From A to Z: PAPS 1004
This accounting standard is used in the Philippines to recognize revenue from contracts with customers.
What is PAPS 1004?
This financial product is issued by a bank, allowing customers to borrow money up to a certain limit, typically for purchases or emergencies.
What is a credit card?
It is the independent central monetary authority of the Philippines.
What is Banko Sentral ng Pilipinas (BSP)?
This is the primary source of funding that banks rely on to support their lending and other financial activities.
What is Deposits?
A group of individuals responsible for overseeing the corporate governance of the bank.
What is the Board of Directors?
This is the term used in PAPS 1004 for the amount a company expects to receive in exchange for transferring goods or services.
What is the transaction price?
Under PAPS 1004, this financial statement is used by banks to report their financial position, showing assets, liabilities, and equity.
What is the balance sheet/statement of financial position?
What Republic Act is otherwise known as "The New Central Bank Act"?
What is Republic Act No. 7653?
What type of transactions can customers complete online or through ATMs without bank employee intervention?
What is Digital Transactions?
True or False: Part of responsibility of banks' management is to create an internal audit department.
True?
PAPS 1004 requires companies to recognize this when control of a good or service passes to the customer.
What is Revenue?
In bank accounting, this term describes when a bank reassesses the value of its financial assets and liabilities, especially in response to changes in interest rates or credit risk.
What is revaluation?
It is where the roles and responsibilities of external auditors are derived from
What is Professional Practice?
What financial risk do banks face when the value of their assets suddenly drops?
What is Solvency Risk?
Who are the individuals/group responsible for ensuring that complete access is provided to external auditors?
What is Management?
This is the document that outlines the terms of a business agreement between a company and a customer, essential for applying PAPS 1004.
What is a Contract?
Under PAPS 1004, this term refers to the process when banks recognize revenue from interest earned over the life of a loan, often involving amortization of the loan balance.
What is the effective interest method?
Intended to serve as a basic reference for an effective supervisory system internationally and in all countries, it is the principle to where PAPS 1004 is based.
What is Basel Core Principles?
What do banks need to maintain to ensure they can meet customer withdrawals at any time?
What is Liquidity Reserves?
They are tasked to appoint external auditors.
What is Audit Committee?
In PAPS 1004, this method of recognizing revenue applies when goods or services are transferred to the customer over time, based on the progress of completion.
What is the percentage-of-completion method?
Under PAPS 1004, when a bank modifies the terms of a loan agreement with a customer, it must determine whether the modification is this type of transaction
What is a contract modification?
How many principles are outlined in the Basel Core Principles for Effective Banking Supervision?
What is 29 principles?
What financial event occurs when a large number of depositors withdraw their money due to fears of a bank’s failure?
What is a Bank Run?
An internal audit function is often described as an “internal ________".
What is Watchdog?