Lecture 02: Financial Asset at Fair Value through Profit or Loss (FVPL). [Intermediate Accounting] — Transcript

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1. 0:00Okay na So ituloy na natin ang ating discussion sa investment accounting And
2. 0:04today ang pag-uusapan natin ay patungkol sa financial asset at fair value through
3. 0:10profit or loss Actually napag-usapan na sa nakaraang video discussion kung ano
4. 0:15ang ibig sabihin ng financial asset Kung gusto mong balikan nasa description ng
5. 0:20lecture na ito ang link ng sinasabi naming discussion sapagkat today
6. 0:26itutuloy lang natin yung mga terminology na mapapansin doun sa mismong pangalan
7. 0:31ng investment Ang ibig kong sabihin ' ba ang sabi sa discussion natin today
8. 0:37financial asset at fair value through profit or loss Magfo-focus tayo sa kung
9. 0:43ano ang ibig sabihin nito na basically yung pangalan ng investment ay isinod sa
10. 0:48kanyang measurement in a sense na ba you remember financial asset is measured
11. 0:54initially at fair value and subsequently there are options na basically isa it
12. 1:02okay you measure that also at fair value pero yyung changes mula nung inacquire
13. 1:08mo initially hanggang lumipas yung panahon ay inire-report mo or through
14. 1:13profit or loss whether that change is temporary or permanent so ang ibig kong
15. 1:19sabihin Again sa measurement isinod yung pangalan nung investment Pero mamaya
16. 1:24natin to mas liliwanagin Mag-focus lang muna tayo sa kung ano ang ibig sabihin
17. 1:29ng salitang fair value Okay In this context ang sabi "Fair value is the
18. 1:35price that would be received to sell an asset in an orderly transaction between
19. 1:41market participants at the measurement date." Sa madaling salita there are two
20. 1:46parties involved and they are selling an asset Kasi nga acet tayo financial asset
21. 1:51na kung saan yung dalawang party na yon is both independent willing and
22. 1:56knowledgeable in the transaction Sa madaling salita walang pinilit walang
23. 2:02kinumpel na matuloy yung transaction in a particular price At yung presyo na nga
24. 2:07na yon yun yung tinatawag na fair value Okay Kumbaga yung yung tamang tamang
25. 2:13presyo Okay Walang naagrabyado Okay Na basically in this topic there are best
26. 2:19evidence of fair value kumbaga paano mo daw bang masasabi na ito yung mas
27. 2:24magandang fair value talaga niya siya yung ebidensya na ito yung fair value na
28. 2:28nga okay there are three okay in descending hierarchy una ang sabi dito
29. 2:34quoted price of identical asset in active market pa natin mas liwanagin
30. 2:40dito muna tayo sa glearing terminology na quoted price narinig niyo na ba 'yung
31. 2:46salitang quotation hindi po 'yung sinasabi nating quotation na nilalagay
32. 2:50sa hulihan ng mga quizes na ini-inspire ka okay Or yung sinabi ng isang great
33. 2:55philosopher one day 'di ba Parang ganon Hindi po 'yun Okay Hindi yung word of
34. 2:59wisdom But rather when we say quotation in business it means setting a price
35. 3:05Okay Kaya pagka minsan let's say nagpapagawa ka ng bahay pwede mo bang
36. 3:10i-coot kung magkano Or let's say nag merong project meron kang papagawa sa
37. 3:14kanila Bigyan mo nga ako ng quotation So anong ibig sabihin non Bigyan mo nga ako
38. 3:19ng presyo Okay Yun yung word na quotation in business Parang nagco-cote
39. 3:24ka Anong quote mo ' Ba ibig sabihin magkano yung presyo mo Hindi yung tipong
40. 3:28what's your ano ah parang inspiration in life Hindi po yun yung ibig sabihin ng
41. 3:32cotation Okay So much for that So balikan po natin ano Okay Coded price is
42. 3:37the price given 'Di ba 'yung inioo-over Parang yung binebenta something like
43. 3:41that So again quoted price of identical asset in active market Dito muna tayo sa
44. 3:48ibig sabihin naman ng active market Okay Active market is is a situation or
45. 3:54pupwedeng lugar kung saan there is always willing buyer and willing seller
46. 3:59in any given point in time Kumbaga palaging merong transaction na
47. 4:04nangyayari Kaya nga ang sabi ay active Example palengke ' ba Pumunta ka doon
