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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...

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 Article 2.Regulation (EC) No 1725/2003 is hereby repealed.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

  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 This Standard prescribes the basis for presentation of general purpose...

        2. SCOPE

          1. 2 An entity shall apply this Standard in preparing and presenting...

          2. 3 Other IFRSs set out the recognition, measurement and disclosure requirements...

          3. 4 This Standard does not apply to the structure and content...

          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. DEFINITIONS

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

          2. 8 Although this Standard uses the terms ‘ other comprehensive income...

          3. 8A The following terms are described in IAS 32 Financial Instruments:...

        4. FINANCIAL STATEMENTS

          1. Purpose of financial statements

            1. 9 Financial statements are a structured representation of the financial position...

          2. Complete set of financial statements

            1. 10 A complete set of financial statements comprises:

            2. 10A An entity may present a single statement of profit or...

            3. 11 An entity shall present with equal prominence all of the...

            4. 12 . . . . . . . . . ....

            5. 13 Many entities present, outside the financial statements, a financial review...

            6. 14 Many entities also present, outside the financial statements, reports and...

          3. General features

            1. Fair presentation and compliance with IFRSs

              1. 15 Financial statements shall present fairly the financial position, financial performance...

              2. 16 An entity whose financial statements comply with IFRSs shall make...

              3. 17 In virtually all circumstances, an entity achieves a fair presentation...

              4. 18 An entity cannot rectify inappropriate accounting policies either by disclosure...

              5. 19 In the extremely rare circumstances in which management concludes that...

              6. 20 When an entity departs from a requirement of an IFRS...

              7. 21 When an entity has departed from a requirement of an...

              8. 22 Paragraph 21 applies, for example, when an entity departed in...

              9. 23 In the extremely rare circumstances in which management concludes that...

              10. 24 For the purpose of paragraphs 19–23, an item of information...

            2. Going concern

              1. 25 When preparing financial statements, management shall make an assessment of...

              2. 26 In assessing whether the going concern assumption is appropriate, management...

            3. Accrual basis of accounting

              1. 27 An entity shall prepare its financial statements, except for cash...

              2. 28 When the accrual basis of accounting is used, an entity...

            4. Materiality and aggregation

              1. 29 An entity shall present separately each material class of similar...

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

              3. 31 An entity need not provide a specific disclosure required by...

            5. Offsetting

              1. 32 An entity shall not offset assets and liabilities or income...

              2. 33 An entity reports separately both assets and liabilities, and income...

              3. 34 IAS 18 Revenue defines revenue and requires an entity to...

              4. 35 In addition, an entity presents on a net basis gains...

            6. Frequency of reporting

              1. 36 An entity shall present a complete set of financial statements...

              2. 37 Normally, an entity consistently prepares financial statements for a one-year...

            7. Comparative information

              1. 38 Except when IFRSs permit or require otherwise, an entity shall...

              2. 39 An entity disclosing comparative information shall present, as a minimum,...

              3. 40 In some cases, narrative information provided in the financial statements...

              4. 41 When the entity changes the presentation or classification of items...

              5. 42 When it is impracticable to reclassify comparative amounts, an entity...

              6. 43 Enhancing the inter-period comparability of information assists users in making...

              7. 44 IAS 8 sets out the adjustments to comparative information required...

            8. Consistency of presentation

              1. 45 An entity shall retain the presentation and classification of items...

              2. 46 For example, a significant acquisition or disposal, or a review...

        5. STRUCTURE AND CONTENT

          1. Introduction

            1. 47 This Standard requires particular disclosures in the statement of financial...

            2. 48 This Standard sometimes uses the term ‘ disclosure ’ in...

          2. Identification of the financial statements

            1. 49 An entity shall clearly identify the financial statements and distinguish...

            2. 50 IFRSs apply only to financial statements, and not necessarily to...

            3. 51 An entity shall clearly identify each financial statement and the...

            4. 52 An entity meets the requirements in paragraph 51 by presenting...

            5. 53 An entity often makes financial statements more understandable by presenting...

          3. Statement of financial position

            1. Information to be presented in the statement of financial position...

              1. 54 As a minimum, the statement of financial position shall include...

              2. 55 An entity shall present additional line items, headings and subtotals...

              3. 56 When an entity presents current and non-current assets, and current...

              4. 57 This Standard does not prescribe the order or format in...

              5. 58 An entity makes the judgement about whether to present additional...

              6. 59 The use of different measurement bases for different classes of...

            2. Current/non-current distinction

              1. 60 An entity shall present current and non-current assets, and current...

              2. 61 Whichever method of presentation is adopted, an entity shall disclose...

              3. 62 When an entity supplies goods or services within a clearly...

              4. 63 For some entities, such as financial institutions, a presentation of...

              5. 64 In applying paragraph 60, an entity is permitted to present...

              6. 65 Information about expected dates of realisation of assets and liabilities...

            3. Current assets

              1. 66 An entity shall classify an asset as current when:

              2. 67 This Standard uses the term ‘ non-current ’ to include...

              3. 68 The operating cycle of an entity is the time between...

            4. Current liabilities

              1. 69 An entity shall classify a liability as current when:

              2. 70 Some current liabilities, such as trade payables and some accruals...

              3. 71 Other current liabilities are not settled as part of the...

              4. 72 An entity classifies its financial liabilities as current when they...

              5. 73 If an entity expects, and has the discretion, to refinance...

              6. 74 When an entity breaches a provision of a long-term loan...

              7. 75 However, an entity classifies the liability as non-current if the...

              8. 76 In respect of loans classified as current liabilities, if the...

            5. Information to be presented either in the statement of financial...

              1. 77 An entity shall disclose, either in the statement of financial...

              2. 78 The detail provided in subclassifications depends on the requirements of...

              3. 79 An entity shall disclose the following, either in the statement...

              4. 80 An entity without share capital, such as a partnership or...

              5. 80A If an entity has reclassified

          4. Statement of profit or loss and other comprehensive income

            1. 81 An entity shall present all items of income and expense...

            2. 81A The statement of profit or loss and other comprehensive income...

            3. 81B An entity shall present the following items, in addition to...

            4. Information to be presented in profit or loss section or...

              1. 82 In addition to items required by other IFRSs, the profit...

              2. Information to be presented in the other comprehensive income section...

                1. 82A The other comprehensive income section shall present line items for...

              3. 83 An entity shall disclose the following items in the statement...

              4. 84 . . . . . . . . . ....

              5. 85 An entity shall present additional line items, headings and subtotals...

              6. 86 Because the effects of an entity’s various activities, transactions and...

              7. 87 An entity shall not present any items of income or...

            5. Profit or loss for the period

              1. 88 An entity shall recognise all items of income and expense...

              2. 89 Some IFRSs specify circumstances when an entity recognises particular items...

            6. Other comprehensive income for the period

              1. 90 An entity shall disclose the amount of income tax relating...

              2. 91 An entity may present items of other comprehensive income either:...

              3. 92 An entity shall disclose reclassification adjustments relating to components of...

              4. 93 Other IFRSs specify whether and when amounts previously recognised in...

              5. 94 An entity may present reclassification adjustments in the statement(s) of...

              6. 95 Reclassification adjustments arise, for example, on disposal of a foreign...

              7. 96 Reclassification adjustments do not arise on changes in revaluation surplus...

            7. Information to be presented in the statement(s) of profit or...

              1. 97 When items of income or expense are material, an entity...

              2. 98 Circumstances that would give rise to the separate disclosure of...

              3. 99 An entity shall present an analysis of expenses recognised in...

              4. 100 Entities are encouraged to present the analysis in paragraph 99...

              5. 101 Expenses are subclassified to highlight components of financial performance that...

              6. 102 The first form of analysis is the ‘nature of expense’...

              7. 103 The second form of analysis is the ‘function of expense’...

              8. 104 An entity classifying expenses by function shall disclose additional information...

              9. 105 The choice between the function of expense method and the...

          5. Statement of changes in equity

            1. Information to be presented in the statement of changes in...

              1. 106 An entity shall present a statement of changes in equity...

            2. Information to be presented in the statement of changes in...

              1. 106A For each component of equity an entity shall present, either...

            3. 107 An entity shall present, either in the statement of changes...

            4. 108 In paragraph 106, the components of equity include, for example,...

            5. 109 Changes in an entity’s equity between the beginning and the...

            6. 110 IAS 8 requires retrospective adjustments to effect changes in accounting...

          6. Statement of cash flows

            1. 111 Cash flow information provides users of financial statements with a...

          7. Notes

            1. Structure

              1. 112 The notes shall:

              2. 113 An entity shall, as far as practicable, present notes in...

              3. 114 An entity normally presents notes in the following order, to...

              4. 115 In some circumstances, it may be necessary or desirable to...

              5. 116 An entity may present notes providing information about the basis...

            2. Disclosure of accounting policies

              1. 117 An entity shall disclose in the summary of significant accounting...

              2. 118 It is important for an entity to inform users of...

              3. 119 In deciding whether a particular accounting policy should be disclosed,...

              4. 120 Each entity considers the nature of its operations and the...

              5. 121 An accounting policy may be significant because of the nature...

              6. 122 An entity shall disclose, in the summary of significant accounting...

              7. 123 In the process of applying the entity’s accounting policies, management...

              8. 124 Some of the disclosures made in accordance with paragraph 122...

            3. Sources of estimation uncertainty

              1. 125 An entity shall disclose information about the assumptions it makes...

              2. 126 Determining the carrying amounts of some assets and liabilities requires...

              3. 127 The assumptions and other sources of estimation uncertainty disclosed in...

              4. 128 The disclosures in paragraph 125 are not required for assets...

              5. 129 An entity presents the disclosures in paragraph 125 in a...

              6. 130 This Standard does not require an entity to disclose budget...

              7. 131 Sometimes it is impracticable to disclose the extent of the...

              8. 132 The disclosures in paragraph 122 of particular judgements that management...

              9. 133 Other IFRSs require the disclosure of some of the assumptions...

            4. Capital

              1. 134 An entity shall disclose information that enables users of its...

              2. 135 To comply with paragraph 134, the entity discloses the following:...

              3. 136 An entity may manage capital in a number of ways...

            5. Puttable financial instruments classified as equity

              1. 136A For puttable financial instruments classified as equity instruments, an entity...

            6. Other disclosures

              1. 137 An entity shall disclose in the notes:

              2. 138 An entity shall disclose the following, if not disclosed elsewhere...

        6. TRANSITION AND EFFECTIVE DATE

          1. 139 An entity shall apply this Standard for annual periods beginning...

          2. 139A IAS 27 (as amended by the International Accounting Standards Board...

          3. 139B Puttable Financial Instruments and Obligations Arising on Liquidation (Amendments to...

          4. 139C Paragraphs 68 and 71 were amended by Improvements to IFRSs...

          5. 139D Paragraph 69 was amended by Improvements to IFRSs issued in...

          6. 139F Paragraphs 106 and 107 were amended and paragraph 106A was...

          7. 139J Presentation of Items of Other Comprehensive Income (Amendments to IAS...

          8. 139K IAS 19 Employee Benefits (as amended in June 2011) amended...

        7. WITHDRAWAL OF IAS 1 (REVISED 2003)

          1. 140 This Standard supersedes IAS 1 Presentation of Financial Statements revised...

      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...

          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...

              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...

            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

        Statement of Cash Flows

        1. OBJECTIVE

        2. SCOPE

          1. 1 An entity shall prepare a statement of cash flows in...

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

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

        3. BENEFITS OF CASH FLOW INFORMATION

          1. 4 A statement of cash flows, when used in conjunction with...

          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 STATEMENT OF A CASH FLOWS

          1. 10 The statement of cash flows shall report cash flows during...

          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...

          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. CHANGES IN OWNERSHIP INTERESTS IN SUBSIDIARIES AND OTHER BUSINESSES

          1. 39 The aggregate cash flows arising from obtaining or losing control...

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

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

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

          5. 42A Cash flows arising from changes in ownership interests in a...

          6. 42B Changes in ownership interests in a subsidiary that do not...

        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...

          2. 54 IAS 27 (as amended by the International Accounting Standards Board...

          3. 55 Paragraph 14 was amended by Improvements to IFRSs issued in...

          4. 56 Paragraph 16 was amended by Improvements to IFRSs issued in...

      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 an IFRS specifically applies to a transaction, other event...

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

            3. 9 IFRSs are accompanied by guidance to assist entities in applying...

            4. 10 In the absence of an IFRS that specifically applies to...

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

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

          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...

            6. Applying changes in accounting policies

              1. 19 Subject to paragraph 23:

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

              3. 21 In the absence of an IFRS that specifically applies to...

              4. Retrospective application

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

              5. Limitations on retrospective application

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

                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 an IFRS has an effect on...

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

              3. 30 When an entity has not applied a new IFRS that...

              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...

          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...

          2. 56 This standard supersedes the following interpretations:

      6. INTERNATIONAL ACCOUNTING STANDARD 10

        Events after the Reporting Period

        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 reporting period include all events up to...

