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Commission Regulation (EC) No 1126/2008Show full title

Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (Text with EEA relevance)

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  1. Introductory Text

  2. Article 1.The international accounting standards, as defined in Article 2 of Regulation...

  3. Article 2.Regulation (EC) No 1725/2003 is hereby repealed. References to the repealed...

  4. Article 3.This Regulation shall enter into force on the third day...

  5. Signature

    1. ANNEX

      INTERNATIONAL ACCOUNTING STANDARDS

      1. Reproduction allowed within the European Economic Area. All existing rights...

      2. INTERNATIONAL ACCOUNTING STANDARD 1

        Presentation of financial statements

        1. OBJECTIVE

          1. 1 The objective of this standard is to prescribe the basis...

        2. SCOPE

          1. 2 This standard shall be applied to all general purpose financial...

          2. 3 General purpose financial statements are those intended to meet the...

          3. 4 [Deleted]

          4. 5 This standard uses terminology that is suitable for profit-oriented entities,...

          5. 6 Similarly, entities that do not have equity as defined in...

        3. PURPOSE OF FINANCIAL STATEMENTS

          1. 7 Financial statements are a structured representation of the financial position...

        4. COMPONENTS OF FINANCIAL STATEMENTS

          1. 8 A complete set of financial statements comprises:

          2. 9 Many entities present, outside the financial statements, a financial review...

          3. 10 Many entities also present, outside the financial statements, reports and...

        5. DEFINITIONS

          1. 11 The following terms are used in this standard with the...

          2. 12 Assessing whether an omission or misstatement could influence economic decisions...

        6. OVERALL CONSIDERATIONS

          1. Fair presentation and compliance with IFRSs

            1. 13 Financial statements shall present fairly the financial position, financial performance...

            2. 14 An entity whose financial statements comply with IFRSs shall make...

            3. 15 In virtually all circumstances, a fair presentation is achieved by...

            4. 16 Inappropriate accounting policies are not rectified either by disclosure of...

            5. 17 In the extremely rare circumstances in which management concludes that...

            6. 18 When an entity departs from a requirement of a standard...

            7. 19 When an entity has departed from a requirement of a...

            8. 20 Paragraph 19 applies, for example, when an entity departed in a...

            9. 21 In the extremely rare circumstances in which management concludes that...

            10. 22 For the purpose of paragraphs 17-21, an item of information would...

          2. Going concern

            1. 23 When preparing financial statements, management shall make an assessment of...

            2. 24 In assessing whether the going concern assumption is appropriate, management...

          3. Accrual basis of accounting

            1. 25 An entity shall prepare its financial statements, except for cash...

            2. 26 When the accrual basis of accounting is used, items are...

          4. Consistency of presentation

            1. 27 The presentation and classification of items in the financial statements...

            2. 28 A significant acquisition or disposal, or a review of the...

          5. Materiality and aggregation

            1. 29 Each material class of similar items shall be presented separately...

            2. 30 Financial statements result from processing large numbers of transactions or...

            3. 31 Applying the concept of materiality means that a specific disclosure...

          6. Offsetting

            1. 32 Assets and liabilities, and income and expenses, shall not be...

            2. 33 It is important that assets and liabilities, and income and...

            3. 34 IAS 18 Revenue defines revenue and requires it to be measured...

            4. 35 In addition, gains and losses arising from a group of...

          7. Comparative information

            1. 36 Except when a standard or an interpretation permits or requires...

            2. 37 In some cases, narrative information provided in the financial statements...

            3. 38 When the presentation or classification of items in the financial...

            4. 39 When it is impracticable to reclassify comparative amounts, an entity...

            5. 40 Enhancing the inter-period comparability of information assists users in making...

            6. 41 IAS 8 deals with the adjustments to comparative information required when...

        7. STRUCTURE AND CONTENT

          1. Introduction

            1. 42 This standard requires particular disclosures on the face of the...

            2. 43 This standard sometimes uses the term ‘disclosure’ in a broad...

          2. Identification of the financial statements

            1. 44 The financial statements shall be identified clearly and distinguished from...

            2. 45 IFRSs apply only to financial statements, and not to other...

            3. 46 Each component of the financial statements shall be identified clearly....

            4. 47 The requirements in paragraph 46 are normally met by presenting page...

            5. 48 Financial statements are often made more understandable by presenting information...

          3. Reporting period

            1. 49 Financial statements shall be presented at least annually. When an...

            2. 50 Normally, financial statements are consistently prepared covering a one-year period....

          4. Balance sheet

            1. Current/non-current distinction

              1. 51 An entity shall present current and non-current assets, and current...

              2. 52 Whichever method of presentation is adopted, for each asset and...

              3. 53 When an entity supplies goods or services within a clearly...

              4. 54 For some entities, such as financial institutions, a presentation of...

              5. 55 In applying paragraph 51, an entity is permitted to present some...

              6. 56 Information about expected dates of realisation of assets and liabilities...

            2. Current assets

              1. 57 An asset shall be classified as current when it satisfies...

              2. 58 This standard uses the term ‘non-current’ to include tangible, intangible...

              3. 59 The operating cycle of an entity is the time between...

            3. Current liabilities

              1. 60 A liability shall be classified as current when it satisfies...

              2. 61 Some current liabilities, such as trade payables and some accruals...

              3. 62 Other current liabilities are not settled as part of the...

              4. 63 An entity classifies its financial liabilities as current when they...

              5. 64 If an entity expects, and has the discretion, to refinance...

              6. 65 When an entity breaches an undertaking under a long-term loan...

              7. 66 However, the liability is classified as non-current if the lender...

              8. 67 In respect of loans classified as current liabilities, if the...

            4. Information to be presented on the face of the balance...

              1. 68 As a minimum, the face of the balance sheet shall...

              2. 68A The face of the balance sheet shall also include line...

              3. 69 Additional line items, headings and subtotals shall be presented on...

              4. 70 When an entity presents current and non-current assets, and current...

              5. 71 This standard does not prescribe the order or format in...

              6. 72 The judgement on whether additional items are presented separately is...

              7. 73 The use of different measurement bases for different classes of...

            5. Information to be presented either on the face of the...

              1. 74 An entity shall disclose, either on the face of the...

              2. 75 The detail provided in subclassifications depends on the requirements of...

              3. 76 An entity shall disclose the following, either on the face...

              4. 77 An entity without share capital, such as a partnership or...

          5. Income statement

            1. Profit or loss for the period

              1. 78 All items of income and expense recognised in a period...

              2. 79 Normally, all items of income and expense recognised in a...

              3. 80 Other standards deal with items that may meet the Framework...

            2. Information to be presented on the face of the income...

              1. 81 As a minimum, the face of the income statement shall...

              2. 82 The following items shall be disclosed on the face of...

              3. 83 Additional line items, headings and subtotals shall be presented on...

              4. 84 Because the effects of an entity's various activities, transactions and...

              5. 85 An entity shall not present any items of income and...

            3. Information to be presented either on the face of the...

              1. 86 When items of income and expense are material, their nature...

              2. 87 Circumstances that would give rise to the separate disclosure of...

              3. 88 An entity shall present an analysis of expenses using a...

              4. 89 Entities are encouraged to present the analysis in paragraph 88 on...

              5. 90 Expenses are subclassified to highlight components of financial performance that...

              6. 91 The first form of analysis is the nature of expense...

              7. 92 The second form of analysis is the function of expense...

              8. 93 Entities classifying expenses by function shall disclose additional information on...

              9. 94 The choice between the function of expense method and the...

              10. 95 An entity shall disclose, either on the face of the...

          6. Statement of changes in equity

            1. 96 An entity shall present a statement of changes in equity...

            2. 97 An entity shall also present, either on the face of...

            3. 98 Changes in an entity's equity between two balance sheet dates...

            4. 99 This standard requires all items of income and expense recognised...

            5. 100 IAS 8 requires retrospective adjustments to effect changes in accounting policies,...

            6. 101 The requirements in paragraphs 96 and 97 may be met in...

          7. Cash-flow statement

            1. 102 Cash flow information provides users of financial statements with a...

          8. Notes

            1. Structure

              1. 103 The notes shall:

              2. 104 Notes shall, as far as practicable, be presented in a...

              3. 105 Notes are normally presented in the following order, which assists...

              4. 106 In some circumstances, it may be necessary or desirable to...

              5. 107 Notes providing information about the basis of preparation of the...

            2. Disclosure of accounting policies

              1. 108 An entity shall disclose in the summary of significant accounting...

              2. 109 It is important for users to be informed of the...

              3. 110 In deciding whether a particular accounting policy should be disclosed,...

              4. 111 Each entity considers the nature of its operations and the...

              5. 112 An accounting policy may be significant because of the nature...

              6. 113 An entity shall disclose, in the summary of significant accounting...

              7. 114 In the process of applying the entity's accounting policies, management...

              8. 115 Some of the disclosures made in accordance with paragraph 113 are...

            3. Key sources of estimation uncertainty

              1. 116 An entity shall disclose in the notes information about the...

              2. 117 Determining the carrying amounts of some assets and liabilities requires...

              3. 118 The key assumptions and other key sources of estimation uncertainty...

              4. 119 The disclosures in paragraph 116 are not required for assets and...

              5. 120 The disclosures in paragraph 116 are presented in a manner that...

              6. 121 It is not necessary to disclose budget information or forecasts...

              7. 122 When it is impracticable to disclose the extent of the...

              8. 123 The disclosures in paragraph 113 of particular judgements management made in...

              9. 124 The disclosure of some of the key assumptions that would...

            4. Capital

              1. 124A An entity shall disclose information that enables users of its...

              2. 124B To comply with paragraph 124A, the entity discloses the following:

              3. 124C An entity may manage capital in a number of ways...

            5. Other disclosures

              1. 125 An entity shall disclose in the notes:

              2. 126 An entity shall disclose the following, if not disclosed elsewhere...

        8. EFFECTIVE DATE

          1. 127 An entity shall apply this standard for annual periods beginning...

          2. 127A An entity shall apply the amendment in paragraph 96 for annual...

          3. 127B An entity shall apply the requirements of paragraphs 124A-124C for annual...

        9. WITHDRAWAL OF IAS 1 (REVISED 1997)

          1. 128 This standard supersedes IAS 1 Presentation of financial statements revised in...

      3. INTERNATIONAL ACCOUNTING STANDARD 2

        Inventories

        1. OBJECTIVE

          1. 1 The objective of this standard is to prescribe the accounting...

        2. SCOPE

          1. 2 This standard applies to all inventories, except:

          2. 3 This standard does not apply to the measurement of inventories...

          3. 4 The inventories referred to in paragraph 3(a) are measured at net...

          4. 5 Broker-traders are those who buy or sell commodities for others...

        3. DEFINITIONS

          1. 6 The following terms are used in this standard with the...

          2. 7 Net realisable value refers to the net amount that an...

          3. 8 Inventories encompass goods purchased and held for resale, including, for...

        4. MEASUREMENT OF INVENTORIES

          1. 9 Inventories shall be measured at the lower of cost and...

          2. Cost of inventories

            1. 10 The cost of inventories shall comprise all costs of purchase,...

            2. Costs of purchase

              1. 11 The costs of purchase of inventories comprise the purchase price,...

            3. Costs of conversion

              1. 12 The costs of conversion of inventories include costs directly related...

              2. 13 The allocation of fixed production overheads to the costs of...

              3. 14 A production process may result in more than one product...

            4. Other costs

              1. 15 Other costs are included in the cost of inventories only...

              2. 16 Examples of costs excluded from the cost of inventories and...

              3. 17 IAS 23 Borrowing costs identifies limited circumstances where borrowing costs are...

              4. 18 An entity may purchase inventories on deferred settlement terms. When...

            5. Cost of inventories of a service provider

              1. 19 To the extent that service providers have inventories, they measure...

            6. Cost of agricultural produce harvested from biological assets

              1. 20 In accordance with IAS 41 Agriculture inventories comprising agricultural produce that...

            7. Techniques for the measurement of cost

              1. 21 Techniques for the measurement of the cost of inventories, such...

              2. 22 The retail method is often used in the retail industry...

          3. Cost formulas

            1. 23 The cost of inventories of items that are not ordinarily...

            2. 24 Specific identification of cost means that specific costs are attributed...

            3. 25 The cost of inventories, other than those dealt with in...

            4. 26 For example, inventories used in one operating segment may have...

            5. 27 The FIFO formula assumes that the items of inventory that...

          4. Net realisable value

            1. 28 The cost of inventories may not be recoverable if those...

            2. 29 Inventories are usually written down to net realisable value item...

            3. 30 Estimates of net realisable value are based on the most...

            4. 31 Estimates of net realisable value also take into consideration the...

            5. 32 Materials and other supplies held for use in the production...

            6. 33 A new assessment is made of net realisable value in...

        5. RECOGNITION AS AN EXPENSE

          1. 34 When inventories are sold, the carrying amount of those inventories...

          2. 35 Some inventories may be allocated to other asset accounts, for...

        6. DISCLOSURE

          1. 36 The financial statements shall disclose:

          2. 37 Information about the carrying amounts held in different classifications of...

          3. 38 The amount of inventories recognised as an expense during the...

          4. 39 Some entities adopt a format for profit or loss that...

        7. EFFECTIVE DATE

          1. 40 An entity shall apply this standard for annual periods beginning...

        8. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 41 This standard supersedes IAS 2 Inventories (revised in 1993).

          2. 42 This standard supersedes SIC-1 Consistency — different cost formulas for...

      4. INTERNATIONAL ACCOUNTING STANDARD 7

        Cash-flow statements

        1. OBJECTIVE

        2. SCOPE

          1. 1 An entity shall prepare a cash-flow statement in accordance with...

          2. 2 This standard supersedes IAS 7 Statement of changes in financial position,...

          3. 3 Users of an entity's financial statements are interested in how...

        3. BENEFITS OF CASH FLOW INFORMATION

          1. 4 A cash-flow statement, when used in conjunction with the rest...

          2. 5 Historical cash flow information is often used as an indicator...

        4. DEFINITIONS

          1. 6 The following terms are used in this standard with the...

          2. Cash and cash equivalents

            1. 7 Cash equivalents are held for the purpose of meeting short-term...

            2. 8 Bank borrowings are generally considered to be financing activities. However,...

            3. 9 Cash flows exclude movements between items that constitute cash or...

        5. PRESENTATION OF A CASH-FLOW STATEMENT

          1. 10 The cash-flow statement shall report cash flows during the period...

          2. 11 An entity presents its cash flows from operating, investing and...

          3. 12 A single transaction may include cash flows that are classified...

          4. Operating activities

            1. 13 The amount of cash flows arising from operating activities is...

            2. 14 Cash flows from operating activities are primarily derived from the...

            3. 15 An entity may hold securities and loans for dealing or...

          5. Investing activities

            1. 16 The separate disclosure of cash flows arising from investing activities...

          6. Financing activities

            1. 17 The separate disclosure of cash flows arising from financing activities...

        6. REPORTING CASH FLOWS FROM OPERATING ACTIVITIES

          1. 18 An entity shall report cash flows from operating activities using...

          2. 19 Entities are encouraged to report cash flows from operating activities...

          3. 20 Under the indirect method, the net cash flow from operating...

        7. REPORTING CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES

          1. 21 An entity shall report separately major classes of gross cash...

        8. REPORTING CASH FLOWS ON A NET BASIS

          1. 22 Cash flows arising from the following operating, investing or financing...

          2. 23 Examples of cash receipts and payments referred to in paragraph 22(a)...

          3. 24 Cash flows arising from each of the following activities of...

        9. FOREIGN CURRENCY CASH FLOWS

          1. 25 Cash flows arising from transactions in a foreign currency shall...

          2. 26 The cash flows of a foreign subsidiary shall be translated...

          3. 27 Cash flows denominated in a foreign currency are reported in...

          4. 28 Unrealised gains and losses arising from changes in foreign currency...

          5. 29 [Deleted]

          6. 30 [Deleted]

        10. INTEREST AND DIVIDENDS

          1. 31 Cash flows from interest and dividends received and paid shall...

          2. 32 The total amount of interest paid during a period is...

          3. 33 Interest paid and interest and dividends received are usually classified...

          4. 34 Dividends paid may be classified as a financing cash flow...

        11. TAXES ON INCOME

          1. 35 Cash flows arising from taxes on income shall be separately...

          2. 36 Taxes on income arise on transactions that give rise to...

        12. INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

          1. 37 When accounting for an investment in an associate or a...

          2. 38 An entity which reports its interest in a jointly controlled...

        13. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES AND OTHER BUSINESS UNITS

          1. 39 The aggregate cash flows arising from acquisitions and from disposals...

          2. 40 An entity shall disclose, in aggregate, in respect of both...

          3. 41 The separate presentation of the cash flow effects of acquisitions...

          4. 42 The aggregate amount of the cash paid or received as...

        14. NON-CASH TRANSACTIONS

          1. 43 Investing and financing transactions that do not require the use...

          2. 44 Many investing and financing activities do not have a direct...

        15. COMPONENTS OF CASH AND CASH EQUIVALENTS

          1. 45 An entity shall disclose the components of cash and cash...

          2. 46 In view of the variety of cash management practices and...

          3. 47 The effect of any change in the policy for determining...

        16. OTHER DISCLOSURES

          1. 48 An entity shall disclose, together with a commentary by management,...

          2. 49 There are various circumstances in which cash and cash equivalent...

          3. 50 Additional information may be relevant to users in understanding the...

          4. 51 The separate disclosure of cash flows that represent increases in...

          5. 52 The disclosure of segmental cash flows enables users to obtain...

        17. EFFECTIVE DATE

          1. 53 This standard becomes operative for financial statements covering periods beginning...

      5. INTERNATIONAL ACCOUNTING STANDARD 8

        Accounting policies, changes in accounting estimates and errors

        1. OBJECTIVE

          1. 1 The objective of this standard is to prescribe the criteria...

          2. 2 Disclosure requirements for accounting policies, except those for changes in...

        2. SCOPE

          1. 3 This standard shall be applied in selecting and applying accounting...

          2. 4 The tax effects of corrections of prior period errors and...

        3. DEFINITIONS

          1. 5 The following terms are used in this standard with the...

          2. 6 Assessing whether an omission or misstatement could influence economic decisions...

        4. ACCOUNTING POLICIES

          1. Selection and application of accounting policies

            1. 7 When a standard or an interpretation specifically applies to a...

            2. 8 IFRSs set out accounting policies that the IASB has concluded...

            3. 9 Implementation Guidance for Standards issued by the IASB does not...

            4. 10 In the absence of a standard or an interpretation that...

            5. 11 In making the judgement described in paragraph 10, management shall refer...

            6. 12 In making the judgement described in paragraph 10, management may also...

          2. Consistency of accounting policies

            1. 13 An entity shall select and apply its accounting policies consistently...

          3. Changes in accounting policies

            1. 14 An entity shall change an accounting policy only if the...

            2. 15 Users of financial statements need to be able to compare...

            3. 16 The following are not changes in accounting policies:

            4. 17 The initial application of a policy to revalue assets in...

            5. 18 Paragraphs 19-31 do not apply to the change in accounting policy...

            6. Applying changes in accounting policies

              1. 19 Subject to paragraph 23:

              2. 20 For the purpose of this standard, early application of a...

              3. 21 In the absence of a standard or an interpretation that...

              4. Retrospective application

                1. 22 Subject to paragraph 23, when a change in accounting policy is...

              5. Limitations on retrospective application

                1. 23 When retrospective application is required by paragraph 19(a) or (b), a...

                2. 24 When it is impracticable to determine the period-specific effects of...

                3. 25 When it is impracticable to determine the cumulative effect, at...

                4. 26 When an entity applies a new accounting policy retrospectively, it...

                5. 27 When it is impracticable for an entity to apply a...

            7. Disclosure

              1. 28 When initial application of a standard or an interpretation has...

              2. 29 When a voluntary change in accounting policy has an effect...

              3. 30 When an entity has not applied a new standard or...

              4. 31 In complying with paragraph 30, an entity considers disclosing:

        5. CHANGES IN ACCOUNTING ESTIMATES

          1. 32 As a result of the uncertainties inherent in business activities,...

          2. 33 The use of reasonable estimates is an essential part of...

          3. 34 An estimate may need revision if changes occur in the...

          4. 35 A change in the measurement basis applied is a change...

          5. 36 The effect of a change in an accounting estimate, other...

          6. 37 To the extent that a change in an accounting estimate...

          7. 38 Prospective recognition of the effect of a change in an...

          8. Disclosure

            1. 39 An entity shall disclose the nature and amount of a...

            2. 40 If the amount of the effect in future periods is...

        6. ERRORS

          1. 41 Errors can arise in respect of the recognition, measurement, presentation...

          2. 42 Subject to paragraph 43, an entity shall correct material prior period...

          3. Limitations on retrospective restatement

            1. 43 A prior period error shall be corrected by retrospective restatement...

            2. 44 When it is impracticable to determine the period-specific effects of...

            3. 45 When it is impracticable to determine the cumulative effect, at...

            4. 46 The correction of a prior period error is excluded from...

            5. 47 When it is impracticable to determine the amount of an...

            6. 48 Corrections of errors are distinguished from changes in accounting estimates....

          4. Disclosure of prior period errors

            1. 49 In applying paragraph 42, an entity shall disclose the following:

        7. IMPRACTICABILITY IN RESPECT OF RETROSPECTIVE APPLICATION AND RETROSPECTIVE RESTATEMENT

          1. 50 In some circumstances, it is impracticable to adjust comparative information...

          2. 51 It is frequently necessary to make estimates in applying an...

          3. 52 Therefore, retrospectively applying a new accounting policy or correcting a...

          4. 53 Hindsight should not be used when applying a new accounting...

        8. EFFECTIVE DATE

          1. 54 An entity shall apply this standard for annual periods beginning...

        9. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 55 This standard supersedes IAS 8 Net profit or loss for the...

          2. 56 This standard supersedes the following interpretations:

      6. INTERNATIONAL ACCOUNTING STANDARD 10

        Events after the balance sheet date

        1. OBJECTIVE

          1. 1 The objective of this standard is to prescribe:

        2. SCOPE

          1. 2 This standard shall be applied in the accounting for, and...

        3. DEFINITIONS

          1. 3 The following terms are used in this standard with the...

          2. 4 The process involved in authorising the financial statements for issue...

          3. 5 In some cases, an entity is required to submit its...

            1. Example

          4. 6 In some cases, the management of an entity is required...

            1. Example

          5. 7 Events after the balance sheet date include all events up...

        4. RECOGNITION AND MEASUREMENT

          1. Adjusting events after the balance sheet date

            1. 8 An entity shall adjust the amounts recognised in its financial...

            2. 9 The following are examples of adjusting events after the balance...

          2. Non-adjusting events after the balance sheet date

            1. 10 An entity shall not adjust the amounts recognised in its...

            2. 11 An example of a non-adjusting event after the balance sheet...

          3. Dividends

            1. 12 If an entity declares dividends to holders of equity instruments...

            2. 13 If dividends are declared (i.e. the dividends are appropriately authorised and...

        5. GOING CONCERN

          1. 14 An entity shall not prepare its financial statements on a...

          2. 15 Deterioration in operating results and financial position after the balance...

          3. 16 IAS 1 specifies required disclosures if:

        6. DISCLOSURE

          1. Date of authorisation for issue

            1. 17 An entity shall disclose the date when the financial statements...

            2. 18 It is important for users to know when the financial...

          2. Updating disclosure about conditions at the balance sheet date

            1. 19 If an entity receives information after the balance sheet date...

            2. 20 In some cases, an entity needs to update the disclosures...

          3. Non-adjusting events after the balance sheet date

            1. 21 If non-adjusting events after the balance sheet date are material,...

            2. 22 The following are examples of non-adjusting events after the balance...

        7. EFFECTIVE DATE

          1. 23 An entity shall apply this standard for annual periods beginning...

        8. WITHDRAWAL OF IAS 10 (REVISED 1999)

          1. 24 This standard supersedes IAS 10 Events after the balance sheet date...

      7. INTERNATIONAL ACCOUNTING STANDARD 11

        Construction contracts

        1. OBJECTIVE

        2. SCOPE

          1. 1 This standard shall be applied in accounting for construction contracts...

          2. 2 This standard supersedes IAS 11 Accounting for construction contracts approved in...

        3. DEFINITIONS

          1. 3 The following terms are used in this standard with the...

          2. 4 A construction contract may be negotiated for the construction of...

          3. 5 For the purposes of this standard, construction contracts include:

          4. 6 Construction contracts are formulated in a number of ways which,...

        4. COMBINING AND SEGMENTING CONSTRUCTION CONTRACTS

          1. 7 The requirements of this standard are usually applied separately to...

          2. 8 When a contract covers a number of assets, the construction...

          3. 9 A group of contracts, whether with a single customer or...

          4. 10 A contract may provide for the construction of an additional...

        5. CONTRACT REVENUE

          1. 11 Contract revenue shall comprise:

          2. 12 Contract revenue is measured at the fair value of the...

          3. 13 A variation is an instruction by the customer for a...

          4. 14 A claim is an amount that the contractor seeks to...

          5. 15 Incentive payments are additional amounts paid to the contractor if...

        6. CONTRACT COSTS

          1. 16 Contract costs shall comprise:

          2. 17 Costs that relate directly to a specific contract include:

          3. 18 Costs that may be attributable to contract activity in general...

          4. 19 Costs that are specifically chargeable to the customer under the...

          5. 20 Costs that cannot be attributed to contract activity or cannot...

          6. 21 Contract costs include the costs attributable to a contract for...

        7. RECOGNITION OF CONTRACT REVENUE AND EXPENSES

          1. 22 When the outcome of a construction contract can be estimated...

          2. 23 In the case of a fixed price contract, the outcome...

          3. 24 In the case of a cost plus contract, the outcome...

          4. 25 The recognition of revenue and expenses by reference to the...

          5. 26 Under the percentage of completion method, contract revenue is recognised...

          6. 27 A contractor may have incurred contract costs that relate to...

          7. 28 The outcome of a construction contract can only be estimated...

          8. 29 An entity is generally able to make reliable estimates after...

          9. 30 The stage of completion of a contract may be determined...

          10. 31 When the stage of completion is determined by reference to...

          11. 32 When the outcome of a construction contract cannot be estimated...

          12. 33 During the early stages of a contract it is often...

          13. 34 Contract costs that are not probable of being recovered are...

          14. 35 When the uncertainties that prevented the outcome of the contract...

        8. RECOGNITION OF EXPECTED LOSSES

          1. 36 When it is probable that total contract costs will exceed...

          2. 37 The amount of such a loss is determined irrespective of:...

        9. CHANGES IN ESTIMATES

          1. 38 The percentage of completion method is applied on a cumulative...

        10. DISCLOSURE

          1. 39 An entity shall disclose:

          2. 40 An entity shall disclose each of the following for contracts...

          3. 41 Retentions are amounts of progress billings that are not paid...

          4. 42 An entity shall present:

          5. 43 The gross amount due from customers for contract work is...

          6. 44 The gross amount due to customers for contract work is...

          7. 45 An entity discloses any contingent liabilities and contingent assets in...

        11. EFFECTIVE DATE

          1. 46 This standard becomes operative for financial statements covering periods beginning...

      8. INTERNATIONAL ACCOUNTING STANDARD 12

        Income taxes

        1. OBJECTIVE

        2. SCOPE

          1. 1 This standard shall be applied in accounting for income taxes....

          2. 2 For the purposes of this standard, income taxes include all...

          3. 3 [Deleted]

          4. 4 This standard does not deal with the methods of accounting...

        3. DEFINITIONS

          1. 5 The following terms are used in this standard with the...

          2. 6 Tax expense (tax income) comprises current tax expense (current tax...

          3. Tax base

            1. 7 The tax base of an asset is the amount that...

              1. Examples

                1. 1. A machine cost 100. For tax purposes, depreciation of 30...

                2. 2. Interest receivable has a carrying amount of 100. The related...

                3. 3. Trade receivables have a carrying amount of 100. The related...

                4. 4. Dividends receivable from a subsidiary have a carrying amount of...

                5. 5. A loan receivable has a carrying amount of 100. The...

            2. 8 The tax base of a liability is its carrying amount,...

              1. Examples

                1. 1. Current liabilities include accrued expenses with a carrying amount of...

                2. 2. Current liabilities include interest revenue received in advance, with a...

                3. 3. Current liabilities include accrued expenses with a carrying amount of...

                4. 4. Current liabilities include accrued fines and penalties with a carrying...

                5. 5. A loan payable has a carrying amount of 100. The...

            3. 9 Some items have a tax base but are not recognised...

            4. 10 Where the tax base of an asset or liability is...

            5. 11 In consolidated financial statements, temporary differences are determined by comparing...

        4. RECOGNITION OF CURRENT TAX LIABILITIES AND CURRENT TAX ASSETS

          1. 12 Current tax for current and prior periods shall, to the...

          2. 13 The benefit relating to a tax loss that can be...

          3. 14 When a tax loss is used to recover current tax...

        5. RECOGNITION OF DEFERRED TAX LIABILITIES AND DEFERRED TAX ASSETS

          1. TAXABLE TEMPORARY DIFFERENCES

            1. 15 A deferred tax liability shall be recognised for all taxable...

            2. 16 It is inherent in the recognition of an asset that...

              1. Example

            3. 17 Some temporary differences arise when income or expense is included...

            4. 18 Temporary differences also arise when:

          2. Business combinations

            1. 19 The cost of a business combination is allocated by recognising...

          3. Assets carried at fair value

            1. 20 IFRSs permit or require certain assets to be carried at...

          4. Goodwill

            1. 21 Goodwill arising in a business combination is measured as the...

            2. 21A Subsequent reductions in a deferred tax liability that is unrecognised...

            3. 21B Deferred tax liabilities for taxable temporary differences relating to goodwill...

          5. Initial recognition of an asset or liability

            1. 22 A temporary difference may arise on initial recognition of an...

              1. Example illustrating paragraph 22(c)

            2. 23 In accordance with IAS 32 Financial instruments: presentation the issuer of...

          6. Deductible temporary differences

            1. 24 A deferred tax asset shall be recognised for all deductible...