48. 4:09bumili ka ng galunggong ng isda ng bigas ' ba palaging merong presyo doon Okay
49. 4:14merong laging nagbebenta at palaging merong bumibili because the market is
50. 4:19active Okay Kung ilalagay natin sa mga securities sa mga shares sa mga debts ba
51. 4:25equity and debt securities let's say may stock market ' ba bond sa market So
52. 4:30therefore if there is an active market okay parang basihan siya ng market value
53. 4:35Katulad nga halimbawa n pupunta ka sa palengke bibili ka ng galunggong let's
54. 4:39say nilagay nila Php80 per kilo What can we say That is the fair value kasi there
55. 4:43is an active market okay and there is a quoted price Okay na basically ang
56. 4:49ka-priority quoted price of identical asset in active market At itong
57. 4:54pangalawa naman in descending hierarchy nga ang sabi naman quoted price of a
58. 4:59similar asset in an active market So basically parehas silang active market
59. 5:04at merong voted price Ang pagkakaiba lang yung top priority is identical yung
60. 5:09pangalawa ay similar Okay Hindi ba Mukhang magkatulad sila identical nga eh
61. 5:14'di ba Singular din yun Okay basically yes Okay May kaunti lang silang
62. 5:18pagkakaiba So halimbawa bumibili ka ng bigas 'di ba Alam naman natin ang mga
63. 5:22bigas ay mayro'ong variety Let's say kunyari dinurado Okay Kung dinurado
64. 5:28'yung binibili mo dinurado rin 'yung kinukumparahan Okay Same din yung grade
65. 5:32So what can we say They are identical Magkaiba lang yung tindahan halimbawa
66. 5:37pero the asset okay The bigas is identical Parehas silang dinurado Okay
67. 5:43What is this What does it mean by similar O bigas din pero maaaring iba
68. 5:47'yung variety Maaaring parehas sila ng grade pero iba let's say dinorado at
69. 5:52saka sinandoming Pero parehas silang bigas So ganun na lang natin sila
70. 5:56ikumpara Okay So kumbaga kung sakaling wala ito therefore pumunta ka doon They
71. 6:00are similar naman daw naman They are similar naman kasi Okay now at 'yung
72. 6:05pangatlo kung sakaling wala 'yung dalawa coated price So basically meron pa ding
73. 6:10existing price 'di ba Of identical and similar asset in inactive market So
74. 6:17basically ang kaibahan lang naman nung pangatlo okay Doun sa naunang dalawa
75. 6:22there is no active market Okay Kasi when we say active market nga palaging merong
76. 6:28market participant Pero sa inactive market
77. 6:33pa rin Pero hindi sa lahat ng pagkakataon ay available 'yung market
78. 6:38participants Okay But then there is a price Okay And then you can compare
79. 6:43Merong identical and similar assets So basically makukuha mo din yung fair
80. 6:48value noon dahil nga okay may katulad naman na asset may presyo pa rin naman
81. 6:54Okay Again they are in descending hierarchy Okay na sila yung basihan kung
82. 7:00ano ang fair value na basically in transaction in in how we solve
83. 7:04accounting okay given naman siya mararamdaman mo naman na siya yung
84. 7:09market value na siya yung fair value It's just that we are trying to explain
85. 7:13what does it mean Okay Kasi nga yun yung measurement natin Fair value Okay Tumuli
86. 7:19pa tayo ' ba ang sabi natin initially at fair value then subsequently also at
87. 7:26fair value But then there are choices Okay One of those is this Okay Fair
88. 7:31value through profit or loss Now okay Papaano namimili ang company na yun ang
89. 7:37magiging valuation subsequently The answer is it depends in the business
90. 7:43model for managing financial assets na basically merong tatlo nga niyan So ang
91. 7:49ibig kong sabihin lang ay ganito Okay Kung ano yung business model or yung
92. 7:54parang dahilan kung bakit hinahawakan ng business yung financial asset ung
93. 8:00magiging measurement subsequently Okay So again depende sa business model kung
94. 8:06ano 'yung magiging measurement subsequently At basically mayroon ditong
95. 8:11tatlo Okay Ang una to hold investments in order to realize fair value changes
96. 8:18na basically ito yung topic natin ngayon Kung sakaling ang purpose mo okay ay
97. 8:25hawakan 'yung financial asset para kung sakaling magkaroon ng changes sa fair
