S. J. Gray, L. G. Campbell, J. C. Shaw (Eds.) - International Financial Reporting_ a Comparative International Survey of Accounting Requirements and Practices in 30 Countries (1984, Palgrave Macmillan UK) - Libgen.lc

INTERNATIONAL FINANCIAL REPORTING
This book provides a comparative international survey of company financial

reporting requirements and practices in 30 countries from most regions of the
world. It is based on an extensive survey of legal and other documents and financial
reports carried out in each country. The book specifies the sources of authoritative
pronouncements, whether from legal, professional accountancy or stock exchange
bodies, and also indicates the financial reporting practices adopted by large
companies in each country.
The topics covered in the book include fundamental topics such as income and asset
measurement (fixed assets, inventories, taxation, etc.) and extend to emerging
issues such as social reporting and forecasts. It also deals with topics which are
included in the reporting requirements and practices of some countries but not of
others-for example, group accounts, inflation accounting, foreign currency
translation, and segmental reporting. There is also a section on the factors which
influence the development of national accounting requirements and practices.
The information provided will, therefore, be of use to anyone interested in the

international aspects of financial reporting. In particular, it will be useful to
managers and accountants in multinational enterprises who wish to know reporting
requirements in countries around the world; to auditors involved with multi-
national enterprises; to investors and analysts concerned with evaluating non-
domestic financial reports; to creditors and lenders involved with foreign
companies; to national, regional and international professional accountancy
bodies; to standard-setting agencies both professional and governmental; and to
academics and students of this rapidly developing field of study.
Sidney J. Gray. Professor of Accountancy, University of Glasgow. He has been
Head of Department since 1979. He taught previously at the University of
Lancaster and the University of Sydney. Prior to entering academic life he gained
several year's managerial experience with international companies in the UK,
India, and Australia. He was Secretary-General of the European Accounting
Association in 1982-3, and he is a member of the editorial boards of Abacus,
Journal of Business Finance and Accounting, Journal of International Business
Studiesand Issues in Accountability. He is the author/editor of EEC Accounting,
International Accounting and Transnational Business, Information Disclosure and
the Multinational Corporation and Value Added Reporting.
Leslie G. Campbell. Manager, Executive Office, Deloitte Haskins & Sells, London.
He won a gold-medal for his performance in the examinations of the Institute of
Chartered Accountants of Scotland. He gained a Master's degree in international
financial management and reporting from the University of Glasgow in 1982. He is
the author of International Auditing.
John C. Shaw. Senior Partner, Deloitte Haskins & Sells, Edinburgh. He was
formerly Johnstone Smith Professor of Accountancy, University of Glasgow. He
was President of the Institute of Chartered Accountants of Scotland, 1983-4. He is
the author of Group Accounts and Auditing.
INTERNATIONAL FINANCIAL
REPORTING
A Comparative International Survey

of Accounting Requirements and Practices
in 30 Countries
Edited by
S.J. Gray
University of Glasgow
L. G. Campbell
Deloitte Haskins & Sells
J.C.Shaw
Deloitte Haskins & Sells
M
MACMILLAN
© S. J. Gray, L. G. Campbell and J.C. Shaw 1984
Softcover reprint of the hardcover 1st edition 1984 978-0-333-37302-6
All rights reserved. No part of this publication
may be reproduced or transmitted, in any form
or by any means, without permission
First published 1984 by

MACMILLAN PUBLISHERS LTD
(Journals Division)
and distributed by
Globe Book Services Ltd
Brunel Road, Houndmills
Basingstoke, Hampshire, RG21 2XS
England
British Library Cataloguing in Publication Data

International financial reporting.
1. Financial statements 2. Comparative
accounting
I. Gray, S.J. (Sidney John), 1942-
II. Campbell, L.G. III. Shaw, J.C.
657' .3 HF5681.B2
ISBN 978-1-349-07444-0 ISBN 978-1-349-07442-6 (eBook)
DOI 10.1007/978-1-349-07442-6
Contents
Introduction 1
How to use the book 7
1 Influences on accounting development 11
2 Accounting concepts and policies 29
3 Income and asset measurement 39

Inventories 50
Fixed Assets 83
Taxation 120
Research and development 131
Leases 139
Pensions 147
Earnings per share 157
4 Funds statements 187
5 Group accounts 223
6 Inflation accounting 303
7 Foreign currency translation 331
8 Segmental reporting 357
9 Forecasts, contingencies, and post balance sheet events 407
10 Social reporting 451
11 Interim reporting 513
Appendices
I Abbreviations used in the survey 545
II International glossary of accounting terms 551
DTR.ODUCTIOB
Background
International aspects of accounting and financial reporting have

received increasing attention in recent years. This has been due
to a large extent to what can be termed an explosion in
international business activity.
International investment is now undertaken on a large scale both

by private and institutional investors, in the form of portfolio
investment, and by multinational companies largely through the
medium of foreign direct investment.
The growth of international trade and investment has led to other

individuals and groups (apart from investors) developing an
interest in international financial reporting issues. For
example, large-scale borrowers and lenders are now operating in
an international market instead of a national one; employees and
their representatives may wish to know how their employer's
overall worldwide investment strategy affects their particular
local interests: and governments may be concerned as to the
impact of inward investment on national objectives such as
employment, balance of payments, economic growth, and the
development of new technology.
Increased internationalism has led to the development of a number

of regional and international organisations, either dealing
specifically with accounting matters or as part of a wider
framework of economic and social policy.
2
Much of this interest in international accounting has focused on

the corporate annual report, which includes the enterprise's
financial statements. These financial statements are the
principal means of communicating the enterprise's position,
profitability and prospects to the various interest groups
concerned.
However, because these interest groups may come from a different

country from that in which the enterprise is based, there may be
difficulties in interpreting the data due to uncertainties
regarding the accounting measurement and disclosure policies
used.
There is, therefore, a need for a greater awareness and

understanding of the nature and extent of the international
differences which exist.
Purpose
The purpose of this survey is to help meet the need for an

improved appreciation of differences and similarities in
international financial reporting. This is done by providing
information on approximately 400 questions relating to a wide
range of financial reporting topics. The survey covers a total of
30 countries from most parts of the world; the number of
countries included being limited by available resources.
The information in the survey is given in two parts: Requirements

and Practices.
3
The Requirements part of each question is intended to show the

specific influence of governments, professional accountancy
bodies, stock exchanges, and other authoritative bodies, by
indicating the content and force of pronouncements made by these
bodies on that particular question. As these pronouncements take
many forms (laws, declarations, standards, guidelines, etc.), the
specific source of each pronouncement has been identified and
whether the source has a legal, professional accountancy body, or
stock exchange basis.
The Practices part of each question is intended to show the

extent to which that particular measurement or disclosure
practice is being used by large companies in each country. This
provides an indication as to current "best practice" in certain
topics where there are no requirements or recommendations, and
also shows the extent to which practice is consistent with
existing pronouncements. In some cases, of course, requirements
which have been recently introduced will not yet be effective in
practice.
Sources of information
This survey is the result of a joint project by the University of

Glasgow and Deloitte Haskins and Sells International. The survey
was carried out during 1982 and the collation and editing of the
findings completed in 1983.
The answers to the "Requirements" part of each question have been

supplied by the international network of offices of Deloitte
Haskins & Sells, and are based on their interpretation of the
relevant current pronouncements as at 1 January 1982.
4
The answers to the "Practices" part of each question are based on

surveys of company reports carried out by each national office.
These surveys were based on the most recent annual financial
reports of a number of large companies (usually 50 companies in
the major industrialised countries and 20 companies in less
developed countries or in small countries).
In some questions the "Practices" answers are based on the

judgement of the local partners rather than on the survey - for
example, if only two of the fifty companies in a country's survey
published a funds statement, then it was considered that this
sub-sample size was too small to provide a reliable indication of
what information is usually provided in the Funds Statement. In
these rare cases the local office gave their subjective opinion
on the extent to which the particular practice was adopted by
large companies. In some countries a number of questions were
answered on the basis of information contained in existing
surveys of financial reports.
While the information in the survey does not purport to be

exhaustive it should provide a useful guide to major items of
interest. More detailed information, including particulars of
any changes since the date of the survey, must necessarily be
obtained from the local office in the country concerned.
5
Recent Developments
Financial reporting requirements and practices in each of the

countries surveyed are, of course, subject to change in response
to local environmental pressures and, in some instances, to the
influence of developments at the level of the International
Accounting Standards Committee (IASC), EEC, OECD and so on.
While it is important to note here those recent developments
which are likely to be of major significance, a more detailed
review of specific topics will be made later in the relevant
chapters.
In the EEC, the most significant development is the adoption , in

June 1983, of the Seventh Directive on "Consolidated Accounts".
This will require the provision of world-wide consolidated
statements by companies in all EEC countries. However, the
requirements of this Directive will need to be introduced into
national law only by 1990. The Fourth Directive on "Company
Accounts" which was adopted in 1978 is still in the process of
being implemented in a number of EEC countries. By 1982, only
Denmark and the UK had introduced the requirements of the
Directive into their respective national laws. In 1983, however,
they were joined by Belgium, France and the Netherlands. France
also took the opportunity to carry out a major revision of its
Plan Comptable General (National Accounting Plan) which will be
introduced with effect for accounting periods beginning in 1984.
At the wider international level of the IASC, international

standards are likely to be influential in some countries e.g.
Malaysia, Zambia and Zimbabwe and since 1982 new standards have
been issued on leases (lAS 17), Revenue Recognition (lAS 18),
Retirement benefits (lAS 19), government grants (lAS 20), foreign
currency translation (lAS 21) and business combinations (lAS 22).
These standards become effective in the case of lAS 17 to lAS 20
for accounting periods beginning in 1984. For lAS 21 and lAS 22
the effective date is 1985 and 1986 respectively.
6
Another noteworthy development of some international significance

is the adopt ion in the UK, in 1983, of SSAP 20 on foreign
currency translation. This is in line with, though less
comprehensive than, the USA's FAS 52 adopted in 1981. However,
SSAP 20 is not expected to have much impact as practice is, in
general, already consistent with the new standard. In this
regard, it is interesting to note that IAS 21 on foreign currency
translation is broadly consistent with both the UK and USA
standards.
HOW TO USE THE BOOK
The Contents Summary provides a list of the topics included in

the book. In addition, at the beginning of each chapter there is
a more detailed list of the areas covered within the chapter.
This should enable the reader to locate a particular subject
without difficulty.
The questions in each chapter (with the exception of Chapter One)

provide information on Current Requirements and on Current
Practices.
In the Current Requireaents section, the questions have four

possible responses, defined as follows:-
Required: this treatment is specifically required in the

regulations (as laid down by law, the
accountancy profession, the stock exchange, or
some other body) and is MANDATORY (ie. there
are sanctions for non-compliance or there
exists some monitoring procedure)
Recommended: the regulations advise that this treatment
should be adopted, but there are no sanctions
for non-compliance nor any monitoring
procedure
Permitted: this treatment is specifically mentioned in
the requirements as being permitted OR no
mention is made of it in the requirements and
hence such treatment is not specifically
forbidden
Not Permitted: this treatment is specifically forbidden by
the regulations
8
The "Source" column indicates the relevant pronouncement (as at 1

January 1982) governing the accounting treatment in question. A
list of abbreviations used in the Source column is given at the
end of the book. Letters in brackets after the source reference
denote the type of source reference as follows:-
L: Legal
P: Professional accountancy body
S: Stock exchange
"N" in the last space of the Source column means that reference
should be made to the Notes at the end of the chapter, where
further information or explanations are provided.
Where N/A is shown in the current requirements or current

practice sections, this means that the question is not applicable
or that the information is not available for the purposes of the
survey.
In the Current Practices section, the results of the company

reports surveys have been classified into percentage bands for
each question as follows:
A: 91-100%
B: 76- 90%
C: 51- 75%
D: 26- 50%
E: 11- 25%
F: 1- 10%
9
A zero in the F column indicates that none of the companies

surveyed used that particular accounting treatment.
The "Current Practice" answer to a particular question for a

particular country, therefore, shows the extent to which the
companies in the survey adopted that accounting treatment.
Finally, the information contained in this book may be examined

from two perspectives: firstly, by concentrating on one
particular country and finding out the reporting requirements and
practices in that country, and secondly, by concentrating on one
particular topic and comparing and contrasting reporting
requirements and practices internationally.
CHAPTER OBE IBFLUDICES OR ACCOUBTIBG DEVELOPHEIIT
Contents Questions
Introduction 13
Managerial Influences 1.1 15
Government Influences 1.2 - 1.3 16
Accounting Profession 1.4 - 1.7 18
Stock Exchanges 1.8 22
International Influences 1.9 - 1.10 23
Other Influences 1.11 - 1.12 25
Notes 27
IIIFLUEIICES OR ACCOUNTIRG DEVELOPMD'l 13
INTRODUCTIOR
This survey is concerned with financial reporting requirements

and practices around the world. Chapters Two to Eleven describe
these requirements and practices in some detail, and can be used
to identify the nature and scope of international accounting
differences.
In addition to knowing what these differences are, it is

important to understand why they have arisen. To achieve this
understanding, it must be recognised that a country's reporting
requirements and practices develop in response to a number of
factors arising from the local legal, economic, business and
social environment.
Therefore, in order to achieve a greater understanding of why

international differences exist, it is necessary to have an
awareness of the comparative influences which affect the
development of reporting requirements and practices.
Chapter One analyses the relative strength of a number of

possible influences on accounting development in particular
countries. Answers are provided to certain specific questions
concerning the influence of the following factors:-
(a) Management
(b) Government
(c) Accounting profession
(d) Stock exchanges
(e) International influences
(f) Users of financial statements
(g) Financial press
While these answers are necessarily subjective assessments they

do presentan interesting picture of comparative international
influences on accounting development.
14
Summary of results
The survey shows that there are a large number of influences on

accounting development. Perhaps most critical is the extent of
government intervention relative to professional self-regulation.
The situation varies significantly between, for example, the
continental European countries, where government intervention
tends to be high, and the Anglo-Saxon countries where
professional self-regulation tends to dominate, albeit within a
legal framework of growing dimensions.
Interestingly, the accounting profession is often involved with

government in the process of law-making. The academic side of
the profession is also perceived to have an influence in the
majority of countries. Management's attitude to regulation
tends to vary with strong opposition perceived to exist in
Belgium, Italy and Switzerland while moderate support is found in
Brazil, Finland, Indonesia, Philippines, South Africa, UK, USA
and Zimbabwe.
Stock exchanges often provide regulation additional to legal and

professional requirments. Moreover, the influence of other
countries is often strong, particularly that of the USA and, to a
lesser extent, the UK. There are also a number of international
organisations eg. IASC, EEC, with an often significant influence
on developments in financial reporting.
The influence of participant users groups is varied with evidence

of a relatively high degree of influence by taxation authorities
and government agencies in many countries. Investors and
investment analysts are also seen to be influential but to a much
more moderate degree taken overall.
DJFLUERCES ON ACCOUNTING DEVELOPMERT 15
MANAGERIAL INFLUENCES
1.1 In general,what is the attitude of business management to information

disclosure and accounting standards?
COUNTRY STRONGLY MODERATELY INDIFF- MODERATELY STRONGLY

AGAINST AGAINST ERENT SUPPORT SUPPORT
ARGENTINA X
AUSTRALIA X
BELGIUM X
BRAZIL X
CHANNEL ISLANDS X
CHILE X
COLOMBIA X
DENMARK X
FINLAND X
FRANCE X
GERMANY X
HONG KONG X
INDONESIA X
IRELAND X
ITALY X
JAPAN X
MALAYSIA X
MEXICO X
NEW ZEALAND X
PHILIPPINES X
PORTUGAL X
SOUTH AFRICA X
SPAIN X
SWITZERLAND X
THAILAND X
-----------------
UNITED KINGDOM ---------- ------------ ---------- ----------
X
----------
UNITED STATES X
URUGUAY X
ZAMBIA X
ZIMBABWE X
16 ID'LUERCES OR ACCOUB'flRG DEVELOPMD'f
GOVERNMENT INFLUENCES
1.2 To what extent can it be said that the government keeps its
intervention to a minimum, relying instead on self-regulation within
the financial community (based on professional standards, training and
a high standard of ethical behaviour)?
GOVERNMENT INTERVENTION PROFESSIONAL SELF-REGULATION
COUNTRY
LOW MEDIUM HIGH LOW MEDIUM HIGH
ARGENTINA X X
AUSTRALIA X X
BELGIUM X X
BRAZIL X X
CHANNEL ISLANDS X X
CHILE X X
COLOMBIA X X
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X X
IRELAND X X
ITALY X X
JAPAN X X
MALAYSIA X X
MEXICO X X
NEW ZEALAND X X
PHILIPPINES X X
PORTUGAL X X
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X
--------
X
---------- ----------
ZAMBIA X
------- -------- ------- -------- ---------- ----------
X
-------~-------
ZIMBABWE
------- -------- -------
X X
---~-----------
DIFLUDICES OB ACCOUBTDIG DEVELOPIIEBT 17
GOVEil.BMENT IBFLUEBCES
1.3 Are different methods and rules applied to published financial

reports compared to those required for tax purposes?
COUNTRY YES NO
ARGENTINA X
AUSTRALIA X
BELGIUM X
BRAZIL X
CHANNEL ISLANDS X
CHILE X
COLOMBIA X
DENMARK X
FINLAND X
FRANCE X
GERMANY X
HONG KONG X
INDONESIA X
IRELAND X
ITALY X
JAPAN X
MALAYSIA X
MEXICO X
NEW ZEALAND X
PHILIPPINES X
PORTUGAL X
SOUTH AFRICA X
SPAIN X
SWITZERLAND X
THAILAND X
UNITED KINGDOM X
UNITED STATES X
URUGUAY X
ZAMBIA X
ZIMBABWE X
--------------------------------------------- --------- ---------
18 IDD'LUERCES OR ACCOURTIRG DEVKLOPMERT
ACCOURTIRG PROFESSION
1.4 Do the professional accounting bodies set standards or

guidelines relating to external financial reporting?
COUNTRY YES NO
ARGENTINA X
AUSTRALIA X
BELGIUM X
BRAZIL X
CHANNEL ISLANDS X
CHILE X
COLOMBIA X
DENMARK X
FINLAND X
FRANCE X
GERMANY X
HONG KONG X
INDONESIA X
IRELAND X
ITALY X
JAPAN X
MALAYSIA X
MEXICO X
NEW ZEALAND X
PHILIPPINES X
PORTUGAL X
SOUTH AFRICA X
SPAIN X
SWITZERLAND X
THAILAND X
UNITED KINGDOM X
UNITED STATES X
URUGUAY X
ZAMBIA X
ZIMBABWE X
DIFLUERCES OJI ACCOUJITIJIG DEVELOPMERT 19
ACCOUNTING PROFESSION
1.5 To what extent does the profession advise the government on the
subject of setting laws relating to external financial reporting?
COUNTRY STRONGLY MODERATELY SLIGHTLY NOT

INVOLVED INVOLVED INVOLVED INVOLVED
ARGENTINA X
AUSTRALIA X
BELGIUM X
BRAZIL X
CHANNEL ISLANDS X
CHILE X
COLOMBIA X
DENMARK X
FINLAND X
FRANCE X
GERMANY X
HONG KONG X
INDONESIA X
IRELAND X
ITALY X
JAPAN X
MALAYSIA X
MEXICO X
NEW ZEALAND X
PHILIPPINES X
PORTUGAL X
SOUTH AFRICA X
SPAIN X
SWITZERLAND X
THAILAND X
UNITED KINGDOM X
UNITED STATES X
URUGUAY X
ZAMBIA N/A N/A N/A N/A

ZIMBABWE X
20 Ilii'LUERCES OB ACCOUBTIBG DEVELOPHEIT
ACCOURTIBG PROFESSION
1.6 Does the academic side of the profession influence the setting
of standards relating to external financial reporting?
COUNTRY YES NO
ARGENTINA X
AUSTRALIA X
BELGIUM X
BRAZIL X
CHANNEL ISLANDS X
CHILE X
COLOMBIA X
DENMARK X
FINLAND X
FRANCE X
GERMANY X
HONG KONG X
INDONESIA X
IRELAND X
ITALY X
JAPAN X
MALAYSIA X
MEXICO X
NEW ZEALAND X
PHILIPPINES X
PORTUGAL X
SOUTH AFRICA X
SPAIN X
SWITZERLAND X
THAILAND X
UNITED KINGDOM X
UNITED STATES X
URUGUAY X
ZAMBIA X
ZIMBABWE X
IID'LUDCES OR ACCOURTDIG DEVELOPMD'r 21
ACCOUNTIRG PROFESSION
1.7 Is an audit required for the following entities?

~.;~.x_ ~~JYI~~·
i~~~~i~ Li~~~it OWNED OR
COMPANY COMPANY CONTROLLED
COUNTRY
YES NO YES NO YES NO
ARGENTINA X X X
AUSTRALIA X N X X
BELGIUM X X X
BRAZIL X X X
CHANNEL ISLANDS X .N X X
CHILE X X X
COLOMBIA X X X
DENMARK X X X N
FINLAND X X X
FRANCE X N X X
GERMANY X X X
HONG KONG X N X N X
INDONESIA X N X N X
IRELAND X X X N
ITALY X N X X
JAPAN X X X
MALAYSIA X X X
MEXICO X X X
NEW ZEALAND X X X
PHILIPPINES X N X N X
PORTUGAL X X X
SOUTH AFRICA X X X
SPAIN X X X
SWITZERLAND X X X
THAILAND X X X
UNITED KINGDOM X X X
UNITED STATES X
--------- ---------
X X
URUGUAY X X X
ZAMBIA X X X
ZIMBABWE X X X
22 IBFLUENCES ON ACCOUNTING DEVELOPMENT
STOCK EXCIIABGES
1.8 Are there any financial reporting requirements as a condition of

listing on the Stock Exchange (in addition to legal and
professional reporting requirements)?
COUNTRY YES NO
ARGENTINA X
AUSTRALIA X
BELGIUM X
BRAZIL X
CHANNEL ISLANDS N/A N/A

CHILE X
COLOMBIA X
DENMARK X
FINLAND X
FRANCE X
GERMANY X
HONG KONG X
INDONESIA N X
IRELAND X
ITALY X
JAPAN X
MALAYSIA X
MEXICO X
NEW ZEALAND X
PHILIPPINES X
PORTUGAL X
SOUTH AFRICA X
SPAIN X
SWITZERLAND X
THAILAND X
UNITED KINGDOM X
UNITED STATES X
URUGUAY X
ZAMBIA N/ A N/ A
ZIMBABWE X
ID'LUEIICES OR ACCOUBTIBG DEVELOPMEBT 23
IRTERRATIOBAL INFLUENCES
1.9 Are the country's external financial reporting practices

influenced by any other particular country?
ISLANDSISLANDSISLANDS
COUNTRY
VERY STRONG MODERATE SLIGHT
STRONG
ARGENTINA us UK
AUSTRALIA ---------- ----------
UK us ---------- ----------
BELGIUM ----------
N/A ----------
N/A ----------
N/A ----------
N/A
BRAZIL ----------
us ---------- ---------- ----------
CHANNEL ISLANDS ---------- ----------
UK ---------- ----------
CHILE ---------- ----------
us ---------- ----------
COLOMBIA ----------
us ---------- ----------
ARG,MEX, UK ----------
DENMARK ---------- ----------
UK us ---------- ----------
FINLAND SWEDEN
FRANCE us UK GERMANY
GERMANY us
HONG KONG UK
INDONESIA us
IRELAND UK us
ITALY FRANCE us
JAPAN us
MALAYSIA UK AUSTRALIA us
MEXICO us UK
NEW ZEALAND UK us AUS ,CANADA
PHILIPPINES us UK
PORTUGAL FRANCE SPAIN UK
SOUTH AFRICA UK AUS,CANADA
SPAIN FRANCE us
SWITZERLAND GER,UK,US
THAILAND UK
UNITED KINGDOM us NETHS
UNITED STATES UK CANADA
URUGUAY ARG, US
ZAMBIA UK
ZIMBABWE UK us
24 IBFLUERCES OB ACCOUBTIBG DEVELOPMERT
IBTERBATIOBAL IBFLUERCES
1.10 Do any international accounting or non-accounting organisations

influence external financial reporting?
(see notes for list of abbreviations)
ORGANISATIONS WITH ORGANISATIONS WITH
COUNTRY SIGNIFICANT MODERATE
NONE INFLUENCE INFLUENCE
ARGENTINA AIC
AUSTRALIA X
BELGIUM E~ I~CU~
BRAZIL X
CHANNEL ISLANDS IASC

CHILE X
COLOMBIA AIC
DENMARK EEC IASC UEC
FINLAND X
FRANCE IASC IFAC EEC UEC

GERMANY EEC UEC
HONG KONG IASC
INDONESIA IASC IFAC AFA CAPA
IRELAND I~C
ITALY IASC IFAC EEC UEC

JAPAN X
MALAYSIA IASC IFAC

MEXICO IASC "IFAC AIC
NEW ZEALAND IASC IFAC
PHILIPPINES IASC IFAC
PORTUGAL UEC
SOUTH AFRICA IASC
SPAIN UEC
SWITZERLAND X
THAILAND ASEAN IASC IFAC

UNITED KINGDOM E~ IASC
UNITED STATES X
URUGUAY X
ZAMBIA IASC
ZIMBABWE IASC IFAC
INFLUENCES OR ACOUIITDIG DEVELOPMER'r 25
aiHER. INFLUENCES
1.11 Please assess the influence on external financial reporting

practices of the following users of financial statements -
(See notes for index)
ISLANDS
ISLANDSISLANDS
COUNTRY
HIGH MEDIUM LOW
ARGENTINA CI ABDEFGHJ
AUSTRALIA AEFG BCDHIJ
BELGIUM EHI C ABDFGJ
BRAZIL CGI ADFH BEJ
CHANNEL ISLANDS CGH ABDEFIJ
CHILE I CH ABDEFGJ
COLOMBIA ACGH. BDEFIJ
DENMARK CDH EFI GJ
FINLAND CGHI ABDEFJ
FRANCE HI ACEG BDFJ
GERMANY I ACFGH BDEJ
HONG KONG ACGHI BDEFJ
INDONESIA HI AC BDEFGJ
IRELAND AJ
ITALY H ABCDEFGIJ
JAPAN H CFI ABDEGJ
MALAYSIA A BCFGH DEIJ
MEXICO ABC G DEFHIJ
NEW ZEALAND F ABCDEFGHIJ
PHILIPPINES ACH BDEFGIJ
PORTUGAL CHI EF ABDGJ
SOUTH AFRICA CFGHI. ABDEJ
SPAIN H ABCDEFGIJ
SWITZERLAND CH
THAILAND CDG BIJ AEFH
UNITED KINGDOM F EG ABCDHIJ
UNITED STATES I ACFG BDEHJ
URUGUAY CHI ABDEFGJ
ZAMBIA N/ A N/ A N/ A
ZIMBABWE AG BCDEFHIJ
26 IIIFLUERCES OR ACCOURTIIIG DEVELOPIIERT
O'lHER INFLUERCES
1.12 Is there a well-developed financial press, specifically commenting

on reporting practices and qualified audit reports?
COUNTRY YES NO
ARGENTINA X
AUSTRALIA X
BELGIUM X
BRAZIL X
CHANNEL ISLANDS X
CHILE X
COLOMBIA X
DENMARK X
FINLAND X
FRANCE X
GERMANY X
HONG KONG X
INDONESIA X
IRELAND X
ITALY X
JAPAN X
MALAYSIA X
MEXICO X
NEW ZEALAND X
PHILIPPINES X
PORTUGAL X
SOUTH AFRICA X
SPAIN X
SWITZERLAND X
THAILAND X
UNITED KINGDOM X
UNITED STATES X
URUGUAY X
ZAMBIA X
ZIMBABWE X
IRFLUKRCES OR ACCOURTIRG DEVELOPMENT
NOTES
Question 1.7
AUSTRALIA: An audit is required for a private limited

company except where all shareholders agree
otherwise. If there is no audit, then financial
accounts must be filed with the Corporate
Affairs Commission
CHANNEL ISLANDS: An audit is required for private limited

companies in Guernsey but not in Jersey
DENMARK: An audit is only required for a government

entity if it is a limited company
FRANCE: An audit is required for all private limited

companies except those S.A.R.L. with share
capital under F 300,000
HONG KONG: An audit is required for private limited

companies and public limited companies under
section 131 of the Companies Ordinance
INDONESIA: There is no legal requirement that companies

should be audited except for
(1) Companies whose shares are listed in the
Stock Exchange
(2) Companies established in 1979 and
thereafter under the Foreign Capital Investment
Law and Domestic Capital Investment Law
IRELAND: As for Denmark
ITALY: Only private limited companies whose capital has

a nominal value of at least one hundred million
lire are required to be audited
PHILIPPINES: An audit is required for all companies with

gross quarterly sales in excess of 25,000 pesos
UNITED KINGDOM: As for Denmark

28
Question 1.10
Influenti al internatio nal organisati ons
AIC: Asociacio n Interameri cana de Contabilid ad

ASEAN: Associatio n of South-Eas t Asian Nations
EEC: European Economic Community
IASC: Internatio nal Accounting Standards Committee
IFAC: Internatio nal Federation of Accountan ts
UEC: Union Europeenne des Experts Comptable s,
Economiques et Financiers
Question 1.11
INDEX
A: Equity investors
B: Individua l holders of debentures and loan stock
C: Banks and other lending agencies
D: Trade creditors and suppliers
E: Employees and trade unions
F: Competito rs and business rivals
G: Investmen t analysts and advisors
H: Tax authoritie s
I: Other governmen t agencies
J: Consumer and environme ntal associatio ns
CHAPTER TWO ACCOUNTIRG CONCEPTS ARD POLICIES
Contents Questions
Introduction 31
Going Concern 2.1 32
Accruals 2.2 33
Prudence 2.3 34
Consistency 2.4 35
Disclosure of Accounting Policies 2.5 36
Changes to Accounting Policies 2.6 37
Quantification of Accounting Policy changes 2.7 38

ACCOUftiBG CORCEPTS AliD POLICIES 31
IRTR.ODUCTIOB
This chapter provides the background to the specific questions in

Chapters Three to Eleven by dealing with two matters which are of
vital importance in the preparation and the interpretation of
financial statements - accounting concepts and accounting
policies.
Accounting concepts refer to the general assumptions made in

preparing financial statements. Accounting policies refer to the
specific methods used by an enterprise to apply the fundamental
accounting concepts to the recording of its business
transactions. Unlike the general nature of accounting concepts,
accounting policies deal with specific items of income
measurement and asset valuation. It is usually considered that
users of financial statements need to know details of the
accounting policies which have been adopted, in order to makean
informed evaluation of the company's financial position and
performance. It is therefore also reasonable to expect that
users of financial statements will need to be i1;1formed of the
financial impact of changes in the enterprise's accounting
policies.
Summary of Results
In almost all countries the accounting concepts of "going

concern", "accruals", "prudence", and "consistency" are required
either by law or professional accounting standard. The
disclosure of accounting policies, changes, and the quantitative
effects of any change are also required or recommended by the
vast majority of countries with the notable exceptions of
Portugal and Switzerland. In practice, the disclosure of
accounting policies is varied but generally high. However, the
disclosure of changes and their effects appears relatively
limited.
32 ACCOUITIRG CORCEPTS AID POLICIES
2.1 The financial statements should be prepared using the

"going concern" concept
CURRENT REQUIREMENTS CURRENT

PRACTICE
R
e
c p N p Going
R 0 e o e concern
e m r t r concept
q m m m referred
u e i i to
i n t t
r d t t
COUNTRY e e e e SOURCE
d d d d ABCDEF
-- -- -- - - ----------------
ARGENTINA X GAAP (P) N A
AUSTRALIA X AAS 6 (P) X
BELGIUM X RD (L) X
BRAZIL X CFC Res 530/81 (L) N A
CHANNEL ISLANDS --- --- --- ----- ---------------------
---------------- X SSAP 2 (P) 0
----------------
CHILE ---
X --- --- ----- ---------------------
TB 1 (P) -X -
COLOMBIA X INA (L) X
DENMARK X AAPA 1981 (L) 0
FINLAND X REC (P) 0
FRANCE X lAS 1 (P)
---
X --- --- ----- --------------------- -
X
----------------
GERMANY GOB (L) 0
HONG KONG X SSAP 105 (P) 0
INDONESIA X PAl 1 .1 (P) X
IRELAND X SSAP 2 (P) 0
ITALY X CIVIL CODE (L) 0
----------------
JAPAN X --- --- ----- ---------------------
--- BADC (L) X
MALAYSIA X MCA (L); lAS 1 (P) 0
MEXICO X IMCP (P) 0
X --- --- ----- ---------------------
----------------
NEW ZEALAND --- SSAP 1 (P) - N A
PHILIPPINES X APB 19 (P) X
----------------
PORTUGAL ---
X
--- --- ----- ---------------------
DL (L) 0
SOUTH AFRICA X STATEMENT 1.001 (P) 0
X --- --- ----- ---------------------
----------------
SPAIN --- PGC (L) - - - - - -X
SWITZERLAND X IH (P) X
THAILAND X FAS No.1 (P) X
----------------
UNITED KINGDOM ---
X --- --- ----- ---------------------
CA 1981(L) ;SSAP 2(P) 0
UNITED STATES X FAS SFAC 1;SAS 34(P) 0
URUGUAY ----- ---------------------
AIC (P)
- 0
--- ---
X --- ----- ---------------------
X
----------------
ZAMBIA lAS 1 (P)
---
X --- --- ----- ---------------------
0
----------------
ZIMBABWE lAS 1 (P)
---------------- --- --- --- ----- --------------------- -
X
ACCOUBTIJIG COBCEFrS Aim POLICIES 33

"accruals" concept

PRACTICE
R
e p
c Np Accruals
R 0 e o e concept
e m r t r referred
q m m m to
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- ---1-------- ---------
AUSTRALIA X AAS 6 (L) X
BELGIUM X RD (L)
BRAZIL X CFC Res 530/81 (L)
CHANNEL ISLANDS X SSAP 2 (P)
CHILE X TB 1 (P) X

---------------- X --- --- ----- ---------------------
---
DENMARK AAPA 1981 (L) -
X --- --- ----- ---------------------
---
X
----------------
FINLAND AL (L) - 0
FRANCE X CC,PCG (L);OECCA {P) 0
----------------
GERMANY
---
X ---
--- ----- ---------------------
GOB (L)
--- 0
INDONESIA X PAl 1.1 (P) X