            2. 25 It is inherent in the recognition of a liability that...

              1. Example

            3. 26 The following are examples of deductible temporary differences which result...

            4. 27 The reversal of deductible temporary differences results in deductions in...

            5. 28 It is probable that taxable profit will be available against...

            6. 29 When there are insufficient taxable temporary differences relating to the...

            7. 30 Tax planning opportunities are actions that the entity would take...

            8. 31 When an entity has a history of recent losses, the...

            9. 32 [Deleted]

            10. Initial recognition of an asset or liability

              1. 33 One case when a deferred tax asset arises on initial...

          7. Unused tax losses and unused tax credits

            1. 34 A deferred tax asset shall be recognised for the carryforward...

            2. 35 The criteria for recognising deferred tax assets arising from the...

            3. 36 An entity considers the following criteria in assessing the probability...

          8. Reassessment of unrecognised deferred tax assets

            1. 37 At each balance sheet date, an entity reassesses unrecognised deferred...

          9. Investments in subsidiaries, branches and associates and interests in joint...

            1. 38 Temporary differences arise when the carrying amount of investments in...

            2. 39 An entity shall recognise a deferred tax liability for all...

            3. 40 As a parent controls the dividend policy of its subsidiary,...

            4. 41 The non-monetary assets and liabilities of an entity are measured...

            5. 42 An investor in an associate does not control that entity...

            6. 43 The arrangement between the parties to a joint venture usually...

            7. 44 An entity shall recognise a deferred tax asset for all...

            8. 45 In deciding whether a deferred tax asset is recognised for...

        6. MEASUREMENT

          1. 46 Current tax liabilities (assets) for the current and prior periods...

          2. 47 Deferred tax assets and liabilities shall be measured at the...

          3. 48 Current and deferred tax assets and liabilities are usually measured...

          4. 49 When different tax rates apply to different levels of taxable...

          5. 50 [Deleted]

          6. 51 The measurement of deferred tax liabilities and deferred tax assets...

          7. 52 In some jurisdictions, the manner in which an entity recovers...

            1. Example A

            2. Example B

            3. Example C

          8. 52A In some jurisdictions, income taxes are payable at a higher...

          9. 52B In the circumstances described in paragraph 52A, the income tax consequences...

            1. Example illustrating paragraphs 52A and 52B

          10. 53 Deferred tax assets and liabilities shall not be discounted.

          11. 54 The reliable determination of deferred tax assets and liabilities on...

          12. 55 Temporary differences are determined by reference to the carrying amount...

          13. 56 The carrying amount of a deferred tax asset shall be...

        7. RECOGNITION OF CURRENT AND DEFERRED TAX

          1. 57 Accounting for the current and deferred tax effects of a...

          2. Income statement

            1. 58 Current and deferred tax shall be recognised as income or...

            2. 59 Most deferred tax liabilities and deferred tax assets arise where...

            3. 60 The carrying amount of deferred tax assets and liabilities may...

          3. Items credited or charged directly to equity

            1. 61 Current tax and deferred tax shall be charged or credited...

            2. 62 International financial reporting standards require or permit certain items to...

            3. 63 In exceptional circumstances it may be difficult to determine the...

            4. 64 IAS 16 does not specify whether an entity should transfer each...

            5. 65 When an asset is revalued for tax purposes and that...

            6. 65A When an entity pays dividends to its shareholders, it may...

          4. Deferred tax arising from a business combination

            1. 66 As explained in paragraphs 19 and 26(c), temporary differences may arise...

            2. 67 As a result of a business combination, an acquirer may...

            3. 68 If the potential benefit of the acquiree's income tax loss...

              1. Example

          5. Current and deferred tax arising from share-based payment transactions

            1. 68A In some tax jurisdictions, an entity receives a tax deduction...

            2. 68B As with the research costs discussed in paragraphs 9 and 26(b)...

            3. 68C As noted in paragraph 68A, the amount of the tax deduction...

        8. PRESENTATION

          1. Tax assets and tax liabilities

            1. 69 [Deleted]

            2. 70 [Deleted]

            3. Offset

              1. 71 An entity shall offset current tax assets and current tax...

              2. 72 Although current tax assets and liabilities are separately recognised and...

              3. 73 In consolidated financial statements, a current tax asset of one...

              4. 74 An entity shall offset deferred tax assets and deferred tax...

              5. 75 To avoid the need for detailed scheduling of the timing...

              6. 76 In rare circumstances, an entity may have a legally enforceable...

          2. Tax expense

            1. Tax expense (income) related to profit or loss from ordinary...

              1. 77 The tax expense (income) related to profit or loss from...

            2. Exchange differences on deferred foreign tax liabilities or assets

              1. 78 IAS 21 requires certain exchange differences to be recognised as income...

        9. DISCLOSURE

          1. 79 The major components of tax expense (income) shall be disclosed...

          2. 80 Components of tax expense (income) may include:

          3. 81 The following shall also be disclosed separately:

          4. 82 An entity shall disclose the amount of a deferred tax...

          5. 82A In the circumstances described in paragraph 52A, an entity shall disclose...

          6. 83 [Deleted]

          7. 84 The disclosures required by paragraph 81(c) enable users of financial statements...

          8. 85 In explaining the relationship between tax expense (income) and accounting...

            1. Example illustrating paragraph 85

          9. 86 The average effective tax rate is the tax expense (income)...

          10. 87 It would often be impracticable to compute the amount of...

          11. 87A Paragraph 82A requires an entity to disclose the nature of the...

          12. 87B It would sometimes not be practicable to compute the total...

          13. 87C An entity required to provide the disclosures in paragraph 82A may...

          14. 88 An entity discloses any tax-related contingent liabilities and contingent assets...

        10. EFFECTIVE DATE

          1. 89 This standard becomes operative for financial statements covering periods beginning...

          2. 90 This standard supersedes IAS 12 Accounting for taxes on income, approved...

          3. 91 Paragraphs 52A, 52B, 65A, 81(i), 82A, 87A, 87B, 87C and the...

      9. INTERNATIONAL ACCOUNTING STANDARD 16

        Property, plant and equipment

        1. OBJECTIVE

          1. 1 The objective of this standard is to prescribe the accounting...

        2. SCOPE

          1. 2 This standard shall be applied in accounting for property, plant...

          2. 3 This standard does not apply to:

          3. 4 Other standards may require recognition of an item of property,...

          4. 5 An entity shall apply this standard to property that is...

        3. DEFINITIONS

          1. 6 The following terms are used in this standard with the...

        4. RECOGNITION

          1. 7 The cost of an item of property, plant and equipment...

          2. 8 Spare parts and servicing equipment are usually carried as inventory...

          3. 9 This standard does not prescribe the unit of measure for...

          4. 10 An entity evaluates under this recognition principle all its property,...

          5. Initial costs

            1. 11 Items of property, plant and equipment may be acquired for...

          6. Subsequent costs

            1. 12 Under the recognition principle in paragraph 7, an entity does not...

            2. 13 Parts of some items of property, plant and equipment may...

            3. 14 A condition of continuing to operate an item of property,...

        5. MEASUREMENT AT RECOGNITION

          1. 15 An item of property, plant and equipment that qualifies for...

          2. Elements of cost

            1. 16 The cost of an item of property, plant and equipment...

            2. 17 Examples of directly attributable costs are:

            3. 18 An entity applies IAS 2 Inventories to the costs of obligations...

            4. 19 Examples of costs that are not costs of an item...

            5. 20 Recognition of costs in the carrying amount of an item...

            6. 21 Some operations occur in connection with the construction or development...

            7. 22 The cost of a self-constructed asset is determined using the...

          3. Measurement of cost

            1. 23 The cost of an item of property, plant and equipment...

            2. 24 One or more items of property, plant and equipment may...

            3. 25 An entity determines whether an exchange transaction has commercial substance...

            4. 26 The fair value of an asset for which comparable market...

            5. 27 The cost of an item of property, plant and equipment...

            6. 28 The carrying amount of an item of property, plant and...

        6. MEASUREMENT AFTER RECOGNITION

          1. 29 An entity shall choose either the cost model in paragraph 30...

          2. Cost model

            1. 30 After recognition as an asset, an item of property, plant...

          3. Revaluation model

            1. 31 After recognition as an asset, an item of property, plant...

            2. 32 The fair value of land and buildings is usually determined...

            3. 33 If there is no market-based evidence of fair value because...

            4. 34 The frequency of revaluations depends upon the changes in fair...

            5. 35 When an item of property, plant and equipment is revalued,...

            6. 36 If an item of property, plant and equipment is revalued,...

            7. 37 A class of property, plant and equipment is a grouping...

            8. 38 The items within a class of property, plant and equipment...

            9. 39 If an asset's carrying amount is increased as a result...

            10. 40 If an asset's carrying amount is decreased as a result...

            11. 41 The revaluation surplus included in equity in respect of an...

            12. 42 The effects of taxes on income, if any, resulting from...

          4. Depreciation

            1. 43 Each part of an item of property, plant and equipment...

            2. 44 An entity allocates the amount initially recognised in respect of...

            3. 45 A significant part of an item of property, plant and...

            4. 46 To the extent that an entity depreciates separately some parts...

            5. 47 An entity may choose to depreciate separately the parts of...

            6. 48 The depreciation charge for each period shall be recognised in...

            7. 49 The depreciation charge for a period is usually recognised in...

            8. Depreciable amount and depreciation period

              1. 50 The depreciable amount of an asset shall be allocated on...

              2. 51 The residual value and the useful life of an asset...

              3. 52 Depreciation is recognised even if the fair value of the...

              4. 53 The depreciable amount of an asset is determined after deducting...

              5. 54 The residual value of an asset may increase to an...

              6. 55 Depreciation of an asset begins when it is available for...

              7. 56 The future economic benefits embodied in an asset are consumed...

              8. 57 The useful life of an asset is defined in terms...

              9. 58 Land and buildings are separable assets and are accounted for...

              10. 59 If the cost of land includes the costs of site...

            9. Depreciation method

              1. 60 The depreciation method used shall reflect the pattern in which...

              2. 61 The depreciation method applied to an asset shall be reviewed...

              3. 62 A variety of depreciation methods can be used to allocate...

          5. Impairment

            1. 63 To determine whether an item of property, plant and equipment...

            2. 64 [Deleted]

          6. Compensation for impairment

            1. 65 Compensation from third parties for items of property, plant and...

            2. 66 Impairments or losses of items of property, plant and equipment,...

        7. DERECOGNITION

          1. 67 The carrying amount of an item of property, plant and...

          2. 68 The gain or loss arising from the derecognition of an...

          3. 69 The disposal of an item of property, plant and equipment...

          4. 70 If, under the recognition principle in paragraph 7, an entity recognises...

          5. 71 The gain or loss arising from the derecognition of an...

          6. 72 The consideration receivable on disposal of an item of property,...

        8. DISCLOSURE

          1. 73 The financial statements shall disclose, for each class of property,...

          2. 74 The financial statements shall also disclose:

          3. 75 Selection of the depreciation method and estimation of the useful...

          4. 76 In accordance with IAS 8 an entity discloses the nature and...

          5. 77 If items of property, plant and equipment are stated at...

          6. 78 In accordance with IAS 36 an entity discloses information on impaired...

          7. 79 Users of financial statements may also find the following information...

        9. TRANSITIONAL PROVISIONS

          1. 80 The requirements of paragraphs 24-26 regarding the initial measurement of an...

        10. EFFECTIVE DATE

          1. 81 An entity shall apply this standard for annual periods beginning...

          2. 81A An entity shall apply the amendments in paragraph 3 for annual...

        11. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 82 This standard supersedes IAS 16 Property, plant and equipment (revised in...

          2. 83 This standard supersedes the following interpretations:

      10. INTERNATIONAL ACCOUNTING STANDARD 17

        Leases

        1. OBJECTIVE

          1. 1 The objective of this standard is to prescribe, for lessees...

        2. SCOPE

          1. 2 This standard shall be applied in accounting for all leases...

          2. 3 This standard applies to agreements that transfer the right to...

        3. DEFINITIONS

          1. 4 The following terms are used in this standard with the...

          2. 5 A lease agreement or commitment may include a provision to...

          3. 6 The definition of a lease includes contracts for the hire...

        4. CLASSIFICATION OF LEASES

          1. 7 The classification of leases adopted in this standard is based...

          2. 8 A lease is classified as a finance lease if it...

          3. 9 Because the transaction between a lessor and a lessee is...

          4. 10 Whether a lease is a finance lease or an operating...

          5. 11 Indicators of situations that individually or in combination could also...

          6. 12 The examples and indicators in paragraphs 10 and 11 are not...

          7. 13 Lease classification is made at the inception of the lease....

          8. 14 Leases of land and of buildings are classified as operating...

          9. 15 The land and buildings elements of a lease of land...

          10. 16 Whenever necessary in order to classify and account for a...

          11. 17 For a lease of land and buildings in which the...

          12. 18 Separate measurement of the land and buildings elements is not...

          13. 19 In accordance with IAS 40, it is possible for a lessee...

        5. LEASES IN THE FINANCIAL STATEMENTS OF LESSEES

          1. Finance leases

            1. Initial recognition

              1. 20 At the commencement of the lease term, lessees shall recognise...

              2. 21 Transactions and other events are accounted for and presented in...

              3. 22 If such lease transactions are not reflected in the lessee's...

              4. 23 It is not appropriate for the liabilities for leased assets...

              5. 24 Initial direct costs are often incurred in connection with specific...

            2. Subsequent measurement

              1. 25 Minimum lease payments shall be apportioned between the finance charge...

              2. 26 In practice, in allocating the finance charge to periods during...

              3. 27 A finance lease gives rise to depreciation expense for depreciable...

              4. 28 The depreciable amount of a leased asset is allocated to...

              5. 29 The sum of the depreciation expense for the asset and...

              6. 30 To determine whether a leased asset has become impaired, an...

              7. 31 Lessees shall, in addition to meeting the requirements of IFRS 7...

              8. 32 In addition, the requirements for disclosure in accordance with IAS 16,...

          2. Operating leases

            1. 33 Lease payments under an operating lease shall be recognised as...

            2. 34 For operating leases, lease payments (excluding costs for services such...

            3. 35 Lessees shall, in addition to meeting the requirements of IFRS 7,...

        6. LEASES IN THE FINANCIAL STATEMENTS OF LESSORS

          1. Finance leases

            1. Initial recognition

              1. 36 Lessors shall recognise assets held under a finance lease in...

              2. 37 Under a finance lease substantially all the risks and rewards...

              3. 38 Initial direct costs are often incurred by lessors and include...

            2. Subsequent measurement

              1. 39 The recognition of finance income shall be based on a...

              2. 40 A lessor aims to allocate finance income over the lease...

              3. 41 Estimated unguaranteed residual values used in computing the lessor's gross...

              4. 41A An asset under a finance lease that is classified as...

              5. 42 Manufacturer or dealer lessors shall recognise selling profit or loss...

              6. 43 Manufacturers or dealers often offer to customers the choice of...

              7. 44 The sales revenue recognised at the commencement of the lease...

              8. 45 Manufacturer or dealer lessors sometimes quote artificially low rates of...

              9. 46 Costs incurred by a manufacturer or dealer lessor in connection...

              10. 47 Lessors shall, in addition to meeting the requirements in IFRS 7,...

              11. 48 As an indicator of growth it is often useful also...

          2. Operating leases

            1. 49 Lessors shall present assets subject to operating leases in their...

            2. 50 Lease income from operating leases shall be recognised in income...

            3. 51 Costs, including depreciation, incurred in earning the lease income are recognised...

            4. 52 Initial direct costs incurred by lessors in negotiating and arranging...

            5. 53 The depreciation policy for depreciable leased assets shall be consistent...

            6. 54 To determine whether a leased asset has become impaired, an...

            7. 55 A manufacturer or dealer lessor does not recognise any selling...

            8. 56 Lessors shall, in addition to meeting the requirements of IFRS 7,...

            9. 57 In addition, the disclosure requirements in IAS 16, IAS 36, IAS 38, IAS 40...

        7. SALE AND LEASEBACK TRANSACTIONS

          1. 58 A sale and leaseback transaction involves the sale of an...

          2. 59 If a sale and leaseback transaction results in a finance...

          3. 60 If the leaseback is a finance lease, the transaction is...

          4. 61 If a sale and leaseback transaction results in an operating...

          5. 62 If the leaseback is an operating lease, and the lease...

          6. 63 For operating leases, if the fair value at the time...

          7. 64 For finance leases, no such adjustment is necessary unless there...

          8. 65 Disclosure requirements for lessees and lessors apply equally to sale...

          9. 66 Sale and leaseback transactions may trigger the separate disclosure criteria...

        8. TRANSITIONAL PROVISIONS

          1. 67 Subject to paragraph 68, retrospective application of this standard is encouraged...

          2. 68 An entity that has previously applied IAS 17 (revised 1997) shall...

        9. EFFECTIVE DATE

          1. 69 An entity shall apply this standard for annual periods beginning...

        10. WITHDRAWAL OF IAS 17 (REVISED 1997)

          1. 70 This standard supersedes IAS 17 Leases (revised in 1997).

      11. INTERNATIONAL ACCOUNTING STANDARD 18

        Revenue

        1. OBJECTIVE

        2. SCOPE

          1. 1 This standard shall be applied in accounting for revenue arising...

          2. 2 This standard supersedes IAS 18 Revenue recognition approved in 1982.

          3. 3 Goods includes goods produced by the entity for the purpose...

          4. 4 The rendering of services typically involves the performance by the...

          5. 5 The use by others of entity assets gives rise to...

          6. 6 This standard does not deal with revenue arising from:

        3. DEFINITIONS

          1. 7 The following terms are used in this standard with the...

          2. 8 Revenue includes only the gross inflows of economic benefits received...

        4. MEASUREMENT OF REVENUE

          1. 9 Revenue shall be measured at the fair value of the...

          2. 10 The amount of revenue arising on a transaction is usually...

          3. 11 In most cases, the consideration is in the form of...

          4. 12 When goods or services are exchanged or swapped for goods...

        5. IDENTIFICATION OF THE TRANSACTION

          1. 13 The recognition criteria in this standard are usually applied separately...

        6. SALE OF GOODS

          1. 14 Revenue from the sale of goods shall be recognised when...

          2. 15 The assessment of when an entity has transferred the significant...

          3. 16 If the entity retains significant risks of ownership, the transaction...

          4. 17 If an entity retains only an insignificant risk of ownership,...

          5. 18 Revenue is recognised only when it is probable that the...

          6. 19 Revenue and expenses that relate to the same transaction or...

        7. RENDERING OF SERVICES

          1. 20 When the outcome of a transaction involving the rendering of...

          2. 21 The recognition of revenue by reference to the stage of...

          3. 22 Revenue is recognised only when it is probable that the...

          4. 23 An entity is generally able to make reliable estimates after...

          5. 24 The stage of completion of a transaction may be determined...

          6. 25 For practical purposes, when services are performed by an indeterminate...

          7. 26 When the outcome of the transaction involving the rendering of...

          8. 27 During the early stages of a transaction, it is often...

          9. 28 When the outcome of a transaction cannot be estimated reliably...

        8. INTEREST, ROYALTIES AND DIVIDENDS

          1. 29 Revenue arising from the use by others of entity assets...

          2. 30 Revenue shall be recognised on the following bases:

          3. 31 [Deleted]

          4. 32 When unpaid interest has accrued before the acquisition of an...

          5. 33 Royalties accrue in accordance with the terms of the relevant...

          6. 34 Revenue is recognised only when it is probable that the...

        9. DISCLOSURE

          1. 35 An entity shall disclose:

          2. 36 An entity discloses any contingent liabilities and contingent assets in...

        10. EFFECTIVE DATE

          1. 37 This standard becomes operative for financial statements covering periods beginning...

      12. INTERNATIONAL ACCOUNTING STANDARD 19

        Employee benefits

        1. OBJECTIVE

        2. SCOPE

          1. 1 This standard shall be applied by an employer in accounting...

          2. 2 This standard does not deal with reporting by employee benefit...

          3. 3 The employee benefits to which this standard applies include those...

          4. 4 Employee benefits include:

          5. 5 Employee benefits include benefits provided to either employees or their...

          6. 6 An employee may provide services to an entity on a...

        3. DEFINITIONS

          1. 7 The following terms are used in this standard with the...

        4. SHORT-TERM EMPLOYEE BENEFITS

          1. 8 Short-term employee benefits include items such as:

          2. 9 Accounting for short-term employee benefits is generally straightforward because no...

          3. Recognition and measurement

            1. All short-term employee benefits

              1. 10 When an employee has rendered service to an entity during...

            2. Short-term compensated absences

              1. 11 An entity shall recognise the expected cost of short-term employee...

              2. 12 An entity may compensate employees for absence for various reasons,...

              3. 13 Accumulating compensated absences are those that are carried forward and...

              4. 14 An entity shall measure the expected cost of accumulating compensated...

              5. 15 The method specified in the previous paragraph measures the obligation...

                1. Example illustrating paragraphs 14 and 15

              6. 16 Non-accumulating compensated absences do not carry forward: they lapse if...

            3. Profit-sharing and bonus plans

              1. 17 An entity shall recognise the expected cost of profit-sharing and...

              2. 18 Under some profit-sharing plans, employees receive a share of the...

                1. Example illustrating paragraph 18

              3. 19 An entity may have no legal obligation to pay a...

              4. 20 An entity can make a reliable estimate of its legal...

              5. 21 An obligation under profit-sharing and bonus plans results from employee...

              6. 22 If profit-sharing and bonus payments are not due wholly within...

          4. Disclosure

            1. 23 Although this standard does not require specific disclosures about short-term...

        5. POST-EMPLOYMENT BENEFITS: DISTINCTION BETWEEN DEFINED CONTRIBUTION PLANS AND DEFINED BENEFIT PLANS...

          1. 24 Post-employment benefits include, for example:

          2. 25 Post-employment benefit plans are classified as either defined contribution plans...

          3. 26 Examples of cases where an entity's obligation is not limited...

          4. 27 Under defined benefit plans:

          5. 28 Paragraphs 29-42 below explain the distinction between defined contribution plans and...

          6. Multi-employer plans

            1. 29 An entity shall classify a multi-employer plan as a defined...

            2. 30 When sufficient information is not available to use defined benefit...

            3. 31 One example of a defined benefit multi-employer plan is one...

            4. 32 Where sufficient information is available about a multi-employer plan which...

            5. 32A There may be a contractual agreement between the multi-employer plan...

              1. Example illustrating paragraph 32A

            6. 32B IAS 37 Provisions, contingent liabilities and contingent assets requires an entity...

            7. 33 Multi-employer plans are distinct from group administration plans. A group...

          7. Defined benefit plans that share risks between various entities under...

            1. 34 Defined benefit plans that share risks between various entities under...

            2. 34A An entity participating in such a plan shall obtain information...

            3. 34B Participation in such a plan is a related party transaction...

            4. 35 [Deleted]

          8. State plans

            1. 36 An entity shall account for a state plan in the...

            2. 37 State plans are established by legislation to cover all entities...

            3. 38 State plans are characterised as defined benefit or defined contribution...

          9. Insured benefits

            1. 39 An entity may pay insurance premiums to fund a post-employment...

            2. 40 The benefits insured by an insurance contract need not have...

            3. 41 Where an entity funds a post-employment benefit obligation by contributing...

            4. 42 Where an insurance policy is in the name of a...

        6. POST-EMPLOYMENT BENEFITS: DEFINED CONTRIBUTION PLANS

          1. 43 Accounting for defined contribution plans is straightforward because the reporting...

          2. Recognition and measurement

            1. 44 When an employee has rendered service to an entity during...

            2. 45 Where contributions to a defined contribution plan do not fall...

          3. Disclosure

            1. 46 An entity shall disclose the amount recognised as an expense...

            2. 47 Where required by IAS 24 an entity discloses information about contributions...

        7. POST-EMPLOYMENT BENEFITS: DEFINED BENEFIT PLANS

          1. 48 Accounting for defined benefit plans is complex because actuarial assumptions...

          2. Recognition and measurement

            1. 49 Defined benefit plans may be unfunded, or they may be...

            2. 50 Accounting by an entity for defined benefit plans involves the...

            3. 51 In some cases, estimates, averages and computational short cuts may...

          3. Accounting for the constructive obligation

            1. 52 An entity shall account not only for its legal obligation...

            2. 53 The formal terms of a defined benefit plan may permit...

            3. Balance sheet

              1. 54 The amount recognised as a defined benefit liability shall be...

              2. 55 The present value of the defined benefit obligation is the...

              3. 56 An entity shall determine the present value of defined benefit...

              4. 57 This standard encourages, but does not require, an entity to...

              5. 58 The amount determined under paragraph 54 may be negative (an asset)....

              6. 58A The application of paragraph 58 shall not result in a gain...

              7. 58B Paragraph 58A applies to an entity only if it has, at...

              8. 59 An asset may arise where a defined benefit plan has...

              9. 60 The limit in paragraph 58(b) does not override the delayed recognition...

                1. Example illustrating paragraph 60

            4. Profit or loss

              1. 61 An entity shall recognise the net total of the following...

              2. 62 Other standards require the inclusion of certain employee benefit costs...

          4. Recognition and measurement: present value of defined benefit obligations and...

            1. 63 The ultimate cost of a defined benefit plan may be...

            2. Actuarial valuation method

              1. 64 An entity shall use the Projected Unit Credit Method to...

              2. 65 The Projected Unit Credit Method (sometimes known as the accrued...

                1. Example illustrating paragraph 65

              3. 66 An entity discounts the whole of a post-employment benefit obligation,...

            3. Attributing benefit to periods of service

              1. 67 In determining the present value of its defined benefit obligations...

              2. 68 The Projected Unit Credit Method requires an entity to attribute...

                1. Examples illustrating paragraph 68

                  1. 1. A defined benefit plan provides a lump-sum benefit of 100...

                  2. 2. A plan provides a monthly pension of 0,2 % of final...

              3. 69 Employee service gives rise to an obligation under a defined...

                1. Examples illustrating paragraph 69

                  1. 1. A plan pays a benefit of 100 for each year...

                  2. 2. A plan pays a benefit of 100 for each year...

              4. 70 The obligation increases until the date when further service by...

                1. Examples illustrating paragraph 70

                  1. 1. A plan pays a lump-sum benefit of 1 000 that...

                  2. 2. A plan pays a lump-sum retirement benefit of 2 000...

                  3. 3. A post-employment medical plan reimburses 40 % of an employee's post-employment...

                  4. 4. A post-employment medical plan reimburses 10 % of an employee's post-employment...

              5. 71 Where the amount of a benefit is a constant proportion...

                1. Example illustrating paragraph 71

            4. Actuarial assumptions

              1. 72 Actuarial assumptions shall be unbiased and mutually compatible.

              2. 73 Actuarial assumptions are an entity's best estimates of the variables...

              3. 74 Actuarial assumptions are unbiased if they are neither imprudent nor...

              4. 75 Actuarial assumptions are mutually compatible if they reflect the economic...

              5. 76 An entity determines the discount rate and other financial assumptions...

              6. 77 Financial assumptions shall be based on market expectations, at the...

            5. Actuarial assumptions: discount rate

              1. 78 The rate used to discount post-employment benefit obligations (both funded...

              2. 79 One actuarial assumption which has a material effect is the...

              3. 80 The discount rate reflects the estimated timing of benefit payments....

              4. 81 In some cases, there may be no deep market in...

              5. 82 Interest cost is computed by multiplying the discount rate as...

            6. Actuarial assumptions: salaries, benefits and medical costs

              1. 83 Post-employment benefit obligations shall be measured on a basis that...

              2. 84 Estimates of future salary increases take account of inflation, seniority,...

              3. 85 If the formal terms of a plan (or a constructive...

              4. 86 Actuarial assumptions do not reflect future benefit changes that are...

              5. 87 Some post-employment benefits are linked to variables such as the...

              6. 88 Assumptions about medical costs shall take account of estimated future...

              7. 89 Measurement of post-employment medical benefits requires assumptions about the level...

              8. 90 The level and frequency of claims is particularly sensitive to...

              9. 91 Some post-employment health care plans require employees to contribute to...

            7. Actuarial gains and losses

              1. 92 In measuring its defined benefit liability in accordance with paragraph 54,...

              2. 93 The portion of actuarial gains and losses to be recognised...

              3. 93A If, as permitted by paragraph 93, an entity adopts a policy...

              4. 93B Actuarial gains and losses recognised outside profit or loss as...

              5. 93C An entity that recognises actuarial gains and losses in accordance...

              6. 93D Actuarial gains and losses and adjustments arising from the limit...

              7. 94 Actuarial gains and losses may result from increases or decreases...

              8. 95 In the long term, actuarial gains and losses may offset...

            8. Past service cost

              1. 96 In measuring its defined benefit liability under paragraph 54, an entity...

              2. 97 Past service cost arises when an entity introduces a defined...

                1. Example illustrating paragraph 97

              3. 98 Past service cost excludes:

              4. 99 An entity establishes the amortisation schedule for past service cost...

              5. 100 Where an entity reduces benefits payable under an existing defined...

              6. 101 Where an entity reduces certain benefits payable under an existing...

          5. Recognition and measurement: plan assets

            1. Fair value of plan assets

              1. 102 The fair value of any plan assets is deducted in...

              2. 103 Plan assets exclude unpaid contributions due from the reporting entity...

              3. 104 Where plan assets include qualifying insurance policies that exactly match...

            2. Reimbursements

              1. 104A When, and only when, it is virtually certain that another...

              2. 104B Sometimes, an entity is able to look to another party,...

              3. 104C When an insurance policy is not a qualifying insurance policy,...

                1. Example illustrating paragraphs 104A-104C

              4. 104D If the right to reimbursement arises under an insurance policy...

            3. Return on plan assets

              1. 105 The expected return on plan assets is one component of...

              2. 106 The expected return on plan assets is based on market...

                1. Example illustrating paragraph 106

              3. 107 In determining the expected and actual return on plan assets,...

          6. Business combinations

            1. 108 In a business combination, an entity recognises assets and liabilities...