98. 8:31value makikinabang ka Okay Ang tawag doon is financial asset at fair value
99. 8:39through profit or loss na nga Okay na basically kung iba ang business model mo
100. 8:46hindi ito ang susundin mo sa measurement but rather iba Okay Katulad halimbawa
101. 8:52nitong letter B to hold investment in order to collect contractual cash flow
102. 8:58So kung iyan ang business model mo therefore the financial asset is will be
103. 9:03measured at amortized cost that will be discussed later on in a separate
104. 9:10discussion Okay At yung pangatlo to hold investment in order to collect
105. 9:16contractual cash flows and sell the investment Okay na basically kung ito
106. 9:21naman daw yung business model ang susundin naman natin na measurement is
107. 9:25financial asset at fair value through OCI Maaaring magkaroon ng certain
108. 9:32modification pero basically okay yung measurement ay depende sa kung ano ang
109. 9:38business model na ginagamit ng negosyo sa kanilang investments na nga na
110. 9:43basically financial asset Hindi tayo magfo-focus doun sa letter B and letter
111. 9:48C today But rather doon lang tayo sa letter A Okay We hold investment in
112. 9:55order to realize changes in fair value Okay na basically nandito pa nga yon
113. 10:01Ayan maraming dahilan Hindi lang naman talaga iisa Hindi lang yung business
114. 10:06model May iba pang modification na kaunti Okay At dito nga tayo magfo-focus
115. 10:10lang muna Ang una Okay we choose okay this fair value through profit or loss
116. 10:17measurement okay if the asset is held for trading Okay What does it mean by
117. 10:23held for trading Basically you are plan to sell them and repurchase them in the
118. 10:28near future to take advantage in the fluctuation of the fair value Okay So
119. 10:33ibig sabihin binili mo yung stocks yung investment mo okay na kung saan feeling
120. 10:38mo mura Mura ngayon mababa ang presyo pero pag dumanda ang presyo ibebenta mo
121. 10:43siya Okay Therefore magkakaroon ka ng profit because of changes in the fair
122. 10:48value And then later on maaaring bilhin mo ulit yung same investment na yon Kasi
123. 10:53feeling mo biglang nagmura ulit at pag nagmahal ibebenta mo na naman Kumbaga
124. 10:58nagte-take advantage ka doun sa emotion ng market Kasi alam niyo ba na ang mga
125. 11:03stocks ang mga death securities may mga pagkakataonang nagpa-flock talaga ang
126. 11:08kanilang presyo dahil sa emosyon And you are taking advantage of that Hindi dahil
127. 11:14sa gusto mong maging investor talaga nung kanilang negosyo But rather gusto
128. 11:17mo lang makinabang sa ganong scenario Therefore yung asset mo is really held
129. 11:23for trading Okay Maaari din namang part siya ng portfolio na kung saan yun yung
130. 11:28recent actual pattern na doun leading yung investment na katulad niya O so
131. 11:34therefore they are really held for trading Meaning benta buy and sell ka
132. 11:39diyan Trading nga eh Okay na basically kasali 'yan sa equity whether that is
133. 11:43equity or debt security if your purpose is trading okay therefore you are fair
134. 11:49value through profit or loss okay na basically siya ito ' ba nga ang sabi
135. 11:55natin we measure financial asset depende sa kung ano yung business model na
136. 12:00basically nagkakaroon ka ng ganong klase ng asset kasi ang model mo ay ito
137. 12:05yan yon kaya ang kanyang other terminology okay they are fair value
138. 12:10through profit or loss by requirement of the standard kasi sinabi ng standard na
139. 12:16pag ito yung business model yan yung measurement ano ang example po niyan
140. 12:21kunwari nabalitaan m okay magkakaroon ng bagong cellphone company or parang ano
141. 12:27ah internet provider dito sa Pilipinas na mas mabilis kaysa dun sa mga existing
142. 12:31so anong ginawa mo namimili ka ng shares nila nila speculating na nag-iisip ka
143. 12:37okay na one day tataas ang presyo yan kasi nga magkakaroon ng other
144. 12:41competition magkakaroon ng hype ang market na merong bagong parating so
145. 12:46therefore habang mura pa bibilhin ko Okay Then later on pag nakita ko na
