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AK
IFRS GLIMPSE
IFRS Glimpse (IG) has been created to assist in gaining a high-level overview of IASB Conceptual Framework,
International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). IG does
not contain SIC and IFRIC interpretations.
IG provides a summary in the form of flowcharts and decisions tree about the recognition and measurement
requirements of the IFRSs issued by the International Accounting Standards Board (IASB).
IG includes all IASs and IFRSs issued and effective as at June 2020.
IG publication has been carefully prepared, but it has been written in overall terms and should be read as broad guidance only and does not constitute our
professional advise. IG cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein AK
without obtaining specific professional advice. Moreover, no representation or warranty (express or implied) is given as to the accuracy or completeness of the
information contained in this publication.
AK
CONTENTS PAGE
IFRS GLIMPES
IASB CONCEPTUAL FRAMEWORK……………………………….……………………………………………….………1
IAS 1 PRESENTATION OF FINANCIAL STATEMENTS…………………………………………………………….…2
IAS 2 INVENTORIES………………………………………………………………………………………………………….….3
IAS 7 STATEMENT OF CASH FLOWS………………………………………………………………………………….….4
IAS 8 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS……………5
IAS 10 EVENTS AFTER THE REPORTING PERIOD…………………………………………………………………..6
IAS 12 INCOME TAXES ………………………………………………………………………………………………………..7
IAS 16 PROPERTY, PLANT AND EQUIPMENT ……………………………………………………………………….8
IAS 19 EMPLOYEE BENEFITS …………………………………………………………………………………………….…9
IAS 20 ACCOUNTING FOR GOVERNMENT GRANTS AND DISCLOSURES OF GOVERNMENT
ASSISTANCE……………………………………………………………………………………………………………………….10
IAS 21 THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES……………………………………..11
IAS 23 BORROWING COSTS……………………………………………………………………………………………….12
IAS 24 RELATED PARTY DISCLOSURES………………………………………………………………………………..13
IAS 26 ACCOUNTING AND REPORTING BY RETIREMENT BENEFIT PLANS…………………………..14
IAS 27 SEPARATE FINANCIAL STATEMENTS………………………………………………………………………..15
IAS 28 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES…………………………………………….16
IAS 29 FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES………………………………..17
IAS 32 FINANCIAL INSTRUMENTS: PRESENTATION…………………………………………………………….18
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CONTENTS (CONTINUED) PAGE
• Theoretical principles
• Assist IASB in standard
setting
• Bedrock of IFRS
• Doesn’t override IFRS
Note:
Definition:
Cost of Net Realizable
▪ Does not apply to 1. Inventories:
Inventory Value Inventories are assets:
producers of
agriculture & forest ➢ Held for sale in
products measured ordinary course of
at NRV. business;
For finished goods and work in process
▪ Minerals & mineral ➢ In process of
inventory
products measured Cost of purchase of direct material Excludes: production for such
at NRV. Add + irrecoverable taxes ▪ Abnormal waste sale;
Estimated selling price in the ordinary course of
▪ Commodity brokers Add + transport & handling charges ▪ Warehouse costs (unless ➢ In the form of
business
who measure Less – trade volume rebates/discounts necessary for production materials or supplies
less – Estimated costs of completion
inventory at FV less Costs of conversion process) to be consumed in
Less – estimated costs to make such sale
cost to sell. Direct labor ▪ Admin expenses production process or
Add + other direct cost ▪ Selling expenses in rendering of
Add + factory overhead cost (fixed and ▪ Interest charges / services.
variable) borrowing cost, except in NRV for material and supplies inventory is its
the cases where replacement cost.
inventory is a qualifying
Cost formulas: asset under IAS 23 Disclosure requirement:
▪ For non-interchangeable Standard cost ▪ Accounting policies adopted in measuring inventories, including the costing
items method methods.
- Specific identification ▪ Total carrying amount of inventories and the carrying amount in classifications.
▪ For interchangeable items ▪ Carrying amount of inventories carried at fair value less costs to sell.
- FIFO or Retail ▪ Amount of inventories recognised as an expense during the period.
- Weighted average cost method ▪ Amount of any write-down of inventories recognised as an expense in the period.
▪ Amount of any reversal of any previous write-down that is recognised in profit or
loss for the period.
▪ Circumstances or events that led to the reversal of a write-down of inventories to
net realisable value.
▪ Carrying amount of inventories pledged as security for liabilities.
AK
IAS 7 Statement of Cashflows Effective date: Periods beginning on or after 1 Jan 1994 Page#4
Legend:
Long term assets = LTA
Operating activities Investing activities Financing activities Cash and Cash Equivalent
Single entity
Definition:
Relates to statement Relates to non- Relates to owner's • Unrestricted Cash in 1. Cash & cash
of profit or loss current assets and equity, non-current hand or at bank Split finance lease equivalence:
current investments liabilities and short- • Short term, highly instalments ▪ Short term
not part of cash & term borrowings liquid, readily Interest = operating (maturity 3
Cash generated cash equivalent convertible to known activities months or less);
from operations amount of cash Consolidated Capital = financing ▪ Highly liquid
Received or paid interest and dividends are disclosed • Less bank over-draft statement of activities investments;
separately and can be classified as operating,
cashflows ▪ Readily
Direct Indirect investing or financing, based on their nature and as • original maturity is 3
Method Method long as they are consistently treated from period to months or less, convertible to
period. irrespective of known amounts of
maturity timing post cash.
Important to consider: balance date ▪ Subject to
▪ Gross Vs. Net cash flows insignificance risk
▪ Foreign currency cash flows
of change in value.
▪ Cash flow per share is not a required disclosure
▪ Net reporting by financial institutions
▪ Reporting; forward contracts, futures, options and swaps Dividends Dividends Acquisition / Acquisition
▪ Reporting extra ordinary items paid to NCI received from disposal of of associate
▪ Acquisition and disposal of subsidiary and other group units associates and subsidiary or joint
joint ventures venture
Required Disclosures Classify as cash
The amount of significant cash and cash equivalent balances held by an entity flows from
which are not available for use by the group should be disclosed along with a financing Classify as cash Show net cash Show
commentary by management. flows from effects as part of payments
Recommended Disclosures Investing cash flows from under cash
a) The amount of undrawn borrowing facilities, indicating restrictions on their use, if activities Investing activities flows from
any; Investing
b) The aggregate amount of cash flows that are attributable to the increase in Disclosure in activities
operating capacity separately from those cash flows that are required to maintain
notes to the
operating capacity; and
c) The amount of the cash flows arising from the operating, investing and financing
statement
activities of each reportable segment determined in accordance with IFRS 8.
AK Effective date: Periods beginning on or after 1 Jan 2005
IAS 8 Accounting policies, Change in Accounting Estimates and Errors Page#5
Legends:
Accounting policies = AP
Accounting policies Changes in Accounting Errors Earning per share = EPS
Estimates
Definitions:
Requirement: Impracticability Exception: 1.Accounting policies:
• If change in policy is due to new Comparative information The specific principles,
standard or interpretation, presented for a particular Requirement: Requirement bases, conventions, rules &
apply transitional provisions. prior period need not be Changes in estimates be Retrospective Restatement: practices applied by an
• If no transitional provision, restated if doing so is recognised prospectively Material prior period errors should be entity in preparing &
apply retrospectively. impracticable. corrected retrospectively by: presenting FS.
by including them in profit
1.Adjust the carrying amounts of assets and 2.Change in accounting
or loss in
Retrospective Inability to determine period-specific liabilities at the beginning of the first estimates:
1. The period of change if
application: effects: comparative period in the financial Adjustment of the carrying
the change affects that amount of an asset or
• adjust the opening 1. Adjust the carrying amounts of the assets statements for the amount of the
period only; or liability, or related expense,
balance of each affected and liabilities for the cumulative effect of correction.
2. The period of change resulting from reassessing
component of equity for applying the new accounting principle at 2.Offset the amount of the adjustment in
and future periods if the Step 1 (if any) by adjusting the opening the expected future benefits
the earliest prior period the beginning of the earliest period
presented, and
change affects both. balance of retained earnings for that and obligations associated
presented for which it is practicable to with the asset or liability.
• present other period.
make the computation, which may be the Disclosure: 3.Errors:
comparative amounts 3.Adjust the financial statements of each
disclosed for each prior
current period. • Nature & amount of the change Prior period errors are
individual prior period presented for the
period as if the new 2. Any offsetting adjustment required by affecting current period. effects of correcting the error on that omission from &
accounting policy had applying Step 1 is made to each affected • The fact that effect of future misstatement in, an entity’s
specific period (referred to as the period-
always been applied. component of equity (usually to beginning FS for one or more prior
period is not disclosed because of specific effects of the error).
retained earnings) of that period. periods arising from failure
impracticability. to use/misuse of reliable
Policies should be information:
Inability to determine effects of new When it is difficult to distinguish a Disclosure:
consistent for similar • Was available when FS
accounting principle on any prior periods: change in an accounting policy from • Nature of material prior period error.
transactions, events or for that period was
The new principle is applied prospectively as a change in an accounting estimate, • Each prior period presented, if practicable,
conditions. issued;
of the earliest date that it is practicable to the change is treated as a change in disclose correction to each line item and EPS. • Could have been
do so. an accounting estimate. • Amount of correction at beginning of the reasonably expected to
earliest comparative period; be taken in to account in
Disclosure: • For the current period and each prior period presented, the • If retrospective application is impracticable, those FS.
