Interpretation of International Financial Reporting Standards

Cover
Title Page
Copyright Page
Contents
About the Authors
Chapter 1 Introduction to International Financial Reporting Standards
Introduction
The Current Structure
Process of IFRS Standard-Setting
Appendix A: Current International Financial Reporting Standards (IAS/IFRS) And Interpretations (SIC/IFRIC)
Appendix B: IFRS For SMEs
Definition of SMEs
IFRS for SMEs is a Complete, Self-Contained Set of Requirements
Modifications of Full IFRS Made in the IFRS for SMEs
Disclosure Requirements Under the IFRS for SMEs
Maintenance of the IFRS for SMEs
Implications of the IFRS for SMEs
Application of the IFRS for SMEs
Chapter 2 Conceptual Framework
Introduction
Conceptual Framework for Financial Reporting 2018
Status and Purpose
1. The Objective of General-Purpose Financial Reporting
2. Qualitative Characteristics of Useful Financial Information
3. Financial Statements and the Reporting Entity
4. The Elements of Financial Statements
5. Recognition and Derecognition
6. Measurement
7. Presentation and Disclosure
8. Concepts of Capital and Capital Maintenance
Hierarchy of Standards
IFRS Practice Statement 1—Management
Commentary
Principles
Qualitative Characteristics
Presentation
Elements
Future Developments
US GAAP Comparison
Chapter 3 Presentation of Financial Statements
Introduction
Scope
Definitions of Terms
Financial Statements
Objective
Purpose of Financial Statements
General Features
Fair Presentation and Compliance with IFRS
Structure and Content
Complete Set of Financial Statements
Future Developments
Illustrative Financial Statements
US GAAP Comparison
Chapter 4 Statement of Financial Position
Introduction
Scope
Definitions of Terms
General Concepts, Structure
and Content
General Concepts
Structure and Content
Classification of Assets
Current Assets
Non-Current Assets
Other Assets
Classification of Liabilities
Current Liabilities
Non-Current Liabilities
Offsetting Assets and Liabilities
Classification of Shareholders’ Equity
Share Capital
Retained Earnings
Disclosure of Share Capital
Future Developments
US GAAP Comparison
Chapter 5 Statements Of Profit Or Loss and Other Comprehensive Income, and Changes In Equity
Introduction
Scope
Definitions of Terms
Other Terminology
Concepts of Income
Recognition and Measurement
Income
Expenses
Gains and Losses
Statement of Profit or Loss and Other
Comprehensive Income
Presentation in the Profit or Loss
Statement Title
Reporting Period
Comparative Information
Classification of Expenses
Aggregating Items
Offsetting Items of Income and Expense
Other Comprehensive Income
Reclassification Adjustments: An Example
Statement of Changes in Equity
Future developments
US GAAP Comparison
Chapter 6 Statement of Cash Flows
Introduction
Scope
Definitions of Terms
Background
Benefits of Statement of Cash Flows
Exclusion of Non-Cash Transactions
Components of Cash and Cash Equivalents
Presentation
Classifications in the Statement of Cash Flows
Reporting Cash Flows from Operating Activities
Other Requirements
Gross vs. Net Basis
Foreign Currency Cash Flows
Cash Flow per Share
Net Reporting by Financial Institutions
Reporting Futures, Forward Contracts, Options and Swaps
Reporting Extraordinary Items in the Statement of Cash Flows
Reconciliation of Cash and Cash Equivalents
Acquisitions and Disposals of Subsidiaries and Other Business Units
Disclosure and Examples
Changes in Liabilities Arising from Financing Activities
Consolidated Statement of Cash Flows
Future Developments
US GAAP Comparison
Chapter 7 Accounting Policies, Changes in Accounting Estimates And Errors
Introduction
Scope
Definitions of Terms
Importance of Comparability and
Consistency in Financial Reporting
Accounting Policy
Selecting Accounting Policies
Changes in Accounting Policies
Applying Changes in Accounting Policies
Retrospective Application
Impracticability Exception
Changes in Amortisation Method
Changes in Accounting Estimates
Correction of Errors
Example of the correction of a material error
Future Developments
US GAAP Comparison
Chapter 8 Inventories
Introduction
Definitions of Terms