146. 12:50tumataas na yung presyo niyan ibebenta ko na sa iba kasi nga hindi ko naman
147. 12:54talaga intensyon na maging investor talaga niyan Ang gusto ko lang 'yung
148. 12:57changes in fair value So therefore okay that is he help for trading Kung
149. 13:03sinasabing ikaw 'yung trader sa stock market pero ito 'yun Okay So again
150. 13:08whether that is equity 'yung example natin or kahit debt securities kasi alam
151. 13:12niyo ba meron din namang mga deb securities na pwed na mayong market 'di
152. 13:17ba They are also sometimes held for trading din Okay Therefore their
153. 13:21measurement is also at fair value through profit or loss Okay let's move
154. 13:26on Hindi lang yun Okay Maaari ding yung tinatawag na by consequence When we say
155. 13:33consequence parang ano yun truth and truth or consequence yung parang parusa
156. 13:39Okay Dahil ganyan actually parang ganun din naman yung concept ko dahil ganyan
157. 13:44ka Therefore ito ka Ganun yun By consequence liwanagin natin ang sabi
158. 13:49dito okay all other investments encoded okay Equity instrument Niliwanag it must
159. 13:58be equity instrument Pero po sa ating presentation hindi kaabot-usap yung debt
160. 14:04instrument Equity lang talaga kasi yun nga mismo yung pangalan ng term Okay Ano
161. 14:09ba muna itong tinatawag na quoted equity instrument When we say quoted nga dun sa
162. 14:15usapan kanina merong ibinibigay talaga na presyo Okay So meaning in any given
163. 14:20point in time merong presyong ibinigay doun sa mga equity securities Kahit
164. 14:26hindi mo naman talagang purpose na i-trade okay Pero dahil nga coated sila
165. 14:32laging may presyo you will measure that investment at fair value through profit
166. 14:38or loss By consequence kasalanan kasi nila sila ay quoted Ano ang example non
167. 14:45Yung mga kumpanya na listed sa Philippine Stock Exchange Let's say si
168. 14:50Jollibee si si Meralco si GMA ' ba may mga presyo sila anytime of the day pero
169. 14:57they are coated alam mo yyung fair value talaga nila Okay So even if even if you
170. 15:04don't want to trade that and you do not choose other may hindi ka humanap ng
171. 15:09ibang paraan Therefore kaya nga sabi all other investment by consequence you have
172. 15:16to measure that investment at fair value through profit of loss Okay The third
173. 15:21and fourth one is actually pertaining to death securities naman Ayan So basically
174. 15:27hindi po kasali dito yung equity securities dito sa dalawang ginom Ano
175. 15:32yung pangatlo Ang sabi dito revocably designated on initial
176. 15:38recognition that you want to measure that debt investment at fair value
177. 15:44through profit or loss Therefore ang tawag doon by irrevocable designation or
178. 15:50by option First point what does it mean by irevocable Irevocable means hindi na
179. 15:56pupwedeng baliin Okay Hindi mo napupwedeng baguhin Kaya nga irevocable
180. 16:02yung desisyon mo yung pagde-designate mo Okay Ang ibig sabihin niyan even though
181. 16:10pumasok yung death instrument dito sa letter B let's say peppwede naman talaga
182. 16:16siyang i-measure at fear value at amortized cost Pwede siya diyan
183. 16:21or pumasok siya sa letter C yung death securities pwede din siya dian Nga lang
184. 16:27hindi mo sila pinili at yung pagpili mo ay irrevocable Therefore you will be
185. 16:32allowed to measure that at fair value through profit or loss Sa madaling
186. 16:37salita kahit ito 'yung model okay May pagkakataon na ano na iba ang maging
187. 16:42measurement if you choose otherwise Ibig sabihin 'yun yung option mo And by the
188. 16:49way kaya siya'y available lamang sa deb securities at hindi sa equity securities
189. 16:55Kasi nga ang sabi dito to hold investment in order to collect
190. 17:00contractual cash flow To hold investment in order to
191. 17:05collect contractual cash flow Meaning merong regular na ibinabayad na
192. 17:12basically kung debt securities yung contractual na ibinibigay is yung
193. 17:17interest because that is your purpose to collect interest let's say Okay Ay
