PAS 1

PAS 1 - Philippine Accounting Standard 1 Presentation of Financial Statements

General purpose financial statements - financial statements intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs.

Intra-comparability - refers to the comparability of financial statements of the same entity but from one period to another.

Inter-comparability - refers to the comparability of financial statements between different entities.

PFRSs - Philippine Financial Reporting Standards

Financial statements - the structured representation of an entity's financial position and results of its operations.

Statement of financial position - shows the entity's financial condition (i.e., status of assets, liabilities and equity) as at a certain date.

Statement of profit or loss and other comprehensive income - presents information on profit or loss, other comprehensive income, and comprehensive income.

Statement of changes in equity - shows the following information: (a) effects of change in accounting policy (retrospective application) or correction of prior period error (retrospective restatement), (b) total comprehensive income for the period, and (c) for each component of equity, a reconciliation between the carrying amount at the beginning and the end of the period.

Statement of cash flows - presents information about the cash flows of an entity that is useful to a wide range of users in making economic decisions.

Notes - provides information in addition to those presented in the other financial statements.

Fair presentation - faithfully representing, in the financial statements, the effects of transactions and other events in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Conceptual Framework.

Going concern - the entity has an intention to continue as a going concern and has no other alternative but to do so.

Accrual basis of accounting - all financial statements shall be prepared using the accrual basis of accounting except for the statement of cash flows, which is prepared using cash basis.

Materiality - each material class of similar items is presented separately.

Aggregation - individually immaterial items are aggregated with other items.

Offsetting - assets and liabilities or income and expenses are presented separately and are not offset.

Frequency of reporting - financial statements are prepared at least annually.

Comparative information - an entity to present comparative information in respect of the preceding period for all amounts reported in the current period's financial statements.

Additional statement of financial position - a complete set of financial statements includes an additional statement of financial position when certain instances occur.

Consistency of presentation - the presentation and classification of items in the financial statements is retained from one period to the next.

Line item - a class of similar items.

Presentation currency - the currency in which the financial statements are presented.

Level of rounding - the level of rounding used (e.g., thousands, millions, etc.).

Management's Responsibility over Financial Statements - the management is responsible for an entity's financial statements.

Statement of Management's Responsibility for Financial Statements - a document that is attached to the financial statements as a cover letter.

Current assets - assets that are: (a) expected to be realized, sold, or consumed in the entity's normal operating cycle, (b) held primarily for trading, (c) expected to be realized within 12 months after the reporting period, or (d) cash or cash equivalent, unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

Non-current assets - all other assets that are not current assets.

Current liabilities - liabilities that are: (a) expected to be settled in the entity's normal operating cycle, (b) held primarily for trading, (c) due to be settled within 12 months after the reporting period, or (d) the entity does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period.

Non-current liabilities - all other liabilities that are not current liabilities.

Working capital - Current Assets - Current Liabilities

Operating cycle - the time between the acquisition of assets for processing and their realization in cash or cash equivalents.

Refinancing agreement - the replacement of an existing debt with a new one but with different terms.

Loan facility - a credit line.

Liabilities payable on demand - liabilities that are payable upon the demand of the lender.

Nature of expense method - expenses are aggregated according to their nature.

Function of expense method - an entity classifies expenses according to their function.

Other Comprehensive Income (OCI) - comprises items of income and expense (including reclassification adjustments) that are not recognized in profit or loss as required or permitted by other PFRSs.

Reclassification Adjustments - amounts reclassified to profit or loss in the current period that were recognized in other comprehensive income in the current or previous periods.

Total Comprehensive Income - the change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.

Retrospective adjustments - adjustments to the opening balance of retained earnings rather than as changes in equity during the period.

Retrospective restatements - adjustments to the opening balance of retained earnings rather than as changes in equity during the period.

Contributed equity - each class of contributed equity.

Other comprehensive income - the accumulated balance of each class of other comprehensive income.

Retained earnings - the accumulated balance of retained earnings.

Dividends - the amount of dividends declared.

Owner changes in equity - changes in equity resulting from transactions with owners in their capacity as owners.

Non-owner changes in equity - changes in equity resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.

Domicile - the country of incorporation.

Legal form - the legal form of the entity.

Registered office - the address of the registered office.

Principal place of business - the principal place of business.

Basis of preparation - the basis on which the financial statements have been prepared.

Statement of compliance - a statement of compliance with the PFRSs.

Summary of significant accounting policies - narrative descriptions of the line items in the other financial statements, their recognition criteria, measurement bases, derecognition, transitional provisions, and other relevant information.

Disaggregation - breakdowns of the line items in the other financial statements.

Contingent liabilities - liabilities that are possible obligations arising from past events.

Unrecognized contractual commitments - contractual commitments that are not recognized as liabilities.

Non-financial disclosures - disclosures that are not financial in nature.

Events after the reporting date - events that occur after the reporting date.

Changes in accounting policies - changes in the accounting policies used by the entity.

Accounting estimates - estimates made by management in preparing the financial statements.

Corrections of prior period errors - corrections of errors made in the financial statements of a prior period.

Related party disclosure - disclosure of related party transactions.

Judgments and estimations - judgments and estimations made by management in preparing the financial statements.

Capital management - the entity's policies and objectives for managing its capital.

Cumulative preference dividends - dividends that have accumulated on preference shares.