Business combination → acquisition

Control ? Yes
•

CT again
control
( IFRS 101 o Goodwill FVPHI

↳ power Assoc . NCI

Noy 1117528 ) → FVNA
↳ ability to exercise
Inv
Gw
( IFRS 91
power yimpairment
↳ exposure ( right
share
to
voting right FVCPV )
(y
(✓ cash -_

def C@ later
period )
- -

FVPHI -
1st time aeq :
( cash Pv
-LI
:

achieve
ISI S :
Liability
simple ( interest )

inv .
Share - I : FV ( Mp :D o C )
- -

subsequent aeq : investor

achieve control S :
equity
( constant )
in substance ,
A- digpinvl contingent
( later period

@
contrition
associate to quire subsi
✓ incl probability that co
allots
.

calculate
can get only
Assoc : cost
share of post aeq share based payment
CA leg : D. 19 Q1 )
'

gain11oss-PnLFV@DiOTFVTOCI
's
-bfvTpL2gfwrewg.gainl 0ssinvi.a
per IFRS 9
 → impact on calculation
NCI -
method / policy of impairment ( D la '
Q1 )

fair value proportionate share

MP @ Doc ( invest ee ) FV N A @ Doc

Y of SH l of SH of
-

x .
x . NC I

× E nu .
of share impairment :

only to P
impairment :

split between P S NCI

FUN A @ D. O ASL FU @ D. O C if CA =/ Fv FV
C =
adj
- - =
.
,

↳ link to IAS 12 , DT
brand ( internally )
generated
°

↳ gain in FV

↳ IAS 38 -
invest ee x re cog .
on

↳
ind .
FIS .

> loss in FV

IFRS 3 -
investor v new
g
- on
offs -
Gl w

-
IA ai
q through
.
8C
-
FV NA T , GW Iv

•
contingent liability
↳ IAS 37 investee disclose-
notes to FIS on

↳ IFRS 3 irrespective of probability if Fu

-
,
can be
measured reliably I present 064g exist .

investor v re w g .
on C Els -
GW
-
FV NA t , GW T
*
measurement → provisional figures can be used (@ Doc )

period
f
update to FV

/ n
< 12 Mth s s 12 m th s

adjust GW t item only adjust the item

IAS 28 ( Associate ) → significant influence

equity method lost RE

o

✓
share post Ala - O CE
-
71L
-
) Pnp

CA

IFRS 9 ( simple investment )

↳ if ②
irrevocably elected to measure @ FVTOCI ,
FA

LI : FV t TG
t
(s bid
:
disposed
t) interest -
OCI item x reclassify to Pnl
→ payment -

charge to RE

xx

gain / loss -
OCI

old

↳ it x elect FVTPL ,

LI : FV , TC → Pnb
L S : FVTPL
 Step acquisition (control → control )
o in substance -
no
aeq
transaction between SH
d

adjust

P 's equity NCI

 Disposal

① Fun ( control → o )
°
calc gain 1 loss on di sp CR
-

) FV NA @ D o
- -
D

-
) GW
t) N CI

gain / loss

② Step
i -
control → SI / Associate
CR
o
control lost ,
calc goin l loss on d- SP
Fu inv .
retained
-
) FV N A @ DOD
-

J GI w
t ) NCI

gain / loss
ii. control to control
p 's equity
° in substance .
no dis p -

adjust y no I

Deemed disposal ( illustration 2 , pg 329 )

Q Sm

G twill - ① when ? -
IFRS 3. D - O C .

② How ? -

explain formula
③ calculate -
use formula

④ Explain further notes -

eg : ( note 1) ( note 2) ,
Business acquisition vs Asset acquisition
 Joint Arrangement ( IFRS 11 )
↳ Joint control = unanimous decision C > I parties )

I
Venture legal form operation
•
separate vehicle { contractual . V to A

•
incorporation v agreement . v to L

incorporation
equity accounted
. x
•

( IAS 28 )
.
x separate vehicle
.
line by line aectg
°
net asset
.
x Consol FIS
•
consolidate FIS
 ( IAS )
Deferred tan 12

reason :
different timing of recognition

AP - accrual basis TO -
cash basis
l l
l

temporary diff .

tamable liability
,
-
liability asset -
deductable

(pay in future ) ( claimable in future )

TTD DTL DTD x tan rate = DTA

x tan rate =

TTD (
Recognise DT
f
v
except : .

