Questions

17
Ethics
Global reporting initiative
Intangible assets IAS 38
Integrated reporting
Social and environmental reporting

18
Ethics
Fair value IFRS 13
Leasing IFRS 16

19
Corporate responsibility
Ethics
Segment reporting IFRS 8
Social and environmental reporting

20
CSOCF
Disclosure initiative
Ethics
Integrated reporting

21
CSOCF
Ethics

22
Ethics
Related party transactions IAS 24

23
Current issues

24
Conceptual Framework
Current issues
Disclosure initiative
Events after the reporting period IAS 10
Financial instruments IFRS 9

25
Conceptual Framework
Current issues
Disclosure initiative

26
Conceptual Framework
Revenue recognition IFRS 15

27
PPE IAS 16
 Revenue recognition IFRS 15

28
Intangible assets IAS 38
Interim reporting IAS 34
NCA held for sale and discontinued operations IFRS 5
PPE IAS 16
Revenue recognition IFRS 15

29
Ethics
Leasing IFRS 16
NCA held for sale and discontinued operations IFRS 5
Revenue recognition IFRS 15

30
Conceptual Framework
Presentation of Financial Statements IAS 1
Accounting policies IAS 8
Related party transactions IAS 24
Revenue recognition IFRS 15

31
Accounting policies IAS 8
Government grants IAS 20
PPE IAS 16
Provisions and contingencies IAS 37
Revenue recognition IFRS 15
Segment reporting IFRS 8

32
Impairment IAS 36
NCA held for sale and discontinued operations IFRS 5

33
Borrowing costs IAS 23
Impairment IAS 36
Intangible assets IAS 38
Related party transactions IAS 24 Difficult

34
Financial instruments IFRS 9
Impairment IAS 36
Intangible assets IAS 38

35
Impairment IAS 36

36
Deferred tax IAS 12
Financial instruments IFRS 9
Investment property IAS 40
NCA held for sale and discontinued operations IFRS 5
PPE IAS 16
 37
Events after the reporting period IAS 10
Financial instruments IFRS 9
Joint arrangements IFRS 11
PPE IAS 16
Provisions and contingencies IAS 37

38
Impairment IAS 36
Intangible assets IAS 38
Investment property IAS 40
Leasing IFRS 16
Provisions and contingencies IAS 37

39
Provisions and contingencies IAS 37
First time adoption IFRS 1
Fair value IFRS 13
Business combinations IFRS 3

40
Financial instruments IFRS 9
Related party transactions IAS 24

41
Financial instruments IFRS 9

42
Financial instruments IFRS 9

43
Financial instruments IFRS 9

44
Financial instruments IFRS 9
Leasing IFRS 16
Revenue recognition IFRS 15 Difficult

45
Employee benefits (pensions) IAS 19
Provisions and contingencies IAS 37

46
Deferred tax IAS 12 Partly
Leasing IFRS 16
Share-based payment IFRS 2

47
Deferred tax IAS 12

48
CSOFP
CSPLOCI
 Deferred tax IAS 12
Employee benefits (pensions) IAS 19
Financial instruments IFRS 9
NCA held for sale and discontinued operations IFRS 5

49
Disposals of investments
Ethics
Events after the reporting period IAS 10
NCA held for sale and discontinued operations IFRS 5
Share-based payment IFRS 2

50
Provisions and contingencies IAS 37

51
Employee benefits (pensions) IAS 19
Provisions and contingencies IAS 37
Revenue recognition IFRS 15
Share-based payment IFRS 2

