periods presented on the face of the
income statement.
PAS 33.69 Note: Basic and diluted EPS should
be presented, even if the
amounts disclosed are negative
(loss per share).
PAS ii Amounts used in the numerators in
33.70(a) calculating basic and diluted EPS; and
a reconciliation of the amounts to the
net income or loss for the period. The
reconciliation should include the
individual effect of each class of
instrument that affects EPS.
PAS iii Weighted average number of common
33.70(b) shares used as the denominator in
calculating basic and diluted EPS; and
a reconciliation of the denominators to
each other. The reconciliation should
include the individual effect of each
class of instrument that affects EPS.
PAS iv Instruments (including contingently
33.70(c) issuable shares) that could potentially
dilute basic EPS in the future, but were

not included in the calculation of

diluted EPS because they are
antidilutive for the period(s) presented
PAS 33.64 iv When EPS are presented on other than
a historical basis, that fact should be
disclosed (e.g., stock dividend, stock
split, effects of correction of
fundamental errors, changes in
accounting policy, effects of a business
combination)
PAS 33.73 v If an entity discloses, in addition to
basic and diluted EPS, per share
amounts using a reported component
of the income statement other than one
required by PAS 33, such amounts
should be calculated using the
weighted average number of common
shares determined in accordance with
PAS 33.
PAS 33.73 An entity should indicate the basis on
which the numerator(s) is (are)
determined, including whether
amounts per share are before tax or
after tax.
PAS 33.73 If a component of net income is used in
the calculation of basic and diluted EPS
which is not reported as a line item in
the income statement, a reconciliation
should be provided between the
component used and a line item which
is reported in the income statement.
PAS 33.66 Basic and diluted per share amounts
should be disclosed with equal
prominence and presented in the notes
to the financial statements.
PAS (b) If the number of common or potential
33.64; shares outstanding increases as a result of a
Corporati capitalization, bonus issue or stock split or
on Code of decreases as a result of a reverse stock split,
the the calculation of basic and diluted EPS for
Philippine all periods presented should be adjusted
s Sec. 43 retroactively.
Note: EPS should be adjusted

retroactively for stock dividend
declarations when the declaration
becomes effective, i.e., upon approval of
the stockholders. The Corporation Code of
the Philippines, under Section 43, provides
that stock dividend shall be issued only
with the approval of stockholders.

If these changes occur after the end of the

reporting period but before the issuance of
the financial statements, the per share
calculations for those and any prior period
financial statements presented should be
based on the new number of shares.
When per share calculations reflect such
changes in the number of shares, that fact
should be disclosed.
PAS 33.64 (c) In addition, basic and diluted EPS of all
periods presented should be adjusted for
the effects of errors, and adjustments
resulting from changes in accounting
principles (policies), that are accounted for
retroactively.
PAS (d) Entities are encouraged to disclose a
33.70(d) description of common share transactions
or potential common share transactions,
other than capitalization, bonus issues or
stock splits, for which the basic and diluted
EPS are adjusted retroactively - that occur
after the end of the reporting period and
that would have changed significantly the
number of common shares or potential
common shares outstanding at the end of
the period if those transactions had
occurred before the end of the reporting
period:
PAS i Issuance of shares for cash
33.71(a)
PAS ii Issuance of shares when the proceeds
33.71(b) are used to repay debt or preferred
shares outstanding at the end of the
reporting period
PAS iii Redemption of common shares
33.71(c) outstanding
PAS iv Conversion or exercise of potential
33.71(d) common shares, outstanding at the
end of the reporting period, into
common shares
PAS v Issuance of warrants, options or
33.71(e) convertible securities
PAS vi Achievement of conditions that would
33.71(f) result in the issue of contingently
issuable shares
PAS 10.22 (e) A non-adjusting event after the
f reporting period requiring
disclosure: Major ordinary share
transactions and potential ordinary share
transactions after the reporting period.
(PAS 33 requires an entity to disclose a

description of such transaction, other than

when capitalization or bonus issues, share
splits or reverse share splits all of which are
required to be adjusted under PAS 33.)
PAS 33.67 (f) EPS is presented for every period for
which an income statement is presented. If
diluted EPS is reported for at least one
period, it should be reported for all periods
presented, even if it equals basic EPS. If
basic and diluted EPS are equal, dual
presentation can be achieved in one line on
the face of the income statement.
PAS 33.68 (g) An entity that reports a discontinuing
operation should disclose the basic and
diluted amounts per share for the
discontinuing operation either on the face
of the income statement or in the notes to
the financial statements.
PAS 33.72 (h) Financial instruments generating potential
common shares may incorporate terms and
conditions that affect the measurement of
basic and diluted EPS. These terms and
conditions may determine whether any
potential common shares are dilutive and,
if so, the effect on the weighted average
number of shares outstanding and any
consequent adjustments to income or loss
attributable to equity holders. The
disclosure of the terms and conditions of
such financial instruments and other
contracts is encouraged, if not otherwise
required (refer to PAS 32).
SECTION VI - STATEMENT OF CHANGES IN EQUITY

A04a Statement of Changes in Equity
SRC Rule A The statement of changes in equity
68, contains at least one-year comparative
Section statements.
5.c; SEC
checklist
Section Rule 68.1, the statement of changes in
4.b.ii equity should contain a comparative three-
year statement.
PAS C Present as a primary financial statement a
1.10(c) statement of changes in equity for the
period.
PAS D Actuarial gains and losses recognized in
19.93B other comprehensive income as permitted
by paragraph 93A of PAS 19 shall be

presented in the statement of

A. Statement of Changes in Equity

PAS 1.106 (1) Disclose the following on the face of the
statement:
PAS (a) Total comprehensive income for the
1.106(a) period, showing separately the total
amounts attributable to owners of the
parent and to non-controlling interest;
PAS (b) For each component of equity, the
1.106(b) effects of retrospective application or
retrospective restatement recognized
with PAS 8;
PAS (c) The amounts of transactions with
1.106(c) owners in their capacity as owners,
showing separately contributions by
and distributions to owners; and
PAS (d) For each component of equity, a
1.106(d) reconciliation between the carrying
amount at the beginning and the end
of the period, separately disclosing
changes resulting from:
i profit or loss;
ii other comprehensive income; and
iii transactions with owners in their
capacity as owners, showing
separately contributions by and
distributions to owners and
changes in ownership interests in
subsidiaries that do not result in a
loss of control.
PAS 1.107 (2) Disclose either within the statement of
changes in equity or in the notes the
following:
PAS 1.107 (a) Distributions to owners (for example,
; 32.35 dividends) debited directly to equity,
net of any related income tax benefit,
and the related amount per share;
PAS 1.107 (b) Capital transactions with equity
holders:
PAS i issue of share capital;
1.79(a)ii;
1.109
PAS 1.109; ii purchase of own shares; and
32.33;
32.34
PAS 32.22 iii contracts that will be settled by the
entity (receiving or) delivering a
fixed number of its own equity
instruments in exchange for a fixed

amount of cash or another financial

asset;
PAS 32.35 (c) Transaction costs, directly resulting
from transactions with owners in their
capacity as owners (such as equity
contributions, reacquisitions of the
entity's own equity instruments,
dividends and issuance of share
capital), are deducted from equity
PAS 1.108 (d) Disclose the accumulated balance of
retained earnings (i.e. accumulated
income or loss) and the accumulated
balance of each class of other
comprehensive income at the
beginning of the period and at the end
of the reporting period, and the
changes during the period
PAS (e) A reconciliation, separately disclosing
1.106(d); each change, between the carrying
79 amount at the beginning and the end
of each period, either in the statement
of financial position or the statement
of changes in equity, or in the notes,
for:
PAS 1. i each class of share capital
79(a)
(1) the number of shares authorised;
(2) the number of shares issued and
fully paid, and issued but not fully
paid;
(3) par value per share, or that the
shares have no par value;
(4) a reconciliation of the number of
shares outstanding at the beginning
and at the end of the period;
(5) the rights, preferences and
restrictions attaching to that class
including restrictions on the
distribution of dividends and the
repayment of capital;
(6) shares in the entity held by the
entity or by its subsidiaries or
associates; and
(7) shares reserved for issue under
options and contracts for the sale of
shares, including terms and
amounts.
PAS 1. ii additional paid in capital