DTD only recognised if it is

① initial news .
of GW probable that future
tamable IT available
② " of AIL → if AIL xaeg
against
( ED 201915 ) thru BC and
( eg 14lb ) )
,

transaction
: PRK

x effect on v

IT (both) ① trading loss ( consecutively )

tax accts ↳ x probable

Asset :
Liability :

AB TO TTD → DTL AG DTD → D TA

> = > TO =

AB s TO =
PT D → DTA AB s TO = TTD → DTL

Effect of DT on Group FIS

FVNA Iv )
!
FV ) GW T
gain (
CAL -
DTL
Bc ,

① FV adj on

( CA > FV ) DTA Ctw t FUN AT )

loss
-
,

② Inv .
in Smbsi Assoc . . -
TTD → DTL unless .

branch ,
JA ① able to control timing of reversal
in the
② probable that TD will not reverse

foreseeable future .
③ unrealised Tt

L AB = eliminate - item held at its original cost

TO = measured at its new cost

t

DTD → DTA ( DTD x tan rate buyer )

④
FVTOCI
Gain / loss on financial asset -

FUT PL

loss deduct able

TB :
gain not tan able
until FA is sold

=
$01 nil
AB
AB
>

s
TO
TB
=

=
TTD → PTL

DTD → DTA
} followof measurement
FA -
Pff -1
item x carry flward
⑤ SBP ppm
step 1 : AO -
CA of SOP expenses $0

i. 2 : TB -

usually based on intrinsic value Ca)

↳ but depends on estimated ant tan

authorities will permit

DTD nu

DTA an

* compare tax deduction vs cumulative exp -

leg illustration
: 5 )
( DTD ) ( CA of SOP )

= DTD relates
>
to equity
- : re cog .
directly
to equity
⑥ ( IFRS 16 )

I thou J
Leases
-
AB -
net amount ( PT purposes )
G -
ve am -1 ( ti ab )

TB : tan relief granted as lease rental are paid

= $01 nil

TB > AB = DTD → DTA ( subs measurement ) .

↳ if lease rental payment c de p expenses

- 1- FC

( eg :
activity 2)

ED 2019/5

> DT relate to A SL arising from single transaction

Q SM :

i.
proposal - initial recognition exemption does not apply to
ASL that arise from single transaction

2. current - initial new g. exemption

THAY < Bcaffect acct Hana ble
practice ×
g
Tl

3. Issue -

divergence in practice ( no consistency )

II ) Dr ROH
}
4 ED IFRS 16 effect
. t eg .
x on acetyl tamable IT
W LL

t AS 37 CI ) Dr Asset ( PPE )
or provision } "
 Lease ( IFRS 16 )

lessee : separable .

-
( contractual right
Is it a lease ? control right to direct identifiable asset
-

↳ YES I
-

obtain substantial
S
economic benefit

Dr Rou cost PULL

=
depreciation
1- deposit
initial direct cost
I, option to x option
provision purchase w l - . L
" 4 LT
L yes -
- ul
U LL PULL not paid a -1
NO = W 1. L ,
-

Comm date LT 14L

.

-
fixed bid
variable - O re cog in
int
.
-

-
> pay
LL ROU TCL
old
Not
(eg activity 1)
:

Intense } split leg Blackout )

:

multiple component PRK

age
of lease

separate component leg : Morton )

'
Dec 20 Mock

lease
ST lease
✓
optional rlwg exemption slow .

value asset 45000 )

Lessor :

① Finance lease (transfer risks reward )

i. derewgnised the asset
ii. recognised net investment in the lease PV of LR
t PV of URV
nu
Manufacturer / dealer lessor

↳ treat in similar way to item sold outright

↳ revenue L
Tippit, hip
. w i - -

""

↳ cos -
cost
-

) PV of un guaranteed RV tea )

Gross Ti nu

② operating lease

i . continue new
g . asset
ii. news rental income on
straight line basis
.

( e5 : mock Exam 1 . Illustratorti m )

Serle S leaseback sp FV
-
-
-
no issue

i. Sale -
cons . received € SP
SP
>

s
FV

FV
-
additional

prepayment
financing
, add to Roy
↳ follow
-

IFRS 15 m le

Dr cons Received CSP )

PV of LL
.

