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    Statement of Financial Position and Comprehensive Income

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    buenaflorgladys11
    This document discusses the classification of assets as either current or non-current on the statement of financial position. It provides examples of assets that would be considered current assets, including cash, cash equivalents, and accounts receivable. Cash equivalents are short-term, highly liquid investments that can be converted to cash within 3 months or less. Accounts receivable are also considered a current asset unless collected after 12 months. The document provides guidance on classifying various cash-related items and evaluating accounts receivable balances.

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    Statement of Financial Position and Comprehensive Income

    Uploaded by

    buenaflorgladys11
    13 views2 pages
    This document discusses the classification of assets as either current or non-current on the statement of financial position. It provides examples of assets that would be considered current assets, including cash, cash equivalents, and accounts receivable. Cash equivalents are short-term, highly liquid investments that can be converted to cash within 3 months or less. Accounts receivable are also considered a current asset unless collected after 12 months. The document provides guidance on classifying various cash-related items and evaluating accounts receivable balances.

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    This document discusses the classification of assets as either current or non-current on the statement of financial position. It provides examples of assets that would be considered current assets, including cash, cash equivalents, and accounts receivable. Cash equivalents are short-term, highly liquid investments that can be converted to cash within 3 months or less. Accounts receivable are also considered a current asset unless collected after 12 months. The document provides guidance on classifying various cash-related items and evaluating accounts receivable balances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    13 views2 pages

    Statement of Financial Position and Comprehensive Income

    Uploaded by

    buenaflorgladys11
    This document discusses the classification of assets as either current or non-current on the statement of financial position. It provides examples of assets that would be considered current assets, including cash, cash equivalents, and accounts receivable. Cash equivalents are short-term, highly liquid investments that can be converted to cash within 3 months or less. Accounts receivable are also considered a current asset unless collected after 12 months. The document provides guidance on classifying various cash-related items and evaluating accounts receivable balances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Statement of Financial Position and Comprehensive Income

    PAS 1 par. 65

    1. The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or
    used to settle a liability for at least 12 months after the reporting period.
    2. The entity holds the asset primarily for the purpose of trading
    3. The entity expects to realize the asset within 12 months after the reporting period
    4. The entity expects to realize the asset or intends to sell or consume it within the entity’s normal
    operating cycle.

    Examples

    Cash

    Cash in Bank
    - savings deposit - ATM postdated – check dated in the future
    - demand deposit – payroll account
    - checks received from customers - unrestricted to classify as cash
    - personal check - compensating balance
    - certified check
    - cashiers or managers check - undelivered check – cash pa rin natin
    - traveler’s check - mawawala sa cash kapag na deliver na
    - bank draft – for large purchases

    Cash on Hand – less postdated check


    - coins and currencies
    - petty cash fund
    -un deposited collections – today cash on hand kapag nadeposit na sa bank, cash in bank
    - money order

    Cash Equivalents – short term highly liquid investments that are readily convertible into cash
    - Debt instrument acquired 3 months or less - interest ( not equity because no maturity date, dividends)

    - Treasury Bills – issue by Beauru of Treasury 90 days or less


    - Treasury Notes – pagbinili before maturity
    - Treasury Bonds - pagbinili before maturity
    - Time Deposit – 60 days, 180 days ma wiwithdraw upon maturity
    - Money Market Placement – nag eearned ng interest
    - Commercial paper- used by large corp

    Bank overdraft – overpayment of cash, current liability

    Accounts Receivables

    - Postdated Checks
    - IOU from Company Officer
    - NSF check – magiging cash kapag cleared na
    Credit Sales – AR
    Sales

    Collection – Cash
    AR

    Bad Debt – BDE


    ADA

    Write-off- ADA
    AR

    AR Beg + Credit Sales – Collection – Write-off

    ADA Beg + Doubtful Accounts – Write-Off

    Techniques Read the Question First

    1. Set Up T accounts AR, ADA, Bad Debt Expense


    2. Reconcile Subsidiary ledger – breakdown or details of General Ledger to General Ledger –
    amount na nag aappear sa balance Sheet
    3. Prepare JE
    4. Prepare Aging schedule

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