194. 17:21kapagka equity securities ba ' ba napag-usapan na sa topic na corporation
195. 17:27Required ba ang corporation na magbigay ng dividends every quarter every year
196. 17:31The answer is no They are not required to give you dividends The obligation is
197. 17:35not contractual but rather constructive if you can remember Okay So basically
198. 17:41hindi talaga pwede yung equity dito So going back going back ano yung number
199. 17:46three Pwede naman talaga sanang pumasok yung business model or ito yung
200. 17:51measurement na gamitin yung B or C But then you choose otherwise you choose
201. 17:57this one Therefore you cannot change that ano irrevocable designation
202. 18:01papayagan ka naman kung sakaling death securities na basically hindi nga
203. 18:06pupwede ang equity securities kasi for the first place there is no contractual
204. 18:11cash flows in equity Okay let's move on with letter D Ang sabi naman dito all
205. 18:18debt investments Niliwanag uli na debt investments iyan that do not satisfy the
206. 18:24requirements for measurement at amortized cost and fair value through
207. 18:29OCI Okay So therefore that is by default So anong ibig sabihin Hindi daw niya
208. 18:35na-satisfy itong letter B at letter C Sa madaling salita hindi ganyan yung
209. 18:39business model Hindi letter B hindi letter C Hindi sila ganon So therefore
210. 18:44ano siya By default doun ka sa trading securities or I mean fair value through
211. 18:50profit or loss Yun pala yung mas tamang term Ano kasi yung trading securities ay
212. 18:54para lang talaga if it is held for trading pero basically they can be
213. 18:58interchangeably sometimes okay as we try to solve problems So balikan ko po yung
214. 19:03sinasabi ko ano Okay kung ikukumpara mo yung number three at number four yung
215. 19:08number three kasi pasok siya sa B at C nga lang ayaw mo That's why naging ano
216. 19:14ka ah FBPL Pero itong number four hindi siya pasok sa letter B at letter C Wala
217. 19:22siya pero still alam mo iyung fair value Okay Kasi kung hindi mo alam ang fair
218. 19:27value ibang usapan yan Kasi dapat alam mo talaga muna yung fair value May
219. 19:32evidence kang makukuha na meron Okay Kasi again kung wala meron pong iba pang
220. 19:36usapan Pero kagaya ang punto natin alam mo yung fair value pero hindi siya
221. 19:40pumasok sa B and C Therefore ano siya Okay Therefore fair value through profit
222. 19:45or loss siya by default Okay All debt investments Kasi nga again and again
223. 19:51hindi naman pepwede 'yung equity securities doun sa BNC dahil wala naman
224. 19:57ngang contractual cash flow kung business model ang pag-uusapan
225. 20:02Okay So I believe na pag-usapan na natin How do how does the ano the investment
226. 20:07classified through profit or loss at your value through profit or loss Ito
227. 20:12yung mga dahilan Okay na basically when you try to read the problem sila yung
228. 20:17magiging parang ano mo guide mo kung anong ide-debit mo initially and ano ang
229. 20:22treatment mo subsequently kasi nga mararamdaman mo dito sa mga to Okay And
230. 20:26going back yung binabanggit ko na nga kanina ang other term dito sa fair value
231. 20:31through profit or loss is trading securities Kasi basically okay the
232. 20:37measurement is based on the business model na basically yan yung letter A to
233. 20:42hold uh investment in order to realize fair value changes You really want to
234. 20:47drain yung iba kasi parang ano eh dagdag lang Okay Pero basically babalik ka pa
235. 20:51rin d sa letter A that they are really trading securities Okay Yan Alam na po
236. 20:57natin yung anong ibig sabihin ng fair value Now punta naman tayo d sa changes
237. 21:03na tinatawag Kasi ang sabi dito okay yung changes ay pupunta saan Sa profit
238. 21:09or loss Okay So basically nagiging part ka ng comprehensive income statement
239. 21:15Kasi nga ang sabi through profit or loss ang punta That's how you measure that
240. 21:20Pero ang sabi dito sabi po sa ating presentation whether the changes okay is
241. 21:27temporary or permanent okay all of them goes to profit or loss What does it mean