CA
relates to Rou )
x
Br ROU ( proportion of previous CA FV

Cr Asset ( CA )
Cr LL
Pnl ( Ron transferred ) (FV CA ) x FV -
PV of LL
Drl Cr
-

FV

ii. not a sale -

continue new g. asset

↳ am I received
- = financial liability
 Share based payment ( IFRS 2)
↳ new 9 '
when obtain goods / services (I = $0 )

Types :

① Equity -
settled -
Fv @ GD

↳ share contract gone right for counterparty to buy co's

option
-

8ham @ defined price (usually a market price ,

Dr Enp 1 Asset
or Equity ↳ valuable
→
depends on
vesting condition

② cash -

settled -
Fv @ ble , revise o to Pnl

↳ SAR -
contract that give right to 4 party to receive cases = value

of share

Dr Eup 1 Asset depends on vc

TAL
g
or Liability counterparty -

compound FI
FV of share
@ GD
FV of
③ Choice of settlement cash alternative @ GD

entity -
present obligation
to settle in cash

↳ YES -
CS

vesting condition :
↳ No -
Es

illustration ]
① Service -

specified period of time leg :

↳ spread over the VP

② Performance other than market condition leg : achieve )

↳ best available estimate , target
[es activity 4 ]
: revise at YE

condition ( eg achieve target

market : share price)
↳ not taken into consideration

Qsn
① Type I

② measurement m
Modification
hr r nr r nr nr

Repricing :

Rules :

① At D. o M
.

, recognise min -

services already received ,

Fu @ GD

② Increase in total fair value -

spread over
remaining
VP

FV of modified @ D -
o m
- n u

)
-
FV of original @ D. v. m Cnn )

UN

change from CS to Es :

Rules :

① Liability ( CS ) derewgni Sed

② Recognise equity CEsy-fv@p.o.m
} diff → Pnl

cancellation
murmur

↳ acceleration of nesting

settlement
wmnnnrw

↳ treat as :

① deduction equity CES ) repurchase excess to Pnc

-
-

② i , liability ( CS ) L -
remeasure to its FV

payment reduce the liability

Replacement
hrrrrrrrrrnr

↳ same as modification
 Employee benefit HAS 19 )

① Short term -

employer → employee
(
within 12 mths after yle
i. paid absence
L off less than 1 yr
accumulating -

( non
accumulating leg maternity leave ) :

✓
accrual method

② Post employment benefit

i . Defined contribution plan
L Risk :
employee
( Accrual method
Dr Pnl
or Liability

ii. Defined benefit plan

L Risk :
Employer ( Reporting entity )
L pension Po determined by actuarist → PV
plan
-

( PA -
cover up the po
→ FV

PA po

settlement -
eliminate all bid bid -7
Unwind
further legal int -1 in -1 , 7414 PO
.

06h g
-

cont PSC
.
.

-
) pay Csc
→ pay

remeasure ment gain floss → OCI

Gd = advised by act naris -1

,

( 1/11×1 -
31/121×1 ) link with IAS 37

eg : IAS 37 TDFP
VE
reason :

provision : ① curtailment
1171×1 re
cog PNV ① DFP leg : restructuring )
-
.

a
② VE
restructuring : 1/21×2
② Amendment
new g -
W I E
. - = 1/71×1
psc
Asset ceiling test ( PA > Po )

Rules : W . I .
L -
Net PA ( PA -
Po )

RA , W I
.
H PV of refund
Pv of reduction
- excess to OCI .

Amendment to IAS 19

↳ plan amendment , plan curtailment or settlement

t
use updated actuarial assumption

to determine Csc
[ net interest

Digi wire Dec 19 )

'
( eg :
 Revenue ( IFRS 15 )

when to recognise :
criteria
b- step model contract
( approval

.sn#m..JitI :IeeIi'
PO L right
( payment term
"
{ %: the

L
types
future
Revenue
distinct series of distinct Sig -
financing component f
.
Finance cost
.ash
915 that consideration

(
j are subs .

leg verge PRK )

:
( e5 : Digi wine De c' la )
Cust can the same
Lpo over time
(
benefit consideration payable
from each L same method to oust
of the gls to measure
variable consideration
either on completion
its
include in Tpif :
own ltgt satisfaction
in asset highly probable sig reversal of
. arm .

revenue x occur
Allocate TP to -

Po
t transfer to oust
control is
.

