ACCOUNTING STANDARD: ______________________________________________________________________

SUBJECT ENTITY: _____________________________________________________________________________

SOURCE OF FS: ______________________________________________________________________________
Include only requirement paragraphs. Do not include explanatory paragraphs. If the requirement has an
enumeration, provide one line item per enumerated requirement.

Evaluation
Require (state if not
ment applicable,
Paragrap or if there are
Reference to Compliance
h No. PAS 8 exceptions or
of Ayala Corporation
deviations and how
the company justified
such
exception/deviation)
7 Ayala Corporation has
disclosed in the notes
the appropriate
Determining the accounting policies to be used
P128-161 accounting policies to
by applying PFRS.
be used in each
transaction by applying
PFRS.
8 Not applicable. Ayala
Corporation didnt
provide any information
Non-application of accounting policies or disclosures about
None
when the effect is immaterial. non-application of
accounting policies
when the effect is
immaterial.
13 An entity shall select and apply its accounting P129-161 Ayala Corporation has
policies consistently for similar transactions, selected and applied
other consistent accounting
events and conditions, unless an IFRS policies in its financial
 specifically requires or permits categorization
statements and
of items for which
transactions.
different policies may be appropriate.
14 Change in accounting policy: Ayala Corporation used
(a) is required by an IFRS; or consistent accounting
(b) results in the financial statements providing Pp 129-136 policies and only adapts
reliable and more relevant information. policies when they are
effective.
15 Ayala Corporation used
the same accounting
Application of same accounting policies P129 policies and has
complied with the
standard.
16 Not changes in accounting policies:
(a) the application of an accounting policy for
transactions, other events or conditions that
differ
in substance from those previously occurring;
Not applicable Guidance only
and
(b) the application of a new accounting policy
for transactions, other events or conditions
that did
not occur previously or were immaterial.
17 Ayala Corporation has
Application of a policy to revalue assets to PAS complied with the
P130-131
16 and PAS 38 requirement of the
standard.
19 Changes in accounting policy: a. p 129 Ayala Corporation has
a. Resulting from the initial application of an b. p 130-1136 properly provided
IFRS in accordance with the specific informations and
transitional provisions, if any, in that IFRS; and disclosures and has
b. when an entity changes an accounting complied with the
policy upon initial application of an IFRS that standard.
does not
include specific transitional provisions applying
 to that change, or changes an accounting
policy voluntarily, it shall apply the change
retrospectively.
21 Ayala Corporation only
Application of an accounting policy from the
used the policies
most recent pronouncements of other None
authorized in the
standard-setting bodies
Philippines.
22 There is no fair value of
assets and liabilities
that represents
Retrospective application Not Applicable derecognized financial
instruments that is why
disclosure is not
applicable.
23 There is no amount of
maximum exposure to
loss from its continuing
When retrospective application is required by
involvement in
paragraph 19(a) or (b), a change in accounting Pp129-136
derecognized financial
policy shall be applied retrospectively
assets that is why
disclosure is not
applicable.
24 The entity shall apply the new accounting
policy to the carrying amounts of assets and
liabilities, and shall make a corresponding
adjustment to the opening balance of each Pp129-136
affected component of the equity at the
beginning of the earliest period for which
retrospective application is practicable.
25 the entity shall adjust the comparative
information to apply the new accounting policy
prospectively from the earliest date
practicable.
28 Effect on future periods, an entity shall
disclose:
(a) the title of the IFRS;
(b) when applicable, that the change in
accounting policy is made in accordance with
its transitional provisions;
(c) the nature of the change in accounting
policy;
(d) when applicable, a description of the
transitional provisions;
A.) Pp 129-135
(e) when applicable, the transitional provisions
B.) Not Applicable
that might have an effect on future periods; Ayala Corporation has
C.) Pp 130-135
(f) for the current period and each prior period disclosed all information
D.) Not Applicable
presented, to the extent practicable, the in the notes and has
E.) Not Applicable
amount of the adjustment: complied with the
F.) Not Applicable
(i) for each financial statement line item standard.
G.) Not Applicable
affected; and
H.) Pp130-135
(ii) if IAS 33 Earnings per Share applies to the
entity, for basic and diluted earnings per share;
(g) the amount of the adjustment relating to
periods before those presented, to the extent
practicable;
(h)The existence of that condition and a
description of how and from when the change
in
accounting policy has been applied.
.
29 When a voluntary change in accounting policy Pp 129-136 Ayala Corporation has
has an effect on the current period or any prior fully disclosed the
period, informations in the
would have an effect on that period except notes and thus AC has
that it is impracticable to determine the complied with the
amount of the standard.
adjustment, or might have an effect on future
periods, an entity shall disclose:
(a) the nature of the change in accounting
 policy;
(b) the reasons why applying the new
accounting policy provides reliable and more
relevant
information;
(c) for the current period and each prior period
presented, to the extent practicable, the
amount of the adjustment:
(i) for each financial statement line item
affected; and
(ii) if IAS 33 applies to the entity, for basic and
diluted earnings per share;
(d) the amount of the adjustment relating to
periods before those presented, to the extent
practicable; and
(e) The circumstances that led to the existence
of that condition and a description of how and
from when the change in accounting policy has
been applied.