IRELAND X SSAP 2 {P) 0
ITALY X CIVIL CODE (L) X
JAPAN CC; SEL; BADC (L) X

--- ----- --------------------- - - - 0
X
MALAYSIA X MCA ( L) ; lAS 1 ( P )
MEXICO X ----- ---------------------
IMCP (P) - - - -0
NEW ZEALAND X SSAP 1 (P) N A
PORTUGAL X DL (L) 0
SOUTH AFRICA X STATEMENT 1.001 (P) 0

SPAIN X ---------------------
PGC (L) X
SWITZERLAND X IH (P) 0
THAILAND X FAS 1 (P) X
UNITED KINGDOM X CA 1981(L);SSAP 2(P) 0

UNITED STATES X APBS 4; APBO 11 (P) 0
----------------
URUGUAY --- --- ---
X ----- ---------------------
AIC (P) 0
ZAMBIA X lAS 1 (P) 0

ZIMBABWE lAS 1 (P)
---------------- --- --- --- ----- ---------------------
X 0
34 ACCOURTIRG CONCEPTS AND POLICIES

"prudence" concept

PRACTICE
R
e
c p N p Prudence
R 0 e o e concept
e m r t r referred
q m m m to
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- - - ----------------
ARGENTINA X GAAP (P) NA
AUSTRALIA X AAS 6 (L) 0
BELGIUM X RD (L) X
BRAZIL X CFC Res 530/81 (L) NA
CHANNEL ISLANDS X SSAP 2 (P) 0
----------------
CHILE ---
X --- --- ----- ---------------------
TB 1 {P) X
----------------
DENMARK X
--- --- ----- ---------------------
AAPA 1981 (L) - - - -0
FINLAND X REC (P) 0
FRANCE X CL,PCG (L) ;OECCA (P) X
----------------
GERMANY X
--- --- ----- ---------------------
GOB (L)
- - - - - -0
INDONESIA X PAI 1.1 (P) 0
----------------
JAPAN ---
X --- --- ----- ---------------------
BADC (L) X --- -
MALAYSIA X MCA (L); IAS 1 (P) 0
MEXICO X IMCP (P) 0
NEW ZEALAND X NA
----------------
PORTUGAL
---
X
--- --- ----- ---------------------
DL (L)
- - - 0-
SOUTH AFRICA X STATEMENT 1.001 (P) X
----------------
SPAIN
---
X
--- --- ----- ---------------------
PGC (L)
- 0
----------------
SWITZERLAND
--- ---
X
--- ----- ---------------------
IH (P)
- - - -
X
UNITED STATES X APBS 4(P);FAS 5 {P)
----- ---------------------
0
URUGUAY X
--- AIC (P)
- 0
ZAMBIA X IAS 1 (P) 0
ZIMBABWE X IAS 1 (P) 0
ACCOUII'llBG CORCEPTS .ARD POLICIES 35

"consistency" concept

PRACTICE
R
e
c p Np Consistency
R 0 e 0 e concept
e m r t r referred
q m m m to
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- - -- - - - - - - - -
AUSTRALIA X AAS 6 (L) X
BELGIUM X RD (L) X
BRAZIL CFC Res 530/81 (L) NA
CHANNEL ISLANDS --- ---
X --- ----- ---------------------
X
---------------- SSAP 2 (P) 0
CHILE X TB 1 {P) X
FINLAND X REC (P) 0
FRANCE X COMM LAW(L);OECCA(P) X
GERMANY X GOB (L) 0
INDONESIA X PAl 1.1 (P) X
JAPAN CC; SEL; BADC (L)
- - - - - -X
X X
----------------
MALAYSIA ---
X
--- --- ----- ---------------------
MCA ( L) ; lAS 1 ( P)
MEXICO IMCP (P)
--- --- ----- ---------------------
X 0
----------------
NEW ZEALAND ---
X SSAP 1 {P) - NA
PHILIPPINES X APB 19 {P) X
PORTUGAL X DL (L) 0
SOUTH AFRICA X CA 1973(L);S1.001(P) X
SPAIN X PGC (L) X
UNITED STATES X APBO 20 (P)
--- ----- ---------------------
X
~---------------
URUGUAY
--- ---
X AIC (P) X
ZIMBABWE X lAS 1 (P)
---------------- --- --- --- ----- X
36 ACCOUBriRG COBCEP'I'S Aim POLICIES
2.5 Accounting policies (eg depreciation methods, inventory

measurement methods etc) should be disclosed

PRACTICE
R
e
c p N p
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
- - - - - 1---------------- ---------
LAW 19550 (L) N A
-X - - - - -
ARGENTINA X
----------------
AUSTRALIA
---
X
--- --- ----- ---------------------
AAS 6 (L)
BELGIUM X RD (L) X
BRAZIL X LAW 6. 404 (L) NA

CHANNEL ISLANDS X SSAP 2 (P) X
X SVS {L); TB 6 (P) X

- - - -X - -
CHILE
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
INA (L)
DENMARK X FSR (P) X
FINLAND X REC (P) X
X OECCA (P) X
-X - - -
FRANCE
---------------- ---
GERMANY X
--- --- ----- ---------------------
SCL (L)
HONG KONG X SSAP 105 (P) X
INDONESIA X TD 108; BAPEPAM (L) X

----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 2 (P)
-X - -
X SEL; BADC (L) X

-X - - -
JAPAN
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 1 (P)
MEXICO X IMCP (P) X

SEC (L) X
-X - - - - -
PHILIPPINES X
---------------- --- --- --- ----- ---------------------
DL ( L)
---- - -
PORTUGAL X
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973(L);S1.00l(P) X
SPAIN X PGC (L) X
SWITZERLAND X X
UNITED KINGDOM X CA 1981(L);SSAP 2{P) X

APBO 22 (P) X
- - - -X - -
UNITED STATES X
----------------
URUGUAY
---
X
--- --- ----- ---------------------
DN (L)
ZAMBIA X lAS 1 (P) X
---------------- --- --- --- ----- --------------------- - - - -

ZIMBABWE X lAS 1 (P) X
ACCOUNriBG COBCEPTS .ABD POLICIES
2.6 The fact of changes to accounting policies should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- - - - - - - - -
ARGENTINA LAW 19550 (L) NA
-X -
X
AUSTRALIA X
----- ---------------------
AAS 6 (L) -
BELGIUM X RD (L) X
BRAZIL X LAW 6.404 (L) N A
CHANNEL ISLANDS SSAP 6 ( P)
---------------- --- --- --- ----- --------------------- -X - - - - -
X X
CHILE X TB 5 (P)
DENMARK CA 1973 (L)
--- ----
X X
----------------
FINLAND X
--- --- ----- ---------------------
AL (L) X
FRANCE COMMERCIAL LAW (L)
--- --- --- ----- ---------------------
X X
----------------
GERMANY X SCL ( L) -X - -
INDONESIA TD108,BAPE(L);PAI2.8 X
----- ---------------------
X
IRELAND X
--- --- SSAP 6 (P) - - -
X
JAPAN CC; SEL; BADC (L) X

----- ---------------------
X
MALAYSIA MCA (L); lAS 1 (P) ---

X
--- ---
X
----------------
MEXICO X
--- --- ----- ---------------------
IMCP (P) X
NEW ZEALAND X SSAP 1 (P) NA
PHILIPPINES X SEC (L) X
PORTUGAL X X
SOUTH AFRICA X CA 1973(L);S1.003(P) X
----------------
SPAIN X --- --- ----- ---------------------
--- PGC (L) - X
UNITED KINGDOM X ----- ---------------------
CA 1981(L);SSAP 6(P) X
UNITED STATES X APBO 22 (P) X
URUGUAY X
----- ---------------------
DN (L) - X
ZAMBIA X !AS 1 (P) X

ZIMBABWE !AS 1 (P)
---------------- --- --- --- ----- --------------------- - - - -
X X
38 ACCOUBTDIG CONCEPTS Aim POLICIES
2.7 The effects of changes to accounting policies should be

quantified

PRACTICE
R
e
c p N p
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
- - - -- ---------------
ARGENTINA X LAW 19550 (L) N A
---------------- ---
AUSTRALIA X
--- --- ----- ---------------------
AAS 6 (L)
- -- X
BELGIUM X RD (L) X

CHILE X TB 15 (P) X
DENMARK X FSR (P) 0

FINLAND X REC (P) X
COMMERCIAL LAW (L) X

-X - - - - -
FRANCE X
----------------
GERMANY
---
X
--- --- ----- ---------------------
SCL (L)
INDONESIA X TD108 ,BAPE(L) ;PAI2 .8 X
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 6 (P)
----
X
JAPAN X CC; SEL; BADC (L) X

----------------
MALAYSIA
---
X
--- --- ----- ---------------------
MCA (L); lAS 1 (P)
- - -X -
MEXICO X IMCP (P) X

----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
SEC (L)
- - - - -X -
PORTUGAL X X
SOUTH AFRICA X CA 1973(L) Sl.003(P) X
SPAIN X PGC (L) X
SWITZERLAND X 0
----------------
UNITED KINGDOM
---
X
--- --- ----- --------------------- ---
CA 1981(L);SSAP 6(P) X
X APBO 20 (P) X
--- -
UNITED STATES
----------------
URUGUAY
--- ---
X
--- ----- ---------------------
DN (L) 0

ZIMBABWE lAS 1 (P)
---------------- --- --- --- ----- --------------------- -
X X
CHAPTER. TBR.EE DCOME AIID ASSET MEASUK.EMERT
Contents Questions
Introduction 41
Inventories (excluding LT work-in-progress)
- Measurement 3.1 - 3.5 50

- Disclosure 3.6 - 3.9 69
Inventories (long-term work-in-progress)
- Measurement 3.10 - 3.12 73

- Disclosure 3.13 - 3.15 79
Fixed Assets
- Measurement 3.16 - 3.19 83

- Disclosure 3.20 - 3.31 103
Taxation
- Measurement 3.32 - 3.33 120

- Disclosure 3.34- 3.39 125
Research and Development
- Measurement 3.40 - 3.43 131

- Disclosure 3.44 - 3.47 135
Leases
- Measurement 3.48 - 3.50 139

- Disclosure 3.51 - 3.55 142
Pensions
- Measurement 3.56 - 3.57 147

- Discosure 3.58 - 3.62 150
Earnings per share
- Measurement 3.63 - 3.64 157

- Disclosure 3.65 - 3.68 164
Notes 173
IBCOME Aim ASSET MEASUREMERT 41
IIrlR.ODUCTIOII
This chapter is concerned with the requirements and practices

relating to income measurement and asset valuation in respect of
the following subjects:-
(a) Inventories
(b) Fixed Assets
(c) Taxation
(d) Research and Development
(e) Leases
(f) Pensions
(g) Earnings per share
As each of the above items can have a significant effect on a

company's financial results the user needs to know what
accounting policies were adopted in order to enable an informed
evaluation of the financial statements to be made.
Inventorie·s
This section considers the alternative methods of inventory

valuation (ie. cost, market value or any other base) and then
reviews the possible definitions of cost (eg. FIFO, LIFO, etc.)
and market value. It also deals with how inventories should be
reflected in the financial statements and whether the amount
disclosed should be further analysed, either by type of inventory
or by bas is of valuation. In add it ion, the basis for computing
any profits or losses on long-term work-in-progress, the method
of accounting for progress payments, and whether provisions for
foreseeable losses on such contracts should be disclosed, are all
reviewed.
42
Fixed Assets
This section deals with how fixed assets are shown in a company's
financial statements, either at cost or valuation, and the bases
used to measure any such valuation. Also considered are the
criteria used to determine what categories of fixed assets are
liable to be depreciated and the depreciation method that will be
adopted. In respect of the disclosure requirements and
practices, information is provided about whether companies
provide details on the valuation of fixed assets, analyse fixed
assets and their movements by categories and disclose the
depreciation charge for the year and the method and bases used in
calculating it.
Taxation
The primary objective of this section is to provide information

on the measurement and disclosure of deferred tax, although there
are additional disclosure questions relating to the taxes charged
on a company's earnings (eg. tax charge for the year, current tax
liability). The section provides information on the extent to
which countries recognise the effects of timing differences.
Where a country provides for deferred tax, details are given as
to whether it is calculated using the liability method or the
deferral method.
Research and Development
Expenditure on research and development can be incurred either in

a search for new knowledge or understanding (pure and applied
research) or in the development and improvement of products and
production techniques (development research). The criteria
adopted by the various countries on what expenditure to defer and
what portion to write off are reviewed, along with how the
expenditure is disclosed in financial statements.
43
Leases
Leases are contracts which transfer the benefits of use of plant,

equipment or property from one party (the lessor) to another
party (the lessee) for a given duration. Leases can be
classified either as operating leases or finance leases, the
latter transferring the normal risks and rewards of ownership to
the lessee. This distinction between the two types of leases is
considered along with which party capitalises finance leases in
its financial records. The disclosure aspects of leasing are
also reviewed especially in respect of amounts expensed during
the year and the future lease rental commitments.
Pensions
This section is concerned with whether a company has a pension

plan for its employees and how it accounts for such a plan. It
does not consider government-operated pension schemes to which
companies must contribute, nor the accounting for pension funds
themselves. It reviews how companies measure their charge to
income, and whether such charges should include the making-up of
any shortfalls in the pensions scheme. Also considered is
whether the following should be disclosed in a company's
financial statements:- the pension costs charged to income, the
company's pension liabilities, and details of the pension plan
(ie. its assets and liabilities and the number of employees
involved, both past and present).
Earnings per share
This section considers the guidelines applicable in calculating

the earnings per share figure and whether it should be disclosed
in the income statement or the notes to the accounts. It also
covers whether the method of calculating EPS shculd be shown and
whether the effect of dilution should be disclosed. In addition,
the section considers various other accounting ratios measuring a
company's performance and profitability.
44
Summary of Results
Inventories
The results of the survey show that most countries require

inventories to be valued at the lower of cost and market value.
Most countries permit a variety of methods of determining cost,
although the replacement cost method is rarely permitted. In
practice, companies tend to use FIFO or weighted average rather
than LIFO. Most countries require companies t·o disclose a
breakdown of the inventory total into the categories of inventory
held. As for long-term work-in-progress, slightly more countries
prefer to recognise profits on the "percentage of estimated
profits" basis rather than on completion of the contract,
although the majority of countries permit companies to use either
method. In most countries, companies are required to disclose
the total of long-term work-in-progress, if material, and also
the accounting policy.
Fixed assets
The survey shows that the majority of countries require fixed

assets to be measured at cost rather than at valuation. In
nearly all countries, there is a requirement or a recommendation
that companies depreciate their fixed assets. This generally
applies to all fixed assets except land.
Few countries have specific requirements for one particular

depreciation method, but in practice the majority of companies in
most countries use the straight-line method rather than the
reducing balance method. Most countries require or recommend
companies to analyse total fixed assets by category. Many
countries do not require companies to disclose movements in fixed
assets (such as acquisitions and disposals), and companies in
these countries rarely disclose this information. Nearly all
countries have a requirement or recommendation that companies
disclose their accounting policy for depreciation, and companies
normally comply with these pronouncements. In most countries,
45
companies are required to disclose the depreciation charge for

the year.
Taxation
The results of the survey show that of those countries with

specific requirements, most require deferred tax to be provided
in full, although a significant minority do not permit deferred
tax accounting. Very few countries have adopted the "partial
provision" method. In those countries where deferred tax is
required or permitted, the majority of companies in most
countries use the liability method rather than the deferral
method for calculating the deferred tax balance. Nearly all
countries require or recommend that companies disclose the tax
charge for the year.
Research and Development (R&D)
Certain countries (notably the United States) require companies

to write off all R&D expenditure as it is incurred. However, a
greater number of countries permit companies to defer R&D
expenditure in certain circumstances. Overall, a substantial
number of companies do defer some or all of their R&D
expenditure, but in general it seems that the immediate write-off
method is more common. In about half of the countries surveyed,
companies are required to disclose the amount of R&D written off
in the year.
Leases
The survey shows that only a few countries require lessees to

capitalise finance leases. About the same number of countries go
to the opposite extreme and do not permit lessees to capitalise
finance leases. In those countries that require lease
capitalisation by lessees, there are normally a number of
disclosure requirements, such as details of the amounts
capitalised and details of future commitments to pay lease
rentals.
46
Pensions
The results of the survey show that very few countries have any
specific requirements or recommendation regarding the measurement
of pension costs. In practice, the charge to income normally
consists of the current contribution to the pension scheme,
rather than the current contribution plus the making-up of any
shortfall. Few countries require companies to disclose pension
costs or pension liabilities, although in practice many
companies disclose this information on a voluntary basis. Very
few countries require companies to disclose details of their
pension plans, and this information is rarely disclosed
voluntarily.
Earnings per share (EPS)
Around half of the countries surveyed do not require or recommend

companies to disclose EPS. Of those countries that do require or
recommend disclosure, the majority say that EPS should be
disclosed in the income statement rather than in the notes to the
accounts. In general, EPS should be based on post-tax profits
rather than pre-tax profits. It seems that in practice the
majority of companies that disclose EPS also disclose the method
of calculating the EPS figure.
International Developments
Inventories
The IASC issued lAS 2 on "Valuation and Presentation of

Inventories in the context of the Historical Cost System" in
1975. This became effective from 1 January 1976. The IASC also
issued lAS 11 on "Accounting for Construction Contracts" in 1979.
This became effective from 1 January 1980. lAS 2 requires
companies to disclose inventories at the lower of cost and net
realisable value. In general, historical cost should be arrived
at using FIFO or weighted average cost, although LIFO or base
stock formulas are permitted provided that additional information
47
is given. The financial statements should sub-classify

inventories in a manner appropriate to the business and so as to
identify the amounts held in each of the main categories. The
financial statements should disclose the accounting policies
used, including the formula used for calculating cost. lAS 11
requires companies to account for long-term work-in-progress
using the percentage of completion method or the completed
contract method. The percentage of completion method may only be
used if the outcome of the contract may be reliably estimated.
Disclosures should include the amount of long-term work-in-
progress and the amount of progress payments received and
receivable.
Fixed Assets
The measurement of fixed assets (that is, cost or valuation) is

not covered by any of the lASC standards. However, lAS 4 on
"Depreciation Accountini• issued in 1976 deals with depreciation
issues. lAS 4 became effective from 1 January 1977. lAS 4
states that the depreciable amount of a depreciable asset should
be allocated on a systematic basis to each accounting period
during the useful life of the asset. Depreciation methods such
as straight-line, reducing balance and sum of digits are
therefore permit ted. The financial statements should also
disclose the following for each major class of depreciable asset:
(1) The depreciation methods used.

(2) The useful lives or the depreciation rates used.
(3) Total depreciation allocated for the period.
(4) The gross amount of depreciable assets and the related
accumulated depreciation.
48
Taxation
The IASC issued lAS 12 on "Accounting for Taxes on Income" in

1979. This became effective from 1 January 1981. lAS 12 states
that companies should normally provide deferred tax on all timing
differences. However, companies may provide on a partial basis,
to the extent that there is reasonable evidence that certain
timing differences will not reverse for some considerable period
ahead. The balance sheet should disclose the deferred tax
balance separately from shareholders funds.
Research and development (R&D)
The IASC issued lAS 9 on "Accounting for Research and Development

Activities" in 1978. This became effective from 1 January 1980.
lAS 9 permits companies to defer development expenditure provided
that certain conditions are satisfied. These conditions relate
primarily to the feasibility and marketability of the product or
process being developed. Companies should disclose the total of
research and development costs charged as expense. This includes
the amortisation of any deferred development costs. Companies
should disclose the movement in, and the balance of, unamortised
deferred development costs. Companies should also disclose the
basis proposed or adopted for the amortisation of the unamortised
balance.
Leases
The lASC issued lAS 17 on "Accounting for Leases" in 1982. This

became effective from 1 January 1984. There are various
transitional provisions covering the period up to 1 January 1988.
lAS 17 requires lessees to capitalise finance leases and record a
matching liability. Lessors should record finance leases not as
property, plant and equipment but as amounts receivable. Lessees
should disclose future commitments for minimum lease payments
under finance leases, giving in summary form the amounts and
periods in which the payments will become due.
49
Pensions
There is no international accounting standard that deals

specifically with accounting for pension costs. However, !AS 1
on "Disclosure of Accounting Policies", which became effective
from 1 January 1975, requires companies to disclose all
significant accounting policies that have been used. This could
be interpreted to mean that companies should disclose the
accounting policy for determining pension costs and pension
liabilities. In addition, lAS 5 on "Information to be Disclosed
in Financial Statements", issued in 1976, requires companies to
disclose the amount of their pension liabilities.
Earnings per share (EPS)
None of the international accounting standards to date deals with

the measurement or disclosure of earnings per share.
50 DICOME ABD ASSET MEASUREMENT
INVENTORIES (excluding long-term work-in-progress) - MEASUREMENT
3.1(a) Inventories should be measured at cost (ie production cost

or purchase price)

PRACTICE
R
e
c p N p
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
- - - -- ---------------
ARGENTINA X NA
AUSTRALIA X AAS 2 (P) 0

BELGIUM X RD (L) X
BRAZIL X LAW 6. 404 (L) N A

CHANNEL ISLANDS X 0
CHILE X TB 1 (P) X
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
GAAP ( P)
------
X
DENMARK X 0
FINLAND X AL (L) 0
FRANCE X PCG 1957 (L) X
GERMANY X SCL (L) X
INDONESIA X PAl 3 (P) X
IRELAND X SSAP 9 (P) X
CIVIL CODE (L) 0

-X
ITALY X
JAPAN X
----- ---------------------
CC (L); BAP (L) N
-
MALAYSIA X lAS 2 (P) X
IMCP C-4 ( P) X
- - N- A- - -
MEXICO X
---------------- --- --- --- ----- ---------------------
- - -X -
NEW ZEALAND X SSAP 4 (P)
----------------
PHILIPPINES
--- ---
X
--- ----- ---------------------
APB 7 (P)
PORTUGAL X DL (L) X
SOUTH AFRICA X CA 1973 (L) X
SPAIN X LSA (L) X
SWITZERLAND X CL (L) X
THAILAND X ED FAS 6 (P) X

----------------
UNITED KINGDOM
--- --- --- -----
X
---------------------
CA 1981(L) ;SSAP 9(P)
- X
UNITED STATES X ARB 43 (P) X
URUGUAY X AIC (P) X
lAS 2 (P)
--- - - --X
ZAMBIA X X
---------------- --- --- ----- ---------------------
lAS (P)
ZIMBABWE
--- --- --- ----- --------------------- - - - -
X
------------~---
llfCOME ABD ASSET MEASUREMENT 51
3.l(b) Inventories should be measured at market value

------------------r-----------------------------·------------
PRACTICE
R ----~-----------
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
ARGENTINA NA
--- ---
X
----------------
AUSTRALIA X
---------------------
AAS 2 (P) X
----------------
BELGIUM X
---------------------
RD (L) 0
----------------
BRAZIL X
---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS ---------------------
----------------
CHILE
--- --- X
---------------------
TB 1 (P)
- - - - -
0
---- -
X
----------------
COLOMBIA
--- --- ---------------------
GAAP (P)
0
X 0
----------------
DENMARK X
---------------------
AAPA 1981 (L) 0
----------------
FINLAND ---------------------
AL (L)
---- - 0
X
----------------
FRANCE ---------------------
PCG 1957 (L)
----------------
GERMANY
--- --- --- X
X
---------------------
SCL (L)
X
0
----------------
HONG KONG
--- --- --- ---------------------
SSAP 115 (P)
--- - -
---- -
X X
----------------
INDONESIA X
---------------------
PAl 3 (P) 0
----------------
IRELAND X
---------------------
SSAP 9 (P)
- - -- - X
----------------
ITALY
--- --- --------------------- - - - -
CIVIL CODE (L)
--- ---
X 0
----------------
JAPAN ---------------------
cc (L); BAP (L)
- - - -
--- --- X - ---X
X 0
----------------
MALAYSIA ---------------------
lAS 2 (P)
----------------
MEXICO X
~--------------------
IMCP C-4 (P)
- - - -
0
----------------
NEW ZEALAND X
---------------------
SSAP 4 (P) NA
----------------
PHILIPPINES X
---------------------
APB 7 (P) N X
----------------
PORTUGAL
--- --- ---------------------
DL (L)
--- --- ---
X X
----------------
SOUTH AFRICA ---------------------
CA 1973 (L)
- - --
--- --- --- --
X
---
0
----------------
SPAIN X
---------------------
LSA (L)
---
X
----------------
SWITZERLAND X
---------------------
CL (L)
- -
0
----------------
THAILAND ---~--~--~~---~------ - - - - -
--
X
---
0
----------------
UNITED KINGDOM X
---------------------
CA 1981(L);SSAP 9(P)
----------------
UNITED STATES
--- --- X
---------------------
ARB (P) N
- -- -
0
----------------
URUGUAY
--- --- --- ---------------------
AIC (P)
- - - -
0
- - - --
X
--- --- X
X
----------------
ZAMBIA ---------------------
lAS 2 (P)
- - -
0
----------------
ZIMBABWE ---------------------
lAS 2 (P)
--
- - ---
X
----------------
X
---------------------
52 IBCOIIE AND ASSET MF.ASUB.EMEIT
3 .l(c) Inventories should be measured at lower of cost and market

value
---------- ---------- ----
PRACTICE
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A B c D E F
- -- - - ---· -- - - - - - -
ARGENTINA X RES 148 (P) N A
---------------
AUSTRALIA
- ---
X
--- --- ----- ---------------
AAS 2 (P)
------ -X - -
BELGIUM X RD (L) X
CHILE X TB 1 (P) X
------~---------
COLOMBIA
---
X
--- --- ----- ----------------
GAAP ( P)
----- - - - - - -0
----- -X - - - - -
DENMARK X AAPA 1981 (L) X
---------------
FINLAND
- ---
X
--- --- ----- ----------------
AL (L)
GERMANY X SCL (L) X

---------------
INDONESIA
- --- ---
X
--- ----- ----------------
PAl 3 (P)
----- - - - - - -0

---------------
JAPAN
- --- --- ---
X
----- ----------------
CC (L); BAP (L)
----- X
MEXICO X IMCP C-4 (P) X

---------------
NEW ZEALAND
- ---
X
--- --- ----- ---------------
SSAP 4 (P)
------ -N A- - -
X
----- - - - - - -0
PHILIPPINES X APB 7 (P)
---------------
PORTUGAL
- --- --- ---
X
----- ----------------
DL (L)
SOUTH AFRICA X CA 1973 (L) NX

SPAIN X LSA (L) X
----- - - - - - -
---------------
UNITED KINGDOM
- ---
X
--- --- ----- ----------------
CA 198l(L);SSAP 9(P) X
URUGUAY X AIC (P) X

IBCOMB Aim ASSET MEASOR.EMEBT 53
3.2(a) "Production cost" should exclude overheads

--------,..------------~---------- --~---

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
AUSTRALIA X ---------------------
AAS 2 (P) X
BELGIUM X ---------------------
RD (L) X
BRAZIL
--- --- --- X ----~-~----~---------
LAW 6.404 (L) NA
CHANNEL ISLANDS X --------------------- 0
CHILE X ---~~----------------
TAX LAW (L)
----- 0
COLOMBIA
--- --- X ---------------------
TA (L)
-----
DENMARK X ---------------------
AAPA 1981 (L) X
FINLAND X ---------------------
AL (L) X
FRANCE X ---------------------
PCG 1957 (L) 0
GERMANY X ---------------------
SCL (L) N 0
HONG KONG X ---------------------
SSAP 115 (P) 0
INDONESIA X ---------------------
PAl 3 (P) 0
IRELAND X ---------------------
SSAP 9 (P) 0
ITALY
--- --- ---------------------
X PC 3 (P) X
JAPAN
--- --- --- X ---------------------
CAS (L)
- - - -
MALAYSIA
--- --- --- X ---------------------
lAS 2 (P)
- - - - -
0
X
k"EXICO X ---------------------
IMCP C-4 (P) 0
NEW ZEALAND
--- --- X ---------------------
SSAP 4 (P) NA
PHILIPPINES
--- --- --- X ---------------------
BIR Rev Reg 7-75 (L)
PORTUGAL
--- --- --- X -------·-------------
DL (L)
- - - - -
0
0
SOUTH AFRICA X ---------------------N - - - - - X
SPAIN X --------------------- - - - - - 0
SWITZERLAND X ---------------------
IH (P) X
THAILAND
--- --- X ---------------------
ED FAS 6 (P) X
UNITED KINGDOM
--- --- --- X -··------------------
CA 198l(L) ;SSAP 9(P)
- - - - - X
UNITED STATES X ---------------------
ARB 43 (P)
URUGUAY X ---------------------
AIC (P)
- - - - -
0
0
ZAMBIA X ---------------------
lAS 2 (P)
- - - - -
0
ZIMBABWE X ---------------------
lAS 2 (P)
- - - -
0
--·---~-------------- - - - - -
54 DICOIIE Aim ASSET HEA.SUR.EKEBT
3.2(b) "Production cost" should include variable overheads only

(ie. overheads which vary with volume of production)
-- ---
------~---

PRACTICE
~
- ------ ------------
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i 1
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA
AUSTRALIA
X
-Ms_2_<p> _______ ---- ,- NA
-
X X
BELGIUM X
---------------------
RD (L) X
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X TA (L)
--------------------~
FINLAND AL (L)
-- - - -
X 0
FRANCE PCG 1957 (L)
- - - -X
X X
------------~--------
GERMANY X SCL (L) N
------------~~-------
INDONESIA X PAl 3 (P) 0
--------------------~
ITALY X PC 3 (P) X
JAPAN X CAS (L) 0
MALAYSIA ---------------------
lAS 2 (P)
- -
X X
MEXICO X ---------------------
lMCP C-4 (P)
- - - X
NEW ZEALAND X
---------------------
SSAP 4 (P) N A
PHILIPPINES X BlR Rev Reg 7-75 (L) 0
PORTUGAL X
---------------------
DL (L) X
SOUTH AFRICA X N 0
SPAIN X
- - -- -
0
THAILAND X X
UNITED KINGDOM X SSAP 9 (P) 0
UNITED STATES X ARB 43 (P) 0
URUGUAY X AIC (P) 0
----------~-------~--
ZIMBABWE X
=~~~=~=~~2=====~~~~~~~= X
IBCOHE AND ASSEI MEASUREMENT 55
3.2(c) "Production cost" should include variable overheads plus

fixed overheads based on a normal level of capacity
-----------------------
_..,_. __,___ .---- -------------
PRACTICE
e
c p N p
R 0 e 0e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d AB CDEF
----------------
BELGIUM X RD (L) N X
BRAZIL X LAW 6.404 (L) NA
CHANNEL ISLANDS X SSAP 9 (L) X
-----------~~--------
CHILE X TB 1 (L) X
COLOMBIA X TA (L)
FINLAND
--- --- X
---------------~--~--
AL (L) X
FRANCE PCG 1957 (L) X
- - --
X N
GERMANY X
--- --- ----- ---------------------
SCL (L) N X
INDONESIA X PAl 3 (P) X

ITALY X
--- ----- ---------------------
PC 3 (P) X
JAPAN X CAS (L) X
MALAYSIA X ---------------------
lAS 2 (P) X
- -- -
MEXICO X ---------------------
IMCP C-4 (P) X
NEW ZEALAND X ---------------------
SSAP 4 (P) NA
PHILIPPINES X
--- --- BIR Rev Reg 7-75 (L) X
PORTUGAL X ---------------------
DL (L) X
SOUTH AFRICA X N X
SPAIN X 0
UNITED KINGDOM X SSAP 9 (P) NX
UNITED STATES X ---------------------
ARB 43 (P) X
URUGUAY X ---------------------
AIC (P) 0
56 IRCOHE AlfD ASSET MEASOR.EMERT
3.2(d) "Production cost" is defined in some other way

r----------------- --·--------
PRACTICE
1----r--....--.r---·-t---- ------- -- - -- ~-----·-------
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA
--- --- X
--- ---
X
BELGIUM X RD (L) 0
BRAZIL
--- --- --- X LAW 6.404 (L) N A
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X TA (L)
DENMARK X 0
FINLAND X AL (L) 0
FRANCE X PCG 1957 (L) 0

--- --- --- X ---------------------
SCL (L) 0
--- --- ---
GERMANY
INDONESIA X 0
ITALY
--- --- --- X ---------------------
PC 3 (P) 0
JAPAN X CAS (L) 0
NALAYSIA X lAS 2 (P) 0
MEXICO
--- --- X IMCP C-4 (P) X
NEW ZEALAND
--- --- X ---------------------
SSAP 4 (P) :K A
--- --- X BIR Rev Reg 7-75 (L) X
PHILIPPINES
PORTUGAL X ---------------------
DL (L) 0
X
----
SOUTH AFRICA
SPAIN
--- --- X
N
X
-- -- 0
SWITZERLAND X 0
UNITED KINGDOM X
---------------------
CA 1981(1); SSAP 9(P) X
UNITED STATES X
---------------------
ARB 43 (P) X
URUGUAY X AIC (P) 0

DICOME ABD ASSE'r IIEASUB.EHEI'f 57
3.3(a) Cost should be calculated on the basis of FIFO

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
ARGENTINA X .N A
AUSTRALIA
--- --- X ---------------------
AAS 2 (P) X
BELGIUM
--- --- X ---------------------
RD (L) X
BRAZIL X ---------------------
RIR (L)
-
NA
CHANNEL ISLANDS X ---------------------
SSAP 9 (P) X
CHILE
--- --- X ---------------------
TB 1 (P) X
COLOMBIA X ---------------------
NIPA (P) X
DENMARK X
--- ----- ---------------------
FSR (P) X
-- - --
FINLAND X ---------------------
AL (L) X
FRANCE X --------------------- X
GERMANY X ---------------------
SCL (L) N X
HONG KONG X ---------------------
SSAP 115 (P) X
INDONESIA X ---------------------
PAl 3 (P) 0
IRELAND X ---------------------
SSAP 9 (P) X
ITALY
--- --- X ---------------------
PC 3 (P) X
JAPAN
--- --- X ---------------------
BAP (L)
- - - - X
MALAYSIA X ---------------------
lAS 2 (P) X
MEXICO X ---------------------
IMCP C-4 (P) X
NEW ZEALAND
--- --- X ---------------------
SSAP 4 (P) NA
PHILIPPINES X ---------------------
APB 7 (P) X
PORTUGAL X ---------------------
DL (L) 0
SOUTH AFRICA
--- --- X --------------------- X
--- --- X ---------------------
PGC (L) X
SPAIN
SWITZERLAND
--- --- X ---------------------
IH (P) X
THAILAND
--- --- X ---------------------
ED FAS 6 (P) X
--- --- X ---------------------
CA 1981(1); SSAP 9(P) X
UNITED KINGDOM
UNITED STATES X ---------------------
ARB 43 (P) X
URUGUAY
--- --- X --------------------- X
ZAMBIA X ---------------------
lAS 2 (P) 0
ZIMBABWE X
--- ----- ---------------------
lAS 2 (P) X
--- ----- ---------------------
58 DICOHE ARD ASSET HEASUB.EMEIT
3.3(b) Cost should be calculated on the basis of LIFO