106(d)
PAS 1. iii each reserve in equity, including the

79(b) following:
PAS (1) revaluation reserve for property,
16.77(f) plant and equipment;
PAS (2) revaluation reserve for
38.124(b) intangible assets;
PFRS 7.20 (3) revaluation reserve for
available-for-sale financial
assets;
PFRS 7.23 (4) hedging reserve for cash flow
hedges;
PAS (5) foreign exchange translation
21.52(b) reserve;
PAS (6) aggregate current or deferred
12.81(a) tax relating to items charged or
credited to equity. It is useful to
disclose the analysis by
category of temporary
differences;
PFRS 2.50 (7) equity-settled share-based
payment transactions;
PAS 1.108 iv accumulated income or loss
(retained earnings or deficit) and
the accumulated balance of each
class of other comprehensive
income.
PAS 32.28 (3) Equity conversion element of convertible
debt.
PAS (4) Disclose, either in the statement of
1.79(b); financial position or the statement of
16.77(f); changes in equity, or in the notes, a
38.124(b) description of the nature and purpose or
each reserve within the equity, including
restrictions on the distribution of the
revaluation reserves.
PAS (5) For each class of assets, disclose the
36.126(c) amount of impairment losses on revalued
& (d) assets and the amount of reversals of
impairment losses, recognized directly in
equity during the period.
PAS 1. (6) Disclose in the notes the amount of
137(a) dividends proposed or declared before the
financial statements were authorized for
issue but not recognised as a distribution to
owners during the period, and the related
amount per share;
PAS (7) Disclose in the notes the amount of any
1.137(b) cumulative preference dividends not
recognized.
IFRIC (8) The change in the revaluation surplus
1.6(d) arising from a change in the existing
decommissioning, restoration and similar

liabilities should be separately identified

and disclosed.
IFRIC 2.13 (9) When a change in the redemption
prohibition of members' shares leads to a
transfer between financial liabilities and
equity, the entity should disclose separately
the amount, timing and reason for the
transfer.
PFRS 5.38 (10) Present separately any cumulative income
or expense recognized directly in other
comprehensive income in relation to a non-
current asset (or disposal group) classified
as held for sale.
PAS 28.39 (11) Disclose in Statement of Changes in Equity
and in the Statement of Comprehensive
Income the investor's share of changes
recognized directly in other comprehensive
income by the Associate.
PAS 32.39 (12) Disclose the amount of transaction costs
accounted for as a deduction from equity in
the period separately in the notes.
A04b General disclosures

C. General disclosures
These disclosures apply irrespective of
whether the entity presented a statement of
changes in equity or a statement of recognized
income or expense.
PAS (1) A description of the nature and purpose of
1.79(ii); each reserve within shareholders’ equity,
PAS including restrictions on the distribution of
16.77(f) the revaluation reserves (this usually
PAS includes details of any restrictions on
38.124(b distributions for each reserve in equity,
) although it is not specified in PAS 1).
PAS (2) The aggregate current and deferred tax
12.81(a) relating to items charged or credited to
equity. It is useful to disclose the analysis by
category of temporary differences.
PAS (3) The amount of impairment losses and the
36.126(c) amount of reversals of impairment losses on
,(d) revalued assets, recognized directly in other
comprehensive income during the period,
for each class of assets.
PAS (4) Disclose the following for each class of
1.79(a) share capital either on the face of the
statement of financial position or the
statement of changes in equity, or in the
notes (this information is usually disclosed
in the notes):
(a) the number of shares authorized;

(b) the number of shares issued and fully

paid, and issued but not fully paid;
(c) par value per share, or that the shares
have no par value;
(d) a reconciliation of the number of shares
outstanding at the beginning and end of
the year;
(e) the rights, preferences and restrictions
attached to each class of share capital,
including restrictions on the distribution
of dividends and the repayment of
capital;
(f) shares in the entity held by the entity
itself or by the entity’s subsidiaries or
associates; and
(g) shares reserved for issuance under
options and sales contracts, including the
terms and amounts.
PAS (5) Certain types of preference shares must be
32.15; classified as liabilities(not in equity). Refer
32.16A- to PAS 32 para. 18 to 20.
16F;
32.18,
20;
32AG25;
32AG26
IFRIC (6) When a change in the redemption
2.13 prohibition leads to a transfer between
financial liabilities and equity, the entity
should disclose separately the amount,
timing and reason for the transfer.
PAS 1.80 (7) An entity without share capital, such as a
partnership, should disclose information
equivalent to that required in PAS 1
paragraph 79(a) (4 above), showing
movements during the period in each
category of equity interest and the rights,
preferences and restrictions attached to
each category of equity interest.
PAS (8) Disclose the amount of dividends proposed
10.12 or declared before the financial statements
PAS were authorized for issue but not recognized
1.137(a) as a distribution to equity holders during the
period, and the related amount per share.
PAS (9) Disclose the amount of any cumulative
1.137(b) preference dividends not recognized.
PFRS (10) Any cumulative income or expense
5.38 recognized directly in other comprehensive
income in relation to a non-current asset (or
disposal group) classified as held for sale.

Notes:
Other detailed disclosure requirements are
included in Disclosure Checklist A2 –
Statement of Financial Position (and
Related Notes).
Presentation of a statement of all changes

in equity is the preferred format over the
statement of total recognized gains and
losses because the latter alternative
presentation also requires presentation of a
reconciliation of opening and closing
balance of share capital, reserves, and
retained earnings in the notes to financial
statements.
PAS However, for those entities who will be
19.93B adopting the Amendment to PAS/IAS 19,
actuarial gains and losses recognized
outside profit or loss should be presented in
a "statement of recognized income and
expense". Those entities should not present
the actuarial gains and losses in a statement
of changes in equity in the columnar format
referred to in paragraph 101 of PAS 1 or any
other format that includes the items
specified in paragraph 97 of PAS1.
SECTION VII - STATEMENT OF CASH FLOWS

A05a Cash flow information
SRC Rule A The cash flow statement contains at least
68, one-year comparative statements.
Section
5.c; SEC
checklist
Section Rule 68.1, statements of cash flows should
4.b.ii contain comparative three-year statements.
1 General presentation
PAS 7.10 (a) Cash flows are classified by operating,
investing and financing activities
PAS 7.18 (b) Cash flows from operating activities are
presented using either:
PAS i Direct method - disclosing the major
7.18(a) classes of gross cash receipts and
gross cash payments
PAS ii Indirect method - adjusting net
7.18(b) income or loss for the effects of:
(1) Transactions of a non-cash nature
(2) Deferrals or accruals of past or
future operating cash receipts or

payments
(3) Items of income or expense
associated with investing or
financing cash flows
PAS 7.21 (c) Present major classes of gross cash
receipts and gross cash payments from
investing and financing activities (except
those cash flows that are properly
reported on a net basis)
PAS 7.22 (d) Cash flows from the following operating,
investing or financing activities may be
reported on a net basis:
PAS i Cash receipts and payments on behalf
7.22(a) of customers when the cash flows
and 7.23 reflect the activities of the customer
rather than the entity such as:
(1) Acceptance and repayment of
demand deposits of a bank
(2) Funds held for customers by an
investment entity
(3) Rents collected on behalf of, and
paid over to, the owners of
properties
PAS ii Cash receipts and payments for items
7.22(b) with quick turnover, large amounts
and 7.23 and short-maturities such as:
(1) Principal amounts relating to
credit card customers
(2) Purchase and sale of investments
(3) Other short-term borrowings, e.g.
those with maturities of three
months or less
PAS 7.28 (e) Disclose separately from cash flows from
operating, investing and financing
activities, the effect of exchange rate
changes on cash and cash equivalents held
or due in foreign currency. This amount
includes the differences, if any had those
cash flows been reported at end of period
exchange rates.
PAS 7.35 (f) Disclose separately cash flows from taxes
on income in operating activities, unless
they can be identified specifically with
financing or investing activities.
PAS 7.31 (g) Disclose separately cash flows from
interest and dividends received.
PAS 7.31 (h) Disclose separately cash flows from
interest and dividends paid.
PAS 7.31 Note: Each cash flows from interest and
dividends received and paid should be
classified in a consistent manner from

period to period as either operating,

investing or financing activities.
PAS 7.33- Interest paid is normally classified as