multiple deliverables p
( stand value price )
PO satisfied types

specific guidance :
over time point of time

① sales in right of return -

X he cog in the return period
② warranties IAS 37 -

cuss x
option to purchase separately
IFRS 15 -
Cust v it

→ arranges g. Is
③ principal vs
agent revenue -

commission
t
-

control over the gls

revenue -
-
gross am -1

④ non refundable upfront fees

revenue

⑤ Loyalty point -

separate POT liability

( point of time
 contract cost

① to obtain the contract

-
incremental cost = asset ,
if expect can recover

eg : commission

② to fulfill contract
-
asset = relate directly ,
enhance , expected to be recovered

•
contract asset =
deferred payment
• contract liability = advanced payment

* sales in right of return

Dr Asset (in ROR )

① Cr Inventory
Dr Receivable
②

}
or Revenue no return
Dr cos
or Asset in ROR
③ Ar
Cr Finance income
 Financial instrument CARS 9)

executory contract
identify characteristic :

(outside IFRS 9 scope) } SAME for both : ONLY EC :

financial contract . sell / purchase A

'
own
usage
•
settle net in cash
u

Types! gls
new g. when
contract settle using entity 's own equity inst delivered

① FA ← contractual right to
- receive cash

① inv debt inst types based biz model approach

types : . in
I
on -

eg : co acql invest in bond ① held to collect CF

R : becomes 1 Dr FA
I = FV TTC S = Ac bid fin -

or Pnl
party I
int
,
income cash
by
② inv . in
equity inst l -
) payment or FA
'
DR : expired eg : w
aeq shares
old
I
@
transferred
I '
- FV t TC ( irrevocably elect) i ② held to collect Cf t sell

subs
S = FVTOCI - not reclassify 1

S = FVTOCI bld
.
I
to Pnl int
risks
③ other FA ,

f reward , -
) payment
I FV TC to Pnl
g) L to pm
-
, I
-
××

unless irrev '

s =
fvyp L
l
gain Hoss z
elect to OCI l
001
old FV
I
reclassify
Asset ceiling ( only for inv - in debt inst ) '
- - - - - - - - - - - - -
to Pnl -

test TR . contract asset LR .

I
1 =
12 Mth ECL int m gross amount fin
-

x Sig . .
comp .

gig credit risk -

lifetime ECL ( IFRS is )
Lint
.

s depends on
f on gross ant
-

t
- .

objective evidence
lifetime ECL news .
ECL -
-
lifetime
Lint on net CA others
@ initial

Presentation : 3 stage
choose
y lifetime
ECL
Reclassification -
entity change biz model -

L
f- A prospectively adjust
( only for inv .
in debt in St

IL Reversal -
previously recognised life time ECL
L
,

l currently ,
condition no longer met
effect :
rever t to 12M ECL

impairment to PNL
gain on

deliver cases
contractual obligation to f
② FL ( contract settle using entity 's
exchange FA IFL

own
equity in St -

types :
① most ② FL at FVTPL ③ FL arising when FA
I = FV -
TC I = Fv , TC to Pnl X
quality dere w g .

S = AC S = FVTPL I = cons . received

bid b Id S = same basis as FA

int int
-
) pay -
I pay
old un
O due to
Pne -

liability credit
Cid risk to OCI

④ financial guarantee
contract @
R : becomes party
commitment to prov .

loan at lower rate

DR : expired

I = FV -
TC
lL allowable
S w , H
y
= . .

initial
I am t a mortised
-

Un

legally enforceable right to set off

offset FA S F L
-
cannot UNLESS I intend to
settle on net basis
y
realise A S settle L

simultaneously
③ Equity -
residual interest in asset
leg : Amster ( b) )
④ Compound FI -
both characteristic leg : Aaron )
eg Sh ab
'
-

I FL ① S :
FL bid
split y
-
-
-

② int
E E -
constant
-
y pay
-

xx
cancel
Treasury shares -

reacquire t undecided ✓
I reissue
( share buy back )

( deduction from equity

(
Dr Treasury shares
or cash
gain , loss to RE -
transaction between SH

or may not be FI
→ may

④ Derivates -
characteristics :

•
settle at future date
•
initial value e
$0 smaller amount
,

•
value changes
-
types :

rules
① normal derivative separately accounted host contracts derivatives
② embedded
( item ( host )
unless meet criteria :