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- - - -- ---- - - -- - -
ARGENTINA X NA
----------------
AUSTRALIA
--- --- --- -----
X ---------------------
AAS 2 (P)
- - - - - -X
----------------
BELGIUM
--- --- ---
X
----- ---------------------
RD .(L) - - -X - - -
----------------
BRAZIL
--- --- --- -----
X
---------------------
RIR (L)
- - -N A- - -
----------------
CHANNEL ISLANDS
--- --- ---
X
----- --------------------- - - - - - -0
----------------
CHILE
--- --- ---X ----- ---------------------
TB 1 (P)
- - - - - -0
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
NIPA (P)
- - - - - -0
----------------
DENMARK
--- --- ---X ----- --------------------- - - - - - -0
----------------
FINLAND
--- --- --- ----- ---------------------
AL (L)
- - - - - -0
----------------
FRANCE
--- --- --- -----
X
---------------------
TAX LAWS (L)
- - - - -X -
----------------
GERMANY
---
X
X
--- --- ----- ---------------------
SCL (L) N
- - - - X- -
----------------
HONG KONG
--- --- --- -----
X
---------------------
SSAP 115 (P)
- - - - - -0
----------------
INDONESIA
--- ---
X
--- ----- ---------------------
PAl 3 (P)
- - - -X - -
----------------
IRELAND
--- --- --- ----- ----------------------
SSAP 9 (P) N
- - - - - -0
--- --- ---
X
----------------
ITALY X
----- ---------------------
PC 3 (P)
- - -X - - -
----------------
JAPAN
--- --- ---
X
----- ---------------------
BAP (L)
- - - - X- -
----------------
MALAYSIA
--- --- ---
X
----- ---------------------
IAS 2 (P)
- - - - - X-
----------------
MEXICO
--- --- ---X ----- ---------------------
IMCP C-4 (P)
- - - -X - -
----------------
NEM ZEALAND
--- --- ---X ----- ---------------------
SSAP 4 (P)
- - -N A- - -
----------------
PHILIPPINES
--- ---
X
--- ----- ---------------------
APB 7 (P)
- - - - - X-
----------------
PORTUGAL
--- --- ---
X
----- ---------------------
DL (L)
- - - -X - -
----------------
SOUTH AFRICA
--- --- ---
X
----- --------------------- - - - -X - -
----------------
SPAIN
--- --- --- ----- ---------------------
PGC (L)
- - - - - -0
--- --- ---
X
----------------
SWITZERLAND
----- --------------------- - - - - - -X
--- --- ---
X
----------------
THAILAND X
----- ---------------------
ED FAS 6 (P)
- - - - X- -
----------------
UNITED KINGDOM
--- --- ---
X
----- ---------------------
CA 1981(L) ;SSAP 9(P)N
- - - - - -X
----------------
UNITED STATES
--- --- --- ----- ---------------------
ARB 43 (P)
- -X - - - -
----------------
URUGUAY
--- --- ---X ----- --------------------- - - - - - -0
X
----------------
ZAMBIA
--- --- ---
X
----- ---------------------
lAS 2 (P)
- - - - - -0
----------------
ZIMBABWE
--- --- --- -----
X ---------------------
TAX LAW (L)
- - - - - -0
---------------- --- --- --- ----- --------------------- - - - - - -
IBCOIIE Aim ASSET MEASUREMENT 59
3.3(c) Cost should be calculated using a weighted average method

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
- - -- -- - - - - - -
ARGENTINA NA
--- --- --- - - - -X - -
X
----------------
AUSTRALIA
----- ---------------------
AAS 2 (P)
----------------
BELGIUM
--- --- ---
X
----- ---------------------
RD (L)
- - - -X - -
----------------
BRAZIL
--- --- ---
X
----- ---------------------
RIR (L)
- - N- A- - -
--- --- --- ----- --------------------- - - - - - 0-
X
----------------
CHANNEL ISLANDS
----------------
CHILE
--- --- ---
X
----- ---------------------
TB 1 {P)
- -X - - - -
----------------
COLOMBIA
--- --- --- ----- ---------------------
X
NIPA (P)
- - - - - -0
--- --- --- ----- --------------------- - - - - - -0
X
----------------
DENMARK
--- --- --- ----- - - - - - -X
X
----------------
FINLAND ---------------------
AL {L)
----------------
FRANCE
--- --- --- ----- ---------------------
X
PCG 1957 (L)

- - -X - - -
- - - -X - -
X
----------------
GERMANY
--- --- --- ----- ---------------------
SCL (L) N
--- --- --- - - - -X - -
X
----------------
HONG KONG
----- ---------------------
SSAP 115 (L)
----------------
INDONESIA
--- --- X
--- ----- ---------------------
PAl 3 (P)
- - -X - - -
--- --- --- - - - X- - -
X
----------------
IRELAND
----- ---------------------
SSAP 9 (P)
--- --- --- ----- --------------------- - - - X- - -
X
----------------
ITALY PC 3 {P)
----------------
JAPAN
--- --- ---
X
----- ---------------------
BAP (L)
- X- - - - -
----------------
MALAYSIA
--- --- --- ----- ---------------------
X
lAS 2 (P)
- - X- - - -
----------------
MEXICO
--- --- ---
X
----- ---------------------
IMCP C-4 {P)
- - -X - - -
--- --- --- ----- --------------------- - - N- A- - -
X
----------------
NEW ZEALAND SSAP 4 (P)
--- --- --- ----- --------------------- - - -X - - -
X
----------------
PHILIPPINES APB 7 {P)
----------------
PORTUGAL
--- --- ---
X
----- ---------------------
DL {L)
- - - -X - -
--- --- --- ----- --------------------- - - -X - - -
X
----------------
SOUTH AFRICA
----------------
SPAIN
--- --- --- ----- ---------------------
X
PGC (L)
- - -X - - -
----- --------------------- - - - X- - -
X
----------------
SWITZERLAND
--- --- ---
----------------
THAILAND
--- --- ---
X
----- ---------------------
ED FAS 6 (P)
- - - - X- -
----------------
UNITED KINGDOM
--- --- ---X ----- ---------------------
X
CA 198l(L); SSAP 9(P)

- - - - -X -
----------------
UNITED STATES
--- --- --- ----- ---------------------
ARB 43 (P)
- - -X - - -
--- --- --- ----- --------------------- - - -X - - -
X
----------------
URUGUAY
--- --- --- ----- --------------------- -X - - - - -
X
----------------
ZAMBIA lAS 2 (P)
----------------
ZIMBABWE
--- ---
X
--- ----- ---------------------
lAS 2 (P)
- - - -X - -
---------------- --- --- --- ----- --------------------- - - - - - -
X
60 IBCOHE ABD ASSET MEASUREHERT
3.3(d) Cost refers to actual cost for each item of inventory

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- --- 1--------------------- - - - - - -
ARGENTINA X NA
----------------
----------------
BELGIUM X RD (L) 0
----------------
BRAZIL X RIR (L) NA
----------------
SSAP 9 (P) - 0
----------------
CHILE X TB 1 (P) 0
----------------
COLOMBIA X NIPA (P) 0
----------------
DENMARK X 0
----------------
FINLAND X AL (L) 0
----------------
FRANCE X PCG 1957 (L) 0
----------------
GERMANY X SCL (L) N X
----------------
----------------
----------------
IRELAND X SSAP 9 (P) N 0
----------------
ITALY X ---------------------
PC 3 (P) 0
----------------
JAPAN X CC (L); BAP (L) X
----------------
MALAYSIA X IAS 2 (P) N X
----------------
----------------
----------------
----------------
PORTUGAL X
---------------------
DL (L) - X
----------------
SOUTH AFRICA X X
----------------
SPAIN X PGC (L) X
----------------
SWITZERLAND X X
----------------
----------------
UNITED KINGDOM X SSAP 9 (P) N X
----------------
UNITED STATES X ---------------------
ARB 43 (P) - X
----------------
URUGUAY X 0
----------------
ZAMBIA X IAS 2 (P) X
----------------
ZIMBABWE X IAS 2 (P) X
----------------
IIICOME ABD ASSE'l MEASUREHEHT 61
3.3(e) Cost refers to replacement cost

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X RES 148 (P) NA

----------------
AUSTRALIA X ---------------------
AAS 2 (P) 0
----------------
BELGIUM X ---------------------
RD (L) X
----------------
BRAZIL X ---------------------
RIR (L) NA
----------------
----------------
CHILE X ---------------------
TAX LAW (L) X
----------------
COLOMBIA
--- --- X ---------------------
NIPA (P)
----------------
DENMARK
--- --- X ---------------------
FSR (P)
0
0
----------------
FINLAND
--- --- X ---------------------
AL (L) 0
----------------
FRANCE X ---------------------
PCG 1957 (L) 0
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG
--- --- --- X ---------------------
SSAP 115 (P)
- - - -
----------------
INDONESIA
--- --- --- X ---------------------
PAl 3 (P)
- - - - - 0
----------------
IRELAND
--- --- --- X ---------------------
SSAP 9 (P)
- - - - -
0
----------------
ITALY
--- --- X ---------------------
PC 3 (P)
- - - - - 0
----------------
JAPAN
--- --- --- X ---------------------
cc (L); BAP (L) - - - - -
0
0
----------------
MALAYSIA
--- --- X ---------------------
lAS 2 (P)
- - - - X
----------------
MEXICO X ---------------------
IMCP C-4 (P)
- - - - - X
----------------
NEW ZEALAND
--- --- X ---------------------
SSAP 4 (P) NA
----------------
PHILIPPINES
--- --- X ---------------------
APB 7 {P) 0
----------------
PORTUGAL X ---------------------
DL (L)
----------------
SOUTH AFRICA
--- --- X --------------------- X
0
----------------
SPAIN
--- --- X ---------------------
PGC (L)
-- -- 0
----------------
SWITZERLAND
--- --- X --------------------- - - - - - 0
----------------
THAILAND
--- --- X ---------------------
ED FAS 6 (P)
-- - - - X
----------------
UNITED KINGDOM
--- --- --- X ---------------------
SSAP 9 (P)
- -- --
0
----------------
UNITED STATES X ---------------------
ARB 43 (P) N X
----------------
URUGUAY
--- --- X --------------------- X
----------------
ZAMBIA
--- --- X ---------------------
lAS 2 {P)
- - - -
----------------
ZIMBABWE
--- --- X ---------------------
TAX LAW {L)
- - - - -
0
--------------------- - - - - -
0
---------------- --- --- ---
62 DICOME AIID ASSEI MEASUR.EMERT
3.3(£) Cost should be determined on some other basis

PRACTICE
H.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
BELGIUM X RD (L) 0
BRAZIL X RIR (L) N A
CHANNEL ISLANDS X X
CHILE X X
DENMARK X ---------------------
FSR (P)
FINLAND
--- --- X ---------------------
AL (L) - ---
0
0
FRANCE X X
GERMANY X
--- ---
X
HONG KONG X 0
INDONESIA
--- --- X X
IRELAND X
--- ---
X
ITALY X 0
JAPAN
--- --- X X
MALAYSIA X 0
MEXICO X IMCP C-4 (P) 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X X
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X X
UNITED KINGDOM X X
-~-----~---~----
UNITED STATES X ARB 43 (P) N X
URUGUAY X ---------------------
AIC (P) 0
ZAMBIA X 0
ZIMBABWE X 0
IICOIIE ABD ASSET IIEASUREIIEBT 63
3.4(a) Market value is estimated selling price less estimated costs

of completion and disposal

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m 1!1 m
u e l. i
i n t t
r d t t
d d d d ABCDEF
-- -- - - - 1------------- ------
ARGENTINA X N A
AUSTRALIA X AAS 2 (P) 0
BELGIUM X N A
CHILE X TB 1 (P) 0
COLOMBIA X NIPA (P) N A
DENMARK X 0
FINLAND X AL (L) X
FRANCE X 0
GERMANY X SCL (L) X
----------------
INDONESIA --- ---
X --- ----- ---------------------
PAl 3 (P) - - - - - -0
ITALY X PC 3 (P) N X
JAPAN X BAP (L) X
MEXICO X IMCP C-4 (P) NA
----------------
NEW ZEALAND ---
X --- --- ----- ---------------------
SSAP 4 (P) - - -N A- - -
PHILIPPINES X APB 7 (P) 0
----------------
PORTUGAL X ---------------------
--- --- --- ----- DL (L) - A- - -
N
SOUTH AFRICA X NA
SPAIN X PGC (L) N 0
SWITZERLAND X X
THAILAND X X
UNITED KINGDOM X CA 198l(L);SSAP 9(P) X
----------------
UNITED STATES --- --- --- -----
X ---------------------
ARB 43 (P) - - - - - -0
URUGUAY X N A
ZAMBIA lAS 2 (P)
---
X
----------------
X
ZIMBABWE X --- --- ----- ---~-----------------
lAS 2 (P) -
X
----------------1---1---1--- ----- --------------------- - - - - - -
64 DCOME AIID ASSET MEASUREMEI"''
3.4(b) Market value is estimated selling price less estimated

costs of completion and disposal and normal profit margin

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- ---·---------- --- - - - --
ARGENTINA X GAAP (P) N N A
----------------
AUSTRALIA X ---------------------
AAS 2 (P) 0
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL ---------------------
LAW 6.404 (L) N NA
--------------------- -
X
----------------
CHANNEL ISLANDS 0
-
X
----------------
CHILE X ---------------------
TB 1 (P) 0
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X ---------------------
FSR (P) 0
----------------
FINLAND X ---------------------
AL (L) X
----------------
FRANCE X ---------------------
PCG 1957 (L) X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X ---------------------
SSAP 115 (P) X
----------------
INDONESIA ---------------------
PAl 3 (P)
- 0
X
----------------
IRELAND X ---------------------
SSAP 9 (P) 0
----------------
ITALY X --------------------- X
----------------
JAPAN X
---------------------
BAP (L) X
----------------
MALAYSIA X
---------------------
lAS 2 (P) 0
----------------
MEXICO X ---------------------
IMCP C-4 (P) NA
----------------
NEW ZEALAND X ---------------------
SSAP 4 (P) NA
----------------
PHILIPPINES X ---------------------
APB 7 (P) 0
----------------
PORTUGAL ---------------------
DL (L) NA
--------------------- -
X
----------------
SOUTH AFRICA NA
--------------------- -
X
----------------
SPAIN X X
----------------
SWITZERLAND X
--------------------- X
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------
SSAP 9 (P) 0
----------------
UNITED STATES X ---------------------
ARB 43 (P) 0
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X
---------------------
lAS 2 (P) 0
---------------- ---------------------
IRCOIIE Aim ASSET IIEASUREHERT 65
3.4(c) Market value is replacement cost

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X GAAP (P) N NA

----------------
AUSTRALIA X ---------------------
AAS 2 (P) 0
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) N NA
----------------
--------------------- X - - - -
0
----------------
CHILE X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X ---------------------
----------------
FINLAND X ---------------------
AL (L) 0
----------------
FRANCE X --------------------- X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X ---------------------
SSAP 115 (P) 0
-----~----------
INDONESIA X ---------------------
PAl 3 (P) 0
----------------
IRELAND X ---------------------
SSAP 9 (P) 0
----------------
ITALY X ---------------------
PC 3 (P) N X
----------------
JAPAN X ---------------------
BAP (L) X
----------------
MALAYSIA X ---------------------
lAS 2 (P) 0
----------------
MEXICO X ---------------------
IMCP C-4 (P) NA
----------------
NEW ZEALAND X ---------------------
SSAP 4 (P) NA
----------------
PHILIPPINES X ---------------------
APB 7 (P) N X
--------~-------
PORTUGAL X ---------------------
DL (L) NA
----------------
SOUTH AFRICA
--- --- X --------------------- NA
-------~--------
SPAIN X ---------------------
PGC (L) N X
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- X
-------~--------
UNITED KINGDOM X ---------------------
SSAP 9 (P)
-----------~----
UNITED STATES X
--- --- -~~------------------
ARB 43 (P) NX
0
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS 2 (P) 0
----------------
ZIMBABWE X ---~-----------------
lAS 2 (P) 0
---------------- ---------------------
66 IIICOME AID ASSET DASUB.EMERT
3.4(d) Market value is defined in some other way

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
BELGIUM X N A
BRAZIL
--- --- X LAW 6.404 (L) NA
CHANNEL ISLANDS
-- - - 0
X X
CHILE X
COLOMBIA X NA
DENMARK FSR (P)
-- - - 0
X 0
FINLAND X ---------------------
AL (L)
FRANCE X X
GERMANY SCL (L)
HONG KONG
--- --- --- X
---------------------
SSAP 115 (P)
X
--- --- ---

X X
INDONESIA X ---------------------
PAl 3 (P) 0
ITALY X PC 3 (P) X
JAPAN X 0
MALAYSIA X lAS 2 (P) 0
MEXICO X ---------------------
IMCP C-4 (P) NA
PHILIPPINES X N A
PORTUGAL X NA
SOUTH AFRICA X NA
SPAIN X X
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X SSAP 9 (P) X
UNITED STATES X
---------------------
ARB 43 (P) 0
URUGUAY X NA
ZIMBABWE lAS 2 (P)

_,_
~I
IBCOME ABD ASSE'I MEASUREMENT 67
3.5(a) Where inventory is valued at lower of cost and market value,

the comparison should be between total cost and total market
value

PRACTICE
R --.-·-- -------------------
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e l. i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
-----
ARGENTINA X NA
AUSTRALIA X ---------------------
AAS 2 (P) X
BELGIUM X ---------------------
RD (L) 0
BRAZIL X --------------------- NA
-----~-~-------------
CHANNEL ISLANDS X 0
------~--------------
CHILE X X
COLOMBIA X --------------------- X
DENMARK X --------------------- X
FINLAND X ---------------------
AL (L)
- - - - 0
FRANCE
--- --- X --------------------- - - - - - 0
GERMANY X ---------------------
SCL (L)
---- -0
HONG KONG X ---------------------
SSAP 115 (P) 0
INDONESIA X ---------------------
PAl 3 (P) 0
~-------~-~----------
IRELAND X SSAP 9 (P)
ITALY
--- --- X ---------------------
PC 3 (P)
-- - - - 00
JAPAN X -----·---------------
BAP (L) 0
~--------------------
HEX ICO
--- --- X ---------------------
IMCP C-4 (P)
--- ---
0
---~-----------------
PHILIPPINES X ---------------------
APB 7 (P) X
PORTUGAL X ---------------------
DL (L) 0
SOUTH AFRICA X ---------------------
CA 1973 (L) 0
SPAIN X --------------------- 0
SWITZERLAND X ---------------------
IH (P) 0
-~-------------------
--- --- ---------------------
UNITED KINGDOM X CA 1981(1); SSAP 9(P) 0
UNITED STATES X ---------------------
ARB 43 (P) X
URUGUAY X --------------------- X
ZAMBIA X ---------------------
lAS 2 (P) 0
ZIMBABWE X ---------------------
lAS 2 (P) X
---------------------
68 IBCOME Aim ASSET MEASUltEMDIT
3. S(b) Where inventory is valued at the lower of cost and market

value, the comparison s.hou1d be made separately for each
-- -
_
__.. _______
item of inventory (or for groups of similar items)

PRACTICE
R
.e
c p N p
R 0 e o e
e m r t r Treatment
q m m m Disclosed
u e i i
i n t t
r d t t
d d d d ABCDEF
- - - - - - - - -- -- - - --- ------------ - - - - - -
ARGENTINA X N A
BELGIUM X RD (L) X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X TB 1 (P) 0
COLOMBIA X NIPA (P) X
FSR (P)
-
DENMARK
--- --- -----
X X
----------------
FINLAND
---
X
-------~-------------
AL (L) X
FRANCE X 0
GERMANY X X
HONG KONG SSAP 115 (P) 0

--- --- --- ----- ---------------------
X
----------------
INDONESIA X PAI 3 (P)
- 0
--- ----- . -PC.. ---- -- .... ----------

SSAP 9 (P) 0
----------------
IRELAND
ITALY
X
---·' ~---
X 3 (P) X
JAPAN X BAP (L) X
MALAYSIA X IAS 2 (P) 0

HEXICO X IMCP C-4 (P) 0
--------------- --- --- ----- .. ----------------- - -

...
PORTUGAL
--- X
---..---
DL (L) 0
SPAIN X 0
SWITZERLAND X 0
THAILAND
----------------
UNITED KINGDOM
---
X
--- --- ----- ---CA-··-...----------------
X ED FAS 6 (P)
1981(L); SSAP 9(P)
-- X
0
UNITED STATES X ARB 43 (P) 0
URUGUAY X 0
ZIMBABWE IAS 2 (P)
---------------- --- --- --- ----- --------------------- - -
X X
IBCOIIE AIID ASSE'l IIEASUREIIEB'f 69
DISCLOSURE
3.6 The total for inventories should be analysed by type (see

Notes for details)

PRACTICE
H.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
- - - -- - - - - - -
ARGENTINA X LAW 19550 (L) NA
----------------
AUSTRALIA
---
X
--- --- ----- --------------------- - -X - - - -
CA (L)
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
- -X - - - -
----------------
BRAZIL
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
CHANNELISLANDS
--- ---
X
--- ----- ---------------------
SSAP 9 (P)
-I -I -II -IX- -
----------------
CHILE
---
X
--- --- ----- ---------------------
c 86 (L)
- X- - - - -
----------------
COLOMBIA
--- ---
X
--- ----- --------------------- - - - X- - -
----------------
DENMARK
--- --- ---·
X
·----- --------------------- - - - -X - -
----------------
FINLAND
---
X
--- --- ----- ---------------------
AL (L)
-X - - - - -
----------------
FRANCE
---
X
--- --- ----- ---------------------
PCG 1957 (L)
- - - -X - -
----------------
GERMANY
---
X
--- --- ----- ---------------------
SCL (L)
-X - - - - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
SSAP 115 (P)
-- ----
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM 4 (L)
- - -X - - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 9 (P)
- X- - - - -
----------------
ITALY
--- ---
X
--- ----- ---------------------
PC 3 (P)
- - -X - - -
----------------
JAPAN
---
X
--- --- ----- ---------------------
FSR (L)
- -X - - - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 2 (P)
- X- - - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP C-4 (P)
- X- - - - -
----------------
NE.W ZEALAND
---
X
--- --- ----- ---------------------
SSAP 4 (P)
- - N- A- - -
----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
SEC RULE (L)
-X - - - - -
----------------
PORTUGAL
---
X
--- --- ----- ---------------------
DL (L)
-X - - - - -
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L)
- X- - - - -
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - X- -
----------------
THAILAND
---
X
--- --- ----- ---------------------
ED FAS 6 (P)
- X- - - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA 1981 (L); SSAP 9(P)
- -X - - - -
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
SEC RULE sx (L)
-X - - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- -X - - - - -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 2 (P)
-X - - - - -
----------------1---~---1---1----- --------------------- - -X - - - -
:!~~!~--------1-~- ---1---1-----1-!~~-:-~:2 ___________ - - - - - -
70 IRCOME Aim ASSET IIEASUB.EMERT
3.7 If different methods of measurement have been used, the

financial report should disclose how much of the total has been
measured by each method

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHILE X C 86 (L) X
COLOMBIA X
DENMARK
--- --- X
0
--- ---
0
FINLAND X 0
FRANCE X X
GERMANY X SCL (L)
----X
HONG KONG X SSAP 115 (P)
- --- X
INDONESIA X BAPEPAM 4 (L) NA
IRELAND X X
ITALY X PC 3 (P) X
JAPAN X ---------------------
FSR (L) X
MALAYSIA X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X DL (L) 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X 0
THAILAND X ED FAS 6 (P) 0
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X DN (L) X
ZAMBIA X X
ZIMBABWE X X
IBCOME .ABD ASSE'l KEASUB.EIIERT 71
3.8 The accounting policy for inventories should be disclosed

PRACTICE
R
e
c p N p
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
- - - - - -------------------------
ARGENTINA X LAW 19550 (L)
---
N A
----------------
AUSTRALIA X
--- --- ----- ---------------------
AAS 2 (P)
- X- - - - -
BELGIUM X RD (L) X
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
S SAP 2 & 9 ( P)
-X - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
C 86 (L); TB 6 {P)
- -X - - - -
COLOMBIA X X
DENMARK X FSR (P) X
----------------
FINLAND
--- --- ---
X
----- ---------------------
AL (L)
- - - -X - -
FRANCE X X
GERMANY X SCL (L) X
HONG KONG X SSAP 105; 115 (P) X
INDONESIA X BAPEPAM 2 ( L) X
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 2 & 9 {P)
-X - -
X --- --- ----- ---------------------
----------------
JAPAN --- FSR (L) X

PHILIPPINES X SEC RULE (L) X
----------------
PORTUGAL
---
X
--- --- ----- ---------------------
DL ( L) X
SPAIN X PGC (L) X
SWITZERLAND X X
UNITED KINGDOM X CA 1981(L);SSAP2&9(P) X
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
ARB 43 (P)
- - - - - -
X
URUGUAY X DN (L) X
72 DICOME Aim ASSET IIEASUREMERT
3.9 The disclosure requirements only apply when the amount is

material

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
-- -- - -- - -- - - -
----------------
X
---X -----
--- --- - -N A- - -
--------------------- -
AUSTRALIA
---------------- ---X -----
--- ---
AAS 2 (P)
- - -N A- - -
---------------------N
BELGIUM
---------------- --- --- ---X ----- --------------------- - - N- A- - -
----- --------------------- - - -N A- - -
BRAZIL
---------------- --- --- ---
- - -N A- - -
CHANNEL ISLANDS
--- ----- ---------------------
X
----------------
CHILE
--- --- c 86 (L); TB 1&6 (P)
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
NIPA (P)
- - N- A- - -
---------------- --- ---
X
--- ----- --------------------- - - N- A- - -
- - -N A- - -
DENMARK FSR (P)
---------------- --- --- ---
X
----- ---------------------
FINLAND
----------------
FRANCE
--- --- ---X ----- --------------------- - - -N A- - -
X AL (L)
---------------- --- --- --- ----- ---------------------

SCL (L)
- - -N A- - -
- - -N A- - -
GERMANY
----------------
HONG KONG
--- --- --- ----- ---------------------
X
SSAP 115 (P)
----------------
INDONESIA
--- --- --- -----
X
---------------------
BAPEPAM 2 (L)
- - N- A- - -
----------------
IRELAND
--- --- --- ----- ---------------------
X
SSAP 9 (P)
- - -N A- - -
----- --------------------- - - N- A- - -
X
---------------- --- --- ---
- - -N A- - -
ITALY CIVIL CODE (L)
----------------
JAPAN
--- --- ---
X
----- ---------------------
FSR (L)
---------------- --- --- ---
X
----- --------------------- - - N- A- - -
- - -N -A - -
MALAYSIA lAS 1 (P)
--- -----
X
---------------- --- --- ---------------------
MEXICO
---------------- --- --- ---
X
-----
IMCP C-4 (P)
--------------------- - - -N -A - -
- - -N A- - -
NEW ZEALAND
--- --- -----
X
----------------
PHILIPPINES
--- ---------------------
SEC RULE (L)
---------------- --- --- ---
X
----- ---------------------
DL (L)
- - -N A- - -
PORTUGAL
---------------- --- --- --- -----
X
---------------------
CA 1973 (L)
- - -N A- - -
SOUTH AFRICA
--- --- --- ----- - - -N A- - -
X
----------------
SPAIN ---------------------
PGC (L)
--- ----- - - N- A- - -
X
----------------
SWITZERLAND
--- --- ---------------------
--- ----- --------------------- - - N- A- - -
X
---------------- --- ---
- - -N A- - -
THAILAND
----------------
UNITED KINGDOM
--- --- ---X ----- ---------------------
X
CA 198l(L);SSAP 9(P)
----------------
UNITED STATES
--- --- --- ----- --------------------- - - N- -A - -
----------------
URUGUAY
--- ---
X
--- ----- --------------------- - - N- A- - -
----------------
ZAMBIA
--- --- ---X ----- ---------------------
X
lAS 1 (P)
- - -N A- - -
----------------
ZIMBABWE
--- --- --- ----- ---------------------
lAS 1 (P)
- - N- A- - -
---- - -
X
---------------- --- --- --- ----- ---------------------
IBCOME ARD ASSET MEASUR.EIIEIT 73
IRVEITOIIES (long-term work-in-progress) - HEASUR.EMERT

3.10(a) Profits on long-term contracts should be recognised on
completion of the contract

