ESTIMATING DOUBTFUL ACCOUNTS UNDER ALLOWANCE METHOD PERCENTAGE OF SALES SALES XXX TIMES: UNCOLLECTABILITY % XXX DOUBTFUL ACCOUNTS EXPENSE XXX PERCENTAGE OF A/R ACCOUNTS RECEIVABLE, END TIMES: UNCOLLECTABILITY % XXX XXX ALLOWANCE FOR DOUBTFUL ACCOUNTS, END XXX * REQUIRED ENDING BALANCE OF ADA XXX LESS: ALLOWANCE FOR ADA BEFORE ADJUSTMENT XXX DOUBFTUL ACCOUNTS EXPENSE XXX ACCOUNTS RECEIVABLE LESS: ACCOUNTS RECEIVABLE XXX DOUBTFUL ACCOUNTS XXX SALES RETURN XXX SALES DISCOUNT XXX NET REALIZABLE VALUE (NRV) XXX NOTES RECEIVABLE 1. INITIAL MEASUREMENT FUTURE CASH INFLOWS (PRINCIPAL AND INTEREST) TIMES: PRESENT VALUE PV @ INTIAL RECOGNITION XXX XXX XXX NON-INTEREST-BEARING NOTE A. LUMP SUMP AT MATURITY DATE (1+N)-N / PV OF 1= 𝟏 (𝟏+ⅈ)𝒏 B. COLLECTIBLE EVERY END OF PERIOD PV OF ORDINARY ANNUITY= C. [𝟏−(𝟏+ⅈ)−𝒏 ] ⅈ COLLECTIBLE EVERY BEGINNING OF PERIOD [𝟏−(𝟏+ⅈ)−(𝒏−𝟏) ] PV OF ANNUITY DUE= ⅈ +𝟏 INTEREST BEARING NOTE A. STATED RATE = EFFECTIVE RATE PV = FA B. STATED RATE ≠ EFFECTIVE RATE ADD: PV OF FACE AMOUNT XXX PV OF INTEREST COLLECTION XXX PV @ INITIAL RECOGNITION XXX 2. SUBSEQUENT MEASUREMENT ADD/DEDUCT: OUTSTANDING FACE AMOUNT UNAMORITIZED DISCOUNT/PREMIUM AMORTIZED COST XXX XXX XXX LOAN RECEIVABLE PRINCIPAL AMOUNT XXX LESS: ORIGINATION FEES RECEIVED XXX ADD: DIRECT ORIGINATION COST XXX INITIAL MEASUREMENT XXX IMPAIRMENT OF LONG-TERM RECEIVABLES LESS: CARRYING AMOUNT XXX PV OF EXPECTED FUTURE CASH FLOW XXX IMPAIRMENT LOSS XXX FUTURE CASH INFLOWS X: PV (ORIGINAL INTEREST %) CARRYING AMOUNT OF LONG-TERM RECEIVABLES 1. 2. ISSUED AT FACE AMOUNT OUTSTANDING PRINICIPAL AMOUNT ADD: UNPAID INTEREST CARRYING AMOUNT XXX XXX XXX ISSUED AT PREMIUM/DISCOUNT ADD: OUTSTANDING PRINCIPAL PV AT DATE OF IMPAIRMENT UNPAID INTEREST CARRYING AMOUNT XXX XXX XXX +/-: UNAMORITIZED DISCOUNT/PREMIUM DEBT INSTRUMENTS OUTSTANDING FACE AMOUNT LESS: ALLOWANCE FOR LOAN IMPAIRMENT NET CARRYING AMOUNT EQUITY IN ASSIGNED ACOUNTS LESS: GROSS A/R LESS: ALLOWANCE FOR DOUBTFUL ACCOUNTS LESS: LESS: ACCOUNTS RECEIVABLE, END RELATED LIABILITY BALANCE EQUITY IN ASSIGNED ACCOUNTS XX XX XX FACTORING OF ACCOUNTS RECEIVABLE NET SELLING PRICE CARRYING AMOUNT GAIN/LOSS ON FACTORING XX XX XX CASH RECEIVED FROM FACTORING NET SELLING