INDEX
- File: ifrs22B03w - Interpretation and Application of IFRS Standards 2022 - Published by Wiley
- 12 months expected credit loss 604
- abandonment 254
- absences see compensated absences
- absorption costing 140, 150
- accelerated depreciation methods 166–167
- accounting estimates
- accounting policies 117–137
- amortisation method changes 128–129
- changes in accounting estimates 117–121, 130–131
- changes in 119, 123–129, 912
- consistency 118–119, 304–305
- correction of errors 117–121, 131–136
- definition 119
- financial instrument disclosures 705–707
- financial statements 53–54
- first-time adoption 944–947
- future changes 136
- impracticability exceptions 126, 135–136
- indirect effects 125
- insurance contracts 888–890
- interim financial reporting 911–913
- retrospective application 120, 124–125
- US GAAP comparison 136–137
- Accounting Standards Advisory Forum (ASAF) 2–3
- accounts payable 427–428
- accounts receivable 604
- accrual basis, financial statements 46–47
- accrued benefit obligations
- accrued liabilities 428
- accumulated depreciation 175–176
- acquiree, definition 315
- acquirer, definition 315
- acquisition dates 315, 323–324, 326
- acquisition method 315, 321–327
- acquisition-related costs 315, 339
- acquisitions
- active markets
- actuarial gains and losses 458, 466, 467
- additional comparative information, definition 81
- additional contributed capital, shareholders' equity 372–373, 378–380
- additional goods or services, customer options for 514
- adequacy, insurance liabilities 886–887
- adjusting events after the reporting period 424, 451–454
- adjustments
- adoption
- changes in accounting policies 123–129
- of IFRS 1–2
- of IFRS 17 907
- small and medium-sized entities 12–13
- see also first-time adoption
- advanced shipping notices (ASN) 144
- advances, unearned 428
- advertising contracts, business combinations 344
- agency liabilities 428
- aggregated exposure 664–665
- aggregation
- agricultural activity
- agricultural land 870
- definition 859
- agricultural produce
- agriculture 857–871
- AICPA see American Institute of Certified Public Accountants
- allocation, transaction price 496–499
- alternate uses of assets in business combinations 342
- American Institute of Certified Public Accountants (AICPA) 2
- amortisation
- amortised cost of financial assets/liabilities 605, 617–618, 622, 634–636
- anticipated price changes, interim financial reports 921–922
- antidilution 798, 803, 804–805, 810
- application, changes in accounting policies 123–125
- apportioning, investment property 227–228
- arm's length transaction price assertions, related parties 844
- arrears, cumulative preference dividends 370
- artistic-related intangible assets, business combinations 344
- ASAF see Accounting Standards Advisory Forum
- ASN see advanced shipping notices
- asset ceiling, definition 458
- assets
- with acquiree as lessee 342
- agricultural land 870
- biological 862–870
- borrowing costs 187–195
- business combinations 324–327
- classification 69–72
- contingent 425, 446–449
- corporate 197
- current 70–71
- current cost 29–30, 32
- decommissioning costs 161–163
- deferred tax 768–769, 785–786
- definitions 21–22, 65, 197
- depreciation 164–170
- discontinued operations 239, 257
- disposals 176–178
- exchanges 163, 180–182
- exploration and evaluation 873–880
- fair value 28–29, 32, 733, 739–741
- financial 613–626
- government grants 528–529
- grants related to 525, 528–529
- held by third parties, fair value 742–743
- held-for-sale 89, 239, 252–257, 329
- historical cost 27–28, 31
- idling 342
- impairment 239–252
- accounting methods 245–246
- cash-generating units 243
- collateral impacts 652–653, 703, 719–721
- contract assets 506–507
- corporate assets 244–245
- credit risk 639–648
- credit-impaired financial assets 649
- disclosures 249–252
- discount rates 244
- fair value less costs to sell 242
- financial instruments 639–653, 680–681
- future developments 252
- goodwill 12–13, 355–356
- government grants 532–533
- identification 241–242
- insurance and other 249
- interim financial reports 926
- principal requirements 241
- recoverable amounts 242
- reinsurance contracts 888
- reversals 246–248
- scope of IAS 36 240–241
- US GAAP comparisons 260
- value in use 242–243
- indemnification, business combinations 328
- insurance 884
- intangible 158, 195–223, 870, 918
- maintenance costs 163–164
- measurement 29–34
- net 82
- non-current 72
- not held by third parties, fair value 743
- obtained for no consideration 520–521
- offsetting 74
- operating segments 817
- other 72
- plan 459–460, 466–467
- qualifying 188
- revaluations 171–176
- self-constructed 163–164
- tangible 158
- with uncertain cash flows 342
- value in use 29, 32, 242–243
- see also inventories; property, plant and equipment; receivables
- associates 291–292
- authorisation dates 424, 450–451
- availability of cost measurement 877
- basis of measurement see measurement
- bearer plants
- below market rate government loans, first-time adoption 956
- benchmark reforms, interest rates 679
- best estimates 433
- bill-and-hold arrangements 519
- binomial model, share options pricing 418–422
- biological assets
- Black-Scholes-Merton (BSM) model 416–418
- bonus payments 441
- book value, definitions 188
- borrowing costs 187–194
- boundaries of exchange, business combinations 324–326, 346–348
- breaches, disclosures 704
- broadcast rights 344
- brokered markets 735
- BSM see Black-Scholes-Merton model
- business
- business combinations 313–364
- acquisition dates 321–323, 326
- acquisition method 321–341
- acquisition-related costs 339
- assets and liabilities 324–327
- bargain purchases 333–337, 356–357
- boundaries of exchange 324–326, 346–348
- consideration transferred 332–333
- contingent consideration 333, 340–341, 349
- contingent liabilities 327, 340
- contingent payments 348–350
- definition 315
- disclosure requirements 341–362
- employee benefits 328, 473
- exceptions 327–329
- exit activities 324
- fair value 318, 330–331
- first-time adoption 951–954
- footnote disclosures 359–361
- future developments 363
- goodwill 333–336, 342, 351–354, 355–356
- identifiable net assets 331
- identification of acquirer 321–323
- idling or alternate use of assets 342
- income taxes 327–328, 354–355, 783–785
- indemnification assets 328, 341
- insurance contracts 326
- intangible assets 342–345
- lease contracts 326
- lessee acquirers 341–342
- measurement 324–360
- measurement period 337–341
- non-controlling interests 329–331
- objectives of IFRS 3 318
- pension plans 473
- post-combination accounting and measurement 340–341
- qualifying as a business 319–320
- qualifying transactions 319
- reacquired rights 328–329
- recognition 321–328, 341–360
- replacement awards 350
- restructuring 324
- scope of IFRS 3 318
- share-based payment 329
- step acquisitions 358–359
- structuring techniques 321
- US GAAP comparisons 363–364
- valuation allowances 341
- calculation, deferred tax 763–775
- call options 517–518
- cancellations, equity-settled share-based payments 401, 404
- capability, business combinations 319–320
- capital, concepts 36
- capital leases see finance leases
- capital maintenance, concepts 35–36
- Capital Markets Advisory Committee (CMAC) 5
- capitalisation
- cash, definitions 71, 100, 605
- cash alternatives, share-based payment 408–409
- cash dividends 382–384
- cash equivalents
- cash flows
- amortised cost assets 617–618, 622, 634–636
- classification 102–104
- components of 101–102
- consolidated statement of 114–115
- definitions 100
- direct method 105–106
- fair value through other comprehensive income 616–617, 622
- fair value through profit or loss 615–616, 622
- financial asset classifications 615–620, 622
- foreign currencies 108
- gross vs. net basis 108
- hedge accounting 663–664, 673–674
- indirect method 106–108
- measurement 33–34, 104–109
- modification of contractual 636
- net reporting 109
- per share 108
- scope of IAS 7 100
- statement of 99–116
- see also statement of cash flows
- cash shortfall 605
- cash-generating units
- certification marks 342–343
- changes
- in amortisation method 128–129
- in business models, financial assets 621–622
- in contractual cash flows 636
- in credit risk 629
- in decommissioning costs 163
- in functional currency 589
- income taxes 776–782
- in investment entity status 281
- in non-controlling interest proportions 271
- in non-current assets held-for-sale 256
- in ownership interest 275–276, 300–303
- in provisions 434
- in shareholders' equity 370
- to cash-settled share-based payments 407–408
- to equity-settled share-based payments 401–405
- to financial asset contractual terms 618–620, 649
- to leases 560
- in transaction price 496
- see also modifications
- chief operating decision maker (CODM) 816, 820
- CIF see cost, insurance and freight
- classification
- assets 69–72
- cash flows 102–104
- compound instruments 687–691
- conceptual framework 34–35
- current liabilities 426
- expenses 87–91
- exploration and evaluation assets 876–877
- financial assets 11–12, 613–620, 681–683, 696–700
- financial liabilities 626–627, 681–683, 696–700
- government grants 524–525, 526–527
- held-for-sale assets 253–254
- joint arrangements 285–287
- leases 540–546
- liabilities 72–74, 426
- presentation and disclosure 34–35
- severe hyperinflation 930–931
