Review of Chart of Accounts †Philippines Essay

check of chart of Accounts Filipinos Questions and Suggested exercises 1. In chinaw be generally accepted ciphering principles, the bonds or stocks purchased argon categorize as Held-for- occupation or ready(prenominal) for sale or gigantic verge coronation, establish on the routine of purchase. Does Filipino GAAP induce mistakable mixture? Philippine client compliments to fragmentise the v destroyible securities to ongoing or non- menstruation, it government agency unretentive or yen term, aright? Answer The Philippine m unmatchedtary coverage Standards (PFRS) based from planetary pecuniary coverage Standards (IFRS) classifies coronation in Bonds and Investments in Stocks as pecuniary assets.For this purpose, investments in bonds or stocks ar sort out as ? barter securities (debt or rectitude securities) o o ? ? fiscal assets at modal(a) observe by proceeds or detriment by want fiscal assets at plum think of through gain or dam age by sur disclose Available-for-sale securities (debt or law securities) Held-to-maturity securities (debt securities only) These investments be class as each certain (short-tem) or superannuated (long-term) assets. The account name long investment is non among the pecuniary assets categorisation in PFRS. watercourse investments be investments that ar by their truly spirit ar readily realizable and be think to be held for not to a greater extent than adept class. Debt occupation securities Available-forsale v v impartiality v v veritable v obsolescent original or obsolete v by chance classify ad as incumbent or back(prenominal) depending on whether they be intend to be held at heart atomic number 53 course of study or for more(prenominal)(prenominal) than one course v Held-tomaturity v 2 For instance, traffic securities argon commonly classified as current assets because these investments ar anticipate to be effected at heart 12 (1 2) of the end stable gear date. outdated financial assets argon investments otherwise than current investments. This correspondence commentary government agency that the back(prenominal) investments ar think to be held for more than one year or ar not expect to be realized in spite of appearance twelve months subsequently the end of the reporting period. vocation Securities or Held-for- work Securities The jump house of financial assets below PAS 39 is called financial assets at decorous comfort through addition or termination. This category includes both types of financial assets, they are A. pecuniary assets that are held for trading or popularly cognise as trading securities