          7. Curtailments and settlements

            1. 109 An entity shall recognise gains or losses on the curtailment...

            2. 110 Before determining the effect of a curtailment or settlement, an...

            3. 111 A curtailment occurs when an entity either:

            4. 112 A settlement occurs when an entity enters into a transaction...

            5. 113 In some cases, an entity acquires an insurance policy to...

            6. 114 A settlement occurs together with a curtailment if a plan...

            7. 115 Where a curtailment relates to only some of the employees...

              1. Example illustrating paragraph 115

          8. Presentation

            1. Offset

              1. 116 An entity shall offset an asset relating to one plan...

              2. 117 The offsetting criteria are similar to those established for financial...

            2. Current/non-current distinction

              1. 118 Some entities distinguish current assets and liabilities from non-current assets...

            3. Financial components of post-employment benefit costs

              1. 119 This standard does not specify whether an entity should present...

          9. Disclosure

            1. 120 An entity shall disclose information that enables users of financial...

            2. 120A An entity shall disclose the following information about defined benefit...

            3. 121 Paragraph 120A(b) requires a general description of the type of plan....

            4. 122 When an entity has more than one defined benefit plan,...

            5. 123 Paragraph 30 requires additional disclosures about multi-employer defined benefit plans that...

            6. 124 Where required by IAS 24 an entity discloses information about:

            7. 125 Where required by IAS 37 an entity discloses information about contingent...

        8. OTHER LONG-TERM EMPLOYEE BENEFITS

          1. 126 Other long-term employee benefits include, for example:

          2. 127 The measurement of other long-term employee benefits is not usually...

          3. Recognition and measurement

            1. 128 The amount recognised as a liability for other long-term employee...

            2. 129 For other long-term employee benefits, an entity shall recognise the...

            3. 130 One form of other long-term employee benefit is long-term disability...

          4. Disclosure

            1. 131 Although this standard does not require specific disclosures about other...

        9. TERMINATION BENEFITS

          1. 132 This standard deals with termination benefits separately from other employee...

          2. Recognition

            1. 133 An entity shall recognise termination benefits as a liability and...

            2. 134 An entity is demonstrably committed to a termination when, and...

            3. 135 An entity may be committed, by legislation, by contractual or...

            4. 136 Some employee benefits are payable regardless of the reason for...

            5. 137 Termination benefits do not provide an entity with future economic...

            6. 138 Where an entity recognises termination benefits, the entity may also...

          3. Measurement

            1. 139 Where termination benefits fall due more than 12 months after...

            2. 140 In the case of an offer made to encourage voluntary...

          4. Disclosure

            1. 141 Where there is uncertainty about the number of employees who...

            2. 142 As required by IAS 1, an entity discloses the nature...

            3. 143 Where required by IAS 24 an entity discloses information about termination...

            4. 144-152 [Deleted]

        10. TRANSITIONAL PROVISIONS

          1. 153 This section specifies the transitional treatment for defined benefit plans....

          2. 154 On first adopting this standard, an entity shall determine its...

          3. 155 If the transitional liability is more than the liability that...

          4. 156 On the initial adoption of the standard, the effect of...

            1. Example illustrating paragraphs 154 to 156

        11. EFFECTIVE DATE

          1. 157 This standard becomes operative for financial statements covering periods beginning...

          2. 158 This standard supersedes IAS 19 Retirement benefit costs approved in 1993....

          3. 159 The following become operative for annual financial statements covering periods...

          4. 159A The amendment in paragraph 58A becomes operative for annual financial statements...

          5. 159B An entity shall apply the amendments in paragraphs 32A, 34-34B, 61...

          6. 159C The option in paragraphs 93A-93D may be used for annual periods...

          7. 160 IAS 8 applies when an entity changes its accounting policies to...

      13. INTERNATIONAL ACCOUNTING STANDARD 20

        Accounting for government grants and disclosure of government assistance

        1. SCOPE

          1. 1 This standard shall be applied in accounting for, and in...

          2. 2 This standard does not deal with:

        2. DEFINITIONS

          1. 3 The following terms are used in this standard with the...

          2. 4 Government assistance takes many forms varying both in the nature...

          3. 5 The receipt of government assistance by an entity may be...

          4. 6 Government grants are sometimes called by other names such as...

        3. GOVERNMENT GRANTS

          1. 7 Government grants, including non-monetary grants at fair value, shall not...

          2. 8 A government grant is not recognised until there is reasonable...

          3. 9 The manner in which a grant is received does not...

          4. 10 A forgivable loan from government is treated as a government...

          5. 11 Once a government grant is recognised, any related contingent liability...

          6. 12 Government grants shall be recognised as income over the periods...

          7. 13 Two broad approaches may be found to the accounting treatment...

          8. 14 Those in support of the capital approach argue as follows:...

          9. 15 Arguments in support of the income approach are as follows:...

          10. 16 It is fundamental to the income approach that government grants...

          11. 17 In most cases the periods over which an entity recognises...

          12. 18 Grants related to non-depreciable assets may also require the fulfilment...

          13. 19 Grants are sometimes received as part of a package of...

          14. 20 A government grant that becomes receivable as compensation for expenses...

          15. 21 In some circumstances, a government grant may be awarded for...

          16. 22 A government grant may become receivable by an entity as...

          17. Non-monetary government grants

            1. 23 A government grant may take the form of a transfer...

          18. Presentation of grants related to assets

            1. 24 Government grants related to assets, including non-monetary grants at fair...

            2. 25 Two methods of presentation in financial statements of grants (or...

            3. 26 One method sets up the grant as deferred income which...

            4. 27 The other method deducts the grant in arriving at the...

            5. 28 The purchase of assets and the receipt of related grants...

          19. Presentation of grants related to income

            1. 29 Grants related to income are sometimes presented as a credit...

            2. 30 Supporters of the first method claim that it is inappropriate...

            3. 31 Both methods are regarded as acceptable for the presentation of...

          20. Repayment of government grants

            1. 32 A government grant that becomes repayable shall be accounted for...

            2. 33 Circumstances giving rise to repayment of a grant related to...

        4. GOVERNMENT ASSISTANCE

          1. 34 Excluded from the definition of government grants in paragraph 3 are...

          2. 35 Examples of assistance that cannot reasonably have a value placed...

          3. 36 The significance of the benefit in the above examples may...

          4. 37 Loans at nil or low interest rates are a form...

          5. 38 In this standard, government assistance does not include the provision...

        5. DISCLOSURE

          1. 39 The following matters shall be disclosed:

        6. TRANSITIONAL PROVISIONS

          1. 40 An entity adopting the standard for the first time shall:...

        7. EFFECTIVE DATE

          1. 41 This standard becomes operative for financial statements covering periods beginning...

      14. INTERNATIONAL ACCOUNTING STANDARD 21

        The effects of changes in foreign exchange rates

        1. OBJECTIVE

          1. 1 An entity may carry on foreign activities in two ways....

          2. 2 The principal issues are which exchange rate(s) to use and...

        2. SCOPE

          1. 3 This standard shall be applied:

          2. 4 IAS 39 applies to many foreign currency derivatives and, accordingly, these...

          3. 5 This standard does not apply to hedge accounting for foreign...

          4. 6 This standard applies to the presentation of an entity's financial...

          5. 7 This standard does not apply to the presentation in a...

        3. DEFINITIONS

          1. 8 The following terms are used in this standard with the...

          2. Elaboration on the definitions

            1. Functional currency

              1. 9 The primary economic environment in which an entity operates is...

              2. 10 The following factors may also provide evidence of an entity's...

              3. 11 The following additional factors are considered in determining the functional...

              4. 12 When the above indicators are mixed and the functional currency...

              5. 13 An entity's functional currency reflects the underlying transactions, events and...

              6. 14 If the functional currency is the currency of a hyperinflationary...

            2. Net investment in a foreign operation

              1. 15 An entity may have a monetary item that is receivable...

              2. 15A The entity that has a monetary item receivable from or...

            3. Monetary items

              1. 16 The essential feature of a monetary item is a right...

        4. SUMMARY OF THE APPROACH REQUIRED BY THIS STANDARD

          1. 17 In preparing financial statements, each entity — whether a stand-alone...

          2. 18 Many reporting entities comprise a number of individual entities (e.g....

          3. 19 This standard also permits a stand-alone entity preparing financial statements...

        5. REPORTING FOREIGN CURRENCY TRANSACTIONS IN THE FUNCTIONAL CURRENCY

          1. Initial recognition

            1. 20 A foreign currency transaction is a transaction that is denominated...

            2. 21 A foreign currency transaction shall be recorded, on initial recognition...

            3. 22 The date of a transaction is the date on which...

          2. Reporting at subsequent balance sheet dates

            1. 23 At each balance sheet date:

            2. 24 The carrying amount of an item is determined in conjunction...

            3. 25 The carrying amount of some items is determined by comparing...

            4. 26 When several exchange rates are available, the rate used is...

          3. Recognition of exchange differences

            1. 27 As noted in paragraph 3, IAS 39 applies to hedge accounting for...

            2. 28 Exchange differences arising on the settlement of monetary items or...

            3. 29 When monetary items arise from a foreign currency transaction and...

            4. 30 When a gain or loss on a non-monetary item is...

            5. 31 Other standards require some gains and losses to be recognised...

            6. 32 Exchange differences arising on a monetary item that forms part...

            7. 33 When a monetary item forms part of a reporting entity's...

            8. 34 When an entity keeps its books and records in a...

          4. Change in functional currency

            1. 35 When there is a change in an entity's functional currency,...

            2. 36 As noted in paragraph 13, the functional currency of an entity...

            3. 37 The effect of a change in functional currency is accounted...

        6. USE OF A PRESENTATION CURRENCY OTHER THAN THE FUNCTIONAL CURRENCY...

          1. Translation to the presentation currency

            1. 38 An entity may present its financial statements in any currency...

            2. 39 The results and financial position of an entity whose functional...

            3. 40 For practical reasons, a rate that approximates the exchange rates...

            4. 41 The exchange differences referred to in paragraph 39(c) result from:

            5. 42 The results and financial position of an entity whose functional...

            6. 43 When an entity's functional currency is the currency of a...

          2. Translation of a foreign operation

            1. 44 Paragraphs 45-47, in addition to paragraphs 38-43, apply when the results and...

            2. 45 The incorporation of the results and financial position of a...

            3. 46 When the financial statements of a foreign operation are as...

            4. 47 Any goodwill arising on the acquisition of a foreign operation...

          3. Disposal of a foreign operation

            1. 48 On the disposal of a foreign operation, the cumulative amount...

            2. 49 An entity may dispose of its interest in a foreign...

        7. TAX EFFECTS OF ALL EXCHANGE DIFFERENCES

          1. 50 Gains and losses on foreign currency transactions and exchange differences...

        8. DISCLOSURE

          1. 51 In paragraphs 53 and 55-57 references to ‘functional currency’ apply, in...

          2. 52 An entity shall disclose:

          3. 53 When the presentation currency is different from the functional currency,...

          4. 54 When there is a change in the functional currency of...

          5. 55 When an entity presents its financial statements in a currency...

          6. 56 An entity sometimes presents its financial statements or other financial...

          7. 57 When an entity displays its financial statements or other financial...

        9. EFFECTIVE DATE AND TRANSITION

          1. 58 An entity shall apply this standard for annual periods beginning...

          2. 58A Net investment in a foreign operation (amendment to IAS 21),...

          3. 59 An entity shall apply paragraph 47 prospectively to all acquisitions occurring...

          4. 60 All other changes resulting from the application of this standard...

        10. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 61 This standard supersedes IAS 21 The effects of changes in foreign...

          2. 62 This standard supersedes the following interpretations:

      15. INTERNATIONAL ACCOUNTING STANDARD 23

        Borrowing costs

        1. OBJECTIVE

        2. SCOPE

          1. 1 This standard shall be applied in accounting for borrowing costs....

          2. 2 This standard supersedes IAS 23 Capitalisation of borrowing costs approved in...

          3. 3 This standard does not deal with the actual or imputed...

        3. DEFINITIONS

          1. 4 The following terms are used in this standard with the...

          2. 5 Borrowing costs may include:

          3. 6 Examples of qualifying assets are inventories that require a substantial...

        4. BORROWING COSTS — BENCHMARK TREATMENT

          1. Recognition

            1. 7 Borrowing costs shall be recognised as an expense in the...

            2. 8 Under the benchmark treatment borrowing costs are recognised as an...

          2. Disclosure

            1. 9 The financial statements shall disclose the accounting policy adopted for...

        5. BORROWING COSTS — ALLOWED ALTERNATIVE TREATMENT

          1. Recognition

            1. 10 Borrowing costs shall be recognised as an expense in the...

            2. 11 Borrowing costs that are directly attributable to the acquisition, construction...

            3. 12 Under the allowed alternative treatment, borrowing costs that are directly...

            4. Borrowing costs eligible for capitalisation

              1. 13 The borrowing costs that are directly attributable to the acquisition,...

              2. 14 It may be difficult to identify a direct relationship between...

              3. 15 To the extent that funds are borrowed specifically for the...

              4. 16 The financing arrangements for a qualifying asset may result in...

              5. 17 To the extent that funds are borrowed generally and used...

              6. 18 In some circumstances, it is appropriate to include all borrowings...

            5. Excess of the carrying amount of the qualifying asset over...

              1. 19 When the carrying amount or the expected ultimate cost of...

            6. Commencement of capitalisation

              1. 20 The capitalisation of borrowing costs as part of the cost...

              2. 21 Expenditures on a qualifying asset include only those expenditures that...

              3. 22 The activities necessary to prepare the asset for its intended...

            7. Suspension of capitalisation

              1. 23 Capitalisation of borrowing costs shall be suspended during extended periods...

              2. 24 Borrowing costs may be incurred during an extended period in...

            8. Cessation of capitalisation

              1. 25 Capitalisation of borrowing costs shall cease when substantially all the...

              2. 26 An asset is normally ready for its intended use or...

              3. 27 When the construction of a qualifying asset is completed in...

              4. 28 A business park comprising several buildings, each of which can...

        6. DISCLOSURE

          1. 29 The financial statements shall disclose:

        7. TRANSITIONAL PROVISIONS

          1. 30 When the adoption of this standard constitutes a change in...

        8. EFFECTIVE DATE

          1. 31 This standard becomes operative for financial statements covering periods beginning...

      16. INTERNATIONAL ACCOUNTING STANDARD 24

        Related party disclosures

        1. OBJECTIVE

          1. 1 The objective of this standard is to ensure that an...

        2. SCOPE

          1. 2 This standard shall be applied in:

          2. 3 This standard requires disclosure of related party transactions and outstanding...

          3. 4 Related party transactions and outstanding balances with other entities in...

        3. PURPOSE OF RELATED PARTY DISCLOSURES

          1. 5 Related party relationships are a normal feature of commerce and...

          2. 6 A related party relationship could have an effect on the...

          3. 7 The profit or loss and financial position of an entity...

          4. 8 For these reasons, knowledge of related party transactions, outstanding balances...

        4. DEFINITIONS

          1. 9 The following terms are used in this standard with the...

          2. 10 In considering each possible related party relationship, attention is directed...

          3. 11 In the context of this standard, the following are not...

        5. DISCLOSURE

          1. 12 Relationships between parents and subsidiaries shall be disclosed irrespective of...

          2. 13 To enable users of financial statements to form a view...

          3. 14 The identification of related party relationships between parents and subsidiaries...

          4. 15 When neither the entity's parent nor the ultimate controlling party...

          5. 16 An entity shall disclose key management personnel compensation in total...

          6. 17 If there have been transactions between related parties, an entity...

          7. 18 The disclosures required by paragraph 17 shall be made separately for...

          8. 19 The classification of amounts payable to, and receivable from, related...

          9. 20 The following are examples of transactions that are disclosed if...

          10. 21 Disclosures that related party transactions were made on terms equivalent...

          11. 22 Items of a similar nature may be disclosed in aggregate...

        6. EFFECTIVE DATE

          1. 23 An entity shall apply this standard for annual periods beginning...

          2. 23A An entity shall apply the amendments in paragraph 20 for annual...

        7. WITHDRAWAL OF IAS 24 (REFORMATTED 1994)

          1. 24 This standard supersedes IAS 24 Related party disclosures (reformatted in 1994)....

      17. INTERNATIONAL ACCOUNTING STANDARD 26

        Accounting and reporting by retirement benefit plans

        1. SCOPE

          1. 1 This standard shall be applied in the financial statements of...

          2. 2 Retirement benefit plans are sometimes referred to by various other...

          3. 3 This standard deals with accounting and reporting by the plan...

          4. 4 IAS 19 Employee benefits is concerned with the determination of the...

          5. 5 Retirement benefit plans may be defined contribution plans or defined...

          6. 6 Retirement benefit plans with assets invested with insurance companies are...

          7. 7 This standard does not deal with other forms of employment...

        2. DEFINITIONS

          1. 8 The following terms are used in this standard with the...

          2. 9 Some retirement benefit plans have sponsors other than employers; this...

          3. 10 Most retirement benefit plans are based on formal agreements. Some...

          4. 11 Many retirement benefit plans provide for the establishment of separate...

          5. 12 Retirement benefit plans are normally described as either defined contribution...

        3. DEFINED CONTRIBUTION PLANS

          1. 13 The financial statements of a defined contribution plan shall contain...

          2. 14 Under a defined contribution plan, the amount of a participant's...

          3. 15 The participants are interested in the activities of the plan...

          4. 16 The objective of reporting by a defined contribution plan is...

        4. DEFINED BENEFIT PLANS

          1. 17 The financial statements of a defined benefit plan shall contain...

          2. 18 For the purposes of paragraph 17, the actuarial present value of...

          3. 19 The financial statements shall explain the relationship between the actuarial...

          4. 20 Under a defined benefit plan, the payment of promised retirement...

          5. 21 A defined benefit plan needs the periodic advice of an...

          6. 22 The objective of reporting by a defined benefit plan is...

          7. Actuarial present value of promised retirement benefits

            1. 23 The present value of the expected payments by a retirement...

            2. 24 The reasons given for adopting a current salary approach include:...

            3. 25 Reasons given for adopting a projected salary approach include:

            4. 26 The actuarial present value of promised retirement benefits based on...

          8. Frequency of actuarial valuations

            1. 27 In many countries, actuarial valuations are not obtained more frequently...

          9. Financial statement content

            1. 28 For defined benefit plans, information is presented in one of...

            2. 29 Those in favour of the formats described in paragraph 28(a) and...

            3. 30 Those who favour the format described in paragraph 28(c) believe that...

            4. 31 This standard accepts the views in favour of permitting disclosure...

        5. ALL PLANS

          1. Valuation of plan assets

            1. 32 Retirement benefit plan investments shall be carried at fair value....

            2. 33 In the case of marketable securities fair value is usually...

          2. Disclosure

            1. 34 The financial statements of a retirement benefit plan, whether defined...

            2. 35 Financial statements provided by retirement benefit plans include the following,...

            3. 36 The report of a retirement benefit plan contains a description...

        6. EFFECTIVE DATE

          1. 37 This standard becomes operative for financial statements of retirement benefit...

      18. INTERNATIONAL ACCOUNTING STANDARD 27

        Consolidated and separate financial statements

        1. SCOPE

          1. 1 This standard shall be applied in the preparation and presentation...

          2. 2 This standard does not deal with methods of accounting for...

          3. 3 This standard shall also be applied in accounting for investments...

        2. DEFINITIONS

          1. 4 The following terms are used in this standard with the...

          2. 5 A parent or its subsidiary may be an investor in...

          3. 6 For an entity described in paragraph 5, separate financial statements are...

          4. 7 The financial statements of an entity that does not have...

          5. 8 A parent that is exempted in accordance with paragraph 10 from...

        3. PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

          1. 9 A parent, other than a parent described in paragraph 10, shall...

          2. 10 A parent need not present consolidated financial statements if and...

          3. 11 A parent that elects in accordance with paragraph 10 not to...

        4. SCOPE OF CONSOLIDATED FINANCIAL STATEMENTS

          1. 12 Consolidated financial statements shall include all subsidiaries of the parent....

          2. 13 Control is presumed to exist when the parent owns, directly...

          3. 14 An entity may own share warrants, share call options, debt...

          4. 15 In assessing whether potential voting rights contribute to control, the...

          5. 16 [Deleted]

          6. 17 [Deleted]

          7. 18 [Deleted]

          8. 19 A subsidiary is not excluded from consolidation simply because the...

          9. 20 A subsidiary is not excluded from consolidation because its business...

          10. 21 A parent loses control when it loses the power to...

        5. CONSOLIDATION PROCEDURES

          1. 22 In preparing consolidated financial statements, an entity combines the financial...

          2. 23 When potential voting rights exist, the proportions of profit or...

          3. 24 Intragroup balances, transactions, income and expenses shall be eliminated in...

          4. 25 Intragroup balances and transactions, including income, expenses and dividends, are...

          5. 26 The financial statements of the parent and its subsidiaries used...

          6. 27 When, in accordance with paragraph 26, the financial statements of a...

          7. 28 Consolidated financial statements shall be prepared using uniform accounting policies...

          8. 29 If a member of the group uses accounting policies other...

          9. 30 The income and expenses of a subsidiary are included in...

          10. 31 An investment in an entity shall be accounted for in...

          11. 32 The carrying amount of the investment at the date that...

          12. 33 Minority interests shall be presented in the consolidated balance sheet...

          13. 34 The profit or loss is attributed to the parent shareholders...

          14. 35 Losses applicable to the minority in a consolidated subsidiary may...

          15. 36 If a subsidiary has outstanding cumulative preference shares that are...

        6. ACCOUNTING FOR INVESTMENTS IN SUBSIDIARIES, JOINTLY CONTROLLED ENTITIES AND ASSOCIATES...

          1. 37 When separate financial statements are prepared, investments in subsidiaries, jointly...

          2. 38 This standard does not mandate which entities produce separate financial...

          3. 39 Investments in jointly controlled entities and associates that are accounted...

        7. DISCLOSURE

          1. 40 The following disclosures shall be made in consolidated financial statements:...

          2. 41 When separate financial statements are prepared for a parent that,...

          3. 42 When a parent (other than a parent covered by paragraph 41),...

        8. EFFECTIVE DATE

          1. 43 An entity shall apply this standard for annual periods beginning...

        9. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 44 This standard supersedes IAS 27 Consolidated financial statements and accounting for...

          2. 45 This standard supersedes SIC-33 Consolidation and equity method — potential...

      19. INTERNATIONAL ACCOUNTING STANDARD 28

        Investments in associates

        1. SCOPE

          1. 1 This standard shall be applied in accounting for investments in...

        2. DEFINITIONS

          1. 2 The following terms are used in this standard with the...

          2. 3 Financial statements in which the equity method is applied are...

          3. 4 Separate financial statements are those presented in addition to consolidated...

          4. 5 Entities that are exempted in accordance with paragraph 10 of IAS 27...

          5. Significant influence

            1. 6 If an investor holds, directly or indirectly (e.g. through subsidiaries),...

            2. 7 The existence of significant influence by an investor is usually...

            3. 8 An entity may own share warrants, share call options, debt...

            4. 9 In assessing whether potential voting rights contribute to significant influence,...

            5. 10 An entity loses significant influence over an investee when it...

          6. Equity method

            1. 11 Under the equity method, the investment in an associate is...

            2. 12 When potential voting rights exist, the investor's share of profit...

        3. APPLICATION OF THE EQUITY METHOD

          1. 13 An investment in an associate shall be accounted for using...

          2. 14 Investments described in paragraph 13(a) shall be accounted for in accordance...

          3. 15 When an investment in an associate previously classified as held...

          4. 16 [Deleted]

          5. 17 The recognition of income on the basis of distributions received...

          6. 18 An investor shall discontinue the use of the equity method...

          7. 19 The carrying amount of the investment at the date that...

          8. 20 Many of the procedures appropriate for the application of the...

          9. 21 A group's share in an associate is the aggregate of...

          10. 22 Profits and losses resulting from ‘upstream’ and ‘downstream’ transactions between...

          11. 23 An investment in an associate is accounted for using the...

          12. 24 The most recent available financial statements of the associate are...

          13. 25 When, in accordance with paragraph 24, the financial statements of an...

          14. 26 The investor's financial statements shall be prepared using uniform accounting...

          15. 27 If an associate uses accounting policies other than those of...

          16. 28 If an associate has outstanding cumulative preference shares that are...

          17. 29 If an investor's share of losses of an associate equals...

          18. 30 After the investor's interest is reduced to zero, additional losses...

          19. Impairment losses

            1. 31 After application of the equity method, including recognising the associate's...

            2. 32 The investor also applies the requirements of IAS 39 to determine...

            3. 33 Because goodwill included in the carrying amount of an investment...

            4. 34 The recoverable amount of an investment in an associate is...

        4. SEPARATE FINANCIAL STATEMENTS

          1. 35 An investment in an associate shall be accounted for in...

          2. 36 This standard does not mandate which entities produce separate financial...

        5. DISCLOSURE

          1. 37 The following disclosures shall be made:

          2. 38 Investments in associates accounted for using the equity method shall...

          3. 39 The investor's share of changes recognised directly in the associate's...

          4. 40 In accordance with IAS 37 Provisions, contingent liabilities and contingent assets...

        6. EFFECTIVE DATE

          1. 41 An entity shall apply this standard for annual periods beginning...

        7. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 42 This standard supersedes IAS 28 Accounting for investments in associates (revised...

          2. 43 This standard supersedes the following interpretations:

      20. INTERNATIONAL ACCOUNTING STANDARD 29

        Financial reporting in hyperinflationary economies

        1. SCOPE

          1. 1 This standard shall be applied to the financial statements, including...

          2. 2 In a hyperinflationary economy, reporting of operating results and financial...

          3. 3 This standard does not establish an absolute rate at which...

          4. 4 It is preferable that all entities that report in the...

        2. THE RESTATEMENT OF FINANCIAL STATEMENTS

          1. 5 Prices change over time as the result of various specific...

          2. 6 In most countries, financial statements are prepared on the historical...

          3. 7 In a hyperinflationary economy, financial statements, whether they are based...

          4. 8 The financial statements of an entity whose functional currency is...

          5. 9 The gain or loss on the net monetary position shall...

          6. 10 The restatement of financial statements in accordance with this standard...

          7. Historical cost financial statements

            1. Balance sheet

              1. 11 Balance sheet amounts not already expressed in terms of the...

              2. 12 Monetary items are not restated because they are already expressed...

              3. 13 Assets and liabilities linked by agreement to changes in prices,...

              4. 14 All other assets and liabilities are non-monetary. Some non-monetary items...

              5. 15 Most non-monetary items are carried at cost or cost less...

              6. 16 Detailed records of the acquisition dates of items of property,...

              7. 17 A general price index may not be available for the...

              8. 18 Some non-monetary items are carried at amounts current at dates...

              9. 19 The restated amount of a non-monetary item is reduced, in...

              10. 20 An investee that is accounted for under the equity method...

              11. 21 The impact of inflation is usually recognised in borrowing costs....

              12. 22 An entity may acquire assets under an arrangement that permits...

              13. 23 [Deleted]

              14. 24 At the beginning of the first period of application of...

              15. 25 At the end of the first period and in subsequent...

            2. Income statement

              1. 26 This standard requires that all items in the income statement...

            3. Gain or loss on net monetary position

              1. 27 In a period of inflation, an entity holding an excess...

              2. 28 The gain or loss on the net monetary position is...

          8. Current cost financial statements

            1. Balance sheet

              1. 29 Items stated at current cost are not restated because they...

            2. Income statement

              1. 30 The current cost income statement, before restatement, generally reports costs...

            3. Gain or loss on net monetary position

              1. 31 The gain or loss on the net monetary position is...

          9. Taxes

            1. 32 The restatement of financial statements in accordance with this standard...

          10. Cash-flow statement

            1. 33 This standard requires that all items in the cash-flow statement...

          11. Corresponding figures

            1. 34 Corresponding figures for the previous reporting period, whether they were...

          12. Consolidated financial statements

            1. 35 A parent that reports in the currency of a hyperinflationary...

            2. 36 If financial statements with different reporting dates are consolidated, all...

          13. Selection and use of the general price index

            1. 37 The restatement of financial statements in accordance with this standard...

        3. ECONOMIES CEASING TO BE HYPERINFLATIONARY

          1. 38 When an economy ceases to be hyperinflationary and an entity...

        4. DISCLOSURES

          1. 39 The following disclosures shall be made:

          2. 40 The disclosures required by this standard are needed to make...

        5. EFFECTIVE DATE

          1. 41 This standard becomes operative for financial statements covering periods beginning...

      21. INTERNATIONAL ACCOUNTING STANDARD 31

        Interests in joint ventures

        1. SCOPE

          1. 1 This standard shall be applied in accounting for interests in...

          2. 2 A venturer with an interest in a jointly controlled entity...

        2. DEFINITIONS

          1. 3 The following terms are used in this standard with the...

          2. 4 Financial statements in which proportionate consolidation or the equity method...

          3. 5 Separate financial statements are those presented in addition to consolidated...

          4. 6 Entities that are exempted in accordance with paragraph 10 of IAS 27...

          5. Forms of joint venture

            1. 7 Joint ventures take many different forms and structures. This standard...

          6. Joint control

            1. 8 Joint control may be precluded when an investee is in...

          7. Contractual arrangement

            1. 9 The existence of a contractual arrangement distinguishes interests that involve...

            2. 10 The contractual arrangement may be evidenced in a number of...

            3. 11 The contractual arrangement establishes joint control over the joint venture....

            4. 12 The contractual arrangement may identify one venturer as the operator...

        3. JOINTLY CONTROLLED OPERATIONS

          1. 13 The operation of some joint ventures involves the use of...

          2. 14 An example of a jointly controlled operation is when two...

          3. 15 In respect of its interests in jointly controlled operations, a...

          4. 16 Because the assets, liabilities, income and expenses are recognised in...

          5. 17 Separate accounting records may not be required for the joint...

        4. JOINTLY CONTROLLED ASSETS

          1. 18 Some joint ventures involve the joint control, and often the...

          2. 19 These joint ventures do not involve the establishment of a...

