1.

POSTEMPLOYMENT BENEFITS
FVPA,BEGINNING XX PBO,BEGINNING XX
Contribution to the fund XX Current service cost XX
Actual return on plan assets XX Past service cost XX
Benefits paid (XX) Interest expense XX
Settlement price (XX) Actuarial loss/increase PBO XX
FVPA,END XX Actuarial gain/decrease PBO (XX)
PV of DBO settled (XX)
Benefits paid (XX)
PBO,ENDING XX

Actual return on plan asses= remeasurement gain on plan assets + interest income
Use the discount rate at the beginning of the year in finding for the interest expense and
interest income.
FVPA, END PBO,END=PREPAID OR ACCRUED BENEFITCOST

Current service cost XX Actual return on plan assets XX

Past service cost XX Interest income on FVPA (XX)
Interest expense XX Remeasurement gain on FVPA + XX
Interest income (XX) Actuarial gain XX
Settlement gain (SP-PV of DBO) (XX) Remeasurement gain on Asset Ceiling XX
Settlement loss XX Net remeasurement gain(NRG) XX
Interest on EAC Beginning XX
Employee benefit expense(EBC) XX
EBC less NRG = DEFINED BENEFIT COST

2. OPERATING SEGMENT
A. The segment revenue, including sales to external customers and intersegment sales, is 10%
or more of the combined revenue, internal and external, of all operating segments
B. The absolute amount of P or L of the segment is 10% of more of the greater in absolute
amount of: combined profit of all operating segments OR of combined loss
C. The asset of the segment is 10% or more of the combined assets of all operating segments
*additional segment is to be reported if the 75% threshold is not meet!

3. CASH AND ACCRUAL BASIS use the T-ACCOUNT or the journal entries

4. SINGLE ENTRY METHOD use the T-ACCOUNT

Capital, beg XX RE,beg XX
Additional investment XX Other items that increase RE but not profit XX
Net income XX Net income XX
Withdrawals (XX) Dividends declared (XX)
Net loss (XX) Other items that decrease RE but not loss (XX)
Capital, end XX Net loss (XX)
RE, end XX
5. ERROR CORRECTION

Counterbalancing error includes inventory (sales and purchases), prepaid expenses, accrued expenses,
deferred income, accrued income. Adjusted for two consecutive periods. If no adjustments for this
period are maid, the errors are self-correcting.

Noncounterbalancing error includes error in depreciation. The error is corrected on the year it was
found to understated or overstated.

6. STATEMENT OF CASH FLOWS

Operating Activities current assets and current liabilities (loss on sale is added, depreciation is added if
net income is used = indirect method)
Financing activities noncurrent liabilities and equity
Investing noncurrent assets (purchase and sale of noncurrent assets only)