• Reference of the IFRS or IFRIC that caused amount of the adjustment to each line item affected and explain how error was corrected. Errors include;
the change; earnings per share. • Subsequent periods need to repeat these mathematical mistake,
• Nature of the change in policy; • Amount of the adjustment relating to prior periods not disclosures. mistake in AP, fraud &
• Description of the transitional provisions; presented. oversight of fact.
AK
IAS 10 Events after the Reporting Period Effective date: Periods beginning on or after 1 Jan 2005
Page#6
Legend:
Adjusting Events Authorization Date Non-Adjusting Financial statements = FS
Events
The date when Financial Statements could be Definition:
An event after the reporting date considered legally authorised for issuance, generally by An event after the reporting date 1.Events after the
that provides further evidence of action of the board of directors of the reporting entity. that is indicative of a condition reporting period:
conditions that existed at the that arose after the reporting Favorable or unfavorable
reporting date. It serves as the cutoff point after the end of reporting event, that occurs
date.
It is an event that provides period, up to which the events qualify for treatment as between the reporting
It is an event that provides new
additional information about per IAS 10. date and the date that
information about conditions
conditions in existence at the end that did not exist at the end of a the financial statements
of a reporting period, reporting period. are authorized for issue.
Presentation and Disclosure Examples:
Examples: Where non-adjusting events are of such • Major business combinations
significance a disclosure should be made or disposal of subsidiary;
• Events that indicate that the An entity shall present and disclose: of the: • Major purchase / disposal of
going concern assumption in a) the date when the financial a)Nature of the event assets;
relation to the whole or part of statements were authorised for issue b)Quantitative impact of an estimate of • Destruction of major plant.
the entity is not appropriate; b) who gave that authorization for its financial effect, or a statement that • Announcing a plan to
• Settlement after reporting date issuance such an estimate cannot be made discontinue operation.
of court cases that confirm the c) If the entity’s owners or others have c) Qualitative impact of such event
entity had a present obligation the power to amend the financial However, not all non-adjusting events
at reporting date statements after issue, the entity are significant enough to require Non-adjusting events are not
shall disclose that fact. disclosure. accounted for in the reporting
Adjusting events are accounted for period prior to the period in
in the reporting period prior to the which those happened.
Updated Disclosure
period in which those happened. Instead, specific disclosure is
provided considering the
a) If an entity receives information after the reporting period about conditions that materiality of the event that
existed at the end of the reporting period, it shall update disclosures that relate to has happened.
those conditions, in the light of the additional information.
b) In some cases, an entity needs to update the disclosures in its financial statements
to reflect information received after the reporting period, even when the
information does not affect the amounts that it recognises in its financial
statements.
AK
IAS 12 Income Taxes Effective date: Periods beginning on or after 1 Jan 1998
Page#7
Tax payable on profits for the year Tax on any part of accounting
profit (loss) which is payable Legends:
computed as per tax laws.
Current Tax (Amount actually payable to the (recoverable) in future accounting Deferred Tax Goodwill = GW
tax authorities) periods Taxable Temporary
Difference = TTB
• Tax for the current and prior Deductible Temporary
periods is recognised as a Deferred Tax Deferred Difference = DTD
liability to the extent it is Liabilities Tax Assets Carrying Amount = CA
unpaid. Tax Base = TB
• An asset is recognised if amount
paid exceeds the respective Recognize liabilities for all taxable temporary Recognize for deductible temporary differences, Definitions:
current tax. differences, extent it arises from: unused tax losses, unused tax credits to the extent 1.Temporary difference:
▪ Initial recognition of GW. that taxable profit will be available against which the Difference between the
Measurement ▪ Initial recognition of an asset/liability that does not asset can be used, except to the extent it arises from carrying amount of an
affect accounting or tax profit and the transaction is the initial recognition of an asset/liability that: asset/liability and its tax
not a business combination • Is not a business combination; and
Current tax liabilities are measured base.
▪ Liabilities from undistributed profits from • Doesn’t affect accounting / tax profit.
at the amount expected to be paid 2.Tax base of an asset:
investments in subsidiaries, branches and associates, Recognize for deductible temporary differences
to the taxation authorities, using Is the amount that will be
and interests in joint ventures where company can arising from investments in subsidiaries and
the tax rates (and tax laws) that deductible for tax
control the timing of the reversal. associates to the extent it is probable the temporary
have been enacted or substantially purpose against any
enacted by the end of the difference will reverse in the foreseeable future and taxable benefits that will
reporting period. their will be available tax profit to be utilized. flow to the entity when it
Measurement
Current tax assets are similarly recovers the carrying
measured at the amount expected amount of the asset.
to be recovered from the taxation • Measure the balance at tax rates that are expected to apply in the period in which the asset is 3.Tax base of a liability:
authorities. realized, or liability settled based on tax rates that have been enacted or substantively enacted by Its’ carrying amount less
the end of the reporting period; any amount that will be
Accounting Treatment • Deferred tax assets and liabilities are not discounted; deductible for tax
• The applicable tax rate depends on how the carrying amount of an asset or liability is recovered or purposes in respect of
Type For Asset For Accounting settled; the liability in future
of Diff Liability Treatment upon • Current and deferred tax shall be recognized as income or an expense and included in profit or loss periods.
creation for the period, except to the extent that the tax arises from a transaction or event which is 4.Tax base of income:
recognized, in the same or a different period, directly in equity or other comprehensive income, or a Is its’ carrying amount
Dr. Tax Expense
TTD CA > TB CA < TB business combination; less revenue that will not
Cr. Def Tax Liab.
• Current tax and deferred tax are charged or credited directly to equity or other comprehensive be taxable in future.
Dr. Def Tax Asset income if the tax relates to items that are credited or charged, in the
DTD CA < TB CA > TB
Cr. Tax Income • same or a different period, directly to equity or other comprehensive income.
AK
IAS 16 Property, Plant and Equipment Effective date: Periods beginning on or after 1 Jan 2005
Page#8
Recognition &
Disclosure
Measurement
Definitions:
Specific General Disclosure 1. Borrowing costs:
Borrowing Borrowing Borrowing costs are
interest and other costs
incurred by an entity in
connection with the
Key Notes: Borrowing cost eligible to be Borrowing cost eligible to be ▪ Amount of borrowing borrowing of funds.
• Borrowing costs that capitalized is actual borrowing capitalized is determined by cost capitalized during 2. Qualifying asset:
are directly cost incurred on specific applying weighted average rate on the period; An asset that necessarily
attributable to the borrowing general (overall) borrowings. ▪ Capitalization rate used. takes a substantial period of
acquisition, time to get ready for its
construction or intended use or sale.
Less: income on temporary Note:
production of a Amount of borrowing cost
investment (if any) of the
qualifying asset are
excess borrowing not yet used. capitalized cannot exceed in the
required to be
capitalized as part of period on amount of borrowing
the cost of that asset; cost incurred.
• Other borrowing costs
are recognized as an
expense when
incurred.
When:
When: When: Substantially all the activities necessary to prepare the qualifying
▪ Expenditures for the asset are Active development is asset for its intended use or sale are complete.
being incurred; interrupted (during that period). Note: When construction of a qualifying asset is completed in
▪ Borrowing costs are being parts and each part is capable of being used while construction
incurred; continues on other parts; capitalization of borrowing costs
▪ Activities that are necessary to ceases when substantially all the activities necessary to prepare
prepare the asset for its intended that part for its intended use or sale are completed.
use or sale are in progress.
AK Effective date: Periods beginning on or after 1 Jan 2011
Focus: IAS 24 Related Party Disclosures Page#13
• Disclosure of related party
relationships Legends:
Disclosure Requirements Related Party (ies) = RP
• Disclosure of related party
transactions Key Management
• Disclosure of outstanding Personnel = KMP
General Compensation Transaction Level KMP Services Govt Control
balances with related parties
• Disclosure of commitments Definitions:
to related parties The nature of all The total amount of For specific related party The amounts Transaction-level 1. Key Management
related party compensation for key transactions; nature of incurred for KMP disclosures are not Personnel:
Application: relationships, management the relationship, services from a required when the Persons having authority
• To identify the circumstances even in the personnel, as well as transaction terms and separate related party is a & responsibility for:
in which disclosure is absence of any for their short-term conditions, outstanding management government entity that Planning, directing &
required; and transactions benefits, post- balances, commitments entity. has control or influence controlling the activity of
• To determine the disclosures between the employment benefits, or guarantees, related over the business, or entity
to be made parties, and the other long-term collateral arrangements, another entity over (directly/indirectly)
name of the benefits, termination provisions for related which the same including all directors.
RP include: ultimate benefits, and any doubtful debts, and any government entity also 2. Close Family Member:
• Other subsidiaries under controlling party share-based related bad debt exercises control or Includes but not limited:
common control (usually the payments. expense recognized influence. ▪ Children, &
• Owners of a business, its key parent entity). during the period. dependence;
managers, and their families These disclosures should ▪ Spouse/partner;
• The parent entity RP do not include: be reported separately Instead, disclose the ▪ Children &
• Post-employment Benefit • Lenders; for the parent entity, any name of the government dependents of
Plans for the benefit of • Trade unions; entities with joint control entity and the nature of spouse/partner.
employees • Public utilities; or influence over the the relationship with it, (Must access level of
• An entity that provides Key • Government entities that do not control the business, subsidiaries, as well as the nature and influence case by case).
Management Personnel business; associates, joint amount of those
Services to the reporting • Entities that have a director or key manager ventures, KMP, and Transactions between
transactions, if
entity in common; other related parties. related parties cannot be
considered significant.