7.34 either operating or financing activities.
Interest and dividends received are

normally classified as either operating or
investing activities.
Dividends paid are normally classified as

either financing or operating activities.
2 Individual items
PAS 7.35- (i) Cash flows from taxes on income:
7.36
i disclose taxes paid
ii classify taxes paid (or tax benefits
received) as cash flows from operating
activities unless specifically identified
with financing and investing activities
iii when the cash flows are allocated over
more than one class of activity,
disclose the total amount of taxes
paid.
Note: Taxes paid are usually classified as

cash flows from operating activities.
However, when it is practicable to

identify the tax cash flow with an
individual transaction that gives rise to
cash flows that are classified as investing
or financing activities the tax cash flow is
classified as an investing or financing
activity as appropriate.
When tax cash flows are allocated over

more than one class of activity, the total
amount of taxes paid is disclosed.
(j) Acquisitions and disposals of subsidiaries
and other Business Units:
PAS 7.39 i Aggregate cash flows obtaining or
losing control/from acquisitions and
from disposals of subsidiaries or other
business units, presented separately
and classified as investing activities
PAS ii Total consideration paid or received
7.40(a) for acquisitions and disposals of
subsidiaries or other business units
during the period
PAS iii Portion of purchase or disposal

7.40(b) consideration discharged in cash and

and 7.42 cash equivalents (net of cash and cash
equivalents acquired or disposed of)
Classify cash flows arising from changes in

ownership interests in a subsidiary that do
not result in a loss of control as cash flows
from financing activities.
Changes in ownership interests in a

subsidiary that do not result in a loss of
control, such as the subsequent purchase
or sale by a parent of a subsidiary’s equity
instruments, are accounted for as equity
transactions under PAS 27. The resulting
cash flows are classified in the same way
as other transactions with owners
described in paragraph 17 of PAS 7.
PAS iv Cash and cash equivalents in

7.40(c) subsidiary or business unit acquired
or disposed of
PAS v Non-cash assets and liabilities of
7.40(d) subsidiary, or business unit, acquired,
or disposed of, summarized by each
major category
Note: Items (ii) through (v) should

be disclosed in the footnotes
PFRS (k) Discontinued operations - disclose the
5.33(c) amounts of net cash flows from:
operating activities;
investing activities; and
financing activities
Note: These disclosures may be presented
either in the notes to, or on the face of, the
PAS 7.45 (l) Disclose the components of cash and cash
equivalents and present a reconciliation of
amount with equivalent items reported in
PAS 7.48 (m)Disclose the amount of significant cash and
cash equivalent balances held by the entity
that are not available for use by the group,
together with a commentary by
management
3 Changes in ownership interests in
subsidiaries and other businesses (See
Supplementary Disclosure and Content
Checklist - B02, Consolidation, Section 4,
PAS 27 Amendment)

A05b Non-cash investing and financing activities

2 Non-cash investing and financing
activities
PAS 7.43, Disclose relevant information about investing
44 and financing activities that do not require the
use of cash and cash equivalents and that are
excluded from the cash flow statement such as:
(a) Acquisition of assets by either assuming
directly related liabilities or by finance lease
(b) Acquisition of an entity through equity
issuance
(c) Conversion of debt to equity
A05c Other disclosures
The following items are non-mandatory disclosures:

3 Other disclosures
PAS (a) Amount of undrawn borrowing facilities
7.50(a); available for future operating activities and
SEC to settle capital commitments, indicating
Checklist any restrictions as to the use of these
facilities
PAS (b) Aggregate amount of cash flows from each
7.50(b); of operating, investing and financing
SEC activities related to interests in joint
Checklist ventures reported using proportionate
consolidation
PAS (c) Aggregate amount of cash flows that
7.50(c); represent increases in operating capacity
SEC separately from cash flows that are required
Checklist to maintain operating capacity
PAS (d) Amount of cash flows from operating,
7.50(d); investing and financing activities of each
SEC reported industry and geographical
Checklist segment
PAS 7.25 (e) Cash flows arising from transactions in a
foreign currency should be recorded in an
entity’s functional currency by applying to
the foreign currency amount the exchange
rate between the functional currency and
the foreign currency at the date of the cash
flow.
PAS 7.26 (f) The cash flows of a foreign subsidiary
should be translated at the exchange rates
between the functional currency and the
foreign currency at the dates of the cash
flows.
PAS 7.28 Note: Unrealized gains and losses arising
from changes in foreign currency exchange
rates are not cash flows. However, the

effect of exchange rate changes on cash and

cash equivalents held or due in a foreign
currency is reported in the cash flow
statement in order to reconcile cash and
cash equivalents at the beginning and the
end of the period. This amount is presented
separately from cash flows from operating,
investing and financing activities and
includes the differences, if any, had those
cash flows been reported at end of period
exchange rates.
SECTION VIII - FIRST-TIME ADOPTION OF PFRS 1 (To be used only for NPAE or a pre-
need/insurance company adopting PFRS for the first time
A06a General disclosures
1 General Disclosures
Note: While PFRS is used in these
checklists, financial reporting
framework other than PFRS may also
be used, provided the coverage of the
term used is described in the notes to
PFRS 1.21 (a) To comply with PAS 1 (revised), an
entity's first PFRS financial statements
should include at least three statements
of financial position, two statements of
comprehensive income, two separate
income statements (if presented), two
statements of cash flows and two
statements of changes in equity and
related notes, including comparative
information
SRC Rule Note: For non-public companies, at least
68, two-year comparative statement for
Section balance sheet, income statement, cash flow
5.c statement and statement of changes in
equity;
For public companies, at least two-year

comparative statement for balance sheet
SRC Rule and a three-year comparative statement
68.1 for income statement, statement of cash
Sec.4.b.iii flows and statement of changes in equity.
PFRS 1.22 (b) If the first PFRS financial statements
contain historical summaries or
comparative information under previous
GAAP:
i label the previous GAAP information
prominently as not being prepared
under PFRS; and
ii disclose the nature of the main

adjustments that would make it

comply with PFRS. (An entity need
not quantify those adjustments).
A06b Explanation of Transition to PFRS

2 Explanation of Transition to PFRS
PFRS 1.23 (a) Provide an explanation of
how the transition from
previous GAAP to PFRS
affected the reported
financial position, financial
performance and cash flows.
PFRS 1.24 (b) The first PFRS financial
statements should include:
i reconciliations of the
entity's equity reported
under previous GAAP to
its equity under PFRS for
both of the following
dates:
(1) the date of transition
to PFRS; and
(2) the end of the latest
period presented in
the entity's most
recent annual
financial statements
under previous
GAAP;
ii a reconciliation of the
income or loss and/or its
total comprehensive
income reported under
previous GAAP for the
latest period in the
entity's most recent
annual financial
statements to its income
or loss and/or total
comprehensive income
under PFRS for the same
period; and
iii the disclosures that PAS
36 would have required if
the entity had recognized
those impairment losses
or reversals in the period
beginning with the date
of transition to PFRS if
the entity recognized or
reversed any impairment

losses for the first time in

preparing its opening
PFRS statement of
financial position.
PFRS 1.25 The reconciliations
required should give
sufficient detail to enable
users to understand the
material adjustments to
the statement of financial
position and statement of
PFRS 1.25 (c) Disclose and explain the
material adjustments to the
statement of cash flow, if an
entity presented a cash flow
statement under its previous
GAAP.
PFRS 1.26 (d) If an entity becomes aware of
errors made under previous
GAAP, the reconciliations
required by items (b) i and ii
above should distinguish the
correction of those errors
from changes in accounting
policies.
PFRS 1.28 (e) Disclose the fact that the
entity did not present
financial statements for
previous periods in its first
PFRS financial statements.
A06c Designation of financial assets and financial liabilities

3 Designation of financial assets or
financial liabilities
PFRS 1.29 Disclose the fair value of any financial
assets or financial liabilities designated
at fair value through profit or loss or as
available for sale and the carrying
amount in the previous financial
statements designated into each
category at the date of designation and
their classification and carrying amount
in the previous financial statements.
A06d Use of Fair Value as Deemed Cost

4 Use of Fair Value as Deemed Cost
PFRS 1.30 If fair value is used as deemed cost for
an item of PPE, an investment property
or an intangible asset (see paragraphs
D5 and D7 of PFRS 1), the first PFRS

financial statements should disclose, for

each line item in the opening PFRS
statement of financial position:
i the aggregate of those fair values;
and
ii the aggregate adjustment to the
carrying amounts reported under
previous GAAP.
A06e Interim Financial Reports