( eg : ill us 8 ) .
o economic characteristics risk closely related
to host contract
•
hybrid in St '
-
FV TPL ( same measurement )
- o in Fv to PNL .
host contract FA ( i .
)
•
derivative Sig modify .
CF C ''
)

⑤ Hedge -
purpose : reduce business risk

(
types :

① FV -
concern : O in value of new g .
All → affect Pn L
-

gain Hoss to -
Pnl
( OCI if in St - FVTOCI

② CF -
concern : o in future CF from new g AIL -

gain Hoss effective OCI CF hedge reserve lace )

-

[ineffective
- -

-
Pn L

expire I matured
-

reclassify to Pnl
DP 2018/1 Fin Inst .
in characteristic of equity
F L unavoidable contractual transfer cash at specified time
f
-

( am -1 Axed
obligation

-
date fixed
amt in de pent of entity's available
resources

' l -
date x fixed
am t x fixed -
date fixed

Equity - am -1 S time not fixed

Issues :

proposal x fully address conceptual basis for classification

of claim
against entity
-

proposal highly comp ten -

driven by individual assessment

of what debt Sey inconsistent definition of h ab

Sey
-

is -

-
hybrid FI in equity now need to
classify as debt -
sig .

market impact
 Ethics ,
Related parties ( IAS 24 )

principles :

① Integrity - honest

② Objectivity - X bias 1 undue influence 1 conflict of interest

③ Prof competence .
S due care -

prof knowledge
.

disclose info to 3rd party

④ Confidentiality x
-

⑤ Prof behaviour.
-
law S regulation

Ethics :

① self interest -

influence judgement /behaviour

② Self review - x review appropriately previous judgement

③ Advocacy represent I promote client affect objectivity

-

④ Familiarity -
lenient lsympherty -
close
dong relationship
⑤ Intimidation -

pressure
-

affect objectivity

Related parties person I close member of family -1 RE

o control / joint control

entity t RE .
Sig influence
.

•
same group .
hey mgt personnel
°
associate .
JV
• TV for 3rd party
•
TV for 3rd party t assoc . 3rd party
•
post employment benefit plan
•
controlled I jointly controlled by 3rd party
key mgt personnel
-
service

i. disclose in notes to Els

-
P S controlling parties ( regardless transaction )
KMP compensation (if any )
-

nature
-
had related party nil ship font transaction
standing
 Ace policy standard
.
, , error ( IAS 8)

Acc .
policy -

entity choose by relevant

tF@
L permitted to change if :
↳ absence :

(
-
required by IFRS -
IFRS in similar issue

Fts more relevant info CF

provide
-
-

most recent pronouncement

opening bat
-

adjust retrospectively f
.

restate comparatives

Acc estimates
-
-

judgement based on latest reliable info

L revision

( adjust prospectively
changes occur in circumstances new info
-
-

-
current year only

Error -
omission I misstatement
L ( fraud )
g- intentionally
due to

( adjust unintentionally ( mathematical mistake )

retrospectively -
restate comparative amt

§ restate opening balance

inc adj . in equity

ED 2018 1 1

•
amendment to IAS 8

in
•
propose voluntary changes a cc .
policies
•
may not apply retrospective adj
a
subject to cost -

benefit analysis
↳ cost > benefit =
prospectively

issues
°
conduct cost -

benefit analysis as expense as

apply retrospectively
 Non current asset

① PPE ( IAS 16 ) -
tangible asset
( use in production / rental / admin purposes
/ L use > 1 period
probable cost
cost
future
measured I : cost t direct cost t
borrowing
cost model depreciation
reliably
=
economic s :

revaluation = revalued at FV
benefit L
gain Hoss - OCI not
reclassified to
°
large S complete assets leg : aircraft ) -

capitalised pm

e small item leg : tool ) -

expense d off

② Impairment asset HAS 36 )

evidence of impairment
{
indicator estimated future CF
off !'t?jPyV
-

higher
RAG
>
impairment test -
CA vs

L CA > RA = IL - Dr Pnl
or Asset

CGM -
smallest identifiable group of assets that generates cash
1 inflows ,
largely independent of inflows from other assets .

