Financial Statements Flashcards
Is offsetting allowed for FS?
No
This FS shows the liquidity and solvency of a company.
Balance Sheet (As of)
Ano itsura ng “account form” na balance sheet?
Left | Right
Assets | Liab and Equity
Items of OCI (FDH ERsDbCr)
- Ano yung marerecycle sa P/L? sa RE?
To P/L
- Foreign Operation
- Debt Investment - FVOCI
- Cash Flow Hedge - effective
To RE
- Equity Investment - FVOCI
- Revaluation Surplus
- Defined Benefit Plan
- Credit Risk - FVPL
Revenue
Less Expense
= Profit Before Tax
Less Income Tax
= Income from Continuing Operations
Is this nature of expense or function of expense?
Nature of Expense
- Function of Expense = COGS and OPEX
Operating Section of Statement of CF can be solved in two ways : Direct and Indirect. Will the amount be different?
No (you will get to the same answer)
Formula in Indirect Method
Net Income
+ Non Cash Expense
- Non Cash Income
+/- changes in CA & CL
In Direct Method, what you will do is to add “collections” and deduct “payment”
- from what accounts will you get “collections” and “payment”
Collections - AR
Payment - Inv then AP
Interest Received
- what is the 1st in hierarchy?
Explain why it is 1st.
1st - Operating
2nd - Investing
Because it’s Interest Income, which can be seen in Income Statement
Dividend Received
- what is the 1st in hierarchy?
Explain why it is 1st.
1st - Operating
2nd - Investing
Because it’s Dividend Income, which can be seen in Income Statement
Interest Paid
- what is the 1st in hierarchy?
Explain why it is 1st.
1st - Operating
2nd - Financing
Because it’s Interest Expense, which can be seen in Income Statement
Dividend Paid
- what is the 1st in hierarchy?
Explain why it is 1st.
1st - Financing
2nd - Operating
Because it’s Dividend Paid, which can be seen in Retained Earnings (Equity).
What is the 1st to be presented in Notes to FS?
Statement of Compliance with PFRS
- Explicit and unreserved statement of compliance