5 Interim Financial Reports
Note: These disclosures are
required only when the entity
opts to present interim financial
statements.
PFRS 1.32 (a) Interim financial report under
PAS 34 for part of the period
covered by first PFRS financial
statements should include
reconciliations of:
i equity under previous GAAP at
the end of the comparable
interim period to equity under
PFRS at that date; and
ii profit or loss and/or total
comprehensive income under
previous GAAP for the
comparable interim period
(current and year-to-date) to
income or loss under PFRS for
that period.
In addition to the reconciliations
required by i and ii above, an
entity’s first interim financial
report under PAS 34 for part of
the period covered by its first
PFRS financial statements
should include the
reconciliations described in
paragraph 24(a) and (b) of PFRS
1 (supplemented by the details
required by paragraphs 25 and
26 of PFRS 1) or a cross-
reference to another published
document that includes these
reconciliations.
PFRS 1.33 (b) If a first-time adopter did not
disclose information material to
an understanding of the current
interim period in its most recent
annual financial statements

under previous GAAP, its interim

financial report should disclose
that information or include a
cross-reference to another
published document that
includes it.
SECTION IX - PFRS 7 Financial Instruments: Disclosures

PFRS7,6 When PFRS 7 requires disclosures by class of
AppxB1- financial instrument, group the financial
B3 instruments into classes that are appropriate
to the nature of the information disclosed.
Take into account the characteristics of those
financial instruments. Provide sufficient
information to permit reconciliation to the
line items presented in the statement of
financial position.
PFRS7,p7 Disclose information that enables users of the
financial statements to evaluate the
significance of financial instruments for its
financial position and performance.
A07b Categories of financial assets and financial liabilities

A07b Categories of financial assets and
financial liabilities
PFRS7.8 Disclose either on the face of the statement of
financial position or in the notes the carrying
amounts of each of the following categories, as
defined in PAS 39:
(a) financial assets at fair value through profit
or loss,
showing separately:
(i) those designated as such upon initial
recognition;
and
(ii) those classified as held for trading in
accordance
with PAS 39;
(b) held-to-maturity investments;
(c) loans and receivables;
(d) available-for-sale financial assets;
(e) financial liabilities at fair value through
profit or loss,
showing separately:
(i) those designated as such upon initial
recognition; and
(ii) those classified as held for trading in
accordance with PAS 39;
(f) financial liabilities measured at amortized

cost.
A07c Financial assets or financial liabilities at fair value through profit or loss
A07c Financial assets or financial liabilities at
fair value through profit or loss
PFRS 7.9 If a loan or receivable (or group of loans or
receivables) is designated as at fair value
through profit or loss, disclose:
(a) the maximum exposure to credit risk (see
PFRS7p36(a)) of the loan or receivable (or
group of
loans or receivables) at the reporting date;
(b) the amount by which any related credit
derivatives or
similar instruments mitigate that maximum
exposure to credit risk;
(c) the amount of change, during the period
and cumulatively, in the fair value of the
loan or receivable (or group of loans or
receivables) that is attributable to changes
in the credit risk of the financial asset
determined either:
(i) as the amount of change in its fair value
that is not attributable to changes in
market conditions that give rise to market
risk; or
(ii) using an alternative method that the entity
believes more faithfully represents the
amount of change in its fair value that is
attributable to changes in the credit risk of
the asset.Changes in market conditions
that give rise to market risk include
changes in an observed (benchmark)
interest rate, commodity price, foreign
exchange rate or index of prices or rates;
and
(d) the amount of the change in the fair value
of any related credit derivatives or similar
instruments that has occurred during the
period and cumulatively since the loan or
receivable was designated.
PFRS 7.10 If the entity has designated a financial liability
AppxB4 as at fair value through profit or loss in
accordance with paragraph 9 of PAS 39,
disclose:
(a) the amount of change, during the period
and cumulatively, in the fair value of the
financial liability that is attributable to
changes in the credit risk of that liability
determined either:
(i) as the amount of change in its fair value

that is not attributable to changes in

market conditions that give rise to market
risk (see PFRS7AppdxB4); or
(ii) using an alternative method that the entity
believes more faithfully represents the
amount of change in its fair value that is
attributable to changes in the credit risk of
the liability.
Changes in market conditions that give rise to

market risk include changes in a
benchmark interest rate, the price of
another entity’s financial instrument, a
commodity price, a foreign exchange rate
or an index of prices or rates. For contracts
that include a unit-linking feature, changes
in market conditions include changes in the
performance of the related internal or
external investment fund; and
(b) the difference between the financial
liability’s carrying amount and the amount
the entity would be contractually required
to pay at maturity to the holder of the
obligation.
PFRS7.11 Disclose:
AppxB4 (a) the methods used to comply with the
requirements in PFRS7p9(c) and
PFRS7p10(a); and
(b) if the entity believes that the disclosure it
has given to comply with the requirements
in PFRS7p9(c) and PFRS7p10(a) does not
faithfully represent the change in the fair
value of the financial asset or financial
liability attributable to changes in its credit
risk, the reasons for reaching this
conclusion and the factors it believes are
relevant.
A07d Reclassification
A07d Reclassification
PFRS7p12 If the entity has reclassified a financial asset as
one measured:
(a) at cost or amortized cost, rather than at
fair value; or
(b) at fair value, rather than at cost or
amortized cost, disclose the amount
reclassified into and out of each category
and the reason for that reclassification
(see PAS39p51-54).
PFRS7p12 If the entity has reclassified a financial asset
A out of the fair value through profit or loss

category in accordance with PAS 39

paragraphs 50B or 50D or out of the available-
for-sale category in accordance with paragraph
50E of PAS 39, disclose:
(a) the amount reclassified into and out of
each category;
(b) for each reporting period until
derecognition, the carrying amounts and
fair values of all financial assets that
have been reclassified in the current and
previous reporting periods;
(c) if a financial asset was reclassified in
accordance with paragraph 50B, the rare
situation, and the facts and
circumstances indicating that the
situation was rare;
(d) for the reporting period when the
financial asset was reclassified, the fair
value gain or loss on the financial asset
recognized in profit or loss or other
comprehensive income in that reporting
period and in the previous reporting
period;
(e) for each reporting period following the
reclassification (including the reporting
period in which the financial asset was
reclassified) until derecognition of the
financial asset, the fair value gain or loss
that would have been recognized in
profit or loss or other comprehensive
income if the financial asset had not
been reclassified, and the gain, loss,
income and expense recognized in profit
or loss; and
(f) the effective interest rate and estimated
amounts of cash flows the entity expects
to recover, as at the date of
reclassification of the financial asset.
A07e Derecognition
A07e Derecognition
PFRS 7.13 If financial assets have been transferred in
such a way that part or all of the financial
assets do not qualify for derecognition (see
39p15-37), disclose for each class of such
financial assets:
(a) the nature of the assets;
(b)the nature of the risks and rewards of
ownership to which the entity remains
exposed;
(c) when the entity continues to recognize all of

the assets, the carrying amounts of the

assets and of the associated liabilities; and
(d)when the entity continues to recognize the
assets to the extent of its continuing
involvement, the total carrying amount of
the original assets, the amount of the assets
that the entity continues to recognize, and
the carrying amount of the associated
liabilities.
A07f Collateral
A07f Collateral
PFRS 7.14 Disclose:
(a) the carrying amount of financial assets that
the entity has pledged as collateral for
liabilities or contingent liabilities, including
amounts that have been reclassified in
accordance with PAS39p37(a); and
(b) the terms and conditions relating to its
pledge.
PFRS 7.15 When the entity holds collateral (of financial or
non-financial assets) and is permitted to
sell or repledge the collateral in the absence
of default by the owner of the collateral,
disclose:
(a) the fair value of the collateral held;
(b) the fair value of any such collateral sold or
repledged, and whether the entity has an
obligation to return it; and
(c) the terms and conditions associated with
its use of the collateral.
A07g Allowance account for credit losses