52
Employee benefits (pensions) IAS 19
Leasing IFRS 16
Provisions and contingencies IAS 37
Share-based payment IFRS 2

53
Share-based payment IFRS 2

54
Fair value IFRS 13

55
Fair value IFRS 13

56
Agriculture IAS 41
Fair value IFRS 13
Share-based payment IFRS 2

57
Fair value IFRS 13
Impairment IAS 36
Intangible assets IAS 38
Investment property IAS 40
PPE IAS 16

58
Deferred tax IAS 12
Financial instruments IFRS 9
Impairment IAS 36
Investment property IAS 40
 59
SMEs

60
SMEs

61
Accounting policies IAS 8
Borrowing cost IAS 23

62
Accounting policies IAS 8
Intangible assets IAS 38
Income taxes IAS 12

63
Agriculture IAS 41
Deferred tax IAS 12
Foreign currency IAS 21
NCA held for sale and discontinued operations IFRS 5

64
Accounting policies IAS 8
CSOFP
CSPLOCI
CSOCF
Deferred tax IAS 12
Foreign currency IAS 21
Government grants IAS 20

65
CSOFP
Disposals of investments
Share-based payment IFRS 2
Step acquisitions

66
CSOFP
Disposals of investments

67
CSOFP
Ethics
Financial instruments IFRS 9
Segment reporting IFRS 8
Step acquisitions

68
CSOCF
Government grants IAS 20

69
CSOCF
Disposals of investments
 Ethics

70
CSOFP
PPE IAS 16

71
CSOFP
Foreign currency IAS 21

72
Deferred tax IAS 12

73
Changes in group structure and group reorganisations
CSOFP
Foreign currency IAS 21

74
Changes in group structure and group reorganisations
Foreign currency IAS 21 Group restruction
Provisions and contingencies IAS 37

75
Interpretation of financial statements

76
Interpretation of financial statements

77
Conceptual Framework
Corporate responsibility
Current issues
Financial instruments IFRS 9
Integrated reporting
Interpretation of financial statements
PPE

78
Interpretation of financial statements

79
CSOCF
Current issues
Integrated reporting
 Title
IAS 1 Presentation of Financial Statements
IAS 2 Inventories
IAS 7 Statement of Cash Flows
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
IAS 10 Events after the Reporting Period
IAS 12 Income Taxes
IAS 16 Property, Plant and Equipment
IAS 19 Employee Benefits
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
IAS 21 The Effects of Changes in Foreign Exchange Rates
IAS 23 Borrowing Costs
IAS 24 Related Party Disclosures
IAS 27 Separate Financial Statements
IAS 28 Investments in Associates and Joint Ventures
IAS 32 Financial Instruments: Presentation
IAS 33 Earnings per Share
IAS 34 Interim Financial Reporting
IAS 36 Impairment of Assets
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
IAS 38 Intangible Assets
IAS 40 Investment Property
IAS 41 Agriculture
IFRS 1 First-time Adoption of International Financial Reporting Standards
IFRS 2 Share-based Payment
IFRS 3 Business Combinations
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
IFRS 7 Financial Instruments: Disclosures
IFRS 8 Operating Segments
IFRS 9 Financial Instruments
IFRS 10 Consolidated Financial Statements
IFRS 11 Joint Arrangements
IFRS 12 Disclosure of Interests in Other Entities
IFRS 13 Fair Value Measurement
IFRS 15 Revenue from Contracts with Customers
IFRS 16 Leases
IFRS for SMEs IFRS for Small and Medium-sized Entities
Conceptual Framework for Financial Reporting
IFRS Practice
Statement
Management Commentary
ED/2015/3 Conceptual Framework for Financial Reporting
ED/2015/8 Draft IFRS Practice Statement – Application of Materiality to Financial Statements
26 (a) (i)

(ii)

(b) (i)

(b) (ii)

27 (a)
(b)

(c)

(d)
1st step - Identify the contract
Contract creates enforcable rights and obligations between those parties
It does not need to be in writing
Entity creates valid expectation that entity will transfer goods or services to customer even though those promises are not legal
(1) Contract approved and comitted to perform obligations
(2) Entity can identify each party's rights
(3) Entity can identify each party's payment terms
(4) Contract has commercial substance
(5) Probable consideration (customer's credit risk)

Reassesment - entity can continually reassess the contract to determine whether it meets those criterias
Combination of contracts - Two or more contracts which are entered into around the same time with the same customer may b
Contract modifications - A modification may be accounted for as a separate contract or a modification of the original contract de