• Fellow joint venturers who jointly control a presumed to be at an
For possible RP relationship venture. arm’s length.
consider the substance of
relationship and not merely
the legal form.
AK Effective date: Periods beginning on or after 1 Jan 1998
IAS 26 Accounting & Reporting by Retirement Benefits Plan Page#14
Scope: Retirement
Applies to FS of RBP. Legends:
Benefits Plans Defined benefit plan =
It does not establish a mandate for the
publication of such reports by retirement DBP
Retirement benefit plans are usually described as being either defined contribution or defined benefit plans. Defined contribution
plans.
IAS 26 regards a RBP as a separate entity, plan = DCP
distinct from the employer of the plan’s Retirement benefits plan
Defined Benefits Defined = RBP
participants. Plans Contribution Plans
Determined by formulae which involve factors such as years of service and salary level at the time of retirement. Quantum of the future benefits payable to the RBM Definitions:
Ultimate responsibility for payment remains with the employer. Reporting DBP includes: participants is determined by the contributions 1. Retirement benefit
1. Description of significant activities for the period & the effect of changes, its membership and terms & together with investment earnings thereon. plans:
conditions. Reporting of a DCP contains a statement of the net Arrangements by which an
entity provides benefits
2. SOPL and SOFP at the end of the period assets available for benefits and a description of the
(annual income or lump
3. Actuarial information either as part of the FS or separately. funding policy. sum) to employees after
4. A description of the investment policies. • Recognize plan investment at fair value they terminate from
If an actuarial valuation has not been prepared on the date of the report, the most recent valuation should be • Disclosure of the reason if fair value can not be service.
used as the basis for preparing the FS. estimated 2. Defined benefit plans:
• Recognize plan investment at fair value A Plan by which employees
• Disclosure of the reason if fair value can not be estimated Disclosure receive benefits based on a
Report of a DBP should contain either: Requirements formula usually linked to
1. A statement that shows: employee earnings.
a. The net assets available for benefits; 3. Defined Contribution
Main disclosure: plans:
b. The actuarial present value of promised retirement benefits, distinguishing
1. Changes in net assets available for benefits; A retirement benefit plan
c. between vested and non-vested benefits; and
2. Summary of significant accounting policies; and by which benefits to
d. The resulting excess or deficit;
3. Description of the plan and the effect of any employees are based on
2. A statement of net assets available for benefits, including either:
changes in the plan during the period. the amount of funds
a. A note disclosing the actuarial PV of retirement benefits, distinguishing b/w vested and non-vested; or contributed to the plan plus
b. A reference to this information in an accompanying actuarial report. investment earnings
thereon.
Report may include following statements and descriptions, if applicable:
1) Net assets available for benefits disclosing suitably classified ending balance of assets, valuation basis of assets, singly investment exceeding 5%, investment in employer,
liability other than actuarial PV. 2) Changes in net assets showing employer & employee contribution, investment income, other income, benefits paid/payable, operating &
tax expenses, G/L on investment. 3) Funding policy. 4) For DBP; actuarial PV of promised retirement benefits and description of significant actuarial assumptions.
Report of RBP may contain: a) names of the employers and the employee groups covered, b) number of participants , c) type of plan, d) note as to whether participants
contribute to the plan, e) retirement benefits promised to participants, f) plan termination terms, g) any change during the period covered by the report.
AK
IAS 27 Separate Financial Statements Effective date: Periods beginning on or after 1 Jan 2013
Page#15
Scope: Page#17
Applies to all Restatements of Financial Statements – Hyperinflationary economies
entities whose Legend:
functional General Price Index = GPI
currency is the
currency in Historical Cost Current Cost
hyperinflationary Financial Statements Financial Statements
economy.
Comparative &
SOCI SOFP SOCI SOFP Statement of
Cashflows
All items in SOCI are expressed SOFP not already Items at current cost All items in the SOCF
All amounts are
in terms of the measuring unit expressed in terms of the are not restated are expressed in
restated into the
current at the end of the measuring unit current at because they are terms of the
measuring unit current
reporting period. Therefore all the end of the period are already expressed in measuring unit
at the end of the
amounts need to be restated restated by applying a the unit of current at the end of
reporting period by
by applying the change in the general price index (GPI). measurement current the reporting period.
applying a GPI.
general price index from the at the end of the Corresponding
dates when the items of period. figures for the
income and expenses were previous reporting
initially recorded in the FS. period, whether
based on either a
Assets & liabilities Monetary items are Remaining other assets and historical cost
linked by agreement not restated liabilities are nonmonetary. approach or a current
to changes in prices because Some non-monetary items cost approach, are
are adjusted in they are already are carried at amounts restated by applying
accordance with the expressed in terms current at the end of the a GPI.
agreement in order to of period, such as NRV &
ascertain the amount the monetary unit market value, so they are not
outstanding at current at the end restated. All other
the end of the period. of nonmonetary assets and
the period. liabilities are restated.
AK
IAS 32 Financial Instruments: Presentation Effective date: Periods beginning on or after 1 Jan 2005
Page#18
Scope: Legends:
Applies to all type Financial Distinguish Equity Instrument and Financial Instruments = FI
of FI except: Instruments Financial Liability Financial Assets = FA
▪ Those interest in Financial liabilities = FL
subsidiaries, Equity Instruments = EI
associates & JVs. Based on substance
▪ Obligation under Financial and definition Equity
employee Financial liability
Financial Equity Instruments
benefits plan.
Assets Liabilities Instruments
▪ Insurance Exception – Puttable
Contracts. instrument (features) Exception – If not genuine
▪ FI contracts,
FA is: FL is: Equity = Option to
contracts & Contingent
• Cash; • Contractual Assets - Liabilities settle in
obligation under provisions
• Investment in obligations to cash or Note: Preference share
share-based
shares; deliver (cash, share with redemption option.
payment.
• Contractual another financial
right to receive asset, potentially
(cash, another un-favorable (1) Subordinate to all shares (2) Identical
financial asset, derivates). features (3) No other obligation to deliver
potentially • Settlement in
favorable
cash than redemption (4) Prorate share in net
entity’s own
derivates). assets (5) Expected cash flow from P&L,
equity
• Settlement in change in net asset and FV change in net
instruments
entity’s own (variable number assets only.
equity of equity Reclassifications
instruments instruments).
(variable
number of Difference b/w CA of EI FL to EI No
EI to FL
equity & FV of FL in equity Gain/Loss
instruments).
AK
IAS 32 Financial Instruments: Presentation (continued) Effective date: Periods beginning on or after 1 Jan 2005
Page#19
Scope:
Applies to all Legends:
Compound Financial Offsetting Financial Instruments = FI
type of FI except:
▪ Those interest Instruments Financial Assets = FA
in Financial liabilities = FL
A financial asset and a financial
subsidiaries, Equity Instruments = EI
Financial Equity liability are offset only when
associates & there is a legally enforceable
JVs (IFRS-10,
Liability Instrument Definition:
right to offset and an intention
IAS-27/28). 1. Compound Financial
to settle net or to settle both
▪ Obligation Instruments:
amounts simultaneously
under FV by discounting By deducting FV of FL Compound instruments
(mutually agreed).
employee using mkt Interest rate from FV of CFI that have both liability
benefits plan and equity characteristics
(IAS-19). 1. Interest, dividend, losses/gains are split into these
▪ Contracts components. The split is
related to FL recognized as
within the made on initial
expense in P&L; recognition of the
scope of IFRS- At maturity
2. Dividend related to EI instruments and is not
17 except recognized in equity.
1. Conversion; subsequently revised.
derivates that
are embedded The equity component of
2. Repurchase. the compound
in contracts
(certain instrument is the residual
condition). amount after deducting
▪ FI contracts, Before maturity the fair value of the
contracts & liability component from
1. Conversion; the fair value of the
obligation
under share- instrument as a whole.
2. Repurchase.
based No gain/loss arises from
payment initial recognition.
(IFRS-2).
Induced conversion (if any): Additional
payment recognize as loss in P&L
AK
IAS 33 Earnings Per Share Effective date: Periods beginning on or after 1 Jan 2005
Scope: Page#20
Applies to those Separate Presentation and
or individual FS of an entity
TYPES of Earnings Per Share Disclosure Legends:
and to those consolidated Earnings Per Share = EPS
FS of a group with a Weighted average no. of
parent: Present in the SOCI basic and diluted earnings per
Basic EPS Diluted EPS shares = WANS
• whose ordinary shares or share for profit or loss from continuing operations
potential ordinary shares (to be disclosed on (to be disclosed on attributable to the ordinary equity holders of the
face of SOCI) Definitions:
are traded in a public face of SOCI) parent entity and for profit or loss attributable to
market 1. Ordinary Share:
the ordinary equity holders of the parent entity for
• that files, or is in the is an equity instrument
the period for each class of ordinary shares that
process of filing, its Earnings attributable to the ordinary share holders / Weighted average no. that is subordinate to all
has a different right to share in profit of the
financial statements with of ordinary shares (WANOS) outstanding other classes of equity
period.
a securities commission or instruments.
other regulatory An entity that reports a discontinued operation
2. Potential Ordinary
organisation for the shall disclose the basic and diluted amounts per
Basic Basic Diluted Diluted Share:
purpose of issuing share for the discontinued operation either in the
is a financial instrument
ordinary shares in a public Earnings WANOS Earnings WANOS SOCI or in the notes.
or other contract that
market
may entitle its holder to
(a) profit/loss from continuing The weighted average adjust profit or loss The number of ordinary shares shall be the ordinary shares.
operations attributable to the number of ordinary shares attributable to ordinary weighted average number of ordinary shares 3. Dilution:
parent entity; and outstanding during the equity holders, by the calculated in the determination of basic earnings is a reduction in earnings
(b) profit/loss attributable to period and for all periods after-tax effect of: per share and adjusted earnings per share, taking per share or an increase
the parent entity, presented shall be adjusted (a) any dividends, interest into account potential ordinary shares plus the in loss per share resulting
shall be the amounts in (a) and for events, other than the or other items related to weighted average number of ordinary shares that from the assumption that
(b) adjusted for the after-tax conversion of potential dilutive potential ordinary would be issued on the conversion of all the convertible instruments
amounts of preference ordinary shares that have shares; and dilutive potential ordinary shares into ordinary are converted, that
dividends, differences arising on changed the number of (c) any other changes in shares. options or warrants are
the settlement of preference ordinary shares outstanding income or expense that Dilutive potential ordinary shares shall be deemed exercised, or that
shares, and other similar effects without a corresponding would result from the to have been converted into ordinary shares at ordinary shares are
of preference shares classified change in resources. conversion of the dilutive the beginning of the period or, if later, the date of issued upon the
as equity. potential the issue of the potential ordinary shares. satisfaction of specified
ordinary shares. conditions.