- shareholders' equity 74–76, 368–369, 373–375
- see also reclassification adjustments
- close members of the family of an individual 836
- closing date, definition 316
- closing rates 568, 573
- CMAC see Capital Markets Advisory Committee
- co-operative entities, members' shares 385–386, 686
- CODM see chief operating decision maker
- collateral, financial instruments 652–653, 703, 719–721
- collective assessment, credit risk increases 647–648
- collective marks, business combinations 342–343
- combinations
- commencement date of lease, definition 538
- commercial substance rules, intangible asset exchanges 202
- commodity broker-traders, definition 140
- common costs, definition 816
- communication, presentation and disclosure as tools 34
- comparability
- complex capital structures, earnings per share 803–804
- components
- conceptual framework 15–40
- aggregation 35
- capital and capital maintenance 35–36
- classification 34–35
- comparability 19
- derecognition 26–27
- disclosure 34–36
- faithful representation 18–19
- financial statements 19–36
- hierarchy of standards 36–37
- measurement 27–34
- objectives 16–17
- Practice Statement 1–Management Commentary 37–39
- presentation 34–36
- qualitative characteristics 18–19
- recognition 24–26
- relevance 18
- reporting entities 19–20
- status and purpose 16
- structure 15–16
- timeliness 19
- understandability 19
- US GAAP comparisons 39–40
- verifiability 19
- consideration
- consolidated financial statements 264–284
- comparability 272
- control issues 265–269
- definition 262
- disclosures 282–284
- disposals 274–276
- foreign operations 580
- hyperinflationary economies 934
- income tax temporary differences 785
- indirect interest 273–274
- intercompany transactions and balances 270
- interim reporting 912
- investment entities 276–284
- measurement 272
- non-controlling interests 270–271
- ownership interest 272–273, 275–276
- procedures 270–276
- reporting dates 272
- subsidiary identification 264–265
- consolidated statement of cash flows 114–115
- constant-growth dividend discount model 750
- constraining estimates, variable consideration 493–494
- construction contracts, business combinations 344
- constructive obligations 424–425, 453
- contingency, definition 316
- contingent assets 425, 446–449
- disclosure requirements 447–449
- contingent issuances, ordinary shares 798, 808–809
- contingent leases, interim financial reports 918
- contingent liabilities 73, 425, 444–446
- contingent obligations 73, 327
- contingent payments 348–350
- contingent settlement provisions 691–692
- contingent share agreements 798, 808–809
- continuing involvement in transferred financial assets 625–626
- contract assets
- contract costs 505–507
- contract liability 484
- contract service margins 901
- contract-based intangible assets 344
- contracts
- bill-and-hold arrangements 519
- combination 487–488
- consideration payable to customer 496
- consignment sales 519
- costs to fulfil 506
- customer options for additional goods or services 514
- customers' unexercised rights 515
- definition 484
- discounts 497–499
- embedded derivatives 632–634
- forward or call options 517–518
- identification 486–490
- incremental costs 505
- lease identification 540–543
- licensing agreements 515–517
- modifications 488–490
- non-cash consideration 495
- non-refundable upfront fees 515
- performance obligations 490–492, 499–505
- principal versus agent considerations 513–514
- put options 518
- repurchase agreements 517
- revenues from 483–522
- sales with a right of return 512
- service concession arrangements 519–520
- services or assets obtained for no consideration 520–521
- settled in shares or for cash 809
- significant financing components 494–495
- time value of money 494–495
- to buy or sell a non-financial item 613
- transaction prices 492–499
- variable consideration 492–494, 499
- warranties 512–513
- contractual obligations, substance of 24
- contractual rights, substance of 24
- contribution reductions, defined benefit plans 469–470
- control
- convergence, Norwalk Agreement 2
- conversion costs 148
- convertible debt instruments 686–691
- convertible equity instruments 380–381, 806–808
- copyrights 215, 344
- corporate assets
- definition 197, 240, 816
- impairment 244–245
- see also business combinations
- coterminous year-end dates, equity method 305
- credit adjusted effective interest rate 605
- credit loss, definition 606
- credit risk
- cumulative translation differences, first-time adoption 956
- current assets
- current liabilities 423–449
- amount estimated, payee known 431–443
- amount estimated, payee unknown 443–444
- amount and payee known 427–431
- bonus payments 441
- classification 72–73, 426
- compensated absences 441–442
- contingencies 444–449
- decommissioning costs 434, 440–442
- definitions 424–426
- disclosures 437–438
- estimations 431–437
- financial guarantee contracts 446
- levies 442–443
- long-term debt 430–431
- nature of 427
- obligations 429–432
- offsetting 427
- onerous contracts 424, 426, 434–435, 440
- premiums 443
- product warranties 443–444
- provisions 431–444
- recognition 426–437
- refinancing 429–430
- US GAAP comparison 454–455
- current service cost, definition 458
- current tax, recognition and measurement 762
- current use, vs. highest and best use 740–741
- customer acceptance, performance obligations 504–505
- customer assets, transfers of 181–182
- customer contracts and relationships, business combinations 343
- customer lists 214, 343
- customer-related intangible assets, business combinations 343
- customers
- cyclical revenues 919
- decision maker, definition 262
- decommissioning costs
- deemed cost, first-time adoption 954–956
- defaults, disclosures 704
- deferred taxes
- asset/liability measurement 768–769, 785–786
- business combinations 354–355
- calculation 763–775
- exemptions 766–767
- initial recognition 767
- measurement 762–763
- recognition 762
- recognition limitations 770–775
- revaluation effects 176–177
- revised expectations 775
- small and medium-sized entities 13
- tax credits 768
- tax law changes 777–778
- tax-planning opportunities 773–774
- unused losses 768
- deficit, definition 458
- defined benefit plans
- accounting and reporting 852–854
- contribution reductions 470–471
- definition 458
- disclosure requirements 474–478, 854–855
- employer's liability and assets 468
- funding liabilities 471
- future developments 480
- measurement 464–467
- minimum funding requirements 468–471
- present value of obligations 460
- refunds 469–470
- defined contribution plans
- demand features, financial liabilities with 744
- denominators, earnings per share 800–803
- deposit component, definition 883
- deposits, returnable 428
- depreciable amounts 159, 168–169, 197, 240
- depreciable assets, government grants 528
- depreciation
- accelerated methods 166–167
- accumulated 175–176
- changes in method 128–129
- definition 240
- interim financial reports 922
- leasehold improvements 170–171
- partial-year 168
- property, plant and equipment 165–171
- residual value 169
- straight-line 166
- sum-of-the years digits 167
- tax methods 170
- units of production method 168–169
- useful life 169–170
- see also amortisation
- derecognition
- derivatives 653–659
- diminishing balance depreciation 166
- direct costing 140, 150
- direct financing leases 545–546, 556–559
- direct insurance contract, definition 884
- direct method 100, 105–106, 107
- Disclosure Initiative (Amendments to IAS 1) 42
- disclosure requirements
- accounting policies 705–707
- accounting policy changes 123–129
- aggregation 35
- agriculture 866–870
- associates 310
- borrowing costs 193
- business combinations 341–362
- classification 34–35
- conceptual framework 34–36
- consolidated financial statements 282–284
- contingencies 447–449
- credit risk 715–722
- current liabilities 437–438
- defined benefit plans 474–478
- defined contribution plans 474–476
- discontinued operations 257–259
- earnings per share 811–812
- error corrections 135–136
- events occurring after reporting period 453
- extractive industries 878–880
- fair value 752–756
- financial instruments 694–727
- financial statements 51–54
- first-time adoption 960–963
- foreign currency 592–593, 597
- government grants 531
- hedge accounting 707–710
- impairment of assets 249–252
- income taxes 777, 789–794
- insurance contracts 891–899, 907
- intangible assets 219–223
- interest in other entities 309–310
- inventories 154–155
- investment entities 310
- investment property 234–238
- joint arrangements 310
- leases 560–564
- liquidity risk 721–722
- market risk 722–725
- non-current assets held-for-sale 256
- objectives 34
- operating segments 820–832
- other comprehensive income 93–95
- overlay approach 897–898
- Practice Statement 1–Management Commentary 37–39
- profit or loss statements 85–93
- property, plant and equipment 179–182
- provisions 437–438
- related parties 841–847
- separate financial statements 307
- share capital 75–76
- share-based payment 411–413
- shareholders' equity 368–373, 386–388
- small and medium-sized entities 13
- statement of cash flows 102–107
- statement of changes in equity 96
- subsidiaries 309
- uncertainty income tax treatments 777
- unconsolidated structured entities 310
- discounted cash flow method 750
- discounting, estimates 433–434
- discounts, transaction pricing 497–499