A07g Allowance account for credit losses
PFRS 7.16 When financial assets are impaired by credit
losses and the entity records the impairment in
a separate account (for example, an allowance
account used to record individual impairments
or a similar account used to record a collective
impairment of assets) rather than directly
reducing the carrying amount of the asset,
disclose a reconciliation of changes in that
account during the period for each class of
financial assets.
A07h Compound financial instruments with multiple embedded derivatives

A07h Compound financial instruments with
multiple embedded derivatives
PFRS 7.17 If the entity has issued an instrument that
contains both a liability and an equity
component (PAS32p28) and the instrument

has multiple embedded derivatives whose

values are interdependent (such as a callable
convertible debt instrument), disclose the
existence of those features.
A07i Defaults and breaches

A07i Defaults and breaches
PFRS 7.18 For loans payable recognized at the reporting
date,
disclose:
(a) details of any defaults during the period of
principal,
interest, sinking fund or redemption terms
of those loans payable;
(b) the carrying amount of the loans payable in
default at the reporting date; and
(c) whether the default was remedied, or the
terms of the loans payable were
renegotiated, before the financial
PFRS 7.19 If during the period there were breaches of
loan agreement terms other than those
described in PFRS7p18, disclose the same
information as required by PFRS7p18 if those
breaches permitted the lender to demand
accelerated repayment (unless the breaches
were remedied, or the terms of the loan were
renegotiated, on or before the reporting date).
A07j Income statement and equity

i Items of income, expense, gains or loss
i Items of income, expense, gains or loss
PFRS 7.20 Disclose the following items of income,
expense, gains or losses either on the face of
the financial statements or in the notes:
(a) net gains or net losses on:
(i) financial assets or financial liabilities at
fair value through profit or loss,
showing separately those on financial
assets or financial liabilities designated
as such upon initial recognition, and
those on financial assets or financial
liabilities that are classified as held for
trading in accordance with PAS 39;
(ii) available-for-sale financial assets,
showing separately the amount of gain
or loss recognized directly in equity
during the period and the amount
removed from equity and recognized in
profit or loss for the period;
(iii) held-to-maturity investments;

(iv) loans and receivables; and

(v) financial liabilities measured at
amortized cost;
(b) total interest income and total interest
expense (calculated using the effective
interest method) for financial assets or
financial liabilities that are not at fair value
through profit or loss;
(c) fee income and expense (other than
amounts included in determining the
effective interest rate) arising from:
(i) financial assets or financial liabilities
that are not at fair value through profit
or loss; and
(ii) trust and other fiduciary activities that
result in the holding or investing of
assets on behalf of individuals, trusts,
retirement benefit plans and other
institutions;
(d) interest income on impaired financial
assets accrued in accordance with
PAS39AG93; and
(e) the amount of any impairment loss for each
class of financial asset.
ii Other disclosures
ii a.) Accounting policies
ii (a) Accounting policies
PFRS Disclose in the summary of significant
7.21; accounting policies the measurement basis (or
1.117 bases) used in preparing the financial statements
and relevant to an understanding of the financial
statements.
PFRS7 (iii) how the entity has satisfied the conditions
AppxB5 in PAS39p9, PAS39p11A or PAS39p12 for
such designation. For instruments designated
in accordance with PAS39p9(b)(i) of the
definition of a financial asset or financial
liability at fair value through profit or loss,
include a narrative description of the
circumstances underlying the measurement or
recognition inconsistency that would
otherwise arise. For instruments designated in
accordance with PAS39p9(b)(ii) of the
definition of a financial asset or financial
liability at fair value through profit or loss,
include a narrative description of how
designation at fair value through profit or loss
is consistent with the entity’s documented risk
management or investment strategy;

(b)the criteria for designating financial assets as

available for sale;
(c) whether regular way purchases and sales of
financial assets are accounted for at trade date or
at settlement date (see PAS39p38).
(d)when an allowance account is used to reduce
the carrying amount of financial assets impaired
by credit losses:
(i) the criteria for determining when the
carrying amount of impaired financial assets
is reduced directly (or, in the case of a reversal
of a write-down, increased directly) and when
the allowance account is used; and
(ii) the criteria for writing off amounts
charged to the allowance account against the
carrying amount of impaired financial assets;
(e) how net gains or net losses on each
category of financial instrument are determined
(see PFRS7p20(a)), for example, whether the net
gains or net losses on items at fair value through
profit or loss include interest or dividend
income;
(f) the criteria the entity uses to determine
that there is objective evidence that an
impairment loss has occurred (see
PFRS7p20(e)); and
(g) when the terms of financial assets
that would otherwise be past due or impaired
have been renegotiated, the accounting policy for
financial assets that are the subject of
renegotiated terms (see PFRS7p36(d)).
Disclose, in the summary of significant
accounting policies or other notes, the
judgments, apart from those involving
estimations, that management has made in the
process of applying the entity’s accounting
policies and that have the most significant effect
on the amounts recognized in the financial
statements (see PAS1p113).
ii b.) Hedge accounting

ii (b) Hedge accounting
PFRS 7.22 Disclose the following separately for each
type of hedge described in PAS 39 (ie, fair
value hedges, cash flow hedges and hedges of
net investments in foreign operations):

(a) a description of each type of hedge;

(b) a description of the financial instruments
designated as hedging instruments and
their fair values at the reporting date; and
(c) the nature of the risks being hedged.
PFRS 7.23 For cash flow hedges, disclose:
(a) the periods when the cash flows are
expected to occur and when they are
expected to affect profit or loss;
(b) a description of any forecast transaction
for which hedge accounting had
previously been used, but which is no
longer expected to occur;
(c) the amount that was recognized in other
comprehensive income during the period;
(d) the amount that was removed from
equity and included in profit or loss for
the period, showing the amount included
in each line item in the statement of other
comprehensive income; and
(e) the amount that was removed from
equity during the period and included in
the initial cost or other carrying amount
of a non-financial asset or non-financial
liability whose acquisition or incurrence
was a hedged highly probable forecast
transaction.
PFRS 7.24 Disclose separately:
(a) in fair value hedges, gains or losses:
(i) on the hedging instrument; and
(ii) on the hedged item attributable to the
hedged risk;
(b) the ineffectiveness recognized in profit or
loss that arises from cash flow hedges;
and
(c) the ineffectiveness recognized in profit or
loss that arises from hedges of net
investments in foreign operations.
ii c.) Fair value

ii (c) Fair value
PFRS Except as set out in PFRS7p29, for each class
7.25 of financial assets and financial liabilities
(see PFRS7p6), disclose the fair value of that
class of assets and liabilities in a way that
permits it to be compared with its carrying
amount.
PFRS In disclosing fair values, group financial
7.26 assets and financial liabilities into classes,
but offset them only to the extent that their
carrying amounts are offset in the statement

of financial position.
PFRS Disclose:
7.26
(a) the methods and, when a valuation
technique is used, the assumptions
applied in determining fair values of each
class of financial asset or financial
liability. For example, if applicable,
disclose information about the
assumptions relating to prepayment
rates, rates of estimated credit losses, and
interest rates or discount rates;
(b) whether fair values are determined, in
whole or in part, directly by reference to
published price quotations in an active
market or are estimated using a valuation
technique (see PAS39AG71-AG79);
(c) whether the fair values recognized or
disclosed in the financial statements are
determined in whole or in part using a
valuation technique based on
assumptions that are not supported by
prices from observable current market
transactions in the same instrument (ie,
without modification or repackaging) and
not based on available observable market
data. For fair values that are recognized
in the financial statements, if changing
one or more of those assumptions to
reasonably possible alternative
assumptions would change the fair value
significantly, state this fact and disclose
the effect of those changes. For this
purpose, judge the significance with
respect to profit or loss, and total assets
or total liabilities, or, when changes in
fair value are recognized in equity, total
equity; and
(d) if (c) applies, the total amount of the
change in fair value estimated using such
a valuation technique that was recognized
in profit or loss during the period.
PFRS Disclose for each class of financial
7.27 instruments the methods and, when a
valuation technique is used, the assumptions
applied in determining fair values of each
class of financial assets or financial liabilities.
For example, if applicable, an entity discloses
information about the assumptions relating