2nd step - Identify the separate performance obligations

Distinctiveness of the good or service or a bundle (whether it is seperately identificable or not)
A series of distinct goods or services which are substantially the same with the same pattern of transfer to be regarded as a sin

3rd step - Idenfify the transaction price

Amount of consideration an entity expects to be entitled to in exchange for the promised goods or services
It may include variable or contigent consideration (only when significant revenue reversal is not expected)
An entity should take into account non-cash consideration, consideration payable to the customer and the time value of money

4th step - Allocate transaction price over performance obligations

Allocation of the transaction price to the separate performance obligations. When a contract contains more than one performan
obligations on the basis of the relative standalone selling price
Standalone selling price = observable price or estimate (expected costs plus margins)

5th step - Recognise revenue when performance obligations are satisfied

An entity satisfies the performance obligation by transferring contro of a promised goods or service to the customer which could

The contract contains a significant financing component because of the length of time between when customer pays for the ass
A contract with a customer which has a significant financing component should be split into a revenue component and loan com
An entity should use the discount rate which would be reflected in a separate financing transaction between the entity and the c
Incremental borrowing cost should be used in order to calculate finance cost
Contract liability should be created when payment is received on 1 December 20X4.
DR Cash 240,000
CR Contract liability 240,000
Interest = 240,00 x 5% = 12,000
DR Interest expense 252,000
CR Contract liability 252,000

Done

One year contract

IFRS 15 Revenue from contracts with customers are relevant here. 3m compensation here relates to the "compensation payab
in exchange for a distinct good or service that transfers to Blochberger. Here it does not relate to transfer of any rights and own
Consequently, IFRS 15 requires 3m payment to be treated as a reduction in the transaction price rather than a purchase from a
Revenue from the sale of goods should be treated as a satisfaction of performance obligation at a time so revenue should be re
be at a time of the delivery December 20X7.
3m compensation should be recognised as a contract asset in the current asset as it is one year contract with the following entr
DR Contract asset 3m
CR Cash 3m
Compensation amount to 10% (3m / 30m) so reduction in the transaction price must be by 10%.
DR Trade receivable 4m
CR Revenue 3,6m
CR Contract asset 0,4m

Contract to sell Product A

As the sales price could be either $200 and $180 per unit depending of the volume of units sold, there is an element of variable
IFRS 15 whereby customer will received $20 trade discount if it exceeds the 1000 unit threshold. This type of variable consider
1000 unit threshold will not met and $180 if it is highly probable that the 1000 unit threshold will be met.
Variable consideration in the transaction price will only be included if it is highly probable that significant reversal of the cumulat
consideration will be resolved.
30 September 20X7 quarter ended recognise amounts with $200 undiscounted price
31 December 20X8 $180 discounted price retrospectively

Contract to sell Product B

Blochberger should not recognise revenue on the transfer of the product to the customer on December 20X7. This is because e
Blochberger cannot conclude that significant reversal of cumulative revenue will not occur. Consequently, revenue may only be
Therefore, on the transfer of goods on December 31 20X7, Blochberger should record asset with a right of return with the amou
inventory)
DR Asset with a right of return $8,000
CR Inventory $8,000
A receivable and revenue of $10,000 will only be recognised after three months when right of return lapses on 31 March 20X8.

DR Receivevable $10,000
CR Revenue $10,000

DR Cost of goods sold

CR Asset with a right of return
The contract also includes a significant financing component since there is a difference between the amount of promised consid
ritght of return is present because there is no contract asset or contract liability in this period.

New machine
IAS 16 - PPE
400,000 - 75,000 = 325,000 capitalise because directly attributable (testing cost)
300,000 traning costs must be expensed in P/L
$1m advertising costs must be expensed according to IAS 16 which prohibits capitalisation of costs of introducing a new produc
Depreciation should begin when the asset is availiable for use i.e on 31 October 20X7