        4. RECOGNITION AND MEASUREMENT

          1. Adjusting events after the reporting period

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

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

          2. Non-adjusting events after the reporting period

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

            2. 11 An example of a non-adjusting event after the reporting period...

          3. Dividends

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

            2. 13 If dividends are declared after the reporting period but before...

        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 reporting...

          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 end of the reporting...

            1. 19 If an entity receives information after the reporting period about...

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

          3. Non-adjusting events after the reporting period

            1. 21 If non-adjusting events after the reporting period are material, non-disclosure...

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

        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...

      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...

        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 With limited exceptions, the identifiable assets acquired and liabilities assumed...

          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...

          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. Goodwill

              1. 32A If the carrying amount of goodwill arising in a business...

            11. 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 the end of each reporting period, an entity reassesses...

          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...

            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. Items recognised in profit or loss

            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 recognised outside profit or loss

            1. 61 . . . . . . . . . ....

            2. 61A Current tax and deferred tax shall be recognised outside profit...

            3. 62 International Financial Reporting Standards require or permit particular items to...

            4. 62A International Financial Reporting Standards require or permit particular items to...

            5. 63 In exceptional circumstances it may be difficult to determine the...

            6. 64 IAS 16 does not specify whether an entity should transfer...

            7. 65 When an asset is revalued for tax purposes and that...

            8. 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...

            2. 67 As a result of a business combination, the probability of...

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

              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...

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

        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. 77A . . . . . . . . . ....

            2. Exchange differences on deferred foreign tax liabilities or assets

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

        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...

          6. 83 [Deleted]

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

          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...

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

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

          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,...

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

          4. 92 IAS 1 (as revised in 2007) amended the terminology used...

          5. 93 Paragraph 68 shall be applied prospectively from the effective date...

          6. 94 Therefore, entities shall not adjust the accounting for prior business...

          7. 95 IFRS 3 (as revised by the International Accounting Standards Board...

          8. 98B Presentation of Items of Other Comprehensive Income (Amendments to IAS...

      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 using the cost model for investment property in...

        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...

            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...

            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...

          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. 68A However, an entity that, in the course of its ordinary...

          4. 69 The disposal of an item of property, plant and equipment...

          5. 70 If, under the recognition principle in paragraph 7, an entity...

          6. 71 The gain or loss arising from the derecognition of an...

          7. 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...

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

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

          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...

        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...

          3. 81B IAS 1 Presentation of Financial Statements (as revised in 2007)...

          4. 81C IFRS 3 Business Combinations (as revised by the International Accounting...

          5. 81D Paragraphs 6 and 69 were amended and paragraph 68A was...

          6. 81E Paragraph 5 was amended by Improvements to IFRSs issued in...

        11. WITHDRAWAL OF OTHER PRONOUNCEMENTS

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

          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...

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

          8. 14 . . . . . . . . . ....

          9. 15 . . . . . . . . . ....

          10. 15A When a lease includes both land and buildings elements, an...

          11. 16 Whenever necessary in order to classify and account for a...

          12. 17 For a lease of land and buildings in which the...

          13. 18 Separate measurement of the land and buildings elements is not...

          14. 19 In accordance with IAS 40, it is possible for a...

        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 lessees...

              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...

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

          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...

        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...

              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...

            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...

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

        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...

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

          3. 68A An entity shall reassess the classification of land elements of...

        9. EFFECTIVE DATE

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

          2. 69A Paragraphs 14 and 15 were deleted, and paragraphs 15A and...

        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...

          2. 38 Cost of an Investment in a Subsidiary, Jointly Controlled Entity...

      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...

          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...

          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...

            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...

        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. Statement of financial position

              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...

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

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

              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...

                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...

              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...

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

              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...

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

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

              4. 93B Actuarial gains and losses recognised in other comprehensive income 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...

              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. 111A When a plan amendment reduces benefits, only the effect of...

            5. 112 A settlement occurs when an entity enters into a transaction...

            6. 113 In some cases, an entity acquires an insurance policy to...

            7. 114 A settlement occurs together with a curtailment if a plan...

            8. 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...

            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...

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

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

        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...

            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...

          3. 159 The following become operative for annual financial statements covering periods...

          4. 159A The amendment in paragraph 58A becomes operative for annual financial...

          5. 159B An entity shall apply the amendments in paragraphs 32A, 34-34B,...

          6. 159C The option in paragraphs 93A-93D may be used for annual...

          7. 159D Paragraphs 7, 8(b), 32B, 97, 98 and 111 were amended...

          8. 160 IAS 8 applies when an entity changes its accounting policies...

          9. 161 IAS 1 (as revised in 2007) amended the terminology used...

      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. 10A The benefit of a government loan at a below-market rate...

          6. 11 Once a government grant is recognised, any related contingent liability...

          7. 12 Government grants shall be recognised in profit or loss on...

          8. 13 There are two broad approaches to the accounting for government...

          9. 14 Those in support of the capital approach argue as follows:...

          10. 15 Arguments in support of the income approach are as follows:...

          11. 16 It is fundamental to the income approach that government grants...

          12. 17 In most cases the periods over which an entity recognises...

          13. 18 Grants related to non-depreciable assets may also require the fulfilment...

          14. 19 Grants are sometimes received as part of a package of...

          15. 20 A government grant that becomes receivable as compensation for expenses...

          16. 21 In some circumstances, a government grant may be awarded for...

          17. 22 A government grant may become receivable by an entity as...

          18. Non-monetary government grants

            1. 23 A government grant may take the form of a transfer...

          19. 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 recognises the grant as deferred income that is...

            4. 27 The other method deducts the grant in calculating the carrying...

            5. 28 The purchase of assets and the receipt of related grants...

          20. Presentation of grants related to income

            1. 29 Grants related to income are presented as part of profit...

            2. 29A . . . . . . . . . ....

            3. 30 Supporters of the first method claim that it is inappropriate...

            4. 31 Both methods are regarded as acceptable for the presentation of...

          21. 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...

          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 . . . . . . . . . ....

          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...

          2. 42 IAS 1 (as revised in 2007) amended the terminology used...

          3. 43 Paragraph 37 was deleted and paragraph 10A added by Improvements...

          4. 46 Presentation of Items of Other Comprehensive Income (Amendments to IAS...

      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,...

          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 the ends of subsequent reporting periods

            1. 23 At the end of each reporting period:

            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...

            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...

            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...

            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 or partial disposal of a foreign operation

            1. 48 On the disposal of a foreign operation, the cumulative amount...

            2. 48A In addition to the disposal of an entity’s entire interest...

            3. 48B On disposal of a subsidiary that includes a foreign operation,...

            4. 48C On the partial disposal of a subsidiary that includes a...

            5. 48D A partial disposal of an entity’s interest in a foreign...

            6. 49 An entity may dispose or partially dispose of its interest...

        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,...

          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...

          4. 60 All other changes resulting from the application of this standard...

          5. 60A IAS 1 (as revised in 2007) amended the terminology used...

          6. 60B IAS 27 (as amended in 2008) added paragraphs 48A–48D and...

          7. 60D Paragraph 60B was amended by Improvements to IFRSs issued in...

          8. 60H Presentation of Items of Other Comprehensive Income (Amendments to IAS...

        10. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 61 This standard supersedes IAS 21 The effects of changes in...

          2. 62 This standard supersedes the following interpretations:

      15. INTERNATIONAL ACCOUNTING STANDARD 23

        Borrowing Costs

        1. CORE PRINCIPLE

          1. 1 Borrowing costs that are directly attributable to the acquisition, construction...

        2. SCOPE

          1. 2 An entity shall apply this Standard in accounting for borrowing...

          2. 3 The Standard does not deal with the actual or imputed...

          3. 4 An entity is not required to apply the Standard to...

        3. DEFINITIONS

          1. 5 This Standard uses the following terms with the meanings specified:...

          2. 6 Borrowing costs may include:

          3. 7 Depending on the circumstances, any of the following may be...

        4. RECOGNITION

          1. 8 An entity shall capitalise borrowing costs that are directly attributable...

          2. 9 Borrowing costs that are directly attributable to the acquisition, construction...

          3. Borrowing costs eligible for capitalisation

            1. 10 The borrowing costs that are directly attributable to the acquisition,...

            2. 11 It may be difficult to identify a direct relationship between...

            3. 12 To the extent that an entity borrows funds specifically for...

            4. 13 The financing arrangements for a qualifying asset may result in...

            5. 14 To the extent that an entity borrows funds generally and...

            6. 15 In some circumstances, it is appropriate to include all borrowings...

          4. Excess of the carrying amount of the qualifying asset over...

            1. 16 When the carrying amount or the expected ultimate cost of...

          5. Commencement of capitalisation

            1. 17 An entity shall begin capitalising borrowing costs as part of...

            2. 18 Expenditures on a qualifying asset include only those expenditures that...

            3. 19 The activities necessary to prepare the asset for its intended...

          6. Suspension of capitalisation

            1. 20 An entity shall suspend capitalisation of borrowing costs during extended...

            2. 21 An entity may incur borrowing costs during an extended period...

          7. Cessation of capitalisation

            1. 22 An entity shall cease capitalising borrowing costs when substantially all...

            2. 23 An asset is normally ready for its intended use or...

            3. 24 When an entity completes the construction of a qualifying asset...

            4. 25 A business park comprising several buildings, each of which can...

        5. DISCLOSURE

          1. 26 An entity shall disclose:

        6. TRANSITIONAL PROVISIONS

          1. 27 When application of this Standard constitutes a change in accounting...

          2. 28 However, an entity may designate any date before the effective...

        7. EFFECTIVE DATE

          1. 29 An entity shall apply the Standard for annual periods beginning...

          2. 29A Paragraph 6 was amended by Improvements to IFRSs issued in...

        8. WITHDRAWAL OF IAS 23 (REVISED 1993)

          1. 30 This Standard supersedes IAS 23 Borrowing Costs revised in 1993....

      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 relationships, transactions and...

          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 an entity’s 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...

          4. 12 In the definition of a related party, an associate includes...

        5. DISCLOSURES

          1. All entities

            1. 13 Relationships between a parent and its subsidiaries shall be disclosed...

            2. 14 To enable users of financial statements to form a view...

            3. 15 The requirement to disclose related party relationships between a parent...

            4. 16 Paragraph 13 refers to the next most senior parent. This...

            5. 17 An entity shall disclose key management personnel compensation in total...

            6. 18 If an entity has had related party transactions during the...

            7. 19 The disclosures required by paragraph 18 shall be made separately...

            8. 20 The classification of amounts payable to, and receivable from, related...

            9. 21 The following are examples of transactions that are disclosed if...

            10. 22 Participation by a parent or subsidiary in a defined benefit...

            11. 23 Disclosures that related party transactions were made on terms equivalent...

            12. 24 Items of a similar nature may be disclosed in aggregate...

          2. Government-related entities

            1. 25 A reporting entity is exempt from the disclosure requirements of...

            2. 26 If a reporting entity applies the exemption in paragraph 25,...

            3. 27 In using its judgement to determine the level of detail...

        6. EFFECTIVE DATE AND TRANSITION

          1. 28 An entity shall apply this Standard retrospectively for annual periods...

        7. WITHDRAWAL OF IAS 24 (2003)

          1. 29 This Standard supersedes IAS 24 Related Party Disclosures (as revised...

      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...

          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...

          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)...

            3. 30 Those who favour the format described in paragraph 28(c) believe...

            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...

          4. 7 The financial statements of an entity that does not have...

          5. 8 A parent that is exempted in accordance with paragraph 10...

        3. PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

          1. 9 A parent, other than a parent described in paragraph 10,...

          2. 10 A parent need not present consolidated financial statements if and...

          3. 11 A parent that elects in accordance with paragraph 10 not...

        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 A subsidiary is not excluded from consolidation simply because the...

          6. 17 A subsidiary is not excluded from consolidation because its business...

        5. CONSOLIDATION PROCEDURES

          1. 18 In preparing consolidated financial statements, an entity combines the financial...

          2. 19 When potential voting rights exist, the proportions of profit or...

          3. 20 Intragroup balances, transactions, income and expenses shall be eliminated in...

          4. 21 Intragroup balances and transactions, including income, expenses and dividends, are...

          5. 22 The financial statements of the parent and its subsidiaries used...

          6. 23 When, in accordance with paragraph 22, the financial statements of...

          7. 24 Consolidated financial statements shall be prepared using uniform accounting policies...

          8. 25 If a member of the group uses accounting policies other...

          9. 26 The income and expenses of a subsidiary are included in...

          10. 27 Non-controlling interests shall be presented in the consolidated statement of...

          11. 28 Profit or loss and each component of other comprehensive income...

          12. 29 If a subsidiary has outstanding cumulative preference shares that are...

          13. 30 Changes in a parent’s ownership interest in a subsidiary that...

          14. 31 In such circumstances the carrying amounts of the controlling and...

        6. LOSS OF CONTROL

          1. 32 A parent can lose control of a subsidiary with or...

          2. 33 A parent might lose control of a subsidiary in two...