          3. 20 Many activities in the oil, gas and mineral extraction industries...

          4. 21 In respect of its interest in jointly controlled assets, a...

          5. 22 In respect of its interest in jointly controlled assets, each...

          6. 23 The treatment of jointly controlled assets reflects the substance and...

        5. JOINTLY CONTROLLED ENTITIES

          1. 24 A jointly controlled entity is a joint venture that involves...

          2. 25 A jointly controlled entity controls the assets of the joint...

          3. 26 A common example of a jointly controlled entity is when...

          4. 27 Many jointly controlled entities are similar in substance to those...

          5. 28 A jointly controlled entity maintains its own accounting records and...

          6. 29 Each venturer usually contributes cash or other resources to the...

          7. Financial statements of a venturer

            1. Proportionate consolidation

              1. 30 A venturer shall recognise its interest in a jointly controlled...

              2. 31 A venturer recognises its interest in a jointly controlled entity...

              3. 32 When recognising an interest in a jointly controlled entity, it...

              4. 33 The application of proportionate consolidation means that the balance sheet...

              5. 34 Different reporting formats may be used to give effect to...

              6. 35 Whichever format is used to give effect to proportionate consolidation,...

              7. 36 A venturer shall discontinue the use of proportionate consolidation from...

              8. 37 A venturer discontinues the use of proportionate consolidation from the...

            2. Equity method

              1. 38 As an alternative to proportionate consolidation described in paragraph 30, a...

              2. 39 A venturer recognises its interest in a jointly controlled entity...

              3. 40 Some venturers recognise their interests in jointly controlled entities using...

              4. 41 A venturer shall discontinue the use of the equity method...

            3. Exceptions to proportionate consolidation and equity method

              1. 42 Interests in jointly controlled entities that are classified as held...

              2. 43 When an interest in a jointly controlled entity previously classified...

              3. 44 [Deleted]

              4. 45 From the date on which a jointly controlled entity becomes...

          8. Separate financial statements of a venturer

            1. 46 An interest in a jointly controlled entity shall be accounted...

            2. 47 This standard does not mandate which entities produce separate financial...

        6. TRANSACTIONS BETWEEN A VENTURER AND A JOINT VENTURE

          1. 48 When a venturer contributes or sells assets to a joint...

          2. 49 When a venturer purchases assets from a joint venture, the...

          3. 50 To assess whether a transaction between a venturer and a...

        7. REPORTING INTERESTS IN JOINT VENTURES IN THE FINANCIAL STATEMENTS OF...

          1. 51 An investor in a joint venture that does not have...

        8. OPERATORS OF JOINT VENTURES

          1. 52 Operators or managers of a joint venture shall account for...

          2. 53 One or more venturers may act as the operator or...

        9. DISCLOSURE

          1. 54 A venturer shall disclose the aggregate amount of the following...

          2. 55 A venturer shall disclose the aggregate amount of the following...

          3. 56 A venturer shall disclose a listing and description of interests...

          4. 57 A venturer shall disclose the method it uses to recognise...

        10. EFFECTIVE DATE

          1. 58 An entity shall apply this standard for annual periods beginning...

        11. WITHDRAWAL OF IAS 31 (REVISED 2000)

          1. 59 This standard supersedes IAS 31 Financial reporting of interests in joint...

      22. INTERNATIONAL ACCOUNTING STANDARD 32

        Financial instruments: presentation

        1. OBJECTIVE

          1. 1 [Deleted]

          2. 2 The objective of this standard is to establish principles for...

          3. 3 The principles in this standard complement the principles for recognising...

        2. SCOPE

          1. 4 This standard shall be applied by all entities to all...

          2. 5-7 [Deleted]

          3. 8 This standard shall be applied to those contracts to buy...

          4. 9 There are various ways in which a contract to buy...

          5. 10 A written option to buy or sell a non-financial item...

        3. DEFINITIONS (SEE ALSO PARAGRAPHS AG3-AG23)

          1. 11 The following terms are used in this standard with the...

          2. 12 The following terms are defined in paragraph 9 of IAS 39 and...

          3. 13 In this standard, ‘contract’ and ‘contractual’ refer to an agreement...

          4. 14 In this standard, ‘entity’ includes individuals, partnerships, incorporated bodies, trusts...

        4. PRESENTATION

          1. Liabilities and equity (see also paragraphs AG25-AG29)

            1. 15 The issuer of a financial instrument shall classify the instrument,...

            2. 16 When an issuer applies the definitions in paragraph 11 to determine...

            3. No contractual obligation to deliver cash or another financial asset...

              1. 17 A critical feature in differentiating a financial liability from an...

              2. 18 The substance of a financial instrument, rather than its legal...

              3. 19 If an entity does not have an unconditional right to...

              4. 20 A financial instrument that does not explicitly establish a contractual...

            4. Settlement in the entity's own equity instruments (paragraph 16(b))

              1. 21 A contract is not an equity instrument solely because it...

              2. 22 A contract that will be settled by the entity (receiving...

              3. 23 A contract that contains an obligation for an entity to...

              4. 24 A contract that will be settled by the entity delivering...

            5. Contingent settlement provisions

              1. 25 A financial instrument may require the entity to deliver cash...

            6. Settlement options

              1. 26 When a derivative financial instrument gives one party a choice...

              2. 27 An example of a derivative financial instrument with a settlement...

          2. Compound financial instruments (see also paragraphs AG30-AG35 and Illustrative Examples...

            1. 28 The issuer of a non-derivative financial instrument shall evaluate the...

            2. 29 An entity recognises separately the components of a financial instrument...

            3. 30 Classification of the liability and equity components of a convertible...

            4. 31 IAS 39 deals with the measurement of financial assets and financial...

            5. 32 Under the approach described in paragraph 31, the issuer of a...

          3. Treasury shares (see also paragraph AG36)

            1. 33 If an entity reacquires its own equity instruments, those instruments...

            2. 34 The amount of treasury shares held is disclosed separately either...

          4. Interest, dividends, losses and gains (see also paragraph AG37)

            1. 35 Interest, dividends, losses and gains relating to a financial instrument...

            2. 36 The classification of a financial instrument as a financial liability...

            3. 37 An entity typically incurs various costs in issuing or acquiring...

            4. 38 Transaction costs that relate to the issue of a compound...

            5. 39 The amount of transaction costs accounted for as a deduction...

            6. 40 Dividends classified as an expense may be presented in the...

            7. 41 Gains and losses related to changes in the carrying amount...

          5. Offsetting a financial asset and a financial liability (see also...

            1. 42 A financial asset and a financial liability shall be offset...

            2. 43 This standard requires the presentation of financial assets and financial...

            3. 44 Offsetting a recognised financial asset and a recognised financial liability...

            4. 45 A right of set-off is a debtor's legal right, by...

            5. 46 The existence of an enforceable right to set off a...

            6. 47 An entity's intentions with respect to settlement of particular assets...

            7. 48 Simultaneous settlement of two financial instruments may occur through, for...

            8. 49 The conditions set out in paragraph 42 are generally not satisfied...

            9. 50 An entity that undertakes a number of financial instrument transactions...

        5. DISCLOSURE

          1. 51-95 [Deleted]

        6. EFFECTIVE DATE

          1. 96 An entity shall apply this standard for annual periods beginning...

          2. 97 This standard shall be applied retrospectively.

        7. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 98 This standard supersedes IAS 32 Financial instruments: disclosure and presentation revised...

          2. 99 This standard supersedes the following interpretations:

          3. 100 This standard withdraws draft SIC Interpretation D34 Financial instruments —...

        8. Appendix

          APPLICATION GUIDANCE

          2. AG1 This Application Guidance explains the application of particular aspects of...

          3. AG2 The standard does not deal with the recognition or measurement...

          4. DEFINITIONS (PARAGRAPHS 11-14)

            1. Financial assets and financial liabilities

              1. AG3 Currency (cash) is a financial asset because it represents the...

              2. AG4 Common examples of financial assets representing a contractual right to...

              3. AG5 Another type of financial instrument is one for which the...

              4. AG6 ‘Perpetual’ debt instruments (such as ‘perpetual’ bonds, debentures and capital...

              5. AG7 A contractual right or contractual obligation to receive, deliver or...

              6. AG8 The ability to exercise a contractual right or the requirement...

              7. AG9 Under IAS 17 Leases a finance lease is regarded as primarily...

              8. AG10 Physical assets (such as inventories, property, plant and equipment), leased...

              9. AG11 Assets (such as prepaid expenses) for which the future economic...

              10. AG12 Liabilities or assets that are not contractual (such as income...

            2. Equity instruments

              1. AG13 Examples of equity instruments include non-puttable ordinary shares, some types...

              2. AG14 A purchased call option or other similar contract acquired by...

            3. Derivative financial instruments

              1. AG15 Financial instruments include primary instruments (such as receivables, payables and...

              2. AG16 Derivative financial instruments create rights and obligations that have the...

              3. AG17 A put or call option to exchange financial assets or...

              4. AG18 Another example of a derivative financial instrument is a forward...

              5. AG19 Many other types of derivative instruments embody a right or...

            4. Contracts to buy or sell non-financial items (paragraphs 8-10)

              1. AG20 Contracts to buy or sell non-financial items do not meet...

              2. AG21 A contract that involves the receipt or delivery of physical...

              3. AG22 Some contracts are commodity-linked, but do not involve settlement through...

              4. AG23 The definition of a financial instrument also encompasses a contract...

              5. AG24 [Deleted]

          5. PRESENTATION

            1. Liabilities and equity (paragraphs 15-27)

              1. No contractual obligation to deliver cash or another financial asset...

                1. AG25 Preference shares may be issued with various rights. In determining...

                2. AG26 When preference shares are non-redeemable, the appropriate classification is determined...

              2. Settlement in the entity's own equity instruments (paragraphs 21-24)

                1. AG27 The following examples illustrate how to classify different types of...

              3. Contingent settlement provisions (paragraph 25)

                1. AG28 Paragraph 25 requires that if a part of a contingent settlement...

              4. Treatment in consolidated financial statements

                1. AG29 In consolidated financial statements, an entity presents minority interests —...

            2. Compound financial instruments (paragraphs 28-32)

              1. AG30 Paragraph 28 applies only to issuers of non-derivative compound financial instruments....

              2. AG31 A common form of compound financial instrument is a debt...

              3. AG32 On conversion of a convertible instrument at maturity, the entity...

              4. AG33 When an entity extinguishes a convertible instrument before maturity through...

              5. AG34 Once the allocation of the consideration is made, any resulting...

              6. AG35 An entity may amend the terms of a convertible instrument...

            3. Treasury shares (paragraphs 33 and 34)

              1. AG36 An entity's own equity instruments are not recognised as a...

            4. Interest, dividends, losses and gains (paragraphs 35-41)

              1. AG37 The following example illustrates the application of paragraph 35 to a...

            5. Offsetting a financial asset and a financial liability (paragraphs 42-50)

              1. AG38 To offset a financial asset and a financial liability, an...

              2. AG39 The standard does not provide special treatment for so-called ‘synthetic...

          6. DISCLOSURE

            1. Financial assets and financial liabilities at fair value through profit...

              1. AG40 [Deleted]

      23. INTERNATIONAL ACCOUNTING STANDARD 33

        Earnings per share

        1. OBJECTIVE

          1. 1 The objective of this standard is to prescribe principles for...

        2. SCOPE

          1. 2 This standard shall apply to:

          2. 3 An entity that discloses earnings per share shall calculate and...

          3. 4 When an entity presents both consolidated financial statements and separate...

        3. DEFINITIONS

          1. 5 The following terms are used in this standard with the...

          2. 6 Ordinary shares participate in profit for the period only after...

          3. 7 Examples of potential ordinary shares are:

          4. 8 Terms defined in IAS 32 Financial instruments: presentation are used...

        4. MEASUREMENT

          1. Basic earnings per share

            1. 9 An entity shall calculate basic earnings per share amounts for...

            2. 10 Basic earnings per share shall be calculated by dividing profit...

            3. 11 The objective of basic earnings per share information is to...

            4. Earnings

              1. 12 For the purpose of calculating basic earnings per share, the...

              2. 13 All items of income and expense attributable to ordinary equity...

              3. 14 The after-tax amount of preference dividends that is deducted from...

              4. 15 Preference shares that provide for a low initial dividend to...

              5. 16 Preference shares may be repurchased under an entity's tender offer...

              6. 17 Early conversion of convertible preference shares may be induced by...

              7. 18 Any excess of the carrying amount of preference shares over...

            5. Shares

              1. 19 For the purpose of calculating basic earnings per share, the...

              2. 20 Using the weighted average number of ordinary shares outstanding during...

              3. 21 Shares are usually included in the weighted average number of...

              4. 22 Ordinary shares issued as part of the cost of a...

              5. 23 Ordinary shares that will be issued upon the conversion of...

              6. 24 Contingently issuable shares are treated as outstanding and are included...

              7. 25 [Deleted]

              8. 26 The weighted average number of ordinary shares outstanding during the...

              9. 27 Ordinary shares may be issued, or the number of ordinary...

              10. 28 In a capitalisation or bonus issue or a share split,...

              11. 29 A consolidation of ordinary shares generally reduces the number of...

          2. Diluted earnings per share

            1. 30 An entity shall calculate diluted earnings per share amounts for...

            2. 31 For the purpose of calculating diluted earnings per share, an...

            3. 32 The objective of diluted earnings per share is consistent with...

            4. Earnings

              1. 33 For the purpose of calculating diluted earnings per share, an...

              2. 34 After the potential ordinary shares are converted into ordinary shares,...

              3. 35 The conversion of potential ordinary shares may lead to consequential...

            5. Shares

              1. 36 For the purpose of calculating diluted earnings per share, the...

              2. 37 Dilutive potential ordinary shares shall be determined independently for each...

              3. 38 Potential ordinary shares are weighted for the period they are...

              4. 39 The number of ordinary shares that would be issued on...

              5. 40 A subsidiary, joint venture or associate may issue to parties...

            6. Dilutive potential ordinary shares

              1. 41 Potential ordinary shares shall be treated as dilutive when, and...

              2. 42 An entity uses profit or loss from continuing operations attributable...

              3. 43 Potential ordinary shares are antidilutive when their conversion to ordinary...

              4. 44 In determining whether potential ordinary shares are dilutive or antidilutive,...

              5. Options, warrants and their equivalents

                1. 45 For the purpose of calculating diluted earnings per share, an...

                2. 46 Options and warrants are dilutive when they would result in...

                3. 47 Options and warrants have a dilutive effect only when the...

                4. 47A For share options and other share-based payment arrangements to which...

                5. 48 Employee share options with fixed or determinable terms and non-vested...

              6. Convertible instruments

                1. 49 The dilutive effect of convertible instruments shall be reflected in...

                2. 50 Convertible preference shares are antidilutive whenever the amount of the...

                3. 51 The redemption or induced conversion of convertible preference shares may...

              7. Contingently issuable shares

                1. 52 As in the calculation of basic earnings per share, contingently...

                2. 53 If attainment or maintenance of a specified amount of earnings...

                3. 54 The number of ordinary shares contingently issuable may depend on...

                4. 55 The number of ordinary shares contingently issuable may depend on...

                5. 56 In other cases, the number of ordinary shares contingently issuable...

                6. 57 Contingently issuable potential ordinary shares (other than those covered by...

              8. Contracts that may be settled in ordinary shares or cash...

                1. 58 When an entity has issued a contract that may be...

                2. 59 When such a contract is presented for accounting purposes as...

                3. 60 For contracts that may be settled in ordinary shares or...

                4. 61 An example of a contract that may be settled in...

              9. Purchased options

                1. 62 Contracts such as purchased put options and purchased call options...

              10. Written put options

                1. 63 Contracts that require the entity to repurchase its own shares,...

        5. RETROSPECTIVE ADJUSTMENTS

          1. 64 If the number of ordinary or potential ordinary shares outstanding...

          2. 65 An entity does not restate diluted earnings per share of...

        6. PRESENTATION

          1. 66 An entity shall present on the face of the income...

          2. 67 Earnings per share is presented for every period for which...

          3. 68 An entity that reports a discontinued operation shall disclose the...

          4. 69 An entity shall present basic and diluted earnings per share,...

        7. DISCLOSURE

          1. 70 An entity shall disclose the following:

          2. 71 Examples of transactions in paragraph 70(d) include:

          3. 72 Financial instruments and other contracts generating potential ordinary shares may...

          4. 73 If an entity discloses, in addition to basic and diluted...

        8. EFFECTIVE DATE

          1. 74 An entity shall apply this standard for annual periods beginning...

        9. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 75 This standard supersedes IAS 33 Earnings per share (issued in...

          2. 76 This standard supersedes SIC-24 Earnings per share — financial instruments...

        10. Appendix A

          APPLICATION GUIDANCE

          2. PROFIT OR LOSS ATTRIBUTABLE TO THE PARENT ENTITY

            1. A1 For the purpose of calculating earnings per share based on...

          3. RIGHTS ISSUES

            1. A2 The issue of ordinary shares at the time of exercise...

          4. CONTROL NUMBER

            1. A3 To illustrate the application of the control number notion described...

          5. AVERAGE MARKET PRICE OF ORDINARY SHARES

            1. A4 For the purpose of calculating diluted earnings per share, the...

            2. A5 Generally, closing market prices are adequate for calculating the average...

          6. OPTIONS, WARRANTS AND THEIR EQUIVALENTS

            1. A6 Options or warrants to purchase convertible instruments are assumed to...

            2. A7 Options or warrants may permit or require the tendering of...

            3. A8 Similar treatment is given to preference shares that have similar...

            4. A9 The underlying terms of certain options or warrants may require...

          7. WRITTEN PUT OPTIONS

            1. A10 To illustrate the application of paragraph 63, assume that an entity...

          8. INSTRUMENTS OF SUBSIDIARIES, JOINT VENTURES OR ASSOCIATES

            1. A11 Potential ordinary shares of a subsidiary, joint venture or associate...

            2. A12 For the purpose of determining the earnings per share effect...

          9. PARTICIPATING EQUITY INSTRUMENTS AND TWO-CLASS ORDINARY SHARES

            1. A13 The equity of some entities includes:

            2. A14 For the purpose of calculating diluted earnings per share, conversion...

          10. PARTLY PAID SHARES

            1. A15 Where ordinary shares are issued but not fully paid, they...

            2. A16 To the extent that partly paid shares are not entitled...

      24. INTERNATIONAL ACCOUNTING STANDARD 34

        Interim financial reporting

        1. OBJECTIVE

        2. SCOPE

          1. 1 This standard does not mandate which entities should be required...

          2. 2 Each financial report, annual or interim, is evaluated on its...

          3. 3 If an entity's interim financial report is described as complying...

        3. DEFINITIONS

          1. 4 The following terms are used in this standard with the...

        4. CONTENT OF AN INTERIM FINANCIAL REPORT

          1. 5 IAS 1 defines a complete set of financial statements as including...

          2. 6 In the interest of timeliness and cost considerations and to...

          3. 7 Nothing in this standard is intended to prohibit or discourage...

          4. Minimum components of an interim financial report

            1. 8 An interim financial report shall include, at a minimum, the...

          5. Form and content of interim financial statements

            1. 9 If an entity publishes a complete set of financial statements...

            2. 10 If an entity publishes a set of condensed financial statements...

            3. 11 Basic and diluted earnings per share shall be presented on...

            4. 12 IAS 1 provides guidance on the structure of financial statements. The Implementation...

            5. 13 IAS 1 requires a statement of changes in equity be presented...

            6. 14 An interim financial report is prepared on a consolidated basis...

          6. Selected explanatory notes

            1. 15 A user of an entity's interim financial report will also...

            2. 16 An entity shall include the following information, as a minimum,...

            3. 17 Examples of the kinds of disclosures that are required by...

            4. 18 Other standards specify disclosures that should be made in financial...

          7. Disclosure of compliance with IFRSs

            1. 19 If an entity's interim financial report is in compliance with...

          8. Periods for which interim financial statements are required to be...

            1. 20 Interim reports shall include interim financial statements (condensed or complete)...

            2. 21 For an entity whose business is highly seasonal, financial information...

            3. 22 Appendix A illustrates the periods required to be presented by...

          9. Materiality

            1. 23 In deciding how to recognise, measure, classify, or disclose an...

            2. 24 IAS 1 and IAS 8 Accounting policies, changes in accounting estimates and...

            3. 25 While judgement is always required in assessing materiality, this standard...

        5. DISCLOSURE IN ANNUAL FINANCIAL STATEMENTS

          1. 26 If an estimate of an amount reported in an interim...

          2. 27 IAS 8 requires disclosure of the nature and (if practicable) the...

        6. RECOGNITION AND MEASUREMENT

          1. Same accounting policies as annual

            1. 28 An entity shall apply the same accounting policies in its...

            2. 29 Requiring that an entity apply the same accounting policies in...

            3. 30 To illustrate:

            4. 31 Under the Framework for the Preparation and Presentation of Financial...

            5. 32 For assets, the same tests of future economic benefits apply...

            6. 33 An essential characteristic of income (revenue) and expenses is that...

            7. 34 In measuring the assets, liabilities, income, expenses, and cash flows...

            8. 35 An entity that reports half-yearly uses information available by mid-year...

            9. 36 An entity that reports more frequently than half-yearly measures income...

          2. Revenues received seasonally, cyclically, or occasionally

            1. 37 Revenues that are received seasonally, cyclically, or occasionally within a...

            2. 38 Examples include dividend revenue, royalties, and government grants. Additionally, some...

          3. Costs incurred unevenly during the financial year

            1. 39 Costs that are incurred unevenly during an entity's financial year...

          4. Applying the recognition and measurement principles

            1. 40 Appendix B provides examples of applying the general recognition and...

          5. Use of estimates

            1. 41 The measurement procedures to be followed in an interim financial...

            2. 42 Appendix C provides examples of the use of estimates in...

        7. RESTATEMENT OF PREVIOUSLY REPORTED INTERIM PERIODS

          1. 43 A change in accounting policy, other than one for which...

          2. 44 One objective of the preceding principle is to ensure that...

          3. 45 To allow accounting changes to be reflected as of an...

        8. EFFECTIVE DATE

          1. 46 This standard becomes operative for financial statements covering periods beginning...

      25. INTERNATIONAL ACCOUNTING STANDARD 36

        Impairment of assets

        1. OBJECTIVE

          1. 1 The objective of this standard is to prescribe the procedures...

        2. SCOPE

          1. 2 This standard shall be applied in accounting for the impairment...

          2. 3 This standard does not apply to inventories, assets arising from...

          3. 4 This standard applies to financial assets classified as:

          4. 5 This standard does not apply to financial assets within the...

        3. DEFINITIONS

          1. 6 The following terms are used in this standard with the...

        4. IDENTIFYING AN ASSET THAT MAY BE IMPAIRED

          1. 7 Paragraphs 8-17 specify when recoverable amount shall be determined. These requirements...

          2. 8 An asset is impaired when its carrying amount exceeds its...

          3. 9 An entity shall assess at each reporting date whether there...

          4. 10 Irrespective of whether there is any indication of impairment, an...

          5. 11 The ability of an intangible asset to generate sufficient future...

          6. 12 In assessing whether there is any indication that an asset...

          7. 13 The list in paragraph 12 is not exhaustive. An entity may...

          8. 14 Evidence from internal reporting that indicates that an asset may...

          9. 15 As indicated in paragraph 10, this standard requires an intangible asset...

          10. 16 As an illustration of paragraph 15, if market interest rates or...

          11. 17 If there is an indication that an asset may be...

        5. MEASURING RECOVERABLE AMOUNT

          1. 18 This standard defines recoverable amount as the higher of an...

          2. 19 It is not always necessary to determine both an asset's...

          3. 20 It may be possible to determine fair value less costs...

          4. 21 If there is no reason to believe that an asset's...

          5. 22 Recoverable amount is determined for an individual asset, unless the...

          6. 23 In some cases, estimates, averages and computational short cuts may...

          7. Measuring the recoverable amount of an intangible asset with an...

            1. 24 Paragraph 10 requires an intangible asset with an indefinite useful life...

          8. Fair value less costs to sell

            1. 25 The best evidence of an asset's fair value less costs...

            2. 26 If there is no binding sale agreement but an asset...

            3. 27 If there is no binding sale agreement or active market...

            4. 28 Costs of disposal, other than those that have been recognised...

            5. 29 Sometimes, the disposal of an asset would require the buyer...

          9. Value in use

            1. 30 The following elements shall be reflected in the calculation of...

            2. 31 Estimating the value in use of an asset involves the...

            3. 32 The elements identified in paragraph 30(b), (d) and (e) can be...

            4. Basis for estimates of future cash flows

              1. 33 In measuring value in use an entity shall:

              2. 34 Management assesses the reasonableness of the assumptions on which its...

              3. 35 Detailed, explicit and reliable financial budgets/forecasts of future cash flows...

              4. 36 Cash flow projections until the end of an asset's useful...

              5. 37 When conditions are favourable, competitors are likely to enter the...

              6. 38 In using information from financial budgets/forecasts, an entity considers whether...

            5. Composition of estimates of future cash flows

              1. 39 Estimates of future cash flows shall include:

              2. 40 Estimates of future cash flows and the discount rate reflect...

              3. 41 Projections of cash outflows include those for the day-to-day servicing...

              4. 42 When the carrying amount of an asset does not yet...

              5. 43 To avoid double-counting, estimates of future cash flows do not...

              6. 44 Future cash flows shall be estimated for the asset in...

              7. 45 Because future cash flows are estimated for the asset in...

              8. 46 A restructuring is a programme that is planned and controlled...

              9. 47 When an entity becomes committed to a restructuring, some assets...

              10. 48 Until an entity incurs cash outflows that improve or enhance...

              11. 49 Estimates of future cash flows include future cash outflows necessary...

              12. 50 Estimates of future cash flows shall not include:

              13. 51 Estimated future cash flows reflect assumptions that are consistent with...

              14. 52 The estimate of net cash flows to be received (or...

              15. 53 The estimate of net cash flows to be received (or...

            6. Foreign currency future cash flows

              1. 54 Future cash flows are estimated in the currency in which...

            7. Discount rate

              1. 55 The discount rate (rates) shall be a pre-tax rate (rates)...

              2. 56 A rate that reflects current market assessments of the time...

              3. 57 When an asset-specific rate is not directly available from the...

        6. RECOGNISING AND MEASURING AN IMPAIRMENT LOSS

          1. 58 Paragraphs 59-64 set out the requirements for recognising and measuring impairment...

          2. 59 If, and only if, the recoverable amount of an asset...

          3. 60 An impairment loss shall be recognised immediately in profit or...

          4. 61 An impairment loss on a non-revalued asset is recognised in...

          5. 62 When the amount estimated for an impairment loss is greater...

          6. 63 After the recognition of an impairment loss, the depreciation (amortisation)...

          7. 64 If an impairment loss is recognised, any related deferred tax...

        7. CASH-GENERATING UNITS AND GOODWILL

          1. 65 Paragraphs 66-108 set out the requirements for identifying the cash-generating unit...

          2. Identifying the cash-generating unit to which an asset belongs

            1. 66 If there is any indication that an asset may be...

            2. 67 The recoverable amount of an individual asset cannot be determined...

              1. Example

            3. 68 As defined in paragraph 6, an asset's cash-generating unit is the...

              1. Example

            4. 69 Cash inflows are inflows of cash and cash equivalents received...

            5. 70 If an active market exists for the output produced by...

            6. 71 Even if part or all of the output produced by...

            7. 72 Cash-generating units shall be identified consistently from period to period...

            8. 73 If an entity determines that an asset belongs to a...

          3. Recoverable amount and carrying amount of a cash-generating unit

            1. 74 The recoverable amount of a cash-generating unit is the higher...

            2. 75 The carrying amount of a cash-generating unit shall be determined...

            3. 76 The carrying amount of a cash-generating unit:

            4. 77 When assets are grouped for recoverability assessments, it is important...

            5. 78 It may be necessary to consider some recognised liabilities to...

              1. Example

            6. 79 For practical reasons, the recoverable amount of a cash-generating unit...

            7. Goodwill

              1. Allocating goodwill to cash-generating units

                1. 80 For the purpose of impairment testing, goodwill acquired in a...

                2. 81 Goodwill acquired in a business combination represents a payment made...

                3. 82 Applying the requirements in paragraph 80 results in goodwill being tested...

                4. 83 A cash-generating unit to which goodwill is allocated for the...

                5. 84 If the initial allocation of goodwill acquired in a business...

                6. 85 In accordance with IFRS 3 Business combinations, if the initial accounting...

                7. 86 If goodwill has been allocated to a cash-generating unit and...

                  1. Example

                8. 87 If an entity reorganises its reporting structure in a way...

                  1. Example

              2. Testing cash-generating units with goodwill for impairment

                1. 88 When, as described in paragraph 81, goodwill relates to a cash-generating...

                2. 89 If a cash-generating unit described in paragraph 88 includes in its...

                3. 90 A cash-generating unit to which goodwill has been allocated shall...

              3. Minority interest

                1. 91 In accordance with IFRS 3, goodwill recognised in a business combination...

                2. 92 Consequently, for the purpose of impairment testing a non-wholly-owned cash-generating...

                3. 93 However, because goodwill is recognised only to the extent of...

                4. 94 If the total impairment loss relating to goodwill is less...

                5. 95 Illustrative Example 7 illustrates the impairment testing of a non-wholly-owned...

              4. Timing of impairment tests

                1. 96 The annual impairment test for a cash-generating unit to which...

                2. 97 If the assets constituting the cash-generating unit to which goodwill...

                3. 98 At the time of impairment testing a cash-generating unit to...

                4. 99 The most recent detailed calculation made in a preceding period...

            8. Corporate assets

              1. 100 Corporate assets include group or divisional assets such as the...

              2. 101 Because corporate assets do not generate separate cash inflows, the...

              3. 102 In testing a cash-generating unit for impairment, an entity shall...

              4. 103 Illustrative Example 8 illustrates the application of these requirements to...

          4. Impairment loss for a cash-generating unit

            1. 104 An impairment loss shall be recognised for a cash-generating unit...