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- - -1-------------- -------
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X SSAP 9 (P) N NA
CHILE X N A
COLOMBIA X TA (L) N A
DENMARK X X
FINLAND X AL (L) X
FRANCE CNCC ( P)
--- --- --- ----- --------------------- ---
X X
----------------
GERMANY X SCL (L) X
INDONESIA X PAl 2 (P) N A
--- --- --- ----- ---------------------
X 0
----------------
JAPAN X BAP (L) - X
MEXICO X X
PHILIPPINES X NIRC (L) X
PORTUGAL X DL (L) NA
SOUTH AFRICA X CA 197 3 (L) X
----------------
SPAIN X ----- ---------------------
--- --- --- PGC/S (L) X
SWITZERLAND X X
THAILAND X ED FAS 20 (P) N A
UNITED KINGDOM X CA 1981(1) SSAP 9(P)N X
-----~----------
UNITED STATES X --- ----- ---------------------
--- --- ARB 45 (P) N- - - X
-- -
URUGUAY X N A
ZAMBIA X lAS 11 (P) NA
~~~~~~========1===1===1=~=1=====1=~~=~~=~!2========== =- - - ~-
74 IBCOME AI1D ASSE'l IIEASUB.EHDT
3.10(b) Profits on long-term contracts should be recognised on a

"percentage of estimated profit" basis (depending on the
degree of completion of the contract)

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- - -- - - -- - -
ARGENTINA
----------------
AUSTRALIA
--- --- ---X ----- --------------------- - - - -X - -
X GAAP (P) NA
----------------
BELGIUM
--- --- ---X ----- --------------------- - X- - - - -
----------------
BRAZIL
--- --- --- ----- --------------------- - - -N A- - -
--- --- --- ----- --------------------- - - N- A- - -
X
----------------
CHANNEL ISLANDS SSAP 9 (P)
--- --- --- ----- --------------------- - - -N A- - -
X
----------------
CHILE
--- --- --- ----- --------------------- - - N- A- - -
X
----------------
COLOMBIA
----------------
DENMARK
--- --- ---
X
----- --------------------- - - - -X - -
----------------
FINLAND
--- --- --- -----
X
---------------------
AL (L)
- - - - - -0
--- --- ---X ----- --------------------- - - X- - - -
X
----------------
FRANCE CNCC (P)
----------------
GERMANY
--- --- --- ----- ---------------------
SCL (L)
- - - - - -0
--- --- ----- --------------------- - - - -X - -
X
----------------
HONG KONG
--- SSAP 115 (P)
---------------- --- ---
X
--- ----- ---------------------
PAl 2 (P)
- - -N A- - -
-X - - - - -
INDONESIA
--- --- ----- ---------------------
X
----------------
IRELAND
--- SSAP 9 (P)
----------------
ITALY
X
--- --- --- ----- ---------------------
CIVIL CODE (L)
-X - - - - -
----- --------------------- - - - - -X -
X
----------------
JAPAN
--- --- --- BAP (L)
--- --- ---X ----- --------------------- - - X- - - -
X
----------------
MALAYSIA lAS 11 (P)
----------------
MEXICO
--- --- --- ----- --------------------- - - - - - -0
----------------
NEW ZEALAND
--- --- --- ----- ---------------------
X
SSAP 14 (P)
- - N- A- - -
--- --- --- ----- --------------------- - -X - - - -
X
----------------
PHILIPPINES NIRC (L)
--- --- ---X ----- --------------------- - - -N A- - -
X
----------------
- - - -X - -
PORTUGAL DL (L)
----------------
SOUTH AFRICA
--- --- ---X ----- ---------------------
CA 1973 (L)
---------------- --- --- --- ----- --------------------- - - - - - -0
SPAIN PGC/S (L)
----------------
SWITZERLAND
--- --- ---X ----- --------------------- - - - - - -0
X
----------------
THAILAND
--- --- ---X ----- ---------------------
ED FAS 20 (P)
- - -N A- - -
----------------
UNITED KINGDOM
--- --- --- ----- ----~----------------
- - -X - - -
----------------
UNITED STATES
--- ---
X
--- ----- ---------------------
ARB 45 (P)
--- -- -
N X
--- --- --- ----- --------------------- - - -N A- - -
X
----------------
- - -N A- - -
URUGUAY
----------------
ZAMBIA
--- --- ---X ----- ---------------------
X
lAS 11 (P)
---------------- I--- --- --- ----- --------------------- - - - - - -
---------------- --- --- _:_, _____ ,_:~_!!_~~2----------1-l!l-1-1-1-1
ZIMBABWE
DCOIIE Aim ASSET IIEASUB.EIIENT 75
3.11 Foreseeable losses over the duration of a contract should be

provided for in full

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
-- -- -- --- - - - - - -
----------------
AUSTRALIA X
----------------
CA (L) ----- X
----------------
BELGIUM X
----------------
RD (L) ----- X
----------------
BRAZIL X CFC 530/81 (L) -----
---------------- NA
----------------
CHANNEL ISLANDS X ----------------
SSAP 9 (P) ----- NA
----------------
CHILE X ----------------
TB 6 (P) ----- NA
----------------
COLOMBIA X --------------------- NA
----------------
DENMARK X ----------------
FSR (P) ----- X
---------------
FINLAND - X --------------------- X
----------------
FRANCE X CNCC (P); OECCA-----
---------------- (P) X
----------------
GERMANY X
----------------
SCL (L) ----- X
----------------
HONG KONG X
----------------
SSAP 115 (P) ----- X
----------------
INDONESIA X
----------------
PAl 2 (P) ----- NA
----------------
IRELAND X
----------------
SSAP 9 (P) ----- X
----------------
ITALY X CIVIL CODE (L) -----
---------------- X
----------------
JAPAN X
--------------------- X
----------------
MALAYSIA X
----------------
lAS 11 (P) ----- X
----------------
MEXICO X IMCP C-12 (P) -----
---------------- 0
----------------
NEW ZEALAND X
----------------
SSAP 14 (P) ----- NA
----------------
PHILIPPINES X
--~-------------·-----
X
----------------
PORTUGAL X ----------------
DL (L) ----- NA
----------------
SOUTH AFRICA X
--------------------- X
----------------
SPAIN X
----------------
PGC (L) ----- X
---------------
SWITZERLAND - X
--------------------- X
---------------
THAILAND - X ED FAS 20 (P) -----
---------------- NA
----------------
UNITED KINGDOM X
---------------- -----
CA 1981 (L) ;SSAP 9(P) X
----------------
UNITED STATES X
----------------
ARB 45 (P) ----- X
-----------~---
URUGUAY X --------------------- NA
----------------
ZAMBIA X
----------------
IAS 11 (P) ----- NA
----------------
ZIMBABWE X
----------------
IAS 11 (P) ----- X
---------------- ---------------------
76 IIICOIIE MD .ASSE'.r IIEASUR.EMDT
3.12(a) All progress payments should be deducted from the value of

long-term work-in-progress

PRACTICE
1{
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- -- --- - - - - - -
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X
---------------------
LAW 6.404 (L) NA
----------------
SSAP 9 {P) NA
---------~------
CHILE X ---------------------
----------------
COLOMBIA X ---------------------
TA NA
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
AL (L) 0
----------------
FRANCE X --------------------- X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X ---------------------
SSAP 115 (P) X
----------------
INDONESIA X -~-------------------
NA
----------------
IRELAND X ---------------------
SSAP 9 (P) X
----------------
ITALY X ---------------------
CIVIL CODE (L) 0
----------------
JAPAN X
--------------------- 0
----------------
MALAYSIA X
---------------------
lAS 11 (P) X
----------------
MEXICO X ---~-----------------
0
----------------
NEW ZEALAND X ---------------------
SSAP 14 (P) NA
----------------
PHILIPPINES X --~------------------
PICPA {P) X
----------------
PORTUGAL X ---------------------
DL (L) NA
----------------
SOUTH AFRICA X
--------------------- X
-------~--------
SPAIN X
---------------------
PGC (L) 0
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
ED FAS 20 {P) NA
----------------
UNITED KINGDOM X
----~----------------
CA 198l(L); SSAP 9(P) X
-~--------------
UNITED STATES X ---------------------
ARB 45 {P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS 11 {P) NA
----------------
ZIMBABWE X
---------------------
lAS 11 (P) X
---------------- ---------------------
IBCOME ABD ASSET MEASUB.EIIElft 77
3.12(b) All progress payments should be included in current

liabilities

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X X
BRAZIL X LAW 6 .404 (L) N A

CHANNEL ISLANDS X N A
X
CHILE
--- --- X TA (L) N A
COLOMBIA
--- --- X
DENMARK
FINLAND X
X
AL (L) X
-- - -
FRANCE X CNCC (P) X
GERMANY X SCL (L) 0
INDONESIA X
---------------------
PAl 2 (P) N A
---------------------
ITALY
JAPAN
X
X
CIVIL CODE (L) X
X
--- -
YJ.ALAYSIA X lAS 11 {P) X
MEXICO X 0

PHILIPPINES
--- --- X PICPA {P) 0
PORTUGAL X ---------------------
DL (L) N A
SOUTH AFRICA X X
SPAIN X --------------------- X
X --------------------- X
SWITZERLAND
--- --- X ---------------------
ED FAS 20 (P) N A
--- ---
THAILAND
UNITED KINGDOM X ---------------------
SSAP 9 (P) 0
UNITED STATES X ---------------------
ARB 45 (P) 0
URUGUAY X --------------------- N A
ZAMBIA X ---------------------
lAS 11 (P) N A
----------------
ZIMBABWE X -!~_!!_1!2 __________ -1-1-1-1-1~1
78 IBCOIIE Aim ASSE'r IIEASUR.EMERT
3.12(c) Progress payments should only be included in current

liabilities to the extent that they exceed costs incurred

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X ---------------------
LAW 6.404 (L) NA
CHANNEL ISLANDS X
--------------------- NA
CHILE X ---------------------
COLOMBIA X ---------------------
TA (L) NA
DENMARK ---------------------
- - 0
X
FINLAND X ---------------------
AL (L)
- - - 0
FRANCE X --------------------- X
GERMANY X ---------------------
SCL (L) X
HONG KONG X ---------------------
SSAP 115 (P)
- - - -
0
INDONESIA --------------------- NA
--------------------- - -
X
IRELAND X 0
ITALY X ---------------------
CIVIL CODE (L) 0
JAPAN ---------------------
MALAYSIA
--- --- X
---------------------
IAS 11 (P)
- - - - X
MEXICO
--- --- X
X
0
--------------------- - - - - - 0
NEW ZEALAND X --------------------- NA
PHILIPPINES X ---------------------
PI CPA (P) X
PORTUGAL X --------------------- NA
SOUTH AFRICA X --------------------- 0
SPAIN X --------------------- 0
SWITZERLAND X --------------------- 0
THAILAND X --------------------- NA
UNITED KINGDOM X ---------------------
CA 1981 (L) X
UNITED STATES X ---------------------
ARB 45 (P) X
URUGUAY X
--------------------- NA
ZAMBIA
--- --- ---------------------
IAS 11 (P)
X NA
ZIMBABWE
--- --- ---------------------
IAS 11 (P)
--- --- X
--------------------- - - - - -
0
IBCOIIE Aim ASSET MEASUREMENT 79
DISCLOSURE
3.13(a) Long-term work-in-progress should be disclosed even if the
total is not material

PRACTICE
R
e
c p N p
R 0 e 0 e Not
e m r t r applicable
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X N A
BELGIUM X N N A
BRAZIL X N A
CHILE X C 86 (L) N A
COLOMBIA X
---------------------
NIPA (P) N A
DENMARK X FSR (P) N A
FINLAND X N A
FRANCE X PCG 1957 (L) N A
GERMANY ---------------------
SCL (L)
HONG KONG
--- --- X
X
N A
N A
INDONESIA X BAPEPAM 2 (L) N A
IRELAND X SSAP 9 (P) N A
ITALY X ---------------------
CIVIL CODE (L) NA
JAPAN X N A
MALAYSIA X lAS 11 {P) N A
MEXICO X N A
NEW ZEALAND X N A
PHILIPPINES X NA
PORTUGAL X DL (L) N A
SOUTH AFRICA
SPAIN
--- --- X N A
SWITZERLAND
--- --- X N A
THAILAND
--- --- X
X
N A
N A
UNITED KINGDOM X CA 1981(1); SSAP 9(P) N A
UNITED STATES NA
URUGUAY
--- --- X
X DN (L)
--- ---
N A
ZAMBIA X lAS 11 (P) N A
ZIMBABWE X ---------------------
lAS 11 (P) N A
80 IWCOIIE Aim ASSET IIEASUilKMERT
3.13(b) Long-term work-in-progress should be disclosed if the

total is material

PRACTICE
R.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
-- -- -- --- - - - - - -
ARGENTINA
----------------
AUSTRALIA
X
--- --- ---
X
----- --------------------- - -
NA
-
- -X -
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
- - - - - -X
---------------- --- --- ---X ----- --------------------- - - -N A- - -
- - -N A- - -
BRAZIL
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
SSAP 9 (P)
----------------
CHILE
---
X
--- --- ----- ---------------------
c 86 (L)
-X - - - - -
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
NIPA (P)
- - -N A- - -
----------------
DENMARK
--- ---
X
--- ----- ---------------------
FSR (P)
-X - - - - -
----------------
FINLAND
--- ---
X
--- ----- ---------------------
AL (L)
-X - - - - -
----------------
FRANCE
---
X
--- --- ----- ---------------------
PCG 1957 (L)
- - X- - - -
----------------
GERMANY
--- ---
X
--- ----- ---------------------
SCL (L)
- - - X- - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
SSAP 115 (P)
- - - - - 0-
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM 2 (L)
- - -N A- - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 9 (P)
-X - - - - -
----------------
ITALY
--- ---
X
--- ----- ---------------------
PC 1 (P)
- -X - - - -
---------------- --- --- --- ----- --------------------- - -X - - - -
-X - - - - -
JAPAN X
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 11 (P)
----------------
MEXICO
--- --- ---
X
----- --------------------- - - - - - -0
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 14 (P)
- - -N A- - -
----------------
PHILIPPINES
--- --- ---X ----- --------------------- - -X - - - -
---------------- --- --- --- ----- --------------------- - - N- A- - -
-X - - - - -
PORTUGAL X DL (L)
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L)
- - - - -X -
----------------
SWITZERLAND
--- --- ---X ----- --------------------- - - - - -X -
---------------- ---
THAILAND X
--- --- ----- ---------------------
ED FAS 20 (P)
- - -N A- - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA 1981 (L) ;SSAP 9(P)N
- X- - - - -
----------~----- --- --- --- ----- ------------~-------- - - - - - -
UNITED STATES
----------------
URUGUAY
-- --
X
--- ----- AI CPA (P)
---------------------
N
- - -
X
- --
------~-------- --- --- --- ----- --------------------- - - - - - -
X DN (L) NA
----------------
ZIMBABWE
---
X
--- --- ---- -------------·--------
lAS 11 (P)
-
X
- - ---
---------------- --- --- --- ----- --------------------- - - - - - -
IBCOHE Aim ASSET IIEASlJB.EMEliiT 81
3.14 The amount of provisions for foreseeable losses should be

disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X ---------------------
CA (L) X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X SSAP 9 (P) N A
CHILE X TB 6 (P) 0
COLOMBIA X ---------------------
NIPA (P) N A
DENMARK X 0
FINLAND X
FRANCE X 0
GERMANY X SCL (L) 0
HONG KONG X X
INDONESIA
IRELAND
--- --- X
X SSAP 9 (P)
N A
0
ITALY X ---------------------
CIVIL CODE (L) - - --X
JAPAN X X
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
SOUTH AFRICA X X
SPAIN X PGC (L) 0
SWITZERLAND X 0
THAILAND X N A
UNITED KINGDOM X CA 1981(1); SSAP 9(P) X
UNITED STATES X X
URUGUAY X DN (L) N A
ZAMBIA X lAS 11 (P)
----------------1---l---l---l-----l--------------------- - - - - -
82 IBCOIIE Aim ASSE'l' IIEASUREMERT
3.15 The accounting policy for long-term work-in-progress should

be disclosed

PRACTICE
R
e
c p N p
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
- - - -- ---------------
BELGIUM X RD (L) X

S SAP 2 & 9 ( P) N A
- - - - - -0
CHANNEL ISLANDS X
----------------
CHILE
--- ---
X
--- ----- ---------------------
C 86 (L) ; TB 6 (P)
NIPA (P) N A
-X - - - - -
COLOMBIA X
----------------
DENMARK
--- ---
X
--- ----- ---------------------
FSR ( P)
FINLAND X 0
FRANCE X COB (S) X
GERMANY X SCL (L) X
HONG KONG X SSAP ll5 (P) X
INDONESIA X PAl 2 (P) N A
IRELAND X SSAP 2 & 9 (P) X
JAPAN X X
IMCP D-5 (P) X

- - N- -A
MEXICO X
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 1 (P)
SEC RULE (L) X
- - N- A- - -
PHILIPPINES X
----------------
PORTUGAL
--- --- ---
X
----- ---------------------
DL (L)
SPAIN X PGC (L) X
SWITZERLAND X 0
ED FAS 20 (P) N A
-- -
THAILAND X
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA 198l(L);SSAP2&9(P) X
X
- - -N A- - -
UNITED STATES X AICPA (P)
----------------
URUGUAY
--- --- ---X ----- ---------------------
DN (L)
----------------1--- --- --- ----- ------------------------- --
DCOIIE AliD ASSE'I HEASUB.EMEI'l 83
FIXED ASSE'IS - IIEASUB.EIIERT
3.16(a) The definition of Fixed Assets includes land

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
-- -- -- - - - - - - - -
IGJ RES 1/73 (L)
ARGENTINA
--- ----- -
NA
X
----------------
AUSTRALIA
--- --- ---------------------
AAS 4 (P)
- - ---
--- --- ----- --------------------- -X - - - - -
X X
----------------
BELGIUM
---
RD (L)
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - -N -A - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- --------------------- - -X - - - -
----------------
CHILE
--- --- --- ----- ---------------------
X
c 86 (L) - -X - - - -
----------------
COLOMBIA
X
--- --- --- ----- ---------------------
sc (L) - -X - - - -
--- --- ----- --------------------- -X - - - - -
X
----------------
DENMARK
--- AAPA 1981 (L)
--- --- ----- --------------------- -X - - - - -
X
----------------
FINLAND
--- AL (L)
----------------
FRANCE
---
X
--- --- ----- ---------------------
PCG 1957 (L)
- -X - - - -
--- --- ----- --------------------- -X - - - - -
X
---------------- ---
GERMANY SCL (L)
----------------
HONG KONG
X
--- --- --- ----- ---------------------
co (L)
-X - - - - -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM 4(L);PAI 3(P)
- -X - - - -
----------------
IRELAND
--- --- ---
X
----- --------------------- -X - - - - -
----------------
ITALY
--- --- --- ----- ---------------------
X
CIVIL CODE (L)

-X - - - - -
--- --- ----- --------------------- -X - - - - -
X
----------------
JAPAN
--- FSR (L)
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS S;MACPAS 1 (P)
-X - - - - -
--- --- ----- --------------------- -X - - - - -
X
----------------
MEXICO
--- IMCP C-6 (P)
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 9 (P)
- -----
N A
-----
X
----------------
PHILIPPINES
--- --- --- ---------------------
SEC
- - - ---
--- --- --- ----- --------------------- -X - - - - -
X (L) X
----------------
PORTUGAL DL (L)
----------------
SOUTH AFRICA
--- --- ---
X
----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
SPAIN
--- --- --- ----- ---------------------
X
LSA (L)
- -X - - - -
----------------
SWITZERLAND
---
X
--- --- ----- ---------------------
CL (L)
- X- - - - -
---------------- --- --- --- ----- --------------------- - - -X - - -
X
THAILAND MR 2 (L)
--- --- ----- --------------------- -X - - - - -
X
----------------
UNITED KINGDOM
--- CA 1981 (L)
-----------~---- --- --- --- ----- --------------------- - - - - - -
X
UNITED STATES
----------------
URUGUAY
--- --- ---
X
----- ---------------------
AIC (P)
-
X
- -X - - -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
IAS 5 (P)
- - - - -X -
----------------
ZIMBABWE
--- --- --- ----- ---------------------
X
IAS 5 (P)
-X - - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
X
84 IBCOIIE AlO> ASSET KEASUU'JIEIII'
3.16(b) The definition of Fixed Assets includes Buildings

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- --- 1-------------- -------
ARGENTINA X IGJ RES 1/73 (L) NA
AUSTRALIA X ---------------------
AAS 4 (P) X
BELGIUM X RD (L) X
CHANNEL ISLANDS X X
CHILE X C 86 (L) X
COLOMBIA X SC (L) X
FINLAND X ---------------------
AL (L) -X
GERMANY X SCL (L) X
HONG KONG X ---------------------
CO (L) -----
X
INDONESIA X BAPEPAM 4(L);PAI 3(P) X
IRELAND X X

JAPAN X ---------------------
FSR (L) ----- -
X
MALAYSIA X lAS 5;MACPAS 1 (P) X
MEXICO X ---------------------
IMCP C-6 (P) X -----
NEW ZEALAND
---
X
--- SSAP 9 (P) NA
PORTUGAL X ---------------------
DL (L) X -
SPAIN X LSA (L) X
SWITZERLAND X ---------------------
CL (L) -X - - - - -
THAILAND X MR 2 (L) X
UNITED KINGDOM X CA 1981 (L) X
UNITED STATES X X
URUGUAY X AIC (P) X
ZAMBIA X ---------------------
lAS 5 (P) - X
IRCOME Aim ASSET IIEASUREMDT 85
3.16(c) The definition of Fixed Assets includes Plant and

Machinery

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- -- --- - - - - - -
ARGENTINA X IGJ RES 1/73 (L) NA
----------------
AUSTRALIA
---
X
--- --- ----- ---------------------
AAS 4 (P)
- -
X
----
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
-X - - - - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - -N A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- --------------------- - - -X - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
c 86 (L)
-X - - - - -
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
sc (L) -X - - - - -
----------------
DENMARK
---
X
--- --- ----- ---------------------
AAPA 1981 (L)
- X- - - - -
----------------
FINLAND
---
X
--- --- ----- ---------------------
AL (L)
-X -- - - - -
----------------
FRANCE
---
X
--- --- ----- ---------------------
PCG 1957 (L)
- - X- - - -
----------------
GERMANY
---
X
--- --- ----- ---------------------
SCL (L)
-X - - - - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
co (L) - - -X - - -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM 4(L) ;PAl 3(P) X
------
----------------
IRELAND
--- --- ---
X
----- --------------------- -X - - - - -
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L)
-X - - - - -
----------------
JAPAN
---
X
--- --- ----- ---------------------
FSR (L)
-X - - - - -
----------------
MALAYSIA
---
X
--- --- ----- --~------------------
lAS 5 ; MACPAS 1 (P) X
------
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP C-6 (P)
-X - - - - -
----------------
NE.rl ZEALAND
---
X
--- --- ----- ---------------------
SSAP 9(P)
- - N- A- - -
----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
SEC (L)
- - -X - - -
----------------
PORTUGAL
---
X
--- --- ----- ---------------------
DL (L)
-X - - - - -
----------------
SOUTH AFRICA
--- --- ---X ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
SPAIN
---
X
--- --- ----- ---------------------
LSA (L)
- X- - - - -
----------------
SWITZERLAND
---
X
--- --- ----- ---------------------
CL (L)
- - -X - - -
----------------
THAILAND
---
X
--- --- ----- ---------------------
MR 2 (L)
- - -X - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA 1981 (L)
- -X - - - -
----------------
UNITED STATES
--- --- ---
X
----- --------------------- -X - - - - -
----------------
URUGUAY
---
X
--- --- ----- ---------------------
AIC (P)
- - X- - - -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 5 (P)
- - - -X - -
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------
lAS 5 (P)
-X - - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
86 IBCOIIE ABD ASSET MEASUREIIERT
3.16(d) The definition of Fixed Assets includes Furniture and

Fittings

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- - - - ----------- -----
ARGENTINA X ICJ RES 1/73 (L) NA
X --- --- ----- AAS 4 (P)
----------------
AUSTRALIA
--- --------------------- X
BELGIUM X RD (L) X

CHANNEL ISLANDS X X
CHILE X C 86 (L) X
COLOMBIA X X

FINLAND X
--- ----- ---------------------
AL (L) -X
GERMANY SCL (L)

----- ---------------------
X X
HONG KONG X co (L) 0

IRELAND X X

---------------- ---
JAPAN
---------------------
X --- --- ----- FSR (L) X
MEXICO IMCP C-6 (P)

-
X X
NEW ZEALAND X --- ----- ---------------------

SSAP 9 (P) N A
----------------
PORTUGAL X ---
--- --- ----- ---------------------
DL ( L)
-X
SPAIN X LSA (L) X
SWITZERLAND X --- ----- -c1-<1>-~------------ - X
UNITED STATES X X
URUGUAY X AIC (P) X

----------------
ZIMBABWE
--- --- --- --------------------- - - - -X - -
X ----- lAS 5 (P)
----------------l---1---l---l-----l---------------------l------
DJCOIIE Aim ASSET MEASUREMENT 87
3.16(e) The definition of fixed assets includes other specific

clas sif icat ions

PRACTICE
R
e
c p Np
R 0 e 0 e Unable to
e m r t r quantify
q m m m
u e 1 i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
- - - -- - - - - - -
ARGENTINA X IGJ RES 1/73 (L) N NA
--- --- --- -----
AUSTRALIA ---- N/A N/A N/A N/A ------------
------------ --------- - - -N A- - -
------------ ---- ---X
--- --- ----- ------------
RD (L) ---------N - - -N A- - -
---------N - - N- A- - -
BELGIUM
------------
BRAZIL ---- ---X
--- --- ----- ------------
LAW 6.404 (L)
------------~--- --- --- --- ----- ---------------------
- - -N A- - -
CHANNEL ISLANDS N/A N/A N/A N/A
------------ ---- --- --- --- ----- ------------
c 86 (L) ---------N
- - N- A- - -
CHILE X
------------ ---- --- --- ---X
----- --------------------- - - N- A- - -
COLOMBIA
------------ ---- ---X
--- --- ----- ------------ ---------N - - -N A- - -
AAPA 1981 (L)
--------- - - -N -A - -
DENMARK
------------
FINLAND ---- --- --- --- -----
N/A N/A N/A N/A ------------
------------ ---- ---X
--- --- ----- ------------
PCG 1957 (L)---------N
- - -N A- - -
FRANCE
------------
GERMANY ---- ---X
--- --- ----- ------------
SCL (L) ---------N - - -N A- - -
------------
HONG KONG ---- ---X
--- --- ----- ------------
co (L) ---------N - - N- A- - -
INDONESIA ---- X
------------ --- --- --- ----- ------------ ---------N - - N- A- - -
BAPEPAM 4 (L)
------------
IRELAND ---- --- --- ---X
----- --------------------- - - -N A- - -
------------
ITALY ---- --- --- --- ----- --------------------- - - -N A- - -
N/A N/A N/A N/A
------------
JAPAN ---- --- --- --- -----
N/A N/A N/A N/A ------------
--------- - - -N -A - -
------------ ---- --- --- --- X
----- ------------
lAS 5 (P) ---------N
- - -N A- - -
MALAYSIA
------------ ---- ---X
--- --- ----- ------------
IMCP C-6 (P)---------N
- - -N -A - -
MEXICO
NEW ZEALAND ---- X
------------ --- --- --- ----- ------------
SSAP 9 (P) ---------N
- - -N A- - -
------------ ---- --- --- --- -----
N/A N/A N/A N/A ------------
--------- - - -N A- - -
--- --- ----- ------------
PHILIPPINES
------------
PORTUGAL ---- ---X DL (L) ---------N - - N- A- - -
SOUTH AFRICA---- X
------------ --- --- --- ----- ------------
CA 1973 (L) ---------N
- - -N A- - -
------------ ---- --- --- --- ----- ------------ ---------N - - N- -A - -
--- --- --- ----- --------------------- - - N- A- - -
SPAIN X PGC (L)
SWITZERLAND ---- N/A N/A N/A N/A
------------
---------------- ---
THAILAND
--- --- -----
N/A N/A N/A N/A ------------
--------- - - -N A- - -
------------ ---- --- --- --- ----- ------------
CA 1981 (L)---------
- - -N -A - -
UNITED KINGDOM
UNITED STATES----
------------
X
--- --- ---
X
----- ------------
FAS 13 (P) ---------
- - -N -A - -
------------ ---- --- --- --- ----- ------------
AIC (P) --------- - - -N A- - -
URUGUAY X
------------
ZAMBIA ---- --- --- ---X
----- ------------
lAS 5 (P) ---------N
- - N- A- - -
------------ ---- --- --- --- ----- ------------
lAS 5 (P) ---------N
- - -N A- - -
---------------- --- --- --- ----- --------------------- - - - - - -
ZIMBABWE X
88 IBCOHE ARD ASSE't MBASUR.EHERT
3.17(a) Fixed Assets should be shown at cost less aggregate

depreciation

PRACTICE
R
e
c p N p
R 0 e 0e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
- - - - -- ---- - - - - - -
ARGENTINA NA
--- --- --- ----- --------------------- - -X - - - -
X
----------------
AUSTRALIA
----- --------------------- - - -X - - -
X
----------------
BELGIUM
--- --- --- RD (L)
- - -N A- - -
X
----------------
BRAZIL
--- --- --- ----- ---------------------
LAW 6.404 (L)
--- ----- --------------------- - - - -X - -
X
----------------
CHANNEL ISLANDS
--- ---
--- --- --- ----- --------------------- - - - -X - -
X
----------------
CHILE c 86 (L) ; TB 1 (P)
--- --- ----- --------------------- -X - - - - -
X
----------------
COLOMBIA
--- sc (L)
----------------
DENMARK
--- --- ---
X
----- ---------------------
AAPA 1981 (L)
- - - -X - -
--- --- ----- --------------------- ------
X
----------------
FINLAND
--- AL (L) NX
--- --- ----- ---------------------
X
----------------
FRANCE
--- PCG 1957 (L)
- - - -X - -
----------------
GERMANY
---
X
--- --- ----- ---------------------
SCL (L)
-X - - - - -
--- --- --- ----- --------------------- - - - -X - -
X
----------------
HONG KONG
--- ----- --------------------- ------
X
----------------
INDONESIA
--- --- BAPEPAM 4(L) ;PAl 3(P) X
--- --- ---X ----- --------------------- -X - - - - -
X
----------------
IRELAND CA 1963 (L)
----------------
ITALY
--- --- --- ----- ---------------------
CIVIL CODE (L)
-X - - - - -
--- --- ----- --------------------- -X - - - - -
X
----------------
JAPAN
--- FSR (L)
--- --- --- - - - -X - -
X
----------------
MALAYSIA
----- ---------------------
MCA (L)
--- --- ----- --------------------- - - - - -X -
X
----------------
MEXICO
--- IMCP C-6 (P)
----- ---------------------N - - -N A- - -
X
----------------
NEW ZEALAND
--- --- ---
--- --- ----- --------------------- - - -X - - -
X
----------------
PHILIPPINES
--- SEC (L)
--- --- --- ------ --------------------- - - - - X- -
X
----------------
PORTUGAL DL (L)
--- --- ----- --------------------- -X - - - - -
X
----------------
SOUTH AFRICA
--- CA 1973 (L)
--- --- ----- --------------------- - - - - - -X
X
----------------
SPAIN
--- LSA (L) N
--- --- ----- --------------------- - -X - - - -
X
----------------
SWITZERLAND
--- CL (L)
--- --- ----- --------------------- -X - - - - -
X
----------------
THAILAND
--- MR 2 (L)
----- --------------------- - - - -X - -
X
----------------
UNITED KINGDOM
--- --- --- CA 1981 (L) N
--- --- ----- --------------------- -X - - - - -
X
----------------
UNITED STATES
--- APBO 12 (P)
----- --------------------- -X - - - - -
X
----------------
URUGUAY
--- --- ---
----------------
ZAMBIA
--- --- ---X ----- --------------------- - - -X - - -
X
----------------
ZIMBABWE --- --- --- ----- ---------------------
CA 1951 (L)
- - -X - - -
--- ----- --------------------- - - - - - -
X
---------------- --- ---
DICOHE ARD ASSET HEASUR.EIIEIT 89
3.17(b) Fixed Assets should be shown at valuation or appraised

value other than cost (less aggregate depreciation since
date of valuation)

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m. m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
----------------
AUSTRALIA
--- --- X
----- --------------------- - - X
----------------
BELGIUM
--- --- X ---------------------
RD (L) 0
----------------
BRAZIL X ---------------------
LAW 6.404 (L) N NA
----------------
CHANNEL ISLANDS X --------------------- X
----------------
CHILE X ---------------------
c 1529 ; c 1571 (L) X
----------------
COLOMBIA.
--- --- X ---------------------
sc (L) 0
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
AL (L) 0
---------------- X ---------------------
PCG 1957 (L)
FRANCE
----------------
GERMANY X ---------------------
SCL (L)
- - - - 0
0
----------------
HONG KONG X
--------------------- X
----------------
INDONESIA X ---------------------
DMF 109(L);PAI 3(P) X
----------------
IRELAND X ---------------------
CA 1963 (L) X
---------------- --- --- X ---------------------
LAW 576 (L) X
ITALY
---------------- --- --- X ---------------------
FSR (L)
JAPAN 0
----------------
MALAYSIA
--- --- X ---------------------
MCA (L) 0
----------------
MEXICO X ---------------------
IMCP c-6 (P) X
----------------
NEW ZEALAND X ---------------------N N A
----------------
PHILIPPINES X ---------------------
SEC (L); SP 2.71(P) 0
----------------
PORTUGAL
--- --- X ---------------------
DL (L) X
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
---------------- X ---------------------
PGC (L) N
SPAIN
----------------
SWITZERLAND
--- --- X ---------------------
CL (L)
- - - -
0
- 0
----------------
THAILAND X ---------------------
MR 2 (L) 0
----------------
UNITED KINGDOM X ---------------------
CA 1981 (L) N 0
---------------- X ---------------------
APB (P) X
--------------------- - - - - - X
UNITED STATES
---------------- --- --- X
URUGUAY
----------------
ZAMBIA X --------------------- 0
----------------
ZIMBABWE X --------------------- 0
---------------- ---------------------
90 IBCOME AND ASSET MEASUitEIIERT
3.17(c) Fixed Assets should be shown at cost or valuation

(appraised value)

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X X
BELGIUM RD (L) X
--- ---
X
CHANNEL ISLANDS X X
CHILE X C 86 (L) 0
COLOMBIA ---------------------
sc (L)
- -- --
X 0
FINLAND X ---------------------
AL (L) 0
FRANCE X X
GERMANY X SCL (L) 0
HONG KONG X CO (L) X
INDONESIA X 0
IRELAND X CA 1963 (L) 0
JAPAN X ---------------------
FSR (L) 0
MALAYSIA X X
MEXICO IMCP C-6 & 7 (P)
NEW ZEALAND
--- --- X
N N A
X
--- ---
X
PORTUGAL X DL (L) 0
SPAIN ---------------------
LSA PGC (L) NX
SWITZERLAND
--- --- X
---------------------
CL (L)
- ---
-----
X X
THAILAND X
---------------------
MR 2 (L) X
UNITED KINGDOM X CA 1981 (L) N X
UNITED STATES X ---------------------
APBO 6 (P) 0
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X X
IBCOIIK ARD ASSET HEASUREMER'l 91
3.17(d) "Valuation or appraised value" refers to "continued use"

(ie. going concern) value

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X X
BELGIUM X X
CHANNEL ISLANDS X X
CHILE X C 1529 (L) 0
COLOMBIA N/A N/A N/A N/A NA
DENMARK X 0
FINLAND N/A N/A N/A N/A NA
FRANCE X CNC (L) X
GERMANY N/A N/A N/A N/A NA
HONG KONG X 0
INDONESIA X DMF 109 (L) X
IRELAND X
---------------------
M6 (P) X
- - - - -
JAPAN N/A N/A N/A N/A N A
MALAYSIA X X
MEXICO X IMCP B-7 (P) 0

NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X DL (L) 0
SOUTH AFRICA X X
SPAIN X N X
SWITZERLAND N/A N/A N/A N/A X
THAILAND N/A N/A N/A N/A 0
UNITED KINGDOM X N X
UNITED STATES N/A N/A N/A N/A 0

URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
92 IlfCOME AND ASSET MEASUREMENT
3.17(e) "Valuation or appraised value" refers to realisable value

PRACTICE
R.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X
BELGIUM
--- --- X
X
X
CHANNEL ISLANDS X 0
CHILE
--- --- C 1529 (L)
X 0
COLOMBIA N/A N/A N/A N/A N A
DENMARK X X
FRANCE X X
----------------
GERMANY N/A N/A N/A N/A --------------------- NA
HONG KONG X X
INDONESIA X 0
IRELAND X M6 {P) N 0
MALAYSIA X X
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X DL (L) 0
SOUTH AFRICA X X
SPAIN X N 0
SWITZERLAND N/A N/A N/A N/A 0
UNITED STATES N/A N/A N/A N/A X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
IBCOIIE .ARD ASSE'I' MEASUB.EKENT 93
3.17(£) "Valuation or appraised value" refers to replacement value

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF

AUSTRALIA X
--------------------- X
BELGIUM X --------------------- X
BRAZIL X ---------------------
LAW 1.598 (L) NA
CHILE X
---------------------
c 1529 (L) X
COLOMBIA N/A N/A N/A N/A --------------------- NA
DENMARK X --------------------- 0
FINLAND N/A N/A N/A N/A --------------------- NA
FRANCE X --------------------- X
GERMANY N/A N/A N/A N/A --------------------- NA
HONG KONG X ---------------------
co (L) 0
INDONESIA X ---------------------
DMF 109 (L) 0
IRELAND X --------------------- X
ITALY X ---------------------
CIVIL CODE (L)
- - - - 0
JAPAN N/A N/A N/A N/A --------------------- NA
MALAYSIA X --------------------- X
MEXICO X ---------------------
IMCP B-7 (P) X
NEW ZEALAND X
--------------------- NA
PHILIPPINES ---------------------
SP 2.71 (P) X
- --- 0
X
PORTUGAL X ---------------------
DL (L)
SOUTH AFRICA X --------------------- X
SPAIN ---------------------N
--------------------- - - - - - 0
X 0
SWITZERLAND N/A N/A N/A N/A
THAILAND N/A N/A N/A N/A --------------------- - - N A
UNITED KINGDOM X ---------------------
SSAP 16 N 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
94 DICOHE Aim ASSET .MEASUREHDT
3.17(g) Valuation or appraised value should be calculated by the

