Change in accounting estimate currently and

prospectively
Change in accounting policy retrospective
adjustment
Recognition and measurement
a. Cause and effect
Ex. Casualty losses, loss on sale of assets
recognized at date of sale, impairment
loss, inventory write down (NRV lower than
cost)
b. Immediate recognition no expected
future benefits
c. Systematic and rational allocation
benefits more than one interim period
Ex. Rent, insurance, property taxes,
repairs expense if benefits the remainder
of the year, employee bonuses,
depreciation and amortization

1. NCA/ Disposal Group

a. Made available for sale under normal
conditions of selling
b. Highly probable - appropriate level of
management , active program to
search for a buyer
c. Marketed at a selling price which is
reasonable to its current FMV
d. Should be completed within a year
after the approval
POST TAX GAIN/LOSS for Discontinued
Operations
Revenue/Sales
- expenses
- re-measurement loss or Actual gain/loss
- termination cost of employee
- income tax expense
+ income tax benefit
= POST TAX GAIN/LOSS

OPERATING SEGMENT
1. Segment revenue outside +
intersegment
Segment expenses directly attributable
+ allocated expense
Segment results/ Profit or Loss Segment
revenue - Segment expenses
Segment Assets Current Assets, PPE, etc.
- additional information requires disclosure
2. Which is Reportable
QUANTITATIVE CRITERIA
a. 10% Segment Revenue is greater than
or equal 10% of the combined or total
revenue of all segment
b. Segment results is greater than or
equal to 10% of the combined profit of
all segments or combined losses of all
segment whichever is HIGHER
(ABSOLUTE)
Segment assets is greater than or
equal 10% of the combined or Total
asset of all segment

No depreciation while being held for sale

Ceases to qualify as NCA held for sale CV
had it not been reclassified as NCA Held
for Sale or Recoverable amount whichever
is LOWER
*the RECOVERABLE AMOUNT is the higher
between VALUE IN USE and FV LESS COST
TO SELL
IN SUMMARY:
Upon re-class 1.BS date NCHS measured at the
lower between Carrying Value and Recoverable
amount ( Fair Value Cost to sell)
1. If LOSS recognize
2. If GAIN ignored unless reversal of
previous loss
NCHS to PPE 2. No longer qualify as a NCHS
measured at the lower between the CV had it not
been reclassified as Held for sale or Recoverable
Value (HIGHER between FMV cost to sell or
Value in Use)

Revenue from outside of reportable segment is

greater than or equal to 75% of the TOTAL
CONSOLIDATED REVENUE (Outside customers
only) of all segment = MINIMUM OUTSIDE
REVENUE
TO BE REPORTABLE = Unconsolidated Revenue
(intersegment +outside customers) times 10%
DISCONTINUED OPERATION/NCA HELD FOR SALE

SHAREHOLDERS EQUITY
a. Issuance
Cash

OS
SP
b. Reacquisition of Treasury Shares
Treasury Shares ( at cost)
Cash
c. Reissued
No capital gain/loss ( Reissue price = cost
Cash
Treasury Shares
Reissue Price > Cost = GAIN
Cash (Reissue Price)
Share Premium TS (bal fig)
Treasury Shares (cost)
Cost > Reissue Price = LOSS
Cash(Reissue Price)
Share Premium TS (exhaust)
Retained Earnings
Treasury Shares (cost)
d. Retirement
CV = Original issue price ( cancel
par and SP that went with it) , HOW MUCH
SHARES ORIGINALLY ISSUED AT
No capital gain/loss ( Original Issue price =
cost)
Ordinary Shares
Share premium
Treasury Shares
Capital gain ( OIP > Cost)
Ordinary Shares
Share Premium OS
Treasury Shares
Share Premium TS
Capital loss ( Cost > OIP)
Ordinary Shares
Share Premium OS
Share Premium TS
RE
TS

e. Convertible Preference Share

( from PS to OS)
a. Issuance
Cash
Preference Share Capital

Share Premium
b. Conversion retiring PS to give way for
the issuance of OS, how much is the
original issue price
PS OIP > Aggregate PV OS =
Capital Gain
PS
SP PS
OSC
SP OS
PS OIP < Aggregate PV OS =
Capital Loss
ACCOUNTS RECEIVABLE FINANCING
Transfer
Borrowing
Sale
Pledging
Yes
No
Assignment
Yes
No
Factoring
Yes
Yes
Discounting
Yes
Yes
If it is a borrowing do not remove from AR
If it is a sale remove from AR
Interim Reporting
Preparation of FS for a period covering less
than 12 mos. (Semi, quarterly)
Periods to be reported
1. SFP(BS) as of period ended,
immediate preceding year
Ex. As of June 30, 2013 VS as of Dec
31,2012
2. SCI (I/S)
Ex. 3 months ended 6/30/13 & 6
months ended 6/30/13 VS 3 months
ended 6/30/12 VS 6 months ended
6/30/12
3. SE & SCF
Ex. As of June 30,2013 VS as of June
30,2012