- discretionary participation features 884, 891, 905
- disposal groups
- disposals
- earnings per share 797–814
- antidilution 803, 804–805, 810
- complex capital structure 803–804
- contingent issuances of ordinary shares 808–809
- contracts settled in shares or for cash 809
- convertible instruments 806–808
- denominators 800–803
- dilution 805–810
- disclosure requirements 811–812
- numerators 799–800
- options and warrants 805–806
- presentation 811–812
- put options 810
- scope of IAS 33 797–798
- sequencing of dilution 810
- simple capital structure 799–803
- US GAAP comparisons 812–814
- economic benefit available as a refund 469–470
- economic life, definition 538
- EDI see electronic data interchange
- effective date of modification 538
- effective interest method 606
- effective interest rates 634–636
- employee benefits 457–482
- accounting objectives 461
- accrued obligations interest 466
- actuarial gains and losses 458, 466, 467
- background 460–461
- business combinations 328, 473
- compensated absences 479
- current service cost 464–467
- defined benefit plans 458, 460, 464, 468–471, 474–478
- defined contribution plans 459, 463–464, 474–476
- definitions 458–460
- disclosure requirements 474–478
- employee contributions 474
- employer's liability and assets 468
- expected return on assets 466–467
- future developments 480
- minimum funding requirements 468–471
- multi-employer plans 459, 471–474
- multiple plans 471–472
- other long-term 480
- other post-retirement 479–480
- other short-term 479
- past service costs 467
- principles of IAS 19 462–463
- recognition 463
- terminations 480
- transition adjustments 468
- US GAAP comparisons 481
- employees
- employees and others providing similar services, definition 391
- employer's liability and assets, defined benefit plans 468
- employment contracts, business combinations 344
- entity-wide disclosure requirements 826–827
- entry price, definition 731
- environmental damage, unlawful 439–440
- equipment, see also property, plant and equipment
- equity
- equity instruments
- equity interests, definition 316
- equity method 292–305
- acquisitions 294–297
- consistency 304–305
- cumulative preferred shares 305
- definition 262
- dilution losses 302–303
- discontinuation 300–302
- impairment of value 303–304
- increasing stakes 302
- intercompany transactions 297–300
- long-term interests 305
- non-monetary assets 300
- ownership interest 300–303
- principles 293–294
- reporting dates 304
- scope 292–293
- separate financial statements 304
- staged acquisitions 302
- estimates
- events occurring after reporting period 425, 449–454
- exceptions, business combinations 327–329
- exchange differences
- exchange markets 735
- exchange rates
- definition 568
- see also foreign currencies
- executory contracts, definition 23–24
- exemptions
- exit activities, business combinations 324
- exit prices 731
- exit strategies, investment entities 278–279
- expected cash flow, definition 731
- expected credit losses 606, 651–652, 716–718
- expected usage, compensated absences 479
- expected value 432–433
- expenses
- exploration for and evaluation of mineral resources 874–876
- exposure, variable returns 268
- extractive industries 873–881
- extraordinary items 109
- fair presentation 45–51
- fair value 28–29, 32, 729–757
- agriculture 862–864
- assets held by third parties 742–743
- assets not held by third parties 743
- business combinations 318, 330–331
- cash-settled share-based payments 405
- definition 159, 197, 226, 240, 252, 606
- definitions 316, 459, 538, 731–732, 860
- disclosure requirements 752–756
- equity-settled share-based payments 400–405
- financial instruments 611–613, 615–621, 627–629, 636–639, 710–714
- future developments 756–757
- hedges 672–673
- hierarchy 401, 745–748
- identification 733–734
- income approach 750–751
- initial recognition 751–752
- inputs 734, 745–748
- investment earnings 280
- investment property 229–231, 232–233, 235–236
- liabilities with a demand feature 744
- liability risk assumptions 733, 741–742
- market approach 748–750
- market participants 733, 736
- measurement 732–752
- most advantageous market 733, 734–736
- net exposures 744–745
- non-controlling interests in combinations 330–331
- non-performance risks 741–742, 744
- not orderly transactions 737–739
- principles and methodologies 732–752
- property, plant and equipment 172–173
- restricted transfers 740, 744
- scope of IFRS 13 730
- share options 414–421
- shareholders' equity 744
- small and medium-sized entities 12–13
- transaction costs 752
- transport costs 752
- unit of account 734
- US GAAP comparisons 757
- valuation premise 733, 739–741
- valuation techniques 734, 748–751
- fair value less costs to sell 154, 242
- fair value through other comprehensive income (FVTOCI) 616–617, 622, 634, 636–639, 703
- fair value through profit or loss (FVTPL) 607, 615–616, 622, 627–629, 636–639
- fairness exception 54
- faithful representation 18–19, 31
- FAS see free alongside
- FASB see Financial Accounting Standards Body
- FIFO see first-in, first-out
- finance leases 544–545, 552–559, 561–562
- Financial Accounting Standards Body (FASB) 2
- financial aid, subject to conditions 529
- financial asset model, government grants 534
- financial assets 613–626
- amortised cost 617–618, 622, 634–636
- business model 614–615, 621–622, 681
- cash flow characteristics 615–620
- changes to contractual terms 618–620, 649
- classifications 11–12, 613–620, 681–683, 696–700
- continuing involvement post-transfer 625–626
- definitions 366, 606–607
- derecognition 623–625
- distinguishing 683–684
- equity instruments 620–621
- exchange differences 637–639
- fair value through other comprehensive income 616–617, 622, 634, 636–639
- fair value through profit or loss 615–616, 622, 627–629, 636–639
- first-time adoption 958
- floating rate 635
- forward-looking information 648–649
- initial measurement 611–613
- offsetting 693–694, 700–702
- overlay approach 896–899
- reclassification 621–622, 681–683, 700
- regular-way purchase or sale 613–614
- subsequent measurement 620
- transfers 623–625
- write-off 636
- write-offs 636
- financial guarantee contracts 446, 607, 884
- financial information, qualitative characteristics 18–19
- financial institutions, net reporting 109
- financial instruments 599–727
- amortised cost 617–618, 622, 634–636
- changes to contractual terms 618–620
- classification 11–12, 613–620, 681–683, 696–700
- collateral 652–653, 703, 719–721
- compound 686–691, 703
- contingent settlement provisions 691–692
- contracts to buy or sell a non-financial item 613
- convertible debt instruments 686–691
- credit risk 628–629, 642–648, 667–668, 715–722
- definitions 605–610
- derecognition 623–625, 629–632
- derivatives 632–634, 653–659
- designation in hedges 664–665
- disclosures 694–727
- effective date of IFRS 9 679
- embedded derivatives 632–634
- equity instrument investments 620–621
- expected credit losses 651–652, 716–718
- fair value 611–613, 615–621, 627–629, 636–639, 710–714
- first-time adoption 957–958
- foreign currency 637–639
- forward-looking information 648–649
- future developments 727
- hedge accounting 653–679
- hedge effectiveness 665–668
- hedge ratios 668–671
- IFRS 9 overview 601–604
- impairments 639–653, 680–681
- initial measurement 611–613
- initial recognition 610–621
- liabilities 626–632
- low credit risk 645
- measurement 11–12, 611–694
- offsetting 693–694, 700–702
- presentation 683–694
- reclassification 621–622, 700
- recognition 11–12, 610–626
- scope of IFRS 7/9 and IAS 32 602–604
- significant increases in credit risk 642–648
- subsequent measurement 620, 627–629
- transaction costs 611
- transfers 623–625
- transition requirements 679–683
- treasury shares 692
- US GAAP comparisons 727
- write-offs 636
- Financial Instruments with Characteristics of Equity Discussion Paper 386
- financial liabilities 626–632
- financial risk, definition 884
- financial statements
- accounting policies 53–54
- accrual basis 46–47
- aggregation 47–48
- changes in standards 41–42
- comparability 49–51
- conceptual framework 19–36
- consistency 51
- consolidated 264–284
- definitions 43–44
- elements of 20–24
- fair presentation 45–51
- fairness exception 54
- future developments 55
- general features 45–51
- going concerns 46
- illustrative 55–60
- income taxes 790–794
- materiality 47–48
- notes 52
- objectives 44
- offsetting 48–49
- other disclosures required 54
- presentation 41–61
- purpose of 44–45
- related parties 841–847
- reportable segments 818–833
- and reporting entities 19–20
- reporting frequency 49
- scope of IAS 1 42–43
- statement of compliance 52–53
- structure and content 51–54
- translation 568, 570–572, 577–587
- US GAAP comparison 61
- financing components, contracts 494–495
- finished goods, definition 140
- firm purchase commitments 253
- first-in, first-out (FIFO) 123, 126–127, 140, 142, 151–152
- first-time adoption 939–970
- accounting policies selection 944–947
- associates, joint ventures and subsidiaries 957
- below market rate government loans 956
- borrowing costs 959
- business combinations 951–954
- comparability 960
- compound financial instruments 957–958
- DaimlerChrysler example 963–970
- decommissioning costs 958
- deemed cost 954–956
- derecognition 944, 948, 950
- disclosure requirements 960–963
- estimates 950