            2. 105 In allocating an impairment loss in accordance with paragraph 104, an...

            3. 106 If it is not practicable to estimate the recoverable amount...

            4. 107 If the recoverable amount of an individual asset cannot be...

              1. Example

            5. 108 After the requirements in paragraphs 104 and 105 have been applied,...

        8. REVERSING AN IMPAIRMENT LOSS

          1. 109 Paragraphs 110-116 set out the requirements for reversing an impairment loss...

          2. 110 An entity shall assess at each reporting date whether there...

          3. 111 In assessing whether there is any indication that an impairment...

          4. 112 Indications of a potential decrease in an impairment loss in...

          5. 113 If there is an indication that an impairment loss recognised...

          6. 114 An impairment loss recognised in prior periods for an asset...

          7. 115 A reversal of an impairment loss reflects an increase in...

          8. 116 An asset's value in use may become greater than the...

          9. Reversing an impairment loss for an individual asset

            1. 117 The increased carrying amount of an asset other than goodwill...

            2. 118 Any increase in the carrying amount of an asset other...

            3. 119 A reversal of an impairment loss for an asset other...

            4. 120 A reversal of an impairment loss on a revalued asset...

            5. 121 After a reversal of an impairment loss is recognised, the...

          10. Reversing an impairment loss for a cash-generating unit

            1. 122 A reversal of an impairment loss for a cash-generating unit...

            2. 123 In allocating a reversal of an impairment loss for a...

          11. Reversing an impairment loss for goodwill

            1. 124 An impairment loss recognised for goodwill shall not be reversed in...

            2. 125 IAS 38 Intangible assets prohibits the recognition of internally generated goodwill....

        9. DISCLOSURE

          1. 126 An entity shall disclose the following for each class of...

          2. 127 A class of assets is a grouping of assets of...

          3. 128 The information required in paragraph 126 may be presented with other...

          4. 129 An entity that reports segment information in accordance with IFRS 8...

          5. 130 An entity shall disclose the following for each material impairment...

          6. 131 An entity shall disclose the following information for the aggregate...

          7. 132 An entity is encouraged to disclose assumptions used to determine...

          8. 133 If, in accordance with paragraph 84, any portion of the goodwill...

          9. Estimates used to measure recoverable amounts of cash-generating units containing...

            1. 134 An entity shall disclose the information required by (a)-(f) for...

            2. 135 If some or all of the carrying amount of goodwill...

            3. 136 The most recent detailed calculation made in a preceding period...

            4. 137 Illustrative Example 9 illustrates the disclosures required by paragraphs 134 and...

          10. Transitional provisions and effective date

            1. 138 If an entity elects in accordance with paragraph 85 of IFRS 3...

            2. 139 Otherwise, an entity shall apply this standard:

            3. 140 Entities to which paragraph 139 applies are encouraged to apply the...

          11. Withdrawal of IAS 36 (issued 1998)

            1. 141 This standard supersedes IAS 36 Impairment of assets (issued in 1998)....

        10. Appendix A

          USING PRESENT VALUE TECHNIQUES TO MEASURE VALUE IN USE

          2. The components of a present value measurement

            1. A1 The following elements together capture the economic differences between assets:...

            2. A2 This appendix contrasts two approaches to computing present value, either...

          3. General principles

            1. A3 The techniques used to estimate future cash flows and interest...

          4. Traditional and expected cash flow approaches to present value

            1. Traditional approach

              1. A4 Accounting applications of present value have traditionally used a single...

              2. A5 In some circumstances, such as those in which comparable assets...

              3. A6 However, the traditional approach may not appropriately address some complex...

            2. Expected cash flow approach

              1. A7 The expected cash flow approach is, in some situations, a...

              2. A8 The expected cash flow approach also allows use of present...

              3. A9 The expected present value of CU892,36 differs from the traditional...

              4. A10 The use of probabilities is an essential element of the...

              5. A11 Many estimates developed in current practice already incorporate the elements...

              6. A12 The application of an expected cash flow approach is subject...

              7. A13 Some maintain that expected cash flow techniques are inappropriate for...

              8. A14 Assertions like the one just outlined reflect underlying disagreement with...

          5. Discount rate

            1. A15 Whichever approach an entity adopts for measuring the value in...

            2. A16 When an asset-specific rate is not directly available from the...

            3. A17 As a starting point in making such an estimate, the...

            4. A18 However, these rates must be adjusted:

            5. A19 The discount rate is independent of the entity's capital structure...

            6. A20 Paragraph 55 requires the discount rate used to be a pre-tax...

            7. A21 An entity normally uses a single discount rate for the...

      26. INTERNATIONAL ACCOUNTING STANDARD 37

        Provisions, contingent liabilities and contingent assets

        1. OBJECTIVE

        2. SCOPE

          1. 1 This standard shall be applied by all entities in accounting...

          2. 2 This standard does not apply to financial instruments (including guarantees)...

          3. 3 Executory contracts are contracts under which neither party has performed...

          4. 4 [Deleted]

          5. 5 Where another standard deals with a specific type of provision,...

          6. 6 Some amounts treated as provisions may relate to the recognition...

          7. 7 This standard defines provisions as liabilities of uncertain timing or...

          8. 8 Other standards specify whether expenditures are treated as assets or...

          9. 9 This standard applies to provisions for restructurings (including discontinued operations)....

        3. DEFINITIONS

          1. 10 The following terms are used in this standard with the...

          2. Provisions and other liabilities

            1. 11 Provisions can be distinguished from other liabilities such as trade...

          3. Relationship between provisions and contingent liabilities

            1. 12 In a general sense, all provisions are contingent because they...

            2. 13 This standard distinguishes between:

        4. RECOGNITION

          1. Provisions

            1. 14 A provision shall be recognised when:

            2. Present obligation

              1. 15 In rare cases it is not clear whether there is...

              2. 16 In almost all cases it will be clear whether a...

            3. Past event

              1. 17 A past event that leads to a present obligation is...

              2. 18 Financial statements deal with the financial position of an entity...

              3. 19 It is only those obligations arising from past events existing...

              4. 20 An obligation always involves another party to whom the obligation...

              5. 21 An event that does not give rise to an obligation...

              6. 22 Where details of a proposed new law have yet to...

            4. Probable outflow of resources embodying economic benefits

              1. 23 For a liability to qualify for recognition there must be...

              2. 24 Where there are a number of similar obligations (e.g. product...

            5. Reliable estimate of the obligation

              1. 25 The use of estimates is an essential part of the...

              2. 26 In the extremely rare case where no reliable estimate can...

          2. Contingent liabilities

            1. 27 An entity shall not recognise a contingent liability.

            2. 28 A contingent liability is disclosed, as required by paragraph 86, unless...

            3. 29 Where an entity is jointly and severally liable for an...

            4. 30 Contingent liabilities may develop in a way not initially expected....

          3. Contingent assets

            1. 31 An entity shall not recognise a contingent asset.

            2. 32 Contingent assets usually arise from unplanned or other unexpected events...

            3. 33 Contingent assets are not recognised in financial statements since this...

            4. 34 A contingent asset is disclosed, as required by paragraph 89, where...

            5. 35 Contingent assets are assessed continually to ensure that developments are...

        5. MEASUREMENT

          1. Best estimate

            1. 36 The amount recognised as a provision shall be the best...

            2. 37 The best estimate of the expenditure required to settle the...

            3. 38 The estimates of outcome and financial effect are determined by...

            4. 39 Uncertainties surrounding the amount to be recognised as a provision...

              1. Example

            5. 40 Where a single obligation is being measured, the individual most...

            6. 41 The provision is measured before tax, as the tax consequences...

          2. Risks and uncertainties

            1. 42 The risks and uncertainties that inevitably surround many events and...

            2. 43 Risk describes variability of outcome. A risk adjustment may increase...

            3. 44 Disclosure of the uncertainties surrounding the amount of the expenditure...

          3. Present value

            1. 45 Where the effect of the time value of money is...

            2. 46 Because of the time value of money, provisions relating to...

            3. 47 The discount rate (or rates) shall be a pre-tax rate...

          4. Future events

            1. 48 Future events that may affect the amount required to settle...

            2. 49 Expected future events may be particularly important in measuring provisions....

            3. 50 The effect of possible new legislation is taken into consideration...

          5. Expected disposal of assets

            1. 51 Gains from the expected disposal of assets shall not be...

            2. 52 Gains on the expected disposal of assets are not taken...

        6. REIMBURSEMENTS

          1. 53 Where some or all of the expenditure required to settle...

          2. 54 In the income statement, the expense relating to a provision...

          3. 55 Sometimes, an entity is able to look to another party...

          4. 56 In most cases the entity will remain liable for the...

          5. 57 In some cases, the entity will not be liable for...

          6. 58 As noted in paragraph 29, an obligation for which an entity...

        7. CHANGES IN PROVISIONS

          1. 59 Provisions shall be reviewed at each balance sheet date and...

          2. 60 Where discounting is used, the carrying amount of a provision...

        8. USE OF PROVISIONS

          1. 61 A provision shall be used only for expenditures for which...

          2. 62 Only expenditures that relate to the original provision are set...

        9. APPLICATION OF THE RECOGNITION AND MEASUREMENT RULES

          1. Future operating losses

            1. 63 Provisions shall not be recognised for future operating losses.

            2. 64 Future operating losses do not meet the definition of a...

            3. 65 An expectation of future operating losses is an indication that...

          2. Onerous contracts

            1. 66 If an entity has a contract that is onerous, the...

            2. 67 Many contracts (for example, some routine purchase orders) can be...

            3. 68 This standard defines an onerous contract as a contract in...

            4. 69 Before a separate provision for an onerous contract is established,...

          3. Restructuring

            1. 70 The following are examples of events that may fall under...

            2. 71 A provision for restructuring costs is recognised only when the...

            3. 72 A constructive obligation to restructure arises only when an entity:...

            4. 73 Evidence that an entity has started to implement a restructuring...

            5. 74 For a plan to be sufficient to give rise to...

            6. 75 A management or board decision to restructure taken before the...

            7. 76 Although a constructive obligation is not created solely by a...

            8. 77 In some countries, the ultimate authority is vested in a...

            9. 78 No obligation arises for the sale of an operation until...

            10. 79 Even when an entity has taken a decision to sell...

            11. 80 A restructuring provision shall include only the direct expenditures arising...

            12. 81 A restructuring provision does not include such costs as:

            13. 82 Identifiable future operating losses up to the date of a...

            14. 83 As required by paragraph 51, gains on the expected disposal of...

        10. DISCLOSURE

          1. 84 For each class of provision, an entity shall disclose:

          2. 85 An entity shall disclose the following for each class of...

          3. 86 Unless the possibility of any outflow in settlement is remote,...

          4. 87 In determining which provisions or contingent liabilities may be aggregated...

          5. 88 Where a provision and a contingent liability arise from the...

          6. 89 Where an inflow of economic benefits is probable, an entity...

          7. 90 It is important that disclosures for contingent assets avoid giving...

          8. 91 Where any of the information required by paragraphs 86 and 89...

          9. 92 In extremely rare cases, disclosure of some or all of...

        11. TRANSITIONAL PROVISIONS

          1. 93 The effect of adopting this standard on its effective date...

          2. 94 [Deleted]

        12. EFFECTIVE DATE

          1. 95 This standard becomes operative for annual financial statements covering periods...

          2. 96 [Deleted]

      27. INTERNATIONAL ACCOUNTING STANDARD 38

        Intangible assets

        1. OBJECTIVE

          1. 1 The objective of this standard is to prescribe the accounting...

        2. SCOPE

          1. 2 This standard shall be applied in accounting for intangible assets,...

          2. 3 If another standard prescribes the accounting for a specific type...

          3. 4 Some intangible assets may be contained in or on a...

          4. 5 This standard applies to, among other things, expenditure on advertising,...

          5. 6 In the case of a finance lease, the underlying asset...

          6. 7 Exclusions from the scope of a standard may occur if...

        3. DEFINITIONS

          1. 8 The following terms are used in this standard with the...

          2. Intangible assets

            1. 9 Entities frequently expend resources, or incur liabilities, on the acquisition,...

            2. 10 Not all the items described in paragraph 9 meet the definition...

            3. Identifiability

              1. 11 The definition of an intangible asset requires an intangible asset...

              2. 12 An asset meets the identifiability criterion in the definition of...

            4. Control

              1. 13 An entity controls an asset if the entity has the...

              2. 14 Market and technical knowledge may give rise to future economic...

              3. 15 An entity may have a team of skilled staff and...

              4. 16 An entity may have a portfolio of customers or a...

            5. Future economic benefits

              1. 17 The future economic benefits flowing from an intangible asset may...

        4. RECOGNITION AND MEASUREMENT

          1. 18 The recognition of an item as an intangible asset requires...

          2. 19 Paragraphs 25-32 deal with the application of the recognition criteria to...

          3. 20 The nature of intangible assets is such that, in many...

          4. 21 An intangible asset shall be recognised if, and only if:...

          5. 22 An entity shall assess the probability of expected future economic...

          6. 23 An entity uses judgement to assess the degree of certainty...

          7. 24 An intangible asset shall be measured initially at cost.

          8. Separate acquisition

            1. 25 Normally, the price an entity pays to acquire separately an...

            2. 26 In addition, the cost of a separately acquired intangible asset...

            3. 27 The cost of a separately acquired intangible asset comprises:

            4. 28 Examples of directly attributable costs are:

            5. 29 Examples of expenditures that are not part of the cost...

            6. 30 Recognition of costs in the carrying amount of an intangible...

            7. 31 Some operations occur in connection with the development of an...

            8. 32 If payment for an intangible asset is deferred beyond normal...

          9. Acquisition as part of a business combination

            1. 33 In accordance with IFRS 3, if an intangible asset is acquired...

            2. 34 Therefore, in accordance with this standard and IFRS 3, an acquirer...

            3. Measuring the fair value of an intangible asset acquired in...

              1. 35 The fair value of intangible assets acquired in business combinations...

              2. 36 An intangible asset acquired in a business combination might be...

              3. 37 Similarly, the terms ‘brand’ and ‘brand name’ are often used...

              4. 38 The only circumstances in which it might not be possible...

              5. 39 Quoted market prices in an active market provide the most...

              6. 40 If no active market exists for an intangible asset, its...

              7. 41 Entities that are regularly involved in the purchase and sale...

            4. Subsequent expenditure on an acquired in-process research and development project...

              1. 42 Research or development expenditure that:

              2. 43 Applying the requirements in paragraphs 54-62 means that subsequent expenditure on...

          10. Acquisition by way of a government grant

            1. 44 In some cases, an intangible asset may be acquired free...

          11. Exchanges of assets

            1. 45 One or more intangible assets may be acquired in exchange...

            2. 46 An entity determines whether an exchange transaction has commercial substance...

            3. 47 Paragraph 21(b) specifies that a condition for the recognition of an...

          12. Internally generated goodwill

            1. 48 Internally generated goodwill shall not be recognised as an asset....

            2. 49 In some cases, expenditure is incurred to generate future economic...

            3. 50 Differences between the market value of an entity and the...

          13. Internally generated intangible assets

            1. 51 It is sometimes difficult to assess whether an internally generated...

            2. 52 To assess whether an internally generated intangible asset meets the...

            3. 53 If an entity cannot distinguish the research phase from the...

            4. Research phase

              1. 54 No intangible asset arising from research (or from the research...

              2. 55 In the research phase of an internal project, an entity...

              3. 56 Examples of research activities are:

            5. Development phase

              1. 57 An intangible asset arising from development (or from the development...

              2. 58 In the development phase of an internal project, an entity...

              3. 59 Examples of development activities are:

              4. 60 To demonstrate how an intangible asset will generate probable future...

              5. 61 Availability of resources to complete, use and obtain the benefits...

              6. 62 An entity's costing systems can often measure reliably the cost...

              7. 63 Internally generated brands, mastheads, publishing titles, customer lists and items...

              8. 64 Expenditure on internally generated brands, mastheads, publishing titles, customer lists...

            6. Cost of an internally generated intangible asset

              1. 65 The cost of an internally generated intangible asset for the...

              2. 66 The cost of an internally generated intangible asset comprises all...

              3. 67 The following are not components of the cost of an...

                1. Example illustrating paragraph 65

        5. RECOGNITION OF AN EXPENSE

          1. 68 Expenditure on an intangible item shall be recognised as an...

          2. 69 In some cases, expenditure is incurred to provide future economic...

          3. 70 Paragraph 68 does not preclude recognising a prepayment as an asset...

          4. Past expenses not to be recognised as an asset

            1. 71 Expenditure on an intangible item that was initially recognised as...

        6. MEASUREMENT AFTER RECOGNITION

          1. 72 An entity shall choose either the cost model in paragraph 74...

          2. 73 A class of intangible assets is a grouping of assets...

          3. Cost model

            1. 74 After initial recognition, an intangible asset shall be carried at...

          4. Revaluation model

            1. 75 After initial recognition, an intangible asset shall be carried at...

            2. 76 The revaluation model does not allow:

            3. 77 The revaluation model is applied after an asset has been...

            4. 78 It is uncommon for an active market with the characteristics...

            5. 79 The frequency of revaluations depends on the volatility of the...

            6. 80 If an intangible asset is revalued, any accumulated amortisation at...

            7. 81 If an intangible asset in a class of revalued intangible...

            8. 82 If the fair value of a revalued intangible asset can...

            9. 83 The fact that an active market no longer exists for...

            10. 84 If the fair value of the asset can be determined...

            11. 85 If an intangible asset's carrying amount is increased as a...

            12. 86 If an intangible asset's carrying amount is decreased as a...

            13. 87 The cumulative revaluation surplus included in equity may be transferred...

        7. USEFUL LIFE

          1. 88 An entity shall assess whether the useful life of an...

          2. 89 The accounting for an intangible asset is based on its...

          3. 90 Many factors are considered in determining the useful life of...

          4. 91 The term ‘indefinite’ does not mean ‘infinite’. The useful life...

          5. 92 Given the history of rapid changes in technology, computer software...

          6. 93 The useful life of an intangible asset may be very...

          7. 94 The useful life of an intangible asset that arises from...

          8. 95 There may be both economic and legal factors influencing the...

          9. 96 Existence of the following factors, among others, indicates that an...

        8. INTANGIBLE ASSETS WITH FINITE USEFUL LIVES

          1. Amortisation period and amortisation method

            1. 97 The depreciable amount of an intangible asset with a finite...

            2. 98 A variety of amortisation methods can be used to allocate...

            3. 99 Amortisation is usually recognised in profit or loss. However, sometimes...

          2. Residual value

            1. 100 The residual value of an intangible asset with a finite...

            2. 101 The depreciable amount of an asset with a finite useful...

            3. 102 An estimate of an asset's residual value is based on...

            4. 103 The residual value of an intangible asset may increase to...

          3. Review of amortisation period and amortisation method

            1. 104 The amortisation period and the amortisation method for an intangible...

            2. 105 During the life of an intangible asset, it may become...

            3. 106 Over time, the pattern of future economic benefits expected to...

        9. INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES

          1. 107 An intangible asset with an indefinite useful life shall not...

          2. 108 In accordance with IAS 36, an entity is required to test...

          3. Review of useful life assessment

            1. 109 The useful life of an intangible asset that is not...

            2. 110 In accordance with IAS 36, reassessing the useful life of an...

        10. RECOVERABILITY OF THE CARRYING AMOUNT — IMPAIRMENT LOSSES

          1. 111 To determine whether an intangible asset is impaired, an entity...

        11. RETIREMENTS AND DISPOSALS

          1. 112 An intangible asset shall be derecognised:

          2. 113 The gain or loss arising from the derecognition of an...

          3. 114 The disposal of an intangible asset may occur in a...

          4. 115 If in accordance with the recognition principle in paragraph 21 an...

          5. 116 The consideration receivable on disposal of an intangible asset is...

          6. 117 Amortisation of an intangible asset with a finite useful life...

        12. DISCLOSURE

          1. General

            1. 118 An entity shall disclose the following for each class of...

            2. 119 A class of intangible assets is a grouping of assets...

            3. 120 An entity discloses information on impaired intangible assets in accordance...

            4. 121 IAS 8 requires an entity to disclose the nature and amount...

            5. 122 An entity shall also disclose:

            6. 123 When an entity describes the factor(s) that played a significant...

          2. Intangible assets measured after recognition using the revaluation model

            1. 124 If intangible assets are accounted for at revalued amounts, an...

            2. 125 It may be necessary to aggregate the classes of revalued...

          3. Research and development expenditure

            1. 126 An entity shall disclose the aggregate amount of research and...

            2. 127 Research and development expenditure comprises all expenditure that is directly...

          4. Other information

            1. 128 An entity is encouraged, but not required, to disclose the...

        13. TRANSITIONAL PROVISIONS AND EFFECTIVE DATE

          1. 129 If an entity elects in accordance with paragraph 85 of IFRS 3...

          2. 130 Otherwise, an entity shall apply this standard:

          3. 130A An entity shall apply the amendments in paragraph 2 for annual...

          4. Exchanges of similar assets

            1. 131 The requirement in paragraphs 129 and 130(b) to apply this standard...

          5. Early application

            1. 132 Entities to which paragraph 130 applies are encouraged to apply the...

        14. WITHDRAWAL OF IAS 38 (ISSUED 1998)

          1. 133 This standard supersedes IAS 38 Intangible assets (issued in 1998).

      28. INTERNATIONAL ACCOUNTING STANDARD 39

        Financial instruments: recognition and measurement

        1. OBJECTIVE

          1. 1 The objective of this standard is to establish principles for...

        2. SCOPE

          1. 2 This standard shall be applied by all entities to all...

          2. 3 [Deleted]

          3. 4 The following loan commitments are within the scope of this...

          4. 5 This standard shall be applied to those contracts to buy...

          5. 6 There are various ways in which a contract to buy...

          6. 7 A written option to buy or sell a non-financial item...

        3. DEFINITIONS

          1. 8 The terms defined in IAS 32 are used in this standard...

          2. 9 The following terms are used in this standard with the...

          3. Definition of a derivative

          4. Definitions of four categories of financial instruments

          5. Definition of a financial guarantee contract

          6. Definitions relating to recognition and measurement

          7. Definitions relating to hedge accounting

        4. EMBEDDED DERIVATIVES

          1. 10 An embedded derivative is a component of a hybrid (combined)...

          2. 11 An embedded derivative shall be separated from the host contract...

          3. 11A Notwithstanding paragraph 11, if a contract contains one or more embedded...

          4. 12 If an entity is required by this standard to separate...

          5. 13 If an entity is unable to determine reliably the fair...

        5. RECOGNITION AND DERECOGNITION

          1. Initial recognition

            1. 14 An entity shall recognise a financial asset or a financial...

          2. Derecognition of a financial asset

            1. 15 In consolidated financial statements, paragraphs 16-23 and Appendix A paragraphs AG34-AG52...

            2. 16 Before evaluating whether, and to what extent, derecognition is appropriate...

            3. 17 An entity shall derecognise a financial asset when, and only...

            4. 18 An entity transfers a financial asset if, and only if,...

            5. 19 When an entity retains the contractual rights to receive the...

            6. 20 When an entity transfers a financial asset (see paragraph 18), it...

            7. 21 The transfer of risks and rewards (see paragraph 20) is evaluated...

            8. 22 Often it will be obvious whether the entity has transferred...

            9. 23 Whether the entity has retained control (see paragraph 20(c)) of the...

            10. Transfers that qualify for derecognition (see paragraph 20(a) and (c)(i))

              1. 24 If an entity transfers a financial asset in a transfer...

              2. 25 If, as a result of a transfer, a financial asset...

              3. 26 On derecognition of a financial asset in its entirety, the...

              4. 27 If the transferred asset is part of a larger financial...

              5. 28 When an entity allocates the previous carrying amount of a...

            11. Transfers that do not qualify for derecognition (see paragraph 20(b))

              1. 29 If a transfer does not result in derecognition because the...

            12. Continuing involvement in transferred assets (see paragraph 20(c)(ii))

              1. 30 If an entity neither transfers nor retains substantially all the...

              2. 31 When an entity continues to recognise an asset to the...

              3. 32 The entity shall continue to recognise any income arising on...

              4. 33 For the purpose of subsequent measurement, recognised changes in the...

              5. 34 If an entity's continuing involvement is in only a part...

              6. 35 If the transferred asset is measured at amortised cost, the...

            13. All transfers

              1. 36 If a transferred asset continues to be recognised, the asset...

              2. 37 If a transferor provides non-cash collateral (such as debt or...

          3. Regular way purchase or sale of a financial asset

            1. 38 A regular way purchase or sale of financial assets shall...

          4. Derecognition of a financial liability

            1. 39 An entity shall remove a financial liability (or a part...

            2. 40 An exchange between an existing borrower and lender of debt...

            3. 41 The difference between the carrying amount of a financial liability...

            4. 42 If an entity repurchases a part of a financial liability,...

        6. MEASUREMENT

          1. Initial measurement of financial assets and financial liabilities

            1. 43 When a financial asset or financial liability is recognised initially,...

            2. 44 When an entity uses settlement date accounting for an asset...

          2. Subsequent measurement of financial assets

            1. 45 For the purpose of measuring a financial asset after initial...

            2. 46 After initial recognition, an entity shall measure financial assets, including...

          3. Subsequent measurement of financial liabilities

            1. 47 After initial recognition, an entity shall measure all financial liabilities...

          4. Fair value measurement considerations

            1. 48 In determining the fair value of a financial asset or...

            2. 48A The best evidence of fair value is quoted prices in...

            3. 49 The fair value of a financial liability with a demand...

          5. Reclassifications

            1. 50 An entity:

            2. 50B A financial asset to which paragraph 50(c) applies (except a financial...

            3. 50C If an entity reclassifies a financial asset out of the...

            4. 50D A financial asset to which paragraph 50(c) applies that would have...

            5. 50E A financial asset classified as available for sale that would...

            6. 50F If an entity reclassifies a financial asset out of the...

            7. 51 If, as a result of a change in intention or...

            8. 52 Whenever sales or reclassification of more than an insignificant amount...

            9. 53 If a reliable measure becomes available for a financial asset...

            10. 54 If, as a result of a change in intention or...

          6. Gains and losses

            1. 55 A gain or loss arising from a change in the...

            2. 56 For financial assets and financial liabilities carried at amortised cost...

            3. 57 If an entity recognises financial assets using settlement date accounting...

          7. Impairment and uncollectability of financial assets

            1. 58 An entity shall assess at each balance sheet date whether...

            2. 59 A financial asset or a group of financial assets is...

            3. 60 The disappearance of an active market because an entity's financial...

            4. 61 In addition to the types of events in paragraph 59, objective...

            5. 62 In some cases the observable data required to estimate the...

            6. Financial assets carried at amortised cost

              1. 63 If there is objective evidence that an impairment loss on...

              2. 64 An entity first assesses whether objective evidence of impairment exists...

              3. 65 If, in a subsequent period, the amount of the impairment...

            7. Financial assets carried at cost

              1. 66 If there is objective evidence that an impairment loss has...

            8. Available-for-sale financial assets

              1. 67 When a decline in the fair value of an available-for-sale...

              2. 68 The amount of the cumulative loss that is removed from...

              3. 69 Impairment losses recognised in profit or loss for an investment...

              4. 70 If, in a subsequent period, the fair value of a...

        7. HEDGING

          1. 71 If there is a designated hedging relationship between a hedging...

          2. Hedging instruments

            1. Qualifying instruments

              1. 72 This standard does not restrict the circumstances in which a...

              2. 73 For hedge accounting purposes, only instruments that involve a party...

          3. Designation of hedging instruments

            1. 74 There is normally a single fair value measure for a...

            2. 75 A proportion of the entire hedging instrument, such as 50...

            3. 76 A single hedging instrument may be designated as a hedge...

            4. 77 Two or more derivatives, or proportions of them (or, in...

          4. Hedged items

            1. Qualifying items

              1. 78 A hedged item can be a recognised asset or liability,...

              2. 79 Unlike loans and receivables, a held-to-maturity investment cannot be a...

              3. 80 For hedge accounting purposes, only assets, liabilities, firm commitments or...

            2. Designation of financial items as hedged items

              1. 81 If the hedged item is a financial asset or financial...

              2. 81A In a fair value hedge of the interest rate exposure...

            3. Designation of non-financial items as hedged items

              1. 82 If the hedged item is a non-financial asset or non-financial...

            4. Designation of groups of items as hedged items

              1. 83 Similar assets or similar liabilities shall be aggregated and hedged...

              2. 84 Because an entity assesses hedge effectiveness by comparing the change...

          5. Hedge accounting

            1. 85 Hedge accounting recognises the offsetting effects on profit or loss...

            2. 86 Hedging relationships are of three types:

            3. 87 A hedge of the foreign currency risk of a firm...

            4. 88 A hedging relationship qualifies for hedge accounting under paragraphs 89-102 if,...

            5. Fair value hedges

              1. 89 If a fair value hedge meets the conditions in paragraph 88...

              2. 89A For a fair value hedge of the interest rate exposure...

              3. 90 If only particular risks attributable to a hedged item are...

              4. 91 An entity shall discontinue prospectively the hedge accounting specified in...

              5. 92 Any adjustment arising from paragraph 89(b) to the carrying amount of...

              6. 93 When an unrecognised firm commitment is designated as a hedged...

              7. 94 When an entity enters into a firm commitment to acquire...

            6. Cash flow hedges

              1. 95 If a cash flow hedge meets the conditions in paragraph 88...

              2. 96 More specifically, a cash flow hedge is accounted for as...

              3. 97 If a hedge of a forecast transaction subsequently results in...

              4. 98 If a hedge of a forecast transaction subsequently results in...

              5. 99 An entity shall adopt either (a) or (b) in paragraph 98...

              6. 100 For cash flow hedges other than those covered by paragraphs 97...

              7. 101 In any of the following circumstances an entity shall discontinue...

            7. Hedges of a net investment

              1. 102 Hedges of a net investment in a foreign operation, including...

        8. EFFECTIVE DATE AND TRANSITION

          1. 103 An entity shall apply this standard (including the amendments issued...

          2. 103A An entity shall apply the amendment in paragraph 2(j) for annual...