Recognition and Measurement
Basic Concept of Inventory Costing
Ownership of Goods
Accounting for Inventories
Valuation of Inventories
Methods of Inventory
Specific Identification
First-In, First-Out
Weighted-Average Cost
Net Realisable Value
Other Valuation Methods
Disclosure Requirements
Examples of Financial Statement
Disclosures
US GAAP Comparison
Chapter 9 Property, Plant and Equipment
Introduction
Definitions of Terms
Recognition and Measurement
Initial Measurement
Costs Incurred After Purchase or Self-Construction
Depreciation methods based on time
Leasehold Improvements
Revaluation of Property, Plant and Equipment
Derecognition
Example of accounting for asset disposal
Disclosures
Example of reconciliation of asset carrying amounts
Non-Monetary (Exchange) Transactions
Transfers of Assets from Customers
Examples of Financial Statement
Disclosures
US GAAP Comparison
Chapter 10 Borrowing Costs
Introduction
Definitions of Terms
Recognition and Measurement
Capitalisation of Borrowing Costs
Carrying Amount in Excess
of Recoverable Amounts
Disclosure Requirements
Annual Improvements to IFRS Standards 2015–2017 Cycle
US GAAP Comparison
Chapter 11 Intangible Assets
Introduction
Scope
Definitions of Terms
Recognition and Measurement
Nature of Intangible Assets
Recognition Criteria
Measurement of the Cost of Intangibles
Internally Generated Intangibles other than Goodwill
Costs Not Satisfying the IAS 38 Recognition Criteria
Subsequently Incurred Costs
Measurement Subsequent to Initial Recognition
Amortisation Period
Residual Value
Impairment Losses
Derecognition of Intangible Assets
Website Development and Operating Costs
Disclosures
Example of Financial Statement
Disclosure
US GAAP Comparison
Chapter 12 Investment Property
Introduction
Definitions of Terms
Identification
Apportioning Property between Investment Property and Owner-Occupied Property
Property Leased to a Subsidiary or a Parent Company
Interrelationship between IFRS 3 and IAS 40
Recognition and Measurement
Recognition
Measurement
Presentation and Disclosure
Presentation
Disclosure
Examples of Financial Statement
Disclosures
US GAAP Comparison
Chapter 13 Impairment of Assets and Non-Current Assets Held for Sale
Introduction
Definitions of Terms: Impairment of
Assets
Impairment of Assets (IAS 36)
Scope of IAS 36
Principal Requirements of IAS 36
Identifying Impairments
Computing Recoverable Amounts—General Concepts
Determining Fair Value Less Costs to Sell
Computing Value in Use
Cash-Generating Units
Discount Rate
Corporate Assets
Accounting for Impairments
Reversals of Impairments under the Historical Cost Method of Accounting
Reversals of Impairments under the Revaluation Method
Insurance and Other Recoveries
Disclosure Requirements
Examples of Financial Statement
Disclosures
Future Developments
Definitions of Terms: Non-Current
Assets Held for Sale
Non-Current Assets Held for Sale
Held-for-sale Classification
Measurement of Non-Current Assets Held for Sale
Change of Plans
Presentation and Disclosure
Discontinued operations
Presentation and Disclosure
Examples of Financial Statement
Disclosures
US GAAP Comparison
Chapter 14 Consolidations, Joint Arrangements, Associates and Separate Financial Statements
Introduction
Definitions of Terms
Consolidated Financial Statements
Scope
Identification of a subsidiary
Power
Majority of Voting Rights
Less Than a Majority of Voting Rights
Exposure, or Rights, to Variable Returns from an Investee
Link between Power and Returns
Example of a Fund Manager
Other Arrangements
Consolidation Procedures
Investment Entities
Examples of Financial Statement
Disclosures
Joint Arrangements
Joint Arrangements
Types of Joint Arrangement
Assessment Questions
Accounting for Joint Operations
Accounting for Joint Ventures
Separate Financial Statements
Associates
Accounting for an Associate
Equity Method of Accounting
The Equity Method
Accounting for Changes in Ownership Interest
Examples of Financial Statement
Disclosures
Impairment of the Value of Equity-MethodInvestments
Other Requirements of IAS 28
Separate Financial Statements
Investment Entities
