BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A BANK WITH TOTAL ASSETS OF P100, 000, 000
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AN INSURANCE COMPANY WITH TOTAL LIABILITIES OF P230, 000, 000
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A MANUFACTURING COMPANY WITH TOTAL ASSETS OF P500, 000, 000
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A RETAIL COMPANY WITH TOTAL LIABILITIES OF P200, 000, 000
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Detailed explanation-1: -Public utility companies or holders of secondary licenses issued by a regulatory agency. Entities that are holdeers of secondary licenses issued by a regulatory agency are not considered as SMEs.
Detailed explanation-2: -The Philippines has adopted the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) as PFRSs. Unaccompanied IFRSs may be downloaded from the IASB website free of charge.
Detailed explanation-3: -Which one of the following is a characteristic of accounting under IFRS for SMEs?-Interest incurred during construction must be capitalized.-Earnings per share must be provided in the financial statements.
Detailed explanation-4: -Small and medium-sized entities are entities that: (a) do not have public accountability, and. (b) publish general purpose financial statements for external users. Examples of external users include owners who are not involved in managing the business, existing and potential creditors, and credit rating agencies.