          3. 103B Financial guarantee contracts (amendments to IAS 39 and IFRS 4), issued in...

          4. 103G Reclassification of financial assets (amendments to IAS 39 and IFRS...

          5. 104 This standard shall be applied retrospectively except as specified in...

          6. 105 When this standard is first applied, an entity is permitted...

          7. 105A An entity shall apply paragraphs 11A, 48A, AG4B-AG4K, AG33A and AG33B...

          8. 105B An entity that first applies paragraphs 11A, 48A, AG4B-AG4K, AG33A and...

          9. 105C An entity that first applies paragraphs 11A, 48A, AG4B-AG4K, AG33A and...

          10. 105D An entity shall restate its comparative financial statements using the...

          11. 106 Except as permitted by paragraph 107, an entity shall apply the...

          12. 107 Notwithstanding paragraph 106, an entity may apply the derecognition requirements in...

          13. 107A Notwithstanding paragraph 104, an entity may apply the requirements in the...

          14. 108 An entity shall not adjust the carrying amount of non-financial...

          15. 108A An entity shall apply the last sentence of paragraph 80, and...

          16. 108B An entity need not apply paragraph AG99B to comparative information...

        9. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 109 This standard supersedes IAS 39 Financial instruments: recognition and measurement revised...

          2. 110 This standard and the accompanying Implementation Guidance supersede the Implementation...

        10. Appendix A

          Application guidance

          2. SCOPE (paragraphs 2-7)

            1. AG1 Some contracts require a payment based on climatic, geological or...

            2. AG2 This standard does not change the requirements relating to employee...

            3. AG3 Sometimes, an entity makes what it views as a ‘strategic...

            4. AG3A This standard applies to the financial assets and financial liabilities...

            5. AG4 Financial guarantee contracts may have various legal forms, such as...

            6. AG4A Assertions that an issuer regards contracts as insurance contracts are...

          3. DEFINITIONS (paragraphs 8 and 9)

            1. Designation as at fair value through profit or loss

              1. AG4B Paragraph 9 of this standard allows an entity to designate a...

              2. AG4C The decision of an entity to designate a financial asset...

              3. Paragraph 9(b)(i): Designation eliminates or significantly reduces a measurement or recognition...

                1. AG4D Under IAS 39, measurement of a financial asset or financial liability...

                2. AG4E The following examples show when this condition could be met....

                3. AG4F In cases such as those described in the preceding paragraph,...

                4. AG4G It would not be acceptable to designate only some of...

              4. Paragraph 9(b)(ii): A group of financial assets, financial liabilities or both...

                1. AG4H An entity may manage and evaluate the performance of a...

                2. AG4I The following examples show when this condition could be met....

                3. AG4J As noted above, this condition relies on the way the...

                4. AG4K Documentation of the entity's strategy need not be extensive but...

            2. Effective interest rate

              1. AG5 In some cases, financial assets are acquired at a deep...

              2. AG6 When applying the effective interest method, an entity generally amortises...

              3. AG7 For floating rate financial assets and floating rate financial liabilities,...

              4. AG8 If an entity revises its estimates of payments or receipts,...

            3. Derivatives

              1. AG9 Typical examples of derivatives are futures and forward, swap and...

              2. AG10 The definition of a derivative in this standard includes contracts...

              3. AG11 One of the defining characteristics of a derivative is that...

              4. AG12 A regular way purchase or sale gives rise to a...

              5. AG12A The definition of a derivative refers to non-financial variables that...

            4. Transaction costs

              1. AG13 Transaction costs include fees and commissions paid to agents (including...

            5. Financial assets and financial liabilities held for trading

              1. AG14 Trading generally reflects active and frequent buying and selling, and...

              2. AG15 Financial liabilities held for trading include:

            6. Held-to-maturity investments

              1. AG16 An entity does not have a positive intention to hold...

              2. AG17 A debt instrument with a variable interest rate can satisfy...

              3. AG18 The criteria for classification as a held-to-maturity investment are met...

              4. AG19 A financial asset that is puttable (i.e. the holder has the...

              5. AG20 For most financial assets, fair value is a more appropriate...

              6. AG21 A disaster scenario that is only remotely possible, such as...

              7. AG22 Sales before maturity could satisfy the condition in paragraph 9 —...

              8. AG23 An entity does not have a demonstrated ability to hold...

              9. AG24 Circumstances other than those described in paragraphs AG16-AG23 can indicate...

              10. AG25 An entity assesses its intention and ability to hold its...

            7. Loans and receivables

              1. AG26 Any non-derivative financial asset with fixed or determinable payments (including...

          4. EMBEDDED DERIVATIVES (paragraphs 10-13)

            1. AG27 If a host contract has no stated or predetermined maturity...

            2. AG28 An embedded non-option derivative (such as an embedded forward or...

            3. AG29 Generally, multiple embedded derivatives in a single instrument are treated...

            4. AG30 The economic characteristics and risks of an embedded derivative are...

            5. AG31 An example of a hybrid instrument is a financial instrument...

            6. AG32 In the case of a puttable instrument that can be...

            7. AG33 The economic characteristics and risks of an embedded derivative are...

            8. Instruments containing embedded derivatives

              1. AG33A When an entity becomes a party to a hybrid (combined)...

              2. AG33B Such designation may be used whether paragraph 11 requires the embedded...

          5. RECOGNITION AND DERECOGNITION (paragraphs 14-42)

            1. Initial recognition (paragraph 14)

              1. AG34 As a consequence of the principle in paragraph 14, an entity...

              2. AG35 The following are examples of applying the principle in paragraph 14:...

            2. Derecognition of a financial asset (paragraphs 15-37)

              1. AG36 The following flow chart illustrates the evaluation of whether and...

              2. Arrangements under which an entity retains the contractual rights to...

                1. AG37 The situation described in paragraph 18(b) (when an entity retains the...

                2. AG38 In applying paragraph 19, the entity could be, for example, the...

              3. Evaluation of the transfer of risks and rewards of ownership...

                1. AG39 Examples of when an entity has transferred substantially all the...

                2. AG40 Examples of when an entity has retained substantially all the...

                3. AG41 If an entity determines that as a result of the...

              4. Evaluation of the transfer of control

                1. AG42 An entity has not retained control of a transferred asset...

                2. AG43 The transferee has the practical ability to sell the transferred...

                3. AG44 That the transferee is unlikely to sell the transferred asset...

              5. Transfers that qualify for derecognition

                1. AG45 An entity may retain the right to a part of...

                2. AG46 In estimating the fair values of the part that continues...

              6. Transfers that do not qualify for derecognition

                1. AG47 The following is an application of the principle outlined in...

              7. Continuing involvement in transferred assets

                1. AG48 The following are examples of how an entity measures a...

                2. All assets

                3. Assets measured at amortised cost

                4. Assets measured at fair value

              8. All transfers

                1. AG49 To the extent that a transfer of a financial asset...

                2. AG50 To the extent that a transfer of a financial asset...

              9. Examples

                1. AG51 The following examples illustrate the application of the derecognition principles...

                2. AG52 This paragraph illustrates the application of the continuing involvement approach...

            3. Regular way purchase or sale of a financial asset (paragraph 38)...

              1. AG53 A regular way purchase or sale of financial assets is...

              2. AG54 A contract that requires or permits net settlement of the...

              3. AG55 The trade date is the date that an entity commits...

              4. AG56 The settlement date is the date that an asset is...

            4. Derecognition of a financial liability (paragraphs 39-42)

              1. AG57 A financial liability (or part of it) is extinguished when...

              2. AG58 If an issuer of a debt instrument repurchases that instrument,...

              3. AG59 Payment to a third party, including a trust (sometimes called...

              4. AG60 If a debtor pays a third party to assume an...

              5. AG61 Although legal release, whether judicially or by the creditor, results...

              6. AG62 For the purpose of paragraph 40, the terms are substantially different...

              7. AG63 In some cases, a creditor releases a debtor from its...

          6. MEASUREMENT (paragraphs 43-70)

            1. Initial measurement of financial assets and financial liabilities (paragraph 43)

              1. AG64 The fair value of a financial instrument on initial recognition...

              2. AG65 If an entity originates a loan that bears an off-market...

            2. Subsequent measurement of financial assets (paragraphs 45 and 46)

              1. AG66 If a financial instrument that was previously recognised as a...

              2. AG67 The following example illustrates the accounting for transaction costs on...

              3. AG68 Instruments that are classified as loans and receivables are measured...

            3. Fair value measurement considerations (paragraphs 48-49)

              1. AG69 Underlying the definition of fair value is a presumption that...

              2. AG70 This standard uses the terms ‘bid price’ and ‘asking price’...

              3. Active market: quoted price

                1. AG71 A financial instrument is regarded as quoted in an active...

                2. AG72 The appropriate quoted market price for an asset held or...

                3. AG73 If a rate (rather than a price) is quoted in...

              4. No active market: valuation technique

                1. AG74 If the market for a financial instrument is not active,...

                2. AG75 The objective of using a valuation technique is to establish...

                3. AG76 Therefore, a valuation technique (a) incorporates all factors that market...

                4. AG76A The subsequent measurement of the financial asset or financial liability...

                5. AG77 The initial acquisition or origination of a financial asset or...

                6. AG78 The same information may not be available at each measurement...

                7. AG79 In applying discounted cash flow analysis, an entity uses one...

              5. No active market: equity instruments

                1. AG80 The fair value of investments in equity instruments that do...

                2. AG81 There are many situations in which the variability in the...

              6. Inputs to valuation techniques

                1. AG82 An appropriate technique for estimating the fair value of a...

            4. Gains and losses (paragraphs 55-57)

              1. AG83 An entity applies IAS 21 to financial assets and financial liabilities...

            5. Impairment and uncollectability of financial assets (paragraphs 58-70)

              1. Financial assets carried at amortised cost (paragraphs 63-65)

                1. AG84 Impairment of a financial asset carried at amortised cost is...

                2. AG85 The process for estimating impairment considers all credit exposures, not...

                3. AG86 The process for estimating the amount of an impairment loss...

                4. AG87 For the purpose of a collective evaluation of impairment, financial...

                5. AG88 Impairment losses recognised on a group basis represent an interim...

                6. AG89 Future cash flows in a group of financial assets that...

                7. AG90 As an example of applying paragraph AG89, an entity may...

                8. AG91 When using historical loss rates in estimating future cash flows,...

                9. AG92 Formula-based approaches or statistical methods may be used to determine...

              2. Interest income after impairment recognition

                1. AG93 Once a financial asset or a group of similar financial...

          7. HEDGING (paragraphs 71-102)

            1. Hedging instruments (paragraphs 72-77)

              1. Qualifying instruments (paragraphs 72 and 73)

                1. AG94 The potential loss on an option that an entity writes...

                2. AG95 A held-to-maturity investment carried at amortised cost may be designated...

                3. AG96 An investment in an unquoted equity instrument that is not...

                4. AG97 An entity's own equity instruments are not financial assets or...

            2. Hedged items (paragraphs 78-84)

              1. Qualifying items (paragraphs 78-80)

                1. AG98 A firm commitment to acquire a business in a business...

                2. AG99 An equity method investment cannot be a hedged item in...

                3. AG99A Paragraph 80 states that in consolidated financial statements the foreign currency...

                4. AG99B If a hedge of a forecast intragroup transaction qualifies for...

              2. Designation of financial items as hedged items (paragraphs 81 and 81A)...

                1. AG99C […]The entity may designate all of the cash flows of...

                2. AG99D In addition, if a fixed rate financial instrument is hedged...

              3. Designation of non-financial items as hedged items (paragraph 82)

                1. AG100 Changes in the price of an ingredient or component of...

              4. Designation of groups of items as hedged items (paragraphs 83 and...

                1. AG101 A hedge of an overall net position (e.g. the net...

              5. Hedge accounting (paragraphs 85-102)

                1. AG102 An example of a fair value hedge is a hedge...

                2. AG103 An example of a cash flow hedge is the use...

                3. AG104 A hedge of a firm commitment (e.g. a hedge of...

              6. Assessing hedge effectiveness

                1. AG105 A hedge is regarded as highly effective only if both...

                2. AG106 Effectiveness is assessed, at a minimum, at the time an...

                3. AG107 This standard does not specify a single method for assessing...

                4. AG107A […].

                5. AG108 If the principal terms of the hedging instrument and of...

                6. AG109 Sometimes the hedging instrument offsets only part of the hedged...

                7. AG110 To qualify for hedge accounting, the hedge must relate to...

                8. AG111 In the case of interest rate risk, hedge effectiveness may...

                9. AG112 In assessing the effectiveness of a hedge, an entity generally...

                10. AG113 If an entity does not meet hedge effectiveness criteria, the...

              7. Fair value hedge accounting for a portfolio hedge of interest...

                1. AG114 For a fair value hedge of interest rate risk associated...

                2. AG115 This approach is described in more detail below. The approach...

                3. AG116 The portfolio identified in paragraph AG114(a) could contain assets and...

                4. AG117 In applying paragraph AG114(b), the entity determines the expected repricing...

                5. AG118 As an example of the designation set out in paragraph...

                6. AG119 The entity also complies with the other designation and documentation...

                7. AG120 The hedging instrument referred to in paragraph AG114(e) may be...

                8. AG121 When the entity measures the change in the fair value...

                9. AG122 The standard does not specify the techniques used to determine...

                10. AG123 Paragraph 89A requires that if the hedged item for a particular...

                11. AG124 Paragraph AG114(i) notes that ineffectiveness arises to the extent that...

                12. AG125 Generally, the effectiveness of the hedge will be improved:

                13. AG126 An entity tests effectiveness periodically. […]

                14. AG127 When measuring effectiveness, the entity distinguishes revisions to the estimated...

                15. AG128 Items that were originally scheduled into a repricing time period...

                16. AG129 In addition, any amount relating to a particular time period...

                17. AG130 […].

                18. AG131 If the hedged amount for a repricing time period is...

                19. AG132 An entity may wish to apply the approach set out...

          8. TRANSITION (paragraphs 103-108b)

            1. AG133 An entity may have designated a forecast intragroup transaction as...

      29. INTERNATIONAL ACCOUNTING STANDARD 40

        Investment property

        1. OBJECTIVE

          1. 1 The objective of this standard is to prescribe the accounting...

        2. SCOPE

          1. 2 This standard shall be applied in the recognition, measurement and...

          2. 3 Among other things, this standard applies to the measurement in...

          3. 4 This standard does not apply to:

        3. DEFINITIONS

          1. 5 The following terms are used in this standard with the...

          2. 6 A property interest that is held by a lessee under...

          3. 7 Investment property is held to earn rentals or for capital...

          4. 8 The following are examples of investment property:

          5. 9 The following are examples of items that are not investment...

          6. 10 Some properties comprise a portion that is held to earn...

          7. 11 In some cases, an entity provides ancillary services to the...

          8. 12 In other cases, the services provided are significant. For example,...

          9. 13 It may be difficult to determine whether ancillary services are...

          10. 14 Judgement is needed to determine whether a property qualifies as...

          11. 15 In some cases, an entity owns property that is leased...

        4. RECOGNITION

          1. 16 Investment property shall be recognised as an asset when, and...

          2. 17 An entity evaluates under this recognition principle all its investment...

          3. 18 Under the recognition principle in paragraph 16, an entity does not...

          4. 19 Parts of investment properties may have been acquired through replacement....

        5. MEASUREMENT AT RECOGNITION

          1. 20 An investment property shall be measured initially at its cost....

          2. 21 The cost of a purchased investment property comprises its purchase...

          3. 22 The cost of a self-constructed investment property is its cost...

          4. 23 The cost of an investment property is not increased by:...

          5. 24 If payment for an investment property is deferred, its cost...

          6. 25 The initial cost of a property interest held under a...

          7. 26 Any premium paid for a lease is treated as part...

          8. 27 One or more investment properties may be acquired in exchange...

          9. 28 An entity determines whether an exchange transaction has commercial substance...

          10. 29 The fair value of an asset for which comparable market...

        6. MEASUREMENT AFTER RECOGNITION

          1. Accounting policy

            1. 30 With the exceptions noted in paragraphs 32A and 34, an entity...

            2. 31 IAS 8 Accounting policies, changes in accounting estimates and errors states...

            3. 32 This standard requires all entities to determine the fair value...

            4. 32A An entity may:

            5. 32B Some insurers and other entities operate an internal property fund...

            6. 32C If an entity chooses different models for the two categories...

          2. Fair value model

            1. 33 After initial recognition, an entity that chooses the fair value...

            2. 34 When a property interest held by a lessee under an...

            3. 35 A gain or loss arising from a change in the...

            4. 36 The fair value of investment property is the price at...

            5. 37 An entity determines fair value without any deduction for transaction...

            6. 38 The fair value of investment property shall reflect market conditions...

            7. 39 Fair value is time-specific as of a given date. Because...

            8. 40 The fair value of investment property reflects, among other things,...

            9. 41 Paragraph 25 specifies the basis for initial recognition of the cost...

            10. 42 The definition of fair value refers to ‘knowledgeable, willing parties’....

            11. 43 A willing seller is neither an over-eager nor a forced...

            12. 44 The definition of fair value refers to an arm's length...

            13. 45 The best evidence of fair value is given by current...

            14. 46 In the absence of current prices in an active market...

            15. 47 In some cases, the various sources listed in the previous...

            16. 48 In exceptional cases, there is clear evidence when an entity...

            17. 49 Fair value differs from value in use, as defined in...

            18. 50 In determining the fair value of investment property, an entity...

            19. 51 The fair value of investment property does not reflect future...

            20. 52 In some cases, an entity expects that the present value...

            21. Inability to determine fair value reliably

              1. 53 There is a rebuttable presumption that an entity can reliably...

              2. 54 In the exceptional cases when an entity is compelled, for...

              3. 55 If an entity has previously measured an investment property at...

          3. Cost model

            1. 56 After initial recognition, an entity that chooses the cost model...

        7. TRANSFERS

          1. 57 Transfers to, or from, investment property shall be made when,...

          2. 58 Paragraph 57(b) requires an entity to transfer a property from investment...

          3. 59 Paragraphs 60-65 apply to recognition and measurement issues that arise when...

          4. 60 For a transfer from investment property carried at fair value...

          5. 61 If an owner-occupied property becomes an investment property that will...

          6. 62 Up to the date when an owner-occupied property becomes an...

          7. 63 For a transfer from inventories to investment property that will...

          8. 64 The treatment of transfers from inventories to investment property that...

          9. 65 When an entity completes the construction or development of a...

        8. DISPOSALS

          1. 66 An investment property shall be derecognised (eliminated from the balance...

          2. 67 The disposal of an investment property may be achieved by...

          3. 68 If, in accordance with the recognition principle in paragraph 16, an...

          4. 69 Gains or losses arising from the retirement or disposal of...

          5. 70 The consideration receivable on disposal of an investment property is...

          6. 71 An entity applies IAS 37 or other standards, as appropriate, to...

          7. 72 Compensation from third parties for investment property that was impaired,...

          8. 73 Impairments or losses of investment property, related claims for or...

        9. DISCLOSURE

          1. Fair value model and cost model

            1. 74 The disclosures below apply in addition to those in IAS 17....

            2. 75 An entity shall disclose:

            3. Fair value model

              1. 76 In addition to the disclosures required by paragraph 75, an entity...

              2. 77 When a valuation obtained for investment property is adjusted significantly...

              3. 78 In the exceptional cases referred to in paragraph 53, when an...

            4. Cost model

              1. 79 In addition to the disclosures required by paragraph 75, an entity...

        10. TRANSITIONAL PROVISIONS

          1. Fair value model

            1. 80 An entity that has previously applied IAS 40 (2000) and elects...

            2. 81 This standard requires a treatment different from that required by...

            3. 82 When an entity first applies this standard, the adjustment to...

          2. Cost model

            1. 83 IAS 8 applies to any change in accounting policies that is...

            2. 84 The requirements of paragraphs 27-29 regarding the initial measurement of an...

        11. EFFECTIVE DATE

          1. 85 An entity shall apply this standard for annual periods beginning...

        12. WITHDRAWAL OF IAS 40 (2000)

          1. 86 This standard supersedes IAS 40 Investment property (issued in 2000).

      30. INTERNATIONAL ACCOUNTING STANDARD 41

        Agriculture

        1. OBJECTIVE

        2. SCOPE

          1. 1 This standard shall be applied to account for the following...

          2. 2 This standard does not apply to:

          3. 3 This standard is applied to agricultural produce, which is the...

          4. 4 The table below provides examples of biological assets, agricultural produce,...

        3. DEFINITIONS

          1. Agriculture-related definitions

            1. 5 The following terms are used in this standard with the...

            2. 6 Agricultural activity covers a diverse range of activities; for example,...

            3. 7 Biological transformation results in the following types of outcomes:

          2. General definitions

            1. 8 The following terms are used in this standard with the...

            2. 9 The fair value of an asset is based on its...

        4. RECOGNITION AND MEASUREMENT

          1. 10 An entity shall recognise a biological asset or agricultural produce...

          2. 11 In agricultural activity, control may be evidenced by, for example,...

          3. 12 A biological asset shall be measured on initial recognition and...

          4. 13 Agricultural produce harvested from an entity's biological assets shall be...

          5. 14 Point-of-sale costs include commissions to brokers and dealers, levies by...

          6. 15 The determination of fair value for a biological asset or...

          7. 16 Entities often enter into contracts to sell their biological assets...

          8. 17 If an active market exists for a biological asset or...

          9. 18 If an active market does not exist, an entity uses...

          10. 19 In some cases, the information sources listed in paragraph 18 may...

          11. 20 In some circumstances, market-determined prices or values may not be...

          12. 21 The objective of a calculation of the present value of...

          13. 22 An entity does not include any cash flows for financing...

          14. 23 In agreeing an arm's length transaction price, knowledgeable, willing buyers...

          15. 24 Cost may sometimes approximate fair value, particularly when:

          16. 25 Biological assets are often physically attached to land (for example,...

          17. Gains and losses

            1. 26 A gain or loss arising on initial recognition of a...

            2. 27 A loss may arise on initial recognition of a biological...

            3. 28 A gain or loss arising on initial recognition of agricultural...

            4. 29 A gain or loss may arise on initial recognition of...

          18. Inability to measure fair value reliably

            1. 30 There is a presumption that fair value can be measured...

            2. 31 The presumption in paragraph 30 can be rebutted only on initial...

            3. 32 In all cases, an entity measures agricultural produce at the...

            4. 33 In determining cost, accumulated depreciation and accumulated impairment losses, an...

        5. GOVERNMENT GRANTS

          1. 34 An unconditional government grant related to a biological asset measured...

          2. 35 If a government grant related to a biological asset measured...

          3. 36 Terms and conditions of government grants vary. For example, a...

          4. 37 If a government grant relates to a biological asset measured...

          5. 38 This standard requires a different treatment from IAS 20, if a...

        6. DISCLOSURE

          1. 39 [Deleted]

          2. General

            1. 40 An entity shall disclose the aggregate gain or loss arising...

            2. 41 An entity shall provide a description of each group of...

            3. 42 The disclosure required by paragraph 41 may take the form of...

            4. 43 An entity is encouraged to provide a quantified description of...

            5. 44 Consumable biological assets are those that are to be harvested...

            6. 45 Biological assets may be classified either as mature biological assets...

            7. 46 If not disclosed elsewhere in information published with the financial...

            8. 47 An entity shall disclose the methods and significant assumptions applied...

            9. 48 An entity shall disclose the fair value less estimated point-of-sale...

            10. 49 An entity shall disclose:

            11. 50 An entity shall present a reconciliation of changes in the...

            12. 51 The fair value less estimated point-of-sale costs of a biological...

            13. 52 Biological transformation results in a number of types of physical...

            14. 53 Agricultural activity is often exposed to climatic, disease and other...

          3. Additional disclosures for biological assets where fair value cannot be...

            1. 54 If an entity measures biological assets at their cost less...

            2. 55 If, during the current period, an entity measures biological assets...

            3. 56 If the fair value of biological assets previously measured at...

          4. Government grants

            1. 57 An entity shall disclose the following related to agricultural activity...

        7. EFFECTIVE DATE AND TRANSITION

          1. 58 This standard becomes operative for annual financial statements covering periods...

          2. 59 This standard does not establish any specific transitional provisions. The adoption...

      31. INTERNATIONAL FINANCIAL REPORTING STANDARD 1

        First-time adoption of international financial reporting standards

        1. OBJECTIVE

          1. 1 The objective of this IFRS is to ensure that an entity's...

        2. SCOPE

          1. 2 An entity shall apply this IFRS in:

          2. 3 An entity's first IFRS financial statements are the first annual financial...

          3. 4 This IFRS applies when an entity first adopts IFRSs. It does...

          4. 5 This IFRS does not apply to changes in accounting policies made...

        3. RECOGNITION AND MEASUREMENT

          1. Opening IFRS balance sheet

            1. 6 An entity shall prepare an opening IFRS balance sheet at the...

          2. Accounting policies

            1. 7 An entity shall use the same accounting policies in its...

            2. 8 An entity shall not apply different versions of IFRSs that...

              1. Example: Consistent application of latest version of IFRSs

                1. Background

                2. Application of requirements

            3. 9 The transitional provisions in other IFRSs apply to changes in...

            4. 10 Except as described in paragraphs 13-34B and 36A-36C, an entity shall,...

            5. 11 The accounting policies that an entity uses in its opening...

            6. 12 This IFRS establishes two categories of exceptions to the principle that...

          3. Exemptions from other IFRSs

            1. 13 An entity may elect to use one or more of...

            2. 14 Some exemptions below refer to fair value. IFRS 3 Business combinations...

            3. Business combinations

              1. 15 An entity shall apply the requirements in Appendix B to...

            4. Fair value or revaluation as deemed cost

              1. 16 An entity may elect to measure an item of property,...

              2. 17 A first-time adopter may elect to use a previous GAAP...

              3. 18 The elections in paragraphs 16 and 17 are also available for:...

              4. 19 A first-time adopter may have established a deemed cost under...

            5. Employee benefits

              1. 20 Under IAS 19 Employee benefits, an entity may elect to use...

              2. 20A An entity may disclose the amounts required by paragraph 120A(p) of...

            6. Cumulative translation differences

              1. 21 IAS 21 The effects of changes in foreign exchange rates...

              2. 22 However, a first-time adopter need not comply with these requirements...

            7. Compound financial instruments

              1. 23 IAS 32 Financial instruments: presentation requires an entity to split...

            8. Assets and liabilities of subsidiaries, associates and joint ventures

              1. 24 If a subsidiary becomes a first-time adopter later than its...

              2. 25 However, if an entity becomes a first-time adopter later than...

            9. Designation of previously recognised financial instruments

              1. 25A IAS 39 Financial instruments: recognition and measurement permits a financial asset...

            10. Share-based payment transactions

              1. 25B A first-time adopter is encouraged, but not required, to apply...

              2. 25C A first-time adopter is encouraged, but not required, to apply...

            11. Insurance contracts

              1. 25D A first-time adopter may apply the transitional provisions in IFRS 4...

            12. Changes in existing decommissioning, restoration and similar liabilities included in...

              1. 25E IFRIC 1 Changes in existing decommissioning, restoration and similar liabilities...

            13. Leases

              1. 25F A first-time adopter may apply the transitional provisions in IFRIC...

            14. Fair value measurement of financial assets or financial liabilities

              1. 25G Notwithstanding the requirements of paragraphs 7 and 9, an entity may...

          4. Exceptions to retrospective application of other IFRSs

            1. 26 This IFRS prohibits retrospective application of some aspects of other IFRSs...

            2. Derecognition of financial assets and financial liabilities

              1. 27 Except as permitted by paragraph 27A, a first-time adopter shall apply...

              2. 27A Notwithstanding paragraph 27, an entity may apply the derecognition requirements in...

            3. Hedge accounting

              1. 28 As required by IAS 39, at the date of transition to...

              2. 29 An entity shall not reflect in its opening IFRS balance sheet...

              3. 30 If, before the date of transition to IFRSs, an entity...

            4. Estimates

              1. 31 An entity's estimates under IFRSs at the date of transition...

              2. 32 An entity may receive information after the date of transition...

              3. 33 An entity may need to make estimates under IFRSs at...

              4. 34 Paragraphs 31-33 apply to the opening IFRS balance sheet. They also apply to...

            5. Assets classified as held for sale and discontinued operations

              1. 34A IFRS 5 Non-current assets held for sale and discontinued operations...

              2. 34B An entity with a date of transition to IFRSs before...

        4. PRESENTATION AND DISCLOSURE

          1. 35 Except as described in paragraphs 36A-37, this IFRS does not provide exemptions...

          2. Comparative information

            1. 36 To comply with IAS 1, an entity's first IFRS financial statements shall...

            2. Exemption from the requirement to restate comparative information for IAS 39...

              1. 36A In its first IFRS financial statements, an entity that adopts IFRSs...

            3. Exemption from the requirement to present comparative information for IFRS 6...

              1. 36B An entity that adopts IFRSs before 1 January 2006 and chooses...

            4. Exemption from the requirement to provide comparative disclosures for IFRS...

              1. 36C An entity that adopts IFRSs before 1 January 2006 and chooses...

            5. Non-IFRS comparative information and historical summaries

              1. 37 Some entities present historical summaries of selected data for periods...

          3. Explanation of transition to IFRSs

            1. 38 An entity shall explain how the transition from previous GAAP...

            2. Reconciliations

              1. 39 To comply with paragraph 38, an entity's first IFRS financial statements shall...

              2. 40 The reconciliations required by paragraph 39(a) and (b) shall give sufficient...

              3. 41 If an entity becomes aware of errors made under previous...

              4. 42 IAS 8 does not deal with changes in accounting policies...

              5. 43 If an entity did not present financial statements for previous...

            3. Designation of financial assets or financial liabilities

              1. 43A An entity is permitted to designate a previously recognised financial...

            4. Use of fair value as deemed cost

              1. 44 If an entity uses fair value in its opening IFRS balance...

            5. Interim financial reports

              1. 45 To comply with paragraph 38, if an entity presents an interim...

              2. 46 IAS 34 requires minimum disclosures, which are based on the...

