Meenakshi chawla (Ph.

d) IFRS 4 Shadow accounting insurance Shadow accounting insurance Paragraph 30 of IFRS 4 permits, but does not require, a practice sometimes described as ‘shadow accounting’. The example below illustrates shadow accounting. Shadow accounting is not the same as fair value hedge accounting under IAS 39 and will not usually have the same effect. Under IAS 39, a non-derivative financial asset or non-derivative financial liability may be designated as a hedging instrument only for a hedge of foreign currency risk. Shadow accounting is not applicable for liabilities arising from investment contracts (ie contracts within the scope of IFRS 9) because the underlying measurement of those liabilities (including the treatment of related transaction costs) does not depend on asset values or asset returns. However, shadow accounting may be applicable for a discretionary participation feature within an investment contract if the measurement of that feature depends on asset values or asset returns.

Shadow accounting is not applicable if the measurement of an insurance liability is not driven directly by realised gains and losses on assets held. For example, assume that financial assets are measured at fair value and insurance liabilities are measured using a discount rate that reflects current market rates but does not depend directly on the actual assets held. The measurements of the assets and the liability both reflect changes in interest rates, but the measurement of the liability does not depend directly on the carrying amount of the assets held. Therefore, shadow

Meenakshi chawla (Ph.d) accounting is not applicable and changes in the carrying amount of the liability are recognised in profit or loss because IAS 1 Presentation of Financial Statements requires all items of income or expense to be recognised in profit or loss unless an IFRS requires otherwise. Shadow accounting may be relevant if there is a contractual link between payments to policyholders and the carrying amount of, or returns from, owner-occupied property. If an entity uses the revaluation model in IAS 16 Property, Plant and Equipment, it recognises changes in the carrying amount of the owner-occupied property in revaluation surplus. If it also elects to use shadow accounting, the changes in the measurement of the insurance liability resulting from revaluations of the property are also recognised in revaluation surplus. Example: Shadow accounting THE CASE Under some national requirements for some insurance contracts, deferred acquisition costs(DAC)are amortised over the life of the contract as a constant proportion of estimated gross profits (EGP). EGP includes investment returns, including realised (but not unrealised) gains and losses. Interest is applied to both DAC and EGP, to preserve present value relationships. For simplicity, this example ignores interest and ignores re-estimation of EGP. At the inception of a contract, insurer A has DAC of CU20 relating to that contract and the present value, at inception, of EGP is CU100. In other words, DAC is 20 per cent of EGP at inception. Thus, for each CU1 of realised gross profits, insurer A amortises DAC by CU0.20. For example, if insurer A sells assets and recognises a gain of CU10, insurer A amortises DAC by CU2 (20 per cent of CU10). Before adopting IFRSs for the first time in 20X5, insurer A measured financial assets on a cost basis. (Therefore, EGP under those national requirements considers only realised gains and losses.) However, under IFRSs, it classifies its financial assets as measured at fair value through profit or loss. In 20X5 insurer A recognises unrealised gains of CU10 on the assets backing the contract and in 20X6 it sells the assets for an amount equal to their fair value at the end of 20X5. Application of paragraph 30 of IFRS 4 Paragraph 30 of IFRS 4 permits, but does not require, insurer A to adopt shadow accounting. If insurer A adopts shadow accounting, it amortises DAC in 20X5 by an additional CU2 (20 per cent of CU10) as a result of the change in the fair value of the assets. Insurer A recognises the additional amortisation of CU2 in profit or loss.

Meenakshi chawla (Ph.d) When insurer A sells the assets in 20X6, it makes no further adjustment to DAC. In summary, shadow accounting treats an unrealised gain in the same way as a realised gain. If insurer A does not adopt shadow accounting, unrealised gains on assets do not affect the amortisation of DAC.

List of International Financial Reporting Standards
This is a list of the International Financial Reporting Standards (IFRSs) and official interpretations, as set out by the IFRS Foundation. It includes accounting standards either developed or adopted by the International Accounting Standards Board (IASB), the standard-setting body of the IFRS Foundation.
The IFRS include

• • • •

International Financial Reporting Standards (IFRSs)—developed by the IASB; International Accounting Standards (IASs)—adopted by the IASB; Interpretations originated from the International Financial Reporting Interpretations Committee (IFRICs); and Standing Interpretations Committee (SICs).