Disclosure in Separate Financial Statements
Disclosure Requirements
Main Objective
Significant Judgements and Assumptions
Interests in Subsidiaries
Interests in Joint Arrangements and Associates
Interests in Unconsolidated Structured Entities
Investment Entities
Future Developments
US GAAP Comparison
Chapter 15 Business Combinations
Introduction
Background
Definitions of Terms
Business Combinations and
Consolidations
Scope
Business Combinations
Determining Fair Value
Transactions and Events Accounted for as Business Combinations
Qualifying as a Business
Techniques for Structuring Business Combinations
Accounting for Business Combinations under the Acquisition Method
Exceptions to the Recognition Principle
Exceptions to Both the Recognition and Measurement Principles
Exceptions to the Measurement Principle
Disclosure Requirements
Recognising and Measuring the Identifiable Assets Acquired and Liabilities Assumed
Goodwill and Gain from a Bargain Purchase
Footnote Disclosure: Acquisitions
Examples of Financial Statement
Disclosures
25.2 Consideration transferred
25.3 Assets acquired and liabilities assumed at the date of acquisition
25.4 Non-controlling interest
25.5 Impact of acquisitions on the results of the group
Future Developments
US GAAP Comparison
Chapter 16 Shareholders’ Equity
Introduction
Definitions of Terms
Recognition and Measurement
Presentation and Disclosure
Types of Shares
Presentation and Disclosures Relating to Share Capital
Presentation and Disclosures Relating to Other Equity
Classification Between Liabilities and
Equity
Puttable Instruments
Compound Financial Instruments
Share Issuances and Related Matters
Additional Guidance Relative to Share Issuances and Related Matters
Compound and Convertible Equity Instruments
Retained Earnings
Dividends and Distributions
Accounting for Treasury Share Transactions
Members’ Shares in Co-operative Entities
Future Developments
Examples of Financial Statement
Disclosures
US GAAP Comparison
Chapter 17 Share-Based Payment
Introduction
Scope
Definitions of Terms
Overview
Recognition and Measurement
Example—Construction services settled by issuing shares
Recognition When There are Vesting Conditions
Equity-Settled Share-Based Payments
Goods and Services
Employees
Service Conditions
Market and Non-Market Performance Conditions
Measurement of Fair Value
Modifications and Cancellations to the Terms and Conditions
If the Modification Increases the Fair Value
If the Modification Decreases the Fair Value
Cancellations and Settlements
Cash-Settled Share-Based Payments
Measurement
Treatment of Vesting and Non-Vesting Conditions
Share-Based Payment Transactions with a Net Settlement Feature for Withholding Tax Obligations
Modifications to the Terms and Conditions of a Cash-Settled Share-Based Payment
Share-Based
Payment Transactions With Cash Alternatives
Example—Where choice of settlement in cash and equity is with the counterparty
Share-Based Transactions Among Group Entities
Example—Parent company granting stock options to the employees of its subsidiary
Disclosure
Financial Statement Presentation under IFRS
Examples of Financial Statement Disclosures
US GAAP Comparison
Appendix: Employee Share Options Valuation Example Under IFRS
Employee Share Options: Valuation Models
Chapter 18 Current Liabilities, Provisions, Contingencies and Events After the Reporting Period
Introduction
Definitions of Terms
Recognition and Measurement
Current Liabilities
Amount and Payee Known
Payee Known but Amount May Need to Be Estimated
Disclosures
Example footnote illustrating disclosures required under IAS 37 with respect to provisions
Practical Examples
Dry-Docking Costs
Unlawful Environmental Damage
Onerous Contracts
Decommissioning Costs
Levies
Payee Unknown and the Amount May Have to Be Estimated
Contingent Liabilities
Financial Guarantee Contracts
Contingent Assets
Disclosures Prescribed by IAS 37 for Contingent Liabilities and Contingent Assets
Reporting Events Occurring After the Reporting Period
Examples of Financial Statement Disclosures
US GAAP Comparison
Chapter 19 Employee Benefits
Introduction
Definitions of Terms
Background