          3. 34 If a parent loses control of a subsidiary, it:

          4. 35 If a parent loses control of a subsidiary, the parent...

          5. 36 On the loss of control of a subsidiary, any investment...

          6. 37 The fair value of any investment retained in the former...

        7. ACCOUNTING FOR INVESTMENTS IN SUBSIDIARIES, JOINTLY CONTROLLED ENTITIES AND ASSOCIATES...

          1. 38 When an entity prepares separate financial statements, it shall account...

          2. 38A An entity shall recognise a dividend from a subsidiary, jointly...

          3. 38B When a parent reorganises the structure of its group by...

          4. 38C Similarly, an entity that is not a parent might establish...

          5. 39 This Standard does not mandate which entities produce separate financial...

          6. 40 Investments in jointly controlled entities and associates that are accounted...

        8. DISCLOSURE

          1. 41 The following disclosures shall be made in consolidated financial statements:...

          2. 42 When separate financial statements are prepared for a parent that,...

          3. 43 When a parent (other than a parent covered by paragraph...

        9. EFFECTIVE DATE AND TRANSITION

          1. 44 An entity shall apply this Standard for annual periods beginning...

          2. 45 An entity shall apply the amendments to IAS 27 made...

          3. 45A Paragraph 38 was amended by Improvements to IFRSs issued in...

          4. 45B Cost of an Investment in a Subsidiary, Jointly Controlled Entity...

          5. 45C Cost of an Investment in a Subsidiary, Jointly Controlled Entity...

        10. WITHDRAWAL OF IAS 27 (2003)

          1. 46 This Standard supersedes IAS 27 Consolidated and Separate Financial Statements...

      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...

          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...

          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 When an investment ceases to be an associate and is...

          8. 19A If an investor loses significant influence over an associate, the...

          9. 20 Many of the procedures appropriate for the application of the...

          10. 21 A group's share in an associate is the aggregate of...

          11. 22 Profits and losses resulting from ‘upstream’ and ‘downstream’ transactions between...

          12. 23 An investment in an associate is accounted for using the...

          13. 24 The most recent available financial statements of the associate are...

          14. 25 When, in accordance with paragraph 24, the financial statements of...

          15. 26 The investor's financial statements shall be prepared using uniform accounting...

          16. 27 If an associate uses accounting policies other than those of...

          17. 28 If an associate has outstanding cumulative preference shares that are...

          18. 29 If an investor's share of losses of an associate equals...

          19. 30 After the investor's interest is reduced to zero, additional losses...

          20. 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...

            3. 33 Because goodwill that forms part of the carrying amount of...

            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 in other comprehensive income...

          4. 40 In accordance with IAS 37 Provisions, contingent liabilities and contingent...

        6. EFFECTIVE DATE AND TRANSITION

          1. 41 An entity shall apply this standard for annual periods beginning...

          2. 41A IAS 1 (as revised in 2007) amended the terminology used...

          3. 41B IAS 27 (as amended in 2008) amended paragraphs 18, 19...

          4. 41C Paragraphs 1 and 33 were amended by Improvements to IFRSs...

          5. 41E Paragraph 41B was amended by Improvements to IFRSs issued in...

        7. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 42 This standard supersedes IAS 28 Accounting for investments in associates...

          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 Entities that prepare financial statements on the historical cost basis...

          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. Statement of financial position

              1. 11 Statement of financial position amounts not already expressed in terms...

              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. Statement of comprehensive income

              1. 26 This standard requires that all items in the statement of...

            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. Statement of financial position

              1. 29 Items stated at current cost are not restated because they...

            2. Statement of comprehensive income

              1. 30 The current cost statement of comprehensive income, before restatement, generally...

            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. Statement of cash flows

            1. 33 This standard requires that all items in the statement of...

          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 ends of the reporting periods...

          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...

          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 statement of...

              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,...

              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 When an investor ceases to have joint control over an...

              5. 45A When an investment ceases to be a jointly controlled entity...

              6. 45B If an investor loses joint control of an entity, the...

          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 AND TRANSITION

          1. 58 An entity shall apply this standard for annual periods beginning...

          2. 58A IAS 27 (as amended in 2008) amended paragraphs 45 and...

          3. 58B Paragraph 1 was amended by Improvements to IFRSs issued in...

          4. 58D Paragraph 58A was amended by Improvements to IFRSs issued in...

        11. WITHDRAWAL OF IAS 31 (REVISED 2000)

          1. 59 This standard supersedes IAS 31 Financial reporting of interests in...

      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...

          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 AG13-AG14J and AG25–AG29A)

            1. 15 The issuer of a financial instrument shall classify the instrument,...

            2. 16 When an issuer applies the definitions in paragraph 11 to...

            3. Puttable instruments

              1. 16A A puttable financial instrument includes a contractual obligation for the...

              2. 16B For an instrument to be classified as an equity instrument,...

            4. Instruments, or components of instruments, that impose on the entity...

              1. 16C Some financial instruments include a contractual obligation for the issuing...

              2. 16D For an instrument to be classified as an equity instrument,...

            5. Reclassification of puttable instruments and instruments that impose on the...

              1. 16E An entity shall classify a financial instrument as an equity...

              2. 16F An entity shall account as follows for the reclassification of...

            6. No contractual obligation to deliver cash or another financial asset...

              1. 17 With the exception of the circumstances described in paragraphs 16A...

              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...

            7. 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 Except as stated in paragraph 22A, a contract that will...

              3. 22A If the entity’s own equity instruments to be received, or...

              4. 23 With the exception of the circumstances described in paragraphs 16A...

              5. 24 A contract that will be settled by the entity delivering...

            8. Contingent settlement provisions

              1. 25 A financial instrument may require the entity to deliver cash...

            9. 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...

            5. 32 Under the approach described in paragraph 31, the issuer of...

          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...

            9. 50 An entity that undertakes a number of financial instrument transactions...

        5. DISCLOSURE

          1. 51-95 [Deleted]

        6. EFFECTIVE DATE AND TRANSITION

          1. 96 An entity shall apply this standard for annual periods beginning...

          2. 96A Puttable Financial Instruments and Obligations Arising on Liquidation (Amendments to...

          3. 96B Puttable Financial Instruments and Obligations Arising on Liquidation introduced a...

          4. 96C The classification of instruments under this exception shall be restricted...

          5. 97 This standard shall be applied retrospectively.

          6. 97A IAS 1 (as revised in 2007) amended the terminology used...

          7. 97B IFRS 3 (as revised in 2008) deleted paragraph 4(c). An...

          8. 97C When applying the amendments described in paragraph 96A, an entity...

          9. 97D Paragraph 4 was amended by Improvements to IFRSs issued in...

          10. 97E Paragraphs 11 and 16 were amended by Classification of Rights...

          11. 97G Paragraph 97B was amended by Improvements to IFRSs issued in...

          12. 97K Presentation of Items of Other Comprehensive Income (Amendments to IAS...

        7. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 98 This standard supersedes IAS 32 Financial instruments: disclosure and presentation...

          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...

              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 puttable...

              2. AG14 A purchased call option or other similar contract acquired by...

              3. The class of instruments that is subordinate to all other...

                1. AG14A One of the features of paragraphs 16A and 16C is...

                2. AG14B When determining whether an instrument is in the subordinate class,...

                3. AG14C An instrument that has a preferential right on liquidation of...

                4. AG14D If an entity has only one class of financial instruments,...

              4. Total expected cash flows attributable to the instrument over the...

                1. AG14E The total expected cash flows of the instrument over the...

              5. Transactions entered into by an instrument holder other than as...

                1. AG14F The holder of a puttable financial instrument or an instrument...

                2. AG14G An example is a limited partnership that has limited and...

                3. AG14H Another example is a profit or loss sharing arrangement that...

                4. AG14I The cash flows and contractual terms and conditions of a...

              6. No other financial instrument or contract with total cash flows...

                1. AG14J A condition for classifying as equity a financial instrument that...

            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...

              4. Treatment in consolidated financial statements

                1. AG29 In consolidated financial statements, an entity presents non-controlling interests —...

                2. AG29A Some types of instruments that impose a contractual obligation on...

            2. Compound financial instruments (paragraphs 28-32)

              1. AG30 Paragraph 28 applies only to issuers of non-derivative compound financial...

              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...

            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...

          4. 4A If an entity presents items of profit or loss in...

        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 consideration transferred in...

              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 in the statement of comprehensive income...

          2. 67 Earnings per share is presented for every period for which...

          3. 67A If an entity presents items of profit or loss in...

          4. 68 An entity that reports a discontinued operation shall disclose the...

          5. 68A If an entity presents items of profit or loss in...

          6. 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...

          5. 73A Paragraph 73 applies also to an entity that discloses, in...

        8. EFFECTIVE DATE

          1. 74 An entity shall apply this standard for annual periods beginning...

          2. 74A IAS 1 (as revised in 2007) amended the terminology used...

          3. 74D Presentation of Items of Other Comprehensive Income (Amendments to IAS...

        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...

          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 (as revised in 2007) defines a complete set...

          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...

            2. 8A If an entity presents items of profit or loss in...

          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 In the statement that presents the components of profit or...

            4. 11A If an entity presents items of profit or loss in...

            5. 12 IAS 1 (as revised in 2007) provides guidance on the...

            6. 13 . . . . . . . . . ....

            7. 14 An interim financial report is prepared on a consolidated basis...

          6. Significant events and transactions

            1. 15 An entity shall include in its interim financial report an...

            2. 15A A user of an entity’s interim financial report will have...

            3. 15B The following is a list of events and transactions for...

            4. 15C Individual IFRSs provide guidance regarding disclosure requirements for many of...

            5. 16 An entity shall include the following information, as a minimum,...

            6. Other disclosures

              1. 16A In addition to disclosing significant events and transactions in accordance...

            7. 17 Examples of the kinds of disclosures that are required by...

            8. 18 . . . . . . . . . ....

          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...

            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)...

        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...

          2. 47 IAS 1 (as revised in 2007) amended the terminology used...

          3. 48 IFRS 3 (as revised by the International Accounting Standards Board...

          4. 49 Paragraph 15 was amended, paragraphs 15A–15C and 16A were added...

          5. 51 Presentation of Items of Other Comprehensive Income (Amendments to IAS...

      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...

          2. 8 An asset is impaired when its carrying amount exceeds its...

          3. 9 An entity shall assess at the end of each reporting...

          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...

          8. 14 Evidence from internal reporting that indicates that an asset may...

          9. 15 As indicated in paragraph 10, this standard requires an intangible...

          10. 16 As an illustration of paragraph 15, if market interest rates...

          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...

          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...

            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...

          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 and Appendix C set out the requirements for...

          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...

              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 recognised in a business combination is an asset representing...

                3. 82 Applying the requirements in paragraph 80 results in goodwill being...

                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...

                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...

                2. 89 If a cash-generating unit described in paragraph 88 includes in...

                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...

                2. 92 . . . . . . . . . ....

                3. 93 . . . . . . . . . ....

                4. 94 . . . . . . . . . ....

                5. 95 . . . . . . . . . ....

              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,...

            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...

        8. REVERSING AN IMPAIRMENT LOSS

          1. 109 Paragraphs 110-116 set out the requirements for reversing an impairment...

          2. 110 An entity shall assess at the end of each reporting...

          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...

            2. 125 IAS 38 Intangible assets prohibits the recognition of internally generated...

        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...

          4. 129 An entity that reports segment information in accordance with IFRS...

          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...

          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...

          10. Transitional provisions and effective date

            1. 138 . . . . . . . . . ....

            2. 139 An entity shall apply this Standard:

            3. 140 Entities to which paragraph 139 applies are encouraged to apply...

            4. 140A IAS 1 Presentation of Financial Statements (as revised in 2007)...

            5. 140B IFRS 3 (as revised by the International Accounting Standards Board...

            6. 140C Paragraph 134(e) was amended by Improvements to IFRSs issued in...

            7. 140D Cost of an Investment in a Subsidiary, Jointly Controlled Entity...

            8. 140E Improvements to IFRSs issued in April 2009 amended paragraph 80(b)....

          11. Withdrawal of IAS 36 (issued 1998)

            1. 141 This standard supersedes IAS 36 Impairment of assets (issued in...

        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...

            7. A21 An entity normally uses a single discount rate for the...

        11. Appendix C

          2. Impairment testing cash-generating units with goodwill and non-controlling interests

            1. C1 In accordance with IFRS 3 (as revised by the International...

          3. Allocation of goodwill

            1. C2 Paragraph 80 of this Standard requires goodwill acquired in a...

          4. Testing for impairment

            1. C3 Testing for impairment involves comparing the recoverable amount of a...

            2. C4 If an entity measures non-controlling interests as its proportionate interest...

          5. Allocating an impairment loss

            1. C5 Paragraph 104 requires any identified impairment loss to be allocated...

            2. C6 If a subsidiary, or part of a subsidiary, with a...

            3. C7 If a subsidiary, or part of a subsidiary, with a...

            4. C8 If an impairment loss attributable to a non-controlling interest relates...

            5. C9 Illustrative Example 7 illustrates the impairment testing of a non-wholly-owned...

      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 When 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,...