- exceptions, mandatory 949–951
- exemptions, optional 951–959
- explanation of 960
- financial assets/liabilities 958
- financial instruments 957–958
- hedge accounting 950–951
- hyperinflationary economies 959
- interim financial reporting 962
- key dates 943–944
- leases 956
- measurement 948–949
- non-controlling interests 951
- objectives 941–943
- presentation 960–963
- reclassification adjustments 948–949
- recognition 948
- reconciliations 960–961
- scope of IFRS 1 941–943
- service concession arrangements 959
- statement of financial position 947–949
- steps in transition 944
- translation differences 956
- fixed payments, definition 538
- floating rate financial assets/liabilities 635
- FOB see free on board
- footnote disclosures, business combinations 359–361
- forecast transaction, definition 607
- foreign currency 567–598
- cash flows 108
- definitions 568–569
- disclosure requirements 592–593, 597
- disposals of operations 588–589
- exchange differences intragroup 588
- financial assets/liabilities 637–639
- functional currency 569, 570–572, 589
- goodwill 587
- hedging 593–597
- historical cost accounting 574–575
- interim financial reports 925
- inventory 589–590
- monetary items 569, 572
- non-controlling interests 587
- non-monetary items 569, 572, 574–576
- reporting dates 588
- revaluation accounting 575–576
- risk disclosures 724–725
- scope of IAS 21 569–572
- special situations 587–592
- taxation effects 580
- transaction date 569, 573
- transactions 572–576
- translation 568, 570–572, 576–587
- US GAAP comparison 598
- foreign entity, definition 569
- foreign operations
- forgivable loans, definition 525
- form commitment, definition 607
- forward contracts 109, 657, 676–677
- forward options 517–518
- forward-looking information 648–649
- franchise rights 344
- free alongside (FAS) 143–144
- free on board (FOB) 142–144
- fulfilment cash flows 901
- fulfilment value approach 900–902, 904–905
- fulfilment value (of liabilities) 29, 32
- full costing 140, 150
- function of expense method 87–88
- functional currency 569, 570–572
- future investment margins 889
- future issuance shares, options and sales contracts 371
- future operating losses, provisions 434, 435
- futures contracts 109, 657
- FVTOCI see fair value through other comprehensive income
- FVTPL see fair value through profit or loss
- GAAP see Generally Accepted Accounting Practice
- gains
- general borrowings 190
- general corporate expenses 816
- general-purpose financial statements 43
- Generally Accepted Accounting Practice (GAAP) 1–2
- US comparisons
- agriculture 871
- associates, joint arrangements and subsidiaries 311–312
- borrowing costs 193–194
- business combinations 363–364
- changes in accounting policies, estimates and errors 136–137
- conceptual framework 39–40
- current liabilities 454–455
- earnings per share 812–814
- employee benefits 480–481
- extractive industries 880–881
- fair value 757
- financial instruments 727
- financial statements 61
- foreign currency 598
- government grants 535
- income taxes 794–795
- insurance contracts 907–908
- intangible assets 223
- interim financial reports 926–927
- inventories 156
- investment property 238
- leases 564–566
- operating segments 832–833
- post-employment benefit plans 855–856
- property, plant and equipment 185
- related parties 847–848
- revenue contracts 521–522
- share-based payment 413
- shareholders' equity 388
- statement of cash flows 115–116
- statement of financial position 76
- statement of profit or loss and other comprehensive income 97
- US comparisons
- Global Preparers Forum (GPF) 5
- going concerns
- goods
- goodwill
- government, definition 525, 836
- government assistance 524, 525, 533
- government grants 523–535
- agriculture 864–865
- classification 526–527
- definitions 525
- depreciable assets 528
- disclosure requirements 531
- financial aid, subject to conditions 529
- financial asset model 534
- impairments 532–533
- intangible asset model 534–535
- intangible assets 203
- non-depreciable assets 528–529
- non-monetary 529–530
- property, plant and equipment 160
- qualification 524–525
- recognition 526–530
- repayment 531–532
- scope of IAS 20 524–525
- service concessions 533–535
- specific costs 527–528
- statement of cash flows 530–531
- statement of financial position 530
- US GAAP comparison 535
- government loans, first-time adoption 956
- government-related entities 836, 846
- GPF see Global Preparers Forum
- grant date 391
- grants related to assets 525, 527, 528–529
- gross carrying amount of a financial asset 607
- gross investment, leases 538, 552, 556
- gross up method, intangibles 212
- gross vs. net, cash flows 108
- groups
- harvest, definition 860
- hedge accounting 653–679
- cash flows 663–664, 673–674
- definition 608
- derivatives 653–659
- designation of instruments 660–662
- designation of items 662–663
- disclosure requirements 707–710
- discontinuation 671–672
- effectiveness 665–668
- fair value 672–673
- first-time adoption 950–951
- foreign currency transactions 594–596
- forward contracts 657, 676–677
- groups of items 677–679
- interest rate benchmark reform amendments 679
- net investment in foreign operations 593–594, 674
- nil net positions 679
- nominal amounts 663, 677–678
- objective 659–660
- qualifying criteria 660
- rebalancing 668–671
- small and medium-sized entities 12
- time value of options 674–676
- total cash flow 663–664
- transition requirements 683
- hedge effectiveness 607, 665–668
- hedge ratios 608, 668–671
- hedged items 608
- hedging instruments 608
- held for trading 308
- held-for-sale assets 89
- IAS 1 41–61, 423–455
- accrual basis 47
- aggregation 47–48
- asset classification 69–72
- changes in standards 41–42
- comparability 49–51
- consistency 51
- definitions 43–44
- fairness exception 54
- future developments 55
- general features 45–51
- going concerns 46
- liabilities classification 72–74, 426
- materiality 47–48
- objectives 44
- offsetting 48–49, 74, 427
- other disclosures required 54
- reporting frequency 49
- scope 42–43
- structure and content 51–54
- see also current liabilities; financial statements; statement of financial position
- IAS 2 139–156
- IAS 7 99–116
- acquisitions and disposals 109
- cash and cash equivalents 109
- cash flow per share 108
- classifications 102–104
- extraordinary items 109
- financial institution net reporting 109
- financing activities liabilities 110
- foreign currencies 108
- future developments 115
- futures, forward contracts, options and swaps 109
- gross vs. net 108
- other disclosures 109–110
- other requirements 108–109
- presentation 102–107
- reporting basis 104–107
- scope 100
- US GAAP comparisons 115–116
- see also statement of cash flows
- IAS 8 117–137
- accounting estimate changes 117–121, 130–131
- accounting policy changes 119, 123–129
- amortisation method changes 128–129
- applying changes 123–125
- consistency 118–119
- disclosures 154–155
- error corrections 117–121, 130–136
- future changes 136
- impracticability exceptions 126, 135–136
- Improvements Project 118–119, 131
- indirect effects 125
- methods 150–155
- retrospective application 124–125
- US GAAP comparison 136–137, 156
- see also accounting policies
- IAS 16 157–185
- IAS 19 457–482
- accrued obligation interest 466
- actuarial gains and losses 458, 466, 467
- business combinations 473
- current service cost 464–467
- defined benefit plans 458, 460, 464, 468–471, 474–478
- defined contribution plans 459, 463–464, 474–476
- employee contributions 474
- employer's liability and assets 468
- expected return on plan assets 466–467
- future developments 489
- minimum funding requirements 468–471
- multiple/multi-employer plans 459, 471–474
- other employee benefits 462–463, 479–480
- past service costs 467
- pension plans 462
- principles 462–463
- third-party contributions 474
- transition adjustments 468
- US GAAP comparisons 481
- see also employee benefits
- IAS 20 523–535
- IAS 21 567–598
- IAS 24 835–848
- IAS 26
- IAS 27 305–307
- IAS 28 292–305
- acquisitions 294–297
- changes in ownership interest 300–303
- dilution losses 302–303
- discontinuation 300–302
- impairment of value 303–304
- increasing stakes 302
- non-monetary transactions 300
- other requirements 304–305
- principles 293–294
- scope 292–293
- significant influence changes 300
- staged acquisitions 302
- IAS 29 929–937
- see also hyperinflationary economies
- IAS 32 602–604, 683–694
- see also financial instruments
- IAS 33 797–814
- IAS 34 909–928
- IAS 36 240–252, 257–260
- cash-generating units 243
- corporate assets 244–245
- disclosures 249–252
- discount rates 244
- fair value less costs to sell 242
- future developments 252
- identification 241–242
- insurance and other 249
- principal requirements 241
- property, plant and equipment 158
- recoverable amounts 242
- reversals 246–248
- scope 240–241
- US GAAP comparisons 260
- value in use 242–243
- IAS 37
- IAS 38 195–223
- amortisation 213–215
- control 200–201
- costs not satisfying 207–210
- derecognition 218
- development costs 203–209, 212–213
- disclosure requirements 219–223
- exchange transactions 202–203
- future economic benefits 201
- government grants 203
- identifiability 200
- impairment losses 217
- internally generated 203–207
- measurement 201–219
- recognition 199–201
- residual value 216
- revenue-based amortisation 209
