Accounting equation, 57–58
Accounting estimates, 112–113
Accounting policy, 44–46, 111–112
Accounting Standard Updates (ASUs), 4
Assets
annual assessments, 70
CGU, 71–73
impairment, 69–70
impairment calculation, 70–71
Associates ventures, 97–99
ASUs. See Accounting Standard Updates (ASUs)
Balance sheet, 56
Business combination standards, 94
Cash flow
financing activities, 83–84
investing activities, 82–83
operating activities, 81–82
Cash-generating unit (CGU), 71–73
Cash-settled share-based payment transactions, 148
CBPs. See Contribution-based promises (CBPs)
CGU. See Cash-generating unit (CGU)
Comprehensive income, 37–40
Conceptual framework, 25–27
Consolidation, 103
Contingent assets, 123–124
Contingent liability, 122–123
Contribution-based promises (CBPs), 117
Convergence, 11–13
Currencies, translation of, 146–147
Defined benefit plans, 116
Defined contribution plan, 115–116
Depreciation methods, 50–51
Disclosures
IFRS 7 Financial Instruments, 163–165
IFRS 8 Operating Segments, 138–140
Discrete method, 85
Earnings per share (EPS), 150–151
Employee benefits, 114–117
EPS. See Earnings per share (EPS)
Equity, 73–74
Equity-settled share-based payment transactions, 148
Exchange rate risk, 154
Fair value
measurements, 149–150
Fair value through profit or loss (FVTPL), 167
Financial assets, 166
Financial instrument
IAS 32, 155–159
IAS 39, 159–160
IFRS 7, 163–165
IFRS 9, 165–166
Financial liability, 167
Financial Reporting Council (FRC), 28–30
Financial statements, 27–28
Firm commitment, 160
Five-step model, 41–42
Forecast transaction, 160
Foreign exchange, 145–148
FRC. See Financial Reporting Council (FRC)
FVTPL. See Fair value through profit or loss (FVTPL)
Hedge accounting, 167–168
Hedging, 154
Hedging instrument
accounting for
cash flow hedges, 162–163
fair value hedges, 162
net investment in foreign operation, 163
hedged effectiveness, 161
hedged item, 160
hedging relationships, 161
Hybrid schemes, 116–117
Hyperinflationary economies, 117–119
IAS 1 Profit, 37–40
IAS 10 Events, 88–90
IAS 11 Construction Contracts, 50–52
IAS 12 Income Taxes
deferred tax asset, 144
profits, 142–143
tax inversion, 145
IAS 16 Depreciation, 46–51
IAS 16 Property, Plant and Equipment
acquisition costs and depreciation, 59–61
revaluations, 61–62
IAS 18 Revenue, 52
IAS 19 Employee Benefits
postemployment benefits, 115–117
short-term benefits, 115
IAS 2 Inventories, 43–46
IAS 21 Foreign Exchange Rates
functional and presentation currencies, 146–147
translating foreign operations, 148
IAS 23 Borrowing Costs, 62–64
IAS 24 Related Party Disclosures, 94–95
IAS 27 Separate Financial Statements, 95–96
IAS 28 Investments in Associates and Joint Ventures, 96–99
IAS 29 Financial Reporting, 117–119
IAS 32 Financial Instruments
compound financial instruments, 157–158
offsetting, 158–159
puttable instruments, 156–157
IAS 33 Earnings per Share, 150–151
IAS 34 Interim Financial Reporting, 78, 84–85
main requirements, 86–88
IAS 36 Impairment of Assets
annual assessments, 70
asset impairment, 69–70
calculating impairment, 70–71
CGU, 71–73
IAS 37
contingent assets, 123–124
contingent liability, 122–123
corporate restructuring, 121–122
onerous contracts, 122
provisions, 119–121
IAS 38 Intangible Assets, 64–65
acquired intangible assets, 65
depreciating intangible assets, 66
goodwill, 66–68
internally generated intangible assets, 65–66
IAS 39 Financial Instruments, 159–160
IAS 40 Investment Property
measurement models, 129–131
recognition, 128–129
IAS 41 Agriculture
exclusions, 132
produce, 131–132
recognition and measurement, 132–133
IAS 7 Statements of Cash Flows
financing activities, 83–84
investing activities, 82–83
operating activities, 81
IAS 8
accounting estimates, 112–113
accounting policy, 111–112
prior period errors, 113–114
IASB. See International Accounting Standards Board (IASB)
IASC. See International Accounting Standards Committee (IASC)
IFRS 10 Consolidated Financial Statements, 102–104
IFRS 10 Separate Financial Statements, 102–104
IFRS 11 Joint Arrangements, 104–105
IFRS 13 Fair Value Measurement, 149–150
IFRS 15 Revenue
five-step model, 41–42
requirements of, 41
IFRS 16 Leases, 125–126
IFRS 2 Share-Based Payments, 148–149
IFRS 3 Business Combinations
cost of acquisition, 100–101
identify, 100
intangible assets and goodwill, 101
IFRS 5
and discontinued operations, 124
noncurrent assets held for sale, 125
IFRS 6 Exploration
impaired assets, 135
requirements, 133–135
IFRS 7 Financial Instruments, 163–165
IFRS 8 Operating Segments
disclosures, 138–140
identify, 137
IFRS 9 Financial Instruments
accounting for
financial assets, 165
financial liabilities, 165
hedge accounting, 166
Income, 37–40
Income taxes, 142–145
Intangible assets, 64–68
Integral method, 85
Interest rate risk, 154
Interim reporting, 84–85
International accounting, 6–7
language of
accruals assumption, 18
comparability, 20–21
completeness, 20
faithful representation, 19
going concern, 18
materiality, 19
neutrality, 20
relevance, 18–19
reliability, 19
substance over form, 19
and U.S., 9–11
International accounting standards, 6, 8, 16
International Accounting Standards Board (IASB), 16–17
production process, 21–22
projects, 31–32
International Accounting Standards Committee (IASC), 6
Internationalization, 8–9
Inventories
measurement of, 24
Inventory, 44–46
Investment entities, 104
Investment property, 128–129
Joint ventures, 97–99
Leases, 125–126
Measurement models
IAS 39 Financial Instruments, 159–160
IAS 40 Investment Property, 129–131
IAS 41 Agriculture, 131–132
IFRS 13 Fair Value, 149–150
of inventories, 24
Mineral assets, evaluation of, 133–135
National accounting, 2–5
Noninvestment properties, 128
Onerous contracts, 122
Prior period errors, 113–114
Profit
calculation of, 34–35
IAS 1, 36
IAS 11 Construction Contracts, 37
IAS 16 Depreciation, 36–37
IAS 2 Inventories, 36
IFRS 15 Revenue, 36
Recognition
expense, 24
IAS 39 Financial Instruments, 159–160
IAS 40 Investment Property, 128–129
IAS 41 Agriculture, 131–132
Revenue
IAS 18, 52
SEC. See Securities and Exchange Commission (SEC)
Securities and Exchange Commission (SEC), 4
Share-based payment transactions, 148
Standard, structure of
definitions, 23
disclosures, 24
effective date, 24
expense, 24
inventory measurement, 24
objectives, 23
scope, 23
U.S. accounting, 6–7