directors or other company officials

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X N X
BELGIUM X X
CHANNEL ISLANDS X X
DENMARK X X
FINLAND N/A N/A N/A N/A N A
FRANCE X X
HONG KONG X X
INDONESIA X 0
IRELAND X M6 (P) N X
ITALY X
--- --- CIVIL CODE (L) X
JAPAN N/A N/A N/A N/A
--- ---
N A
MALAYSIA X
--- ---
X
MEXICO X IMCP B-7 (P)
--- ---
0
NEW ZEALAND X N A
PHILIPPINES X SP 2.71 (P) 0
PORTUGAL X ---------------------
DL (L) 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND N/A N/A N/A N/A
THAILAND N/A N/A N/A N/A
- - - - 00

URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
IRCOME ABD ASSE'l IIEASDltEMERT 95
3.17(h) Valuation or appraised value should be calculated by

independent third parties

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c D EF
-- -- -- ---- - - - - -
-
ARGENTINA X ITCP RES 148 NA
----------------
AUSTRALIA
--- --- ---
X
----- ---------------------
N
- - -
X
---
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - - - -X
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - N- A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- --------------------- - - -X - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
c 1529 (L)
-X - - - - -
----------------
COLOMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
DENMARK
--- --- ---
X
----- --------------------- -X - - - - -
----------------
FINLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
FRANCE
--- --- ---
X
----- --·------------------- - - -X - - -
----------------
GERMANY
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N - A- - -
----------------
HONG KONG
--- --- ---
X
----- --------------------- - - -X - - -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
DMF 1677 (L) N X
------
----------------
IRELAND
--- ---X --- ----- ---------------------
M6 (P)
-X - - - - -
----------------
ITALY
--- --- --- -----
X ---------------------
CIVIL CODE (L)
- - - - - -0
----------------
JAPAN
--- --- --- -----
N/A N/A N/A N/A ---------------------
- --A
N
---
----------------
MALAYSIA
--- --- ---
X
----- --------------------- - -X - - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP B-7 (P)
-X - - - - -
----------------
NEW ZEALAND
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
APB 6., SP 2.71 (P)
-X - - - - -
----------------
PORTUGAL
--- --- ---
X
----- ---------------------
DL (L)
- ----
'x -
----------------
SOUTH AFRICA
--- --- ---X ----- --------------------- - - -X - - -
----------------
SPAIN
--- --- ---
X
----- --------------------- - - - - - -0
----------------
SWITZERLAND
--- --- --- ----- --------------------- - - - - - -0
N/A N/A N/A N/A
----------------
THAILAND
--- --- --- ----- --------------------- - - - - - -0
N/A N/A N/A N/A
----------------
UNITED KINGDOM
--- ---
X
--- ----- ---------------------N - -X - - - -
----------------
UNITED STATES
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
URUGUAY
--- --- ---
X
----- --------------------- -X - - - - -
----------------
ZAMBIA
--- --- ---
X
----- --------------------- - - - - - -0
----------------
ZIMBABWE
--- --- ---
X
----- --------------------- - -X - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
96 IIICOME Aim ASSE'l IIEASUilEMD'l
3.18(a) Depreciation should be applied to all Fixed Assets except

Land and Buildings

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- - -- - - - - - -
ARGENTINA X NA
----------------
AUSTRALIA
--- --- --- -----
X ---------------------
AAS 4 (P)
- - - - - -X
----------------
BELGIUM
--- --- --- -----
X ---------------------
RD (L)
- - - - - -0
---------------- --- --- --- -----
X ---------------------
LAW 6.404 (L)
- - N- A- - -
BRAZIL
----------------
CHANNEL ISLANDS
--- --- ---X ----- --------------------- - - - -X - -
----------------
CHILE
--- --- --- -----
X ---------------------
TB 1 (P)
- - - - - -0
----------------
COLOMBIA
--- --- --- -----
X ---------------------
NIPA (P)
- - - - - -X
----------------
DENMARK
--- --- ---
X
----- --------------------- - - - - - -0
----------------
FINLAND
--- --- --- -----
X ---------------------
AL (L)
- - - - - -0
----------------
FRANCE
--- --- --- -----
X ---------------------
PCG 1957 (L)
- - - - - -0
----------------
GERMANY
--- --- --- -----
X ---------------------
SCL (L)
- - - - - -0
----------------
HONG KONG
--- --- --- -----
X ---------------------
SSAP 123 (P)
- - - - - X-
---------------- --- --- --- -----
X ---------------------
- - - - - -0
- - - - - -X
INDONESIA PAl 3 (P)
----------------
IRELAND
--- --- --- -----
X ---------------------
SSAP 12 (P)
----------------
ITALY
--- --- --- -----
X ---------------------
CIVIL CODE (L)
- - - - - -0
----------------
JAPAN
--- --- --- -----
X ---------------------
cc ; BAP (L) - - - - - -0
----------------
MALAYSIA
--- --- --- -----
X ---------------------
lAS 4 (P)
- - - - - -X
----------------
MEXICO
--- --- --- -----
X ---------------------
IMCP C-6 (P)
- - - - - -0
----------------
NEW ZEALAND
--- --- --- -----
X ---------------------
SSAP 3 (P)
- - -N A- - -
----------------
PHILIPPINES
--- --- --- -----
X ---------------------
APB 6 (P)
- - - - - -0
---------------- --- --- --- -----
X ---------------------
- - - - - -0
PORTUGAL
----------------
SOUTH AFRICA
--- --- ---X ----- --------------------- - - - -X - -
DL (L)
----------------
SPAIN
--- --- --- -----
X ---------------------
LSA (L)
- - - - - X-
----------------
SWITZERLAND
--- --- ---X ----- ---------------------
CL (L); IH (P)
- - - - -X -
----------------
THAILAND
--- --- ---X ----- --------------------- - - - - - -0
----------------
UNITED KINGDOM
--- --- --- -----
X ---------------------
CA 1981(1) ;SSAP 12(P)
- - - - - -0
----------------
UNITED STATES
--- --- --- -----
X ---------------------
ARB 43 (P)
- - - - - -0
----------------
URUGUAY
--- --- --- -----
X ---------------------
AIC (P)
- - - - - -0
----------------
ZAMBIA
--- --- --- -----
X ---------------------
lAS 4 (P)
- - - -X - -
----------------
ZIMBABWE --- --- --- -----
X ---------------------
- - - - X- -
---------------- --- --- --- ----- --------------------- - - - - - -
lAS 4 (P)
IBCOME AlO) ASSE'r MEASUREMDT 97
3.18(b) Depreciation should be applied to all Fixed Assets except

Land

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- - - 1-------------- -------
AUSTRALIA X AAS 4 {P) X

CHILE X TB 1 (P) X
DENMARK FSR (P) X

--- --- ----- ---------------------
X
----------------
FINLAND ---
X AL (L) X
- -- -
GERMANY X SCL (L) X

JAPAN CC ; BAP (L)

--- --- -----
X X
----------------
MALAYSIA ---
X
---------------------
lAS 4 (P)
-X -
MEXICO IMCP C-6 (P) X
- - -N A
X
NEW ZEALAND X ---------------------
SSAP 3 (P)
- -X - - - -
X
PORTUGAL X
----- ---------------------
DL (L)
SOUTH AFRICA X X
SPAIN LSA (L) X
--X
X
SWITZERLAND X ---------------------
CL ( L) ; IH ( P)
THAILAND X X
UNITED KINGDOM X CA 1981(L);SSAP 12(P) X

UNITED STATES X ----- ---------------------
ARB 43 (P) X
URUGUAY X AIC (P) X

---------------- ---
ZIMBABWE X --- --- ----- ---------------------
lAS 4 {P) - X
---------------- --- --- --- ----- --------------------- -
98 INCOIIB AliD ASSE'l IIEASUR.EHEII'r
3.18(c) Depreciation should be applied to all Fixed Assets

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- - - ---- - - - - - -
ARGENTINA X NA
---------------- --- --- --- -----
X ---------------------
AAS 4 (P)
- - - - -X -
AUSTRALIA
----------------
BELGIUM
--- --- --- -----
X ---------------------
RD (L)
- - - - - -0
----------------
BRAZIL
--- --- --- -----
X ---------------------
LAW 6.404 (L)
- - -N A- - -
----------------
CHANNEL ISLANDS
--- --- ---
X
----- --------------------- - - - - -X -
----------------
CHILE
--- --- --- -----
X ---------------------
TB 1 (P)
- - - - - -0
----------------
COLOMBIA
--- --- --- -----
X ---------------------
NIPA (P)
- - - - - -X
----------------
DENMARK
--- --- ---
X
----- --------------------- - - - - - -0
----------------
FINLAND
--- --- --- -----
X ---------------------
AL (L)
- - - - - -0
----------------
FRANCE
--- --- --- -----
X ---------------------
PCG 1957 (L)
- - - - - X-
----------------
GERMANY
--- --- --- -----
X ---------------------
SCL (L)
- - - - - -0
----------------
HONG KONG
---
X
--- --- ----- ---------------------
SSAP 123 {P)
- - - -X - -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
PAl 3 (P)
------
X
----------------
IRELAND
--- --- --- -----
X ---------------------
SSAP 12 (P)
- - - - - -0
----------------
ITALY
--- --- --- -----
X ---------------------
CIVIL CODE (L)
- - - - - -0
----------------
JAPAN
--- --- --- -----
X ---------------------
cc ; BAP (L) - - - - - -X
----------------
MALAYSIA
--- --- ---
X
----- --------------------- - - - - - -X
----------------
MEXICO
--- --- --- -----
X ---------------------
IMCP C-6 (P)
- - - - - -0
----------------
NEW ZEALAND
--- --- --- ----- --------------------- - - N- -A - -
----------------
PHILIPPINES
--- --- --- -----
X ---------------------
APB 6 {P)
- - - - - -0
----------------
PORTUGAL
--- --- --- -----
X ---------------------
DL (L)
- - - - -X -
----------------
SOUTH AFRICA
--- --- ---
X
----- --------------------- - - - - - -X
----------------
SPAIN
---
X
--- --- ----- ---------------------
LSA (L)
- - - - -X -
----------------
SWITZERLAND
--- --- ---
X
----- ---------------------
CL (L); IH {P)
- - - -X - -
----------------
THAILAND
--- --- ---
X
----- --------------------- - - - - - -X
----------------
UNITED KINGDOM
--- --- --- -----
X ---------------------
CA 1981(L) ;SSAP 12(P)
- - - - - -0
----------------
UNITED STATES
--- --- --- -----
X ---------------------
ARB 43 (P)
- - - - - -X
----------------
URUGUAY
--- --- --- -----
X ---------------------
AIC (P)
- - - - - -0
----------------
ZAMBIA
--- --- ---
X
----- --------------------- - - - - -X -
---------------- --- --- --- ----- --------------------- - - - - - -0
~!~~~~--------1---1---1-~- ----- --------------------- - - - - - -
IBCOHE Aim ASSE'l' HEASUR.EMERr 99
3.19(a) The "straight line" depreciation method should be used

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X NA
----------------
AUSTRALIA X ---------------------
AAS 4 (P) X
----------------
BELGIUM
--- --- X --------------------- X - - - -
----------------
BRAZIL X ---------------------
RIR (L) NA
----------------
----------------
CHILE X --------------------- X - - - -
----------------
COLOMBIA X ---------------------
GAAP (P) X
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
TAX LAW (L) X
----------------
FRANCE X ---------------------
OECCA (P) X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X ---------------------
TD X
----------------
IRELAND X ---------------------
SSAP 12 (P) X
-- -- -
----------------
ITALY X ---------------------
PC 4 (P) X
----------------
JAPAN X ---------------------
BAP (L) X
----------------
MALAYSIA X ---------------------
lAS 4 (P) X
----------------
MEXICO X ---------------------
IMCP C-6 (P) X
- - - - -
----------------
NEW ZEALAND X ---------------------
SSAP 3 (P) NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X ---------------------
DL (L) X
- - - - -
----------------
SOUTH AFRICA X --------------------- X - - - -
----------------
SPAIN X ---------------------
LSA (L) X
- - --
----------------
SWITZERLAND X --------------------- X - - - -
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------
CA 198l(L) ;SSAP 12(P) X
----------------
UNITED STATES X ---------------------
ARB 44 (P) X
----------------
URUGUAY
--- --- X --------------------- X
----------------
ZAMBIA
--- --- X ---------------------
lAS 4 (P) X
----------------
ZIMBABWE X ---------------------
lAS 4 (P) X
- -- --
---------------- --------------------- - - - - -
100 IBCOHE ABD ASSET HEASUREMERr
3.19(b) The "reducing balance" depreciation method should be used

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
----------------
AUSTRALIA X ---------------------
AAS 4 (P) X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
RIR (L) NA
----------------
----------------
CHILE X --------------------- 0
----------------
COLOMBIA X ---------------------
GAAP (P) X
----------------
DENMARK X ---------------------
FSR (P) X
----------------
FINLAND X ---------------------
TAX LAW (L) X
----------------
FRANCE X --------------------- X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X --------------------- 0
----------------
IRELAND
--- --- X ---------------------
SSAP 12 (P)
- - - - X
----------------
ITALY
--- --- X ---------------------
PC 4 (P)
- - - -
----------------
JAPAN
--- --- X ---------------------
BAP (L) X
- - - -
0
----------------
MALAYSIA X ---------------------
lAS 4 (P) X
----------------
MEXICO X ---------------------
IMCP C-6 (P) 0
----------------
NEW ZEALAND
--- --- X ---------------------
SSAP 3 (P) NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X ---------------------
DL (L) 0
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN
--- --- X ---------------------
LSA (L) 0
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM
--- --- X ---------------------
----------------
UNITED STATES
--- --- X ---------------------
ARB 44 (P) X
----------------
URUGUAY X --------------------- - - - - - 0
----------------
ZAMBIA X ---------------------
lAS 4 (P) 0
----------------
ZIMBABWE X ---------------------
lAS 4 (P) X
---------------- ---------------------
IBCOME ARD ASSET MEASUREMEIIT 101
3.19(c) The "sum of digits" depreciation method should be used

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X
---------------------
AAS 4 (P) 0
BELGIUM X
---------------------N 0
BRAZIL X
---------------------
RIR (L) NA
CHANNEL ISLANDS --------------------- 0
--- --- --------------------- - - - - 0
X
CHILE
--- --- ----X
X
COLOMBIA ---------------------
GAAP (P)
--------------------- - - - - 0
X
DENMARK
-----0
X
FINLAND ---------------------
TAX LAW (L)
---------------------N - - - - - 0
X
FRANCE
-----0
X
GERMANY
--- --- X
---------------------
SCL (L)
HONG KONG --------------------- 0
--------------------- - - - - 0
X
INDONESIA
-----0
X
IRELAND
--- --- ---------------------
SSAP 12 (P)
-----0
X
ITALY
--- --- ---------------------
PC 4 (P)
-----0
X
JAPAN X
---------------------
BAP (L)
MALAYSIA X
---------------------
lAS 4 (P) 0
MEXICO X
---------------------
IMCP C-6 (P) 0
NEW ZEALAND
--- --- X
---------------------
SSAP 3 (P) NA
PHILIPPINES ---------------------
- - -
X
--- ---
X
PORTUGAL X
---------------------
DL (L)
- - 0
SOUTH AFRICA
--- --- --------------------- 0
--- --- - - -
X
---------~----------- - -
SPAIN LSA (L) 0
--- ---
X
SWITZERLAND --------------------- 0
--- --- ----- --------------------- - - -
X
THAILAND
- - - -
X X
UNITED KINGDOM
--- --- ---------------------
- 0
- - - -
X
UNITED STATES
--- --- X
---------------------
ARB 44 (P)
-
X
URUGUAY X
--------------------- 0
ZAMBIA ---------------------
lAS 4 (P) 0
- - - - -
X
ZIMBABWE
--- --- ---------------------
lAS 4 (P) 0
--- --- --------------------- - - - - -
X
102 IIICOME AND ASSE'r MEASUB.EMERT
3.19(d) Alternative depreciation methods should be used

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N N A
AUSTRALIA X AAS 4 (P) N X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
miLE X 0
COLOMBIA X TA (L) X
DENMARK X 0
FINLAND
--- --- --- X TAX LAW (L) 0
FRANCE
--- --- X X
GERMANY
--- --- X SCL (L) X
HONG KONG X 0
INDONESIA X 0
IRELAND X X
ITALY
--- --- X 0
JAPAN
--- --- X BAP (L) N X
MALAYSIA X
---------------------N X
MEXICO
--- --- X
---------------------
IMCP C-6 (P) X
--- --- ---------------------
PHILIPPINES X
---------------------N X
PORTUGAL X
--------------------- 0
SOUTH AFRICA
--- --- X X
SPAIN
--- --- X LSA (L) X
SWITZERLAND
--- --- X N X
THAILAND X X
UNITED KINGDOM X CA 1981 (L) 0

UNITED STATES X ARB 44 (P) N X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X N 0
IKCOIIE AlfD ASSET MEASUREHERT 103
DISCLOSURE
3.20 The basis on which Fixed Assets are stated should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
-- -- - - ---- - - - - - -
--- --- --- ----- --------------------- -X - - - - -
X
----------------
AUSTRALIA AAS 6 (P)
--- --- ----- --------------------- -X - - - - -
X
----------------
BELGIUM
--- RD (L)
--- --- --- ----- --------------------- - - -N -A - -
X
----------------
BRAZIL LAW 6.404 (L)
--- --- --- ----- --------------------- - - - -X - -
X
----------------
CHANNEL ISLANDS
--- --- --- ----- --------------------- -X - - - - -
X
----------------
CHILE c 86 (L); TB 6 (P)
--- --- --- ----- --------------------- - - - -X - -
X
----------------
COLOMBIA sc (L)
--- ----- --------------------- -X - - - - -
X
----------------
DENMARK
--- --- FSR (P)
----- --------------------- - - - - - -0
X
----------------
FINLAND
--- --- ---
----------------
FRANCE
--- --- ---
X
----- --------------------- - - - -X - -
---------------- --- --- --- ----- --------------------- -X - - - - -
X
GERMANY SCL (L)

--- --- --- ----- --------------------- -X - - - - -
X
----------------
HONG KONG co (L)
--- --- --- ----- --------------------- -X - - - - -
X
----------------
INDONESIA PAl 3 (P)
----------------
IRELAND
--- --- --- ----- ---------------------
X
CA 1963 (L)
-X - - - - -
-X - - - - -
X
----------------
ITALY
--- --- --- ----- ---------------------
CIVIL CODE (L)
----------------
JAPAN
---
X
--- --- ----- ---------------------
FSR (L)
-X - - - - -
--- --- ----- --------------------- -X - - - - -
X
----------------
MALAYSIA
--- lAS 4 (P)
--- --- --- ----- --------------------- -X - - - - -
X
----------------
MEXICO IMCP C-6 (P)
--- --- ----- --------------------- - - -N -A - -
X
----------------
NEW ZEALAND
--- CA (L); SSAP 9 (P)
--- --- --- ----- --------------------- -X - - - - -
X
----------------
PHILIPPINES SEC (L)
--- --- --- ----- --------------------- - - - - - -0
X
----------------
PORTUGAL DL (L)
--- --- --- ----- --------------------- -X - - - - -
X
----------------
SOUTH AFRICA CA 1973 (L)
--- --- --- ----- --------------------- - - -X - - -
X
----------------
SPAIN PGC (L)
--- --- --- ----- --------------------- - -X - - - -
X
----------------
SWITZERLAND
--- --- ----- --------------------- - - - - - -X
X
---------------- ---
THAILAND MR 2 (L)
--- --- --- ----- --------------------- -X - - - - -
X
----------------
UNITED KINGDOM CA 1981 (L)
----------------
UNITED STATES
X
--- --- --- ----- ---------------------
APBO 12 (P)
-X - - - - -
--- --- --- ----- --------------------- - - -X - - -
X
----------------
URUGUAY DN (L)
--- --- --- ----- --------------------- -X - - - - -
X
----------------
ZAMBIA lAS 4 (P)
--- --- --- ----- --------------------- -X - - - - -
X
----------------
ZIMBABWE
---------------- ---
X
--- --- ----- --------------------- - - - - - -
lAS 4 (P)
104 DICOME Aim ASSET MEASUREMENT
3.21 The basis for any valuation or appraised value should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e l. i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
- - - -- - - - - - -
----- --------------------- - - - X- - -
----------------
AUSTRALIA
--- --- ---
X
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
- - - - -X -
----------------
BRAZIL
--- --- ---
X
------ --------------------- - - -N A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- --------------------- - - X- - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
c 1529 (L)
------
X
--- --- --- ----- - - -N A- - -
----------------
COLOMBIA N/A N/A N/A N/A ---------------------
----------------
DENMARK
--- ---
X
--- ----- ---------------------
FSR (P)
- - -X - - -
----------------
FINLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
FRANCE
--- ---
X
--- ----- ---------------------N - - - - - -X
----------------
GERMANY
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
co (L)
- - -X - - -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
PAl 3 (P)
-X - - - - -
----------------
IRELAND
--- ---
X
--- ----- ---------------------
M6 (P)
- -X - - - -
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L)
-X - - - - -
----------------
JAPAN
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 4 (P)
- - - - - -X
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP C-6 (P)
-X - - - - -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 9 (P)
- - -N A- - -
----------------
PHILIPPINES
--- --- ---
X
----- --------------------- - - - - - -X
----------------
PORTUGAL
--- --- ---
X
----- ---------------------
DL (L)
- - - - - -0
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
- - - -X - -
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L)
- -X - - - -
----------------
SWITZERLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - -X -
----------------
THAILAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA 1981 (L)
- - - -X - -
----------------
UNITED STATES
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -X
---------------- --- --- --- ----- --------------------- -X - - - - -
URUGUAY
----------------
ZAMBIA
X
--- ---
X
DN (L)
--- ----- ---------------------
lAS 4 (P)
- - - - - -0
----------------
ZIMBABWE ---
X
--- --- ----- ---------------------
lAS 4 (P)
- - - X- - -
---------------- --- --- --- ----- --------------------- - - - - - -
IliCOHE Aim ASSET MEASUREMENT 105
3.22 Total Fixed Assets should be analysed to disclose how much

is at cost and how much is at valuation

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
l. n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X IGJ RES I (L) NA
AUSTRALIA X X
BELGIUM X RD (L) X
CHANNEL ISLANDS X X
CHILE X C 1529 (L) X
DENMARK X N X
FRANCE X N X
INDONESIA X X
- - --
IRELAND X CA 1963 (L) X
MALAYSIA X X
PHILIPPINES X SP 2.71 (P) X
PORTUGAL X
----------------
DL (L) ----- - - - - 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND N/A N/A N/A N/A 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
106 DICOME Aim ASSE'l MEASUREMERT
3.23 Aggregate Depreciation should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
- - - -- - - - - - -
ARGENTINA ITCP RES 8 (L) NA
--- --- ----- --------------------- - X- - - - -
X
----------------
AUSTRALIA
--- CA (L)
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
-X - - - - -
--- --- --- ----- --------------------- - - -N A- - -
X
----------------
BRAZIL
--- --- --- ----- --------------------- -X - - - - -
X
----------------
----------------
CHILE
--- --- --- ----- ---------------------
X
c 86 (L) -X - - - - -
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
NIPA (P)
-X - - - - -
----------------
DENMARK
X
--- --- --- ----- ---------------------N - - -X - - -
----------------
FINLAND
--- --- --- ----- ---------------------
X
AL (L)
-X - - - - -
--- --- ----- --------------------- -X - - - - -
X
----------------
FRANCE
--- PCG 1957 (L)
--- --- --- ----- --------------------- - - - - - -X
X
----------------
GERMANY SCL (L)
--- --- ----- --------------------- -X - - - - -
X
----------------
HONG KONG
--- co (L)
--- --- ----- --------------------- - -----
X
----------------
INDONESIA
--- BAPEPAM 4(L);PAI 3(P) X
--- --- ----- --------------------- ------
X
----------------
IRELAND
--- CA 1963(L) ;SSAP 12(P) X
--- --- ----- --------------------- ------
X
----------------
ITALY
--- CIVIL CODE (L)
----------------
JAPAN
X
--- --- --- ----- ---------------------
FSR (L)
------
X
--- --- ----- --------------------- -X - - - - -

X
---
X
----------------
MALAYSIA lAS 4 (P)
--- --- ----- --------------------- -X - - - - -
X
----------------
MEXICO
--- IMCP C-6 (P)
--- --- ----- --------------------- - - -N A- - -
X
----------------
NEW ZEALAND
--- CA (L)
--- --- ----- --------------------- - -X - - - -
X
----------------
PHILIPPINES
--- SEC (L)
----------------
PORTUGAL
X
--- --- --- ----- ---------------------
DL (L)
-X - - - - -
----------------
SOUTH AFRICA
X
--- --- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
--- ----- --------------------- - -X - - - -
X
----------------
SPAIN
--- --- PGC (L)
----- --------------------- - - - - -X -
X
----------------
SWITZ ERLAND
--- --- ---
--- --- ----- --------------------- - - -X - - -
X
----------------
THAILAND
--- MR 2 (L)
--- --- ----- --------------------- --- ---
X
----------------
UNITED KINGDOM
--- CA 198l(L) ;SSAP 12(P) X
--- --- ----- --------------------- - -X - - - -
X
----------------
UNITED STATES
--- APBO 12 (P)
----- --------------------- - -X - - - -
X
----------------
URUGUAY
--- --- ---
--- ----- --------------------- -X - - - - -
X
----------------
ZAMBIA
--- --- lAS 4 (P)
----------------
ZIMBABWE
--- --- --- ----- ---------------------
X
CA 1951 (L)
-X - - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
X
IICOKE .ABD ASSET IIEASUREHEIT 107
3.24(a) The Fixed Assets and Aggregate Depreciation totals should

be disaggregated to disclose the total for Land and
Buildings

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e l. i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X ITCP RES 8 (L) NA
----------------
AUSTRALIA X
---------------------
AAS 4 (P) X
----------------
BELGIUM X
---------------------
RD (L) X
----------------
BRAZIL X
--------------------- NA
----------------
CHANNEL ISLANDS X
--------------------- X
----------------
CHILE X
--------------------- X
----------------
COLOMBIA X
---------------------
NIPA (P) X
----------------
DENMARK X
--------------------- X
----------------
FINLAND ---------------------
AL (L) NX
--- ---
X
----------------
FRANCE X
---------------------
PCG 1957 (L) X
----------------
GERMANY X
---------------------
SCL (L) X
----------------
HONG KONG --------------------- X
- - --
X
----------------
INDONESIA X
---------------------
BAPEPAM 4 (L) X
----------------
IRELAND --------------------- X - - - -
- ---
X
----------------
ITALY ---------------------
CIVIL CODE (L)
----------------
JAPAN
X
X
--- --- ---------------------
FSR (L)
X
X
--- - -
----------------
MALAYSIA ---------------------
lAS 5 (P)
- --- -
X X
----------------
MEXICO ---------------------
IMCP C-6 (P) X
--- ---
X
----------------
NEW ZEALAND ---------------------
SSAP 9 (P) NA
--- ---
X
----------------
PHILIPPINES X
---------------------
SEC (L) N X
----------------
PORTUGAL X
---------------------
DL (L) X
----------------
SOUTH AFRICA X
--------------------- X
----------------
SPAIN X
---------------------
LSA (L) X
----------------
SWITZERLAND X
--------------------- X
----------------
THAILAND X
---------------------
MR 2 (L) X
----------------
UNITED KINGDOM X
---------------------
CA 1981 (L) X
----------------
UNITED STATES ---------------------
----- --------------------- - - X
X X
---------------- --- --- X
URUGUAY
----------------
ZAMBIA X
---------------------
lAS 5 (P) X
----------------
ZIMBABWE X ---------------------
lAS 5 (P) X
---------------- ---------------------
108 IBCOHE OD ASSET KEASUR.EMERT
3.24(b) The Fixed Assets and Aggregate Depreciation totals should

be disaggregated to disclose the total for Plant and
Machinery

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- - - - ------------ -----
ARGENTINA X ITCP RES 8 (L) N A
AUSTRALIA X X
BELGIUM X RD (L) X
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X X
DENMARK X FSR ( P) X
----------------
FINLAND X --- --- ----- ---------------------
--- AL (L) NX
GERMANY X SCL (L) X
HONG KONG X X
INDONESIA X BAPEPAM 4 (L) X
IRELAND X X
----------------
JAPAN X --- --- ----- ---------------------
--- FSR (L) -X -
NEW ZEALAND X --- ----- ---------------------
SSAP 9 {P) - NA
PHILIPPINES X SEC (L) N X
----------------
PORTUGAL X --- --- ----- ---------------------
DL ( L) X
SOUTH AFRICA X X
SPAIN X LSA (L) X
SWITZERLAND X X
UNITED STATES X X
URUGUAY X X
ZAMBIA lAS 5 (P)
-----------------
ZIMBABWE
---
X
---X
--- ----- ---------------------
lAS 5 (P) X
X
IBCOME ARD ASSE'I MEASUJtEHKNT 109
3.24(c) The Fixed Assets and Aggregate Depreciation totals should

be disaggregated to disclose the totals for Furniture and
Fittings

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d AB CDEF

AUSTRALIA X X
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X X

DENMARK X X
FINLAND X AL (L) NX
FRANCE X PCG 1957 (L)
--- ----- ---------------------
X
GERMANY X --- SCL (L) X

HONG KONG X X
IRELAND X X

-----
X X
JAPAN X
---------------------
FSR (L) X
MALAYSIA X ---------------------
lAS 5 (P) X

PORTUGAL ---------------------
DL (L)
----
X X
SOUTH AFRICA X X
SPAIN X LSA (L) X
SWITZERLAND X X

UNITED STATES X X
URUGUAY X X
----------------
----------------
ZIMBABWE --- X lAS 5 (P) X
------~-------~-
110 DICOIIE Aim ASSET IIEASUREMERT
3.24(d) The Fixed Assets and Aggregate Depreciation totals should

be disaggregated into classifications which are relevant
to the business but which are not specified in the
requirements or recommendations

PRACTICE
.K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- - -- - - - - - -
N/A N/A N/A N/A NA
- - -N -A - -
ARGENTINA
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
AUSTRALIA
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
BELGIUM
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - - -A - -
BRAZIL
---------------- --- --- --- -----
CHANNEL ISLANDS N/A N/A N/A N/A --------------------- N
----------------
CHILE
--- --- --- -----
N/A N/A N/A N/A --------------------- - - -NA
- --
--- --- --- ----- - - -N -A - -
---------------- N/A N/A N/A N/A ---------------------
COLOMBIA
--- --- --- ----- - --A - --
---------------- N/A N/A N/A N/A --------------------- N
- - - -A - -
DENMARK
---------------- --- --- --- -----
N/A N/A N/A N/A --------------------- N
FINLAND
---------------- --- --- --- -----
N/A N/A N/A N/A --------------------- - - -
NA
---
- - -N -A - -
FRANCE
---------------- ---
GERMANY
--- --- -----
N/A N/A N/A N/A ---------------------
----------------
HONG KONG
---
X
--- --- ----- ---------------------
co (L)
- - - - --
NA
---------------- --- --- --- -----
N/A N/A N/A N/A --------------------- - - -
NA
- --
- - -N -A - -
INDONESIA
---------------- --- --- --- ----- ---------------------
SSAP 12 (P}
- - - -A - -
IRELAND X
---------------- --- --- --- -----
N/A N/A N/A N/A --------------------- N
-- -
ITALY
---------------- --- --- --- -----
N/A N/A N/A N/A --------------------- - - -N A
- - -N -A - -
JAPAN
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
MALAYSIA
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
MEXICO
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
- - -N -A - -
NEW ZEALAND
---------------- --- ---
X
--- ----- ---------------------
SEC (L)
- - -N -A - -
PHILIPPINES
----------------
PORTUGAL
--- --- --- -----
N/A N/A N/A N/A ---------------------
----------------
SOUTH AFRICA
---
X
--- --- ----- --------------------- - - -N -A - -
--- --- --- ----- - - -N -A - -
---------------- N/A N/A N/A N/A ---------------------
- - -N -A - -
SPAIN
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
SWITZERLAND
----------------
THAILAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
---------------- --- --- --- ----- --------------------- - - -N A- - -
UNITED KINGDOM X CA 1981 (L) ;SSAP 12(P)
---------------- --- --- --- ----- --------------------- - -- A - --
X APBO 12 (P) N
- - - -A - -
UNITED STATES
---------------- --- --- --- -----
N/A N/A N/A N/A --------------------- N
URUGUAY
---------------- --- --- --- ----- --------------------- - -- - --
NA
- - -- --
ZAMBIA N/A N/A N/A N/A
---------------- --- --- --- -----
N/A N/A N/A N/A
--------------------- NA
- - --
ZIMBABWE
---------------- --- --- --- ----- --------------------- - -
IIICOHE AIID ASSE'l MEASUilEMENI' 111
3.24(e) The Fixed Assets and Aggregate Depreciation totals should

be disaggregated to disclose the total for other
classifications

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- - - - - - - - - -
ARGENTINA N/A N/A N/A N/A NA
----------------
AUSTRALIA
--- --- --- -----
N/A N/A N/A N/A --------------------- - - -X - - -
----------------
BELGIUM
---
X
--- --- ----- ---------------------N - - - - - -
----------------
BRAZIL
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
---------------- --- --- --- -----
CHANNEL ISLANDS N/A N/A N/A N/A ---------------------
- - -X - - -
----------------
CHILE
--- --- --- ----- --------------------- X
N/A N/A
---- --
N/A N/A N
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
NIPA (P)
- - X- - - -
----------------
DENMARK
--- ---
X
--- ----- ---------------------
FSR (P) N
- - - - - X-
----------------
FINLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
FRANCE
---
X
--- --- ----- ---------------------N - - -X - - -
----------------
GERMANY
---
X
--- --- ----- ---------------------
SCL (L) NX
------
----------------
HONG KONG
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - 0-
----------------
INDONESIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- X- - - - -
----------------
IRELAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- -X - - - -
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L)
-X - - - - -
----------------
JAPAN
---
X
--- --- ----- ---------------------
FSR (L) N X
------
----------------
MALAYSIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -X - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP C-6 (P) N X
------
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 9 (P) N
- - N- A- - -
----------------
PHILIPPINES
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -X
----------------
PORTUGAL
---
X
--- --- ----- ---------------------
DL (L) N X
-- ----
----------------
SOUTH AFRICA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - -X - -
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L) N
- - -X -- -
----------------
SWITZERLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - X-
----------------
THAILAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -X - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA 1981 (L)
- --X ---
----------------
UNITED STATES
--- --- --- -----
N/A N/A N/A N/A ---------------------
- X -----
----------------
URUGUAY
--- --- --- -----
N/A N/A N/A N/A ---------------------
- -X ----
----------------
ZAMBIA
--- --- ---
X
----- ---------------------N -X - - - - -
----------------
ZIMBABWE
--- --- ---
X
----- ---------------------N - - X- - - -
---------------- --- --- --- ----- --------------------- - - - - - -
112 IIICOME Aim ASSE'r MEASUHMER'r
3.25(a) Movements (eg. additions, disposals, transfers,

revaluations) in Fixed Assets and Aggregate Depreciation
should be given for each category of asset disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

----------------
AUSTRALIA X X
----------------
BELGIUM X RD (L) X
----------------
BRAZIL X N A
----------------
CHANNEL ISLANDS X X
----------------
CHILE X 0
----------------
COLOMBIA X 0
----------------
----------------
FINLAND X 0
----------------
FRANCE X X
----------------
GERMANY X SCL (L) X