The list contains all standards and interpretations regardless whether they have been suspended. Full texts are available on the IASB website.

List of Reporting Standards and International Accounting Standards

Title

Originally issued

Effective

Fully Superseded by withdrawn

Disclosure of Accounting Policies (1975) IAS 1 Presentation of Financial Statements (1997) Valuation and Presentation of Inventories in the Context of the Historical Cost System (1975) Inventories (1993) IAS 3 IAS 4 Consolidated Financial Statements Depreciation Accounting 1976 1976 1975

January 1, 1975

IAS 2

1975

January 1, 1976 January 1, 1977 January 1, 1977 January 1, 1990 July 1, 1999 IAS 27 and IAS 28 IAS 36

Meenakshi chawla (Ph.d)
Information to Be Disclosed in Financial Statements Accounting Responses to Changing Prices Statement of Changes in Financial Position (1977) IAS 7 Cash Flow Statements (1992) Statement of Cash Flows (2007) Unusual and Prior Period Items and Changes in Accounting Policies (1978) Net Profit or Loss for the Period, Fundamental IAS 8 Errors and Changes in Accounting Policies (1993) Accounting Policies, Changes in Accounting Estimates and Errors (2003) IAS 9 Accounting for Research and Development Activities Contingencies and Events Occurring After the Balance Sheet Date (1978) IAS 10 Events After the Balance Sheet Date (1999) Events after the Reporting Period (2007) Accounting for Construction Contracts (1979) IAS 11 Construction Contracts (1993) Accounting for Taxes on Income (1979) IAS 12 Income Taxes (1996) Presentation of Current Assets and Current Liabilities Reporting Financial Information by Segment (1981) Segment reporting (1997) IAS 15 Information Reflecting the Effects of Changing 1981 Prices Accounting for Property, Plant and Equipment (1982) Property, Plant and Equipment (1993) IAS 17 Accounting for Leases (1982) 1982 1979 1979 January 1, 1980 January 1, 1981 January 1, 1981 January 1, 1983 January 1, 1983 January 1, 1983 January 1, 1984 July 1, 1998 IAS 1 1978 January 1, 1980 1978 January 1, 1980 July 1, 1999 IAS 38 1978 January 1, 1979 1977 January 1, 1979 January 1, 1977 January 1, 1978

IAS 5 IAS 6

1976 1977

July 1, 1998 January 1, 1983

IAS 1 IAS 15

IAS 13

1979

IAS 14

1981

January 1, 2009 January 1, 2005

IFRS 8

N/A

IAS 16

1982

Meenakshi chawla (Ph.d)

Leases (1997) Revenue Recognition (1982) IAS 18 Revenue (1993) Accounting for Retirement Benefits in Financial Statements of Employers (1983) IAS 19 Retirement Benefit Costs (1993) Employee Benefits (1998) IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Accounting for the Effects of Changes in Foreign Exchange Rates (1983) IAS 21 The Effects of Changes in Foreign Exchange Rates (1993) Accounting for Business Combinations (1983) IAS 22 Business Combinations (1993) Capitalisation of Borrowing Costs (1984) IAS 23 Borrowing Costs (1993) Related Party Disclosures Accounting for Investments Accounting and Reporting by Retirement Benefit Plans Consolidated Financial Statements and Accounting for Investments in Subsidiaries (1989) IAS 27 Consolidated and Separate Financial Statements 1989 (2003) Separate Financial Statements (2011) Accounting for Investments in Associates (1989) IAS 28 Investments in Associates (2003) Investments in Associates and Joint Ventures (2011) IAS 29 Financial Reporting in Hyperinflationary Economies 1989 January 1, 1990 1989 January 1, 1990 January 1, 1990 1984 1983 January 1, 1985 January 1, 1986 January 1, 1986 January 1, 1987 January 1, 1988 January 1, 2001 IAS 39 and IAS 40 1983 January 1, 1985 1983 January 1, 1984 1983 January 1, 1985 1982 January 1, 1984