Importance of Pension and Other Benefit Plan Accounting
Basic Objectives of Accounting for Pension and Other Benefit Plan Costs
Basic Principles of IAS 19
Applicability: Pension Plans
Applicability: Other Employee Benefit Plans
Cost Recognition Distinguished from Funding Practices
Post-Employment
Benefit Plans
General Discussion
Periodic Measurement of Cost for Defined Contribution Plans
Periodic Measurement of Cost for Defined Benefit Plans
Current Service Cost
Interest on the Accrued Benefit Obligation
The Expected Return on Plan Assets
Actuarial Gains and Losses
Past Service Costs
Transition Adjustment
Employer’s Liability and Assets
Minimum Funding Requirement
IFRIC 14: IAS 19—The Limit on a Defined Benefit Asset, Minimum Funding Requirements and Their Interaction
Other Pension Considerations
Multiple and Multi-Employer Plans
Disclosures for Post-Employment
Benefit Plans
Examples of Financial Statement
Disclosures
Other Employee Benefits
Short-Term Employee Benefits
Other Post-Retirement Benefits
Other Long-Term Employee Benefits
Termination Benefits
Future Developments
US GAAP Comparison
Chapter 20 Revenue from Contracts with Customers
Introduction
Definitions of Terms
Scope
The Revenue Model
The Core Principle and Steps
Contract Cost
Incremental Costs of Obtaining a Contract
Presentation
Statement of Financial Position
Disclosure
Example of Financial Statement
Disclosures
Specific Transactions in IFRS 15
Sale with a Right of Return
Warranties
Principal versus Agent Considerations
Other Specific Transactions
Service Concession Arrangements
Services or assets obtained for no consideration
Future Developments
US GAAP Comparison
Chapter 21 Government Grants
Introduction
Scope
Government Grants
Definitions of Terms
Recognition of Government Grants
Criteria for Recognition
Recognition Period
Non-Monetary Grants
Presentation and Disclosure
Presentation of Grants Related to Assets
Presentation of Grants Related to Income
Disclosures
Other Issues
Repayment of Government Grants
Impairment of Assets and Government Grants
Government Assistance
Service Concessions
Service Concession Arrangements
Accounting under the Financial Asset Model
Accounting under the Intangible Asset Model
Operating Revenue
Accounting by the Government (Grantor)
US GAAP Comparison
Chapter 22 Leases
Introduction
Definitions of Terms
Classification of Leases
Classification of Leases—Lessee
Classification of Leases—Lessor
Different Types of Finance Leases
Recognition and Measurement
Accounting for Leases—Lessee
Accounting for Leases—Lessor
Lease Modifications
Disclosure Requirements
Lessee Disclosures
Lessor Disclosures
Examples of Financial Statement
Disclosures
Future Developments
US GAAP Comparison
Chapter 23 Foreign Currency
Introduction
Definitions of Terms
Scope, Objectives and Discussion of
Definitions
Functional Currency
Monetary and Non-MonetaryItems
Foreign Currency Transactions
Translation of Foreign Currency
Financial Statements
Translation of Functional Currency Financial Statements into a Presentation Currency
Translation (Remeasurement) of Financial Statements into a Functional Currency
Net Investment in a Foreign Operation
Consolidation of Foreign Operations
Taxation Effect
Guidance Applicable to Special
Situations
Non-ControllingInterests
Goodwill and Fair Value Adjustments
Exchange Differences Arising From Elimination of Intragroup Balances
Different Reporting Dates
Disposal of a Foreign Operation
Change in Functional Currency
Reporting a Foreign Operation’s Inventory
Translation of Foreign Currency Transactions in Further Detail
Disclosure
Hedging
Hedging a Net Investment in a Foreign Operation or Foreign Currency Transaction
Currency of Monetary Items Comprising Net Investment in Foreign Operations
Examples of Financial Statement
Disclosures
US GAAP Comparison
Disclosure
Chapter 24 Financial Instruments
Introduction
Introduction to IFRS 9
Objective
Scope
Definitions of Terms
Recognition, Measurement and
Derecognition of Financial Instruments
Initial Recognition
Initial Measurement
Initial Measurement: Transaction Costs
Fair Value on Initial Recognition?