----------------
----------------
INDONESIA X BAPEPAM 4 (L) 0
----------------
IRELAND X X
----------------
----------------
JAPAN X
--- --- ----- ---------------------
FSR (L) X
----------------
MALAYSIA X ---------------------
IAS 5 (P) X
----------------
MEXICO X IMCP C-6 (P) 0
----------------
NEW ZEALAND X N A
----------------
PHILIPPINES
---
X X
----------------
PORTUGAL
--- X DL (L) 0
----------------
----------------
SPAIN X X
----------------
SWITZERLAND X X
----------------
THAILAND
--- --- X 0
----------------
----------------
UNITED STATES X X
----------------
URUGUAY
-------~--------
ZAMBIA
X
X IAS 5 (P) X
0
-- --
----------------
ZIMBABWE X ---------------------
lAS 5 (P) X
----------------
IBCOHE AJID ASSET IIEASUitEMER'r 113
3.25(b) Movements should be given in total only (ie. no need

to disaggregate into categories of Fixed Assets)

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X ITCP RES 8 (L) NA

AUSTRALIA X --------------------- X
BELGIUM X ---------------------
RD (L) 0
BRAZIL X --------------------- NA
CHILE X --------------------- X
COLOMBIA X ---------------------
NIPA (P)
- - - - - 0
DENMARK X ---------------------
AAPA 1981 (L) 0
FINLAND X --------------------- X
FRANCE X --------------------- X
GERMANY X ---------------------
SCL (L) 0
HONG KONG X ---------------------
co (L) - - - - - 0
INDONESIA X ---------------------
BAPEPAM 4 (L)
- - - - X
IRELAND X --------------------- - - - - 0
ITALY X ---------------------
CIVIL CODE (L) X
JAPAN X ---------------------
FSR (L) 0
MALAYSIA X
---------------------
lAS 5 (P) 0
MEXICO X
---------------------
IMCP C-6 (P) 0
NEW ZEALAND X --------------------- NA
PHILIPPINES --------------------- 0
- - -
X
PORTUGAL X ---------------------
DL (L)
- - 0
SOUTH AFRICA X ---------------------
CA 1973 (L) X
SPAIN X --------------------- X
SWITZERLAND X X
THAILAND X X
URUGUAY X 0
114 IJICOHE ARD ASSET IIEASUI.EHERT
3.26 The accounting policy for depreciation should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
- - - -- - - - - - -
----------------
AUSTRALIA
---
X
--- --- ----- --------------------- -X - - - - -
AAS 6 (P)
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
- -X - - - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - -N A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
SSAP 2&12 (P)
- -X - - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
c 86 (L) ;TB 6 (P)
-X - - - - -
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
sc (L)
- - - - -X -
----------------
DENMARK
--- ---
X
--- ----- ---------------------
FSR (P)
------
X
----------------
FINLAND
--- --- ---
X
----- --------------------- -X - - - - -
----------------
FRANCE
--- ---
X
--- ----- ---------------------
OECCA (P)
- - - -X - -
----------------
GERMANY
---
X
--- --- ----- ---------------------
SCL (L)
-X - - - - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
SSAP 123 (P)
-X - - - - -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM 2 (L)
------
X
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 2&12 (P)
-X - - - - -
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L)
-X - - - - -
----------------
JAPAN
---
X
--- --- ----- ---------------------
FSR (L)
-X - - - - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
IAS 1&4 (P)
-X - - - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP C-6 (P)
-X - - - - -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 1 (P)
- - N- A- - -
----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
SEC (L)
-X - - - - -
----------------
PORTUGAL
--- --- ---
X
----- ---------------------
DL (L)
- - - - - -0
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L)
- - - -X - -
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - -X -
----------------
THAILAND
---
X
--- --- ----- ---------------------
FAS 2 (P)
-X - - - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA1981(L);SSAP2&12(P) X
------
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
APBO 12 (P)
-X - - - - -
----------------
URUGUAY
---
X
--- --- ----- ---------------------
DN (L)
- - - - X- -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
IAS 1&4 (P)
-X - - - - -
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------
IAS 1&4 (P)
-X - - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
IliCOME ABD ASSET MEASUREHER'l 115
3.27 Depreciation methods (ie. straight line, reducing balance etc)

should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- --- - - - - - -
ARGENTINA GAAP (P) NA
----------------
AUSTRALIA
--- X
--- --- ----- ---------------------
AAS 6 (P)
- - - -- -
----------------
BELGIUM
--- --- --- ----- ---------------------
X
RD (L)
X
- -X - - - -
----------------
BRAZIL
---X --- --- ----- ---------------------
X
LAW 6.404 (L)
- - N- A- - -
----------------
CHANNEL ISLANDS
--- --- --- ----- ---------------------
SSAP 12 (P)
- - -X - - -
----------------
CHILE
--- --- --- ----- ---------------------
X
c 86 (L) ;TB 6 (P)
-X - - - - -
----------------
COLOMBIA
X
--- --- --- ----- ---------------------
sc (L) - - - -X - -
----------------
DENMARK
--- ---
X
--- ----- ---------------------
FSR (P)
-X - - - - -
----------------
FINLAND
--- --- ---
X
----- --------------------- -X - - - - -
----------------
FRANCE
--- --- X
--- ----- ---------------------N - - - -X - -
----------------
GERMANY
--- --- --- ----- ---------------------
X
SCL (L)
-X - - - - -
----------------
HONG KONG
X
--- --- --- ----- ---------------------
co (L) -X - - - - -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM 2 (L)
-X - - - -
;..
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 12 (P)
- X- - - - -
----------------
ITALY
--- ---
X
--- ----- ---------------------
PC 4 (P)
------
----------------
JAPAN
--- --- --- ----- ---------------------
X
FSR (L)
X
-X - - - - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 4 (P)
-X - - - - -
---------------- ---
X
--- --- ----- --------------------- -X - - - - -
MEXICO
----------------
NEW ZEALAND
---
X IMCP C-6 (P)
--- --- ----- ---------------------
SSAP 3 (P)
- - -N A-- -
----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
SEC (L)
-X - - - - -
----------------
PORTUGAL
--- --- ---
X
----- ---------------------
DL (L)
- - - - - -0
----------------
SOUTH AFRICA
--- --- ---
X
----- --------------------- - - -X - - -
--- --- --- ----- ---------------------
X
----------------
SPAIN PGC (1)
- - - -X - -
--- --- --- ----- --------------------- - - - - - -X
X
----------------
SWITZERLAND
--- --- --- ----- ---------------------
X
----------------
THAILAND FAS 2 (P)
-X - - - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA 1 981 ( L) ; SSAP 12(P) X
------
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
APBO 12 (P)
-X - - - - -
----------------
URUGUAY
---
X
--- --- ----- ---------------------
DN (L)
- - - - -X -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 4 (P)
------
----------------
ZIMBABWE
--- --- --- ----- ---------------------
X
lAS 4 (P)
X
- -----
---------------- --- --- --- ----- --------------------- - - - - - -
X X
116 IBCOME AliD ASSET MEASUilEHEII'l
3.28 The estimated depreciable lives or the depreciation rates

of each category of Fixed Assets should be disclosed

PRACTICE
R
e
c p N p
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d AB CDE F
--------- -- -- -- ----1------------ - - -- - -
ARGENTINA X ICJ RES I (L) N A
AUSTRALIA X X
BELGIUM X
--------------------- X

CHILE X X
COLOMBIA X SC (L) X
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X SCL (L) X
HONG KONG X ---------------------

co (L) X
INDONESIA X X

ITALY X
---------------------
PC 4 (P) X
JAPAN X FSR (L) X


PHILIPPINES X ---------------------
SEC (L) X
PORTUGAL X DL (L) X
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED STATES X X
URUGUAY X DN (L) 0
ZAMBIA ---------------------
lAS 4 (P)
X
-IAS_4_(p)___________ X
X
ZIMBABWE X
IRCOIIE Aim ASSEr IIEASDllEHIIr 117
3.29 The depreciation charge for the year should be disclosed

PRACTICE
R.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- --- - - - - - -
ARGENTINA X ICJ RES I (L) NA
----------------
AUSTRALIA
---
X
--- --- ----- ---------------------
CA (L)
-
X
- - ---
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
-X - - - - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - -N -A - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
SSAP 12 (P)
-X - - - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
c 86 (L)
- -X - - - -
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
sc (L)
- -X - - - -
----------------
DENMARK
---
X
--- --- ----- ---------------------
AAPA 1981 (L)
-X - - - - -
----------------
FINLAND
---
X
--- --- ----- ---------------------
AL (L)
------
X
----------------
FRANCE
---
X
--- --- ----- ---------------------
PCG 1957 (L)
------
X
----------------
GERMANY
---
X
--- --- ----- ---------------------
SCL (L)
--- ---
X
----------------
HONG KONG
---
X
--- --- ----- ---------------------
co (L)
-X - - - - -
----------------
INDONESIA
--- --- ---
X
----- --------------------- - -X - - - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 12 (P)
-X - - - - -
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L)
-X - - - - -
----------------
JAPAN
---
X
--- --- ----- ---------------------
FSR (L)
-X - - - - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 4 (P)
-X - - - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP C-6 (P)
------
X
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 9 (P)
- - -N A ---
----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
SEC (L)
- X- - - - -
----------------
PORTUGAL
---
X
--- --- ----- ---------------------
DL (L)
-X - - - - -
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
------
X
----------------
SPAIN
---
X
--- --- ----- ---------------------
LSA (L)
- X- - - --
----------------
SWITZERLAND
--- --- ---X ----- --------------------- - - -X - - -
----------------
THAILAND
--- --- ---
X
----- --------------------- - - X- - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA 1981(1) ;SSAP 12(P) X
------
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
APBO 12 (P)
-X - - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - - -X - -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 4 (P)
-X - - - - -
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------
CA 1951 (L)
------
X
---------------- --- --- --- ----- --------------------- - - - - - -
118 IJICOHE Aim ASSEt IIEASD'R.EHERT
3.30 Depreciation methods and rates should be the same as those

laid down in the tax requirements

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
---------------- --- --- X
AUSTRALIA --------------------- X
----------------
BELGIUM
--- --- X --------------------- X
----------------
BRAZIL X ---------------------
LAW 1.598 (L) NA
----------------
----------------
CHILE X ---------------------
c 86 (L) 0
----------------
COLOMBIA X ---------------------
TA (L)
---- X
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
TAX LAW (L) X
----------------
FRANCE X --------------------- X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X ---------------------
co (L)
----0
----------------
INDONESIA
--- --- X --------------------- X
----
----------------
IRELAND X ---------------------
SSAP 12 (P) X
----------------
ITALY X --------------------- X
----------------
JAPAN X ---------------------
FSR (L) X
-----
----------------
MALAYSIA X ---------------------
lAS 4 (P) 0
----------------
MEXICO X ---------------------
IMCP C-6 (P) X
----------------
NEW ZEALAND
--- --- X --------------------- NA
----------------
PHILIPPINES X --------------------- 0
----------------
PORTUGAL X ---------------------
DL (L) X
----------------
SOUTH AFRICA X --------------------- ---- X
----------------
SPAIN X --------------------- X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM
--- --- X ---------------------
SSAP 12 (P)
----------------
UNITED STATES
--- --- X ---------------------
ARB 43 (P)
----
0
X
----------------
URUGUAY
--- --- --- X ---------------------
TAX LAW (L)
----- X
----------------
ZAMBIA X ---------------------
lAS 4 (P) X
----------------
ZIMBABWE X ---------------------
lAS 4 (P) 0
---------------- ---------------------
IBCOME Aim ASSE'r IIEASUREMERT 119
3.31 The disclosure requirements for Fixed Assets and Depreciation

do not apply in the case of immaterial items

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d AB CDE F
ARGENTINA X N A
AUSTRALIA X AAS 6 (P) N A
BELGIUM X (SEE NOTE TO 3.9) N A
BRAZIL X N A
CHANNEL ISLANDS X SSAP 12 (P) NA
CHILE X
---------------------
c 86 (L) N A
COLOMBIA X
---------------------
NIPA (P) NA
DENMARK X
---------------------
FSR (P) NA
FINLAND X AL (L) N A
FRANCE X N A
GERMANY X N A
HONG KONG X NA
INDONESIA X N A
IRELAND X SSAP 12 (P) N A
ITALY X CIVIL CODE (L) N A
JAPAN X N A
MALAYSIA X lAS 1 (P) N A
MEXICO X IMCP C-6 (P) N A
PHILIPPINES X N A
SOUTH AFRICA X CA 1973 (L) NA
SPAIN X N A
SWITZERLAND X N A
THAILAND X N A
UNITED KINGDOM X CA 1981{L);SSAP 12(P) N A
UNITED STATES X N A
URUGUAY X N A
ZIMBABWE X lAS 1 (P) NA
120 IRCOKE Aim ASSET IIEASUB.EKERT
TAXATIOB - KEASUREKERT
3.32(a) Deferred taxation should be provided in full

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X ITCP REC 7 (P) N A

BELGIUM X 0
BRAZIL X !AlB X (P) N A
CHANNEL ISLANDS X X
CHILE X TB 7, 8 & 20 (P)

--- ----- ---------------------
X
X
---
COLOMBIA sc (L) X
DENMARK X
FINLAND
--- --- X AL (L)
X
0
FRANCE X X
GERMANY X SCL (L) 0
HONG KONG X X
INDONESIA X X
IRELAND X SSAP 15 (P) N X

ITALY X 0
JAPAN X 0
MALAYSIA X lAS 12 (P) N X
MEXICO X lMCP C-12 (P) X

PHILIPPINES X ---------------------
APB 2 (P) X
PORTUGAL .X 0
SPAIN X
SWITZERLAND
--- --- X N
0
X

URUGUAY X 0
121
3.32(b) Deferred taxation should only be provided where deferment

will not continue for the fore,seeable future

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
ARGENTINA X NA
----------------
AUSTRALIA
-- --- X ---------------------
AAS 3 (P) X
----------------
BELGIUM
--- --- X --------------------- - - - - - 0
----------------
BRAZIL X --------------------- NA
----------------
----------------
CHILE X ---------------------
TB 7 (P) 0
----------------
COLOMBIA X ---------------------
sc (L) X
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
AL (L) 0
----------------
FRANCE X --------------------- X
----------------
GERMANY X ---------------------
SCL (L) 0
----------------
HONG KONG X ---------------------
----------------
INDONESIA X
----- --------------------- - - - - - 00
----------------
IRELAND X ---------------------
SSAP 15 (P) N X
----------------
ITALY X --------------------- X
----------------
JAPAN X ---------------------
----------------
MALAYSIA
--- --- X ---------------------
lAS 12 (P) N
- - - - X
0
----------------
MEXICO
--- --- X --------------------- - - - - X
----------------
NEW ZEALAND X ---------------------
SSAP 12 (P) NA
----------------
PHILIPPINES X ---------------------
APB 2 (P) X
----------------
PORTUGAL
--- --- X --------------------- - - - - - 0
----------------
SOUTH AFRICA
--- --- X ---------------------
STATEMENT 1.002 (P)
-----X
----------------
SPAIN
--- --- X --------------------- - - - - - 0
----------------
SWITZERLAND X ---------------------N 0
----------------
THAILAND X ---------------------
ED FAS 18 (P) 0
----------------
UNITED KINGDOM X ---------------------
SSAP 15 (P) NX
- - - -
---------------- --------------------- - - - -0
UNITED STATES X APBO 11 (P)
----------------
URUGUAY
--- --- X --------------------- 0
----------------
ZAMBIA
--- --- X ---------------------
lAS 12 (P) 0
----------------
ZIMBABWE X ---------------------
lAS 12 (P) X
---------------- ---------------------
122 IBCOIIE Aim ASSE'l IIEASUJlEKEIT
3.32(c) Deferred taxation should never be provided

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
----------------
AUSTRALIA X ---------------------
AAS 3 (P) X
----------------
BELGIUM --------------------- X
----------------
BRAZIL
--- --- X
X --------------------- NA
----------------
CHANNEL ISLANDS X
--------------------- X
----------------
CHILE ---------------------
TB 20 (P) X
--- --- ---
X
----------------
COLOMBIA X
---------------------
sc (L) X
----------------
DENMARK
--- --- X --------------------- X
----------------
FINLAND X ---------------------
AL (L) X
----------------
FRANCE X --------------------- X
----------------
GERMANY X
---------------------
SCL (L) X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X
--------------------- X
----------------
IRELAND X ---------------------
SSAP 15 (P) X
----------------
ITALY X
--------------------- X
----------------
JAPAN X ---------------------
cc (L) NX
----------------
MALAYSIA X
---------------------
lAS 12 (P) N X
----------------
MEXICO X
--------------------- NA
----------------
NEW ZEALAND X
---------------------
SSAP 12 (P) NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X
--------------------- X
----------------
SOUTH AFRICA ---------------------
STATEMENT 1.002 (P)
X
- -
X
----------------
SPAIN X --------------------- X - -
----------------
SWITZERLAND X ---------------------N X
----------------
THAILAND ---------------------
ED FAS 18 (P) X
----------------
UNITED KINGDOM
--- --- X
---------------------
SSAP 15 (P)
--- --- ---
X 0
----------------
UNITED STATES X ---------------------
APBO 11 (P) 0
----------------
URUGUAY
--- --- X --------------------- X
----------------
ZAMBIA X ---------------------
lAS 12 (P) X
- - --
----------------
ZIMBABWE X ---------------------
lAS 12 (P) X
---------------- ---------------------
DICOIIE AIID ASSE'l IIBASUR.EIIER'l 123
3.33(a) Where deferred tax is provided, it should be calculated

according to the liability method (ie. the balance is
adjusted whenever tax rates change)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- -- --- - - - - - -
ARGENTINA ITCP REC 7 (P) NA
----------------
AUSTRALIA
---
X
--- --- ----- ---------------------
AAS 3 (P)
------
--- --- --- ----- - - -N A- - -
X X
----------------
BELGIUM ---------------------
----------------
BRAZIL
--- --- ---
X
----- ---------------------
!AlB X (P)
- - -N A- - -
--- --- ----- -X - - - - -
X
----------------
CHANNEL ISLANDS
--- ---------------------
--- --- --- ----- - - - - - -0
X
----------------
CHILE ---------------------
TB 7 (P)
----------------
COLOMBIA
--- --- --- -----
X
---------------------
sc (L) -X - - - - -
----------------
DENMARK
--- --- --- ----- --------------------- -X - - - - -
X
--- --- ----- - - -N A- - -

X
----------------
FINLAND
---
N/A N/A N/A N/A ---------------------
----------------
FRANCE
--- --- --- ----- ---------------------N - - -N A- - -
----------------
GERMANY
--- --- --- -----
X
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
HONG KONG
--- --- --- ----- --------------------- -X - - - - -
----------------
INDONESIA
--- --- ---
X
----- --------------------- -X - - - - -
--- --- --- ----- --------------------- -X - - - - -
X
----------------
IRELAND
----------------
ITALY
--- --- ---
X
----- --------------------- - -X - - - -
----------------
JAPAN
--- --- --- -----
X
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
MALAYSIA
--- --- --- ----- ---------------------
lAS 12 (P)
- X- - - - -
----------------
MEXICO
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
NEW ZEALAND
--- --- --- ----- ---------------------
X
SSAP 12 (P)
- - N- A- - -
--- -- --- -----
X
---------------- --------------------- - - - - - -0
PHILIPPINES
----------------
PORTUGAL
--- --- --- ----- --------------------- - - -N A- - -
X APB 2 (P)
----------------
SOUTH AFRICA
--- --- ---X ----- ---------------------
X
STATEMENT 1.002 (P)
- -X - - - -
----------------
SPAIN
--- --- --- ----- --------------------- - - N- A- - -
--- --- ----- ------
X
----------------
SWITZERLAND
---
N/A N/A N/A N/A --------------------- X
----------------
THAILAND
--- --- --- ----- ---------------------
ED FAS 18 (P)
- - - - -X -
----------------
UNITED KINGDOM
--- --- ---
X
----- --------------------- -X - - - - -
--- --- --- ----- - --- --
X
----------------
UNITED STATES ---------------------
APBO 11 (P)
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - -
NA
- -
0
-
----- - - ---
X
---------------- --- --- --- --------------------- -
- -X - - - -
ZAMBIA lAS 12 (P) NA
----------------
ZIMBABWE
X
--- --- --- ----- ---------------------
lAS 12 (P)
---------------- --- --- --- ----- --------------------- - - - - - -
X
124 DCOIIE AliD ASSE'l DASUB.EHDT
3.33(b) Where deferred tax is provided, it should be calculated

according to the deferral method (ie. the balance is not
adjusted when tax rates change)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X FACPCE RES 2 (P) NA

BELGIUM X NA
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X TB 7 (P) X
COLOMBIA X SC (L) 0
DENMARK X 0
----------------
FINLAND N/A N/A N/A N/A --------------------- N A
FRANCE X N NA
GERMANY N/A N/A N/A N/A 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
----------------
JAPAN N/A N/A N/A N/A --------------------- N A
MEXICO X NA
PORTUGAL X NA
SOUTH AFRICA X ---------------------
STATEMENT 1.002 {P) X
SPAIN X
--------------------- NA
SWITZERLAND N/A N/A N/A N/A --------------------- - - 0
THAILAND X ---------------------
FAS 18 (P) X
UNITED KINGDOM X --------------------- X
UNITED STATES X ---------------------
APBO 11 (P) X
URUGUAY X --------------------- NA
ZAMBIA X ---------------------
lAS 12 (P) NA
ZIMBABWE X ---------------------
lAS 12 (P) X
---------------------
DICOIIE ABD ASSET HEASUB.EKERT 125
DISCLOSURE
3.34 Where deferred taxation is not provided in full, the financial

statements should disclose by way of note the amount which
would be provided if full provision were made

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
-- -- -- ---- - - - - - -
ARGENTINA NA
----------------
AUSTRALIA
--- --- ---X
-----
N/A N/A N/A N/A --------------------- - -----
--- --- --- ----- --------------------- - - - - - -0
X
----------------
BELGIUM
----------------
BRAZIL
--- --- --- ----- --------------------- - - -N -A - -
X
----------------
CHANNEL ISLANDS
--- --- --- ----- ---------------------
X
SSAP 15 (P)
- - - - - -0
----------------
CHILE
--- --- --- ----- --------------------- - - - - - -0
X
N/A N/A N/A N/A

------------~---
COLOMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
DENMARK
--- --- --- ----- --------------------- - - - - - -
----------------
FINLAND
--- --- --- -----
X
N/A N/A N/A N/A ---------------------N

- - - - - -0
X
----------------
FRANCE
--- --- --- ----- --------------------- - - - - - -
---------------- ---
GERMANY
--- --- -----
X
N/A N/A N/A N/A ---------------------N

- - - - - -0
X
----------------
HONG KONG
--- --- --- ----- --------------------- - - - - - -0
----------------
INDONESIA
--- --- --- ----- --------------------- - - - - - -0
X
----------------
IRELAND
--- --- --- ----- ---------------------
X
SSAP 15 (P)
------
----------------
ITALY
--- --- --- ----- --------------------- - - - - - -0
X X
----------------
JAPAN
--- --- --- ----- --------------------- - - - - - -0
X
----------------
MALAYSIA
--- --- --- ----- ---------------------
X
IAS 12 (P)
------
----------------
MEXICO
--- --- --- ----- --------------------- - - - - - -
X X
----------------
NEW ZEALAND
--- --- --- ----- ---------------------
X
SSAP 12 (P)
- - -N -A - -
X
--~------~~-----
PHILIPPINES
--- --- --- ----- APB 2 (P)
X
- - - - - -0
-~~------------------
--------~-------
PORTUGAL
--- --- --- ----- --------------------- - - - - - -0
X
----------------
SOUTH AFRICA
--- --- --- -----
X
N/A N/A N/A N/A ---------------------

----- -
----------------
SPAIN
--- --- --- ----- --------------------- - - - - - -0 X
----------------
SWITZERLAND
--- --- --- -----
X
N/A N/A N/A N/A ---------------------N

- ---- -
----------------
THAILAND
--- --- --- ----- --------------------- - - - - -
0
-
-------~--------
UNITED KINGDOM
--- --- --- ----- ---------------------
X
SSAP 15 (P)
--- ---
-----~----------
UNITED STATES
---X
--- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
X
----------------
URUGUAY
--- --- --- ----- --------------------- - - - - - -0
~---------------
ZAMBIA
--- --- --- ----- ---------------------
X
lAS 12 (P)
- - ----
---------------- --- --- --- ----- ---------------------
X
- -----
X
---------------- --- --- --- ----- --------------------- - - - - - -

126 IBCOME AIID ASSE'r MEASlJREIIER'r
3.35 The tax charge should be shown as a separate figure in the

income statement

PRACTICE
1<.
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- ---- 1----------------------------
AUSTRALIA X ---------------------
CA (L) -
X - --
BELGIUM X RD (L) X

CHANNEL ISLANDS X SSAP 8 {P) X
CHILE X C 86 (L) X
COLOMBIA X SC (L) X

FINLAND X ---------------------
AL (L) -X - - -
GERMANY X X

INDONESIA X X
IRELAND X CA 1963(L);SSAP 8(P) X

JAPAN X ---~-----------------
FSR (L) -
X
MALAYSIA X MCA (L) X
MEXICO X IMCP C-5 {P) X

NEW ZEALAND X ---------------------
CA (L); SSAP 9 (P) N A
PHILIPPINES X SEC RULE (L) X
PORTUGAL X X
SOUTH AFRICA X CA 1973(L); S1.002{P) X

SPAIN X X
SWITZERLAND X N X
UNITED KINGDOM X ---------------------
CA 1981(L); SSAP 8(P) X
UNITED STATES X ---------------------
APBO 11 (P) X
URUGUAY X X

ZIMBABWE X CA 1951 (L) X
lliCOME Aim ASSET MU.SOUIIEIT 127
3.36 The amount of foreign tax charged should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X NA
----------------
AUSTRALIA X X
----------------
BELGIUM X X
----------------
BRAZIL X NA
----------------
----------------
CHILE X 0
----------------
COLOMBIA X SC (L) 0
----------------
DENMARK X X
----------------
FINLAND X X
----------------
FRANCE X X
----------------
GERMANY X 0
----------------
----------------
INDONESIA N/A N/A N/A N/A 0
----------------
·---------------
ITALY - X X
----------------
JAPAN X 0
----------------
----------------
MEXICO X 0
----------------
NEW ZEALAND X N A
----------------
PHILIPPINES X 0
----------------
PORTUGAL X 0
----------------
SOUTH AFRICA X CA 1973(1); S1.002(P) X
----------------
SPAIN X 0
----------------
SWITZERLAND X 0
----------------
----------------
----------------
UNITED STATES X SEC Reg S-X (L) X
----------------
URUGUAY X 0
----------------
ZAMBIA X X
----------------
----------------
128 IICOIIE AIID ASSIT IIEASUJlEHIIIT
3.37 Any unusual items affecting the tax charge should be disclosed

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X CA (L) X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X SJAP (P) X
CHILE X 0
COLOMBIA X SC (L) 0
DENMARK X X
FINLAND X AL (L) X
FRANCE X X
GERMANY X X
INDONESIA X ---------------------
PAI 3 (P) X
IRELAND X X
ITALY X X
JAPAN X FSR (L) 0

MEXICO X X
NEW ZEALAND X N A
PORTUGAL X 0
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED STATES X ---------------------

APBO 11 (P) X
URUGUAY X 0

IBCOIIE .Aim ASSEr IIEASUIEIIEI'l 129
3.38 The current tax liability should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
- - - - -- ---- - - - - - -
----------------
AUSTRALIA
--- --- --- -----
X
---------------------
CA (L)
-X - - - - -
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - - - -0
----------------
BRAZIL
--- --- --- ----- ---------------------
X
LAW 6.404 (L)
- - -N A- - -
--- --- --- ----- --------------------- ------
X
----------------
----------------
CHILE
--- --- --- ----- ---------------------
X
c 86 (L)
- - -X - - -
X
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
sc (L)
- - X- - - -
----------------
DENMARK
---
X
--- --- ----- ---------------------
AAPA 1981 (L)
-X - - - - -
----------------
FINLAND
--- --- ---
X
----- --------------------- - - - - - -0
----------------
FRANCE
--- --- ---
X
----- --------------------- - - - - -X -
----------------
GERMANY
--- --- ---
X
----- --------------------- - - - -X - -
----------------
HONG KONG
--- --- --- ----- ---------------------
X
co (L)
-- ----
----------------
INDONESIA
X
--- --- --- ----- --------------------- - - -X - - -
X
----------------
IRELAND
X
--- --- --- ----- ---------------------
SSAP 8 (P)
- -X - - - -
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L)
-X - - - - -
----------------
JAPAN
---
X
--- --- ----- ---------------------
FSR (L)
-X - - - - -
----------------
MALAYSIA
X
--- --- --- ----- ---------------------
MCA (L)
-X - - - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP C-9 (P)
- -X - - - -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 9 (P)
- - N- A- - -
--- --- --- ----- --------------------- - -X - - - -
X
----------------
PHILIPPINES SEC RULE (L)
----------------
PORTUGAL
---
X
--- --- ----- --------------------- - - - - - -0
----------------
SOUTH AFRICA
--- --- ---
X
----- ---------------------
STATEMENT 1.002 (P)
- - -X - - -
--- --- --- ----- --------------------- - - - -X - -
X
----------------
SPAIN
----------------
SWITZERLAND
--- --- ---X ----- --------------------- - - - - - -X
X
----------------
THAILAND
--- --- --- ----- ---------------------
MR. 2 (L)
- - -X - - -
----------------
UNITED KINGDOM
X
--- --- --- ----- ---------------------
CA 1981 (L)
-X - - - - -
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
APBO 11 (P)
- -X - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - - - - -0
----------------
ZAMBIA
--- --- --- ----- ---------------------
X
lAS 5 (P)
-X - - - - -
----------------
ZIMBABWE
--- --- --- ----- ---------------------
X
lAS 5 (P)
-- - ---
---------------- --- --- --- ----- --------------------- - - - - - -
X X
130 DICOIIE Aim ASSET IIIASUllEIIER'I
3.39 The accounting policy for deferred taxation should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc D EF
ARGENTINA X ITCP REC 7 (P) NA

----------------
AUSTRALIA X ---------------------
AAS 6 (P) X
----------------
BELGIUM X
---------------------
RD (L) 0
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS X
---------------------
SSAP 2 (P) X
----------------
CHILE X ---------------------
TB 7 (P) X
----------------
COLOMBIA X ---------------------
sc (L) X
----------------
DENMARK X ---------------------
FSR (P) X
----------------
FINLAND N/A N/A N/A N/A --------------------- NA
----------------
FRANCE X --------------------- X
----------------
GERMANY N/A N/A N/A N/A --------------------- 0
----------------
HONG KONG ---------------------
SSAP 105 (P)
--------------------- - - - - X
X X
----------------
INDONESIA X
----------------
IRELAND X ---------------------
SSAP 2 (P) X
----------------
ITALY X ---------------------
CIVIL CODE (L) X
----------------
JAPAN N/A N/A N/A N/A --------------------- NA
----------------
MALAYSIA X
---------------------
lAS 1 & 2 (P) X
----------------
MEXICO X
---------------------
IMCP A-5 (P) X
----------------
NF.W ZEALAND X
---------------------
SSAP 1 (P) NA
----------------
PHILIPPINES X
---------------------
APB 2 (P) X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
CA 197 3(L); S1 .002 (P) X
----------------
SPAIN X --------------------- 0
----------------
SWITZERLAND N/A N/A N/A N/A --------------------- X
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------
CA 1981 (L) SSAP 2(P) X
----------------
UNITED STATES X --------------------- X
----------------
URUGUAY X
---------------------
DN (L) NA
----------------
ZAMBIA X
---------------------
lAS 1 & 12 (P) X
----------------
ZIMBABWE X ---------------------
lAS 1 & 12 (P) X
---------------- ---------------------
DCOIII AIID ASSE'l IIEASUR.EIIERT 131
B.ESJWI.CH AIID DEVELOPIIIR'l (B.&D) - IIEASUB.EIIIR'r
3.40 R&D expenditure should be written off as it is incurred in

all cases

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB CDEF
ARGENTINA X NA
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X NA
CHILE X C 77 (L) X
COLOMBIA X SC; TA (L) NA
DENMARK X X
FINLAND X 0
FRANCE X CNC (L) X
GERMANY X SCL (L)
---- -
X
HONG KONG X
INDONESIA
--- --- X
X
NA
JAPAN ---------------------
CC; BAP (L) 0
----
X
MALAYSIA X ---------------------
lAS 9 (P) X
MEXICO X
---------------------
IMCP C-8 (P) NA
PHILIPPINES X NA
PORTUGAL X NA
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X ED FAS 9 (P) NA
UNITED KINGDOM X
---------------------
CA 1981(L);SSAP 13(P) X
UNITED STATES X
---------------------
FAS 2 (P) X
URUGUAY X NA
ZIMBABWE X ---------------------
lAS 9 (P) X
---------------------
132 IBCOME AliD ASSEr MEASUREHEII!'
3.41 R&D expenditure should be deferred in all cases

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
ARGENTINA X NA
----------------
AUSTRALIA
--- --- X ---------------------
AAS 9 (P) X
----------------
BELGIUM X ---------------------
RD (L) X
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS X --------------------- NA
----------------
CHILE
--- --- X --------------------- 0
----------------
COLOMBIA X ---------------------
SC; TA (L) NA
----------------
DENMARK X --------------------- 0
----------------
FINLAND X --------------------- 0
----------------
FRANCE X ---------------------
CNC (L) X
----------------
GERMANY X ---------------------
SCL (L) 0
----------------
HONG KONG X --------------------- 0
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 13 (P) X
----------------
ITALY X ---------------------
CIVIL CODE (L) X
---------------- --- --- X ---------------------
CC; BAP (L)
JAPAN
----------------
MALAYSIA X ---------------------
lAS 9 (P)
- - - - -
0
0
----------------
MEXICO X ---------------------
IMCP C-8 (P) NA
----------------
NEW ZEALAND X ---------------------
SSAP 13 (P) NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X
----- --------------------- - - X
----------------
SPAIN X --------------------- 0
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
ED FAS 9 (P) NA
----------------
UNITED KINGDOM
--- --- ---------------------
X CA 1981( L) ; SSAP 13(P) X
----------------
UNITED STATES X ---------------------
FAS 2 (P) 0
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS 9 (P) NA
----------------
ZIMBABWE X ---------------------
lAS 9 (P) 0
---------------- --- --- --- ---------------------
DCOIIE Aim ASSEr IIEASUREIIDr 133
3.42 R&D expenditure should be written off as it is incurred in

certain circumstances

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE ----------
ABc DEF
ARGENTINA X NA
----------------
AUSTRALIA X ---------------------
AAS 9 (P) X
----------------
BELGIUM X ---------------------
RD (L) X
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
SSAP 13 (P) NA
----------------
CHILE X --------------------- X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- X
----------------
FINLAND
--- --- X --------------------- X
----------------
FRANCE X -~-------------------
CNC (L) X
----------------
GERMANY X ---------------------
SCL (L) 0