242. 21:34by temporary changes in fair value May change no kasi nga from initially going
243. 21:39to subsequently nababago talaga ang fair value niyan Okay Ano yung ibig sabihin
244. 21:43ng temporary 'Yun na nga yung binabanggit nga natin kaninang example
245. 21:47Let's say may magtatayo dito na ano na cellite company internet provider Okay
246. 21:52Sa simula pa lang wala pang ginagawa Nabalitaan pa lang ng mga tao okay na
247. 21:57magtatayo daw Okay At maganda daw yung service sa ibang bansa Parang ganon may
248. 22:03pattern na Anong ibig sabihin non Nagkakaroon ng hype okay yung mga tao
249. 22:08doun sa presyo so what can we say That changes is really temporary kasi emosyon
250. 22:14yung nag-drive Okay Wala pang nangyayari pero gumaganda na yung presyue Bumabango
251. 22:19na kasi yung pangalan Malay mo nagkaroon ng balita hindi na daw pala tuloy So
252. 22:23what can we say Okay Therefore bababa yung presyo Emotion pa din yung
253. 22:27nag-drive Okay Pero mamaya natuloy na naman pala Therefore mababago-bago Or
254. 22:32yung mga halimbawang balita na namatay yung presidente nagkaroon ng bagong deal
255. 22:37mag-o-open daw ng bagong branch Balita pa lang emusyon pa lang yung nagda-drive
256. 22:41Un na yun or nakikita nila yung mga nandun sa active market ' ba active
257. 22:45market yan napapansin nila na ang daming bumibili non o therefore doon na din
258. 22:50tayo bumili napapagaya sila okay what can we say those changes is not really
259. 22:56because the business improves or decline but rather emosyon yung naging dahilan
260. 23:03okay there are what we call temporary changes while permanent changes is yun
261. 23:08yung totoo ulit sa totoong bumagsak yung company yung mismong operation ang
262. 23:11na-damage nasunog yung company ' ba parang ganon So therefore that is a
263. 23:15permanent change Ang punto okay kung sakaling ikaw ay at fear value to profit
264. 23:21or loss wala ka ng pakialam whether permanent or temporary Kasi nga
265. 23:27temporary pa lang nire-report mo na sa profit or loss Okay Temporary 'yun e
266. 23:34Temporary Hindi nga sigurado 'yun eh Doun mo nire-report Ay ano pa 'yung
267. 23:37permanent wala ka na lalong pakialam dito kasi nga kung temporary doun mo na
268. 23:41nilalagay kung permanent natural hindi mo na kinakailangan iisipin ng kung ano
269. 23:46pa automatically doun na rin daw sa profit or loss lahatan maaaring wala
270. 23:51pang significance yung sinasabi ko okay kasi nga nandito pa lang tayo sa true
271. 23:55profit or loss na lahat naman ay doon ang punta pero later on as we try to
272. 24:00move on with other okay measurement of financial asset okay classification
273. 24:06maaaring magkaroon significance yung sinasabi nating temporary and permanent
274. 24:10I'm talking here about impairment Okay Actually yung impairment yun yung
275. 24:14permanent decline Okay Ayun ngang temporary decline nire-record natin
276. 24:20profit or loss eh ano pa yung permanent ' ba Malamang doun na din yung punta
277. 24:24kasi nga yun iyung measurement So it doesn't matter actually because of that
278. 24:28because of that yung transaction cost nadamay Ang ibig kong sabihin balikan
279. 24:33natin itong ano measurement initially Okay Generally what is the rule How do
280. 24:38we measure financial asset Generally initially at fair value plus transaction
281. 24:44cost Transaction cost is actually directly attributable cost Kailangan
282. 24:49siya para matuloy yung transaction and usually capitalizable siya dahil nga
283. 24:53directly attributable cost siya Nga lang sa point of view ng trading securities
284. 24:59or fair value through profit or loss irrelevant yung ganng statement Ay ang
285. 25:04kanila nga kasing punto lahat nga ng changes pupunta sa profit or loss
286. 25:09Therefore yung transaction cost na hindi naman talaga totoong investment but
287. 25:13rather directly attributable lang huwag na ring i-capitalize doun din ang punta
288. 25:18niyan kung sakaling mabago ang care value Okay So again and again okay there
289. 25:23is an exemption to the general rule and this one again financial asset how do we