            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,...

            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 statement of comprehensive income, the expense relating to...

          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...

        7. CHANGES IN PROVISIONS

          1. 59 Provisions shall be reviewed at the end of each reporting...

          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...

        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...

          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...

            3. Identifiability

              1. 11 The definition of an intangible asset requires an intangible asset...

              2. 12 An asset is identifiable if it either:

            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...

          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 Business Combinations , if an...

            2. 34 In accordance with this Standard and IFRS 3 (as revised...

            3. Measuring the fair value of an intangible asset acquired in...

              1. 35 If an intangible asset acquired in a business combination is...

              2. 36 An intangible asset acquired in a business combination might be...

              3. 37 The acquirer may recognise a group of complementary intangible assets...

              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 involved in the purchase and sale of...

            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...

          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...

          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. 69A An entity has a right to access goods when it...

          4. 70 Paragraph 68 does not preclude an entity from recognising a...

          5. 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...

          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...

          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...

        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...

          5. 115A In the case of a reacquired right in a business...

          6. 116 The consideration receivable on disposal of an intangible asset is...

          7. 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...

            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 . . . . . . . . . ....

          2. 130 An entity shall apply this Standard:

          3. 130A An entity shall apply the amendments in paragraph 2 for...

          4. 130B IAS 1 Presentation of Financial Statements (as revised in 2007)...

          5. 130C IFRS 3 (as revised in 2008) amended paragraphs 12, 33–35,...

          6. 130D Paragraphs 69, 70 and 98 were amended and paragraph 69A...

          7. 130E Improvements to IFRSs issued in April 2009 amended paragraphs 40...

          8. Exchanges of similar assets

            1. 131 The requirement in paragraphs 129 and 130(b) to apply this...

          9. Early application

            1. 132 Entities to which paragraph 130 applies are encouraged to apply...

        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...

          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...

          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...

            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),...

            7. 21 The transfer of risks and rewards (see paragraph 20) is...

            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...

            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. 50A The following changes in circumstances are not reclassifications for the...

            3. 50B A financial asset to which paragraph 50(c) applies (except a...

            4. 50C If an entity reclassifies a financial asset out of the...

            5. 50D A financial asset to which paragraph 50(c) applies that would...

            6. 50E A financial asset classified as available for sale that would...

            7. 50F If an entity reclassifies a financial asset out of the...

            8. 51 If, as a result of a change in intention or...

            9. 52 Whenever sales or reclassification of more than an insignificant amount...

            10. 53 If a reliable measure becomes available for a financial asset...

            11. 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 the end of each reporting...

            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,...

            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 reclassified 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...

            5. Fair value hedges

              1. 89 If a fair value hedge meets the conditions in paragraph...

              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...

              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...

              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...

              6. 100 For cash flow hedges other than those covered by paragraphs...

              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...

          3. 103B Financial guarantee contracts (amendments to IAS 39 and IFRS 4),...

          4. 103C IAS 1 (as revised in 2007) amended the terminology used...

          5. 103D IFRS 3 (as revised in 2008) deleted paragraph 2(f). An...

          6. 103E IAS 27 (as amended by the International Accounting Standards Board...

          7. 103F An entity shall apply the amendment in paragraph 2 for...

          8. 103G . . . . . . . . . ....

          9. 103G An entity shall apply paragraphs AG99BA, AG99E, AG99F, AG110A and...

          10. 103H Reclassification of Financial Assets (Amendments to IAS 39 and IFRS...

          11. 103I Reclassification of Financial Assets — Effective Date and Transition (Amendments...

          12. 103J An entity shall apply paragraph 12, as amended by Embedded...

          13. 103K Improvements to IFRSs issued in April 2009 amended paragraphs 2(g),...

          14. 103N Paragraph 103D was amended by Improvements to IFRSs issued in...

          15. 104 This standard shall be applied retrospectively except as specified in...

          16. 105 When this standard is first applied, an entity is permitted...

          17. 105A An entity shall apply paragraphs 11A, 48A, AG4B-AG4K, AG33A and...

          18. 105B An entity that first applies paragraphs 11A, 48A, AG4B-AG4K, AG33A...

          19. 105C An entity that first applies paragraphs 11A, 48A, AG4B-AG4K, AG33A...

          20. 105D An entity shall restate its comparative financial statements using the...

          21. 106 Except as permitted by paragraph 107, an entity shall apply...

          22. 107 Notwithstanding paragraph 106, an entity may apply the derecognition requirements...

          23. 107A Notwithstanding paragraph 104, an entity may apply the requirements in...

          24. 108 An entity shall not adjust the carrying amount of non-financial...

          25. 108A An entity shall apply the last sentence of paragraph 80,...

          26. 108B An entity need not apply paragraph AG99B to comparative information...

          27. 108C Paragraphs 9, 73 and AG8 were amended and paragraph 50A...

        9. WITHDRAWAL OF OTHER PRONOUNCEMENTS

          1. 109 This standard supersedes IAS 39 Financial instruments: recognition and measurement...

          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...

              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...

                1. AG4D Under IAS 39, measurement of a financial asset or financial...

                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...

                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...

              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...

          5. RECOGNITION AND DERECOGNITION (paragraphs 14-42)

            1. Initial recognition (paragraph 14)

              1. AG34 As a consequence of the principle in paragraph 14, an...

              2. AG35 The following are examples of applying the principle in paragraph...

            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...

                2. AG38 In applying paragraph 19, the entity could be, for example,...

              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...

              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...

              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...

            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...

                4. AG99B If a hedge of a forecast intragroup transaction qualifies for...

                5. AG99BA An entity can designate all changes in the cash flows...

              2. Designation of financial items as hedged items (paragraphs 81 and...

                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. AG99E Paragraph 81 permits an entity to designate something other than...

                4. AG99F To be eligible for hedge accounting, the designated risks and...

              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...

                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. AG110A Paragraph 74(a) permits an entity to separate the intrinsic value...

                9. AG110B If an entity designates a purchased option in its entirety...

                10. AG111 In the case of interest rate risk, hedge effectiveness may...

                11. AG112 In assessing the effectiveness of a hedge, an entity generally...

                12. 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...

                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...

          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 . . . . . . . . . ....

          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...

            2. 31 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors...

            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...

            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 carrying amount of investment property under the...

            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. 53A Once an entity becomes able to measure reliably the fair...

              3. 53B The presumption that the fair value of investment property under...

              4. 54 In the exceptional cases when an entity is compelled, for...

              5. 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...

          3. 59 Paragraphs 60-65 apply to recognition and measurement issues that arise...

          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 statement...

          2. 67 The disposal of an investment property may be achieved by...

          3. 68 If, in accordance with the recognition principle in paragraph 16,...

          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,...

          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...

            2. 75 An entity shall disclose:

            3. Fair value model

              1. 76 In addition to the disclosures required by paragraph 75, an...

              2. 77 When a valuation obtained for investment property is adjusted significantly...

              3. 78 In the exceptional cases referred to in paragraph 53, when...

            4. Cost model

              1. 79 In addition to the disclosures required by paragraph 75, an...

        10. TRANSITIONAL PROVISIONS

          1. Fair value model

            1. 80 An entity that has previously applied IAS 40 (2000) and...

            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...

            2. 84 The requirements of paragraphs 27-29 regarding the initial measurement of...

        11. EFFECTIVE DATE

          1. 85 An entity shall apply this standard for annual periods beginning...

          2. 85A IAS 1 Presentation of Financial Statements (as revised in 2007)...

          3. 85B Paragraphs 8, 9, 48, 53, 54 and 57 were amended,...

        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 . . . . . . . . . ....

          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...

          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...

            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...

        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...

            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 costs to...

            10. 49 An entity shall disclose:

            11. 50 An entity shall present a reconciliation of changes in the...

            12. 51 The fair value less costs to sell 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...

          3. 60 Paragraphs 5, 6, 17, 20 and 21 were amended and...

      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...

        2. SCOPE

          1. 2 An entity shall apply this IFRS in:

          2. 3 An entity’s first IFRS financial statements are the first annual...

          3. 4 This IFRS applies when an entity first adopts IFRSs. It...

          4. 5 This IFRS does not apply to changes in accounting policies...

        3. RECOGNITION AND MEASUREMENT

          1. Opening IFRS statement of financial position

            1. 6 An entity shall prepare and present an opening IFRS statement...

          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 13–19 and Appendices B–E, an...

            5. 11 The accounting policies that an entity uses in its opening...

            6. 12 This IFRS establishes two categories of exceptions to the principle...

          3. Exceptions to the retrospective application of other IFRSs

            1. 13 This IFRS prohibits retrospective application of some aspects of other...

            2. Estimates

              1. 14 An entity’s estimates in accordance with IFRSs at the date...

              2. 15 An entity may receive information after the date of transition...

              3. 16 An entity may need to make estimates in accordance with...

              4. 17 Paragraphs 14–16 apply to the opening IFRS statement of financial...

          4. Exemptions from other IFRSs

            1. 18 An entity may elect to use one or more of...

            2. 19 Some exemptions in Appendices C–E refer to fair value ....

        4. PRESENTATION AND DISCLOSURE

          1. 20 This IFRS does not provide exemptions from the presentation and...

          2. Comparative information

            1. 21 To comply with IAS 1, an entity’s first IFRS financial...

            2. Non-IFRS comparative information and historical summaries

              1. 22 Some entities present historical summaries of selected data for periods...

          3. Explanation of transition to IFRSs

            1. 23 An entity shall explain how the transition from previous GAAP...

            2. Reconciliations

              1. 24 To comply with paragraph 23, an entity’s first IFRS financial...

              2. 25 The reconciliations required by paragraph 24(a) and (b) shall give...

              3. 26 If an entity becomes aware of errors made under previous...

              4. 27 IAS 8 does not apply to the changes in accounting...

              5. 27A If during the period covered by its first IFRS financial...

              6. 28 If an entity did not present financial statements for previous...

            3. Designation of financial assets or financial liabilities

              1. 29 An entity is permitted to designate a previously recognised financial...

            4. Use of fair value as deemed cost

              1. 30 If an entity uses fair value in its opening IFRS...

            5. Use of deemed cost for investments in subsidiaries, jointly controlled...

              1. 31 Similarly, if an entity uses a deemed cost in its...

            6. Use of deemed cost for oil and gas assets

              1. 31A If an entity uses the exemption in paragraph D8A(b) for...

            7. Use of deemed cost for operations subject to rate regulation...

              1. 31B If an entity uses the exemption in paragraph D8B for...

            8. Interim financial reports

              1. 32 To comply with paragraph 23, if an entity presents an...

              2. 33 IAS 34 requires minimum disclosures, which are based on the...

        5. EFFECTIVE DATE

          1. 34 An entity shall apply this IFRS if its first IFRS...

          2. 35 An entity shall apply the amendments in paragraphs D1(n) and...

          3. 36 IFRS 3 Business Combinations (as revised in 2008) amended paragraphs...

          4. 37 IAS 27 Consolidated and Separate Financial Statements (as amended in...

          5. 38 Cost of an Investment in a Subsidiary, Jointly Controlled Entity...

          6. 39 Paragraph B7 was amended by Improvements to IFRSs issued in...

          7. 39A Additional Exemptions for First-time Adopters (Amendments to IFRS 1), issued...

          8. 39C Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters...

          9. 39E Improvements to IFRSs issued in May 2010 added paragraphs 27A,...

          10. 39F Disclosures—Transfers of Financial Assets (Amendments to IFRS 7), issued in...

          11. 39K Presentation of Items of Other Comprehensive Income (Amendments to IAS...

          12. 39L IAS 19 Employee Benefits (as amended in June 2011) amended...

        6. WITHDRAWAL OF IFRS 1 (ISSUED 2003)

          1. 40 This IFRS supersedes IFRS 1 (issued in 2003 and amended...