PRICE FACTOR’S HOLDBACK CASH RECEIVED XX XX XX GROSS A/R LESS: FACTORING FEES & CHARGES # 1 DESCRIPTION MATURITY VALUE 2 3 4 DISCOUNT PROCEEDS CARRYING AMOUNT 5 GAIN/LOSS FORMULA INTEREST BEARING: PA+ INTEREST UPON MATURITY NON-INTEREST BEARING: FACE AMOUNT MATURITY VALUE X DISCOUNT RATE X DISCOUNT PERIOD MATURITY VALUE – DISCOUNT INTEREST BEARING: PA + ACCRUED INTEREST NON-INTEREST BEARING: PA – UNAMORTIZED DISCOUNT PROCEEDS > CA = GAIN PROCEEDS < CA = LOSS ENTIRE TERM OF NOTE DATE OF NOTE DISCOUNTING ACCRUAL OF INTEREST MATURITY DISCOUNT PERIOD INVESTMENT INCOME/LOSS = INVESTEE’S P/L X OWNERSHIP INTEREST % SHARE IN OCI/OCL = INVESTEE’S OCI/OCL X OWNERSHIP INTEREST % ADD: LESS: DISCONTINUANCE OF EQUITY METHOD PROCEEDS FROM SALE OF INVESTMENT FAIR VALUE OF RETAINED INVESTMENT CARRYING VALUE OF INVESTMENT GAIN/LOSS TO BE RECOGNIZED IN P/L XX XX XX XX ALTERNATIVE FORMULA PROCEEDS FROM SALE OF INVESTMENT LESS: CARRYING VALUE OF INVESTMENT SOLD GAIN/LOSS ON DISPOSAL LESS: XX XX XX FAIR VALUE OF RETAINED INVESTMENT CARRYING VALUE OF RETAINED INVESTMENT GAIN/LOSS ON RECLASSIFICATION LESS: ADD: LESS: GOODWILL (GAIN ON ACQUISITION) ACQUISITION COST SHARE IN FV ASSOCIATE’S OF NET ASSETS: CARRYING VALUE OF NET ASSETS UNDEREVALUATION (AMOUNT X OWNERSHIP %) OVEREVALUATION (AMOUNT X OWNERSHIP %) GOODWILL (GAIN ON ACQUISITION XX XX XX XX XX XX XX (XX) XX LESS: ADD: LESS: LESS: ADJUSTED SHARE IN ASSOC P/L SHARE IN ASSOC’S P/L UNDEREVALUATION OVEREVALUATION GAIN ON ACQUISITION (ONLY IN YEAR OF ACQUISITION) IMPAIRMENT LOSS ADJUSTED SHARE XX (XX) XX (XX) (XX) XX TOTAL INTEREST IN ASSOCIATE ADD: ADD: ADD: X: LESS: CARRYING AMOUNT PREFERENCE SHARES UNSECURED LONG-TERM RECEIVABLES.LOANS AND ADVANCES TOTAL INTEREST IN ASSOCIATE XX XX XX XX INITIAL MEASUREMENT OF INVESTMENT IN ASSOC COST OF ADDITIONAL INTEREST ACQUIRED FAIR VALUE OF PREVIOUSLY HELD SECURITIES INITIAL MEASUREMENT XX XX XX ASSOCIATE W/ PREFERENCE SHARES NET INCOME/LOSS ORDINARY SHAREHOLDERS INVESTOR’S OWNERSHIP % SHARE IN P/L XX(XX) XX% XX NET INCOME/LOSS OF ASSOCIATE DIVIDENDS ON PREFERENCE SHARES NET INCOME/LOSS ORDINARY SHAREHOLDERS XX (XX) XX CUMULATIVE- TOTAL PAR VALUE X ANNUAL RATE (1 YR) NON-CUMULATIVE- ACTUAL DIVIDENDS DECLARED.