- scope of 196
- subsequent costs 209–210
- see also intangible assets
- IAS 40 225–238
- apportioning 227–228
- cost model 229, 232, 236
- disclosure requirements 234–238
- disposals 234
- fair value 229–231, 232–233, 235–236
- interrelationship with IFRS 3 228
- leases to subsidiary or parent 228
- liabilities with linked returns 231
- measurement 228–234
- presentation 234
- recognition 228–234
- scope 226–227
- subsequent expenditures 229–230
- transfers 232–233
- US GAAP comparisons 238
- see also investment property
- IAS 41 857–871
- IASB see International Accounting Standards Board
- identifiability, intangible assets 200
- identifiable assets
- identification
- acquirers 321–323
- agriculture 860–861
- associates 291–292
- contracts 486–490
- derivative transactions 655–657
- fair value 733–734
- impairment of assets 241–242
- income taxes 761
- insurance contracts 900
- investment property 226–228
- leases 540–543
- operating segments 817–823
- performance obligations 490–492
- severe hyperinflation 930–931
- subsidiaries 264–265
- temporary differences, income taxes 764–766
- idling of assets, business combinations 342
- IFRIC 7 935
- IFRIC 12 520
- IFRIC 13 484
- IFRIC 14 468–471
- IFRIC 15 484
- IFRIC 16 594
- IFRIC 17 253
- IFRIC 18 484
- IFRIC 20 878–879
- IFRIC 21 442–443
- IFRIC 22 573
- IFRS 1 939–970
- hyperinflationary economies 930–931
- key dates 943–944
- objectives 941–943
- scope of 941–943
- see also first-time adoption
- IFRS 2 389–422
- binomial model 418–422
- Black-Scholes-Merton model 416–418
- with cash alternatives 408–409
- cash-settled share-based payments 390, 404–407
- employee share options 397, 404–407, 413–422
- equity-settled share-based payments 391, 397–404
- group entities 409–410
- measurement 395–396
- overview 393–395
- recognition 395–396
- US GAAP comparisons 413
- vesting conditions 393, 396–398, 404–405, 406
- see also share-based payment
- IFRS 3 313–364
- acquisition dates 321–323, 326
- assets and liabilities 324–327
- bargain purchases 333–337, 351–354, 356–357
- boundaries of exchange 324–326, 346–348
- disclosure requirements 341–362
- exceptions 327–329
- future developments 363
- goodwill 333–336, 342, 351–354, 355–356
- identification of acquirer 321–323
- intangible assets 342–345
- interrelationship with IAS 40 228
- non-controlling interests 329–331
- objectives 318
- qualifying as a business 319–321
- recognition 321–328, 341–360
- scope 318
- step acquisitions 358–359
- US GAAP comparisons 363–364
- see also business combinations
- IFRS 4 883–908
- accounting principles 888–890
- disclosure requirements 891–899
- discretionary participation features 891
- embedded derivatives 891
- future investment margins 889
- insurance risk 885–886
- liability adequacy 886–887
- prudence 889
- reinsurance asset impairment 888
- shadow accounting 889–890
- unbundling 890
- US GAAP comparisons 907–908
- see also insurance contracts
- IFRS 5 252–259
- IFRS 6 873–881
- IFRS 7 694–727
- applicability 694–696
- required disclosures 694–696
- scope of 602–604
- see also financial instruments
- IFRS 8 815–833
- disclosure requirements 820–832
- reportable segments 820–823
- scope 815–816
- US GAAP comparisons 832–833
- see also operating segments
- IFRS 9 601–683
- IFRS 10 264–284
- consolidation procedures 270–276
- control 265–269
- disposals 274–276
- future developments 310
- indirect interest 273–274
- intercompany transactions and balances 270
- investment entities 276–284
- measurement 272
- non-controlling interests 270–271
- ownership interest 272–273, 275–276
- reporting dates 272
- scope of 264
- uniformity 272
- US GAAP comparisons 311–312
- see also consolidated financial statements
- IFRS 11 284–291
- IFRS 12 307–309
- IFRS 13 729–757
- disclosure requirements 752–756
- principles and methodologies 732–752
- scope of 730
- US GAAP comparisons 757
- see also fair value
- IFRS 16 537–566
- IFRS 17 883, 899–907
- derecognition 906
- disclosures 907
- discretionary participation features 905
- fulfilment value approach 900–902, 904–905
- identification 900
- modification 905
- premium allocation approach 902–903, 904–905
- presentation 906
- recognition 903–904
- reinsurance contracts 904–905
- scope 899–900
- transitional application 907
- unbundling 900
- IFRS Foundation 3–4
- impairment of assets 239–252
- accounting methods 245–246
- cash-generating units 243
- collateral impacts 652–653, 703, 719–721
- contract assets 506–507
- corporate assets 244–245
- credit risk 639–648
- credit-impaired financial assets 649
- disclosures 249–252
- discount rates 244
- fair value less costs to sell 242
- financial instruments 639–653, 680–681
- future developments 252
- goodwill 12–13, 355–356
- government grants 532–533
- identification 241–242
- insurance and other 249
- interim financial reports 926
- principal requirements 241
- recoverable amounts 242
- reinsurance contracts 888
- reversals 246–248
- scope of IAS 36 240–241
- US GAAP comparisons 260
- value in use 242–243
- impracticability exceptions
- impracticable, definitions 43, 119
- Improvements Project, IAS 8 118–119, 131
- inception date of leases 538
- income
- income approach 731, 750–751
- income from a structured entity 263
- income statements see profit or loss; statement of profit or loss and other comprehensive income
- income tax expenses 89
- income taxes 759–795
- assets carried at fair value 785–786
- business combinations 327–328, 354–355, 783–785
- changed circumstances 776–782
- compound financial instruments 787–789
- consolidated financial statements 785
- current 762
- deferred 762–775
- definitions 760–761
- disclosure requirements 777, 789–794
- dividends paid 782–783
- expenses 89
- future developments 794
- identification 761
- initial recognition 767
- interim financial reports 919–921
- interim period changes 780–781
- investments in subsidiaries, associates and joint ventures 786–787
- presentation 789
- profit or loss recognition 763
- recognition limitations 770–775
- revised expectations 775
- scope of IAS 12 760
- share-based payment transactions 789
- specific transactions 782–789
- tax credits 768
- tax law changes 777–778
- tax status changes 779–780
- tax-planning opportunities 773–774
- temporary differences 764–766, 773
- uncertainties over treatments 776–777
- unused losses 768
- US GAAP comparisons 794–795
- inconsistency, of measurement 31
- increasing stakes, in associates 302
- incremental borrowing rate of lessees 539, 547
- incremental costs
- incurred claims, liability for 886–887
- indemnification assets 328, 341
- indentifiable intangibles, definition 196
- indicators, principal versus agent 514
- indirect effects of accounting policy changes 125
- indirect interest 273–274
- indirect (reconciliation) method 100, 106–108
- individual assessment, credit risk increases 645–647
- initial direct costs, leases 539, 550, 553, 557
- initial measurement 32–33
- insurance assets 884
- insurance contracts 883–908
- accounting principles 888–890
- business combinations 326
- combinations 903
- definitions 883–885
- derecognition 906
- disclosure requirements 891–899, 907
- discretionary participation features 891, 905
- embedded derivatives 891
- fulfilment value approach 900–902, 904–905
- future investment margins 889
- groups 903
- identification 900
- IFRS 9 application 892–899
- IFRS 9 exemption 892–895, 899
- IFRS 17 883, 899–907
- impairment recoveries 249
- insurance risk 886
- liability adequacy tests 884, 886–887
- measurement 886–891, 900–904
- modification 905
- overlay approach 896–899
- portfolios 903
- premium allocation approach 902–903, 904–905
- presentation 906
- prudence 889
- recognition 886–891, 903
- reinsurance asset impairment 888
- reinsurance contracts 888, 904–905
- shadow accounting 889–890
- transitional provisions 899, 907
- unbundling 890, 900
- US GAAP comparisons 907–908
- insurance liability 884, 903–904
- insurance risk 884, 886
- insured events 884, 905
- insurer, definition 884
- intangible assets 195–223
- agriculture 870
- amortisation 213–215
- business combinations 327, 342–345
- capitalisation 201–207, 208–209
- control of use 200–201
- cost model 210
- costs not satisfying IAS 38 207–210
- customer lists 214
- definitions 158, 197–198, 317
- derecognition 218
- development costs 203–209, 212–213
- disclosure requirements 219–223
- exchange transactions 202–203
- future economic benefits 201
- government grants 203, 534–535
- identifiability 200
- identifiable 196
- impairment losses 217
- initial measurement 201–210
- interim financial reports 919
- internally generated 203–207
- measurement 201–219
- nature of 199
- qualifying 188
- recognition 198–201, 205–210
- research and development 345
- residual value 216
- revaluation 210–213
- revenue-based amortisation 209
- scope of IAS 38 197
- subsequent costs 209–210
- US GAAP differences 223
- useful life 216
- intellectual property, licensing 515–517
- intercompany transactions and balances 270
- equity method 297–300
- interest
- accrued benefit obligations 466
- financial instruments 692–693
- see also borrowing costs
- interest in another entity 263
- interest rate benchmark reforms 679
- interest rate implicit in lease 539
- interest rate swaps 655–656, 657
- interim financial reporting 909–928
- accounting policy application 911–913
- amortization 922
- anticipated price changes 921–922