to prepayment rates, rates of estimated credit

losses, and interest rates or discount rates. If
there has been a change in valuation
technique, the entity shall disclose that
change and the reasons for making it
PFRS Classify fair value measurements using a fair
7.27A value hierarchy that reflects the significance
of the inputs used in making the
measurements. The fair value hierarchy shall
have the following levels:
PFRS (a) quoted prices (unadjusted) in active
7.7A(a) markets for identical assets or liabilities
(Level 1);
PFRS (b) inputs other than quoted prices included
7.27A(b) within Level 1 that are observable for the
asset or liability, either directly (ie as
prices) or indirectly (ie derived from
prices) (Level 2); and
PFRS (c) inputs for the asset or liability that are
7.27A(c) not based on observable market data
(unobservable inputs) (Level 3).
PFRS The level in the fair value hierarchy within
7.27A which the fair value measurement is
categorized in its entirety shall be
determined on the basis of the lowest level
input that is significant to the fair value
measurement in its entirety. For this
purpose, the significance of an input is
assessed against the fair value measurement
in its entirety. If a fair value measurement
uses observable inputs that require
significant adjustment based on
unobservable inputs, that measurement is a
Level 3 measurement. Assessing the
significance of a particular input to the fair
value measurement in its entirety requires
judgment, considering factors specific to the
asset or liability.
PFRS For fair value measurements recognized in
7.27B the statement of financial position an entity
shall disclose for each class of financial
instruments:
PFRS (a) the level in the fair value hierarchy into
7.27B(a) which the fair value measurements are
categorized in their entirety, segregating
fair value measurements in accordance
with the levels defined in paragraph 27A

of PFRS 7.
PFRS (b) any significant transfers between Level 1
7.27B(b) and Level 2 of the fair value hierarchy
and the reasons for those transfers.
Transfers into each level shall be
disclosed and discussed separately from
transfers out of each level. For this
purpose, significance shall be judged with
respect to profit or loss, and total assets
or total liabilities.
PFRS (c) for fair value measurements in Level 3 of
7.27B(c) the fair value hierarchy, a reconciliation
from the beginning balances to the
ending balances, disclosing separately
changes during the period attributable to
the following:
(i) total gains or losses for the period
recognized in profit or loss, and a
description of where they are
presented in the statement of
comprehensive income or the
separate income statement (if
presented);
(ii) total gains or losses recognized in
other comprehensive income;
(iii) purchases, sales, issues and
settlements (each type of movement
disclosed separately); and
(iv) transfers into or out of Level 3 (eg
transfers attributable to changes in
the observability of market data) and
the reasons for those transfers. For
significant transfers, transfers into
Level 3 shall be disclosed and
discussed separately from transfers
out of Level 3.
PFRS (d) the amount of total gains or losses for the
7.27B(d) period in (c)(i) above included in profit or
loss that are attributable to gains or losses
relating to those assets and liabilities held
at the end of the reporting period and a
description of where those gains or losses
are presented in the statement of
comprehensive income or the separate
income statement (if presented).
PFRS (e) for fair value measurements in Level 3, if
7.27B(e) changing one or more of the inputs to

reasonably possible alternative

assumptions would change fair value
significantly, the entity shall state that fact
and disclose the effect of those changes.
The entity shall disclose how the effect of a
change to a reasonably possible alternative
assumption was calculated. For this
purpose, significance shall be judged with
respect to profit or loss, and total assets or
total liabilities, or, when changes in fair
value are recognised in other
comprehensive income, total equity.
PFRS An entity shall present the quantitative
7.27 disclosures required by this paragraph in
tabular format unless another format is more
appropriate.
PFRS If the market for a financial instrument is not
7.28 active, its fair value is established using a
valuation technique (see PAS39AG74-
AG79). The best evidence of fair value at
initial recognition is the transaction price (ie,
the fair value of the consideration given or
received), unless conditions described in
PAS39AG76 are met. There could be a
difference between the fair value at initial
recognition and the amount that would be
determined at that date using the valuation
technique. If such a difference exists,
disclose, by class of financial instrument:
(a) the accounting policy for recognizing that
difference in profit or loss to reflect a
change in factors (including time) that
market participants would consider in
setting a price (see PAS39AG76A); and
(b) the aggregate difference yet to be
recognized in profit or loss at the
beginning and end of the period and a
reconciliation of changes in the balance
of this difference.
PFRS 7.29 Disclosures of fair value are not required:
(a) when the carrying amount is a reasonable
approximation of fair value (for example,
for financial instruments such as short-
term trade receivables and payables);
(b) for an investment in equity instruments
that do not have a quoted market price in
an active market, or derivatives linked to

such equity instruments, that is

measured at cost in accordance with PAS
39 because its fair value cannot be
measured reliably; or
(c) for a contract containing a discretionary
participation feature (as described in
PFRS 4) if the fair value of that feature
cannot be measured reliably.
PFRS 7.30 In the cases described in PFRS7p29(b) and
(c), disclose information to help users of the
financial statements make their own
judgments about the extent of possible
differences between the carrying amount of
those financial assets or financial liabilities
and their fair value, including:
(a) the fact that fair value information has
not been disclosed for these instruments
because their fair value cannot be
measured reliably;
(b) a description of the financial instruments,
their carrying amount, and an
explanation of why fair value cannot be
measured reliably;
(c) information about the market for the
instruments;
(d) information about whether and how the
entity intends to dispose of the financial
instruments; and
(e) if financial instruments whose fair value
previously could not be reliably measured
are derecognized, that fact, their carrying
amount at the time of derecognition, and
the amount of gain or loss recognized.
A07k Nature and extent of risks arising from financial instruments

A07k Nature and extent of risks arising from
financial instruments
PFRS 7.31 Disclose information that enables users of the
financial statements to evaluate the nature and
extent of risks arising from financial
instruments to which the entity is exposed at
the reporting date.
The disclosures required by PFRS7p31-42

should either be given in the financial
statements or incorporated by cross-reference
from the financial statements to some other

statement, such as a management

commentary or risk report, that is available to
users of the financial statements on the same
terms as the financial statements and at the
same time. Without the information
incorporated by cross-reference, the financial
statements are incomplete.
PFRS 7.32 The disclosures required by PFRS7p33-42
focus on the risks that arise from financial
instruments and how they have been managed.
These risks typically include, but are not
limited to, credit risk, liquidity risk and market
risk.
A07l Qualitative disclosures

A07l Qualitative disclosures
PFRS 7.33 For each type of risk arising from financial
instruments, disclose:
(a) the exposures to risk and how they arise;
(b) objectives, policies and processes for
managing the risk and the methods used to
measure the risk; and
(c) any changes in (a) or (b) from the previous
period.
A07m Quantitative disclosures

A07m Quantitative disclosures
PFRS 7.34 For each type of risk arising from financial
AppdxB7 instruments, disclose:
(a) summary quantitative data about
exposure to that risk at the reporting
date. This disclosure should be based on
the information provided internally to
key management personnel of the entity
(as defined in PAS 24), for example the
entity’s board of directors or chief
executive officer;
(b) the disclosures required by PFRS7p36-
42, to the extent not provided in (a),
unless the risk is not material (see
PAS1p29-31 for a discussion of
materiality); and
(c) concentrations of risk if not apparent
from (a) and (b).
PFRS 7 PFRS7p34(c) requires disclosures about
AppdxB8 concentrations of risk. Concentrations of risk
arise from financial instruments that have
similar characteristics and are affected
similarly by changes in economic or other
conditions. The identification of
concentrations of risk requires judgment,

taking into account the circumstances of the

entity. Include in the disclosure of
concentrations of risk:
(a) a description of how management
determines concentrations;
(b) a description of the shared characteristic
that identifies each concentration (for
example, counterparty, geographical
area, currency or market); and
(c) the amount of the risk exposure
associated with all financial instruments
sharing that characteristic.
PFRS 7.35 If the quantitative data disclosed as at the
reporting date is unrepresentative of the
entity’s exposure to risk during the period,
provide further information that is
representative.
i Credit risks
i (a) Credit risk
PFRS Disclose by class of financial instrument:
7.36 (a) the amount that best represents the
AppdxB9 entity’s maximum exposure to credit risk
-10 at the reporting date without taking
account of any collateral held or other
credit enhancements (for example,
netting agreements that do not qualify for
offset in accordance with PAS 32);
(b) in respect of the amount disclosed in (a),
a description of collateral held as security
and other credit enhancements;
(c) information about the credit quality of
financial assets that are neither past due
nor impaired; and
(d) the carrying amount of financial assets
that would otherwise be past due or
impaired whose terms have been
renegotiated.
i a.) Financial assets that are past due or impaired

i Financial assets that are either past due
or impaired
PFRS 7.37 Disclose by class of financial asset:
(a) an analysis of the age of financial assets
that are past due as at the reporting date
but not impaired;
(b) an analysis of financial assets that are
individually determined to be impaired as
at the reporting date, including the factors
the entity considered in determining that
they are impaired; and

