Solve the following
maximum the fair value of any collateral, in the event of other parties failing to perform their obligations and including significant concentrations of credit risks; and . Information about its exposure to interest rate risk including contractual repricing or maturity date whichever dates are earlier and including effective interest rates, when applicable. 2. For accounts receivable pledged or assigned and notes receivable discounted, the entity shall disclose the following: (a) the nature of the risks and rewards of ownership to which the entity remains exposed; (b) the carrying amount of financial assets it has pledged as collateral for liabilities or contingent liabilities; and (c) the terms and conditions relating to its pledge. 3. When an entity holds collateral and is permitted to sell or repledge the collateral in the absence of default by the owner of the collateral, it shall disclose: (a) the fair value of the collateral held; (b) the fair value of any such collateral sold or repledged, and whether the entity has an obligation to return it; and (c) the terms and conditions associated with the use of the collateral. . An entity shall disclose material items of income and expense, and gains and losses resulting from receivables such as total interest income calculated using effective interest method and the amount of interest accrued on impaired receivables. 5. An entity shall disclose the nature and amount of any impairment loss recognized in profit or loss. Activities/Assessments: Exercise 3-1: How would the following items be presented in the statement of financial position: 1. Claims from customers for merchandise sold 2. Claims from employees representing cash advances. 3 . Claims from employees representing selling price of goods sold under normal credit terms. 4 . Receivable arising from subscription to share capital. 5 . Deposit on purchase of undelivered merchandise. Customers' accounts ascertained to be uncollectible. 7. Claims against consignees for goods shipped to the latter, goods are still unsold at the reporting period. 8. Claims against consignees for goods shipped to the latter and are already sold 9. Income tax refunds; approved by the BIR 10. Claims from shipping carrier for damaged merchandise. LESSON 4 - ACCOUNTING FOR ACCOUNTS RECEIVABLES Overview: This lesson is the second part of accounting for Trade and other Receivables. It provides detail discussion on accounts receivables and its related revenue accounts, accounting for discou from seller's point view, and estimating doubtful accounts and the related entry. Learning Objectives