- comparability 916–917
- consistency 911–912
- consolidated 912
- definitions 910
- depreciation 922
- estimates 925–926
- first-time adoption 962
- foreign currency 925
- hyperinflationary economies 926
- impairment of assets 926
- income taxes 919–921
- inventory 923–925
- materiality 912–913
- measurement 918–926
- objectives 910–911
- presentation 913–917
- recognition 918–926
- restatement of policies 912
- scope of IAS 34 910
- seasonal, cyclic and occasional 919
- tax credits 920–921
- unevenly incurred annual costs 919
- US GAAP comparisons 926–927
- volume rebates 921–922
- interim periods, tax changes 780–781
- internal property funds 231
- internally generated assets, intangible 203–207
- International Accounting Standards Board (IASB) 1–5
- intersegment sales, definition 816
- intragroup balances, exchange differences 588
- intrasegment sales, definition 816
- intrinsic value, definition 391
- inventories 139–156
- accounting systems 147
- basic concepts 141–142
- by-products 149–150
- changes in accounting policy 123, 127–128
- consignment sales 144–146
- conversion costs 148
- definitions 139–141
- direct costing 150
- disclosures 154–155
- fair value less costs to sell 154
- first-in, first-out method 151–152
- foreign operations 589–590
- goods in transit 142–144
- interim financial reports 923–925
- joint products 149–150
- losses, recovery of 154
- measurement 141–150
- methods 150–155
- net realisable value 153–154
- ownership 142–147
- recognition 141–150
- retail method 154
- right to return purchases 146–147
- specific identification 150–151
- standard costs 154
- standards 139–140
- statement of financial position 70
- tax vs. IFRS 150
- transfers of investment property 233
- US GAAP comparison 156
- valuation 147–150
- weighted-average costing 152–153
- investment entities 276–284
- investment management strategies 277
- investment property 225–238
- apportioning 227–228
- cost model 229, 231, 236
- definitions 226
- disclosure requirements 234–238
- disposals 234
- fair value 229–231, 232–233, 235–236
- identification 226–228
- initial measurement 228–229
- inventory transfers 233
- leased to subsidiary or parent 228
- liabilities with returns linked to 231
- measurement 228–234
- presentation 234
- recognition 228–234
- subsequent expenditures 229–230
- transfers 232–233
- US GAAP comparisons 238
- investors
- joint arrangements 284–291
- joint control, definition 263
- joint operations
- last-in, first-out (LIFO) 141, 142
- layers of groups of items, hedges 678–679
- lease incentives, definition 539
- lease payments, definition 539
- leasehold improvements 170–171
- leases 537–566
- contingent 918
- direct financing 545–546, 556–559
- disclosure requirements 560–564
- finance 544–546, 552–559, 561–562
- first-time adoption 956
- future developments 564
- identification 540–543
- lessees
- lessors
- lessors
- level 1 inputs 731, 746–747
- level 2 inputs 731, 747
- level 3 inputs 731, 747–748
- leveraged leases 546
- levies
- liabilities
- accrued 428
- agency 428
- basis selection 30–33
- business combinations 324–327
- characteristics 30
- classification 72–74
- comparability 30
- conceptual framework 27–34
- current 423–437
- amount estimated, payee known 431–443
- amount estimated, payee unknown 443–444
- amount and payee known 427–431
- classification 426
- contingencies 444–449
- disclosures 437–438
- estimations 431–437
- long-term debt 430–431
- nature of 427
- obligations 428–431
- offsetting 427
- provisions 431–444
- recognition 426–437
- US GAAP comparison 454–455
- current cost 32
- decommissioning costs 161–163
- deferred tax 768–769
- defined benefit plans 471
- definitions 22–23, 66
- with a demand feature 744
- enhancing qualitative characteristics 31
- equity 33
- fair value 28–29, 32
- faithful representation 31
- financial 626–632
- financing activity changes 110
- fulfilment value 29, 32
- future cash flows 30–31
- historical cost 27–28, 31
- inconsistency 31
- for incurred claims 903–904
- initial 32–33
- with inseparable third-party credit agreements 744
- multiple bases 33
- non-performance risk 741–742, 744
- offsetting 74
- relevance 29
- for remaining coverage 903–904
- restricted transfers 744
- with returns linked to investment property 231
- risk assumptions 733, 741–742
- uncertainty 31
- understandability 30–31
- value in use 29, 32
- verifiability 31
- see also contingent liabilities
- lifetime expected credit loss 608
- LIFO see last-in, first-out
- likelihood, contingent liabilities 445
- liquidating dividends 384
- liquidity risk
- litigation, contingent liabilities 445–446
- long-term debt 430–431
- long-term interests, equity method 305
- loss allowances
- losses
- low credit risk instruments 645
- major customers, operating segments 832
- majority voting rights 266–267
- management commentary, Practice Statement 1 37–39
- management contracts, business combinations 344
- mandatory exceptions, first-time adoption 949–951
- manufacturing
- mark-up, definition 141
- markdown, definition 141
- market approach 731, 748–750
- market conditions 391, 398–400
- market participants 317, 731, 733, 736
- market risk 608, 722–725
- market value 608
- market-corroborated inputs 731
- marketable equity instruments 608
- marketing-related intangible assets, business combinations 343
- material, definitions 43, 120
- materiality
- measurement
- agriculture 861–866
- assets 29–34
- borrowing costs 188–193
- business combinations 324–360
- cash flow 33–34
- cash flows 104–107
- cash-settled share-based payments 405
- compensated absences 479
- consolidated financial statements 272
- current liabilities 426–437
- current tax 762
- deferred tax 762–763
- defined benefit plans 464, 468–471
- defined contribution plans 463–464
- equity-settled share-based payments 400–401
- exceptions, business combinations 327–329
- expected credit losses 651–652
- expenses 83–84
- exploration and evaluation assets 877
- fair value 732–752
- financial instruments 11–12, 611–694
- first-time adoption 948–949
- gains and losses 84
- goodwill 333–336
- hedge effectiveness 665–668
- income 83
- inconsistency 31
- insurance contracts 886–891, 900–904
- intangible assets 201–219
- interim financial reports 918–926
- inventories 141–150
- investment entities 280–281
- investment property 228–234
- leases 546–560
- non-controlling interests in combinations 329–331
- non-current assets held-for-sale 254–256
- other long-term employee benefits 480
- other post-retirement benefits 479–480
- performance obligation satisfaction 503–505
- property, plant and equipment 159–176
- qualitative characteristics 31
- share options 414–421
- share-based payment 395–396
- shareholders' equity 368
- small and medium-sized entities 11–13
- see also valuation
- measurement date, definition 392
- measurement periods, business combinations 337–341
- members' shares 385–386, 686
- Memorandum of Understanding (MoU) 2
- mergers and acquisitions
- statement of cash flows 109
- see also business combinations
- mineral resources
- minimum comparative information, definition 82
- minimum funding requirements, defined benefit plans 468–471
- mining see extractive industries; mineral resources; surface mining
- minority voting rights 267–268
- modification gain or loss 609
- modifications
- modified indirect method 106–107
- monetary assets, definition 198
- monetary financial assets and liabilities 609
- monetary items 569, 572
- MoU see Memorandum of Understanding
- multi-employer plans 459, 471–474
- multinational corporations (MNC) 567–598
- functional currency 570–572
- see also foreign currency
- net defined benefit liability (asset), definition 459
- net exposures, fair value 744–745
- net interest on the net defined benefit liability (asset) 459
- net investment in a foreign operation
- net positions, nil, hedge accounting 679
- net realisable value 141, 153–154, 609
- net reporting, financial institutions 109
- net selling price, definition 198
- net settlement, cash-settled share-based payments 405–406
- net trade receivables, operating segments 831–832
- netting method, intangibles 213
- newspaper mastheads, business combinations 343
- nil net positions, hedge accounting 679
- nominal amounts, components 663, 677–678
- non-adjusting events after the reporting period 425, 451–453
- non-cash transactions
- non-competition agreements, business combinations 343
- non-contractual customer relationships, business combinations 343
- non-controlling interests
- non-current assets
- non-current liabilities, classification 73–74
- non-depreciable assets 528–529
- non-financial items, contracts to buy or sell 613
- non-financial risks, risk adjustment 901–902
- non-market conditions, equity-settled share-based payments 398–400
- non-monetary items 569, 572
- objectives
- obligations
- observable inputs 732, 745–747
- occasional revenues 919
- OCI see other comprehensive income
- offsetting
- omitted topics, small and medium-sized entities 9–10
- onerous contracts 425, 426, 434–435, 439–440
- insurance contracts 901
- opening statements of financial position 947–949
- operating activities
- operating leases 544–545, 550–552, 562
- operating profit or loss, definition 817
- operating rights, business combinations 344
- operating segments 815–833
- other employee benefits
- other post-retirement employee benefits 479–480
- other revenues and expenses 88–89