        7. Appendix A

          1. Defined terms

        8. Appendix B

          1. Exceptions to the retrospective application of other IFRSs

            1. B1 An entity shall apply the following exceptions:

            2. Derecognition of financial assets and financial liabilities

              1. B2 Except as permitted by paragraph B3, a first-time adopter shall...

              2. B3 Notwithstanding paragraph B2, an entity may apply the derecognition requirements...

            3. Hedge accounting

              1. B4 As required by IAS 39, at the date of transition...

              2. B5 An entity shall not reflect in its opening IFRS statement...

              3. B6 If, before the date of transition to IFRSs, an entity...

            4. Non-controlling interests

              1. B7 A first-time adopter shall apply the following requirements of IAS...

        9. Appendix C

          1. Exemptions for business combinations

            1. C1 A first-time adopter may elect not to apply IFRS 3...

            2. C2 An entity need not apply IAS 21 The Effects of...

            3. C3 An entity may apply IAS 21 retrospectively to fair value...

            4. C4 If a first-time adopter does not apply IFRS 3 retrospectively...

            5. C5 The exemption for past business combinations also applies to past...

        10. Appendix D

          1. Exemptions from other IFRSs

            1. D1 An entity may elect to use one or more of...

            2. Share-based payment transactions

              1. D2 A first-time adopter is encouraged, but not required, to apply...

              2. D3 A first-time adopter is encouraged, but not required, to apply...

            3. Insurance contracts

              1. D4 A first-time adopter may apply the transitional provisions in IFRS...

            4. Fair value or revaluation as deemed cost

              1. D5 An entity may elect to measure an item of property,...

              2. D6 A first-time adopter may elect to use a previous GAAP...

              3. D7 The elections in paragraphs D5 and D6 are also available...

              4. D8 A first-time adopter may have established a deemed cost in...

            5. Deemed cost

              1. D8A Under some national accounting requirements exploration and development costs for...

              2. D8B Some entities hold items of property, plant and equipment or...

            6. Leases

              1. D9 A first-time adopter may apply the transitional provisions in IFRIC...

              2. D9A If a first-time adopter made the same determination of whether...

            7. Employee benefits

              1. D10 . . . . . . . . . ....

              2. D11 . . . . . . . . . ....

            8. Cumulative translation differences

              1. D12 IAS 21 requires an entity:

              2. D13 However, a first-time adopter need not comply with these requirements...

            9. Investments in subsidiaries, jointly controlled entities and associates

              1. D14 When an entity prepares separate financial statements, IAS 27 (as...

              2. D15 If a first-time adopter measures such an investment at cost...

            10. Assets and liabilities of subsidiaries, associates and joint ventures

              1. D16 If a subsidiary becomes a first-time adopter later than its...

              2. D17 However, if an entity becomes a first-time adopter later than...

            11. Compound financial instruments

              1. D18 IAS 32 Financial Instruments: Presentation requires an entity to split...

            12. Designation of previously recognised financial instruments

              1. D19 IAS 39 permits a financial asset to be designated on...

            13. Fair value measurement of financial assets or financial liabilities at...

              1. D20 Notwithstanding the requirements of paragraphs 7 and 9, an entity...

            14. Decommissioning liabilities included in the cost of property, plant and...

              1. D21 IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities...

              2. D21A An entity that uses the exemption in paragraph D8A(b) (for...

            15. Financial assets or intangible assets accounted for in accordance with...

              1. D22 A first-time adopter may apply the transitional provisions in IFRIC...

            16. Borrowing costs

              1. D23 A first-time adopter may apply the transitional provisions set out...

            17. Transfers of assets from customers

              1. D24 A first-time adopter may apply the transitional provisions set out...

            18. Extinguishing financial liabilities with equity instruments

              1. D25 A first-time adopter may apply the transitional provisions in IFRIC...

        11. Appendix E

          1. Short-term exemptions from IFRSs

            1. Disclosures about financial instruments

              1. E3 A first-time adopter may apply the transition provisions in paragraph...

              2. E4 A first-time adopter may apply the transitional provisions in paragraph...

            2. Employee benefits

              1. E5 A first-time adopter may apply the transition provisions in paragraph...

      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 . . . . . . . . . ....

          3. 3A A share-based payment transaction may be settled by another group...

          4. 4 For the purposes of this IFRS, a transaction with an...

          5. 5 As noted in paragraph 2, this IFRS applies to share-based...

          6. 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...

            3. 12 Typically, shares, share options or other equity instruments are granted...

            4. 13 To apply the requirements of paragraph 10 to transactions with...

            5. 13A In particular, if the identifiable consideration received (if any) by...

          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...

              3. 21 Market conditions, such as a target share price upon which...

            3. Treatment of non-vesting conditions

              1. 21A Similarly, an entity shall take into account all non-vesting conditions...

            4. Treatment of a reload feature

              1. 22 For options with a reload feature, the reload feature shall...

            5. After vesting date

              1. 23 Having recognised the goods or services received in accordance with...

            6. If the fair value of the equity instruments cannot be...

              1. 24 The requirements in paragraphs 16-23 apply when the entity is...

              2. 25 If an entity applies paragraph 24, it is not necessary...

          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 a grant of equity instruments is cancelled or settled...

            4. 28A If an entity or counterparty can choose whether to meet...

            5. 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 the end...

        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...

            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. SHARE-BASED PAYMENT TRANSACTIONS AMONG GROUP ENTITIES (2009 AMENDMENTS)

          1. 43A For share-based payment transactions among group entities, in its separate...

          2. 43B The entity receiving the goods or services shall measure the...

          3. 43C The entity settling a share-based payment transaction when another entity...

          4. 43D Some group transactions involve repayment arrangements that require one group...

        8. 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...

          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,...

          7. 50 An entity shall disclose information that enables users of the...

          8. 51 To give effect to the principle in paragraph 50, the...

          9. 52 If the information required to be disclosed by this IFRS...

        9. 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...

        10. EFFECTIVE DATE

          1. 60 An entity shall apply this IFRS for annual periods beginning...

          2. 61 IFRS 3 (as revised in 2008) and Improvements to IFRSs...

          3. 62 An entity shall apply the following amendments retrospectively in annual...

          4. 63 An entity shall apply the following amendments made by Group...

        11. WITHDRAWAL OF INTERPRETATIONS

          1. 64 Group Cash-settled Share-based Payment Transactions issued in June 2009 supersedes...

        12. Appendix A

          Defined terms

        13. 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...

            2. B43 To apply the requirements of paragraph 27:

            3. B44 Furthermore, if the entity modifies the terms or conditions of...

          4. Share-based payment transactions among group entities (2009 amendments)

            1. B45 Paragraphs 43A–43C address the accounting for share-based payment transactions among...

            2. B46 Although the discussion below focuses on transactions with employees, it...

            3. B47 Four issues are commonly encountered in share-based payment transactions among...

            4. Share-based payment arrangements involving an entity’s own equity instruments

              1. B48 The first issue is whether the following transactions involving an...

              2. B49 The entity shall account for share-based payment transactions in which...

              3. B50 If the shareholder has an obligation to settle the transaction...

            5. Share-based payment arrangements involving equity instruments of the parent

              1. B51 The second issue concerns share-based payment transactions between two or...

              2. B52 Therefore, the second issue concerns the following share-based payment arrangements:...

              3. A parent grants rights to its equity instruments to the...

                1. B53 The subsidiary does not have an obligation to provide its...

                2. B54 The parent has an obligation to settle the transaction with...

              4. A subsidiary grants rights to equity instruments of its parent...

                1. B55 Because the subsidiary does not meet either of the conditions...

            6. Share-based payment arrangements involving cash-settled payments to employees

              1. B56 The third issue is how an entity that receives goods...

              2. B57 The subsidiary does not have an obligation to settle the...

              3. B58 Because the parent has an obligation to settle the transaction...

            7. Transfer of employees between group entities

              1. B59 The fourth issue relates to group share-based payment arrangements that...

              2. B60 If the subsidiary has an obligation to settle the transaction...

              3. B61 Such an employee, after transferring between group entities, may fail...

      33. INTERNATIONAL FINANCIAL REPORTING STANDARD 3

        Business Combinations

        1. OBJECTIVE

          1. 1. The objective of this IFRS is to improve the relevance,...

        2. SCOPE

          1. 2. This IFRS applies to a transaction or other event that...

        3. IDENTIFYING A BUSINESS COMBINATION

          1. 3. An entity shall determine whether a transaction or other event...

        4. THE ACQUISITION METHOD

          1. 4. An entity shall account for each business combination by applying...

          2. 5. Applying the acquisition method requires:

          3. Identifying the acquirer

            1. 6. For each business combination, one of the combining entities shall...

            2. 7. The guidance in IAS 27 Consolidated and Separate Financial Statements...

          4. Determining the acquisition date

            1. 8. The acquirer shall identify the acquisition date, which is the...

            2. 9. The date on which the acquirer obtains control of the...

          5. Recognising and measuring the identifiable assets acquired, the liabilities assumed...

            1. Recognition principle

              1. 10. As of the acquisition date, the acquirer shall recognise, separately...

              2. Recognition conditions

                1. 11. To qualify for recognition as part of applying the acquisition...

                2. 12. In addition, to qualify for recognition as part of applying...

                3. 13. The acquirer’s application of the recognition principle and conditions may...

                4. 14. Paragraphs B28–B40 provide guidance on recognising operating leases and intangible...

              3. Classifying or designating identifiable assets acquired and liabilities assumed in...

                1. 15. At the acquisition date, the acquirer shall classify or designate...

                2. 16. In some situations, IFRSs provide for different accounting depending on...

                3. 17. This IFRS provides two exceptions to the principle in paragraph...

            2. Measurement principle

              1. 18. The acquirer shall measure the identifiable assets acquired and the...

              2. 19. For each business combination, the acquirer shall measure at the...

              3. 20. Paragraphs B41–B45 provide guidance on measuring the fair value of...

            3. Exceptions to the recognition or measurement principles

              1. 21. This IFRS provides limited exceptions to its recognition and measurement...

              2. Exception to the recognition principle

                1. Contingent liabilities

                  1. 22. IAS 37 Provisions, Contingent Liabilities and Contingent Assets defines a...

                  2. 23. The requirements in IAS 37 do not apply in determining...

              3. Exceptions to both the recognition and measurement principles

                1. Income taxes

                  1. 24. The acquirer shall recognise and measure a deferred tax asset...

                  2. 25. The acquirer shall account for the potential tax effects of...

                2. Employee benefits

                  1. 26. The acquirer shall recognise and measure a liability (or asset,...

                3. Indemnification assets

                  1. 27. The seller in a business combination may contractually indemnify the...

                  2. 28. In some circumstances, the indemnification may relate to an asset...

              4. Exceptions to the measurement principle

                1. Reacquired rights

                  1. 29. The acquirer shall measure the value of a reacquired right...

                2. Share-based payment transactions

                  1. 30. The acquirer shall measure a liability or an equity instrument...

                3. Assets held for sale

                  1. 31. The acquirer shall measure an acquired non-current asset (or disposal...

          6. Recognising and measuring goodwill or a gain from a bargain...

            1. 32. The acquirer shall recognise goodwill as of the acquisition date...

            2. 33. In a business combination in which the acquirer and the...

            3. Bargain purchases

              1. 34. Occasionally, an acquirer will make a bargain purchase, which is...

              2. 35. A bargain purchase might happen, for example, in a business...

              3. 36. Before recognising a gain on a bargain purchase, the acquirer...

            4. Consideration transferred

              1. 37. The consideration transferred in a business combination shall be measured...

              2. 38. The consideration transferred may include assets or liabilities of the...

              3. Contingent consideration

                1. 39. The consideration the acquirer transfers in exchange for the acquiree...

                2. 40. The acquirer shall classify an obligation to pay contingent consideration...

          7. Additional guidance for applying the acquisition method to particular types...

            1. A business combination achieved in stages

              1. 41. An acquirer sometimes obtains control of an acquiree in which...

              2. 42. In a business combination achieved in stages, the acquirer shall...

            2. A business combination achieved without the transfer of consideration

              1. 43. An acquirer sometimes obtains control of an acquiree without transferring...

              2. 44. In a business combination achieved by contract alone, the acquirer...

          8. Measurement period

            1. 45. If the initial accounting for a business combination is incomplete...

            2. 46. The measurement period is the period after the acquisition date...

            3. 47. The acquirer shall consider all pertinent factors in determining whether...

            4. 48. The acquirer recognises an increase (decrease) in the provisional amount...

            5. 49. During the measurement period, the acquirer shall recognise adjustments to...

            6. 50. After the measurement period ends, the acquirer shall revise the...

          9. Determining what is part of the business combination transaction

            1. 51. The acquirer and the acquiree may have a pre-existing relationship...

            2. 52. A transaction entered into by or on behalf of the...

            3. Acquisition-related costs

              1. 53. Acquisition-related costs are costs the acquirer incurs to effect a...

        5. SUBSEQUENT MEASUREMENT AND ACCOUNTING

          1. 54. In general, an acquirer shall subsequently measure and account for...

          2. Reacquired rights

            1. 55. A reacquired right recognised as an intangible asset shall be...

          3. Contingent liabilities

            1. 56. After initial recognition and until the liability is settled, cancelled...

          4. Indemnification assets

            1. 57. At the end of each subsequent reporting period, the acquirer...

          5. Contingent consideration

            1. 58. Some changes in the fair value of contingent consideration that...

        6. DISCLOSURES

          1. 59. The acquirer shall disclose information that enables users of its...

          2. 60. To meet the objective in paragraph 59, the acquirer shall...

          3. 61. The acquirer shall disclose information that enables users of its...

          4. 62. To meet the objective in paragraph 61, the acquirer shall...

          5. 63. If the specific disclosures required by this and other IFRSs...

        7. EFFECTIVE DATE AND TRANSITION

          1. Effective date

            1. 64. This IFRS shall be applied prospectively to business combinations for...

            2. 64B. Improvements to IFRSs issued in May 2010 amended paragraphs 19,...

