Cooperative Development Authority

Basis of Measurement

 Assets and liabilities are

generally measured using the
COST model
Cash

 Cash is stated at face value

 Cash denominated in foreign

currency should be
translated into Philippine
Peso using the closing rate as
of the reporting date
Receivables

 Loans receivables are

presented net of unearned
interest

 Accounts receivables are

presented at undiscounted
amount

 Impairment loss on
receivables is determined
using the Portfolio at Risk
Approach
Inventory

 Inventories are stated at the lower of

cost and NRV
Agriculture

 Biological assets are measured at

cost
Investment Property

 Investment property is
accounted for using the cost
model
Property and equipment

 Cost model is used

 Revaluation is allowed only

for land classified as PPE
Revenue recognition
 Revenue is generally
recognized on an accrual
basis

 Interest revenue is recognized

when earned and collected
Borrowing Costs

 Capitalization of borrowing
costs is allowed for
qualifying assets.
Retirement benefits

 Past service costs

 Vested- recognized as
expense immediately
 Unvested- amortized over
average service years of the
covered employees
 Actuarial gains and losses are
recognized in profit and loss
Grants and donations
 Donations and grants are
recognized in equity
 Donations in the form of
PPE shall be recognized as
income over the life of the
asset
 Donations for working
capital purposes shall
remain in the equity
Accounting Errors

 Effects of correction of prior

year errors shall be
recognized during the
current year.
Scope
 Cooperatives engaged in
banking and insurance
operations shall use the PFRS

 Electric Cooperatives shall

use the financial reporting
framework prescribed by the
National Electrification
Administration (NEA)
Investment in Stocks

 Investments in publicly traded

securities shall be accounted for at
FV with changes recognized in
equity
Statement of Financial
Condition
Additional Line Items

 Net Unrealized Gain Or Loss on

Investment in Stocks

 Restricted Capital for Surety

 Fund Balance
Statement of Changes In Equity
Changes in Equity

 Net Unrealized Gain Or Loss on

Investment in Stocks

 Restricted Capital for Surety

 Fund Balance
Notes to FS

 Discussion of whether to retain or

delete disclosures for significant
judgment used in the application of
the financial reporting framework
Notes to FS

 To delete the disclosure requirement

on minimum lease payments
 Due in one year
 One to five years
 Over five years
Notes to FS

 To delete the requirement to

disclose non-cash transactions
Notes to FS

 To delete the requirement to

disclose:
 Category of financial instruments
 Income or expense recognized for each
category
Notes to FS
Inventory

 To delete the requirement to

disclose
 amount of inventory recognized as
expense

 Impairment loss recognized or

reversed
Notes to FS

 To delete disclosures related

to FV measurement
Property and equipment

 To disclose the cost of land

when Revaluation Model is
used
THANK YOU