Increase or decrease in Ordinary shares may happen without a
corresponding change in resources. Examples include: Dilutive potential ordinary shares
• a capitalisation or bonus issue
Potential ordinary shares shall be treated as dilutive when, and only
• a bonus element in any other issue, e.g., a bonus element in a rights
when, their conversion to ordinary shares would decrease earnings per
issue to existing shareholders;
• a share split; and a reverse share split. share or increase loss per share from continuing operations.
AK
IAS 34 Interim Financial Reporting Effective date: Periods beginning on or after 1 Jan 1999
Scope:
Applies to entities
Page#21
required by legislation
Accounting Presentation Recognition and Definitions:
or other
pronouncements or that policies Measurement 1.Interim Period:
elect to publish interim Financial period shorter
financial reports than full year (12
• There is no requirement Entity may present complete set of Definitions of assets, liabilities, income
• IAS 34 does not apply months);
under IFRS that entities FS in the interim report or may and expense are the same for interim
where interim 2.Interim financial
must prepare interim present condensed set of FS in the period reporting as for annual reporting
financial statements report:
financial statements. interim report.
included in a Either a complete (IAS 1)
• Even if annual financial Use of Depreciation &
prospectus Estimates Amortization or condensed set of FS.
statements are prepared
• Standard does not Full Set of; Follow IAS 1 Condensed Set of FS
in accordance with IFRS, Interim reports
mandate which • A condensed SOFP Compliance:
the reporting entity is Consistency require a
entities should • A condensed SOCI Disclose the fact that
free to present interim Interim period financial greater use of
produce interim • A condensed SOCE interim FS comply with
financial statements on statements should be estimates than Inventories
financial reports. • A condensed SOCF IAS 34.
bases other than IFRS, as prepared using the same annual reports.
• Selected explanatory
long as they are not accounting principles
Restatement notes Uneven Cost
misrepresented as being that had been employed
A change in accounting IFRS compliant. Anticipated or
policy should be in the most recent deferred only if
• If interim financial annual financial
reflected by restating it would be Foreign
statements are IFRS statements
the financial statements possible to currency
based, then interim
of prior interim periods defer or translation
financial data should be Consolidation
of the current year and prepared in conformity If the most recent annual anticipate at
the comparable interim with accounting policies financial statements year end.
periods of the prior used in its annual were presented on a Use of
financial year. Seasonal, Cyclical or Occasional Revenue Estimates
financial statements. consolidated basis, then • Revenue received during the year should
• Recognition of assets, the interim financial not be anticipated or deferred where
Materiality liabilities, expenses and reports in the immediate
Materiality for interim anticipation would not be appropriate at
income, however, is the succeeding year should year end
reporting purposes may same as for the annual also be presented Impairment of
differ from that defined • Recognise revenue as it occurs. Asset
financial statements. similarly
in the context of an
annual period. Income Taxes
the rate to be applied to interim period earnings will take into account the expected level of earnings for the
entire forthcoming year, as well as the effect of enacted (or substantially enacted) changes in the tax rates
to become operative later in the fiscal year.
AK
IAS 34 Interim Financial Reporting (continued) Page#22
Current interim period and cumulative year to Comparable interim period and year to date of
Statement of date immediately preceding year
Comprehensive Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Cumulatively to the current financial year to date Comparative year to date of immediately preceding year
Statement of
Changes in Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Excludes:
▪ An owned investment
1. Biological Initial Subsequent property is recognized as an
assets related
to agriculture asset when it is probable that Inter-company rental: Transfers:
activity (IAS ▪ Initially the future economic benefits
that are associated with the Property related to Only permits assets
41 & IAS 16); measured at
Cost Model related parties is not to be reclassified into
& cost, Fair Value Model property will flow to the
investment property or out of the
2. Mineral rights including enterprise, and the cost of
in consolidated FS that investment property
& reserves the property can be reliably
transaction include both lessor & category when and
such as oil, Entity can measured.
natural gas, &
costs; lessee, because it is only when there is a
Cost model as choose either; ▪ An investment property held owner occupied from change in use and
similar non- per IAS 16. FV model or cost by a lessee as a right-of-use
Note: prospective of the provides examples. In
regenerative model.
Cost does not asset shall be recognized in group. isolation, a change in
resources. include start-up accordance with IFRS 16. management’s
costs, abnormal
Switching the Model ? intention does not
Disclosure: waste, or Transfer from & to Investment Property ?
initial operating Entity can change from provide evidence of a
▪ Selected Transfer is possible when there is a change in use or change in use.
losses incurred one model to other if Two circumstances:
model; before the asset’s purpose:
and only if change
▪ FV derived investment ▪ Start renting out the property that previously used 1. On disposal;
results in the FS 2. When investment
how? property achieves as office building (head-quarter) (transfer to
providing better, more property is
▪ Classification the planned level of investment property from owner-occupied
occupancy. reliable information permanently
criteria; property under IAS-16).
about the Company’s withdrawn from use
▪ Movement ▪ Investment ▪ Stop renting out the building & entity start using
financial position, & no future
during property held for it-self; economic benefits
by lessee as results & other events.
period; ▪ Entity held a land for undefined purpose & are expected.
▪ and so on… ROU asset shall
recently decided to construct an apartment house
be measured
initially at cost.
to sell when they are built (transfer from
investment property to inventory).
AK Effective date: Periods beginning on or after 1 Jan 2003
IAS 41 Agriculture
Scope: Page#28
Applies to: Recognition & Measurement
▪ Biological assets; Definitions:
▪ Agriculture
1. Active market:
produce;
Exists when; the items
▪ Government Measurement
grants related to
Recognition traded are homogenous,
willing buyers and sellers
biological assets.
can normally be found at
Biological assets or agricultural produce are any time and prices are
Agriculture Biological Assets recognized when: available to the public.
Produce 2. Agriculture activity:
The management of the
FV Gain/Loss (a) Entity controls the asset as a result of a
transformation of a
past event; biological asset for sale
The gain or loss ▪ Produce
Initial Subsequent into agricultural produce
on initial harvested (b) Probable that future economic benefit
from Measurement Measurement or another biological
recognition is will flow to the entity; & asset.
included in biological 3. Biological assets:
included in assets is (c) Fair value or cost of the asset can be A living animal or plant.
measured at • At FV less • At FV less estimated
profit or loss in measurement reliably. 4. Agriculture
FV less costs estimated point-of-sale costs
the period in produce:
to sell at the point-of-sale (except where fair
which it arises. The harvested produce
point of costs (except value cannot be of entity’s biological
harvest; where fair estimated reliably); assets.
▪ Such value cannot 5. Biological
measurement be estimated • If no reliable transformation:
is the cost at reliably); measurement of fair The process of growth,
value, biological
FV Gain/Loss degeneration, production
the date when
applying IAS 2 • f no reliable assets are stated at ▪ The gain or loss on initial recognition is & procreation that
measurement cost less included in P&L in the period in which it cause an increase in the
or other
of fair value, accumulated arises; value or quantity of the
relevant IFRS. biological asset.
biological depreciation and ▪ Subsequent change in fair value is
included in P&L in the period it arises. 6. Harvest:
assets are accumulated
The process of detaching
stated at cost. impairment losses produce from biological
(if any). asset or cessation of its
life.
AK Effective date: Periods beginning on or after 1 Jan 2003
IAS 41 Agriculture (continued) Page#29
▪ Unconditional government ▪ A the FV of the biological ▪ aggregate gain or loss from the initial
grant related to a biological asset becomes reliably recognition of biological assets and
asset measured at FV less measure-able, the FV must agricultural produce and the change in fair
estimated point-of-sale be used to measure the value less costs to sell during the period;
costs is recognized as biological asset; ▪ description of an entity's biological assets, by
income when, and only broad group;
when, the government ▪ Once a non-current ▪ description of the nature of an entity's
grant becomes available; biological asset meets the activities with each group of biological assets
criteria to be defined as held and non-financial measures or estimates of
▪ A conditional government for sale (or as part of a physical quantities of output during the
grant, including where a disposal group classified as period and assets on hand at the end of the
government grant requires held for sale) then it is period;
an entity not to engage in presumed FV can be ▪ information about biological assets whose
specified agricultural measured reliably. title is restricted or that are pledged as
activity, is recognized as security;
income when and only ▪ commitments for development or acquisition
when, the conditions of the of biological assets;
grant are met. ▪ financial risk management strategies;
▪ reconciliation of changes in the carrying
amount of biological assets, showing
separately changes in value, purchases, sales,
harvesting, business combinations, and
foreign exchange differences.