(c) for the amounts disclosed in (a) and (b), a

description of collateral held by the entity
as security and other credit enhancements
and, unless impracticable, an estimate of
their fair value.
i b.) Collateral and other credit enhancements obtained

i Collateral and other credit
enhancements obtained
PFRS 7.38 When an entity obtains financial or non-
financial assets during the period by taking
possession of collateral it holds as security or
calling on other credit enhancements (for
example, guarantees), and such assets meet
the recognition criteria in other standards,
disclose:
(a) the nature and carrying amount of the
assets obtained; and
(b) when the assets are not readily
convertible into cash, the policies for
disposing of such assets or for using them
in its operations.
PFRS 7.39 Disclose the following for non-derivative and
derivative financial liabilities:
PFRS (a) a maturity analysis for non-derivative
7.39(a) financial liabilities (including issued
financial guarantee contracts) that shows
the remaining contractual maturities.
PFRS (b) a maturity analysis for derivative
7.39(b) financial liabilities. The maturity analysis
shall include the remaining contractual
maturities for those derivative financial
liabilities for which contractual
maturities are essential for an
understanding of the timing of the cash
flows (see paragraph B11B of PFRS 7).
PFRS (c) a description of how it manages the
7.39(c) liquidity risk inherent in (a) and (b).
PFRS 7 In preparing the maturity analyses required
AppdxB11 by PFRS7p39(a) and (b), use judgment to
determine an appropriate number of time
bands. For example, an entity might
determine that the following time bands are
appropriate:
(a) not later than one month;
(b) later than one month and not later than
three months;
(c) later than three months and not later
than one year; and
(d) later than one year and not later than five
years.

PFRS 7 Disclose a quantitative maturity analysis for

AppdxB11 derivative financial liabilities that shows
B remaining contractual maturities if the
contractual maturities are essential for an
understanding of the timing of the cash
flows. For example, this would be the case
for:
(a) an interest rate swap with a remaining
maturity of five years in a cash flow hedge
of a variable rate financial asset or
liability.
(b) all loan commitments.
PFRS7 Paragraph 39 (a) and (b) of PFRS 7 requires
AppdxB11 an entity to disclose maturity analyses for
C financial liabilities that show the remaining
contractual maturities for some financial
liabilities. In this disclosure:
PFRS 7 When a counterparty has a choice of when an
AppdxB11 amount is paid, include the liability on the
C(a) basis of the earliest date on which the entity
can be required to pay. For example,
financial liabilities that an entity can be
required to repay on demand (for example,
demand deposits) are included in the earliest
time band.
PFRS 7 When an entity is committed to make
AppdxB11 amounts available in instalments, allocate
C(b) each installment to the earliest period in
which the entity can be required to pay. For
example, include an undrawn loan
commitment in the time band containing the
earliest date it can be drawn down.
PFRS 7 For issued financial guarantee contracts the
AppdxB11 maximum amount of the guarantee is
C(c) allocated to the earliest period in which the
guarantee could be called.
PFRS 7 The contractual amounts disclosed in the
AppdxB11 maturity analyses are the contractual
D undiscounted cash flows, for example:
(a) gross finance lease obligations (before
deducting finance charges);
(b) prices specified in forward agreements to
purchase financial assets for cash;
(c) net amounts for pay-floating/receive-
fixed interest rate swaps for which net
cash flows are exchanged;
(d) contractual amounts to be exchanged in a
derivative financial instrument (for
example, a currency swap) for which
gross cash flows are exchanged; and
(e) gross loan commitments.

Such undiscounted cash flows differ from the

amount included in the statement of
financial position because the statement of
financial position amount is based on
discounted cash flows.
ii Market risk
ii a.) Sensitivity analysis
ii Sensitivity analysis
PFRS Unless an entity complies with PFRS7p41,
7.40 disclose:
AppdxB17 (a) a sensitivity analysis for each type of
- market risk to which the entity is exposed
B28 at the reporting date, showing how profit
or loss and equity would have been
affected by changes in the relevant risk
variable that were reasonably possible at
that date;
(b) the methods and assumptions used in
preparing the sensitivity analysis; and
(c) changes from the previous period in the
methods and assumptions used, and the
reasons for such changes.
PFRS 7.41 If the entity prepares a sensitivity analysis,
AppdxB17 such as value at risk, that reflects
-28 interdependencies between risk variables (for
example, interest rates and exchange rates)
and uses it to manage financial risks, it may
use that sensitivity analysis in place of the
analysis specified in PFRS7p40. Also
disclose:
(a) an explanation of the method used in
preparing such a sensitivity analysis, and
of the main parameters and assumptions
underlying the data provided; and
(b) an explanation of the objective of the
method used and of limitations that may
result in the information not fully
reflecting the fair value of the assets and
liabilities involved.
ii b.) Other market risk disclosures

ii Other market risk disclosures
PFRS 7.42 When the sensitivity analyses disclosed in
accordance with PFRS7p40 or PFRS7p41 are
unrepresentative of a risk inherent in a
financial instrument (for example, because
the year-end exposure does not reflect the
exposure during the year), disclose that fact
and the reason the sensitivity analyses are

unrepresentative.
PFRS 7.43 Apply PFRS 7 for annual periods beginning
on or after 1 January 2007. Earlier
application is encouraged. If an entity applies
this PFRS for an earlier period, disclose that
fact.
iii Liquidity risk

PFRS 7. Disclose a maturity analysis of financial
B11E assets it holds for managing liquidity risk
(eg financial assets that are readily saleable
or expected to generate cash inflows to meet
cash outflows on financial liabilities), if that
information is necessary to enable users of
its financial statements to evaluate the
nature and extent of liquidity risk.
Iv PFRS 7. Other factors that an entity might consider in
B11F providing the disclosure required in
paragraph 39(c) of PFRS 7 include, but are
not limited to, whether the entity:
(a) has committed borrowing facilities (eg
commercial paper facilities) or other lines
of credit (eg stand-by credit facilities)
that it can access to meet liquidity needs;
(b) holds deposits at central banks to meet
liquidity needs;
(c) has very diverse funding sources;
(d) has significant concentrations of liquidity
risk in either its assets or its funding
sources;
(e) has internal control processes and
contingency plans for managing liquidity
risk;
(f) has instruments that include accelerated
repayment terms (eg on the downgrade of
the entity's credit rating);
(g) has instruments that could require the
posting of collateral (eg margin calls for
derivatives);
(h) has instruments that allows the entity to
choose whether it settles its financial
liabilities by delivering cash (or another
financial asset) or by delivering its own
shares; or
(i) has instruments that are subject to
master netting agreements.
A07n Reclassification
PFRS7p12 1. If the entity has reclassified a financial
asset (in accordance with paragraphs PAS

39 paragraphs 51-54) as one measured:

(a) at cost or amortized cost, rather than
at fair value; or
(b) at fair value, rather than at cost or
amortized cost, disclose the amount
reclassified into and out of each
category and the reason for that
reclassification
Disclose the amount reclassified into and out
of each category and the reason for that
reclassification.[
PFRS7p12 2. If the entity has reclassified a financial
A asset out of the fair value through profit
or loss category in accordance with PAS
39 paragraphs 50B or 50D or out of the
available-for-sale category in accordance
with paragraph 50E of PAS 39, disclose:
(a) the amount reclassified into and out
of each category;
(b) for each reporting period until
derecognition, the carrying amounts
and fair values of all financial assets
that have been reclassified in the
current and previous reporting
periods;
(c) if a financial asset was reclassified in
accordance with paragraph 50B, the
rare situation, and the facts and
circumstances indicating that the
situation was rare;
(d) for the reporting period when the
financial asset was reclassified, the
fair value gain or loss on the financial
asset recognized in profit or loss or
other comprehensive income in that
reporting period and in the previous
reporting period;
(e) for each reporting period following
the reclassification (including the
reporting period in which the
financial asset was reclassified) until
derecognition of the financial asset,
the fair value gain or loss that would
have been recognized in profit or loss
or other comprehensive income if the
financial asset had not been
reclassified, and the gain, loss,
income and expense recognized in
profit or loss; and
(f) the effective interest rate and
estimated amounts of cash flows the

entity expects to recover, as at the

date of reclassification of the financial
asset.
Section X : PAS 1 - CAPITAL DISCLOSURES (AMENDMENTS)