290. 25:28measure Answer fair value plus transaction cost That is a general rule
291. 25:34Okay But then there is an exemption at if the financial asset is measured
292. 25:39through at fair value through profit or loss yung transaction cost is not added
293. 25:44but rather treated as an outright expense kasi ang sabi nila doun din
294. 25:49naman ang punta niyan kapagka nagkaroon ng changes sa fair value dahil lahat
295. 25:53naman ng changes ay pupunta rin naman sa profit or loss Huwag ng i-capitalize
296. 25:57Pinapatagal lang natin Okay Now itong changes sa fair value or or law ah itong
297. 26:04changes na to okay ay basically ang tawag doon ay unrealized gain or
298. 26:11loss Okay What does it mean by unrealized
299. 26:15Okay Realize meaning kung totoong nangyari na yung gain or loss na
300. 26:22basically totoong nangyari na yon kung sakaling tinuluyan mo or ginawa mo yung
301. 26:28business model mo Okay In order to realize pair value changes ng tipong
302. 26:34biglang nagbago iyung presyo ibinenta mo Okay At tumubo ka Ang tawag doun ay
303. 26:39realized gain At kung nalugi ka naman ang tawag doun ay realized loss Nga lang
304. 26:44nga lang Okay May mga pagkakataon na nagi-speculate ka pa Let's say kunwari
305. 26:51100 mo binili naging 120 Ang sabi mo pwede ko ng ibenta kikita ako ng 20
306. 26:56Magkakaroon ako ng realized game Pero huwag muna Alam kong tataas pa So
307. 27:01basically anong tawag doun sa gain mo Is that realized No that is unrealized Okay
308. 27:08Bakit unrealized yung tawag Kasi nga hindi mo pa naman talaga totoong
309. 27:13ibinebenta Kaya ang tawag unrealize Sa madaling salita it's just a paper
310. 27:19Okay Paper gain or loss Anong ibig sabihin niyan Sa papel ka lang merong
311. 27:24gain Sinulat mo lang 100 ngayon 120 na bukas So 'di ba may tubo akong 20 paper
312. 27:30gain yun Ginawa mo na ba binenta mo ba yun Binenta mo na ba talaga Hindi pa
313. 27:34Kaya nga si Unrealized pa lang ang tawag But non the But't n the least Okay Sa
314. 27:40measurement nga na to all the changes okay whether realized or unrealized
315. 27:48whether temporary or permanent all of them will go to profit or law So it
316. 27:54doesn't matter Okay mamaya sa panghuli po natin magbibigay tayo ng illustration
317. 27:59dito na mas maa-appreciate niyo as we try to solve problems Okay let's move on
318. 28:04with the journal entries Too much for this Okay so whenever we buy okay the
319. 28:10securities with debit FBL or pwede rin namang trading securities lalo na kung
320. 28:15papasok naman doun sa number one So basically we credit cash that's when we
321. 28:19buy Then later on there are changes in fair value but you do not actually sell
322. 28:25So therefore okay let's say there is a gain So you are going to debit trading
323. 28:30securities because there is an increase and you are going to credit unrealized
324. 28:36gain dash trading securities or profit or loss na nga kasi nga okay doun ang
325. 28:41punta niya Yan yung sinasabi natin hindi mo pa kasi binebenta at kung sakali
326. 28:46namang bumaba ung presyo therefore baliktad Okay So therefore at the end of
327. 28:50the period let's say yung changes nangyari ng December 31 how do you
328. 28:54measure the investment Basically at fair value Kasi nga yung dating value
329. 28:58ina-update mo sa kung ano ang naging changes okay Dun sa fair value na
330. 29:03basically yung changes saan napunta Through profit or loss Yun ang
331. 29:07unrealized gain or loss na Basically kapagka nagkaroon ka ng actual sale this
332. 29:12is the common ano entry 'Yung debit cash kasi natural benenta mo 'Yung credit
333. 29:16trading securities kasi mawawala na 'yung investment mo and your credit gain
334. 29:20on sale of trading securities kung sakaling tumubo ka naka-debit naman yung
335. 29:25loss kung sakaling naluwi ka Okay Last point May pagkakataon kasi na yung iyong
336. 29:30trading securities ay hindi lang iisa Madami sila Okay Yung iba nagkakaroon ng
337. 29:35gain yung iba nagkakaroon ng loss Kasi nga merong prinsipyo sa finance ' ba Do
338. 29:40not put your eggs in one basket Meaning kung mag-i-invest ka huwag lang dun sa