Financial Assets
Classification of Financial Assets—Decision Tree
Cash flow characteristics
Fair Value Through Other Comprehensive Income (FVTOCI)
Amortised Cost
Subsequent Measurement of Financial Assets
Investments in Equity Instruments
Reclassification of Financial Assets
Derecognition of Financial Assets
Transferring of Financial Assets
Transferring of Financial Assets that Qualify for Derecognition
Transferring of Financial Assets that do not Qualify for Derecognition
Continuing Involvement in Transferred Financial Assets
Financial Liabilities
Classification of Financial Liabilities
Subsequent Measurement of Financial
Liabilities
Liabilities Designated as at Fair Value Through Profit or Loss and Recognition of Own Credit Risk-Related Fair Value Changes
Reclassification of Financial Liabilities
Embedded Derivatives
Financial Instruments Measured at
Amortised Cost
Dealing with changes in cash flows subsequent to the initial calculation of the effective interest rate
Modification of contractual cash flows
Write-off
Fair Valuation Gains and Losses
Recognition of Foreign Exchange Gains and Losses
Impairment of Financial Instruments
A Simplified Decision Tree
Determining Significant Increases in Credit Risk Since Initial Recognition
Instruments Determined to Have Low Credit Risk at the Reporting Date
Collective and Individual Assessment Basis for Determining Significant Increases in Credit Risk
Reasonable and Supportable Forward-Looking Information
Modified Financial Assets
Purchased or Originated Credit-Impaired Financial Assets
Simplified Approach for Trade Receivables, Contract Assets and Lease Receivables
Measurement of Expected Credit Losses and Applying Probabilities
Impact of Collateral
Hedge Accounting
Derivatives
Objective and Scope of Hedge Accounting
Qualifying Criteria for Hedge Accounting
Designation of Hedging Instruments
Designation of Hedged Items
Components of a Nominal Amount
Relationship Between Components and the Total Cash Flows of an Item
Designation of Financial Items as Hedged Items
Hedge Effectiveness
Rebalancing the Hedging Relationship and Changes to the Hedge Ratio
Discontinuation of Hedge Accounting
Fair Value Hedges
Cash Flow Hedges
Hedges of a Net Investment in a Foreign Operation
Accounting for the Time Value of Options
Accounting for the Forward Element of Forward Contracts
Hedges of a Group of Items
Designation of a Component of a Nominal Amount
Layers of Groups of Items Designated as the Hedged Item
Effective Date and Transition
Requirements of IFRS 9
Impracticability
Impairment
Classification and Measurement
Presentation of Financial Instruments
under IAS 32
Distinguishing Liabilities from Equity
Puttable Financial Instruments
Settlement in the Entity’s Own Equity Instruments
Interests in Cooperatives
Convertible Debt Instruments
Features of Convertible Debt Instruments
Classification of Compound Instruments
Debt Instruments Issued with Share Warrants
Instruments Having Contingent Settlement Provisions
Treasury Shares
Reporting Interest, Dividends, Losses and Gains
Offsetting Financial Assets and Liabilities
Disclosures
Disclosures Required under IFRS 7
Applicability of IFRS 7
Classes of Financial Instruments and Level of Disclosure
Disclosures Relating to Reclassifications
Offsetting Financial Assets and Financial Liabilities
Example: Financial Assets Subject to
Offsetting, Enforceable Master Netting
Arrangements and Similar Agreements
Example: Financial Liabilities Subject
to Offsetting, Enforceable Master
Netting Arrangements and Similar
Agreements
Example: Net Financial Assets Subject
to Enforceable Master Netting Arrangements
And Similar Agreements, by
Counterparty
Collateral
Loss Allowances for Financial Assets Measured at FVTOCI
Certain Compound Instruments
Defaults and Breaches
Disclosures in the Statements of Comprehensive Income and Changes in Equity
Accounting Policies Disclosure
Hedging Disclosures
Fair Value Disclosures
Disclosures About the Nature and Extent of Risks Flowing from Financial Instruments
Credit Risk Disclosures
Market Risk Disclosures
Disclosures Required on Initial Application of IFRS 9
