SMEs and SEs

In the Philippines, which entity is not an SME?

• A nonpublicly accountable entity with total assets between P3,000,000 and P350,000,000.

• A nonpublicly accountable entity with total liabilities between P3,000,000 and P250,000,000.

• An entity that is not a holder of a secondary license issued by a regulatory agency.

• A public utility.

Which can be considered an SME?

• Bank and finance company

• Insurance company and investment house

• Pre-need company and securities broker

• None of these can be considered SME.

Entities with total assets or total liabilities below the floor threshold of P3,000,000 are known as

• Micro-business entities

• Macro-business entities

• Medium-sized entities

• Small entities

What is the date of transition to IFS for SMEs?

• The beginning of the latest period in the most recent annual financial statements under previous GAAP.

• The end of the latest period in the most recent annual financial statements under previous GAAP.

• The beginning of the earliest period for which an entity presents full comparative information under

  IFRS for SMEs.

• The end of the earliest period for which an entity presents full comparative information under IFRS for SMEs.

Under PFRS for SMEs, if the selling price less cost to complete and sell is lower than cost of inventory, the

writedown is recognized

• As an impairment loss

• As component of cost of goods sold

• As an impairment loss or a component of cost of goods sold

• Directly in retained earnings

All of the following are considered basic financial instruments, except

• Cash

• Investment in bonds

• Accounts receivable

• Investment in convertible preference shares

An SME shall account for investments in associate after initial recognition using

• а. Either cost model or fair value model and using the same policy for all investments in associates.

• Either cost model or fair value model and the model can be elected on an investment by investment basis.

• Any of the cost model, equity method or fair value model and using the same accounting policy for all investments

  in associates.

• Any of the cost model, equity method or fair value model and the model can be elected on an investment by

  investment basis.

An SME must measure the investment property after initial recognition

• At fair value or using the cost-depreciation-impairment model and same accounting policy for all investment

  property.

• At fair value or using the cost-depreciation impairment model elected item by item.

• At fair value.

• At fair value, for property whose fair value can be measured reliably without undue cost or effort on an ongoing

  basis and the cost-depreciation-impairment model for all other investment property.

An SME must recognize government grant received before the income recognition criteria are satisfied

• In income when the grant proceeds are received

• In equity

• As a liability

• In income when the grant proceeds are receivable

Which of the following is a disclosure requirement in relation to borrowing cost under IFRS for SMEs?

• Borrowing cost capitalized during the period

• Segregation of qualifying asset from other assets

• Capitalization rate for borrowing cost capitalization

• Total finance cost recognized as expense