- output methods, contract revenue 503
- overlay approach 896–899
- own credit risk 628–629
- owner-occupied property
- partial-year depreciation 168
- party to a joint arrangement, definition 263
- past due, definition 609
- past events, provisions 431–432
- past service costs
- payments, contingent 348–350
- PCAOB see Public Company Accounting Oversight Board
- PCFRC see Private Company Financial Reporting Committee
- pension plans
- accounting objectives 461
- business combinations 473
- disclosure requirements 474–478
- employee contributions 474
- future developments 480
- IAS 19 applicability 462
- interim financial reports 918
- multi-employer 459, 471–474
- multiple 471–472
- third-party contributions 474
- types 458
- see also defined benefit plans; defined contribution plans
- period-specific effects, accounting policy changes 126
- periodic inventory systems 141, 147
- periodic measurement
- plant see property, plant and equipment
- pledging, definition 609
- policyholders, definition 885
- portfolios, of insurance contracts 903
- post-combination accounting and measurement 340–341
- post-employment benefit plans 463–478, 849–856
- accrued obligations interest 466
- actuarial gains and losses 458, 466, 467
- business combinations 473
- current service cost 464–467
- defined benefit plans 458, 460, 464–467, 468–471, 474–478, 852–855
- defined contribution plans 459, 463–464, 474–476, 851, 854–855
- definitions 460, 849–850
- disclosure requirements 474–478, 854–855
- employee contributions 474
- employer's liability and assets 468
- expected return on assets 466–467
- future developments 480
- interim financial reports 918
- minimum funding requirements 468–471
- multi-employer 459, 471–474
- multiple 471–472
- past service costs 467
- third-party contributions 474
- transition adjustments 468
- US GAAP comparisons 481, 855–856
- post-retirement employee benefits 849–856
- other 479–480
- see also defined benefit plans; defined contribution plans; pension plans; post-employment benefit plans
- potential ordinary shares, definition 799
- power
- Practice Statement 1–Management Commentary 37–39
- preferences, shareholders' equity 370
- preferred shares, convertible 380–381
- premium allocation approach 902–903, 904–905
- premiums, provisions 443
- prepaid expenses 71
- present obligations, provisions 431–432
- present value, defined benefit obligations 460
- presentation
- aggregation 34–35
- classification 34–35
- as communication tool 34
- conceptual framework 34–36
- discontinued operations 257–259
- earnings per share 811–812
- financial instruments 683–694
- financial statements 41–61
- first-time adoption 960–963
- government grants 530–531
- income taxes 789
- insurance contracts 906
- interim financial reports 913–917
- investment property 234
- management commentary 38
- non-current assets held-for-sale 257
- objectives 34
- other comprehensive income 93–95
- profit or loss statement 85–93
- revenue contracts 507
- shareholders' equity 368–373
- statement of cash flows 102–107
- statement of changes in equity 95–96
- Presentation of Items of Other Comprehensive Income 42
- previously recognised financial instruments, first-time adoption 958
- principal market
- principal versus agent considerations 513–514
- principal-to-principal markets 736
- principles, management commentary 37–38
- prior periods
- Private Company Financial Reporting Committee (PCFRC) 14
- probabilities, expected credit losses 651–652
- probable, definition 253
- product warranties, provisions 443–444, 512–513
- production backlogs, business combinations 343
- profit, capital maintenance 36
- profit or loss 77–95
- aggregation 92
- comparative information 86
- concepts 84–85
- cost of goods sold 88
- definitions 44, 81
- discontinued operations 88, 91
- expenses classification 87–91
- function of expense method 87–88
- future developments 96–97
- held-for-sale assets 89
- income concepts 82–83
- income tax recognition 763
- income taxes 790–791
- measurement 83–84
- offsetting 92–93
- operating expenses 88
- other revenues and expenses 88–89
- presentation 85–93
- recognition 83–84
- sales and other operating revenues 88
- scope 80
- separate disclosure items 89
- US GAAP comparisons 97
- see also statement of profit or loss and other comprehensive income
- projected unit credit 457
- property, plant and equipment 157–185
- decommissioning costs 161–163, 958
- definitions 159
- depreciation 165–171
- derecognition 177–178
- disclosures 179–182
- exchanges of assets 164, 180–182
- initial measurement 160–163
- maintenance costs 164–165
- measurement 159–176
- recognition 159, 163–164
- revaluations 171–176
- US GAAP comparisons 185
- see also investment property
- protective rights 263
- provisions 431–444
- bonus payments 441
- changes in 434
- compensated absences 441–442
- decommissioning costs 161–163, 434, 440–442
- definition 426
- disclosure requirements 437–438
- discounting 433–434
- disposal proceeds 434
- dry docking costs 438
- expected value 432–433
- future events and operating losses 434, 435
- interim financial reports 918
- leases 431, 434–435
- levies 442–443
- onerous contracts 434–435, 439–440
- past events 431–432
- premiums 443
- present obligation 432
- product warranties 443–444
- recognition of use 435
- reimbursements 434
- restructuring 435–436
- risks and uncertainties 433
- unlawful environmental damage 438–439
- warranties 512–513
- qualifying assets, definition 188
- qualifying criteria, hedge accounting 660
- qualitative characteristics
- quantitative disclosures, financial instrument risk 715
- raw materials, definition 141
- reacquired rights, business combinations 328–329, 340
- realisation, definition 82
- reasonable additional compensation 619
- rebalancing, hedges 668–671
- receivables, statement of financial position 71, 507
- reclassification
- reclassification adjustments
- recognition
- accounting estimate changes 130–131
- accounting policy changes 123–129
- agriculture 861–866
- borrowing costs 188–193
- business combinations 321–328, 341–360
- call options 517–518
- compensated absences 479
- conceptual framework 24–26
- contract costs 505–507
- current assets 70–72
- current liabilities 72–73, 426–437
- current tax 762
- customer options for additional goods or services 514
- customers' unexercised rights 515
- deferred tax 762, 770–775
- definition 82
- employee benefits costs 463
- error correction 131–136
- exceptions, business combinations 327–328
- expenses 83–84
- exploration and evaluation assets 877
- financial instruments 11–12, 610–626
- first-time adoption 948
- forward options 517–518
- gains and losses 84
- goodwill 333–336
- government grants 526–530
- IAS 19 principles 463
- income 83
- insurance contracts 886–891, 903
- intangible assets 198–201, 205–210
- interim financial reports 918–926
- inventories 141–150
- investment property 228–234
- leases 546–560
- licensing revenues 515–517
- non-current assets 72
- non-refundable upfront fees 515
- noncurrent liabilities 73–74
- options contracts 517–518
- other assets 72
- other long-term employee benefits 480
- other post-retirement benefits 479–480
- principal vs. agent considerations 513–514
- property, plant and equipment 159, 163–164
- put options 518
- reinsurance contracts 890, 904–905
- retirement benefit plans 852–855
- revenue contracts 499–505
- sales with a right of return 512
- share-based payment 395–396
- shareholders' equity 368
- small and medium-sized entities 11–12
- termination benefits 480
- warranties 512–513
- see also measurement
- reconciliation method see indirect method
- reconciliations, first-time adoption 960–961
- recourse, definition 609
- recoverable amounts
- refunds, defined benefit plans 469–470
- regular-way purchase or sale
- reinsurers, definition 885
- related parties 835–848
- aggregation of disclosures 844–845
- arm's length transaction price assertions 844
- comparatives 846
- compensation 845
- definitions 836–837
- disclosure requirements 841–847
- government-related entities 846
- identification 837–841
- need for disclosures 837–838
- parent–subsidiary relationships 843
- scope of IAS 24 839
- significant influence 840–841
- substance over form 839–840
- transactions 837
- US GAAP comparisons 847–848
- relevant activities, definition 263
- reload features 392
- reload options 392
- remaining coverage, liabilities for 903–904
- remeasurement
- remote contingent losses 445
- removal rights, definition 263
- renewable licence rights 215
- repayment, government grants 531–532
- replacement awards, business combinations 350
- reportable segments 820–823
- reporting, operating cash flows 104–109
- reporting dates
- reporting entities 19–20, 569
- reporting frequency, financial statements 49
- reporting period disclosure 86
- repurchase agreements 517, 610
- research, definition 198
- research and development
- retail method 141, 154
- retained earning, statement of financial position 75
- retained earnings, shareholders' equity 373, 381–382
- retirement, investment property 234
- retirement benefit plans 849–856
- revenue
- bill-and-hold arrangements 519
- consignment sales 519
- contract costs 505–507
- from contracts with customers 483–522
- customer options for additional goods or services 514
- customers' unexercised rights 515
- definitions 484–485
- disclosure requirements 507–511