Future Developments
US GAAP
Chapter 25 Fair Value
Introduction
Scope
Definitions of Terms
Fair Value Measurement Principles
and Methodologies
Item Identification and Unit of Account
The Principal or Most Advantageous Market
Market Participants
Selection of the Valuation Premise for Asset Measurements
Risk Assumptions When Valuing a Liability
Liabilities and Equity Instruments Held by Other (Third) Parties as an Asset
Liabilities and Equity Instruments Not Held by Other (Third) Parties as an Asset
Measurement Considerations
Fair Value Disclosure
Future Developments
US GAAP Comparison
Chapter 26 Income Taxes
Introduction
Scope
Definitions of Terms
Identification
Recognition and Measurement
of Current Tax
Recognition of Current Tax
Measurement of Current Tax
Recognition and Measurement
of Deferred Tax
Recognition of Deferred Tax
Measurement of Deferred Tax Assets
Recognition in Profit or Loss
Calculation of Deferred Tax Asset or
Liability
Identification of Temporary Differences
Identification of Exemptions
Identification of Unused Tax Losses or Tax Credits
Calculation and Measurement of Deferred Tax Assets and Liabilities
Limitation on the Recognition of Deferred Tax Assets
Effect of Changed Circumstances
Uncertainties over Income Tax Treatments
Effect of Tax Law Changes on Previously Recorded Deferred Tax Assets and Liabilities
Reporting the Effect of Tax Status Changes
Implications of Changes in Tax Rates and Status Made in Interim Periods
Specific Transactions
Income Tax Consequences of Dividends Paid
Accounting for Business Combinations at the Acquisition Date
Accounting for Business Combinations after the Acquisition
Temporary Differences in Consolidated Financial Statements
Assets Carried at Fair Value
Tax on Investments in Subsidiaries, Associates and Joint Ventures
Tax Effects of Compound Financial Instruments
Share-Based Payment Transactions
Presentation and Disclosure
Presentation
Disclosures
Example of Financial Statement
Disclosures
Future Developments
US GAAP Comparison
Chapter 27 Earnings Per Share
Introduction
Scope
Definitions of Terms
Concepts, Rules and Examples
Simple Capital Structure
Complex Capital Structure
Determining Dilution Effects
Contingent Issuances of Ordinary Shares
Contracts Which May Be Settled in Shares or for Cash
Sequencing of Dilution Effects
Presentation and Disclosure Requirements under IAS 33
Example of Financial Statement
Disclosures
US GAAP Comparison
Chapter 28 Operating Segments
Introduction
Scope
Definitions of Terms
Identification
Concepts and Requirements
Operating Segments and Reportable Segments
Disclosure Requirements
Example of Financial Statement
Disclosures Under IFRS
Net Trade Receivables
Major Customers
US GAAP Comparison
Chapter 29 Related Party Disclosures
Introduction
Definitions of Terms
Identification
The Need for Related Party Disclosures
Scope of the Standard
Applicability
Substance over Form
Significant Influence
Disclosures
Financial Statement Disclosures
Disclosure of Parent-Subsidiary Relationships
Disclosures to Be Provided
Comparatives
Government-Related Entities
Example of Financial Statement
Disclosures under IFRS
US GAAP Comparison
Chapter 30 Accounting and Reporting By Retirement Benefit Plans
Introduction
Definitions of Terms
Scope
Defined Contribution Plans
Defined Benefit Plans
Disclosures
US GAAP Comparison
Chapter 31 Agriculture
Introduction
Scope
Definitions of Terms
Identification
Recognition and Measurement
Basic Principles of IAS 41
Determining Fair Values
Recognition and Measurement
Presentation and Disclosures
Financial Statement Presentation
Examples of Financial Statement
Disclosures
Sappi 201X Integrated Report at September 202X
Other Issues
Agricultural Land
Intangible Assets Related to Agriculture
US GAAP Comparison
Chapter 32 Extractive Industries
Introduction
Definitions of Terms
Exploration and Evaluation of Mineral
Resources
Background
IFRS 6 in Greater Detail
Cash-Generating Units for Exploration and Evaluation Assets
Assets Subject to IFRS 6
Categorisation
Availability of Cost or Revaluation Models
Financial Statement Classification