⇐
allocation 1L :

① impaired asset
'
i'In
irroration !
non -

, era.mn .

na , oaeaammem "'
reversal IL ( RA > CA ) :

-
asset of CGI U exc CTW
-

gain to pm ↳ x reverse IL once recognised

(rev model
- → OCI )
 SBP CARS 2)
③ Fair value ( IFRS 13 ) applies to all except f
-
-

L
t similar w Nrvciasz ,
lease ( IFRS 16 )
expected price to y
VIU ( IAS 36 )

(
receive or transfer
between market participant
level I quoted price ""

} i%Yf
"
✓
based (hierarchy level ) level 2 unquoted price
-

market
l
maximise observable input d level 3 unobservable input

Pm ( highest volume )
non financial > I market , determine f- ✓
{ MAM
asset leg : building ) ( FV -
- SP -
Tp cost )
( sp - Tp cost -
To cost )
>I
purpose =
highest Ti
highest S best use :

① physically possible
② financially feasible
③ legally permissible beyond -
co 's control

FV liability

④ Intangible asset HAS 38 )

( identifiable non -

monetary asset w/o physical substance

L
L
separable
contractual legal right

Internally ④ G
SD > meet criteria
i probable
:

Generated
-

}
↳ expense off 2. Intention

a'time
"" "

others ÷?:÷÷÷÷÷÷a . . ..
-
X re cog . as IA
.

eg : brands Cust list

.
-

( measurement cost
f revaluation need to have active market
(
-

finite
f
grew
amor tization v
annually
'

EW UL
indefinite ×
⑤ ( IAS 40 ) Gi IL di sp Pn L
=
Investment property - on

L earn rental
( capital appreciation I both
( measurement Fu model - O in FV to Pnl , X dep
g- cost model -
as per IAS 16 exc for IFRS 5 S 16

PPE P meet definition

l change in use
f- evidence
-

valid
{ mg -1 intention x
-

D O L
- - = FV
✓

D O C
- -
-
- FV
O in FV ( PPE → IP ) = OCI

⑥ Government grant ( IAS 20 )

L not re w g until reasonable - assurance exist

Y re w g - in Pnl
/
def income-

+ Types asset - less asset cost

( income other income

g-
less related expense
repayable IAS 8 increase asset CA
}
-

extra to
acc . estimate - asset
f less def inc.ba ,
. Pnc

income -
less una mortised de f -
credit
extra to Pn L

⑦ Borrowing cost ( IAS 23 ) take subs time to .

get ready for use 1 sale
,
( directly attributable to qualifying asset -
capitalised
L
type -

specific -

capitalise all

( commencement
general
-
WA -

armed
am -1

period
capitalised x exceed BC use for that

[ gyp if
( suspension L necessary
,

activities in progress

(
L
interrupted der .

period
cease - all out .
complete
( disclose -1 Bc capitalised
fam am -1 Bc eligible to capitalise
capitalisation rate -
⑧ Agriculture ( IAS 41 )

L till bearer plant leg : Grapevine ) IAS 41 x

plant is harvest ,
-

1 AS I 6 V
L to Pn L
FV -
CTS ( ISS ) - O

L@ harvest point = FV -
CTS -
cost for IAS 2 ( bid )
 provision ( IAS 37 ) ,
EARP ( IAS 10 )

① PO bcs of past event

① Provision ( IAS 37 )

( best estimate ② probable art flow possible ( disclose)

remote ( nothing )

(
③ reliable estimate
'
Eff Pom " "m
-

sina.ie ours
moonsfooling:"
-
-

discount to pv

(
L unwind = Pnl

reimbursement -

virtually certain

( asset -
capitalise directly attributable cost

( disclosure
( eg : dew mission ing cost )

L IAS 37 to disclose all

require
L But if relate to serious prejudice in other entities , able to
not disclose all .

i
operating loss x provision
. -

contract cost
ii. Onerous contract -

(
unavoidable cost , w 1. L
.

f penalty contract failure

cost > benefit
valid expectation
Restructuring when have ooh
f
.

iii -
re cog cons .

g
\
- .

Detailed formal plan

direct expenditure
L x inc -

retraining marketing, ,
inv new
system
iv. warranties -
cons .

oblige .

② Cont .
liability ( IAS 37 ) -

possible oblige past event

,

( disclose to notes to Els

-

nature
-
estimate financial effect
-

indication of uncertainties
-

possibility reimbursement
③ cont -
asset ( t AS 37 ) -

pro o able in flow

disclose notes to FIS

④ EARP ( IAS 10 )

( evidence condition existed before y le FIS adj

adj event
'

- =

( non
adj event
-
con d . after ble = disclose to notes f- IS
nature
=
est .
FE
i -

Going concern -

entity cease trading , FIS adj - use break up

basis
 Conceptual Framework

Elements :

Asset :
present economic resource controlled by entity as result

of past event

present o brig of entity to transfer economic resource as

Liability : .

result of past event

In home : increase in asset I decrease in his b .

that result in
increase of eg .