339. 29:45isang paglalagyan pwede mong hati-hatiin sa magkakaiba para kapagka yung iba'y
340. 29:52nalugi at least meron ka pa din na kumita Okay So ibig sabihin sometimes
341. 29:56the presentation is there as investment A B C may positive may negative So what
342. 30:01will we do Okay Basically basically ah offsetting is allowed Okay Kasi nga iisa
343. 30:07yung kanilang nature iisa yung kanilang business model So whenever you sell just
344. 30:12take out kung alin man yung ibinebenta mo So basically nabanggit na po natin
345. 30:16halos lahat yung theories dito sa ating ano topic fair value through profit or
346. 30:20loss Kung meron pa man akong gustong okay ito po yun Magbibigay tayo ng
347. 30:26kaunting graphical presentation na later on gagamitin din natin as we move along
348. 30:32with other investments Okay Parang guide niyo Okay How do we recognize gain or
349. 30:38loss Ayan
350. 30:40[Musika] So ganito siya Okay Trading securities
351. 30:43na lang ang gamitin natin Ayan Trading securities Actually na ang tawag na sa
352. 30:49kanya ay fair value through profit or loss Okay Let's say binili mo nga Okay
353. 30:55Ulit ulit ulit Binili mo siya at 100 Okay So this is the ano the line this is
354. 31:01the cost and this is the time Okay Nung binili mo siya ng 100 okay lalagyan mo
355. 31:09siya ng parang historical cost line Meaning yun yung 100 all throughout Kung
356. 31:14sakaling hindi mo pa siya binebenta by the way 'di ba Ang sabi lang kung
357. 31:17sakaling feeling mo favorable sao tsaka mo pepwedeng ibenta Okay Inensa kumita
358. 31:21ka or alam mo na bubulusok pa pababa i-cut loss mo na So therefore may mga
359. 31:26pagkakataon binebenta mo kahit lugi Okay Favorable pa rin 'yung sa'yo kasi sa
360. 31:30prediction mo baka lalo pang pumangit So ang punta natin ay ganito Okay Let's say
361. 31:35from 100 nung year nung year zero then l year 1 bigla siyang naging 90 Okay So
362. 31:41what can we say We will recognize unrealized loss here for Php10 Okay Then
363. 31:46later on naging 95 Okay So what can we say We will recognize unreal unrealized
364. 31:53gain here at Php5 Then later on okay nung year 3 naging 120 okay year 3 So
365. 32:00what can we say We will recognize here unrealized gain Okay From 95 going to
366. 32:06120 that is 25 Then later on let's say naging 110 So we will recognize
367. 32:12unrealized loss for 10 Okay Ang kunwari hindi mo binebenta ng ganyang mga
368. 32:17panahon Okay So ano lang ang ating ano gustong i-emphasize po dito ' ba ang
369. 32:22bili mo sa kanya 100 Actually wala kang pakialam doun sa historical cost line
370. 32:29Okay Wala pa rin siyang significance ngayon We will try to compare that later
371. 32:33on sa ibang klase ng investment Doun niyo makikita yung sinasabi po natin
372. 32:36yung ating technique Okay Basta sa ngayon isipin niyo na lang kung ano yung
373. 32:41dating cost yung kanyang dating fair value 'yun 'yung ginagamit mong
374. 32:45pagkukumpara dun sa kasunod Now let's say from 100 naging 90 therefore
375. 32:49unrealized losses kasi bumaba Okay from 90 to 95 okay ang treatment unrealized
376. 32:56gin kasi tumaas From 95 to 120 ang treatment unrealized gin kasi tumaas You
377. 33:01are comparing this two your previous fair value to the subsequent fair value
378. 33:07Okay And let's say bumaba therefore unrealized losse At wala kang pakialam
379. 33:12kung ang bili mo sa kanya dati yung 100 Kasi nga si trading security is all the
380. 33:16changes okay whether temporary or permanent okay realized or unrealized
381. 33:22all goes to okay profit or loss Marami na po akong nabanggit Baka nga yung iba
382. 33:27mare-reveal pa lang talaga yung kanyang significance sa mga kasunod na series ng
383. 33:31ating pag-uusap Okay Pero sa ngayon kung gusto moang balikan 'yung sinasabi
384. 33:35naming discussion patungkol sa financial asset nandirito 'yung lecture maaari
385. 33:39mong mapanood At kung gusto mo pa ng ibang mga discussion patungkol sa
386. 33:43investments nandirito pa 'yung iba naming lecture Okay At kung nag-enjoy ka
387. 33:47pwede mo namang i-like itong video