        5. EFFECTIVE DATE

          1. 47 An entity shall apply this IFRS if its first IFRS financial statements...

          2. 47A An entity shall apply the amendments in paragraphs 13(j) and 25E...

          3. 47B An entity shall apply the amendments in paragraphs 13(k) and 25F...

          4. 47C An entity shall apply the amendments in paragraph 36B for annual...

          5. 47D An entity shall apply the amendments in paragraph 20A for annual...

          6. 47E An entity shall apply the amendments in paragraphs 13(l) and 25G...

        6. Appendix A

          Defined terms

        7. Appendix B

          Business combinations

          2. B1 A first-time adopter may elect not to apply IFRS 3...

          3. B1A An entity need not apply IAS 21 The effects of changes...

          4. B1B An entity may apply IAS 21 retrospectively to fair value adjustments...

          5. B2 If a first-time adopter does not apply IFRS 3 retrospectively to a...

          6. B3 The exemption for past business combinations also applies to past...

      32. INTERNATIONAL FINANCIAL REPORTING STANDARD 2

        Share-based payment

        1. OBJECTIVE

          1. 1 The objective of this IFRS is to specify the financial...

        2. SCOPE

          1. 2 An entity shall apply this IFRS in accounting for all...

          2. 3 For the purposes of this IFRS, transfers of an entity's...

          3. 4 For the purposes of this IFRS, a transaction with an...

          4. 5 As noted in paragraph 2, this IFRS applies to share-based payment...

          5. 6 This IFRS does not apply to share-based payment transactions in...

        3. RECOGNITION

          1. 7 An entity shall recognise the goods or services received or...

          2. 8 When the goods or services received or acquired in a...

          3. 9 Typically, an expense arises from the consumption of goods or...

        4. EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS

          1. Overview

            1. 10 For equity-settled share-based payment transactions, the entity shall measure the...

            2. 11 To apply the requirements of paragraph 10 to transactions with employees...

            3. 12 Typically, shares, share options or other equity instruments are granted...

            4. 13 To apply the requirements of paragraph 10 to transactions with parties...

          2. Transactions in which services are received

            1. 14 If the equity instruments granted vest immediately, the counterparty is...

            2. 15 If the equity instruments granted do not vest until the...

          3. Transactions measured by reference to the fair value of the...

            1. Determining the fair value of equity instruments granted

              1. 16 For transactions measured by reference to the fair value of...

              2. 17 If market prices are not available, the entity shall estimate...

              3. 18 Appendix B contains further guidance on the measurement of the...

            2. Treatment of vesting conditions

              1. 19 A grant of equity instruments might be conditional upon satisfying...

              2. 20 To apply the requirements of paragraph 19, the entity shall recognise...

              3. 21 Market conditions, such as a target share price upon which...

            3. Treatment of a reload feature

              1. 22 For options with a reload feature, the reload feature shall...

            4. After vesting date

              1. 23 Having recognised the goods or services received in accordance with...

            5. If the fair value of the equity instruments cannot be...

              1. 24 The requirements in paragraphs 16-23 apply when the entity is required...

              2. 25 If an entity applies paragraph 24, it is not necessary to...

          4. Modifications to the terms and conditions on which equity instruments...

            1. 26 An entity might modify the terms and conditions on which...

            2. 27 The entity shall recognise, as a minimum, the services received...

            3. 28 If the entity cancels or settles a grant of equity...

            4. 29 If an entity repurchases vested equity instruments, the payment made...

        5. CASH-SETTLED SHARE-BASED PAYMENT TRANSACTIONS

          1. 30 For cash-settled share-based payment transactions, the entity shall measure the...

          2. 31 For example, an entity might grant share appreciation rights to...

          3. 32 The entity shall recognise the services received, and a liability...

          4. 33 The liability shall be measured, initially and at each reporting...

        6. SHARE-BASED PAYMENT TRANSACTIONS WITH CASH ALTERNATIVES

          1. 34 For share-based payment transactions in which the terms of the...

          2. Share-based payment transactions in which the terms of the arrangement...

            1. 35 If an entity has granted the counterparty the right to...

            2. 36 For other transactions, including transactions with employees, the entity shall...

            3. 37 To apply paragraph 36, the entity shall first measure the fair...

            4. 38 The entity shall account separately for the goods or services...

            5. 39 At the date of settlement, the entity shall remeasure the...

            6. 40 If the entity pays in cash on settlement rather than...

          3. Share-based payment transactions in which the terms of the arrangement...

            1. 41 For a share-based payment transaction in which the terms of...

            2. 42 If the entity has a present obligation to settle in...

            3. 43 If no such obligation exists, the entity shall account for...

        7. DISCLOSURES

          1. 44 An entity shall disclose information that enables users of the...

          2. 45 To give effect to the principle in paragraph 44, the entity...

          3. 46 An entity shall disclose information that enables users of the...

          4. 47 If the entity has measured the fair value of goods...

          5. 48 If the entity has measured directly the fair value of...

          6. 49 If the entity has rebutted the presumption in paragraph 13, it...

          7. 50 An entity shall disclose information that enables users of the...

          8. 51 To give effect to the principle in paragraph 50, the entity...

          9. 52 If the information required to be disclosed by this IFRS...

        8. TRANSITIONAL PROVISIONS

          1. 53 For equity-settled share-based payment transactions, the entity shall apply this...

          2. 54 The entity is encouraged, but not required, to apply this...

          3. 55 For all grants of equity instruments to which this IFRS...

          4. 56 For all grants of equity instruments to which this IFRS...

          5. 57 If, after the IFRS becomes effective, an entity modifies the...

          6. 58 For liabilities arising from share-based payment transactions existing at the...

          7. 59 The entity is encouraged, but not required, to apply retrospectively...

        9. EFFECTIVE DATE

          1. 60 An entity shall apply this IFRS for annual periods beginning...

        10. Appendix A

          Defined terms

        11. Appendix B

          Application Guidance

          2. Estimating the fair value of equity instruments granted

            1. B1 Paragraphs B2-B41 of this appendix discuss measurement of the fair...

            2. Shares

              1. B2 For shares granted to employees, the fair value of the...

              2. B3 For example, if the employee is not entitled to receive...

            3. Share options

              1. B4 For share options granted to employees, in many cases market...

              2. B5 The entity shall consider factors that knowledgeable, willing market participants...

              3. B6 All option pricing models take into account, as a minimum,...

              4. B7 Other factors that knowledgeable, willing market participants would consider in...

              5. B8 For example, a share option granted to an employee typically...

              6. B9 Similarly, another factor common to employee share options is the...

              7. B10 Factors that a knowledgeable, willing market participant would not consider...

            4. Inputs to option pricing models

              1. B11 In estimating the expected volatility of and dividends on the...

              2. B12 Often, there is likely to be a range of reasonable...

              3. B13 Expectations about the future are generally based on experience, modified...

              4. B14 In other circumstances, historical information may not be available. For...

              5. B15 In summary, an entity should not simply base estimates of...

            5. Expected early exercise

              1. B16 Employees often exercise share options early, for a variety of...

              2. B17 The means by which the effects of expected early exercise...

              3. B18 Factors to consider in estimating early exercise include:

              4. B19 As noted in paragraph B17, the effects of early exercise...

              5. B20 Separating an option grant into groups for employees with relatively...

              6. B21 Similar considerations apply when using a binomial or similar model....

            6. Expected volatility

              1. B22 Expected volatility is a measure of the amount by which...

              2. B23 The rate of return (which may be positive or negative)...

              3. B24 The expected annualised volatility of a share is the range...

              4. B25 Factors to consider in estimating expected volatility include:

              5. Newly listed entities

                1. B26 As noted in paragraph B25, an entity should consider historical...

              6. Unlisted entities

                1. B27 An unlisted entity will not have historical information to consider...

                2. B28 In some cases, an unlisted entity that regularly issues options...

                3. B29 Alternatively, the entity could consider the historical or implied volatility...

                4. B30 If the entity has not based its estimate of the...

            7. Expected dividends

              1. B31 Whether expected dividends should be taken into account when measuring...

              2. B32 For example, if employees were granted options and are entitled...

              3. B33 Similarly, when the grant date fair value of shares granted...

              4. B34 Conversely, if the employees are not entitled to dividends or...

              5. B35 Option pricing models generally call for expected dividend yield. However,...

              6. B36 Generally, the assumption about expected dividends should be based on...

            8. Risk-free interest rate

              1. B37 Typically, the risk-free interest rate is the implied yield currently...

            9. Capital structure effects

              1. B38 Typically, third parties, not the entity, write traded share options....

              2. B39 In contrast, if share options are written by the entity,...

              3. B40 Whether this has a significant effect on the value of...

              4. B41 However, the entity should consider whether the possible dilutive effect...

          3. Modifications to equity-settled share-based payment arrangements

            1. B42 Paragraph 27 requires that, irrespective of any modifications to the terms...

            2. B43 To apply the requirements of paragraph 27:

            3. B44 Furthermore, if the entity modifies the terms or conditions of...

      33. INTERNATIONAL FINANCIAL REPORTING STANDARD 3

        Business combinations

        1. OBJECTIVE

          1. 1 The objective of this IFRS is to specify the financial...

        2. SCOPE

          1. 2 Except as described in paragraph 3, entities shall apply this IFRS...

          2. 3 This IFRS does not apply to:

          3. Identifying a business combination

            1. 4 A business combination is the bringing together of separate entities...

            2. 5 A business combination may be structured in a variety of...

            3. 6 A business combination may result in a parent-subsidiary relationship in...

            4. 7 A business combination may involve the purchase of the net...

            5. 8 Included within the definition of a business combination, and therefore...

            6. 9 This IFRS does not specify the accounting by venturers for...

          4. Business combinations involving entities under common control

            1. 10 A business combination involving entities or businesses under common control...

            2. 11 A group of individuals shall be regarded as controlling an...

            3. 12 An entity can be controlled by an individual, or by...

            4. 13 The extent of minority interests in each of the combining...

        3. METHOD OF ACCOUNTING

          1. 14 All business combinations shall be accounted for by applying the...

          2. 15 The purchase method views a business combination from the perspective...

        4. APPLICATION OF THE PURCHASE METHOD

          1. 16 Applying the purchase method involves the following steps:

          2. Identifying the acquirer

            1. 17 An acquirer shall be identified for all business combinations. The...

            2. 18 Because the purchase method views a business combination from the...

            3. 19 Control is the power to govern the financial and operating...

            4. 20 Although sometimes it may be difficult to identify an acquirer,...

            5. 21 In a business combination effected through an exchange of equity...

            6. 22 When a new entity is formed to issue equity instruments...

            7. 23 Similarly, when a business combination involves more than two combining...

          3. Cost of a business combination

            1. 24 The acquirer shall measure the cost of a business combination...

            2. 25 The acquisition date is the date on which the acquirer...

            3. 26 Assets given and liabilities incurred or assumed by the acquirer...

            4. 27 The published price at the date of exchange of a...

            5. 28 The cost of a business combination includes liabilities incurred or...

            6. 29 The cost of a business combination includes any costs directly...

            7. 30 The costs of arranging and issuing financial liabilities are an...

            8. 31 Similarly, the costs of issuing equity instruments are an integral...

            9. Adjustments to the cost of a business combination contingent on...

              1. 32 When a business combination agreement provides for an adjustment to...

              2. 33 A business combination agreement may allow for adjustments to the...

              3. 34 However, when a business combination agreement provides for such an...

              4. 35 In some circumstances, the acquirer may be required to make...

          4. Allocating the cost of a business combination to the assets...

            1. 36 The acquirer shall, at the acquisition date, allocate the cost...

            2. 37 The acquirer shall recognise separately the acquiree's identifiable assets, liabilities...

            3. 38 The acquirer's income statement shall incorporate the acquiree's profits and...

            4. 39 Application of the purchase method starts from the acquisition date,...

            5. 40 Because the acquirer recognises the acquiree's identifiable assets, liabilities and...

            6. Acquiree's identifiable assets and liabilities

              1. 41 In accordance with paragraph 36, the acquirer recognises separately as part...

              2. 42 A payment that an entity is contractually required to make,...

              3. 43 However, an acquiree's restructuring plan whose execution is conditional upon...

              4. 44 The identifiable assets and liabilities that are recognised in accordance...

            7. Acquiree's intangible assets

              1. 45 In accordance with paragraph 37, the acquirer recognises separately an intangible...

              2. 46 A non-monetary asset without physical substance must be identifiable to meet...

            8. Acquiree's contingent liabilities

              1. 47 Paragraph 37 specifies that the acquirer recognises separately a contingent liability...

              2. 48 After their initial recognition, the acquirer shall measure contingent liabilities...

              3. 49 The requirement in paragraph 48 does not apply to contracts accounted...

              4. 50 Contingent liabilities recognised separately as part of allocating the cost...

            9. Goodwill

              1. 51 The acquirer shall, at the acquisition date:

              2. 52 Goodwill acquired in a business combination represents a payment made...

              3. 53 To the extent that the acquiree's identifiable assets, liabilities or...

              4. 54 After initial recognition, the acquirer shall measure goodwill acquired in...

              5. 55 Goodwill acquired in a business combination shall not be amortised....

            10. Excess of acquirer's interest in the net fair value of...

              1. 56 If the acquirer's interest in the net fair value of...

              2. 57 A gain recognised in accordance with paragraph 56 could comprise one...

            11. Business combination achieved in stages

              1. 58 A business combination may involve more than one exchange transaction,...

              2. 59 When a business combination involves more than one exchange transaction,...

              3. 60 Before qualifying as a business combination, a transaction may qualify...

          5. Initial accounting determined provisionally

            1. 61 The initial accounting for a business combination involves identifying and...

            2. 62 If the initial accounting for a business combination can be...

            3. Adjustments after the initial accounting is complete

              1. 63 Except as outlined in paragraphs 33, 34 and 65, adjustments to...

              2. 64 IAS 8 requires an entity to account for an error correction...

            4. Recognition of deferred tax assets after the initial accounting is...

              1. 65 If the potential benefit of the acquiree's income tax loss...

        5. DISCLOSURE

          1. 66 An acquirer shall disclose information that enables users of its...

          2. 67 To give effect to the principle in paragraph 66(a), the acquirer...

          3. 68 The information required to be disclosed by paragraph 67 shall be...

          4. 69 If the initial accounting for a business combination that was...

          5. 70 To give effect to the principle in paragraph 66(a), the acquirer...

          6. 71 To give effect to the principle in paragraph 66(b), the acquirer...

          7. 72 An acquirer shall disclose information that enables users of its...

          8. 73 To give effect to the principle in paragraph 72, the acquirer...

          9. 74 An entity shall disclose information that enables users of its...

          10. 75 To give effect to the principle in paragraph 74, the entity...

          11. 76 The entity discloses information about the recoverable amount and impairment...

          12. 77 If in any situation the information required to be disclosed...

        6. TRANSITIONAL PROVISIONS AND EFFECTIVE DATE

          1. 78 Except as provided in paragraph 85, this IFRS shall apply to...

          2. Previously recognised goodwill

            1. 79 An entity shall apply this IFRS prospectively, from the beginning...

            2. 80 If an entity previously recognised goodwill as a deduction from...

          3. Previously recognised negative goodwill

            1. 81 The carrying amount of negative goodwill at the beginning of...

          4. Previously recognised intangible assets

            1. 82 The carrying amount of an item classified as an intangible...

          5. Equity accounted investments

            1. 83 For investments accounted for by applying the equity method and...

            2. 84 For investments accounted for by applying the equity method and...

          6. Limited retrospective application

            1. 85 An entity is permitted to apply the requirements of this...

        7. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 86 This IFRS supersedes IAS 22 Business combinations (as issued in 1998)....

          2. 87 This IFRS supersedes the following interpretations:

        8. Appendix A

          Defined terms

        9. Appendix B

          Application supplement

          2. Reverse acquisitions

            1. B1 As noted in paragraph 21, in some business combinations, commonly referred...

            2. B2 An entity shall apply the guidance in paragraphs B3-B15 when...

            3. B3 Reverse acquisition accounting determines the allocation of the cost of...

            4. Cost of the business combination

              1. B4 When equity instruments are issued as part of the cost...

              2. B5 In a reverse acquisition, the cost of the business combination...

              3. B6 If the fair value of the equity instruments of the...

            5. Preparation and presentation of consolidated financial statements

              1. B7 Consolidated financial statements prepared following a reverse acquisition shall be...

              2. B8 Reverse acquisition accounting applies only in the consolidated financial statements....

              3. B9 Consolidated financial statements prepared following a reverse acquisition shall reflect...

            6. Minority interest

              1. B10 In some reverse acquisitions, some of the owners of the...

              2. B11 Because the assets and liabilities of the legal subsidiary are...

            7. Earnings per share

              1. B12 As noted in paragraph B7(c), the equity structure appearing in...

              2. B13 For the purpose of calculating the weighted average number of...

              3. B14 The basic earnings per share disclosed for each comparative period...

              4. B15 The calculations outlined in paragraphs B13 and B14 assume that...

          3. Allocating the cost of a business combination

            1. B16 This IFRS requires an acquirer to recognise the acquiree's identifiable...

            2. B17 Some of the above guidance requires fair values to be...

      34. INTERNATIONAL FINANCIAL REPORTING STANDARD 4

        Insurance contracts

        1. OBJECTIVE

          1. 1 The objective of this IFRS is to specify the financial...

        2. SCOPE

          1. 2 An entity shall apply this IFRS to:

          2. 3 This IFRS does not address other aspects of accounting by...

          3. 4 An entity shall not apply this IFRS to:

          4. 5 For ease of reference, this IFRS describes any entity that...

          5. 6 A reinsurance contract is a type of insurance contract. Accordingly,...

          6. Embedded derivatives

            1. 7 IAS 39 requires an entity to separate some embedded derivatives from...

            2. 8 As an exception to the requirement in IAS 39, an insurer...

            3. 9 Paragraph 8 applies equally to options to surrender a financial instrument...

          7. Unbundling of deposit components

            1. 10 Some insurance contracts contain both an insurance component and a...

            2. 11 The following is an example of a case when an...

            3. 12 To unbundle a contract, an insurer shall:

        3. RECOGNITION AND MEASUREMENT

          1. Temporary exemption from some other IFRSs

            1. 13 Paragraphs 10-12 of IAS 8 Accounting policies, changes in accounting estimates and...

            2. 14 Nevertheless, this IFRS does not exempt an insurer from some...

            3. Liability adequacy test

              1. 15 An insurer shall assess at each reporting date whether its...

              2. 16 If an insurer applies a liability adequacy test that meets...

              3. 17 If an insurer's accounting policies do not require a liability...

              4. 18 If an insurer's liability adequacy test meets the minimum requirements...

              5. 19 The amount described in paragraph 17(b) (i.e. the result of applying IAS 37)...

            4. Impairment of reinsurance assets

              1. 20 If a cedant's reinsurance asset is impaired, the cedant shall...

          2. Changes in accounting policies

            1. 21 Paragraphs 22-30 apply both to changes made by an insurer that...

            2. 22 An insurer may change its accounting policies for insurance contracts...

            3. 23 To justify changing its accounting policies for insurance contracts, an...

            4. Current market interest rates

              1. 24 An insurer is permitted, but not required, to change its...

            5. Continuation of existing practices

              1. 25 An insurer may continue the following practices, but the introduction...

            6. Prudence

              1. 26 An insurer need not change its accounting policies for insurance...

            7. Future investment margins

              1. 27 An insurer need not change its accounting policies for insurance...

              2. 28 An insurer may overcome the rebuttable presumption described in paragraph 27...

              3. 29 In some measurement approaches, the discount rate is used to...

            8. Shadow accounting

              1. 30 In some accounting models, realised gains or losses on an...

          3. Insurance contracts acquired in a business combination or portfolio transfer...

            1. 31 To comply with IFRS 3, an insurer shall, at the acquisition...

            2. 32 An insurer acquiring a portfolio of insurance contracts may use...

            3. 33 The intangible assets described in paragraphs 31 and 32 are excluded...

          4. Discretionary participation features

            1. Discretionary participation features in insurance contracts

              1. 34 Some insurance contracts contain a discretionary participation feature as well...

            2. Discretionary participation features in financial instruments

              1. 35 The requirements in paragraph 34 also apply to a financial instrument...

        4. DISCLOSURE

          1. Explanation of recognised amounts

            1. 36 An insurer shall disclose information that identifies and explains the...

            2. 37 To comply with paragraph 36, an insurer shall disclose:

          2. Nature and extent of risks arising from insurance contracts

            1. 38 An insurer shall disclose information that enables users of its...

            2. 39 To comply with paragraph 38, an insurer shall disclose:

            3. 39A To comply with paragraph 39(c)(i), an insurer shall disclose either (a)...

        5. EFFECTIVE DATE AND TRANSITION

          1. 40 The transitional provisions in paragraphs 41-45 apply both to an entity...

          2. 41 An entity shall apply this IFRS for annual periods beginning...

          3. 41A Financial guarantee contracts (amendments to IAS 39 and IFRS 4), issued in...

          4. Disclosure

            1. 42 An entity need not apply the disclosure requirements in this...

            2. 43 If it is impracticable to apply a particular requirement of...

            3. 44 In applying paragraph 39(c)(iii), an entity need not disclose information about...

          5. Redesignation of financial assets

            1. 45 When an insurer changes its accounting policies for insurance liabilities,...

        6. Appendix A

          Defined terms

        7. Appendix B

          Definition of an insurance contract

          2. B1 This appendix gives guidance on the definition of an insurance...

          3. Uncertain future event

            1. B2 Uncertainty (or risk) is the essence of an insurance contract....

            2. B3 In some insurance contracts, the insured event is the discovery...

            3. B4 Some insurance contracts cover events that have already occurred, but...

          4. Payments in kind

            1. B5 Some insurance contracts require or permit payments to be made...

            2. B6 Some fixed-fee service contracts in which the level of service...

            3. B7 Applying the IFRS to the contracts described in paragraph B6...

          5. Distinction between insurance risk and other risks

            1. B8 The definition of an insurance contract refers to insurance risk,...

            2. B9 The definition of financial risk in Appendix A includes a...

            3. B10 Some contracts expose the issuer to financial risk, in addition...

            4. B11 Under some contracts, an insured event triggers the payment of...

            5. B12 The definition of insurance risk refers to risk that the...

            6. B13 The definition of an insurance contract refers to an adverse...

            7. B14 Some contracts require a payment if a specified uncertain event...

            8. B15 Lapse or persistency risk (i.e. the risk that the counterparty will...

            9. B16 Therefore, a contract that exposes the issuer to lapse risk,...

            10. B17 An insurer can accept significant insurance risk from the policyholder...

          6. Examples of insurance contracts

            1. B18 The following are examples of contracts that are insurance contracts,...

            2. B19 The following are examples of items that are not insurance...

            3. B20 If the contracts described in paragraph B19 create financial assets...

            4. B21 If the contracts described in paragraph B19 do not create...

          7. Significant insurance risk

            1. B22 A contract is an insurance contract only if it transfers...

            2. B23 Insurance risk is significant if, and only if, an insured...

            3. B24 The additional benefits described in paragraph B23 refer to amounts...

            4. B25 An insurer shall assess the significance of insurance risk contract...

            5. B26 It follows from paragraphs B23-B25 that if a contract pays...

            6. B27 Paragraph B23 refers to additional benefits. These additional benefits could...

            7. B28 If an insurance contract is unbundled into a deposit component...

          8. Changes in the level of insurance risk

            1. B29 Some contracts do not transfer any insurance risk to the...

            2. B30 A contract that qualifies as an insurance contract remains an...

      35. INTERNATIONAL FINANCIAL REPORTING STANDARD 5

        Non-current assets held for sale and discontinued operations

        1. OBJECTIVE

          1. 1 The objective of this IFRS is to specify the accounting...

        2. SCOPE

          1. 2 The classification and presentation requirements of this IFRS apply to...

          2. 3 Assets classified as non-current in accordance with IAS 1 Presentation of...

          3. 4 Sometimes an entity disposes of a group of assets, possibly...

          4. 5 The measurement provisions of this IFRS do not apply to...

        3. CLASSIFICATION OF NON-CURRENT ASSETS (OR DISPOSAL GROUPS) AS HELD FOR SALE...

          1. 6 An entity shall classify a non-current asset (or disposal group)...

          2. 7 For this to be the case, the asset (or disposal...

          3. 8 For the sale to be highly probable, the appropriate level...

          4. 9 Events or circumstances may extend the period to complete the...

          5. 10 Sale transactions include exchanges of non-current assets for other non-current...

          6. 11 When an entity acquires a non-current asset (or disposal group)...

          7. 12 If the criteria in paragraphs 7 and 8 are met after...

          8. Non-current assets that are to be abandoned

            1. 13 An entity shall not classify as held for sale a...

            2. 14 An entity shall not account for a non-current asset that...

        4. MEASUREMENT OF NON-CURRENT ASSETS (OR DISPOSAL GROUPS) CLASSIFIED AS HELD FOR...

          1. Measurement of a non-current asset (or disposal group)

            1. 15 An entity shall measure a non-current asset (or disposal group)...

            2. 16 If a newly acquired asset (or disposal group) meets the...

            3. 17 When the sale is expected to occur beyond one year,...

            4. 18 Immediately before the initial classification of the asset (or disposal...

            5. 19 On subsequent remeasurement of a disposal group, the carrying amounts...

          2. Recognition of impairment losses and reversals

            1. 20 An entity shall recognise an impairment loss for any initial...

            2. 21 An entity shall recognise a gain for any subsequent increase...

            3. 22 An entity shall recognise a gain for any subsequent increase...

            4. 23 The impairment loss (or any subsequent gain) recognised for a...

            5. 24 A gain or loss not previously recognised by the date of...

            6. 25 An entity shall not depreciate (or amortise) a non-current asset...

          3. Changes to a plan of sale

            1. 26 If an entity has classified an asset (or disposal group)...

            2. 27 The entity shall measure a non-current asset that ceases to...

            3. 28 The entity shall include any required adjustment to the carrying...

            4. 29 If an entity removes an individual asset or liability from...

        5. PRESENTATION AND DISCLOSURE

          1. 30 An entity shall present and disclose information that enables users...

          2. Presenting discontinued operations

            1. 31 A component of an entity comprises operations and cash flows...

            2. 32 A discontinued operation is a component of an entity that...

            3. 33 An entity shall disclose:

            4. 34 An entity shall re-present the disclosures in paragraph 33 for prior...

            5. 35 Adjustments in the current period to amounts previously presented in...

            6. 36 If an entity ceases to classify a component of an...

          3. Gains or losses relating to continuing operations

            1. 37 Any gain or loss on the remeasurement of a non-current...

          4. Presentation of a non-current asset or disposal group classified as...

            1. 38 An entity shall present a non-current asset classified as held...

            2. 39 If the disposal group is a newly acquired subsidiary that...

            3. 40 An entity shall not reclassify or re-present amounts presented for...

          5. Additional disclosures

            1. 41 An entity shall disclose the following information in the notes...

            2. 42 If either paragraph 26 or paragraph 29 applies, an entity shall disclose,...

        6. TRANSITIONAL PROVISIONS

          1. 43 The IFRS shall be applied prospectively to non-current assets (or...

        7. EFFECTIVE DATE

          1. 44 An entity shall apply this IFRS for annual periods beginning...

        8. WITHDRAWAL OF IAS 35

          1. 45 This IFRS supersedes IAS 35 Discontinuing operations.

        9. Appendix A

          Defined terms

        10. Appendix B

          Application supplement

          2. EXTENSION OF THE PERIOD REQUIRED TO COMPLETE A SALE

            1. B1 As noted in paragraph 9, an extension of the period...

      36. INTERNATIONAL FINANCIAL REPORTING STANDARD 6

        Exploration for and evaluation of mineral resources

        1. OBJECTIVE

          1. 1 The objective of this IFRS is to specify the financial...

          2. 2 In particular, the IFRS requires:

        2. SCOPE

          1. 3 An entity shall apply the IFRS to exploration and evaluation...

          2. 4 The IFRS does not address other aspects of accounting by...

          3. 5 An entity shall not apply the IFRS to expenditures incurred:...

        3. RECOGNITION OF EXPLORATION AND EVALUATION ASSETS

          1. Temporary exemption from IAS 8 paragraphs 11 and 12

            1. 6 When developing its accounting policies, an entity recognising exploration and...

            2. 7 Paragraphs 11 and 12 of IAS 8 specify sources of authoritative requirements...

        4. MEASUREMENT OF EXPLORATION AND EVALUATION ASSETS

          1. Measurement at recognition

            1. 8 Exploration and evaluation assets shall be measured at cost.

          2. Elements of cost of exploration and evaluation assets

            1. 9 An entity shall determine an accounting policy specifying which expenditures...

            2. 10 Expenditures related to the development of mineral resources shall not...

            3. 11 In accordance with IAS 37 Provisions, contingent liabilities and contingent assets...

          3. Measurement after recognition

            1. 12 After recognition, an entity shall apply either the cost model...

          4. Changes in accounting policies

            1. 13 An entity may change its accounting policies for exploration and...

            2. 14 To justify changing its accounting policies for exploration and evaluation...

        5. PRESENTATION

          1. Classification of exploration and evaluation assets

            1. 15 An entity shall classify exploration and evaluation assets as tangible...

            2. 16 Some exploration and evaluation assets are treated as intangible (e.g....

          2. Reclassification of exploration and evaluation assets

            1. 17 An exploration and evaluation asset shall no longer be classified...

        6. IMPAIRMENT

          1. Recognition and measurement

            1. 18 Exploration and evaluation assets shall be assessed for impairment when...

            2. 19 For the purposes of exploration and evaluation assets only, paragraph 20...

            3. 20 One or more of the following facts and circumstances indicate...

          2. Specifying the level at which exploration and evaluation assets are...

            1. 21 An entity shall determine an accounting policy for allocating exploration...

            2. 22 The level identified by the entity for the purposes of...

        7. DISCLOSURE

          1. 23 An entity shall disclose information that identifies and explains the...

          2. 24 To comply with paragraph 23, an entity shall disclose:

          3. 25 An entity shall treat exploration and evaluation assets as a...

