Christine V.

Ravanzo BSA 701

2011 Accounting Standards Updates and Special Topics Seminar

Speaker: Mr. Reynaldo R. Ocampo Past National President ACPAE-IV

Held at Cavite State University Main Campus last October 7, 2011; Officers of the ACPAE-IV along with our very own, Mrs. Ludivinia Victorino, the delegates of Rogationist College attended the 2011 Accounting Standards Updates and Special Topics Seminar. The seminar covered the updates of certain International Financial Reporting Standards: IFRS 9: Financial Instruments Financial Instruments are covered by IAS 32 Presentation, IAS 39 Recognition and Measurement and IFRS 7 Disclosure. IFRS 9 will replace IAS 39. Its objective is to improve the usefulness for users of financial statements by simplifying the classifications and measurement requirements of financial instruments. Its main changes include: New classification and measurement requirements for financial instruments New criteria for amortized cost measurement New measurement category Fair value through Other Comprehensive Income Impairment assessment only for amortized cost assets No more AFS, HTM and tainting rules No more embedded derivatives in Financial Assets No more unquoted equity instruments measured at cost less impairment

The project is divided into 3 phases: Phase 1 Classification and Measurement, Phase 2 Impairment Methodology, Phase 3 Hedge Accounting. IFRS 9 has just completed Phase 1. It is as Mr. Ocampo quoted, IFRS 9 is still a work in process IFRS 10: Consolidated Financial Statements: IAS 27 covers Consolidated Financial statements and Separate Financial Statements. This requires a parent to present consolidated Financial Statements as those of a single economic entity. IFRS 11: Joint Arrangement Joint arrangement are either Joint Venture or Joint Operation. Main change is to eliminate proportionate consideration. IFRS 11 replaces IAS 31 Interest in Joint Ventures. IFRS 12: Disclosure of Interest in other Entities. This covers the disclosure requirements of interest in joint ventures.

IFRS 13: Fair Value Measurement. This replaces the guidance in Fair value. Level 1 quoted prices in active market for identical assets or liabilities that the entity can access at measurement date. Mr. Ocampo also pointed out changes in the standards and interpretations: As of January 2010 38 Standards IFRS (9) IAS (29) 27 Interpretations IFRIC (26) SIC (11) As of January 2011 38 Standards (no change) 25 Interpretations IFRIC (15) SIC (10) IFRIC 9 Reassessment of Embedded Derivatives and SIC 21 Income tax has been withdrawn. The updates apply to annual periods beginning on or after January 1, 2013. IFRS 9 mandatory effective date is proposed to push through to January 1, 2013. Discussed also are the Special Topics with an acronym of LIPS : Leases, Income Tax, Pension and SMEs. Mr. Ocampo provided the delegates from different colleges and universities some exercises that pertain to the special topics and was discussed firmly.