AK Effective date: Periods beginning on or after 1 Jul 2009
IFRS 1 First-time adoption of IFRSs Page#30
Scope: Recognition and
▪ Applies to first set of measurement
FS. Legends:
▪ Accounting polices Balance sheet = SOFP
should be apply for Financial Statements = FS
IFRSs effective and not Financial Instruments = FI
yet effective but early Exceptions (Choice): SOFP: Policies: Presentation and Transition to Financial assets = FA
adoption permit. ▪ Business Combination; ▪ Opening IFRS ▪ Same Disclosure: IFRS: Financial liabilities = FL
▪ Recognize/derecogniz ▪ Borrowing costs; SOFP is made accounting ▪ First set of FS must Entity must
e assets/liabilities ▪ Joint arrangements; on transition policies in present 3 column explain the Restructuring of IFRS:
where necessary, ▪ Leases; date; opening FS in SOFP. E-g for 2019 FY effect on FS from IFRS-1 has been
make reclassification ▪ Share based payments; ▪ Consistent first time (Opening 2018, YE previous GAAP amended many time.
where necessary to ▪ FV or revaluation as applications of adoption; 2018 & 2019) to IFRS and shall
make FS as per IFRS. deemed cost; all IFRSs ▪ Change in ▪ And below notes for disclose: Current Versions of
▪ Compound FI; (including accounting first time adoption: IFRSs:
▪ Investments in shares; comparatives). policies for first a) Reconciliation of 1. Reason it IFRS requires first time
▪ Cumulative translation year; IAS 8 do equity under stopped adopter to apply the
Note applies when applying
differences; no applies. previous framework current version of IFRSs,
entity: IFRSs; and
▪ Extinguishing FL with EI; and under IFRS now; without considering
1. Stops presenting FS 2. Reason it is
▪ Severe hyperinflations; b) Recon. of total superseded or amended
as per national Restriction for resuming the
▪ Government loan & comprehensive versions. This:
requirements; retrospective: application
Stripping cost in production income under ▪ Enhances
2. Presented FS in ▪ Derecognition of FA of IFRSs.
phase of surface mine; previous framework comparability;
previous year as per & FL.;
▪ Insurance contracts; and under IFRS now; ▪ Avoids unnecessary
national ▪ Hedge accounting;
▪ Embedded derivates. c) In case of interim costs.
requirements; ▪ Estimates;
▪ Designation of previously financial reports, the
3. Presented FS in ▪ NCI.
recognized FI; above recon. as well.;
previous compliance
▪ Decommission liabilities; d) Errors made Use of FV as deemed cost:
to IFRS (Despite of
▪ Assets recognized as per previously should be If the entity uses FV in its opening IFRS
auditor
IFRIC 12 (Service separately SOFP as deemed cost, it shall disclose for
qualifications).
concession); distinguished; each line item in opening IFRS SOFP:
e) Additional disclosure 1. Aggregate of those FVs; and the
as set by IFRS 1. 2. Aggregate adjustments to the
carrying amount reported under
Entity that has applied IFRSs in a previously, but whose recent FS do not contain statement of compliance with IFRSs, must either apply IFRS 1 or else previous GAAP.
apply IFRSs retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
AK Effective date: Periods beginning on or after 1 Jan 2005
IFRS 2 Share-based payment Page#31
Scope: Recognition and
Applies to: measurement Legends:
▪ Equity settled; Net assets = NA
▪ Cash settled (by Share-based payment Disclosures Joint venture = JV
incurring liability to Requirements Fair value = FV
supplier) that is based
on share price); Recognition Measurement Definitions:
▪ Transaction in which 1. Vesting Conditions:
entity received That determine whether
Vesting Non-Vesting entity receive services that
goods/services and ➢ Recognize
either party has option Conditions Conditions when entitle the counter party to
receive shared-based
to settle either in cash goods/services
payment and is either; a
or equity. received. service condition or a
➢ Included in grant date FV ➢ Increase an
calculation performance condition.
equity (equity 2. Performance target:
IFRS 2 not applies to: Service Performance ➢ No adjustment to No. of shares settled). Defined by reference to;
▪ When IFRS 3 or IFRS 11 condition condition or vesting date amount for actual ➢ Record liability ➢ Entity’s own operations
applies (Acquires goods as results. (cash settled). or the operations of
part of NA or contribution in
➢ If goods/service another entity in the
business in JV). Require the Require the same group or
Nature & extent of received do not
▪ Shared based payments counterparty counterparty to ➢ The price of entity’s EI
share-based payment qualify for
under contract in scope of IAS to complete complete a specified or EI of another entity in
containing; (a) recognition as
32 or IFRS 9. a specified period or service & the same group.
description of each assets,
▪ Transactions with employees. period or Specified performance A Performance target might
type of arrangement, recognize as either relate to
service. target to be met. expense.
➢ Excluded from grant date (b) no. & weighted performance of entity as a
FV calculation. avg. exercise option; whole or to some part of
(c) price on which the entity (or part of
➢ Adjust to No. of share
option is exercise; (d) group), such as division or
and/or vesting date Non-Mkt Mkt range of exercise
employee.
amount for actual results.
condition condition price.
Group settled
Equity settled
Choice Cash settled
Entity is required to record in
Transaction with employee: Measure at FV of EI at grant date, FV separate FS: Who receive
never remeasured and grant date FV is recognized over vesting Counter party has right to choose: Consider entity has Measure liability at FV, good/service regardless who
period. Transaction with non-employee: Measure at FV of issued compound EI. remeasure FV of liability settle. The term group mean as
goods/service received if FV of that cannot be measured than FV of Entity has right to choose: Entity will determine if they has each YE and settlement per IFRS 10 (Parent &
EI granted. present obligation to settle in cash than cash else vice versa. date, record change in P&L. subsidiaries)
AK Effective date: Periods beginning on or after 1 Jul 2009
IFRS 3 Business Combinations Page#32
Scope:
Transaction or event Legends:
in which acquirer Acquisition Method Non-controlling interests
Disclosure Key Notes
obtains control over = NCI
business Business combination achieved in
Goodwill = GW
E-g: Acquisition of Recognize and measure GW stages:
Step#1 ▪ When acquirer obtain control on Definitions:
shares/net assets, or gain from bargain purchase
mergers and reverse acquiree in which it held an equity 1. Control:
Identify the acquirer: interest immediately before Refer IFRS 10 for control definition.
acquisition). IFRS 10 identify the acquirer - acquisition date is known as 2. Business:
Entity that obtains control of ▪ GW is excess between total business combination achieved in Integrated set of activities and
IFRS 3 not applies to: the acquiree. consideration transferred & any stages. assets that is capable of being
NCI VS net assets acquired (FV) ▪ Acquirer remeasure its previously conducted and managed for the
▪ Formation of Joint held equity interest in acquiree at
arrangements. including any deferred taxes; purpose of providing goods/service
Step#2 ▪ GW can be grossed up to acquisition date FV, any resulting to customer, generating
▪ Acquisition of gain/loss record in P&L.
include amounts attributable to investment income or generating
assets/group of Determine acquisition date: other income from ordinary
assets not a business NCI (If NCI is measured at FV); Business combination achieved
Date on which acquirer activities.
combination. ▪ Gain from bargain purchase without transfer of consideration:
obtains control.
▪ Combination under immediately recognized in P&L; ▪ Acquisition method applies too.
Subsequent measurement:
▪ Consideration transferred is ▪ Such circumstances include:
common control. ▪ Subsequently acquirer
Step#3 measured at FV (including ✓ Acquiree repurchase sufficient no. measures its assets &
contingent); of its own shares for existing
Acquirer shall disclose; nature & liabilities in accordance with
Recognize & ▪ Contingent consideration is investor to obtains control.
financial effect of business other applicable IFRSs
measuring the either classified as liability or EI ✓ The acquirer & acquiree agree to
combination occurs either; ▪ But, IFRS 3 includes
identifiable assets (IAS 32); combine their business by contract
1. During current period; accounting requirements for
acquired, liabilities Step#4 ▪ Contingent consideration alone.
reacquired rights, contingent
2. After period end but before measured as per IFRS 9 (FL)
assumed & any NCI liabilities, contingent
FS authorized to issue. need to be remeasured at FV What can be the part of
in the acquiree. consideration &
with changed reported in P&L. Business Combination ?
Acquisition and other costs: indemnification assets.
Measurement period: Cannot be capitalized and be expense
IFRS 3 Requires that assets &
▪ At acquisition date, acquirer recognizes (separately from GW), the Applies when initial accounting is in P&L in period incurred.
liabilities acquired need to
assets acquired, liabilities assumed and any NCI in acquiree; Cost to issue debt/equity are recognized
incomplete at end of YE of business constitute a Business!
▪ Assets/liabilities to be measured at acquisition date FV; as per IAS 32 & IFRS 9.
combination. Measurement period ends Business should have;
▪ Certain exceptions to be recognition: contingent liabilities, income when acquirer receives information 1. Input; (2) Process; (3) Output.
tax, employee benefits, and so on; Pre-existing relationship:
about fact, not to exceed 1 year after In case of pre-existing relationship in b/w
▪ NCI measured at acquisition date at FV or under proportionate acquisition. acquirer & acquiree, this must be accounted
method. for separately from business combination.