April 1, 2004 IFRS 3

IAS 24 IAS 25 IAS 26

1984 1986 1987

Meenakshi chawla (Ph.d)
Disclosures in the Financial Statements of Banks and Similar Financial Institutions Financial Reporting of Interests in Joint Ventures (1990) Interests in Joint Ventures (2003) Financial Instruments: Disclosure and Presentation (1995) Financial Instruments: Presentation (2005) IAS 33 IAS 34 IAS 35 IAS 36 IAS 37 IAS 38 IAS 39 IAS 40 IAS 41 IFRS 1 IFRS 2 IFRS 3 IFRS 4 IFRS 5 IFRS 6 IFRS 7 IFRS 8 IFRS 9 IFRS 10 Earnings per Share Interim Financial Reporting Discontinuing Operations Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Intangible Assets Financial Instruments: Recognition and Measurement Investment Property Agriculture First-time Adoption of International Financial Reporting Standards Share-based Payment Business Combinations Insurance Contracts Non-current Assets Held for Sale and Discontinued Operations Exploration for and Evaluation of Mineral Resources Financial Instruments: Disclosures Operating Segments Financial Instruments Consolidated Financial Statements 1997 1998 1998 1998 1998 1998 1998 2000 2000 2003 2004 2004 2004 2004 2004 2005 2006 2009 2011 January 1, 1991 January 1, 1992 January 1, 2007 January 1, 2013

IAS 30

1990

IFRS 7

IAS 31

1990

IFRS 11 and IFRS 12

IAS 32

1995

January 1, 1996 January 1, 1999 January 1, 1999 July 1, 1999 July 1, 1999 July 1, 1999 July 1, 1999 January 1, 2001 January 1, 2001 January 1, 2003 January 1, 2004 January 1, 2005 April 1, 2004 January 1, 2005 January 1, 2005 January 1, 2006 January 1, 2007 January 1, 2009 January 1, 2015 January 1, 2013 January 1, 2005 IFRS 5

Meenakshi chawla (Ph.d)
January 1, 2013 January 1, 2013 January 1, 2013

IFRS 11 IFRS 12 IFRS 13

Joint Arrangements Disclosure of Interests in Other Entities Fair Value Measurement

2011 2011 2011

List of Interpretations
N° Title Originally issued Effective Fully Superseded by withdrawn

SIC 1

Consistency - Different Cost Formulas for Inventories

1997

January 1, 1999

January 1, 2005

IAS 2

SIC 2

Consistency - Capitalisation of Borrowing Costs

1997

January 1, 1998

January 1, 2005

IAS 8

SIC 3

Elimination of Unrealised Profits and Losses on Transactions with Associates

1997

January 1, 1998

January 1, 2005

IAS 28

SIC 4

?

?

?

?

?

SIC 5

Classification of Financial Instruments Contingent Settlement Provisions

1997

June 1, 1998

January 1, 2005

IAS 32

SIC 6

Costs of Modifying Existing Software

1997

June 1, 1998

January 1, 2005

IAS 16

SIC 7

Introduction of the Euro

1997

June 1, 1998

SIC 8

First-Time Application of IASs as the Primary 1998 Basis of Accounting

August 1, 1998

January 1, 2004

IFRS 1

SIC 9

Business Combinations - Classification either as Acquisitions or Unitings of Interests

1998

August 1, 1998

April 1, 2004 IFRS 3

SIC 10

Government Assistance-No Specific Relation

1998

August 1,

Meenakshi chawla (Ph.d)

to Operating Activities

1998

SIC 11

Foreign Exchange - Capitalisation of Losses 1998 Resulting from Severe Currency Devaluations

August 1, 1998

January 1, 2005

IAS 21

SIC 12

Consolidation-Special Purpose Entities

1998

July 1, 1999

January 1, 2013

IFRS 10

SIC 13

Jointly Controlled Entities-Non-Monetary Contributions by Venturers

1998

January 1, 1999

January 1, 2013

IFRS 10

SIC 14

Property, Plant and Equipment - Compensation 1998 for the Impairment or Loss of Items

July 1, 1999

January 1, 2005

IAS 16

SIC 15

Operating Leases-Incentives

1998

January 1, 1999

SIC 16

Share Capital - Reacquired Own Equity Instruments (Treasury Shares)

