2009 Illustrative Separate PFRS Financial Statements

2009 Illustrative Separate PFRS Financial Statements

Introduction

This Accounting Alert is issued to provide an illustrative set of separate financial statements (FS), including notes to FS, and a set of consolidated basic FS with selected note disclosures that are applicable only to consolidated FS (hereinafter referred to as the Illustrative FS), prepared in accordance with Philippine Financial Reporting Standards (PFRS), for a fictional manufacturing and distribution company of semiconductor products [i.e., PNA Manufacturing Corporation, "PNA" or the "Company" (for separate FS), and Granthor Holdings Philippines, Inc. and subsidiaries, "Granthor and subsidiaries", or the "Group" (for the consolidated FS with selected notes to FS).]

The Illustrative FS also include illustrative presentations and disclosures for Non-publicity Accountable Entities (NPAEs) as set out in the appendices.

The FS of PNA and basic FS and selected note disclosures of Granthor and subsidiaries are presented in accordance with all appropriate PFRS, including amendments to existing standards and Philippine Interpretations issued by the Financial Reporting Standards Council (FRSC) that are effective as of December 31, 2009.

The softcopy of the Illustrative PFRS FS is availabe in P&A Khub.


Objective of the Illustrative FS

The purpose of these Illustrative FS is to provide a practical working model for the presentation of annual FS prepared in accordance with PFRS.


Coverage of the Illustrative FS

The Illustrative FS include different areas of financial reporting, which are typical not only for entities active in manufacturing and retailing but also in many other industry sectors.  The Illustrative FS do not cover all potential accounting transactions that can be observed in practice.  In addition, certain standards have not been addressed as they are not applicable to the FS of PNA or basic FS and selected note disclosures of Granthor and subsidiaries. The Illustrative FS and disclosures, therefore, should neither be used as a substitute for studying PFRS, nor considered as the sole tool for preparing individual financial statements in accordance with PFRS.  Notes to FS, particularly the significant accounting policies, presented in the Illustrative FS should be customized to suit an entity’s specific circumstances as there may be certain items included in the disclosures that are not applicable to the entity, thus, should not be copied verbatim.

For further guidance, the specific PFRS sources are indicated in the Illustrative FS – on the left hand side of the document.  Additional notes and explanations are shown as footnotes.  In case of doubt regarding specific requirements, it is essential to a make reference to the relevant standard and, where necessary, to seek appropriate technical advice.  Reference should be made as well to relevant statutory requirements (i.e., SEC, PSE, BSP).