- forward or call options 517–518
- government assistance 524, 533
- government grants 523–535
- input methods 503–504
- licensing 515–517
- model 485–505
- non-refundable upfront fees 515
- operating segments 817
- output methods 503
- presentation 507
- principal versus agent considerations 513–514
- put options 518
- repurchase agreements 517
- sales with a right of return 512
- scope of IFRS 15 485
- seasonal, cyclic and occasional 919
- service concession arrangements 519–520, 533–535
- services or assets obtained for no consideration 520–521
- time value of money 494–495
- unearned 428
- US GAAP comparison 521–522
- warranties 512–513
- reverse acquisition, definition 317
- revised expectations, deferred taxes 775
- right to return purchases 146–147, 512
- rights
- sales
- sales contracts, future issuance shares 371
- sales and other operating revenues 88
- sales-based royalties 517
- sales-type leases 545–546, 552–556
- satisfaction, performance obligations 499–505
- seasonal revenues 919
- SEC see Securities and Exchange Commission
- Securities and Exchange Commission (SEC) 2
- securitisation, definition 610
- segment accounting policies, definition 817
- segment assets, definition 817
- segment expenses, definition 817
- segment revenue, definition 817
- self-constructed assets 163–164
- sensitivity analysis 722–723
- separate disclosure items, profit and loss statements 89
- separate financial statements 306–308
- separate vehicle, definition 263
- sequencing, dilutions 810
- service concession arrangements 519–520, 533–535, 959
- service conditions 392
- service marks, business combinations 343
- services
- servicing contracts, business combinations 344
- settlements
- share of losses exceeding the interest 305
- share options
- share subscriptions 377–378
- share unit issuances 377
- share-based payment 389–422
- among group entities 409–410
- arrangements 392
- binomial model 418–422
- Black-Scholes-Merton model 416–418
- business combinations 329
- with cash alternatives 408–409
- cash-settled 390, 405–408
- contingent 798, 808–809
- definitions 390–393
- disclosure requirements 411–413
- employee share options 397, 404–407, 413–422
- equity-settled 391, 397–405
- income taxes 789
- measurement 395–396
- overview 393–395
- recognition 395–396
- small and medium-sized entities 13
- transactions 393
- US GAAP comparisons 413
- vesting conditions 393, 396–398, 404–405, 406
- shareholders' equity 365–388
- additional contributed capital 372–373, 378–380
- classification 74–76, 368–369, 373–375
- compound financial instruments 375–376
- convertible instruments 380–381
- disclosures 368–373, 386–388
- dividends 370, 382–385
- donated capital 380
- fair value 744
- future developments 386
- future reserved issuances 371
- issuances 376–381
- measurement 368
- members' shares 385–386, 686
- movements during year 370
- par value per share 370
- presentation 368–373
- puttable instruments 374–375
- recognition 368
- reserves 372
- retained earnings 373, 381–382
- revaluation reserves 372
- subscriptions 377–378
- treasury shares 370–371, 385, 692
- unit issuances 377
- unpaid capital 369–370
- US GAAP comparisons 388
- shares
- short-term investments, definition 610
- short-term obligations expected to be refinanced 429–430
- SIC 29 533–535
- see also service concession arrangements
- SIC-31 484
- significant financing components, contracts 494–495
- significant increases, credit risk 642–648
- significant influence 291–292, 840–841
- simple capital structures, earnings per share 799–803
- small and medium-sized entities (SMEs)
- application of IFRS 14
- associates and joint ventures 13
- deferred taxes 13
- definition 8–9
- derecognition 12
- disclosure requirements 13
- finance leases 13
- goodwill impairment 12–13
- hedge accounting 12
- implications of IFRS 13–14
- measurement 11–13
- modifications 9–13
- omitted topics 9–10
- overview 8–14
- recognition 11–12
- research and development 13
- share-based payment 13
- specific borrowings 189–190
- specific costs, government grants 527–528
- specific identification 141, 150–151
- spot exchange rates, definition 569
- staged acquisitions 302
- stand-alone selling price
- standstill agreements, business combinations 344
- statement of cash flows 99–116
- acquisitions and disposals 109
- background 100–103
- benefits of 100–102
- cash and cash equivalents 101–102, 109
- cash flow per share 108
- classification 102–104
- consolidated 114–115
- definitions 100
- direct method 105–106, 107
- extraordinary items 109
- financial institutions 109
- financing activities liabilities 110
- foreign currencies 108
- future developments 115
- futures, forward contracts, options and swaps 109
- government grants 530–531
- gross vs. net 108
- illustration 111–114
- indirect method 106–108
- net reporting 108
- non-cash transactions 101
- other disclosures 109–114
- other requirements 108–109
- presentation 102–107
- reporting basis 104–107
- scope of IAS 7 100
- US GAAP comparisons 115–116
- statement of changes in equity 95–96
- statement of financial position 63–76
- agriculture 866
- concepts 67
- definitions 65–66
- elements 65–66
- first-time adoption 947–949
- foreign currency financial assets 639
- future developments 76
- government grants 530
- income taxes 790
- inventories 70
- offsetting 74
- opening 947–949
- receivables 71
- revenue contracts 507
- shareholders' equity 74–76
- structure and content 67–69
- US GAAP comparison 76
- statement of profit or loss and other comprehensive income 77–95
- statements of compliance, financial statements 52–53
- status, of conceptual framework 16
- step acquisitions, business combinations 358–359
- straight-line depreciation 166
- stripping costs, surface mining 878–880
- structure
- structured entities, definition 263
- structures, business combinations 321
- subscriptions, share issuances 377–378
- subsequent expenditures
- subsidiaries
- acquisitions and disposals, statement of cash flows 109
- control 265–269
- definition 263, 317
- disclosure requirements 309
- disposals 274–276
- first-time adoption 957
- future developments 310
- identification 264–265
- indirect interest 273–274
- intercompany transactions and balances 270
- investment entities 276–284
- investment property leases 228
- investments and income taxes 786–787
- measurement 272
- non-controlling interests 270–271
- ownership interest 272–273, 275–276
- power 265–269
- related party disclosures 843
- reporting dates 272
- share-based payments 409–410
- uniformity of accounting 272
- US GAAP comparisons 311–312
- voting rights 266–268
- substance over form, related parties 839–840
- sum-of-the years digits (SYD) depreciation 167
- supply contracts, business combinations 344
- surface mining, stripping costs 878–880
- surplus, definition 458
- suspension, borrowing cost capitalisation 192–193
- swap contracts, statement of cash flows 109
- swaps 655–656, 657
- SYD see sum-of-the years digits
- tangible assets
- tax
- dividend impacts 384
- foreign currency 580
- see also income taxes
- tax loss/credit carrybacks/carryforwards 921
- tax methods, depreciation 170
- tax obligations withheld, cash-settled share-based payments 406–407
- tax status changes 779–780
- tax-planning 773–774
- technological feasibility 205
- technology-based intangible assets, business combinations 345
- temporary differences
- third-party contributions, post-employment benefit plans 474
- third-party credit agreements, liabilities inseparable 744
- time value, of options 674–676
- time value of money 494–495
- timeliness, concept 19
- total comprehensive income, definition 44, 81
- trade date 610
- trade dress, business combinations 343
- trade names, business combinations 343
- trade payables 73
- trade receivables, loss allowances 649–650
- trade secrets 345
- trademarks, business combinations 343
- trading financial assets 71
- transaction costs
- transactions
- transfer pricing, definition 817
- transfers
- customer assets 181–182
- financial assets 623–625
- investment property 232–233
- non-reciprocal 180–181
- see also exchange transactions
- transiting goods 140, 142–144
- transition adjustments, post-employment benefit plans 468
- transition dates 943–944
- transition requirements, hedge accounting 683
- transition to IFRS
- financial instruments 679–683
- key dates 943–944
- steps in 944
- see also first-time adoption
- uncertainty
- unconsolidated structured entities, disclosure requirements 310
- understandability
- unearned revenues or advances 428
- unevenly incurred annual costs 919
- unexercised rights, of customers 515
- uniformity, consolidated financial statements 272
- unit of account
- units of production depreciation 168–169
- unlawful environmental damage 438–439
- unobservable inputs 732, 745, 747–748
- unorderly transactions 737–739
- unpaid capital 369–370
- unpatented technology, business combinations 345
- unquoted equity instruments, transition requirements 683
- unrelated investors 281
- unused losses, deferred income taxes 768
- upfront fees, non-refundable 515
- usage-based royalties 517
- use of provisions recognised 435
- use rights, business combinations 344
- useful financial information, qualitative characteristics 18–19
- useful life 170
- valuation
- year-end bonuses, interim financial reports 918
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.