1998

July 1, 1999

January 1, 2005

IAS 32

SIC 17

Equity - Costs of an Equity Transaction

1999

January 30, 2000

January 1, 2005

IAS 32

SIC 18

Consistency - Alternative Methods

1999

July 1, 2000

January 1, 2005

IAS 8

SIC 19

Reporting Currency - Measurement and Presentation of Financial Statements under IAS 2000 21 and IAS 29

January 1, 2001

January 1, 2005

IAS 21

SIC 20

Equity Accounting Method - Recognition of Losses

1999

July 15, 2000

January 1, 2005

IAS 28

SIC 21

Income Taxes-Recovery of Revalued NonDepreciable Assets

1999

July 15, 2000

January 1, 2012

IAS 12

SIC 22

Business Combinations - Subsequent

1999

July 15, 2000 April 1, 2004 IFRS 3

Meenakshi chawla (Ph.d)

Adjustment of Fair Values and Goodwill Initially Reported

SIC 23

Property, Plant and Equipment - Major Inspection or Overhaul Costs

1999

July 15, 2000

January 1, 2005

IAS 16

SIC 24

Earnings Per Share - Financial instruments and 2000 other contracts that may be settled in shares

December 1, January 1, 2000 2005

IAS 33

SIC 25

Income Taxes-Changes in the Tax Status of an 1999 Entity or its Shareholders

July 15, 2000

SIC 26

Draft only - not issued: Property, Plant and Equipment – Results of Incidental Operations [4]

N/A

N/A

N/A

IAS 16

SIC 27

Evaluating the Substance of Transactions Involving the Legal Form of a Lease

2000

January 1, 2002

SIC 28

Business Combinations - 'Date of Exchange' and Fair Value of Equity Instruments

2001

December 31, April 1, 2004 IFRS 3 2001

SIC 29

Disclosure-Service Concession Arrangements 2001

January 1, 2002

SIC 30

Reporting Currency - Translation from Measurement Currency to Presentation Currency

2001

January 1, 2002

January 1, 2005

IAS 21

SIC 31

Revenue-Barter Transactions Involving Advertising Services

2001

January 1, 2002

SIC 32

Intangible Assets-Web Site Costs

2001

March 25, 2002

Meenakshi chawla (Ph.d)

SIC 33

Consolidation and equity method - Potential voting rights and allocation of ownership interests

2001

January 1, 2002

January 1, 2005

IAS 27 and IAS 28

IFRIC 1

Changes in Existing Decommissioning, Restoration and Similar Liabilities

2004

September 1, 2004

IFRIC 2

Members’ Shares in Co-operative Entities and 2004 Similar Instruments

January 1, 2005

IFRIC 3

Emission Rights

2004

March 1, 2005

July 1, 2005

N/A

IFRIC 4

Determining whether an Arrangement contains 2004 a Lease

January 1, 2006

IFRIC 5

Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds

2004

January 1, 2006

IFRIC 6

Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment

2005

December 1, 2005

IFRIC 7

Approach under IAS 29 Financial Reporting in 2005 Hyperinflationary Economies

March 1, 2006

IFRIC 8

Scope of IFRS 2

2006

May 1, 2006

January 1, 2010

IFRS 2

IFRIC 9

Reassessment of Embedded Derivatives

2006

June 1, 2006

IFRIC 10 Interim Financial Reporting and Impairment

2006

November 1, 2006

IFRIC 11 IFRS 2-Group and Treasury Share Transactions 2006

March 1, 2007

January 1, 2010

IFRS 2

Meenakshi chawla (Ph.d)

IFRIC 12 Service Concession Arrangements

2006

January 1, 2008

IFRIC 13 Customer Loyalty Programmes

2007

July 1, 2008

IAS 19 - The Limit on a Defined Benefit Asset, IFRIC 14 Minimum Funding Requirements and their 2007 Interaction

January 1, 2008

IFRIC 15 Agreements for the Construction of Real Estate 2008

January 1, 2009

IFRIC 16

Hedges of a Net Investment in a Foreign Operation

2008

October 1, 2008

IFRIC 17 Distributions of Non-cash Assets

2008

July 1, 2009

IFRIC 18 Transfers of Assets from Customers

2009

July 1, 2009

IFRIC 19

Extinguishing Financial Liabilities with Equity 2009 Instruments

July 1, 2010

IFRIC 20

Stripping Costs in the Production Phase of 2011 a Surface Mine

January 1, 2013