Disclosure Requirements under IFRS 6
Example of Financial Statement
Disclosures
IFRIC 20, Stripping Costs in the
Production Phase of a Surface Mine
Example of Financial Statement
Disclosures
Future Developments
US GAAP Comparison
Chapter 33 Accounting for Insurance Contracts
Introduction
Definitions of Terms
Insurance Contracts
Insurance Risk
Recognition and Measurement Guidance
Adequacy of Insurance Liabilities
Selection of Accounting Principles
Unbundling
Recognition
Discretionary Participation Features in Insurance Contracts
Embedded Derivatives
Disclosure
Applying IFRS 9 with IFRS 4
Transitional Provisions
IFRS 17, Insurance Contracts
Scope
Identification and Unbundling
The Fulfilment Value Approach
The Premium Allocation Approach
Combination of Insurance Contracts
Identifying Groups and Portfolios
Recognition of Insurance Contracts
Liability for Remaining Coverage and Liability for Incurred Claims
Reinsurance Contracts
Contracts with Participation Features
Modification and Derecognition
Presentation
Disclosure
Transition
US GAAP Comparison
Chapter 34 Interim Financial Reporting
Introduction
Scope
Definitions of Terms
Objectives of Interim Financial
Reporting
Application of Accounting Policies
Consistency
Consolidated Reporting Requirement
Restatement of Accounting Policies
Materiality as Applied to Interim Financial Statements
Presentation
Content of an Interim Financial Report
Minimum Components of an Interim Financial Report
Form and Content of Interim Financial Statements
Significant Events and Transactions
Other Disclosures
Comparative Interim Financial Statements
Recognition and Measurement Issues
General Concepts
Application of the Recognition and Measurement Basis
Revenues Received Seasonally, Cyclically or Occasionally
Recognition of Annual Costs Incurred Unevenly during the Year
Income Taxes
Difference in Financial Reporting Year and Tax Year
Multiplicity of Taxing Jurisdictions and Different Categories of Income
Tax Credits
Tax Loss Tax Credit Carrybacks and Carryforwards
Volume Rebates or Other Anticipated Price Changes in Interim Reporting Periods
Depreciation and Amortisation in Interim Periods
Inventories
Foreign Currency Translation Adjustments at Interim Dates
Use of Estimates in Interim Periods
Impairment of Assets in Interim Periods
Interim Financial Reporting in Hyperinflationary Economies
US GAAP Comparison
Chapter 35 Hyperinflation
Introduction
Financial Reporting in Hyperinflationary
Economies
Severe Hyperinflation According to IFRS 1
Restating Historical Cost Financial Statements under Hyperinflation Conditions
Restating Current Cost Financial Statements under Hyperinflation Conditions
Comparative Financial Statements
Consolidated Financial Statements
Other Disclosure Issues
Economies which Cease Being Hyperinflationary
Guidance on Applying the Restatement Approach
US GAAP Comparison
Appendix: Monetary Vs.
Non-Monetary
Items
Chapter 36 First-Time Adoption of International Financial Reporting Standards
Introduction
Definitions of Terms
First-Time
Adoption Guidance
Objective and Scope of IFRS 1
Key Dates
Steps in Transition to IFRS
Selection of Accounting Policies
Opening IFRS Statement of Financial Position
Mandatory Exceptions to the Retrospective Application of Other IFRS
Optional Exemptions
Business Combinations
Deemed Cost
Leases
Below Market Rate Government Loans
Cumulative Translation Differences
Investments in Subsidiaries, Jointly Controlled Entities and Associates
Assets and Liabilities of Subsidiaries, Associates and Joint Ventures
Compound Financial Instruments
Designation of Previously Recognised Financial Instruments
Fair Value Measurement of Financial Assets or Financial Liabilities at Initial Recognition
Decommissioning Liabilities included in the Cost of Property, Plant and Equipment
Service Concession Arrangements
Borrowing Costs
Severe Hyperinflation
Presentation and Disclosure
Explanation of Transition to IFRS
Comparative Information
Reconciliations
Other Disclosures
Interim Reporting
Options With and Within the Accounting Standards
Transition from US GAAP to IFRS: The Case of DaimlerChrysler
Index
EULA