----------------
HONG KONG X --------------------- 0
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 13 (P) 0
----------------
ITALY X --------------------- X
----------------
JAPAN X ---------------------
CC; BAP (L) X
----------------
MALAYSIA X ---------------------
lAS 9 (P) 0
----------------
MEXICO X ---------------------
IMCP C-8 (P) NA
----------------
NEW ZEALAND X ---------------------
SSAP 13 (P) NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X --------------------- X
----------------
SWITZERLAND
--- --- X --------------------- X
---------------- --- ---
THAILAND X ---------------------
ED FAS 9 (P) NA
----------------
UNITED KINGDOM X ---------------------
CA 1981 (L) ;SSAP 13(P) X
----------------
UNITED STATES X ---------------------
FAS 2 (P) X
----------------
URUGUAY
--- --- X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS 9 (P) NA
----------------
ZIMBABWE X ---------------------
lAS 9 (P) X
---------------- ---------------------
134 DCOIIE Aim ASSET IIEASUilEIIEIIT
3.43 R&D expenditure should be deferred in certain circumstances

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE ----------
ABCDEF
ARGENTINA X NA
BELGIUM X X

SSAP 13 (P) NA
CHILE X X
COLOMBIA X NIPA (P) NA

DENMARK X X
FINLAND X X
FRANCE X CNC (L) X
GERMANY SCL (L)

----0
X 0
HONG KONG X
INDONESIA X N A
ITALY X X
JAPAN X CC; BAP (L) X

MEXICO X ---------------------
IMCP C-8 (P) N A
NEW ZEALAND X ---------------------
SSAP 13 (P) NA
PHILIPPINES X N A
PORTUGAL X N A
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X ED FAS 9 (P) N A

UNITED KINGDOM X ---------------------
SSAP 13 (P) X
UNITED STATES X FAS 2 (P) X
URUGUAY X NA
ZIMBABWE X lAS 9 (P) 0
IIICOllE AIID ASSET MEASUitEIIDT 135
DISCLOSUU
3.44 The amount of R&D written off should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE ----------
AB c DEF
ARGENTINA X NA
----------------
AUSTRALIA ---------------------
--------------------- - - - - X
X X
----------------
BELGIUM X
----------------
BRAZIL X
--------------------- NA
----------------
CHANNEL ISLANDS X
---------------------
SSAP 13 (P) NA
----------------
CHILE X --------------------- X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- X
----------------
FINLAND X
--------------------- 0
----------------
FRANCE X ---------------------
CNC (L) X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 13 (P) X
----------------
ITALY X ---------------------
CIVIL CODE (L) X
----------------
JAPAN X ---------------------
FSR (L) X
----------------
MALAYSIA X
---------------------
lAS 9 (P) X
----------------
MEXICO X ---------------------
IMCP C-8 (P) NA
----------------
NEW ZEALAND X
---------------------
SSAP 13 (P) NA
----------------
PHILIPPINES X
--------------------- NA
----------------
PORTUGAL X
--------------------- NA
----------------
SOUTH AFRICA X
--------------------- X
----------------
SPAIN X
---------------------
PGC (L) 0
----------------
SWITZERLAND X
--------------------- X
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X
---------------------
CA1981(L);SSAP13(P) N X
----------------
UNITED STATES X ---------------------
FAS 2 (P) X
----------------
URUGUAY X
--------------------- NA
----------------
ZAMBIA X ---------------------
lAS 9 (P) NA
----------------
ZIMBABWE X ---------------------
lAS 9 (P) X
---------------- ---------------------
136 IBCOU Aim ASSE'l IIEASUI.EHDT
3.45 The amount of R&D deferred should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
-- - - -- --- -
- -X - -
----------------
AUSTRALIA
--- --- ---
X
----- -
---------------------
AAS 9 (P)
-
----------------
BELGIUM
--- --- ---X ----- --------------------- - - -X - - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - -N A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
SSAP 13 (P)
- - -N A ---
----------------
CHILE
---
X
--- --- ----- ---------------------
TB 1 (P)
- - - -X - -
---------------- --- --- --- ----- --------------------- - - -N -A - -
-X - - - - -
COLOMBIA X NIPA (P)
----------------
DENMARK
---
X
--- --- ----- ---------------------
AAPA 1981 (L)
----------------
FINLAND
--- --- ---
X
----- --------------------- - - - - - -0
----------------
FRANCE
---
X
--- --- ----- ---------------------
PCG 1957 (L)
- - - - - -X
----------------
GERMANY
--- --- --- -----
X ---------------------
SCL (L)
- - - - - -0
----------------
HONG KONG
--- --- ---
X
----- --------------------- - - - - - -0
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 13 (P)
- - - - - -0
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L)
-X - - - - -
----------------
JAPAN
--- --- --- ----- ---------------------
FSR (L)
- - - - -X -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 9 (P)
-. - - - - -0
--- --- --- ----- - - N- A- - -
X
----------------
MEXICO ---------------------
IMCP C-8 (P)
----------------
NEW ZEALAND
--- --- --- ----- ---------------------
X
SSAP 13 (P)
- - -N A- - -
--- --- --- ----- --------------------- - - -N A- - -
X
----------------
PHILIPPINES
--- --- --- ----- --------------------- - - -N A- - -
X
----------------
PORTUGAL X
----------------
SOUTH AFRICA
--- --- ---
X
----- --------------------- -X - - - - -
----------------
SPAIN
--- --- ---X ----- --------------------- - - - -X - -
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - - -0
----------------
THAILAND
--- --- --- ----- --------------------- - - N- A- - -
--- --- ----- --------------------- - -X - - - -
X
----------------
UNITED KINGDOM
--- CA 198l(L) ;SSAP 13(P)
----------------
UNITED STATES
--- --- --- -----
X
---------------------
FAS 2 (P)
- - - - - -0
--- --- ---X ----- --------------------- - - N- A- - -
X
----------------
URUGUAY
----------------
ZAMBIA
--- --- --- ----- ---------------------
lAS 9 (P)
- - -N A- - -
--- --- --- ----- --------------------- - - - - - -0
X
----------------
ZIMBABWE X lAS 9 (P)
---------------- --- --- --- ----- --------------------- - - - - - -
IBCOIIE .AIID ASSET IIEASUREIID'I 137
3.46 The accounting policy for R&D should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
-- -- - - ---- - - - - - -
ARGENTINA GAAP (P) NA
----------------
AUSTRALIA
--- --- X
--- ----- ---------------------
AAS 6 (P)
- - - ---
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
- - -X - - -
X
--- --- --- ----- --------------------- - - -N A- - -

X
----------------
BRAZIL
----------------
CHANNEL ISLANDS
--- --- --- ----- ---------------------
X
SSAP 13 (P)
- - -N A- - -
----------------
CHILE
--- --- --- ----- ---------------------
X
TB 1 (P)
- - -X - - -
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
NIPA (P)
- - -N A- - -
----------------
DENMARK
--- ---
X
--- ----- ---------------------
FSR (P)
- - - -X - -
----------------
FINLAND
--- --- ---
X
----- --------------------- - - - - - -0
----------------
FRANCE
--- --- --- ----- ---------------------
X
CNC (L)
- - - X- - -
----------------
GERMANY
--- ---X --- ----- ---------------------
X
SCL (L)
- - - - - -X
----------------
HONG KONG
--- --- --- ----- ---------------------
SSAP 105 (P)
-X - - - - -
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - N- A- - -
--- --- --- ----- --------------------- -X - - - - -
X
----------------
IRELAND SSAP 13 (P)
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L)
------
----------------
JAPAN
--- --- ---
X
----- ---------------------
FSR (L)
X
- - - - X- -
----------------
MALAYSIA
--- --- --- ----- ---------------------
X
lAS 1&9 (P)
-X - - - - -
----------------
MEXICO
--- --- ---
X
----- ---------------------
IMCP C-8 (P)
- - -N A- - -
----------------
NEW ZEALAND
--- --- --- ----- ---------------------
X
SSAP 1&13
- - N- A- - -
----------------
PHILIPPINES
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
PORTUGAL
--- -- ---X
----- --------------------- - - -N A- - -
---------------- --- --- --- ----- ---------------------
X
-X - - - - -
- - - - X- -
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L)
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - - -0
----------------
THAILAND
--- --- ---
X
----- ---------------------
ED FAS 9 (P)
- - -N A- - -
----------------
UNITED KINGDOM
--- --- --- ----- ---------------------
X
CA 1981 ( L); SSAP 13(P)
- X- - - - -
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
FAS 2 (P)
-X - - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
ZAMBIA
--- --- --- ----- ---------------------
X
lAS 1&9 (P)
- - -N A- - -
--- --- --- ----- --------------------- -X - - - - -
X
----------------
ZIMBABWE lAS 1&9 (P)
---------------- --- --- --- ----- --------------------- - - - - - -
X
138 DCOIIE AIID ASSET IIEASUUIIEIIr
3.47 The disclosure requirements for R&D do not apply in the case
of immaterial items

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
-- -- -- - -- ---
---------------- --- --- --- ----- --------------------- - - - ---
AUSTRALIA
----------------
X
--- --- --- ----- --------------------- - - -N A- - -
NA
BELGIUM
----------------
BRAZIL
X
--- --- ---
X
----- --------------------- - - -N A- - -
(See note to 3.9)
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- --------------------- - - N- A- - -
----------------
CHILE
--- --- ---X ----- --------------------- - - N- A- - -
---------------- --- --- ---X ----- --------------------- - - -N A- - -
COLOMBIA
----------------
DENMARK
--- ---
X
NIPA (P)
--- ----- ---------------------
FSR (P)
- - -N A- - -
---------------- --- --- --- ----- --------------------- - - -N A- - -
FINLAND
----------------
FRANCE
X
--- --- ---X ----- ---------------------
CNC (L)
- - -N A- - -
----------------
GERMANY
--- --- ---
X
----- ---------------------
SCL (L)
- - -N A- - -
----------------
HONG KONG
--- --- ---X ----- --------------------- - - -N A- - -
----------------
INDONESIA
--- --- ---X ----- --------------------- - - -N A- - -
---------------- --- --- ---X ----- --------------------- - - N- A- - -
- - N- A- - -
IRELAND SSAP 13 (P)
----------------
ITALY
--- --- ---X ----- ---------------------
CIVIL CODE (L)
---------------- --- --- ---X ----- --------------------- - - N- A- - -
- - -N A- - -
JAPAN FSR (L)
----------------
MALAYSIA
--- --- ---
X
----- ---------------------
IAS Preface (P)
----------------
MEXICO
--- --- ---
X
----- ---------------------
IMCP C-8 (P)
- - -N A- - -
----------------
NEW ZEALAND
--- --- ---
X
----- ---------------------
SSAP 6 (P)
- - N- A- - -
----------------
PHILIPPINES
--- --- ---X ----- --------------------- - - N- -A - -
----------------
PORTUGAL
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
SOUTH AFRICA
--- --- ---X ----- --------------------- - - N- A- - -
---------------- --- --- --- ----- --------------------- - - N- A- - -
SPAIN
----------------
SWITZERLAND
X
--- --- ---
X
----- --------------------- - - -N A- - -
PGC (L)
----------------
THAILAND
--- ---
X
--- ----- --------------------- - - N- A- - -
----------------
UNITED KINGDOM
--- --- ---X ----- ---------------------
CA 1981 (L) ;SSAP 13(P)
- - -N A- - -
----------------
UNITED STATES
--- --- ---X ----- --------------------- - - -N A- - -
----------------
URUGUAY
--- --- ---X ----- --------------------- - - N- A- - -
----------------
ZAMBIA
--- --- ---
X
----- ---------------------
IAS Preface (P)
- - -N A- - -
----------------
ZIMBABWE
--- --- ---X ----- ---------------------
IAS Preface (P)
- - N- A- - -
---------------- --- --- --- ----- --------------------- - - - - - -
IBCOIIE AIID ASSE'l HEASOB.EIID'I' 139
LEASES - HEAS1JllEMEIT
3.48 There is a clear distinction between operating leases

(usually where the asset is hired for a period of time then
returned to the lessor) and finance leases (where the
normal risks and rewards of ownership are transferred to
the lessee)

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X --------------------- X
BELGIUM X --------------------- X
BRAZIL X --------------------- NA
CHILE X --------------------- 0
COLOMBIA X ---------------------
NIPA (P) NA
DENMARK X --------------------- N A
FINLAND X --------------------- NA
FRANCE X ---------------------
CNC (L) X
GERMANY X ---------------------
ITR; GOB (L) X
HONG KONG X --------------------- - - - - 0
INDONESIA X ---------------------
PAl 2 (P) X
-- - -
IRELAND X --------------------- - - - - 0
ITALY X ---------------------
CIVIL CODE (L)
-----0
JAPAN X ---------------------
JICPA (P) NA
MALAYSIA X --------------------- X
MEXICO X ---------------------
IMCP C-6 (P)
- - - - X
NE.V ZEALAND X --------------------- NA
PHILIPPINES X --------------------- 0
PORTUGAL N/A N/A N/A N/A ---------------------N N A
SOUTH AFRICA X --------------------- X
SPAIN X --------------------- 0
SWITZERLAND X ---------------------
IH (P) NA
THAILAND X --------------------- N A
UNITED STATES X ---------------------
FAS 13 (P) X
URUGUAY X --------------------- NA
ZAMBIA X --------------------- NA
ZIMBABWE X --------------------- 0
--------------------- - - - -
140 DCOME AID ASSI'l IIIASUUIIEIT
3.49 Assets leased under finance leases should be capitalised by

the lessor

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X RD (L) X
CHILE X X
DENMARK X N A
FINLAND X AL (L) N A
FRANCE X CNC (L) 0
GERMANY X ITR (L) N A
HONG KONG X N A
INDONESIA X N A
IRELAND X X
JAPAN X ---------------------
JICPA (P) NA
MALAYSIA X X
MEXICO X NA
NEW ZEALAND X
PHILIPPINES
--- --- X
N A
N A
PORTUGAL N/A N/A N/A N/A N NA
SOUTH AFRICA X NA
SPAIN X PGC (L) N A
SWITZERLAND X IH (P) NA
THAILAND X NA
UNITED KINGDOM X X
UNIT ED STATES X FAS 13 {P) X
URUGUAY X N A
ZAMBIA X ---------~----------- N A
ZIMBABWE X NA
IICOKB AJID ASSE'l IIBASUitEKBIT 141
3.50 Assets leased under finance leases should be capitalised

by the lessee

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
AUSTRALIA ----
------------ X
--------------------- X
------------
BELGIUM ---- X --------------------- X
------------
BRAZIL ---- X
--------------------- NA
------------ ----
CHANNEL ISLANDS X
------------ --------- NA
------------
CHILE ---- --------------------- X
---- --- ---
X
------------
COLOMBIA X
------------
NIPA (P) --------- NA
------------
DENMARK ---- X ------------ --------- NA
------------
FINLAND ---- X
--------------------- NA
------------
FRANCE ---- X
------------
CNC (L) --------- X
------------
GERMANY ---- X
------------
ITR (L) --------- X
------------
HONG KONG ---- X
------------ --------- X
INDONESIA ---- X
------------ PAl 2 (P) ---------
------------ NA
------------
IRELAND ---- X
------------ --------- X
------------
ITALY ---- X
------------ ---------
CIVIL CODE (L) 0
------------
JAPAN ---- X JICPA (P) ---------
------------ NA
------------
MALAYSIA ---- X
------------ --------- 0
------------
MEXICO ---- X ------------
IMCP C-6 (P)--------- X
NmJ ZEALAND ----

------------ X
------------ --------- NA
PHILIPPINES ----
------------ ---------------------
---
X X
------------
PORTUGAL ---- N/A N/A N/A N/A ------------ ---------N NA
SOUTH AFRICA----
------------ X
------------ --------- X
------------
SPAIN ---- X
------------
PGC (L) --------- 0
------------
SWITZERLAND ---- X
------------
IH (P) --------- NA
------------
THAILAND ---- ------------ --------- NA
------------ ----
UNITED KINGDOM
--- --- X
X
--------------------- X
UNITED STATES---- X
------------ FAS 13 (P) --------- X
------------
------------
URUGUAY ---- X
--------------------- NA
------------ ---- --------------------- NA
ZAMBIA
------------
ZIMBABWE ----
X
----- ---------------------
--------------------- - - - - -
X 0
----------------
142 IBCOIIE AIID ASSE'r IIEASUB.EIIEBT
DISCLOSURE
3.51 Where assets leased are capitalised by the lessee, the amount
capitalised should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHILE X --------------------- X
COLOMBIA N/A N/A N/A N/A --------------------- NA
DENMARK
--- --- X --------------------- NA
FINLAND X --------------------- NA
FRANCE X
---------------------
CNC (L) X
GERMANY ---------------------
ITR (L)
--------------------- X - - - -
X X
HONG KONG X
INDONESIA X ---------------------
PAl 2 (P) NA
IRELAND X --------------------- X
ITALY X ---------------------
CIVIL CODE (L) 0
JAPAN ---------------------
JICPA (P) NA
MALAYSIA
--- --- X
X
--------------------- 0
MEXICO X ---------------------
IMCP C-6 (P) X
N:m-1 ZEALAND X ---------------------
SSAP 9 (P) NA
PHILIPPINES X --------------------- X
SOUTH AFRICA X --------------------- X
SPAIN X PGC (L) 0
SWITZERLAND
THAILAND
--- --- X
X
N A
N A
UNITED KINGDOM X X
URUGUAY X ---------------------
DN (L) N A
ZAMBIA X N A
ZIMBABWE X 0
IIICOIIE Aim ASSET IIEASUB.EIIEIIT 143
3.52 The lessee should disclose amounts expensed (whether or

not the lease is capitalised)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X --------------------- NA
----------------
CHANNEL ISLANDS X --------------------- - - NA
----------------
CHILE X --------------------- X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- NA
----------------
FINLAND
--- --- X --------------------- NA
----------------
FRANCE X ---------------------
CNC (L) N 0
----------------
GERMANY X ---------------------
ITR (L) X
----------------
HONG KONG
--- --- X --------------------- X - - - -
----------------
INDONESIA X ---------------------
PAI 2 (P) X
----------------
IRELAND X --------------------- X
----------------
ITALY X ---------------------
CIVIL CODE (L) 0
----------------
JAPAN X ---------------------
JICPA (P) NA
----------------
MALAYSIA X ---------------------
MCA (L) X
----------------
MEXICO X ---------------------
IMCP C-6 (P) X
----------------
NE.W ZEALAND X ---------------------
SSAP 9 (P) NA
----------------
PHILIPPINES X --------------------- X
----------------
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
----------------
SPAIN X ---------------------
----------------
SWITZERLAND
--- --- X --------------------- NA
0
----------------
THAILAND
--- --- X --------------------- NA
----------------
UNITED KINGDOM
--- --- X --------------------- X
----------------
UNITED STATES X ---------------------
FAS 13 (P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE X --------------------- 0
---------------- --------------------- - - - - -
144 IICOIIE AliD ASSE'l' DASUI.EIIEIIIr
3. 53 The lessee should disclose future commitments to pay lease

rentals (ie. amounts and time periods)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F
ARGENTINA X NA
----------------
AUSTRALIA ---------------------
CA (L)
--- --- -----
X X
----------------
BELGIUM ---------------------
----------------
BRAZIL
X
X
--- --- ----- ---------------------
LAW 6.404 (L) NA
X
----------------
----------------
CHILE X
--------------------- X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- NA
----------------
FINLAND X --------------------- NA
----------------
FRANCE X ---------------------
CNC (L) X
----------------
GERMANY X ---------------------
ITR (L) 0
----------------
HONG KONG X --------------------- 0
----------------
INDONESIA X
---------------------
PAl 2 (P) X
----------------
IRELAND X --------------------- X
----------------
ITALY X ---------------------
CIVIL CODE (L) 0
----------------
JAPAN X ---------------------
JICPA (P) NA
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
IMCP C-6 (P) X
----------------
NEW ZEALAND --------------------- NA
----------------
PHILIPPINES
--- ---
X
X
----- --------------------- - - X
----------------
PORTUGAL N/A N/A N/A N/A ---------------------
N NA
----------------
SOUTH AFRICA
--- --- X --------------------- X
----------------
SPAIN X --------------------- 0
----------------
SWITZERLAND --------------------- NA
----------------
THAILAND
--- --- X
X --------------------- NA
----------------
----------------
UNITED STATES X ---------------------
FAS 13 (P) X
----------------
URUGUAY --------------------- NA
----------------
ZAMBIA
--- --- X
X --------------------- NA
----------------
ZIMBABWE X --------------------- 0
---------------- ---------------------
DICOIIE AliD ASSE'l IIEASUB.EIIDT 145
3.54 The accounting policy for leases should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- - - - - ---- - - - - - -
ARGENTINA NA
----------------
AUSTRALIA
--- --- ---
X
---- ---------------------
AAS 6 (P)
- - - - - -X
----------------
BELGIUM
---
X
--- --- ----- -------~------------- - - - - -X -
----------------
BRAZIL
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
CHANNEL ISLANDS
--- --- --- ----- ---------------------
X
SSAP 2 (P)
- - -N A---
---------------- --- --- ---
X
----- --------------------- - - - - - -0
- - N- A- - -
CHILE
----------------
COLOMBIA
--- --- --- ----- ---------------------
X
NIPA (P)
---------------- --- --- ---
X
----- --------------------- - - -N A- - -
DENMARK
----------------
FINLAND
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
FRANCE
--- --- ---
X
----- --------------------- - - -X - - -
----------------
GERMANY
--- --- ---
X
----- ---------------------
ITR (L)
- - - - - -X
----------------
HONG KONG
--- --- --- ----- ---------------------
X
SSAP 105 (P)

- - - - - -0
----------------
INDONESIA
---
X
--- --- ----- ---------------------
PAl 2 (P)
- - - X- - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 2 (P)
- - - - X- -
----------------
ITALY
--- --- ---
X
----- ---------------------
CIVIL CODE (L)
- - - - - -0
----------------
JAPAN
--- --- ---X ----- ---------------------
X
JICPA (P)
- - N- A- - -
----------------
MALAYSIA
--- --- --- ----- ---------------------
IAS 1 (P)
- - - - - -X
----------------
MEXICO
--- --- ---
X
----- ---------------------
IMCP A-5 (P)
- - - - - -X
----------------
NE.ll ZEALAND
--- --- --- ----- ---------------------
X
SSAP 1 (P)
- - N- A- - -
----------------
PHILIPPINES
--- --- ---
X
----- --------------------- - - - - - X-
----------------
PORTUGAL
--- --- --- -----
X
N/A N/A N/A N/A ---------------------N

- - -N A- - -
---------------- --- --- --- ----- --------------------- - - - - X- -
SOUTH AFRICA
----------------
SPAIN
--- --- ---
X CA 1973 (L)
----- --------------------- - - - - - -0
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - N- A- - -
---------------- --- --- ---
X
----- --------------------- - - -N A- - -
- - - - -X -
THAILAND
----------------
UNITED KINGDOM
--- --- --- ----- ---------------------
X
CA 1981(L) ;SSAP 2(P)

---------------- --- ---
X
--- ----- --------------------- - - X- - - -
UNITED STATES
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - -N A- - -
FAS 13 (P)
--- --- --- ----- --------------------- - - -N A- - -

X
----------------
ZAMBIA lAS 1 (P)
----------------
ZIMBABWE
--- --- --- ----- ---------------------
X
IAS 1 (P)
- - -N A- - -
---------------- --- --- --- ----- --------------------- - - - - - -
X
146 IIICOIIE AID ASSET IIEASUitEIIEI'I
3.55 The disclosure requirements for leases do not apply in the

case of Lmmaterial items

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB cDEF
-- --- -- - - - - - -
ARGENTINA X NA
----------------
AUSTRALIA
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
BELGIUM
--- --- ---X ----- ---------------------
(See note to 3.9)
- - -N A- - -
----------------
BRAZIL
--- --- ---
X
----- --------------------- - - - - - -
NA
---------------- --- --- --- ----- --------------------- - - - ---
----- --------------------- - - -N A- - -
---------------- --- --- ---
- - N- A- - -
CHILE X
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
NIPA (P)
----------------
DENMARK
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
FINLAND
--- --- ---
X
----- --------------------- - - N- A- - -
---------------- --- --- --- ----- --------------------- - - N- A- - -
- - -N A- - -
FRANCE X
----------------
GERMANY
--- --- ---
X
----- ---------------------
ITR (L)
----------------
HONG KONG
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
IRELAND
--- --- ---
X
----- --------------------- - - -N A- - -
---------------- --- --- --- ----- --------------------- - - N- A- - -
- - N- A- - -
ITALY X CIVIL CODE (L)
----------------
JAPAN
--- --- --- -----
N/A N/A N/A N/A ---------------------
----------------
MALAYSIA
--- --- ---
X
----- ---------------------
lAS Preface (P)
- -N - A- - -
---------------- --- --- --- ----- --------------------- - - N- A- - -
- - -N A- - -
MEXICO X IMCP C-6 (P)
---------------- --- --- --- ----- ---------------------
----- --------------------- - - -N A- - -
---------------- --- --- ---
- - N- A- - -
PHILIPPINES X
----------------
PORTUGAL
--- --- --- -----
N/A N/A N/A N/A ---------------------N
----------------
SOUTH AFRICA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A---
----------------
SPAIN
--- --- ---X ----- --------------------- - - N- A- - -
----------------
SWITZERLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
THAILAND
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
UNITED KINGDOM
--- --- ---
X
----- ---------------------
CA 1981 (L)
- - -N A- - -
----------------
UNITED STATES
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
ZAMBIA
--- --- ---X ----- ---------------------
lAS Preface (P)
- - N- A- - -
---------------- --- --- ---
X
----- ---------------------
lAS Preface (P)
- - N- A- - -
---------------- --- --- --- ----- --------------------- - - - - - -
ZIMBABWE
DCOIIE Aim ASSET IIEASUll.EIIER'l' 147
PIRSIORS - IIEASUREHBIT
3.56 Employers have a pension plan (or pension scheme) for their
employees

PRACTICE
1{
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d d
e e
d
e
d
SOURCE -----------
AB cDEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL --------------------- NA
----------------
CHANNEL ISLANDS
--- --- X
---------------------
-------------~-- --- ---
X X
CHILE X --------------------- 0
----------------
COLOMBIA X ---------------------
sc (L) X
- - - -
----------------
DENMARK X --------------------- 0
----------------
FINLAND ---------------------
----------------
FRANCE
--- --- X
X ---------------------
0
X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X --------------------- X
----------------
IRELAND X --------------------- X
----------------
ITALY X --------------------- X
----------------
JAPAN X --------------------- X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
IMCP D-3 (P) X
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X ---------------------
RA 4917;PD 220 (L) X
----------------
PORTUGAL ---------------------
----------------
SOUTH AFRICA
--- --- X
X --------------------- X
0
----------------
SPAIN X --------------------- X
----------------
SWITZERLAND ---------------------
----------------
THAILAND
--- --- X
X
--------------------- X
X
----------------
-.---------------
UNITED STATES X --------------------- X
____
----------------
.,., ___________
URUGUAY X --------------------- NA
ZAMBIA X
--------------------- X
---------------
ZIMBABWE X --------------------- X
---------------- ---------------------
148 IICOIIB AliD ASSII' IIEASUB.EIIEIIT
3.57(a) The charge to income consists of the entity's current

contribution to the pension scheme

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X LAW 6 • 40 4 ( L) N A
CHANNEL ISLANDS X X
CHILE X N A
COLOMBIA X SC (L) X
DENMARK
FINLAND
--- --- X
X
N A
NA
FRANCE X
GERMANY X ITR (L) X
HONG KONG
INDONESIA
--- --- X
X X
X
IRELAND X 0
ITALY X X
JAPAN X JICPA (P) X
MALAYSIA X X
MEXICO X IMCP D-3 (P) X
NEW ZEALAND X NA
PORTUGAL X NA
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED KINGDOM X X
URUGUAY NA
--- ---
X
ZAMBIA X 0
ZIMBABWE X X
IBCOIIE AIID ASSE'l IIEASUREIIEir 149
3.57(b) The charge to income consists of the entity's current

contribution to the pension scheme plus the making-up of
any shortfall that arises from a comparison of the pension
scheme's assets and liabilities

PRACTICE
1(
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABCDE F
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHILE X X
COLOMBIA X SC (L) 0
DENMARK X NA
FINLAND NA
FRANCE
--- --- X
X X
GERMANY X ITR (L) 0

HONG KONG X 0
INDONESIA X 0
IRELAND X X
ITALY X X
JAPAN X JICPA (P) 0
MALAYSIA X X
MEXICO X IMCP D-3 (P) 0
NEW ZEALAND X N A
PORTUGAL X N A
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM
--- --- X X
URUGUAY X N A
ZAMBIA X 0
ZIMBABWE X X
150 IICOIIE Aim ASSET IIEAS'DREIID'I'
DISCLOSUJlE
3.58(a) The accounting policy for pension costs should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DE F
-- -- -- ---- - - - - - -
ARGENTINA NA
----------------
AUSTRALIA
--- --- --- ----- ---------------------
X
AAS 6 (P)
- - - ---
---------------- --- --- --- ----- ---------------------
X
--- ---
X
BELGIUM
----------------
BRAZIL
--- --- --- ----- --------------------- - - -N -A - -
X RD (L) X
----------------
CHANNEL ISLANDS
-- --- --- ----- ---------------------
X
SSAP 2 (P)
------
--- --- --- ----- --------------------- - - -N -A - -
X X
----------------
CHILE
---------------- --- --- --- ----- ---------------------
X
sc (L) -- - - - -
COLOMBIA
----------------
DENMARK
--- --- --- ----- --------------------- - - -N -A - -
X X
----------------
FINLAND
--- --- --- ----- --------------------- - - -N -A - -
X
---------------- --- --- --- ----- --------------------- - - - - - -

X
---------------- --- --- --- ----- --------------------- - - - - - -0

FRANCE X X
-- ----
GERMANY ITR (L)
---------------- --- --- --- ----- ---------------------
X
- - - - - -0
HONG KONG SSAP 105 (P)
----------------
INDONESIA
--- --- --- ----- ---------------------
X
BAPEPAM 2 (L)
X
----------------
IRELAND
--- --- --- ----- ---------------------
X
SSAP 2 (P)
- - - - - -0
---------------- --- --- --- ----- --------------------- - - - - - -
X
- - - - - -0
ITALY
----------------
JAPAN
--- --- --- ----- ---------------------
X
JICPA (P)
X
----------------
MALAYSIA
--- --- --- ----- ---------------------
X
!AS 1 (P)
- -----
----------------
MEXICO
--- --- --- ----- ---------------------
X
IMCP D-3 (P)

------
X
--- --- --- ----- --------------------- - - -N A- - -

X X
----------------
----- -
NEW ZEALAND SSAP 1 (P)
---------------- --- --- --- ----- ---------------------
X
PHILIPPINES
----------------
PORTUGAL
--- --- --- ----- --------------------- - - -N -A - -
X SEC RULE (L) X
----------------
SOUTH AFRICA
--- --- --- ----- --------------------- - - - - - -
X
----------------
SPAIN
--- --- --- ----- ---------------------
X
PGC (L)
------
X
---------------- --- --- --- ----- --------------------- - - - - - -

X X
---------------- --- --- --- ----- --------------------- - - - - - -

SWITZERLAND X X
THAILAND
--- --- --- ----- --------------------- ------
X X
----------------
- -----
UNITED KINGDOM SSAP 2 (P)
----------------
UNITED STATES
--- --- --- ----- ---------------------
X
FAS 36 (P)
X
--- --- --- ----- --------------------- - - -N -A - -

X X
----------------
URUGUAY
----------------
ZAMBIA
--- --- --- ----- ---------------------
X
!AS 1 (P)
- - - - - -0
---------------- --- --- --- ----- ---------------------
X
---- --
---------------- --- --- --- ----- --------------------- - - - - - -
DCOD Aim ASSE'l DASUREMERT 151
3.58(b) The accounting policy for pension liabilities should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
ARGENTINA X NA
----------------
AUSTRALIA X ---------------------
AAS 6 (P) N X
----------------
BELGIUM X --------------------- 0
----------------
BRAZIL X --------------------- NA
----------------
SSAP 2 (P) X
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X ---------------------
sc (L) X
----------------
DENMARK X --------------------- NA
----------------
FINLAND X --------------------- NA
----------------
FRANCE X --------------------- X
----------------
GERMANY X ---------------------
ITR (L) X
----------------
HONG KONG X ---------------------
SSAP 105 (P) X
----------------
INDONESIA X ---------------------
BAPEPAM 2 (L) 0
----------------
IRELAND X ---------------------
SSAP 2 (P) X
----------------
ITALY X --------------------- X
----------------
JAPAN X ---------------------
JICPA (P) X
----------------
MALAYSIA X ---------------------
lAS 1 (P) X
----------------
MEXICO X ---------------------
IMCP D-3 (P) X
---------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X --------------------- 0
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- 0
----------------
SPAIN X ---------------------
PGC (L) X
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------
SSAP 2 (P) X
----------------
UNITED STATES X ---------------------
FAS 36 (P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS 1 (P) X
----------------
ZIMBABWE X ---------------------
lAS 1 (P) X
---------------- --- --- ----- --------------------- - - - -
152 IBCOME AliD ASSE'r MEASUR.EHERT
3.59(a) Pension costs charged to income should be disclosed

PRACTICE
R
e
c p Np
R 0 .e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X ---------------------
RD (L) X
----------------
BRAZIL X --------------------- NA
----------------
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X ---------------------
sc (L) X
----------------
DENMARK X --------------------- NA
----------------
FINLAND X --------------------- NA
----------------
FRANCE X --------------------- X
----------------
GERMANY X ---------------------
ITR (L) X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X --------------------- 0
----------------
IRELAND X --------------------- X
----------------
ITALY
--- --- X --------------------- X
----------------
JAPAN
--- --- X ---------------------
JICPA (P) X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
IMCP D-3 (P) X
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X ---------------------
SEC RULE (L) X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X ---------------------
PGC (L) X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- X
----------------
----------------
UNITED STATES X ---------------------
FAS 36 (P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- 0
---------------- ---------------------
--------------------- - - - - -
ZIMBABWE X 0
----------------
DCOIIE ABD ASSEI' IIEASUUIIEII'I' 153
3.59(b) The entity's pension libilities should be disclosed
CURRENT REQUIREMENTS . CURRENT.

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
d t
COUNTRY
r
e
d
e
d
e
d
t
e
d
SOURCE :-----------
ABc DEF
ARGENTINA X NA
AUSTRALIA X --------------------- X
BELGIUM X --------------------- X
BRAZIL X --------------------- NA
CHILE X --------------------- NA
COLOMBIA N/A N/A N/A N/A ---------------------
--- X
-
DENMARK X --------------------- NA
FINLAND X --------------------- NA
FRANCE X --------------------- ....
X
GERMANY X ---------------------
ITR (L) X
HONG KONG X --------------------- X
INDONESIA X --------------------- X
IRELAND X --------------------- X
ITALY X --------------------- X
JAPAN X ---------------------
JICPA (P) X