            3. 64C. Paragraphs 65A–65E were added by Improvements to IFRSs issued in...

          2. Transition

            1. 65. Assets and liabilities that arose from business combinations whose acquisition...

            2. 65A. Contingent consideration balances arising from business combinations whose acquisition dates...

            3. 65B. If a business combination agreement provides for an adjustment to...

            4. 65C. A business combination agreement may allow for adjustments to the...

            5. 65D. However, when a business combination agreement provides for such an...

            6. 65E. In some circumstances, the acquirer may be required to make...

            7. 66. An entity, such as a mutual entity, that has not...

          3. Income taxes

            1. 67. For business combinations in which the acquisition date was before...

        8. WITHDRAWAL OF IFRS 3 (2004)

          1. 68. This IFRS supersedes IFRS 3 Business Combinations (as issued in...

        9. Appendix A

          1. Defined terms

        10. Appendix B

          1. Application guidance

            1. BUSINESS COMBINATIONS OF ENTITIES UNDER COMMON CONTROL (APPLICATION OF PARAGRAPH...

              1. B1 This IFRS does not apply to a business combination of...

              2. B2 A group of individuals shall be regarded as controlling an...

              3. B3 An entity may be controlled by an individual or by...

              4. B4 The extent of non-controlling interests in each of the combining...

            2. IDENTIFYING A BUSINESS COMBINATION (APPLICATION OF PARAGRAPH 3)

              1. B5 This IFRS defines a business combination as a transaction or...

              2. B6 A business combination may be structured in a variety of...

            3. DEFINITION OF A BUSINESS (APPLICATION OF PARAGRAPH 3)

              1. B7 A business consists of inputs and processes applied to those...

              2. B8 To be capable of being conducted and managed for the...

              3. B9 The nature of the elements of a business varies by...

              4. B10 An integrated set of activities and assets in the development...

              5. B11 Determining whether a particular set of assets and activities is...

              6. B12 In the absence of evidence to the contrary, a particular...

            4. IDENTIFYING THE ACQUIRER (APPLICATION OF PARAGRAPHS 6 AND 7)

              1. B13 The guidance in IAS 27 Consolidated and Separate Financial Statements...

              2. B14 In a business combination effected primarily by transferring cash or...

              3. B15 In a business combination effected primarily by exchanging equity interests,...

              4. B16 The acquirer is usually the combining entity whose relative size...

              5. B17 In a business combination involving more than two entities, determining...

              6. B18 A new entity formed to effect a business combination is...

            5. REVERSE ACQUISITIONS

              1. B19 A reverse acquisition occurs when the entity that issues securities...

              2. Measuring the consideration transferred

                1. B20 In a reverse acquisition, the accounting acquirer usually issues no...

              3. Preparation and presentation of consolidated financial statements

                1. B21 Consolidated financial statements prepared following a reverse acquisition are issued...

                2. B22 Because the consolidated financial statements represent the continuation of the...

              4. Non-controlling interest

                1. B23 In a reverse acquisition, some of the owners of the...

                2. B24 The assets and liabilities of the legal acquiree are measured...

              5. Earnings per share

                1. B25 As noted in paragraph B22(d), the equity structure in the...

                2. B26 In calculating the weighted average number of ordinary shares outstanding...

                3. B27 The basic earnings per share for each comparative period before...

            6. RECOGNISING PARTICULAR ASSETS ACQUIRED AND LIABILITIES ASSUMED (APPLICATION OF PARAGRAPHS...

              1. Operating leases

                1. B28 The acquirer shall recognise no assets or liabilities related to...

                2. B29 The acquirer shall determine whether the terms of each operating...

                3. B30 An identifiable intangible asset may be associated with an operating...

              2. Intangible assets

                1. B31 The acquirer shall recognise, separately from goodwill, the identifiable intangible...

                2. B32 An intangible asset that meets the contractual-legal criterion is identifiable...

                3. B33 The separability criterion means that an acquired intangible asset is...

                4. B34 An intangible asset that is not individually separable from the...

                5. Reacquired rights

                  1. B35 As part of a business combination, an acquirer may reacquire...

                  2. B36 If the terms of the contract giving rise to a...

                6. Assembled workforce and other items that are not identifiable

                  1. B37 The acquirer subsumes into goodwill the value of an acquired...

                  2. B38 The acquirer also subsumes into goodwill any value attributed to...

                  3. B39 After initial recognition, an acquirer accounts for intangible assets acquired...

                  4. B40 The identifiability criteria determine whether an intangible asset is recognised...

            7. MEASURING THE FAIR VALUE OF PARTICULAR IDENTIFIABLE ASSETS AND A...

              1. Assets with uncertain cash flows (valuation allowances)

                1. B41 The acquirer shall not recognise a separate valuation allowance as...

              2. Assets subject to operating leases in which the acquiree is...

                1. B42 In measuring the acquisition-date fair value of an asset such...

              3. Assets that the acquirer intends not to use or to...

                1. B43 For competitive or other reasons, the acquirer may intend not...

              4. Non-controlling interest in an acquiree

                1. B44 This IFRS allows the acquirer to measure a non-controlling interest...

                2. B45 The fair values of the acquirer’s interest in the acquiree...

            8. MEASURING GOODWILL OR A GAIN FROM A BARGAIN PURCHASE

              1. Measuring the acquisition-date fair value of the acquirer’s interest in...

                1. B46 In a business combination achieved without the transfer of consideration,...

              2. Special considerations in applying the acquisition method to combinations of...

                1. B47 When two mutual entities combine, the fair value of the...

                2. B48 Although they are similar in many ways to other businesses,...

                3. B49 A fair value measurement of a mutual entity should include...

            9. DETERMINING WHAT IS PART OF THE BUSINESS COMBINATION TRANSACTION (APPLICATION...

              1. B50 The acquirer should consider the following factors, which are neither...

              2. Effective settlement of a pre-existing relationship between the acquirer and...

                1. B51 The acquirer and acquiree may have a relationship that existed...

                2. B52 If the business combination in effect settles a pre-existing relationship,...

                3. B53 A pre-existing relationship may be a contract that the acquirer...

              3. Arrangements for contingent payments to employees or selling shareholders (application...

                1. B54 Whether arrangements for contingent payments to employees or selling shareholders...

                2. B55 If it is not clear whether an arrangement for payments...

              4. Acquirer share-based payment awards exchanged for awards held by the...

                1. B56 An acquirer may exchange its share-based payment awards (replacement awards)...

                2. B57 To determine the portion of a replacement award that is...

                3. B58 The portion of the replacement award attributable to pre-combination service...

                4. B59 The portion of a non-vested replacement award attributable to post-combination...

                5. B60 The portion of a non-vested replacement award attributable to pre-combination...

                6. B61 The same requirements for determining the portions of a replacement...

                7. B62 The income tax effects of replacement awards of share-based payments...

              5. Equity-settled share-based payment transactions of the acquiree

                1. B62A The acquiree may have outstanding share-based payment transactions that the...

                2. B62B The market-based measure of unvested share-based payment transactions is allocated...

            10. OTHER IFRSS THAT PROVIDE GUIDANCE ON SUBSEQUENT MEASUREMENT AND ACCOUNTING...

              1. B63 Examples of other IFRSs that provide guidance on subsequently measuring...

            11. DISCLOSURES (APPLICATION OF PARAGRAPHS 59 AND 61)

              1. B64 To meet the objective in paragraph 59, the acquirer shall...

              2. B65 For individually immaterial business combinations occurring during the reporting period...

              3. B66 If the acquisition date of a business combination is after...

              4. B67 To meet the objective in paragraph 61, the acquirer shall...

            12. TRANSITIONAL PROVISIONS FOR BUSINESS COMBINATIONS INVOLVING ONLY MUTUAL ENTITIES OR...

              1. B68 Paragraph 64 provides that this IFRS applies prospectively to business...

              2. B69 The requirement to apply this IFRS prospectively has the following...

      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...

            2. 8 As an exception to the requirement in IAS 39, an...

            3. 9 Paragraph 8 applies equally to options to surrender a financial...

          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...

            2. 14 Nevertheless, this IFRS does not exempt an insurer from some...

            3. Liability adequacy test

              1. 15 An insurer shall assess at the end of each reporting...

              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...

            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...

            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...

              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...

            2. 32 An insurer acquiring a portfolio of insurance contracts may use...

            3. 33 The intangible assets described in paragraphs 31 and 32 are...

          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...

        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...

        5. EFFECTIVE DATE AND TRANSITION

          1. 40 The transitional provisions in paragraphs 41-45 apply both to an...

          2. 41 An entity shall apply this IFRS for annual periods beginning...

          3. 41A Financial guarantee contracts (amendments to IAS 39 and IFRS 4),...

          4. 41B IAS 1 (as revised in 2007) amended the terminology used...

          5. 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...

          6. 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...

            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...

          3. 4 Sometimes an entity disposes of a group of assets, possibly...

          4. 5 The measurement provisions of this IFRS do not apply to...

          5. 5A The classification, presentation and measurement requirements in this IFRS applicable...

          6. 5B This IFRS specifies the disclosures required in respect of non-current...

        3. CLASSIFICATION OF NON-CURRENT ASSETS (OR DISPOSAL GROUPS) AS HELD FOR...

          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. 8A An entity that is committed to a sale plan involving...

          5. 9 Events or circumstances may extend the period to complete the...

          6. 10 Sale transactions include exchanges of non-current assets for other non-current...

          7. 11 When an entity acquires a non-current asset (or disposal group)...

          8. 12 If the criteria in paragraphs 7 and 8 are met...

          9. 12A A non-current asset (or disposal group) is classified as held...

          10. 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...

          1. Measurement of a non-current asset (or disposal group)

            1. 15 An entity shall measure a non-current asset (or disposal group)...

            2. 15A An entity shall measure a non-current asset (or disposal group)...

            3. 16 If a newly acquired asset (or disposal group) meets the...

            4. 17 When the sale is expected to occur beyond one year,...

            5. 18 Immediately before the initial classification of the asset (or disposal...

            6. 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...

            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. 33A If an entity presents the items of profit or loss...

            5. 34 An entity shall re-present the disclosures in paragraph 33 for...

            6. 35 Adjustments in the current period to amounts previously presented in...

            7. 36 If an entity ceases to classify a component of an...

            8. 36A An entity that is committed to a sale plan involving...

          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...

        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...

          2. 44A IAS 1 (as revised in 2007) amended the terminology used...

          3. 44B IAS 27 (as amended by the International Accounting Standards Board...

          4. 44C Paragraphs 8A and 36A were added by Improvements to IFRSs...

          5. 44D Paragraphs 5A, 12A and 15A were added and paragraph 8...

          6. 44E Paragraph 5B was added by Improvements to IFRSs issued in...

          7. 44I Presentation of Items of Other Comprehensive Income (Amendments to IAS...

        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...

        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...

          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...

            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. Statement of financial position

            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 end of the reporting...

              2. 19 If, during the period, there were breaches of loan agreement...

          3. Statement of comprehensive income

            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 117 of IAS 1 Presentation of...

            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...

              2. 26 In disclosing fair values, an entity shall group financial assets...

              3. 27 An entity shall disclose for each class of financial instruments...

              4. 27A To make the disclosures required by paragraph 27B an entity...

              5. 27B For fair value measurements recognised in the statement of financial...

              6. 28 If the market for a financial instrument is not active,...

              7. 29 Disclosures of fair value are not required:

              8. 30 In the cases described in paragraph 29(b) and (c), an...

        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...

          3. 32A Providing qualitative disclosures in the context of quantitative disclosures enables...

          4. Qualitative disclosures

            1. 33 For each type of risk arising from financial instruments, an...

          5. Quantitative disclosures

            1. 34 For each type of risk arising from financial instruments, an...

            2. 35 If the quantitative data disclosed as at the end of...

            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...

        6. TRANSFERS OF FINANCIAL ASSETS

          1. 42A The disclosure requirements in paragraphs 42B–42H relating to transfers of...

          2. 42B An entity shall disclose information that enables users of its...

          3. 42C For the purposes of applying the disclosure requirements in paragraphs...

          4. Transferred financial assets that are not derecognised in their entirety...

            1. 42D An entity may have transferred financial assets in such a...

          5. Transferred financial assets that are derecognised in their entirety

            1. 42E To meet the objectives set out in paragraph 42B(b), when...

            2. 42F An entity may aggregate the information required by paragraph 42E...

            3. 42G In addition, an entity shall disclose for each type of...

          6. Supplementary information

            1. 42H An entity shall disclose any additional information that it considers...

        7. 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. 44A IAS 1 (as revised in 2007) amended the terminology used...

          4. 44B IFRS 3 (as revised in 2008) deleted paragraph 3(c). An...

          5. 44C An entity shall apply the amendment in paragraph 3 for...

          6. 44D Paragraph 3(a) was amended by Improvements to IFRSs issued in...

          7. 44E Reclassification of Financial Assets (Amendments to IAS 39 and IFRS...

