Review of Chart of Accounts †Philippines Essay

recap of Chart of Accounts Filipinos Questions and Suggested Answers 1. In China GAAP, the bonds or stocks purchased be categorized as Held-for- merchandise or Available for sale or capacious term investment, based on the purpose of purchase. Does Philippine GAAP select similar categorization? Philippine customer want to separate the marketable securities to received or non- menstruum, it means short or long term, right? Answer The Philippine fiscal Reporting Standards (PFRS) based from International Financial Reporting Standards (IFRS) classifies Investment in Bonds and Investments in Stocks as financial assets.For this purpose, investments in bonds or stocks be classified as ? profession securities (debt or equity securities) o o ? ? Financial assets at fair evaluate through pelf or neediness by requirement Financial assets at fair look upon through profit or harm by appellative Available-for-sale securities (debt or equity securities) Held-to-maturity securities (d ebt securities only) These investments argon classified as either current (short-tem) or old (long-term) assets. The account name long-term investment is not among the financial assets miscellanea in PFRS.Current investments be investments that be by their very nature are readily realizable and are think to be held for not more than(prenominal) than superstar year. Debt Trading securities Available-forsale v v honor v v Current v obsolete Current or back(prenominal) v Maybe classified as current or noncurrent dep culminationing on whether they are intended to be held indoors one year or for more than one year v Held-tomaturity v 2 For instance, trading securities are unremarkably classified as current assets because these investments are expected to be recognise inwardly twelve (12) of the balance sheet date.Noncurrent financial assets are investments other than current investments. This residual definition means that the noncurrent investments are intended to be he ld for more than one year or are not expected to be realized within twelve months after the end of the reporting period. Trading Securities or Held-for-trading Securities The basic category of financial assets under PAS 39 is called financial assets at fair value through profit or loss. This category includes two types of financial assets, they are A. Financial assets that are held for trading or popularly known as trading securities