        8. EFFECTIVE DATE

          1. 26 An entity shall apply this IFRS for annual periods beginning...

        9. TRANSITIONAL PROVISIONS

          1. 27 If it is impracticable to apply a particular requirement of...

        10. Appendix A

          Defined terms

      37. INTERNATIONAL FINANCIAL REPORTING STANDARD 7

        Financial instruments: disclosures

        1. OBJECTIVE

          1. 1 The objective of this IFRS is to require entities to...

          2. 2 The principles in this IFRS complement the principles for recognising,...

        2. SCOPE

          1. 3 This IFRS shall be applied by all entities to all...

          2. 4 This IFRS applies to recognised and unrecognised financial instruments. Recognised...

          3. 5 This IFRS applies to contracts to buy or sell a...

        3. CLASSES OF FINANCIAL INSTRUMENTS AND LEVEL OF DISCLOSURE

          1. 6 When this IFRS requires disclosures by class of financial instrument,...

        4. SIGNIFICANCE OF FINANCIAL INSTRUMENTS FOR FINANCIAL POSITION AND PERFORMANCE

          1. 7 An entity shall disclose information that enables users of its...

          2. Balance sheet

            1. Categories of financial assets and financial liabilities

              1. 8 The carrying amounts of each of the following categories, as...

            2. Financial assets or financial liabilities at fair value through profit...

              1. 9 If the entity has designated a loan or receivable (or...

              2. 10 If the entity has designated a financial liability as at...

              3. 11 The entity shall disclose:

            3. Reclassification

              1. 12 If the entity has reclassified a financial asset (in accordance...

              2. 12A If the entity has reclassified a financial asset out of...

            4. Derecognition

              1. 13 An entity may have transferred financial assets in such a...

            5. Collateral

              1. 14 An entity shall disclose:

              2. 15 When an entity holds collateral (of financial or non-financial assets)...

            6. Allowance account for credit losses

              1. 16 When financial assets are impaired by credit losses and the...

            7. Compound financial instruments with multiple embedded derivatives

              1. 17 If an entity has issued an instrument that contains both...

            8. Defaults and breaches

              1. 18 For loans payable recognised at the reporting date, an entity...

              2. 19 If, during the period, there were breaches of loan agreement...

          3. Income statement and equity

            1. Items of income, expense, gains or losses

              1. 20 An entity shall disclose the following items of income, expense,...

          4. Other disclosures

            1. Accounting policies

              1. 21 In accordance with paragraph 108 of IAS 1 Presentation of financial statements,...

            2. Hedge accounting

              1. 22 An entity shall disclose the following separately for each type...

              2. 23 For cash flow hedges, an entity shall disclose:

              3. 24 An entity shall disclose separately:

            3. Fair value

              1. 25 Except as set out in paragraph 29, for each class of...

              2. 26 In disclosing fair values, an entity shall group financial assets...

              3. 27 An entity shall disclose:

              4. 28 If the market for a financial instrument is not active,...

              5. 29 Disclosures of fair value are not required:

              6. 30 In the cases described in paragraph 29(b) and (c), an entity...

        5. NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS

          1. 31 An entity shall disclose information that enables users of its...

          2. 32 The disclosures required by paragraphs 33-42 focus on the risks that...

          3. Qualitative disclosures

            1. 33 For each type of risk arising from financial instruments, an...

          4. Quantitative disclosures

            1. 34 For each type of risk arising from financial instruments, an...

            2. 35 If the quantitative data disclosed as at the reporting date...

            3. Credit risk

              1. 36 An entity shall disclose by class of financial instrument:

              2. Financial assets that are either past due or impaired

                1. 37 An entity shall disclose by class of financial asset:

              3. Collateral and other credit enhancements obtained

                1. 38 When an entity obtains financial or non-financial assets during the...

            4. Liquidity risk

              1. 39 An entity shall disclose:

            5. Market risk

              1. Sensitivity analysis

                1. 40 Unless an entity complies with paragraph 41, it shall disclose:

                2. 41 If an entity prepares a sensitivity analysis, such as value-at-risk,...

              2. Other market risk disclosures

                1. 42 When the sensitivity analyses disclosed in accordance with paragraph 40 or...

        6. EFFECTIVE DATE AND TRANSITION

          1. 43 An entity shall apply this IFRS for annual periods beginning...

          2. 44 If an entity applies this IFRS for annual periods beginning...

          3. 44E Reclassification of financial assets (amendments to IAS 39 and IFRS...

        7. WITHDRAWAL OF IAS 30

          1. 45 This IFRS supersedes IAS 30 Disclosures in the financial statements of...

        8. Appendix A

          Defined terms

          2. The following terms are defined in paragraph 11 of IAS 32 or...

          3. amortised cost of a financial asset or financial liability, available-for-sale...

        9. Appendix B

          Application Guidance

          2. CLASSES OF FINANCIAL INSTRUMENTS AND LEVEL OF DISCLOSURE (PARAGRAPH 6)

            1. B1 Paragraph 6 requires an entity to group financial instruments into classes...

            2. B2 In determining classes of financial instrument, an entity shall, at...

            3. B3 An entity decides, in the light of its circumstances, how...

          3. SIGNIFICANCE OF FINANCIAL INSTRUMENTS FOR FINANCIAL POSITION AND PERFORMANCE

            1. Financial liabilities at fair value through profit or loss (paragraphs 10...

              1. B4 If an entity designates a financial liability as at fair...

            2. Other disclosure — accounting policies (paragraph 21)

              1. B5 Paragraph 21 requires disclosure of the measurement basis (or bases) used...

          4. NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (PARAGRAPHS 31-42)...

            1. B6 The disclosures required by paragraphs 31-42 shall be either given in...

            2. Quantitative disclosures (paragraph 34)

              1. B7 Paragraph 34(a) requires disclosures of summary quantitative data about an entity's...

              2. B8 Paragraph 34(c) requires disclosures about concentrations of risk. Concentrations of risk...

            3. Maximum credit risk exposure (paragraph 36(a))

              1. B9 Paragraph 36(a) requires disclosure of the amount that best represents the...

              2. B10 Activities that give rise to credit risk and the associated...

            4. Contractual maturity analysis (paragraph 39(a))

              1. B11 In preparing the contractual maturity analysis for financial liabilities required...

              2. B12 When a counterparty has a choice of when an amount...

              3. B13 When an entity is committed to make amounts available in...

              4. B14 The amounts disclosed in the maturity analysis are the contractual...

              5. B15 If appropriate, an entity shall disclose the analysis of derivative...

              6. B16 When the amount payable is not fixed, the amount disclosed...

            5. Market risk — sensitivity analysis (paragraphs 40 and 41)

              1. B17 Paragraph 40(a) requires a sensitivity analysis for each type of market...

              2. B18 Paragraph 40(a) requires the sensitivity analysis to show the effect on...

              3. B19 In determining what a reasonably possible change in the relevant...

              4. B20 Paragraph 41 permits an entity to use a sensitivity analysis that...

              5. B21 An entity shall provide sensitivity analyses for the whole of...

              6. Interest rate risk

                1. B22 Interest rate risk arises on interest-bearing financial instruments recognised in...

              7. Currency risk

                1. B23 Currency risk (or foreign exchange risk) arises on financial instruments...

                2. B24 A sensitivity analysis is disclosed for each currency to which...

              8. Other price risk

                1. B25 Other price risk arises on financial instruments because of changes...

                2. B26 Two examples of financial instruments that give rise to equity...

                3. B27 In accordance with paragraph 40(a), the sensitivity of profit or loss...

                4. B28 Financial instruments that an entity classifies as equity instruments are...

      38. INTERNATIONAL FINANCIAL REPORTING STANDARD 8

        Operating segments

        1. CORE PRINCIPLE

          1. 1 An entity shall disclose information to enable users of its...

        2. SCOPE

          1. 2 This IFRS shall apply to:

          2. 3 If an entity that is not required to apply this...

          3. 4 If a financial report contains both the consolidated financial statements...

        3. OPERATING SEGMENTS

          1. 5 An operating segment is a component of an entity:

          2. 6 Not every part of an entity is necessarily an operating...

          3. 7 The term ‘chief operating decision maker’ identifies a function, not...

          4. 8 For many entities, the three characteristics of operating segments described...

          5. 9 Generally, an operating segment has a segment manager who is...

          6. 10 The characteristics in paragraph 5 may apply to two or...

        4. REPORTABLE SEGMENTS

          1. 11 An entity shall report separately information about each operating segment...

          2. Aggregation criteria

            1. 12 Operating segments often exhibit similar long-term financial performance if they...

          3. Quantitative thresholds

            1. 13 An entity shall report separately information about an operating segment...

            2. 14 An entity may combine information about operating segments that do...

            3. 15 If the total external revenue reported by operating segments constitutes...

            4. 16 Information about other business activities and operating segments that are...

            5. 17 If management judges that an operating segment identified as a...

            6. 18 If an operating segment is identified as a reportable segment...

            7. 19 There may be a practical limit to the number of...

        5. DISCLOSURE

          1. 20 An entity shall disclose information to enable users of its...

          2. 21 To give effect to the principle in paragraph 20, an...

          3. General information

            1. 22 An entity shall disclose the following general information:

          4. Information about profit or loss, assets and liabilities

            1. 23 An entity shall report a measure of profit or loss...

            2. 24 An entity shall disclose the following about each reportable segment...

        6. MEASUREMENT

          1. 25 The amount of each segment item reported shall be the...

          2. 26 If the chief operating decision maker uses only one measure...

          3. 27 An entity shall provide an explanation of the measurements of...

          4. Reconciliations

            1. 28 An entity shall provide reconciliations of all of the following:...

          5. Restatement of previously reported information

            1. 29 If an entity changes the structure of its internal organisation...

            2. 30 If an entity has changed the structure of its internal...

        7. ENTITY-WIDE DISCLOSURES

          1. 31 Paragraphs 32-34 apply to all entities subject to this IFRS,...

          2. Information about products and services

            1. 32 An entity shall report the revenues from external customers for...

          3. Information about geographical areas

            1. 33 An entity shall report the following geographical information, unless the...

          4. Information about major customers

            1. 34 An entity shall provide information about the extent of its...

        8. TRANSITION AND EFFECTIVE DATE

          1. 35 An entity shall apply this IFRS in its annual financial...

          2. 36 Segment information for prior years that is reported as comparative...

        9. WITHDRAWAL OF IAS 14

          1. 37 This IFRS supersedes IAS 14 Segment reporting.

        10. Appendix A

          Defined term

      39. IFRIC INTERPRETATION 1

        Changes in existing decommissioning, restoration and similar liabilities

        1. REFERENCES

        2. BACKGROUND

          1. 1 Many entities have obligations to dismantle, remove and restore items...

        3. SCOPE

          1. 2 This interpretation applies to changes in the measurement of any...

        4. ISSUE

          1. 3 This interpretation addresses how the effect of the following events...

        5. CONSENSUS

          1. 4 Changes in the measurement of an existing decommissioning, restoration and...

          2. 5 If the related asset is measured using the cost model:...

          3. 6 If the related asset is measured using the revaluation model:...

          4. 7 The adjusted depreciable amount of the asset is depreciated over...

          5. 8 The periodic unwinding of the discount shall be recognised in...

        6. EFFECTIVE DATE

          1. 9 An entity shall apply this interpretation for annual periods beginning...

        7. TRANSITION

          1. 10 Changes in accounting policies shall be accounted for according to...

      40. IFRIC INTERPRETATION 2

        Members' shares in cooperative entities and similar instruments

        1. REFERENCES

        2. BACKGROUND

          1. 1 Cooperatives and other similar entities are formed by groups of...

          2. 2 IAS 32 establishes principles for the classification of financial instruments as...

        3. SCOPE

          1. 3 This interpretation applies to financial instruments within the scope of...

        4. ISSUE

          1. 4 Many financial instruments, including members' shares, have characteristics of equity,...

        5. CONSENSUS

          1. 5 The contractual right of the holder of a financial instrument...

          2. 6 Members' shares that would be classified as equity if the...

          3. 7 Members' shares are equity if the entity has an unconditional...

          4. 8 Local law, regulation or the entity's governing charter can impose...

          5. 9 An unconditional prohibition may be absolute, in that all redemptions...

          6. 10 At initial recognition, the entity shall measure its financial liability...

          7. 11 As required by paragraph 35 of IAS 32, distributions to holders of...

          8. 12 The Appendix, which is an integral part of the consensus,...

        6. DISCLOSURE

          1. 13 When a change in the redemption prohibition leads to a...

        7. EFFECTIVE DATE

          1. 14 The effective date and transition requirements of this interpretation are...

        8. Appendix

          Examples of application of the consensus

          2. A1 This appendix sets out seven examples of the application of...

          3. UNCONDITIONAL RIGHT TO REFUSE REDEMPTION (paragraph 7)

            1. Example 1

              1. Facts

                1. A2 The entity's charter states that redemptions are made at the...

              2. Classification

                1. A3 The entity has the unconditional right to refuse redemption and...

            2. Example 2

              1. Facts

                1. A4 The entity's charter states that redemptions are made at the...

              2. Classification

                1. A5 The entity does not have the unconditional right to refuse...

          4. PROHIBITIONS AGAINST REDEMPTION (paragraphs 8 and 9)

            1. Example 3

              1. Facts

                1. A6 A cooperative entity has issued shares to its members at...

                2. A7 The entity's charter states that cumulative redemptions cannot exceed 20 per...

              2. Classification

                1. Before the governing charter is amended

                  1. A8 Members' shares in excess of the prohibition against redemption are...

                  2. A9 On 1 January 20X1 the maximum amount payable under the...

                2. After the governing charter is amended

                  1. A10 Following the change in its governing charter the cooperative entity...

            2. Example 4

              1. Facts

                1. A11 Local law governing the operations of cooperatives, or the terms...

              2. Classification

                1. A12 In this case, CU750 000 would be classified as equity...

                2. A13 The redemption prohibition described in this example is different from...

            3. Example 5

              1. Facts

                1. A14 The facts of this example are as stated in example...

              2. Classification

                1. A15 As in example 4, the entity classifies CU750 000 as...

            4. Example 6

              1. Facts

                1. A16 The entity’s governing charter prohibits it from redeeming members’ shares,...

              2. Classification

                1. A17 The entity classifies CU12 000 of the members’ shares as...

            5. Example 7

              1. Facts

                1. A18 The entity is a cooperative bank. Local law governing the...

              2. Classification

                1. A19 In this example members' shares are classified as financial liabilities....

      41. IFRIC INTERPRETATION 4

        Determining whether an arrangement contains a lease

        1. REFERENCES

        2. BACKGROUND

          1. 1 An entity may enter into an arrangement, comprising a transaction...

          2. 2 This interpretation provides guidance for determining whether such arrangements are,...

          3. 3 In some arrangements, the underlying asset that is the subject...

        3. SCOPE

          1. 4 This interpretation does not apply to arrangements that are, or...

        4. ISSUES

          1. 5 The issues addressed in this interpretation are:

        5. CONSENSUS

          1. Determining whether an arrangement is, or contains, a lease

            1. 6 Determining whether an arrangement is, or contains, a lease shall...

            2. Fulfilment of the arrangement is dependent on the use of...

              1. 7 Although a specific asset may be explicitly identified in an...

              2. 8 An asset has been implicitly specified if, for example, the...

            3. Arrangement conveys a right to use the asset

              1. 9 An arrangement conveys the right to use the asset if...

          2. Assessing or reassessing whether an arrangement is, or contains, a...

            1. 10 The assessment of whether an arrangement contains a lease shall...

            2. 11 A reassessment of an arrangement shall be based on the...

          3. Separating payments for the lease from other payments

            1. 12 If an arrangement contains a lease, the parties to the...

            2. 13 For the purpose of applying the requirements of IAS 17, payments...

            3. 14 In some cases, separating the payments for the lease from...

            4. 15 If a purchaser concludes that it is impracticable to separate...

        6. EFFECTIVE DATE

          1. 16 An entity shall apply this interpretation for annual periods beginning...

        7. TRANSITION

          1. 17 IAS 8 specifies how an entity applies a change in accounting...

      42. IFRIC INTERPRETATION 5

        Rights to interests arising from decommissioning, restoration and environmental rehabilitation funds

        1. REFERENCES

        2. BACKGROUND

          1. 1 The purpose of decommissioning, restoration and environmental rehabilitation funds, hereafter...

          2. 2 Contributions to these funds may be voluntary or required by...

          3. 3 Such funds generally have the following features:

        3. SCOPE

          1. 4 This interpretation applies to accounting in the financial statements of...

          2. 5 A residual interest in a fund that extends beyond a...

        4. ISSUES

          1. 6 The issues addressed in this interpretation are:

        5. CONSENSUS

          1. Accounting for an interest in a fund

            1. 7 The contributor shall recognise its obligation to pay decommissioning costs...

            2. 8 The contributor shall determine whether it has control, joint control...

            3. 9 If a contributor does not have control, joint control or...

          2. Accounting for obligations to make additional contributions

            1. 10 When a contributor has an obligation to make potential additional...

          3. Disclosure

            1. 11 A contributor shall disclose the nature of its interest in...

            2. 12 When a contributor has an obligation to make potential additional...

            3. 13 When a contributor accounts for its interest in the fund...

        6. EFFECTIVE DATE

          1. 14 An entity shall apply this interpretation for annual periods beginning...

        7. TRANSITION

          1. 15 Changes in accounting policies shall be accounted for in accordance...

      43. IFRIC INTERPRETATION 6

        Liabilities arising from participating in a specific market — waste electrical and electronic equipment

        1. REFERENCES

        2. BACKGROUND

          1. 1 Paragraph 17 of IAS 37 specifies that an obligating event is a...

          2. 2 Paragraph 19 of IAS 37 states that provisions are recognised only for...

          3. 3 The European Union's Directive on Waste Electrical and Electronic Equipment...

          4. 4 The Directive states that the cost of waste management for...

          5. 5 Several terms used in the interpretation such as ‘market share’...

        3. SCOPE

          1. 6 This interpretation provides guidance on the recognition, in the financial...

          2. 7 The interpretation addresses neither new waste nor historical waste from...

        4. ISSUE

          1. 8 The IFRIC was asked to determine in the context of...

        5. CONSENSUS

          1. 9 Participation in the market during the measurement period is the...

        6. EFFECTIVE DATE

          1. 10 An entity shall apply this interpretation for annual periods beginning...

        7. TRANSITION

          1. 11 Changes in accounting policies shall be accounted for in accordance...

      44. IFRIC INTERPRETATION 7

        Applying the restatement approach under IAS 29 Financial reporting in hyperinflationary economies

        1. REFERENCES

        2. BACKGROUND

          1. 1 This interpretation provides guidance on how to apply the requirements...

        3. ISSUES

          1. 2 The questions addressed in this interpretation are:

        4. CONSENSUS

          1. 3 In the reporting period in which an entity identifies the...

          2. 4 At the closing balance sheet date, deferred tax items are...

          3. 5 After an entity has restated its financial statements, all corresponding...

        5. EFFECTIVE DATE

          1. 6 An entity shall apply this interpretation for annual periods beginning...

      45. IFRIC INTERPRETATION 8

        Scope of IFRS 2

        1. REFERENCES

        2. BACKGROUND

          1. 1 IFRS 2 applies to share-based payment transactions in which the...

          2. 2 In some cases, however, it might be difficult to demonstrate...

          3. 3 IFRS 2 requires transactions in which share-based payments are made...

          4. 4 For transactions in which share-based payments are made to parties...

          5. 5 It should be noted that the phrase ‘the fair value...

        3. SCOPE

          1. 6 IFRS 2 applies to transactions in which an entity or...

        4. ISSUE

          1. 7 The issue addressed in the interpretation is whether IFRS 2...

        5. CONSENSUS

          1. 8 IFRS 2 applies to particular transactions in which goods or...

          2. 9 In the absence of specifically identifiable goods or services, other...

          3. 10 The entity shall measure the identifiable goods or services received...

          4. 11 The entity shall measure the unidentifiable goods or services received...

          5. 12 The entity shall measure the unidentifiable goods or services received...

        6. EFFECTIVE DATE

          1. 13 An entity shall apply this interpretation for annual periods beginning...

        7. TRANSITION

          1. 14 An entity shall apply this interpretation retrospectively in accordance with...

      46. IFRIC INTERPRETATION 9

        Reassessment of embedded derivatives

        1. REFERENCES

        2. BACKGROUND

          1. 1 IAS 39 paragraph 10 describes an embedded derivative as ‘a component...

          2. 2 IAS 39 paragraph 11 requires an embedded derivative to be separated...

        3. SCOPE

          1. 3 Subject to paragraphs 4 and 5 below, this interpretation applies to...

          2. 4 This interpretation does not address remeasurement issues arising from a...

          3. 5 This interpretation does not address the acquisition of contracts with...

        4. ISSUES

          1. 6 IAS 39 requires an entity, when it first becomes a...

        5. CONSENSUS

          1. 7 An entity shall assess whether an embedded derivative is required...

          2. 8 A first-time adopter shall assess whether an embedded derivative is...

        6. EFFECTIVE DATE AND TRANSITION

          1. 9 An entity shall apply this interpretation for annual periods beginning...

      47. IFRIC INTERPRETATION 10

        Interim financial reporting and impairment

        1. REFERENCES

        2. BACKGROUND

          1. 1 An entity is required to assess goodwill for impairment at...

          2. 2 The interpretation addresses the interaction between the requirements of IAS...

        3. ISSUE

          1. 3 IAS 34 paragraph 28 requires an entity to apply the same...

          2. 4 IAS 36 paragraph 124 states that ‘An impairment loss recognised for...

          3. 5 IAS 39 paragraph 69 states that ‘Impairment losses recognised in profit...

          4. 6 IAS 39 paragraph 66 requires that impairment losses for financial assets...

          5. 7 The interpretation addresses the following issue:

        4. CONSENSUS

          1. 8 An entity shall not reverse an impairment loss recognised in...

          2. 9 An entity shall not extend this consensus by analogy to...

        5. EFFECTIVE DATE AND TRANSITION

          1. 10 An entity shall apply the interpretation for annual periods beginning...

      48. IFRIC INTERPRETATION 11

        IFRS 2 — Group and treasury share transactions

        1. REFERENCES

        2. ISSUES

          1. 1 This interpretation addresses two issues. The first is whether the...

          2. 2 The second issue concerns share-based payment arrangements that involve two...

          3. 3 Therefore, the second issue addresses the following share-based payment arrangements:...

          4. 4 This interpretation addresses how the share-based payment arrangements set out...

          5. 5 There may be an arrangement between a parent and its...

          6. 6 Although this interpretation focuses on transactions with employees, it also...

        3. CONSENSUS

          1. Share-based payment arrangements involving an entity's own equity instruments (paragraph 1)...

            1. 7 Share-based payment transactions in which an entity receives services as...

          2. Share-based payment arrangements involving equity instruments of the parent

            1. A parent grants rights to its equity instruments to the...

              1. 8 Provided that the share-based arrangement is accounted for as equity-settled...

              2. 9 A parent may grant rights to its equity instruments to...

              3. 10 Such an employee, after transferring between group entities, may fail...

            2. A subsidiary grants rights to equity instruments of its parent...

              1. 11 The subsidiary shall account for the transaction with its employees...

        4. EFFECTIVE DATE

          1. 12 An entity shall apply this interpretation for annual periods beginning...

        5. TRANSITION

          1. 13 An entity shall apply this interpretation retrospectively in accordance with...

      49. SIC INTERPRETATION 7

        Introduction of the euro

        1. REFERENCES

        2. ISSUE

          1. 1 From 1 January 1999, the effective start of Economic and Monetary...

          2. 2 The issue is the application of IAS 21 to the changeover...

        3. CONSENSUS

          1. 3 The requirements of IAS 21 regarding the translation of foreign currency...

          2. 4 This means that, in particular:

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      50. SIC INTERPRETATION 10

        Government assistance — no specific relation to operating activities

        1. REFERENCES

        2. ISSUE

          1. 1 In some countries government assistance to entities may be aimed...

          2. 2 The issue is whether such government assistance is a ‘government...

        3. CONSENSUS

          1. 3 Government assistance to entities meets the definition of government grants...

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      51. SIC INTERPRETATION 12

        Consolidation — special purpose entities

        1. REFERENCES

        2. ISSUE

          1. 1 An entity may be created to accomplish a narrow and...

          2. 2 The sponsor (or entity on whose behalf the SPE was...

          3. 3 A beneficial interest in an SPE may, for example, take...

          4. 4 IAS 27 requires the consolidation of entities that are controlled by...

          5. 5 The issue is under what circumstances an entity should consolidate...

          6. 6 This interpretation does not apply to post-employment benefit plans or...

          7. 7 A transfer of assets from an entity to an SPE...

        3. CONSENSUS

          1. 8 An SPE shall be consolidated when the substance of the...

          2. 9 In the context of an SPE, control may arise through...

          3. 10 In addition to the situations described in IAS 27.13, the following...

          4. 11 [Deleted]

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      52. SIC INTERPRETATION 13

        Jointly controlled entities — non-monetary contributions by venturers

        1. REFERENCES

        2. ISSUE

          1. 1 IAS 31.48 refers to both contributions and sales between a venturer...

          2. 2 Contributions to a JCE are transfers of assets by venturers...

          3. 3 The issues are:

          4. 4 This interpretation deals with the venturer's accounting for non-monetary contributions...

        3. CONSENSUS

          1. 5 In applying IAS 31.48 to non-monetary contributions to a JCE in...

          2. 6 If, in addition to receiving an equity interest in the...

          3. 7 Unrealised gains or losses on non-monetary assets contributed to JCEs...

          4. 8-13 [Not applicable to bare interpretation]

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

          1. 14 The amendments to the accounting for the non-monetary contribution transactions...

          2. 15 An entity shall apply the amendments to this interpretation made...

      53. SIC INTERPRETATION 15

        Operating leases — incentives

        1. REFERENCES

        2. ISSUE

          1. 1 In negotiating a new or renewed operating lease, the lessor...

          2. 2 The issue is how incentives in an operating lease should...

        3. CONSENSUS

          1. 3 All incentives for the agreement of a new or renewed...

          2. 4 The lessor shall recognise the aggregate cost of incentives as...

          3. 5 The lessee shall recognise the aggregate benefit of incentives as...

          4. 6 Costs incurred by the lessee, including costs in connection with...

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      54. SIC INTERPRETATION 21

        Income taxes — recovery of revalued non-depreciable assets

        1. REFERENCES

        2. ISSUE

          1. 1 Under IAS 12.51, the measurement of deferred tax liabilities and assets...

          2. 2 IAS 12.20 notes that the revaluation of an asset does not...

          3. 3 The issue is how to interpret the term ‘recovery’ in...

          4. 4 This interpretation also applies to investment properties that are carried...

        3. CONSENSUS

          1. 5 The deferred tax liability or asset that arises from the...

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      55. SIC INTERPRETATION 25

        Income taxes — changes in the tax status of an entity or its shareholders

        1. REFERENCES

        2. ISSUE

          1. 1 A change in the tax status of an entity or...

          2. 2 A change in the tax status of an entity or...

          3. 3 The issue is how an entity should account for the...

        3. CONSENSUS

          1. 4 A change in the tax status of an entity or...

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      56. SIC INTERPRETATION 27

        Evaluating the substance of transactions involving the legal form of a lease

        1. REFERENCES

        2. ISSUE

          1. 1 An entity may enter into a transaction or a series...

          2. 2 When an arrangement with an Investor involves the legal form...

        3. CONSENSUS

          1. 3 A series of transactions that involve the legal form of...

          2. 4 The accounting shall reflect the substance of the arrangement. All...

          3. 5 IAS 17 applies when the substance of an arrangement includes the...

          4. 6 The definitions and guidance in paragraphs 49-64 of the Framework shall...

          5. 7 Other obligations of an arrangement, including any guarantees provided and...

          6. 8 The criteria in paragraph 20 of IAS 18 shall be applied to...

          7. 9 The fee shall be presented in the income statement based...

        4. DISCLOSURE

          1. 10 All aspects of an arrangement that does not, in substance,...

          2. 11 The disclosures required in accordance with paragraph 10 of this interpretation...

        5. DATE OF CONSENSUS

        6. EFFECTIVE DATE

      57. SIC INTERPRETATION 29

        Disclosure — service concession arrangements

        1. REFERENCES

        2. ISSUE

          1. 1 An entity (the Concession Operator) may enter into an arrangement...

          2. 2 A service concession arrangement generally involves the concession provider conveying...

          3. 3 The common characteristic of all service concession arrangements is that...

          4. 4 The issue is what information should be disclosed in the...

          5. 5 Certain aspects and disclosures relating to some service concession arrangements...

        3. CONSENSUS

          1. 6 All aspects of a service concession arrangement shall be considered...

          2. 7 The disclosures required in accordance with paragraph 6 of this interpretation...

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      58. SIC INTERPRETATION 31

        Revenue — barter transactions involving advertising services

        1. REFERENCES

        2. ISSUE

          1. 1 An entity (Seller) may enter into a barter transaction to...

          2. 2 In some cases, no cash or other consideration is exchanged...

          3. 3 A seller that provides advertising services in the course of...

          4. 4 The issue is under what circumstances can a seller reliably...

        3. CONSENSUS

          1. 5 Revenue from a barter transaction involving advertising cannot be measured...

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      59. SIC INTERPRETATION 32

        Intangible assets — website costs

        1. REFERENCES

        2. ISSUE

          1. 1 An entity may incur internal expenditure on the development and...

          2. 2 The stages of a website's development can be described as...

          3. 3 Once development of a website has been completed, the Operating...

          4. 4 When accounting for internal expenditure on the development and operation...

          5. 5 This interpretation does not apply to expenditure on purchasing, developing,...

          6. 6 IAS 38 does not apply to intangible assets held by an...

        3. CONSENSUS

          1. 7 An entity's own website that arises from development and is...

          2. 8 A website arising from development shall be recognised as an...

          3. 9 Any internal expenditure on the development and operation of an...

          4. 10 A website that is recognised as an intangible asset under...

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

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