AK Effective date: Periods beginning on or after 1 Jan 2005
IFRS 4 Insurance Contracts Page#33
Scope: Recognition & Liability Adequacy
▪ Insurance contracts Measurement Test Legends:
that an entity issues and Financial Instruments = FI
reinsurance contracts Financial risk = FR
▪ Life insurance & prepaid funeral
that it holds Insurer is required to assess at each YE if its Insurance risk = IR
expenses;
▪ FI that an entity issues recognized IL are adequate, using current Financial asset = FA
▪ Life-contingent annuities and
with a discretionary Point to consider: estimates of future cash flows under its Insurance liability = IL
pensions;
participation features. Accounting insurance contracts. If it shows that the carrying
▪ Disability and medical cover.
▪ Surety/fidelity/performance/bid policies changes amount of its IL is not sufficient, the liability is
If insurance contracts bonds; are restricted. increased, and a corresponding expense is
include a deposit ▪ Credit insurance; recognized in P&L.
component, unbundling ▪ Product warranties (other than
may be required. those issued directly by a
manufacturer, dealer or retailer);
Key Notes Disclosure
Not insurance contracts: ▪ Title insurance and Travel
▪ Investment contracts (do assistance;
not expose issuer to ▪ Catastrophe bonds that provide IFRS provides additional Disclosures that identifies & explains amount arising
significant risk). for reduced payments of guidance to: from insurance contracts:
▪ Contract that pass all principal, interest (or both) if a
significant risk back to specified event adversely affects ➢ Change in accounting ➢ Accounting policy & related
policyholder. the issuer of the bond; policies. assets/liabilities/income/expense.
▪ Self insurance. ▪ Insurance swaps and other ➢ Prudence. ➢ Recognized assets/liabilities/income/expense.
▪ Gambling contracts. contracts that require a payment ➢ Insurance contract acquired ➢ Effect of change in assumptions.
▪ Derivates that expose one based on changes in climatic, in business. combinations or ➢ Recon. of changes in liabilities & assets.
party to FR but not IR. geological or other physical portfolio transfer.
▪ Credit related guarantee. variables that are specific to a ➢ Discretionary participation Disclosures that enable users to evaluate the nature
▪ Product warranties. party to the contract; features. & extent of risk from insurance contracts:
▪ Financial guarantee-IAS 39. ▪ Examples of contracts that are
▪ Does not address the insurance contracts (if transfer of Its highly recommended that ➢ Objective, policies & processes for managing risk.
accounting for FS held by insurance risk is significant); insurer gain a full ➢ Information about
issuers, but temporary ▪ Insurance against theft or understanding of IFRS 4 as insurance/credit/liquidity/market risk.
exempt from IFRS 9 (until damage to property; requirements & disclosures are ➢ Exposure to mkt risk arising from embedded
January 1, 2023). ▪ Insurance against product onerous. derivates.
▪ Overlay approach /professional/civil/legal liability
permitted for designated expense;
FA. ▪ Reinsurance contracts.
AK Effective date: Periods beginning on or after 1 Jan 2005
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations Page#34
Scope:
Applies to: Legends:
▪ All NCA & disposal Measurement: Non-current asset = NCA
groups of entity that are;
Classification of NCA held for Discontinued
▪ Prior to classification assets Current assets = CA
held for sale or held for sale or distribution to owners measured with applicable IFRSs; operations Cash generating unit =
distribution to owners. ▪ After reclassification, assets are CGU
▪ Assets classified as NCA measured at lower of carrying Financial asset = FA
as per IAS 1 shall be only amount & FV less cost to sell.; Presentation: Fair value = FV
reclassified to CA if it Classify as NCA as held for sale if it’s ▪ Impairment must be considered at ▪ Classification depends when Statement of
meets criteria of IFRS 5. carrying amount will be recovered time of classification as held for sale operations meets requirements comprehensive income =
▪ If entity disposed entire principally through a sale transaction & subsequently; of held for sale; SOCI
CGU, then IFRS 5 applies rather than through continuing use. ▪ Subsequent increases in FV cannot ▪ Results are presented as single
to the group as whole. Below criteria must met: be recognized in P&L in excess of line item in SOCI; Definitions:
cumulative impairment losses that ▪ Disclosure for cashflows; 1. CGU:
➢ Asset is available for immediate have with this IFRS or IAS 36; ▪ Comparatives restated. The smallest identifiable
IFRS 5 doesn't applies to: sale ▪ NCA classified as held for sale are group of assets that
▪ Deferred tax assets ➢ Term of sale must be usual & not depreciated; generates cash inflows
(IAS 12). customary for sale of such assets ▪ Adjustment of No. of shares and/or
Disposal Group ?
that are largely
▪ Asset arise from ➢ Sale must be highly probable vesting date amount for actual A new concept
independent of the cash
employee benefits (IAS ➢ Mngt. is committed to a plan to result. introduced by IFRS-5 and inflows from other assets
19). sell it represents a group of or groups of assets.
▪ FA scope (IAS 39/IFRS ➢ Asset must be actively marketed assets and liabilities to be
Disclosure: 2. Discontinued
9) for sale at reasonable price in disposed of together as a
relation to its FV. ▪ NCA held for sale are disclosed operation:
▪ NCA accounted for FV. separately from other assets in group in a single Component of entity that
➢ Sale should be complete with in 1
▪ FA measured at FV less SOFP; transaction. either has disposed of or
year
cost to sell as per IAS ➢ Special rule for subsidiaries ▪ Gain/los arising from initial or is classified as held for
41 subsequent FV measurement of sale & either:
acquired with a view for resale
▪ Contractual rights disposal group or NCA held for sale ➢ Represent separate
under insurance if not presented separately in SOCI major line of business
Reclassification from held for sale to
contract IFRS 4 & line item that includes that ➢ Is part of single plan
held for distribution to owners is not
gain/loss; to dispose separate
a change to a plan and therefore not
a new plan! ▪ Prior year balances in SOFP are not major line of business
classified as held for sale; ➢ Is a subsidiary
▪ If applicable the reporting segment acquired exclusively
in which NCA or disposal group is with a view to resale.
presented.
AK Effective date: Periods beginning on or after 1 Jan 2005
IFRS 6 Exploration for and Evaluation of Mineral Resources
Scope: Page#35
Applies to:
▪ Expenses incurs on Legends:
E&EMR
Recognition and Presentation & Exploration & Evaluation
measurement disclosure of Mineral Resources =
IFRS 6 not applies to: E&EMR
Expenses incurred:
▪ Before E&EMR (i-e
Prior to obtain Initial Subsequent Presentation Disclosure
legal license to
explore).
▪ After technical Cost
feasibility &
Revaluation Tangible Intangible
commercial Cost Model
viability of model
extracting mineral
resource are
demonstrable. ▪ Accounting policies of
E&EMR expenses &
▪ Entity determine its Impairment: Key Note: evaluation assets;
policy to recognize Entity should test for impairment If; IFRS 6 allows impairment ▪ Amount of
expenses as E&EMR. ✓ Right to explore is expired or will expire soon (& entity to be assessed at a level assets/liabilities/income/
▪ Below example might has no intention to renew).
higher than the CGU expenses/operating &
be included in initial ✓ Substantive expenses required on E&EMR is neither investing cashflows from
under IAS 36, but require
measurement: budgeted nor planned. E&EMR.
✓ E&EMR have not led to discovery of commercially viable measurement of the
✓ Acquisition of rights to impairment in accordance ▪ Discloses as separate
quantities & entity decided to discontinue such activities
explore; with IAS 36. class of assets either as
✓ CA of asset is unlikely to be recover in full-from
✓ Topographical, per IAS 16 or IAS 38.
successful development or sale.
geological,
geochemical &
geophysical studies.
✓ Exploratory drilling and
trenching.
AK Effective date: Periods beginning on or after 1 Jan 2007
IFRS 7 Financial Instruments: Disclosures Page#36
Scope:
Applies to: Conditions Legends:
▪ All Non-financial asset = NFA
recognized/unrecognize Financial Instruments = FI
d FI (including contract Statement of Financial
to buy or sell NFA) SOFP & Position = SOFP
Risk from FI
performance Statement of
Exempt from IFRS 7: comprehensive income =
▪ Interest in SOCI
subsidiaries/Associates/J
Vs in case of IAS 27/28 or Quantitative Qualitative Definitions:
IFRS 10/11 permits SOFP SOCI Others 1. Liquidity risk:
accounting as per IAS When entity encounter
39/IFRS 9. difficulty in meeting
▪ Assets/liabilities arise ▪ CV of each
Liquidity risk Credit risk Market risk obligations associated FL.
▪ Gain/loss arising for
under IAS 19. category of FI on each category of FI. 2. Credit risk:
▪ Insurance contracts. face of SOFP & in ▪ Total interest income When one party to FI cause
▪ Maturity ▪ Maximum ▪ Sensitivity
▪ FI, contracts/obligation notes. & interest expense. financial loss for other party
analysis of FL. exposure to analysis for by failing to discharge an
as per IFRS 2 except ▪ Info. Of FV of ▪ Fee income/fee ▪ Time bands & credit risk. each market obligation.
under scope of IAS loans/receivables. ▪ Interest on impaired interest rate as ▪ Collateral held as risk and 3. Market risk:
39/IFRS 9. ▪ FL designated FA. based on security & other showing When FV or future
▪ Puttable instruments FVTPL. ▪ Amount of entity credit impact on cashflows of FI will fluctuate
(IAS 32). ▪ FA reclassified. impairment loss for judgements. enhancement. P&L. due to change in market
▪ Detail of FA each FA. ▪ How this risk is ▪ Information on ▪ In case prices.