Expenses : decrease in asset I increase in h ab

-

. that result in

decrease of eq .

item meet definition

R ,
; useful info to user

b R : Asset -
control lost
Li ab -
no
longer present oblige .

Qualitative characteristics Fts

L - Relevance
Fundamental l
faithful representation
( Enhancing [ verifiability
comparability
( understandability
(
timely
OCI

① not reclassified to Pnl

-
GIL on revaluation
-
GIL on nemeasurement defined benefit plan
- inv .
in equity ( if elect )

② reclassified to Pn L
-
FOREX diff .

-
of hedge
-
Debt in St .
 N CAH FS S DO ( IFRS 5)
'

Disposal group : a
group of A to be dispose in single transaction ,

I also will be transferred

Held for sale -

CA recoverred principally thru sale transaction

rather than continuing use
( criteria :
i. available for immediate sale in its present condition
ii. sale highly probable :

• Price actively marketed at current FV

•
Unlikely Sig .
change made to the plan .

Management committed to sell

beyond control of ai
•
Active programme to locate buyer p
•
Sale expected within one year subject to limited exception

CA
I : W I L
- -

f FV -
CTS
( IL to Pnl ]

cannot exceed
gain
s : x depreciation p cumulative IL
[ changes in FV -
CTS =
further IL / reversal lL

L presentation : o
separate from other ASL
•
single ant

Critique of IFRS 5 K
To be abandoned -

not classified as HFS . Wt re averred

principally thru continuing use

e g : N CA use till end of its yL

y
closed , not sold

Discontinued operation component of entity that has been

-
.

L characteristic :
disposed of / classified as held for sale

(a) separate major line of biz 1 geographical area of operation

(b) part of single co -
ordinated plan to dispose ca )
(c) Subs .

acq with intention to resale

L
presentation :

Post tan IT floss DO

°
single am t
f
"
gain l loss of ne measurement at FV Cts
-

•
notes to FIS

eup pre tan IT floss of DO S related income tan eup

L her . ,
.

L gain 1 loss
of re measurement FV CTS S " -

L net of -
operating , investing financing,
 SME
Issue full IFRS
applying
:

① Relevance
to SME leg IAS 33 SME Stock exch )
IFRS not relevant : x .

some
-

② cost to prepare
cost should not ended benefit

③ materiality
am -1
may be small but material to SME -
not reporting may
mislead users of FS -

for SME transition from full IFRS to

IF R S : >

ii.
i. no specific effective
contains transitional
date
rule
IFRS for SME =
retrospectively
adjusted
all en emption
iii. single self centered -
Std
allowed
iv. extract core principal full IFRS
v -
focus on info needed by creditors / lenders

key difference (fully omitted ) :

a) EPS IAS 33

}
-

not listed
b) Interim reporting -
ins 34

c) Segmental reporting -
IFRS 8

d) N CAH FS -
IFRS 5 -
cost > benefit

simplification for IFRS for SME

• can combine so PL S SO LIE

• revenue new g .
goods risk S reward transfer

t.ffrgif.eu stage of completion

always a mortised ( UL E 10 yrs )

• inv .
in sub si I associate Isv :

cost IL
Sepe rate Els I cost IL
-

con so I
-
-

L
Fv T PL FV T PL
L L
equity accts equity accts
N CI proportionate method
-

GW -
am mortise
Accts treatment :

SME Full
① Investment property FVTPL Fvlwst model

② Intangible asset x revalue ✓ revalue

③ Government grant grant rec .

income income -
write off
> related
perf .
und . in
met lost

asset ydef income

-

deduct for
CA

④ Borrowing cost enpensed capitalised

⑤ Der .
cost IGRSD enpensed capitalise when
met criteria
⑥ Pension gain Hoss PNLIOCI
simplified calc .

⑦ Financial inst .
debt -

Ao FA :

AC
inv share FVTPL debt FFV -1001
-

(
-

WH -
IL
others FVTPL eq x
trading FV-1002
-
-
-

( elect )
other -
FVTPL
FL :

most -
AL

FVTPL