1 Capital disclosures
PAS 1 Capital disclosures
PAS 1.134 The entity should disclose information that
enables users of its financial statements to
evaluate its objectives, policies and
processes for managing capital.
PAS 1.135 To comply with paragraph 134, the entity
should disclose the following:
(a) qualitative information about its
objectives, policies and processes for
managing capital, including (but not
limited to):
(i) a description of what it manages as
capital;
(ii) when an entity is subject to externally
imposed capital requirements, the
nature of those requirements and how
those requirements are incorporated
into the management of capital; and
(iii) how it is meeting its objectives for
managing capital;
(b) summary quantitative data about what it
manages as capital. Some entities regard
some financial liabilities (for example,
some forms of subordinated debt) as
part of capital. Other entities regard
capital as excluding some components of
equity (for example, components arising
from cash flow hedges);
(c) any changes in (a) and (b) from the
previous period;
(d) whether during the period it complied
with any externally imposed capital
requirements to which it is subject; and
(e) when the entity has not complied with
such externally imposed capital
requirements, the consequences of such
non-compliance.
These disclosures should be based on the
information provided internally to the
entity’s key management personnel.
PAS 1.136 An entity may manage capital in a number
of ways and be subject to a number of
different capital requirements. For example,
a conglomerate may include entities that
undertake insurance activities and banking

activities, and those entities may also

operate in several jurisdictions. When an
aggregate disclosure of capital requirements
and how capital is managed would not
provide useful information or distorts a
financial statement user’s understanding of
an entity’s capital resources, the entity
should disclose separate information for
each capital requirement to which the entity
is subject.
Section X1: OTHER MATTERS

1 Other matters
Statement of Financial Position (and
Related Notes)
Measurement Uncertainty
Note that certain standards require further
specific disclosures about sources of
estimation uncertainty and judgments. The
specific disclosure requirements in the other
sections of this disclosure checklist include:
Methods and assumptions applied in
determining fair values
for:
PAS (i) investment property (Section A2.2, par.
40.75(c)- 6);
(e)
PAS (ii) property, plant and equipment (Section
16.77(c) A5.3, pars. 3(c) and 3(d));
(d)
PAS (iii) intangible assets (Section A5.5, par. 5);
38.124(c)
PAS (iv) impairment of assets – basis and key
36.130,13 assumptions for determining
1,133,134 impairment losses or reversals (Section
A7.7, pars. 1 and 4);
PFRS (v) business combinations – basis for
3.60,B64( determining fair value of instruments
f) issuable in a business combination
(Section A7.1 par. (e)) and adjustments
made to provisional values (Section A7.1
par. 6);
PFRS 7.27 (vi) financial instruments (Section A8);
PFRS (vii) share-based payments (Section B7,
2.46 pars. 2
to 5); and
PAS 41.47 (viii) agricultural produce and biological
assets (Section C2.1 par. 5).
Other relevant disclosures:
(i) impairment of assets – key assumptions
for cash flow projections, periods

covered by projections, growth rates for

extrapolations and discount rates in
determining value in use (Section A7.7,
pars. 1 and 4);
PAS (ii) post-employment defined benefit plans
19.120A(u – principal actuarial assumptions
) (Section A5.17, pars. 14 and 15).
PFRS 4.37 (iii) insurance – process used to determine
assumptions that have the greatest effect
on the measurement of recognized
assets, liabilities, income and expenses
from insurance contracts. When
practicable, an insurer shall also give
quantified disclosure of those
assumptions; and
PAS 36.35 (iv) retirement benefit plan entities –
actuarial assumptions (Section F, par.
2).
Contingencies
PAS 37.88 Where a provision and a contingent liability
arise from the same set of circumstances,
the link between the provision and the
contingent liability should be shown.
PAS 37.89 Disclose for contingent assets, where an
inflow of economic benefits is probable:
(a) a brief description of the nature of the
contingent asset;
(b) where practicable, an estimate of their
financial effect, measured under PAS 37
pars. 36-52; and
PAS 37.91 (c) where this information is not disclosed
because it is not practicable to do so,
disclose that fact.
PAS 37.92 (e) the general nature of the contingencies;
(f) the fact that the required information
has not been disclosed; and
(g) the reason why the required information
has not been disclosed.
(h) In extremely rare cases, disclosure of
some or all of the information required
by paragraphs 84-89 of PAS 37 can be
expected to prejudice seriously the
position of the entity in a dispute with
other parties on the subject matter of the
provision, contingent liability or
contingent asset.
In such cases, an entity:

(i) need not disclose the information,
(ii) but shall disclose the general nature of
the dispute, together with the fact that,

and
(iii) reason why, the information has not
been disclosed.the general nature of the
contingencies;
Disclose contingent liabilities arising from:

PAS (a) post-employment benefit obligations;
19.125 and
PAS (b) termination benefits (for example, due to
19.141 the uncertainty over the number of
employees who will accept an offer of
termination benefits).
Events after the reporting period
PAS Disclose the amount of income tax
12.81(i) consequences of dividends that were
proposed or declared after the end of the
PAS If income taxes are payable at a higher or
12.82A lower rate if part or all of the net profit or
retained earnings is paid out as a dividend
to shareholders, disclose:
(a) the nature of the potential income tax
consequences that would result from the
payment of dividends; and
(b) the amounts of the potential income tax
consequences practically determinable
and whether there are any potential
income tax consequences not practically
determinable.


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Isla Lipana & Co.

• A ('Applicable') - the section is applicable to the reporting entity

• Y (‘YES’) – the appropriate disclosure has been made; or

SECTION 1- REPORTS, COMPONENTS, REPRESENTATIVE and STATEMENT OF

1 Components of Financial Reports submitted to SEC

NOTE: Refer to the Knowledge Link

Such statement may be incorporated in the

To support the above statement, the auditor

1. Obtain a certification from the issuer’s

2. Inspect the stock and transfer book and

PFRS Disclosure and Content Checklist 5

Ref Components YES No NA NM Remarks

2 Statement of Management's Responsibility

The reporting period stated in the Statement

SRC Rule 2 The statement should contain the following

PFRS Disclosure and Content Checklist 6

provides for necessary internal

3 Report of Independent Auditor

PFRS Disclosure and Content Checklist 7

certifying partner shall sign his/her own

4 Representation as to the audit

Audited financial statements of companies

PFRS Disclosure and Content Checklist 8

shall give rise to the imposition of

The Commission reserves the right to obtain

7 Additional Reportorial/Communication Requirements (Refer to AAN 2006-39) for covered

SEC 1 Report the following to the SEC, in the

PFRS Disclosure and Content Checklist 9

SECTION II - SCHEDULES REQUIRED FOR REPORTING

Schedules required for reporting companies under Section 17.2

1. In support of the caption Current

2. In support of the caption Other Short-

PFRS Disclosure and Content Checklist 10

3. In support of the caption Current

SRC Rule Schedule B. Amounts Receivable from

This schedule shall be filed with respect to each

SRC Rule Schedule C. Non-current Marketable

1. The sum of the captions Non-current

2. There has been no material changes in the

PFRS Disclosure and Content Checklist 11

1. The amount of all indebtedness of Related

2. There has been no material changes in the

1. The total Indebtedness to Related Parties

SECTION III - GENERAL DISCLOSURES AND ACCOUNTING POLICIES

A01a General Disclosures

PFRS Disclosure and Content Checklist 12

conditions in accordance with the definitions

An entity may use titles for the

PFRS Disclosure and Content Checklist 13

documents the financial statements (i.e.,

PAS 1.11 Present with equal prominence all of the

Note: Financial statements should not be

PFRS Disclosure and Content Checklist 14

the separate income statement (if

SRC Rule (i) Describe reason(s) for filing a single-

PFRS Disclosure and Content Checklist 15

for the period

If neither the parent entity nor the