          8. 44F Reclassification of Financial Assets — Effective Date and Transition (Amendments...

          9. 44G Improving Disclosures about Financial Instruments (Amendments to IFRS 7), issued...

          10. EFFECTIVE DATE AND TRANSITION

            1. 44G Improving Disclosures about Financial Instruments (Amendments to IFRS 7), issued...

            2. 44K Paragraph 44B was amended by Improvements to IFRSs issued in...

            3. 44L Improvements to IFRSs issued in May 2010 added paragraph 32A...

            4. 44M Disclosures—Transfers of Financial Assets (Amendments to IFRS 7), issued in...

            5. 44Q Presentation of Items of Other Comprehensive Income (Amendments to IAS...

        8. WITHDRAWAL OF IAS 30

          1. 45 This IFRS supersedes IAS 30 Disclosures in the financial statements...

        9. Appendix A

          Defined terms

          2. The following terms are defined in paragraph 11 of IAS...

          3. amortised cost of a financial asset or financial liability, available-for-sale...

        10. 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...

            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...

              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)...

          4. NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (PARAGRAPHS...

            1. B6 The disclosures required by paragraphs 31-42 shall be either given...

            2. Quantitative disclosures (paragraph 34)

              1. B7 Paragraph 34(a) requires disclosures of summary quantitative data about an...

              2. B8 Paragraph 34(c) requires disclosures about concentrations of risk. Concentrations of...

            3. Maximum credit risk exposure (paragraph 36(a))

              1. B9 Paragraph 36(a) requires disclosure of the amount that best represents...

              2. B10 Activities that give rise to credit risk and the associated...

            4. Quantitative liquidity risk disclosures (paragraphs 34(a) and 39(a) and (b))...

              1. B10A In accordance with paragraph 34(a) an entity discloses summary quantitative...

              2. B11 In preparing the maturity analyses required by paragraph 39(a) and...

              3. B11A In complying with paragraph 39(a) and (b), an entity shall...

              4. B11B Paragraph 39(b) requires an entity to disclose a quantitative maturity...

              5. B11C Paragraph 39(a) and (b) requires an entity to disclose maturity...

              6. B11D The contractual amounts disclosed in the maturity analyses as required...

              7. B11E Paragraph 39(c) requires an entity to describe how it manages...

              8. B11F Other factors that an entity might consider in providing the...

              9. B12 . . . . . . . . . ....

              10. B13 . . . . . . . . . ....

              11. B14 The amounts disclosed in the maturity analysis are the contractual...

              12. B15 . . . . . . . . . ....

              13. B16 . . . . . . . . . ....

            5. Market risk — sensitivity analysis (paragraphs 40 and 41)

              1. B17 Paragraph 40(a) requires a sensitivity analysis for each type of...

              2. B18 Paragraph 40(a) requires the sensitivity analysis to show the effect...

              3. B19 In determining what a reasonably possible change in the relevant...

              4. B20 Paragraph 41 permits an entity to use a sensitivity analysis...

              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...

                4. B28 Financial instruments that an entity classifies as equity instruments are...

          5. DERECOGNITION (PARAGRAPHS 42C–42H)

            1. Continuing involvement (paragraph 42C)

              1. B29 The assessment of continuing involvement in a transferred financial asset...

              2. B30 An entity does not have a continuing involvement in a...

              3. B31 Continuing involvement in a transferred financial asset may result from...

            2. Transferred financial assets that are not derecognised in their entirety...

              1. B32 Paragraph 42D requires disclosures when part or all of the...

            3. Types of continuing involvement (paragraphs 42E–42H)

              1. B33 Paragraphs 42E–42H require qualitative and quantitative disclosures for each type...

            4. Maturity analysis for undiscounted cash outflows to repurchase transferred assets...

              1. B34 Paragraph 42E(e) requires an entity to disclose a maturity analysis...

              2. B35 An entity shall use its judgement to determine an appropriate...

              3. B36 If there is a range of possible maturities, the cash...

            5. Qualitative information (paragraph 42E(f))

              1. B37 The qualitative information required by paragraph 42E(f) includes a description...

            6. Gain or loss on derecognition (paragraph 42G(a))

              1. B38 Paragraph 42G(a) requires an entity to disclose the gain or...

            7. Supplementary information (paragraph 42H)

              1. B39 The disclosures required in paragraphs 42D–42G may not be sufficient...

      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. 35A Paragraph 23 was amended by Improvements to IFRSs issued in...

          3. 36 Segment information for prior years that is reported as comparative...

          4. 36A IAS 1 (as revised in 2007) amended the terminology used...

          5. 36B IAS 24 Related Party Disclosures (as revised in 2009) amended...

        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...

          2. 9A IAS 1 (as revised in 2007) amended the terminology used...

        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...

        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...

          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...

          2. 14A An entity shall apply the amendments in paragraphs 6, 9,...

        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...

              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:

        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,...

            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...

      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...

          2. 2 Paragraph 19 of IAS 37 states that provisions are recognised...

          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 end of the reporting period, deferred tax items...

          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 . . . . . . . . . ....

          2. 2 . . . . . . . . . ....

          3. 3 . . . . . . . . . ....

          4. 4 . . . . . . . . . ....

          5. 5 . . . . . . . . . ....

        3. SCOPE

          1. 6 . . . . . . . . . ....

        4. ISSUE

          1. 7 . . . . . . . . . ....

        5. CONSENSUS

          1. 8 . . . . . . . . . ....

          2. 9 . . . . . . . . . ....

          3. 10 . . . . . . . . . ....

          4. 11 . . . . . . . . . ....

          5. 12 . . . . . . . . . ....

        6. EFFECTIVE DATE

          1. 13 . . . . . . . . . ....

        7. TRANSITION

          1. 14 . . . . . . . . . ....

      46. IFRIC INTERPRETATION 9

        Reassessment of embedded derivatives

        1. REFERENCES

        2. BACKGROUND

          1. 1 IAS 39 paragraph 10 describes an embedded derivative as ‘a...

          2. 2 IAS 39 paragraph 11 requires an embedded derivative to be...

        3. SCOPE

          1. 3 Subject to paragraphs 4 and 5 below, this interpretation applies...

          2. 4 This interpretation does not address remeasurement issues arising from a...

          3. 5 This interpretation does not apply to embedded derivatives in contracts...

        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. 7A The assessment whether an embedded derivative is required to be...

          3. 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...

          2. 10 Embedded Derivatives (Amendments to IFRIC 9 and IAS 39) issued...

          3. 11 Paragraph 5 was amended by Improvements to IFRSs issued in...

      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...

          2. 4 IAS 36 paragraph 124 states that ‘An impairment loss recognised...

          3. 5 IAS 39 paragraph 69 states that ‘Impairment losses recognised in...

          4. 6 IAS 39 paragraph 66 requires that impairment losses for financial...

          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 . . . . . . . . . ....

          5. 5 . . . . . . . . . ....

          6. 6 . . . . . . . . . ....

        3. CONSENSUS

          1. Share-based payment arrangements involving an entity's own equity instruments (paragraph...

            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 . . . . . . . . . ....

              2. 9 . . . . . . . . . ....

              3. 10 . . . . . . . . . ....

            2. A subsidiary grants rights to equity instruments of its parent...

              1. 11 . . . . . . . . . ....

        4. EFFECTIVE DATE

          1. 12 . . . . . . . . . ....

        5. TRANSITION

          1. 13 . . . . . . . . . ....

      49. IFRIC INTERPRETATION 12

        Service Concession Arrangements

        1. REFERENCES

        2. BACKGROUND

          1. 1 In many countries, infrastructure for public services — such as...

          2. 2 In some countries, governments have introduced contractual service arrangements to...

          3. 3 A feature of these service arrangements is the public service...

        3. SCOPE

          1. 4 This Interpretation gives guidance on the accounting by operators for...

          2. 5 This Interpretation applies to public-to-private service concession arrangements if:

          3. 6 Infrastructure used in a public-to-private service concession arrangement for its...

          4. 7 This Interpretation applies to both:

          5. 8 This Interpretation does not specify the accounting for infrastructure that...

          6. 9 This Interpretation does not specify the accounting by grantors.

        4. ISSUES

          1. 10 This Interpretation sets out general principles on recognising and measuring...

        5. CONSENSUS

          1. Treatment of the operator’s rights over the infrastructure

            1. 11 Infrastructure within the scope of this Interpretation shall not be...

          2. Recognition and measurement of arrangement consideration

            1. 12 Under the terms of contractual arrangements within the scope of...

            2. 13 The operator shall recognise and measure revenue in accordance with...

          3. Construction or upgrade services

            1. 14 The operator shall account for revenue and costs relating to...

            2. Consideration given by the grantor to the operator

              1. 15 If the operator provides construction or upgrade services the consideration...

              2. 16 The operator shall recognise a financial asset to the extent...

              3. 17 The operator shall recognise an intangible asset to the extent...

              4. 18 If the operator is paid for the construction services partly...

              5. 19 The nature of the consideration given by the grantor to...

          4. Operation services

            1. 20 The operator shall account for revenue and costs relating to...

            2. Contractual obligations to restore the infrastructure to a specified level...

              1. 21 The operator may have contractual obligations it must fulfil as...

          5. Borrowing costs incurred by the operator

            1. 22 In accordance with IAS 23, borrowing costs attributable to the...

          6. Financial asset

            1. 23 IASs 32 and 39 and IFRS 7 apply to the...

            2. 24 The amount due from or at the direction of the...

            3. 25 If the amount due from the grantor is accounted for...

          7. Intangible asset

            1. 26 IAS 38 applies to the intangible asset recognised in accordance...

          8. Items provided to the operator by the grantor

            1. 27 In accordance with paragraph 11, infrastructure items to which the...

        6. EFFECTIVE DATE

          1. 28 An entity shall apply this Interpretation for annual periods beginning...

        7. TRANSITION

          1. 29 Subject to paragraph 30, changes in accounting policies are accounted...

          2. 30 If, for any particular service arrangement, it is impracticable for...

        8. Appendix A

          1. APPLICATION GUIDANCE

            1. SCOPE (paragraph 5)

              1. AG1 Paragraph 5 of this Interpretation specifies that infrastructure is within...

              2. AG2 The control or regulation referred to in condition (a) could...

              3. AG3 For the purpose of condition (a), the grantor does not...

              4. AG4 For the purpose of condition (b), the grantor’s control over...

              5. AG5 Control should be distinguished from management. If the grantor retains...

              6. AG6 Conditions (a) and (b) together identify when the infrastructure, including...

              7. AG7 Sometimes the use of infrastructure is partly regulated in the...

              8. AG8 The operator may have a right to use the separable...

      50. IFRIC INTERPRETATION 13

        Customer Loyalty Programmes

        1. REFERENCES

        2. BACKGROUND

          1. 1 Customer loyalty programmes are used by entities to provide customers...

          2. 2 The programmes operate in a variety of ways. Customers may...

        3. SCOPE

          1. 3 This Interpretation applies to customer loyalty award credits that:

        4. ISSUES

          1. 4 The issues addressed in this Interpretation are:

        5. CONSENSUS

          1. 5 An entity shall apply paragraph 13 of IAS 18 and...

          2. 6 The consideration allocated to the award credits shall be measured...

          3. 7 If the entity supplies the awards itself, it shall recognise...

          4. 8 If a third party supplies the awards, the entity shall...

          5. 9 If at any time the unavoidable costs of meeting the...

        6. EFFECTIVE DATE AND TRANSITION

          1. 10 An entity shall apply this Interpretation for annual periods beginning...

          2. 10A Paragraph AG2 was amended by Improvements to IFRSs issued in...

          3. 11 Changes in accounting policy shall be accounted for in accordance...

        7. Appendix

          1. Application guidance

            1. Measuring the fair value of award credits

              1. AG1 Paragraph 6 of the consensus requires the consideration allocated to...

              2. AG2 An entity may estimate the fair value of award credits...

              3. AG3 In some circumstances, other estimation techniques may be available. For...

      51. IFRIC INTERPRETATION 14

        IAS 19 — The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

        1. REFERENCES

        2. BACKGROUND

          1. 1 Paragraph 64 of IAS 19 limits the measurement of a...

          2. 2 Minimum funding requirements exist in many countries to improve the...

          3. 3 Further, the limit on the measurement of a defined benefit...

          4. 3A In November 2009 the International Accounting Standards Board amended IFRIC...

        3. SCOPE

          1. 4 This Interpretation applies to all post-employment defined benefits and other...

          2. 5 For the purpose of this Interpretation, minimum funding requirements are...

        4. ISSUES

          1. 6 The issues addressed in this Interpretation are:

        5. CONSENSUS

          1. Availability of a refund or reduction in future contributions

            1. 7 An entity shall determine the availability of a refund or...

            2. 8 An economic benefit, in the form of a refund or...

            3. 9 The economic benefit available does not depend on how the...

            4. 10 In accordance with IAS 1, the entity shall disclose information...

            5. The economic benefit available as a refund The right to a refund

              1. 11 A refund is available to an entity only if the...