Fair Value Hierarchy: pledged.
managed. FA that are sensitivity
All FI measured at FV must ▪ Recon. of ▪ Accounting policies. either past due analysis is
be classified into levels allowance ▪ Hedge accounting. or impaired. prepared,
below: account for credit ▪ FA for each class of ▪ Information showing that Currency risk
Level-1: Quoted price in loss FI. disclosure method about collateral interdepend
active marker. ▪ Compound FI & assumption to & other credit encies
Level-2: No quoted price ▪ Detail of default calculate FV and enhancement between risk Interest rate risk
but observable price from & loan breaches. disclosure if FV obtained. variables and
mkt. cannot be it is used to
Level-3: Input that are not determined. managed
based on observable Other price risk
financial risk.
market. Sensitivity Analysis
AK
Scope:
IFRS 8 Operating Segments Effective date: Periods beginning on or after 1 Jan 2009
Page#37
Applies to:
Annual & interim FS Legends:
Entity required to disclose all to enable users of FS to evaluate
(separate/standalone or Core Principle Financial statements = FS
consolidated FS of group) nature & financial effect of business activities in which it engages. Non-current asset = NCA
with parent:
Chief operating decision
▪ Whose debt or EI are
trade in public market; or maker = CODM
▪ Files FS to securities
commission or other Quantitative Operating Reportable Reconciliation Disclosures
relevant regulatory Thresholds Segments
Segments
body.
Major disclosures:
Reconciliation ▪ Measure of P/L & total assets
▪ Information must be An operating segment is a Separate of total assets of reportable segments (if
disclosed about an component: to the entity’s information if provided
disclosure is
operating segment if they ▪ That engage in assets should regularly to CODM) .
meet any below:
required
business activity (earn only be ▪ Judgement made by
✓ Reported revenue is 10% about each
revenue & incur provided if the management for purpose of
Aggregation or more of combined expenses). segment that
segment aggregating operating
revenue of all operating ▪ Whose operating exceed
Criteria reporting assets are segments.
segments. results are regularly ▪ Its not necessary IFRS
✓ Absolute profit is 10% or reviewed by CODM. threshold. regularly
compliant inf. as it is based
more of combined profit of ▪ For which discrete provided to
Two or more segments on amount reported
all operating segments. financial information is the Chief
may be aggregated if internally.
✓ Assets are 10% or more of available. Operating ▪ Operating segment inf.
they are similar in any of combined assets of all Decision disclosed must be reconciled
below: operating segments.
✓ Nature of Maker. to IFRS amount in FS.
▪ If total external revenue by ▪ Following geographical inf. If
product/service.
operating segment
✓ Nature of production. available: (Revenue from
constitute less than 75% of external customer, NCA
process.
✓ Type/class of total revenue, additional located in country local or
customer. operating segment shall be outside.
✓ Method used to identified as operating ▪ Extent of reliance on major
distribute their segments until at least 75% customers. It will disclose if
product/service. of entity revenue in more than 10% revenue from
✓ Nature of regulatory included in reportable one customer.
environment. segments.
AK Effective date: Periods beginning on or after 1 Jan 2018
IFRS 9 Financial Instruments Page#38
Legends:
Fair value = FV
Recognition & Impairment of FA
Financial assets = FA
measurements Financial liabilities = FL
▪ Meet SPPI contractual Fair value through profit
cashflows test. General or loss = FVTPL
Simplified
▪ Entity holds instrument to Fair value through other
Initial Subsequent collect cashflow & to sell FA.
Approach Approach comprehensive income =
Subsequent: Amortized FVTPL FVTOCI
▪ FV, all gain/loss (not relating cost Equity instruments = EI
At FV to impairment in P&L) Step#1 Debts Instruments = DI
Financial recognized in OCI. ▪ FL held Expected credit loss=ECL
▪ Change in FV recorded in OCI ▪ All FL with for 12-month ECL (gross interest): Embedded derivates=ED
Liabilities are recycled to P&L on some trading. ▪ When no significant increase Non-financial asset = NFA
Financial Assets derecognition or exceptions ▪ Derivates Hedging instrument = HI
in credit risk.
reclassification. like one on FL. ▪ Interest on gross basis.
FVTPL, Subsequent:
Financial FV, all Short term receivables:
DI guarantee gain/loss Step#2 ▪ Life-time ECL (stage#2) only.
Amortized FVTPL FVTOCI & recognized in ▪ ECL on Trade receivable based
cost EI commitme P&L. on provision matrix.
Life-time ECL (gross interest):
nt to ▪ When significant increase ▪ Adjustments of historical
provide a in credit risk. provision rates to reflect
Assessment ▪ FA not meet amortized cost (included ▪ Available for loan. relevant information about
▪ Interest on gross basis.
assets held for trade. investments in EI current condition & reasonable
▪ Option to designate is available if doing (not held for & supportable forecasts about
so eliminates/reduce inconsistencies. trading). Step#3 future expectations.
▪ Subsequently, FV
(1) Business (2) Contractual gain/loss record in Life-time ECL (net interest):
Model Cashflows OCI. ▪ When credit impairment.
Note:
Option to designate ▪ Change in FV not ▪ Interest on net basis.
if irrevocable. recycled
subsequently to P&L. Practical Expedients: (30-days rebuttable presumptions):
Overall Instrument by
Subsequent: ▪ Dividends in P&L. ▪ That credit risk has increased significantly when contract payments are more than 30 days due.
business instrument
FV, all gain/loss Note: ▪ Hence, FA is in stage#2 and life-time ECL would be recognized.
recognized in P&L. Designation in initial ▪ It can be used when that “even payments are 30 days or more due, it does not have significant increase in
recognition is optional & credit risk of FI.
irrevocable.
AK Effective date: Periods beginning on or after 1 Jan 2018
IFRS 9 Financial Instruments (continued) Page#39
Legends:
Fair value = FV
Derecognition Embedded Derivates Hedge Accounting Financial assets = FA
Financial liabilities = FL
Fair value through profit
or loss = FVTPL
Financial Financial ED within FA ED within host (1) Hedging (2) Designation Fair value through other
host contract contract that is FL relationship & comprehensive income =
Assets Liabilities documentation FVTOCI
YES Equity instruments = EI
Have the right to cashflow Must consist Debts Instruments = DI
Derecognize asset
from asset expired? of: Must finalize at Expected credit loss=ECL
Whole contract in ▪ Separated
▪ FL derecognized when ✓ Eligible HI. inception: Embedded derivates=ED
NO its entirety is from host
extinguished. ✓ Eligible ✓ Hedge Non-financial asset = NFA
accounted for a contract.
▪ Difference b/w CV of FL Hedge relation. Hedging instrument = HI
Entity transferred its right single contract as ▪ Account for
extinguished/transferred to Item. ✓ Risk Mngt.
to receive cash flow from per IFRS 9. as per IFRS 9
3rd party & consideration (FVTPL) as Strategy & Definition:
asset?
paid is recognized in P&L. derivate. objective for 1. Embedded derivates:
NO Note: undertaking These are components of
Host contract the hedge. hybrid contracts that cause
Entity assumed an
NO (NFA)is ✓ Hedge item & some (or all) of contractual
obligation to pay cashflow Continue HI. cashflows to be modified
accounted for in according to specified
from asset (IFRS 9)? recognize asset ✓ How hedge will
relevant IFRSs. variables (e-g interest rate,
be assessed.
YES commodity price, foreign
exchange rate, index etc..).
Entity transferred YES
substantially all risk & Derecognize asset (3) All 3-hedge effectiveness requirements met:
reward?
If mid-year acquisition:
✓ Assume profits accrue over time; Consolidated statement
✓ Usually assume dividends paid by S are paid of financial position
out of post-acquisition profits.
P’s
1-Groupstructure dividend Separate analysis
income Changes
2-Consolidation columns for each presented in a
schedule from S is type of share capital
Eliminate Adjust
not single column
3-NCI Profit/Loss on increase/ - and reserve
consolidate
transfer against decrease Consolidated
in dep’n d in S
seller’s books post-
against dividend is
acquisition
seller’s shown in
profits only
books CSCE
- Time-
apportion NCI b/f = If S is acquired in the
results of S Redeemable Interest/ NCI%*S’s year, NCI added on
Remove Create PURP
sale from then preference manage share capital acquisition is amount
(increase cost plus reserves
revenue deduct shares ment included in goodwill
of sales of b/f.
and cost post- charges calculation.
selling
of sales acquisition
company)
intra-group Distributions
items treated as a Cancel on
- Recognize finance cost consolidation. NCI share of TCI for the
Doesn’t Affects - goodwill year from SCPLOCI.
affect NCI if S is impairment
NCI selling as
Cancel on
company expense(if
consolidation.
any).
AK Effective date: Periods beginning on or after 1 Jan 2013
IFRS 11 Joint Arrangements
Scope: Page#43
Applies to: Recognition &
All parties subject to measurement Legends:
JA. Joint arrangements = JA
Joint operation = JO
Joint venture = JV
Financial statements = FS
Joint Joint Ventures Definitions:
Operations 1. Joint arrangements:
Joint Arrangement Consolidated/individual FS: A joint arrangement:
Consolidated/individual FS:
Decision Tree Apply equity method IAS 28. (a) Binds parties by
contractual
A joint operator recognizes in agreement;
relation to interest in JO; Separate FS:
Recognize interest either; (b) Gives two (or more)
(a) Its assets/liabilities, including its parties joint controls.
share of assets/liabilities held (a) At cost;
jointly. (b) FV (IFRS-9/IAS-39);
Not a separate Separate (c) Equity method (IAS 28).
