FINANCIAL STATEMENTS - 2.

Held primarily for trading;

- The financial statements are the end product or main - 3. Due to be settled within 12 months after the
output of the financial accounting process. The reporting period; or
structured representation of an entity’s financial position - 4. The entity does not have the right at the end
and results of its operations. of the reporting period to defer settlement of the
-The objective of general-purpose financial statements is liability for at least twelve months after the
to provide information about the financial position, reporting period.
financial performance, and cash flows of an entity that is All other liabilities are classified as noncurrent.
useful to a wide range of users in making economic
decisions. PRESENTATION
A complete set of financial statements comprises: Classified: current and noncurrent presentation
STATEMENT OF FINANCIAL POSITION Unclassified: -based on liquidity
- a formal statement showing the three elements - shows no distinction between current and
comprising financial position namely: noncurrent items
o Assets STATEMENT OF FINANCIAL PERFORMANCE
o Liabilities INCOME
o Equity Comprehensive income is the change in equity during a
STATEMENT OF COMPREHENSIVE INCOME period resulting from transactions and other events,
- A formal statement showing the financial other than changes resulting from transactions with
performance of an entity for a given period of owners in their capacity as owners.
time. Comprehensive income includes:
STATEMENT OF CHANGES IN EQUITY - Components of profit or loss - income minus
- A financial statement that measures the changes expenses including tax expense and any income
in owners' equity throughout a specific or loss from discontinued operations.
accounting period. - Components of other comprehensive income.
STATEMENT OF CASH FLOWS Other Comprehensive Income (OCI)
- it provides the cash flow information during the 1. Unrealized gain or loss on equity investments
period. measured at fair value through other
NOTES TO THE FINANCIAL STATEMENTS comprehensive income (FVOCI).
- comprising a summary of significant accounting 2. Unrealized gain or loss on debt investments
policies and other explanatory information. measured at fair value through other
1. Statement of compliance with IFRS 1 comprehensive income (FVOCI).
2. Summary of significant accounting policies 3. Unrealized gain or loss from derivative contracts
3. Supporting information for items presented in the designated as cash flow hedge.
FS. 4. Revaluation Surplus.
4. Other disclosures, including contingent liabilities, 5. Remeasurement Gains and losses for defined
and nonfinancial disclosures. benefit plans.
6. Change in fair value arising from credit risk for
STATEMENT OF FINANCIAL POSITION financial liabilities measured at fair value through
ASSETS profit or loss (FVPL)
Current Assets: - assets that are: 7. Translation gains and losses of foreign
- 1. Expected to be realized, sold, or consumed in operations.
the entity’s normal operating cycle; Other Comprehensive Income (OCI) subsequently
- 2. Held primarily for trading; reclassified to Retained Earnings: (DECS)
- 3. Expected to be realized within 12 months after 1. Remeasurement Gains and losses for defined
the reporting period; or benefit plans.
- 4. Cash or cash equivalent, unless restricted 2. Unrealized gain or loss on equity investments
All other assets are classified as noncurrent. measured at fair value through other
comprehensive income (FVOCI).
LIABILITIES 3. Change in fair value arising from credit risk for
Current Liabilities: - liabilities that are: financial liabilities measured at fair value through
- 1. Expected to be settled in the entity’s normal profit or loss (FVPL).
operating cycle; 4. Revaluation Surplus.
Other Comprehensive Income (OCI) subsequently STATEMENT OF CHANGES IN EQUITY
reclassified to P/L: shows the following information:
1. Unrealized gain or loss on debt investments 1. Effects of changes in accounting policies
measured at fair value through other (retrospective application) or correction of prior
comprehensive income (FVOCI). period errors (retrospective application);
2. Unrealized gain or loss from derivative contracts 2. Total comprehensive income for the period;
designated as cash flow hedge. 3. Additional investments; and
3. Translation gains and losses of foreign 4. Dividends distributed during the period
operations.

NOTES TO THE FINANCIAL STATEMENTS

- provides information in addition to those
presented in the other financial statements.
- all the financial statements are intended to be
STATEMENT OF CASH FLOWS read in conjunction with the notes.
OPERATING ACTIVITIES - information in the other financial statements
- Cash flows relating to the normal operation of shall be cross-referenced to the notes
the business
INVESTING ACTIVITIES 1. Statement of compliance with the PFRS.
- cash activities involving the acquisition and 2. Summary of significant accounting policies.
disposal of noncurrent assets and other 3. Disaggregation (breakdowns) of the line items in
investments the other financial statements and other
FINANCING ACTIVITIES supporting information.
- cash activities that affect the entity’s equity 4. Other disclosures required by PFRSs.
capital and borrowing structure.
OPERATING ACTIVITIES ----> affect profit or loss
INVESTING ACTIVITIES ----> affect noncurrent assets and
other investments
FINANCING ACTIVITIES ----> affect borrowings and
equity