              2. 12 If the entity’s right to a refund of a surplus...

              3. 13 An entity shall measure the economic benefit available as a...

              4. 14 In measuring the amount of a refund available when the...

              5. 15 If the amount of a refund is determined as the...

            6. The economic benefit available as a contribution reduction

              1. 16 If there is no minimum funding requirement for contributions relating...

              2. 17 An entity shall determine the future service costs using assumptions...

          2. The effect of a minimum funding requirement on the economic...

            1. 18 An entity shall analyse any minimum funding requirement at a...

            2. 19 Contributions to cover any existing shortfall on the minimum funding...

            3. 20 If there is a minimum funding requirement for contributions relating...

            4. 21 An entity shall estimate the future minimum funding requirement contributions...

            5. 22 When an entity determines the amount described in paragraph 20(b),...

          3. When a minimum funding requirement may give rise to a...

            1. 23 If an entity has an obligation under a minimum funding...

            2. 24 To the extent that the contributions payable will not be...

            3. 25 . . . . . . . . . ....

            4. 26 The liability in respect of the minimum funding requirement and...

        6. EFFECTIVE DATE

          1. 27 An entity shall apply this Interpretation for annual periods beginning...

          2. 27A IAS 1 (as revised in 2007) amended the terminology used...

          3. 27B Prepayments of a Minimum Funding Requirement added paragraph 3A and...

          4. 27C IAS 19 (as amended in 2011) amended paragraphs 1, 6,...

        7. TRANSITION

          1. 28 An entity shall apply this Interpretation from the beginning of...

          2. 29 An entity shall apply the amendments in paragraphs 3A, 16–18...

      52. IFRIC INTERPRETATION 15

        Agreements for the Construction of Real Estate

        1. REFERENCES

        2. BACKGROUND

          1. 1 In the real estate industry, entities that undertake the construction...

          2. 2 For example, entities that undertake the construction of residential real...

          3. 3 Entities that undertake the construction of commercial or industrial real...

        3. SCOPE

          1. 4 This Interpretation applies to the accounting for revenue and associated...

          2. 5 Agreements in the scope of this Interpretation are agreements for...

        4. ISSUES

          1. 6 The Interpretation addresses two issues:

        5. CONSENSUS

          1. 7 The following discussion assumes that the entity has previously analysed...

          2. 8 Within a single agreement, an entity may contract to deliver...

          3. 9 The following discussion refers to an agreement for the construction...

          4. Determining whether the agreement is within the scope of IAS...

            1. 10 Determining whether an agreement for the construction of real estate...

            2. 11 IAS 11 applies when the agreement meets the definition of...

            3. 12 In contrast, an agreement for the construction of real estate...

          5. Accounting for revenue from the construction of real estate

            1. The agreement is a construction contract

              1. 13 When the agreement is within the scope of IAS 11...

              2. 14 The agreement may not meet the definition of a construction...

            2. The agreement is an agreement for the rendering of services...

              1. 15 If the entity is not required to acquire and supply...

            3. The agreement is an agreement for the sale of goods...

              1. 16 If the entity is required to provide services together with...

              2. 17 The entity may transfer to the buyer control and the...

              3. 18 The entity may transfer to the buyer control and the...

              4. 19 When the entity is required to perform further work on...

          6. Disclosures

            1. 20 When an entity recognises revenue using the percentage of completion...

            2. 21 For the agreements described in paragraph 20 that are in...

        6. AMENDMENTS TO THE APPENDIX TO IAS 18

          1. 22-23 [Amendment not applicable to bare, numbered Standards]

        7. EFFECTIVE DATE AND TRANSITION

          1. 24 An entity shall apply this Interpretation for annual periods beginning...

          2. 25 Changes in accounting policy shall be accounted for retrospectively in...

      53. IFRIC INTERPRETATION 16

        Hedges of a Net Investment in a Foreign Operation

        1. REFERENCES

        2. BACKGROUND

          1. 1 Many reporting entities have investments in foreign operations (as defined...

          2. 2 Hedge accounting of the foreign currency risk arising from a...

          3. 3 IAS 39 requires the designation of an eligible hedged item...

          4. 4 An entity with many foreign operations may be exposed to...

          5. 5 IAS 39 allows an entity to designate either a derivative...

          6. 6 IAS 21 and IAS 39 require cumulative amounts recognised in...

        3. SCOPE

          1. 7 This Interpretation applies to an entity that hedges the foreign...

          2. 8 This Interpretation applies only to hedges of net investments in...

        4. ISSUES

          1. 9 Investments in foreign operations may be held directly by a...

        5. CONSENSUS

          1. Nature of the hedged risk and amount of the hedged...

            1. 10 Hedge accounting may be applied only to the foreign exchange...

            2. 11 In a hedge of the foreign currency risks arising from...

            3. 12 The hedged risk may be designated as the foreign currency...

            4. 13 An exposure to foreign currency risk arising from a net...

          2. Where the hedging instrument can be held

            1. 14 A derivative or a non-derivative instrument (or a combination of...

            2. 15 For the purpose of assessing effectiveness, the change in value...

          3. Disposal of a hedged foreign operation

            1. 16 When a foreign operation that was hedged is disposed of,...

            2. 17 The amount reclassified to profit or loss from the foreign...

        6. EFFECTIVE DATE

          1. 18 An entity shall apply this Interpretation for annual periods beginning...

        7. TRANSITION

          1. 19 IAS 8 specifies how an entity applies a change in...

        8. Appendix

          1. Application guidance

            1. AG1 This appendix illustrates the application of the Interpretation using the...

            2. Nature of hedged risk for which a hedging relationship may...

              1. AG2 Parent can hedge its net investment in each of Subsidiaries...

            3. Amount of hedged item for which a hedging relationship may...

              1. AG3 Parent wishes to hedge the foreign exchange risk from its...

              2. AG4 The hedged item can be an amount of net assets...

              3. AG5 In the absence of hedge accounting, the total USD/EUR foreign...

              4. AG6 Parent cannot designate the US$300 million external borrowing in Subsidiary...

            4. Where in a group can the hedging instrument be held...

              1. AG7 As noted in paragraph AG5, the total change in value...

            5. Amounts reclassified to profit or loss on disposal of a...

              1. AG8 When Subsidiary C is disposed of, the amounts reclassified to...

            6. Hedging more than one foreign operation (paragraphs 11, 13 and...

              1. AG9 The following examples illustrate that in the consolidated financial statements...

            7. Parent holds both USD and GBP hedging instruments

              1. AG10 Parent may wish to hedge the foreign exchange risk in...

              2. AG11 The EUR/USD risk from Parent’s net investment in Subsidiary C...

              3. AG12 In the case described in paragraph AG10(b), if Parent designates...

            8. Subsidiary B holds the USD hedging instrument

              1. AG13 Assume that Subsidiary B holds US$300 million of external debt...

              2. AG14 However, the accounting for Parent’s £159 million loan payable to...

              3. AG15 If Parent reversed the hedging relationship designated by Subsidiary B,...

      54. IFRIC INTERPRETATION 17

        Distributions of Non-cash Assets to Owners

        1. REFERENCES

        2. BACKGROUND

          1. 1 Sometimes an entity distributes assets other than cash (non-cash assets)...

          2. 2 International Financial Reporting Standards (IFRSs) do not provide guidance on...

        3. SCOPE

          1. 3 This Interpretation applies to the following types of non-reciprocal distributions...

          2. 4 This Interpretation applies only to distributions in which all owners...

          3. 5 This Interpretation does not apply to a distribution of a...

          4. 6 In accordance with paragraph 5, this Interpretation does not apply...

          5. 7 In accordance with paragraph 5, this Interpretation does not apply...

          6. 8 This Interpretation addresses only the accounting by an entity that...

        4. ISSUES

          1. 9 When an entity declares a distribution and has an obligation...

        5. CONSENSUS

          1. When to recognise a dividend payable

            1. 10 The liability to pay a dividend shall be recognised when...

          2. Measurement of a dividend payable

            1. 11 An entity shall measure a liability to distribute non-cash assets...

            2. 12 If an entity gives its owners a choice of receiving...

            3. 13 At the end of each reporting period and at the...

          3. Accounting for any difference between the carrying amount of the...

            1. 14 When an entity settles the dividend payable, it shall recognise...

          4. Presentation and disclosures

            1. 15 An entity shall present the difference described in paragraph 14...

            2. 16 An entity shall disclose the following information, if applicable:

            3. 17 If, after the end of a reporting period but before...

        6. EFFECTIVE DATE

          1. 18 An entity shall apply this Interpretation prospectively for annual periods...

      55. IFRIC INTERPRETATION 18

        Transfers of Assets from Customers

        1. REFERENCES

        2. BACKGROUND

          1. 1 In the utilities industry, an entity may receive from its...

          2. 2 Transfers of assets from customers may also occur in industries...

          3. 3 In some cases, the transferor of the asset may not...

        3. SCOPE

          1. 4 This Interpretation applies to the accounting for transfers of items...

          2. 5 Agreements within the scope of this Interpretation are agreements in...

          3. 6 This Interpretation also applies to agreements in which an entity...

          4. 7 This Interpretation does not apply to agreements in which the...

        4. ISSUES

          1. 8 The Interpretation addresses the following issues:

        5. CONSENSUS

          1. Is the definition of an asset met?

            1. 9 When an entity receives from a customer a transfer of...

            2. 10 An entity that controls an asset can generally deal with...

          2. How should the transferred item of property, plant and equipment...

            1. 11 If the entity concludes that the definition of an asset...

          3. How should the credit be accounted for?

            1. 12 The following discussion assumes that the entity receiving an item...

            2. 13 Paragraph 12 of IAS 18 states that ‘ When goods...

          4. Identifying the separately identifiable services

            1. 14 An entity may agree to deliver one or more services...

            2. 15 Features that indicate that connecting the customer to a network...

            3. 16 A feature that indicates that providing the customer with ongoing...

            4. 17 Conversely, a feature that indicates that the obligation to provide...

          5. Revenue recognition

            1. 18 If only one service is identified, the entity shall recognise...

            2. 19 If more than one separately identifiable service is identified, paragraph...

            3. 20 If an ongoing service is identified as part of the...

          6. How should the entity account for a transfer of cash...

            1. 21 When an entity receives a transfer of cash from a...

        6. EFFECTIVE DATE AND TRANSITION

          1. 22 An entity shall apply this Interpretation prospectively to transfers of...

      56. IFRIC INTERPRETATION 19

        Extinguishing Financial Liabilities with Equity Instruments

        1. REFERENCES

        2. BACKGROUND

          1. 1 A debtor and creditor might renegotiate the terms of a...

        3. SCOPE

          1. 2 This Interpretation addresses the accounting by an entity when the...

          2. 3 An entity shall not apply this Interpretation to transactions in...

        4. ISSUES

          1. 4 This Interpretation addresses the following issues:

        5. CONSENSUS

          1. 5 The issue of an entity’s equity instruments to a creditor...

          2. 6 When equity instruments issued to a creditor to extinguish all...

          3. 7 If the fair value of the equity instruments issued cannot...

          4. 8 If only part of the financial liability is extinguished, the...

          5. 9 The difference between the carrying amount of the financial liability...

          6. 10 When only part of the financial liability is extinguished, consideration...

          7. 11 An entity shall disclose a gain or loss recognised in...

        6. EFFECTIVE DATE AND TRANSITION

          1. 12 An entity shall apply this Interpretation for annual periods beginning...

          2. 13 An entity shall apply a change in accounting policy in...

      57. SIC INTERPRETATION 7

        Introduction of the euro

        1. REFERENCES

        2. ISSUE

          1. 1 From 1 January 1999, the effective start of Economic and...

          2. 2 The issue is the application of IAS 21 to the...

        3. CONSENSUS

          1. 3 The requirements of IAS 21 regarding the translation of foreign...

          2. 4 This means that, in particular:

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      58. 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

      59. 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...

          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...

          4. 11 [Deleted]

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      60. 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...

          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...

          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...

      61. 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

      62. 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...

          2. 2 IAS 12.20 notes that the revaluation of an asset does...

          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

      63. 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

      64. 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...

          4. 6 The definitions and guidance in paragraphs 49-64 of the Framework...

          5. 7 Other obligations of an arrangement, including any guarantees provided and...

          6. 8 The criteria in paragraph 20 of IAS 18 shall be...

          7. 9 The fee shall be presented in the statement of comprehensive...

        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...

        5. DATE OF CONSENSUS

        6. EFFECTIVE DATE

      65. SIC INTERPRETATION 29

        Service Concession Arrangements: Disclosures

        1. REFERENCES

        2. ISSUE

          1. 1 An entity (the operator) may enter into an arrangement with...

          2. 2 A service concession arrangement generally involves the grantor conveying for...

          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. 6A An operator shall disclose the amount of revenue and profits...

          3. 7 The disclosures required in accordance with paragraph 6 of this...

        4. DATE OF CONSENSUS

        5. EFFECTIVE DATE

      66. 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

      67. 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...

        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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