2. Joint venture:
(b) Its revenue/expenses from sale A joint arrangement in
of its share of output/expenses
vehicle vehicle
which the venturers have
arising from JO. rights to the net assets of
Above are accounted as per the venture.
applicable IFRSs.
Separate FS: Disclosures: 3. Joint operation:
Same treatment as for NO Following should be check:
Refer to IFRS 12 A joint arrangement
consolidated/individual FS as above. (a) Legal form; whereby each joint
“Disclosures of
Joint operation (b) Contractual terms; operator has rights to
interests in
(c) Other facts other entities”
assets and obligations for
the liabilities of the
YES operation.
Note:
The acquisition of an interest in a joint
operation in which the activity constitutes a Joint Venture
business should be accounted for using the
principles of IFRS 3.
AK Effective date: Periods beginning on or after 1 Jan 2013
IFRS 12 Disclosure of Interests in Other Entities Page#44
Scope:
Applies by entities that have Legends:
interest in : Joint arrangements = JA
▪ Subsidiaries, JA,
Required Disclosures
Joint control = JC
Associates & Joint venture = JV
Unconsolidated Structured entity = SE
structured entities. Unconsolidated
Interest in Interest in JA & Significant Judgments
Interest in UCSE & Assumptions structured entity = UCSE
Subsidiaries Associates Consolidated structured
IFRS 12 not applies to:
▪ Employee benefits IAS 19 entity = CSE
▪ Separate FS IAS 27. Non-controlling interest
▪ Interest held by entity Information that enable Information that enable Information that enable users Disclosure in = NCI
that participates in but users to understand & users to evaluate: to understand & evaluate: determining:
evaluate: (a) Nature of & changes in (a) Nature & extent of its Definitions:
doesn’t have JC or ▪ Control over entity.
(a) Composition of group risk associated with interest in UCSE.
significant influence over ▪ JC over 1. Structured entities:
& NCI interest interests held. (b) Nature of & changes in
a JA. (b) Nature & extent of arrangement. Entity that has been
(b) Nature, extent, & risk associated with its
▪ Interest accounted for as significant restriction interest in UCSE. ▪ Significance designated so that voting
financial effects of
per IFRS 9 except for on ability to access or interest in JA & Including information influence over or similar rights are not
interest measured in use assets, & settle associates (including about exposure to risk another entity; the dominant factor in
associates or JV at FV as liabilities, of group contractual from involvement in ▪ When JA is deciding who control the
required by IAS 28. (carrying amount of relationships with previous periods (even if structured through entity.
Note: assets/liabilities to other investors & JC or entity no longer has any separate vehicle, its 2. Income from SE:
Some, but not all, disclosure which those restriction significant influence). contractual involvement classification (e-g JO Includes fee, interest,
requirements apply to applies). with entity at financial dividend, gain/loss on
or JV)
(c) Nature of & changes in period).
interests classified as held remeasurement or
risk associated with
for sale as per IFRS 5. interest in CSE. derecognition of interest
(d) Consequences of in SE & gain/loss from
changes in ownership transfer of asset &
interest in subsidiary liabilities to SE.
that do not result in 3. Interest in another
loss of control. entity:
(e) Consequences of losing Contractual/non-
control of a subsidiary contractual environment
during financial period. that exposes an entity to
variability of returns
from the performance of
other entity.
AK Effective date: Periods beginning on or after 1 Jan 2013
Scope:
IFRS 15 Revenue from Contracts with Customers Page#47
Applies to all contracts YES
Separate contracts
with customers except: Contract (i) Distinct Goods & Legends:
▪ Lease contracts 5 – Steps Model modifications Service; (ii) SSP Performance Obligations
(IFRS 16). Not a Separate = PO
NO
▪ Insurance contracts contracts Financial Instruments = FI
Combination of Standalone Selling Price =
IFRS 4 / IFRS 17. Step # 1 multiple contracts
▪ FI & other SSP
contractual rights & Financing component=FC
Identify the Contact IF
obligations (IFRS 9 / Present value = PV
Replacement of Continuation of
IAS 39, IFRS 10, IFRS Either; modification in
original contract
11, IAS 27 & IAS 28). I. Contracts are negotiated as package; with new contract existing contract
Definition:
▪ Certain non- Step # 2 1. Performance
II. Consideration for each contract is
monetary interdependent obligations:
exchanges. Identify the PO(s) III. Overall goods/services of contracts Prospective Catch up basis A promise to transfer to the
represent single PO. modification modification customer either;
(a) A distinct good(s) or
Distinct service(s);
Step # 3 Variable consideration e-g discount, rebates, refund, credits, concession, incentive, bonus, penalties, contingent payments. (b) A series of substantially
goods/services
the same distinct goods
Determine
Significant FC (Record on PV) or services that have
Transaction price the same pattern of
I. Customer Entity should a/c for this transfer to the
Consideration payable
can benefit as reduction in customer, and the
Step # 4 to customer
pattern of transfer is
from goods transaction price (ONLY
if not in exchange for (i). both over time and
on its own; Allocate the (ii). Most
Non-cash consideration Expected represents the
II. Goods/ Transaction price to PO distinct goods/services). likely
value progress towards
service are method complete satisfaction
separable method
Accounted for at FV of the performance
from each Step # 5 obligation.
other YES Based on SSP
Recognize revenue
when each PO is Standalone (observable)
satisfied price 1. Adjusted market
assessment approach
NO 2. Expected cost-plus
margin approach
3. Residual approach
AK Effective date: Periods beginning on or after 1 Jan 2018
IFRS 15 Revenue from Contracts with Customers (continued) Page#48
Legends:
5 – Steps Model Presentation & Performance Obligations
Disclosure = PO
Financial Instruments = FI
Standalone Selling Price =
Step # 5 SSP
Financing component=FC
Recognize revenue Present value = PV
when each PO is Contract asset = CA
satisfied Contract liability = CL
Models Legends:
Financial guarantee = FG
Financial instrument = FI
Premium Allocation Variable fee Non-financial risk = NFR
General Model Approach Approach Contractual service
margin = CSM
Legends:
Financial guarantee = FG
Investment Contracts Modifications Financial instrument = FI
Reinsurance Presentation &
with Discretionary Non-financial risk = NFR
Contracts Held disclosure
Participation Features Contractual service
Derecognize original capital if one of the following margin = CSM
apply;
General model is modified as follows: General model is modified as follows: (a) Had the modified terms been included at
a) The date of initial recognition is the date Group of reinsurance contracts held contract inception:
Note:
the entity become party to the contract; recognized from earlier of following: (i) It would have been outside IFRS 17; The CSM is subsequently
b) the contract boundary is modified so that (ii) Different components would have measured as the previous
cash flows are within the contract a) The beginning of the coverage period of been separated from the host contract; carrying amount adjusted
boundary if they result from a substantive the group of reinsurance contracts held; & (iii) It would have had a substantially different for:
contract boundary; or (a) The effect of any new
obligation of the entity to deliver cash at a b) The date the entity recognizes an onerous
(iv) It would have been included in a different contracts;
present or future date. The entity has no group of underlying contracts, if the entity
group of insurance contracts. (b) Interest accrued on the
substantive obligation to deliver cash if it entered into the related reinsurance
has the practical ability to set a price for contract held in the group of reinsurance CSM;
(b) The original, but not modified, contract met
the promise to deliver cash that fully contracts held at or before that date. (c) Changes in the fulfilment
the definition of an insurance contract with direct
reflects the amount of cash promised & participation features (or vice
cash flows;
related risks. The net cost or net gain from a group of versa). (d) The effect of any foreign
c) the allocation of the CSM is modified so reinsurance contracts is deemed to be the exchange; and
that it is recognized over the duration of CSM, unless the reinsurance covers underlying (c) The premium allocation approach was applied (e) The allocation of the
the group of contracts in a systematic way onerous contracts. In this case, the gain is to the original contract, but the eligibility criteria CSM.
for that approach is not met for the modified
that reflects the transfer of investment recognized immediately if the reinsurance
contract. Changes in fulfilment cash
services under the contract. contract held is recognized before or at the
same time as the loss arising on the underlying flows that result from
If none of the above apply, do not derecognize changes in the risk of non-
contracts. the contract and instead treat changes in cash
performance by the issuer
flows caused by the modification as changes in
estimates of fulfilment cash flows .
of the reinsurance contracts
held do not relate to future
SOFP SOCI Presentation Disclosure service and therefore do not
adjust the CSM.
- Insurance contracts issued - Insurance revenue; Disclosure should include qualitative & quantitative info. about amount recognized The premium allocation
that are assets; - Insurance service expense; in SOFP, SOCI, SOCF, including recon. of amounts & component comprise insurance approach may be used for
- Insurance contracts issued - Insurance finance contract assets/liabilities & significant judgement concerning their recognition & reinsurance contracts held if
that are liabilities. income/expense. valuation. certain criteria are met.
Page#55
References:
▪ https://www.ifrs.org/
▪ IASB, The Annotated IFRS® Standards issued at January 1, 2020, reflecting changes not yet required
IFRS 16 – Leases
https://www.linkedin.com/pulse/whether-contract-contains-lease-per-ifrs-16-adil-khan/
AK
THANK YOU!
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professional advise. IG cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein AK
without obtaining specific professional advice. Moreover, no representation or warranty (express or implied) is given as to the accuracy or completeness of the
information contained in this publication.