30 When an entity has not applied a new IFRS that

has been issued but is not yet effective, the
entity shall
disclose:
(a) this fact; and
Pp 131-135 .
(b) known or reasonably estimable information
relevant to assessing the possible impact that
application of the new IFRS will have on the
entitys financial statements in the period of
initial application.
31 In complying with paragraph 30, an entity Pp 131-136
considers disclosing:
(a) the title of the new Standard or
Interpretation;
(b) the nature of the impending change or
changes in accounting policy;
 (c) the date by which application of the IFRS is
required;
(d) the date as at which it plans to apply the
IFRS initially; and
(e) either:
(i) a discussion of the impact that initial
application of the IFRS is expected to have on
the
entitys financial statements; or
(ii) if that impact is not known or reasonably
estimable, a statement to that effect.
32 Estimation:
(a) bad debts;
(b) inventory obsolescence; a. p.164
(c) the fair value of financial assets or financial b. p.164
liabilities;
c. p.167
(d) the useful lives of, or expected pattern of
consumption of the future economic benefits d. p. 165
embodied in, e. None
depreciable assets; and
(e) warranty obligations.
33 The use of reasonable estimates is an essential
part of the preparation of financial statements
and does not undermine their reliability.

36 The effect of a change in an accounting

estimate, other than a change to which
paragraph 37 applies,
shall be recognized prospectively by including
it in profit or loss in: P148
(a) the period of the change, if the change
affects that period only; or
(b) the period of the change and future
periods, if the change affects both
37 To the extent that a change in an accounting NOTE:
 estimate gives rise to changes in assets and
liabilities, or
relates to an item of equity, it shall be
recognized by adjusting the carrying amount of 4 (pp. 161-167)
the related asset,
liability or equity item in the period of the
change.
38 Change is applied to transaction, other events
and conditions from the date of the change in Not applicable
estimate.
39 Nature and amount of a change in an P144
accounting estimate P 147-148
40 AC didnt provide any
information or
Disclosure of not disclosing the amount of the disclosure of not
None
effect in future periods disclosing the amount
of effect in future
periods.
42 Correction of prior period error:
(a) restating the comparative amounts for the
prior period(s) presented in which the error
occurred; or Ayala Corporation didnt
(b) if the error occurred before the earliest Not applicable have any prior period
prior period presented, restating the opening errors.
balances
of assets, liabilities and equity for the earliest
prior period presented.
43 A prior period error shall be corrected by
retrospective restatement except to the extent
Ayala Corporation didnt
that it is
Not applicable have any prior period
impracticable to determine either the period-
errors.
specific effects or the cumulative effect of the
error.
44 44 When it is impracticable to determine the Not applicable Ayala Corporation didnt
period-specific effects of an error on have any prior period
comparative errors.
 information for one or more prior periods
presented, the entity shall restate the opening
balances of
assets, liabilities and equity for the earliest
period for which retrospective restatement is
practicable
45 Restating comparative information to correct Ayala Corporation didnt
prior periods prospectively from the earliest Not applicable have any prior period
practicable date errors.
46 Exclusion of corrections of prior period errors Ayala Corporation didnt
from profit or loss. Not applicable have any prior period
errors.
47 When it is impracticable to determine the
Ayala Corporation didnt
amount of an error: Restate the comparative
Not applicable have any prior period
information prospectively from the earliest
errors.
date practicable.
48 Ayala Corporation didnt
Corrections of errors are distinguished from
Not applicable have any prior period
changes in accounting estimates.
errors.
49 Disclosures in Prior period errors
(a) the nature of the prior period error;
(b) for each prior period presented, to the
extent practicable, the amount of the
correction:
(i) for each financial statement line item
Ayala Corporation didnt
affected; and
Not Applicable have any prior period
(ii) if IAS 33 applies to the entity, for basic and
errors.
diluted earnings per share;
(c) the amount of the correction at the
beginning of the earliest prior period
presented; and
(d) if retrospective restatement is
impracticable for a particular prior period,
50 Impracticable to adjust comparative
Not applicable
information
51 It is impracticable to adjust comparative Not applicable
 information for one or more prior periods to
achieve comparability with the current period
52 It is frequently necessary to make estimates in
applying an accounting policy to elements of
financial statements recognised or disclosed in Not applicable
respect of transactions, other events or
conditions.
53 Hindsight should not be used when applying a
new accounting policy to, or correcting Not applicable
amounts for, a prior period.