MALAYSIA X ---------------------
lAS 5 (P) X
MEXICO X ---------------------
IMCP D-3 (P) X
NEW ZEALAND X --------------------- NA
PHILIPPINES X --------------------- 0
PORTUGAL
--- --- X --------------------- NA
SOUTH AFRICA
--- --- X --------------------- 0
SPAIN X ---------------------
PGC (L) X
SWITZERLAND X --------------------- 0
THAILAND X --------------------- X
UNITED KINGDOM X ---------------------
CA 1981 (L)
- - - - X
UNITED STATES X ---------------------
FAS 36 (P) X
URUGUAY X --------------------- NA
ZAMBIA X ---------------------
lAS 5 (P) X
ZIMBABWE X
--- ----- ---------------------
lAS 5 (P) X
154 IBCOHE AliD ASSE'l IIEASUREHEIIT
3.60 The number of employees and past employees involved in the

pension plan should be disclosed

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X N A
COLOMBIA X SC (L) 0
DENMARK X NA
FINLAND X N A
FRANCE X X
GERMANY X ITR (L) X
HONG KONG X 0
INDONESIA X 0
IRELAND X X
ITALY X X
JAPAN X JICPA (P) 0
MALAYSIA X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X N A
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND
-- 0
X
UNITED KINGDOM X
- - X
UNITED STATES X X
URUGUAY X N A
ZAMBIA X 0
ZIMBABWE X 0
IBCOME Aim ASSET IIEASUilEHERT 155
3.61 Details of the assets and liabilities of the pension plan

should be disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X
COLOMBIA
---
N/A N/A N/A N/A
N A
X
DENMARK X N A
FINLAND X NA
FRANCE X 0
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X JICPA (P) 0
MALAYSIA X 0
NEW ZEALAND X NA
PHILIPPINES
--- --- X
PORTUGAL
--- --- X NA
0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X X
URUGUAY X NA
ZAMBIA X 0
ZIMBABWE X X
156 IIICOIIE Aim ASSEr IIEASUREIIERT
3.62 The disclosure requirements for pensions do not apply in the

case of immaterial items

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- - - N A
----------------
BELGIUM X ---------------------
(See note to 3.9) NA
----------------
BRAZIL
--- --- X --------------------- NA
----------------
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- NA
----------------
FINLAND
--- --- X --------------------- NA
----------------
FRANCE X --------------------- NA
----------------
GERMANY X ---------------------
SCL (L) NA
----------------
HONG KONG X --------------------- NA
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X --------------------- NA
----------------
ITALY X --------------------- NA
-------------~--
JAPAN X ---------------------
JICPA (P) NA
----------------
MALAYSIA X ---------------------
lAS Preface (P) NA
----------------
MEXICO X ---------------------
IMCP D-3 (P) NA
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- NA
---------------- --------------------- - -
SPAIN
----------------
SWITZERLAND
--- --- X
X
----- --------------------- - - NN AA
----------------
THAILAND
--- --- X
----- --------------------- - - N A
----------------
UNITED KINGDOM X --------------------- NA
----------------
UNITED STATES X --------------------- NA
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS Preface (P) NA
----------------
ZIMBABWE X ---------------------
lAS Preface (P) NA
---------------- ---------------------
IBCOIIB AIID ASSEI IIEASUREIIER'I 157
EAJUUBGS PElt SBAB.E - IIEASUilEHERT
3.63{a) The definition of "Earnings" refers to profits after taxation

PRACTICE
K
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A B c D E F
ARGENTINA X N A
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
LAW 6.404 (L) N A
----------------
SSAP 3 (P) X
----------------
CHILE X --------------------- N A
----------------
COLOMBIA X ---------------------
NIPA (P) N A
----------------
DENMARK X --------------------- X
----------------
FINLAND X --------------------- N A
----------------
FRANCE X ---------------------
----------------
GERMANY X --------------------- N A
----------------
HONG KONG X ---------------------
SSAP 119 (P) X
----------------
INDONESIA X ---------------------
BAPEPAM 2 (L) X
- ----
----------------
IRELAND X -----------~---------
SSAP 3 (P) X
-----
----------------
ITALY X --------------------- N A
----------------
JAPAN X
---------------------
SRO (L) X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------N X - - - - -
----------------
NEW ZEALAND X --------------------- N A
----------------
PHILIPPINES X ---------------------
SEC (L) N A
----------------
PORTUGAL X --------------------- N A
----------------
SOUTH AFRICA X ---------------------
STATEMENT 1.004 (P) X
----------------
SPAIN X --------------------- N A
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
FAS 5 (P) X
---------------- ---------------------
SSAP 3 (P)
UNITED KINGDOM
----------------
UNITED STATES
X
X
--- --- ---------------------
APBO 15 (P) X
X
----------------
URUGUAY X --------------------- N A
----------------
ZAMBIA X --------------------- X
----------------
ZIMBABWE X ---------------------
RM 3 (P) X
--- - -
---------------- --------------------- - - - - -
158 IICOIIE AliD ASSET IIEASUREKEIT
3.63(b) The definition of "Earnings" refers to profits after

minority interests

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A B c D E F
ARGENTINA X N A
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- 0
----------------
BRAZIL X ---------------------
LAW 6.404 (L) N A
----------------
SSAP 3 (P) X
----------------
CHILE X --------------------- N A
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- N A
----------------
FINLAND X --------------------- N A
---------------- ---------------------N X
FRANCE
----------------
GERMANY
--- ---
N/A N/A N/A
X
N/A
--------------------- N A
----------------
HONG KONG X ---------------------
SSAP 119 {P) X
----------------
INDONESIA X --------------------- 0
----------------
IRELAND X ---------------------
SSAP 3 (P) X
- - - -
---------------- --------------------- N A
ITALY
---------------- --- --- X
X ---------------------
SRO (L) 0
JAPAN
----------------
MALAYSIA
--- --- X --------------------- X
----------------
MEXICO X --------------------- X
----------------
NEW ZEALAND X --------------------- N A
----------------
PHILIPPINES X ---------------------
APB 13 (P) N A
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
FAS 3 (P) 0
----------------
UNITED KINGDOM X ---------------------
SSAP 3 (P) X
----------------
UNITED STATES X ---------------------
APBO 15 (P) X
----------------
URUGUAY X --------------------- N A
----------------
ZAMBIA X --------------------- 0
----------------
ZIMBABWE X
---------------------
RM 3 {P) X
---------------- ---------------------
DCOIIE Aim ASSE'r IIEASUIEIIEft 159
3.63(c) The definition of "Earnings" refers to profits after

earnings of associated companies

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A B cDE F
ARGENTINA X N A
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- 0
----------------
BRAZIL X ---------------------
LAW 6.404 (L) N A
----------------
----------------
CHILE X --------------------- N A
----------------
COLOMBIA X --------------------- N A
----------------
DENMARK X --------------------- X
----------------
FINLAND X --------------------- N A
----------------
FRANCE X ---------------------
----------------
GERMANY X --------------------- N A
----------------
HONG KONG X ---------------------
SSAP 119 (P) X
----------------
INDONESIA X --------------------- 0
----------------
IRELAND X --------------------- X
----------------
ITALY X --------------------- N A
----------------
JAPAN X ---------------------
SRO (L) 0
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X --------------------- X
----------------
NEW ZEALAND X --------------------- N A
----------------
PHILIPPINES X --------------------- N A
----------------
PORTUGAL X --------------------- N A
----------------
SOUTH AFRICA X ---------------------
----------------
SPAIN X --------------------- N A
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
FAS 5 (P) 0
----------------
UNITED KINGDOM X
-~-------------------
X
----------------
UNITED STATES X
---------------------
APBO 15 (P) X
----------------
URUGUAY X
--------------------- N A
----------------
ZAMBIA X
--------------------- X
----------------
ZIMBABWE· X
---------------------
RM 3 (P) X
---------------- ---------------------
160 IIICOME AliD ASSE'I IIIASUREIIDI'r
3.63(d) The definition of "Earnings" refers to profit after

extraordinary items

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A B cDEF
-- -- ---- - - - - - -
ARGENTINA
---------------- --- --- ---X
----- --------------------- - - - X- - -
N A
--- --- ---

AUSTRALIA X
---------------- ----- --------------------- - - - - - -0
--- --- --- ----- --------------------- - - -N A- - -
BELGIUM X
---------------- LAW 6.404 (L)
BRAZIL
---------------- --- --- ---X ----- --------------------- - - -X - - -
X
CHANNEL ISLANDS
---------------- --- --- --- ----- --------------------- - - -N A- - -
--- --- --- ----- --------------------- - - N- A- - -
CHILE X
---------------- X NIPA (P)
COLOMBIA
---------------- --- --- --- ----- --------------------- -X - - - - -
DENMARK
----------------
X
--- --- --- ----- --------------------- - - -N A- - -
FINLAND
---------------- ---
X
--- --- ----- ---------------------
X
COMMERCIAL LAW (L)
-X - - - - -
FRANCE
---------------- --- --- --- ----- --------------------- - - -N A- - -
GERMANY
---------------- --- --- --- -----
X
X ---------------------
SSAP 119 (P)
- - - - - -X
HONG KONG
---------------- --- --- --- ----- --------------------- - - - - - -0
INDONESIA
---------------- --- --- --- -----
X
---------------------
SSAP 3 (P)
- - - - - -0
IRELAND
---------------- --- --- --- ----- --------------------- - - N- A- - -
X
ITALY
---------------- --- --- --- ----- ---------------------
X
SRO (L)
------
X
JAPAN
---------------- --- --- ---
X
----- --------------------- - - - X- - -
MALAYSIA
----------------
X
--- --- --- ----- --------------------- - - - - - X-
MEXICO
---------------- --- --- ---
X
----- --------------------- - - -N A- - -
NEW ZEALAND
---------------- --- --- --- ----- ---------------------
X
SEC (L)
- - N- A- - -
--- --- --- ----- --------------------- - - -N A- - -
PHILIPPINES X
----------------
PORTUGAL X
----------------
SOUTH AFRICA
--- --- --- -----
X ---------------------
STATEMENT 1.004{P) N
- - - - - -X
---------------- --- --- --- ----- --------------------- - - N- A- - -
--- --- --- ----- --------------------- -X - - - - -
SPAIN X
----------------
---------------- --- --- --- -----
SWITZERLAND X
---------------------
FAS 5 (P)
- - - - -X -
--- --- --- -----
THAILAND X
---------------- ---------------------
SSAP 3 {P)
- - - - X- -
UNITED KINGDOM
---------------- --- --- --- ----- ---------------------
X
APBO 15 (P)
- - - - - 0-
UNITED STATES
---------------- --- --- ---
X N
----- --------------------- - - N- A- - -
--- --- ---X ----- --------------------- - - - - - -0
URUGUAY X
----------------
ZAMBIA
----------------,--- --- --- ----- --------------------- - - - - - -X
---------------- --- --- --- ----- --------------------- - - - - - -
ZIMBABWE X RM 3 (P)
DCOIIE Aim ASSE'r IIEASUIEIIEft 161
3.63(e) The definition of "Earnings" refers to profits after other

items

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
---------------
AUSTRALIA X --------------------- 0
----------------
BELGIUM X --------------------- 0
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
SSAP 3 {P) X
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X --------------------- NA
----------------
DENMARK X --------------------- NA
----------------
FINLAND X --------------------- NA
---------------
FRANCE X ---------------------
----------------
GERMANY X --------------------- NA
----------------
HONG KONG X ---------------------
SSAP 119 (P) X
----------------
INDONESIA X --------------------- 0
------------.-----
IRELAND X ---------------------
SSAP 3 {P) X
----------------
ITALY X --------------------- NA
----------------
JAPAN X ---------------------
SRO (L) 0
----------------
MALAYSIA X --------------------- 0
----------------
MEXICO X --------------------- 0
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X ---------------------
SEC (L) NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
FAS 5 (P) 0
----------------
UNITED KINGDOM X ---------------------
SSAP 3 {P) X
----------------
UNITED STATES X ---------------------
APB 15 {P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- 0
----------------
ZIMBABWE X ---------------------
RM 3 (P) 0
---------------- ---------------------
162 DICOHI ARD ASSE'l IIEASUitEIIEBT
3.64(a) "Share" is defined as the average number of equity shares

ranking for dividend and in issue during the period

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
ARGENTINA X
----------------
AUSTRALIA
--- --- X
----- --------------------- - - XN A
----------------
BELGIUM
--- --- X --------------------- X
----------------
BRAZIL X --------------------- NA
----------------
SSAP 3 (P) X
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X ---------------------
COMMERCIAL LAW (L) NA
----------------
DENMARK X --------------------- 0
----------------
FINLAND X --------------------- NA
----------------
FRANCE X ---------------------
----------------
GERMANY X --------------------- NA
----------------
HONG KONG X ---------------------
SSAP 119 (P) X
----------------
INDONESIA X ---------------------
BAPEPAM 2 (L) 0
----------------
IRELAND X ---------------------
SSAP 3 (P) X
----------------
ITALY X --------------------- NA
----------------
JAPAN X ---------------------
SRO (L) X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X --------------------- X
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X ---------------------
SEC (L) X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X ---------------------
FAS 5 (P) X
----------------
UNITED KINGDOM X ---------------------
SSAP 3 (P) X
----------------
UNITED STATES X ---------------------
APBO 15 (P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- X
----------------
ZIMBABWE X ---------------------
RM 3 (P) X
---------------- ---------------------
IBCOIIE Aim ASSE"l' IIEASOREMEII'r 163
3.64{b) "Share" is defined in some other way

PRACTICE
1<.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
ARGENTINA X NA
AUSTRALIA X
--------------------- X
BELGIUM X --------------------- 0
BRAZIL X ---------------------
LAW 6.404 (L) NA
CHILE X --------------------- NA
COLOMBIA ---------------------
COMMERCIAL LAW (L) NA
DENMARK
--- --- X
X
--------------------- 0
FINLAND X --------------------- NA
FRANCE X ---------------------
COMMERCIAL LAW (L) N X
GERMANY X --------------------- NA
HONG KONG ---------------------
SSAP 119 (P)
INDONESIA
--- --- --- X
X ---------------------
BAPEPAM 2 (L) X
X
IRELAND X ---------------------
SSAP 3 (P) 0
ITALY X --------------------- NA
JAPAN ---------------------
SRO (L) 0
--- --- --------------------- - - - - - 0
X
MALAYSIA X
MEXICO X --------------------- X
NEW ZEALAND X
--------------------- NA
PHILIPPINES X ---------------------
SEC (L) X
PORTUGAL X --------------------- NA
SOUTH AFRICA X ---------------------
SPAIN X --------------------- NA
SWITZERLAND X --------------------- X
THAILAND X
---------------------
FAS 5 (P) X
UNITED KINGDOM X ---------------------

SSAP 3 {P) X
UNITED STATES X
---------------------
APBO 15 (P) N X
URUGUAY --------------------- NA
ZAMBIA
--- --- X
X
--------------------- 0
ZIMBABWE ---------------------
RM 3 (P) 0
--------------------- - - - - -
X
164 DCOIIE AIO) ASSEI' DASUB.EIIEIT
DISCLOSUilE
3.65(a) The EPS figure should be disclosed in the income statement

PRACTICE
K
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
CHANNEL ISLANDS
CHILE
--- --- X
X
X
0
COLOMBIA X SC {L); NIPA (P) 0
DENMARK X 0
FINLAND X 0
FRANCE X COMMERCIAL LAW (L) X
GERMANY X 0
INDONESIA
X
--- --- BAPEPAM 2 & 4 (L)
X
--- --- -----

X X
IRELAND SSAP 3 (P)
----
X X
ITALY X 0
JAPAN X SRO (L) 0
MALAYSIA
MEXICO
--- --- X X
--- ---
X X
NEW ZEALAND X N A
PORTUGAL X 0
SPAIN X 0
SWITZERLAND X 0
UNITED KINGDOM X ---------------------
SSAP 3 (P) X
UNITED STATES X ---------------------
APBO 15 (P) N X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X RM 3 (P) X
DCOIIB ARD ASSEr IIBASUREIO:llr 165
3 .65(b) The EPS figure should be disclosed in the Notes to the Accounts

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ----------------
LAW 6.404 (L) ----- NA
----------------
SSAP 3 (P) ----- X
----------------
CHILE X --------------------- 0
---------------
COLOMBIA X ----------------
sc (L); NIPA (P)----- 0
----------------
DENMARK X ---------------- ----- X
----------------
FINLAND X --------------------- 0
----------------
FRANCE X ---------------- -----
----------------
GERMANY X --------------------- 0
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X --------------------- X
----------------
IRELAND X --------------------- X
----------------
ITALY X --------------------- 0
----------------
JAPAN X ----------------
SRO (L) ----- 0
---------------- X ---------------------
--------------------- - - - - - X
MALAYSIA 0
----------------
MEXICO X
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X ----------------
SEC (L) ----- 0
----------------
PORTUGAL X --------------------- 0
----------------
SOUTH AFRICA X ---------------- -----
----------------
SPAIN
--- --- X --------------------- - - - - 0
---------------- X --------------------- X
SWITZERLAND
----------------
THAILAND X ----------------
FAS 5 (P) ----- - - - - - 0
----------------
UNITED KINGDOM X --------------------- 0
----------------
UNITED STATES X ----------------
APBO 15 (P) ----- X
----------------
URUGUAY X --------------------- 0
----------------
ZAMBIA X --------------------- X
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
166 DICOIIE AID ASSEt IIEASUR.EMER'l
3.66 The method of calculating the EPS figure should be explained

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA
--- --- X --------------------- X
BELGIUM X --------------------- 0
BRAZIL X --------------------- NA
SSAP 3 {P) X
CHILE X --------------------- NA
COLOMBIA X ---------------------
NIPA (P) NA
DENMARK X --------------------- X
FINLAND ---------------------
FRANCE
--- --- XX ----- --------------------- X N A
GERMANY
--- --- X ----- --------------------- N A
HONG KONG X ---------------------
SSAP 119 (P) X
INDONESIA X --------------------- X
IRELAND X ---------------------
SSAP 3 (P) X
ITALY X --------------------- NA
JAPAN X --------------------- NA
MALAYSIA X --------------------- X
MEXICO X --------------------- X
NF.V ZEALAND X --------------------- NA
PHILIPPINES X ---------------------
SEC (L) X
PORTUGAL X --------------------- NA
SOUTH AFRICA X ---------------------
SPAIN X --------------------- NA
SWITZERLAND X --------------------- X
THAILAND X ---------------------
FAS 5 (P) X
UNITED KINGDOM X
--- --- ----- ---------------------
SSAP 3 (P) X
UNITED STATES X ---------------------
APBO 15 {P) X
URUGUAY ---------------------
ZAMBIA
--- --- XX --------------------- X
NA
ZIMBABWE X ---------------------
RM 3 (P) X
--- --
--------------------- - - - - -
IJICOIIE AIID ASSET IIEASUB.EKD.r 167
3.67 The effect of dilution of EPS should be disclosed (i.e. taking into
account any equity shares or convertible shares, share options, etc.
which do not at present rank for dividends but could do so in the
future).

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB cDEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- 0
----------------
BRAZil X --------------------- NA
----------------
SSAP 3 (P) X
----------------
CHilE X --------------------- NA
----------------
COLOMBIA --------------------- NA
----------------
DENMARK X --------------------- 0
----------------
FINLAND X --------------------- NA
----------------
FRANCE
--- --- X --------------------- X
----------------
GERMANY X --------------------- NA
----------------
HONG KONG X ---------------------
SSAP 119 (P) X
----------------
INDONESIA X ---------------------
----------------
IRELAND X ---------------------
SSAP 3 {P) X
- - - -
0
----------------
ITALY X --------------------- NA
----------------
JAPAN X ---------------------
SRO (L) NA
----------------
MALAYSIA X --------------------- 0
----------------
MEXICO X --------------------- 0
----------------
NE.V ZEALAND X --------------------- NA
----------------
PHILIPPINES X ---------------------
APB 15 {P) X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X ---------------------
FAS 5 {P) X
----------------
UNITED KINGDOM X ---------------------
SSAP 3 {P) X
----------------
UNITED STATES X ---------------------
APBO 15 {P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- 0
----------------
ZIMBABWE X ---------------------
RM 3 (P) X
---------------- ---------------------
168 DCOIIB AJID ASSE'f IIEA.SUJlEKEliT
3.68(a) Earnings per unit of capital employed should be disclosed

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X X
DENMARK X X
FINLAND X 0
FRANCE X 0
GERMANY X X
HONG KONG X X
INDONESIA X X
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X X
MEXICO X X
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
DCOIIE AIID ASSEr IIEASUB.EDIIT 169
3.68(b) Earnings per employee should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X NA
AUSTRALIA X 0
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X 0
~UE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X X
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAilAND X 0
UNITED KINGDOM X X
UNITED STATES X 0
URUGUAY X 0
ZAMBIA X 0
ziMiAiwi--------~---~---~-i-,-----
---------------- --- --- --- -----
X
170 DCOIIE AID ASSE'r IIEASOR.EMER'l
3.68(c) Gross profit percentage should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X X
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X SRO (L) X
MALAYSIA X 0
MEXICO X X
NEll ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X
--- ---
X
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
IJICOIIE AliD ASSEt IIEASUJlEHEIIT 171
3.68(d) Operating profit as a percentage of sales should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X X
COLOMBIA X X
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X X
IRELAND X X
ITALY X X
JAPAN X SRO (L) X

MALAYSIA Y. X
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
172 IBCOME Aim ASSET IIIASUitEMDT
3.68{e) Other accounting ratios measuring the entity's performance

should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X X
COLOMBIA X SC (L) X
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X X
ITALY X X
JAPAN X SRO (L) NX

MALAYSIA X N X
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X
--- ---
X
SWITZERLAND X
--- ---
X
THAILAND X
--- ---
X
UNITED KINGDOM X X
UNITED STATES
URUGUAY ---
X
X
X
ZAMBIA X X
ZIMBABWE X X
IICOHB AIID ASSEI' IIBASURBIIEIII' 173
NOTES
Question 3.1
JAPAN: Q 3.l(a) This is not permitted where the

market decline is substantial and
unrecoverable
PHILIPPINES: Q 3.l(b) This applies in exceptional cases

involving inventories representing
agricultural and mineral products
SOUTH AFRICA: Q 3.l(c) The term 'market value' is not

defined in any legislation and thus for this
question is taken to mean 'net realisable
value, replacement value or other specified
value'
UNITED STATES: Q 3.l{b) For certain specialised industries

or products, market value is an acceptable
method of measurement (eg. precious metals
ARB 43)
Question 3.2
BELGIUM: Q 3.2{c) "Production cost" is taken to be the

total direct costs attributable to the
product, whether fixed or variable, and can
also include a proportion of indirect product
costs to the extent that these relate to the
production period
FRANCE: Q 3.2{c) Under the PCG 1957, no reference is

made to "a normal level of capacity"
GERMANY: Q 3.2(a)-(c) The law requires that any one

of these may be used
SOUTH AFRICA: Q 3.2(a)-(c) It is permitted to adopt any one

of these, but the Companies Act 1973 requires
disclosure as to whether direct and indirect
overheads are included in the valuation
Q3.2(c) The majority of companies surveyed
defined overheads as including "a proportion
of overheads" (or equivalent definition).
This has been interpreted by US to correspond
most closely to 3.2{c)
UNITED KINGDOM: Q 3.2 CURRENT PRACTICE "Production cost" is

defined as including production works or
manufacturing overheads
174
Question 3.3
CHANNEL ISLANDS : Q 3.3(d) This is recommended except when it

is not practicable
IRELAND: 3.3(b) The LIFO method is only acceptable

(under the terms of SSAP 9) where it bears a
reasonable relationship to actual cost
Q 3.3(d) This is required except when it is
not practicable
GERMANY: Q 3.3(a)-(d) The law requires that any one of

these may be used
MALAYSIA: Q 3.3(d) This is required where items of

stock can be specifically identified as they
are not ordinarily interchangeable or as they
are segregated for specific projects
UNITED KINGDOM: 3.3(b) See Note for Ireland

Q 3.3{d) This is required except when it is
not practicable
Q 3.3(e) This is permitted in certain
circumstances under current cost accounting
UNITED STATES: Q 3.3(f) The retail inventory method is

permitted
ZIMBABWE: Q 3.3{d) As for Malaysia
Question 3.4
ARGENTINA: Q 3.4{b)&(c) The definition given by 3.4(b)

that market value is estimated selling price
less estimated costs of completion and
disposal and normal profit margin is
recommended for finished goods whilst 3.4(c),
market value is replacement cost, is
recommended for raw materials
BRAZIL: Q 3.4(b) This is required for work-in-

progress and finished goods
Q 3.4(c) This is required for stores and raw
materials
ITALY: Q 3.4(a) This is recommended for finished and

semi-finished products and for assemblies,
sub-assemblies and parts of own manufacture
Q 3.4(c) This is recommended only in respect
of raw materials and supplies
PHILIPPINES: Market value is defined as 3.4(c) except that

it cannot exceed 3.4(a) nor be less than
3. 4(b)
175
SPAIN: Q3 .4 The "Plan General de Contabilidad"

recommends that the market value of finished
goods and work in progress is 'selling price
less estimated costs of completion and
disposal' whilst the market value of raw
materials and goods for resale is 'replacement
value'
UNITED STATES: As for Philippines. (The Current Practice

answer refers to this definition)
176
Question 3.6
Analysis of the categories into which stock should be classified

(when it is recommended or required)
~ ~ iN ~p ~ ~
w R p
0 s
p
K I D
M s L E
A
T
E
R
I
A
L
s
I
N
p
R
0
G
R
H
E
D
G
0
A
D
I
E
s
'
y
T
R
A
N
I
c
I
F
I
E
D
OTHER CATEGORIES
E s s
COUNTRY s I
s T
ARGENTINA X X X
AUSTRALIA X X
BELGIUM X X X Trading Stock;Advance Payments

BRAZIL N/A N/A N/A N/A N/A N/A N/A
CHANNEL ISLANDS X X X
CHILE
COLOMBIA
X X X
---X X
N/A N/A N/A N/A N/A N/A N/A

DENMARK N/A N/A N/A N/A N/A N/A N/A
FINLAND X X X
--- ---
FRANCE X X X Goods Purchased for Resale
GERMANY X X X
HONG KONG X
INDONESIA X X X
IRELAND X
ITALY X X X
JAPAN X X X X Semi-finished Products

MALAYSIA X
MEXICO X X X X Advances to Suppliers

NEW ZEALAND N/A N/A N/A N/A N/A N/A N/A
PHILIPPINES X X X
--- --- ---
PORTUGAL X X X Bought-out Items ;Packaging
SOUTH AFRICA X X X X Contracts in Progress; Consumables
SPAIN X X X Resale Products; Packaging
SWITZERLAND N/A N/A N/A N/A N/A N/A N/A
THAILAND X X X
UNITED KINGDOM X X X X
UNITED STATES X X X Construction in Progress
URUGUAY N/A N/A N/A N/A N/A N/A N/A
ZAMBIA
ZIMBABWE
X
X
--------------------·---------------
177
Question 3.6
AUSTRALIA: The Companies Act 1961 requires that "stock on

hand" and "work in progress" must be shown
separately. In addition, AAS 2 requires that
inventories should be sub-classified in a
manner appropriate to the business
UNITED KINGDOM: The Companies Act 1981 requires that

inventories must be analysed into the
following specific classifications:
1. Raw materials
2. Work in progress
3. Finished goods
unless it is more appropriate to use other
classifications due to the special needs of
the business
Quest ion 3. 9
BELGIUM: If an amount is mentioned in the financial

statements then the disclosure requirements
apply (even if the amount is immaterial)
Question 3.10
CHANNEL ISLANDS: 3.10(a) This is recommended if the outcome of

the contract cannot be assessed with
reasonable certainty
IRELAND: 3.10(a) As for Channel Islands
UNITED KINGDOM: 3.10(a) As for Channel Islands
UNITED STATES: 3.10(a)&(b) Both methods are acceptable but

their use is not considered interchangeable
and certain situations would indicate one of
the two methods should be used
Question 3.13
UNITED STATES: 3.13(b) SEC Regulation SX5-02.6d(3) requires

that the amount of progress payments netted
against inventory (work in progress) are
disclosed
178
Question 3.16
The definition of fixed assets includes:-
ARGENTINA: 3.16(e) Construction in progress
BELGIUM: 3.16(e) 1. Construction in progress

2. Advance payments
3. Assets under hereditary leases
BRAZIL: 3.16(e)l. Fixed assets which are to be
disposed of
2. Construction in progress
3. Leasehold improvements
4. Rights to telephone lines
CHILE: 3.16(e) 1. Fixed assets in transport
2. Vehicles
COLOMBIA: 3.16(e) 1. Vehicles

DENMARK: 3.16(e) 1. Tools and equipment

2. Payments on account
3. Plant under construction
4. Intangible fixed assets
FRANCE: 3.16(e) 1. Transportation equipment
2. Intangible assets
GERMANY: 3.16(e) 1. Construction in progress

2. Advance payments for fixed assets
HONG KONG: Q3.16(e) Freehold land outside Hong Kong
INDONESIA: Q3.16(e) Construction in progress
MALAYSIA: 3.16(e) 1. Intangible assets
MEXICO: 3.16(e) 1. Construction in progress
NEW ZEALAND: 3.16(e) 1. Leaseholds

2. Long term investments
3. Long term receivables
PORTUGAL: 3.16(e) 1. Tools

2. Vehicles and loading equipment
3. Development costs
5. Investments
SPAIN: Q3.16(e) 1. Transportation equipment

2. EDP equipment
3. Spare parts
179
ZAMBIA: 3.16(e) I. Vehicles

2. Properties & Mine Development
3. Mining Assets
4. Properties, Exploration, & Mine
Development
5. Staff Housing & Services
6. Capital W-I-P
7. Other Assets
ZIMBABWE: 3.16(e) 1. Vehicles
Question 3.17
AUSTRALIA: 3.17(g)&(h) Valuation is the responsibility of

directors under the Companies Act
BELGIUM: 3.17(b) When the increase in value of fixed

assets over the cost of acquisition is certain
and permanent, fixed assets may be revalued
BRAZIL: 3.17(b) The fixed assets are shown at cost or

appraised value, monetarily adjusted for
inflation, less monetarily corrected
depreciation
FINLAND: 3.17(a) CURRENT PRACTICES In addition certain

assets are also shown at their appraised value
which is not depreciated
INDONESIA: 3.17(h) This requirement is only for companies

going public otherwise it is permitted
IRELAND: 3.17(e)&(g) Technica 1 Statements are not

mandatory and hence these answers should be
interpreted as ''Not Recommended" rather than
''Not Permitted" (However, note that an auditor
may consider qualifying his report in the
event of material non-compliance)
NEW ZEALAND: 3.17(a)-(c) SSAP 9 requires that either (a) or

(b) is used to show fixed assets
SPAIN: 3.17(a)-{h) It is "Required" to show fixed

assets at cost less aggregate depreciation
except where more recent legislation allows
revaluation. The valuation is calculated by
applying officialco-efficients to cost and
depreciation but the resulting net amount
cannot be higher than the "real actual value"
considering the depreciation for use or
economic value
180
UNITED KINGDOM: 3.17(a)-(c) Under historical cost accounting

rules, fixed assets are required to be shown
at purchase price less necessary provisions.
However, under alternative accounting rules,
the assets may be included at a market value
determined as at the date of their last
valuation or at their current cost. No
depreciation is necessary only where there is
a written down valuation as at the year-end or
if the useful economic life is unlimited (eg.
freehold land)
Question 3.18
ARGENTINA: 3.18(b) In add it ion to land depreciation is

also not applied to -
a) construction in progress, and
b) fixed assets in transit
BELGIUM: 3.18(b) Land is depreciated when there is a

diminution in its value which is considered to
be permanent
Question 3.19
FRANCE: 3.19(c) The application of this method may

result in tax problems
Alternative methods of depreciation
AUSTRALIA: 3.19(d) Any method that matches cost and

revenue
BELGIUM: 3.19(d) Companies can only use the "sum of

digits" depreciation method if the tax
authorities agree
COLOMBIA: 3.19(d) 1. Flexible depreciation

2. Accelerated depreciation
JAPAN: 3.19(d) Unit of production
MALAYSIA: 3.19(d) Unit of production
PHILIPPINES: 3.19(d) Unit of production
SWITZERLAND: 3.19(d) 100% depr ec iat ion
UNITED STATES : 3.19(d) Any systematic or rational method
ZIMBABWE: 3.19(d) The life of a mine

181
Question 3.21
FRANCE: 3.21 It is recommended that the bas is of

valuation be disclosed in any year of
valuation; it is permitted to disclose it in
other years
Question 3.22
DENMARK: 3.22 It is a requirement that land and

buildings are analysed to disclose how much is
at cost and how much at aggregate depreciation
FRANCE: 3.22 This only applies to revaluations

required by law
Question 3.23
DENMARK: It is a requirement that aggregate

depreciation is disclosed for land & buildings
Question 3.24
3.24(e) REQUIREMENTS:- The answers to this question were

considered to be not applicable unless
specifically required or recommended
The fixed assets and aggregat depreciation totals should be

disaggregated to disclose the total for the following:-
BELGIUM: 3.24(c) Vehicles should be disclosed together

with furniture as a special classification in
the fixed asset details
3.24(e) 1. Construction in progress
2. Advance payments
3. Assets under hereditary leases
COLOMBIA: 3.24(e) 1. Vehicles
DENMARK: 3.24(e) 1. Tools and equipment

2. Payments in advance
3. Plant under construction
4. Intangible fixed assets
FINLAND: 3.24 The Accounting Law requires separate

disclosure in three categories:-
Land; Buildings, and Machinery, Furniture and
Fittings. This requirement was complied with
by all the companies surveyed
FRANCE: 3.24(e) 1. Transportation equipment

GERMANY: 3.24(e) 1. Plant under construction

2. Advance payments for fixed assets
182
JAPAN: 3.24(e) 1. Structures

2. Ships
3. Transportation equipment
MEXICO: 3.24(e) 1. Construction in progress
NEW ZEALAND: 3.24(e) 1. Long term investments

2. Long term receivable
3. Intangibles
4. Leaseholds
PHILIPPINES: 3.24(a) 1. The SEC rule and APB 6 require that

land (which is a non-depreciable
property) be segregated from buildings
(a depreciable property)
PORTUGAL: 3.24(e) 1. Tools

2. Vehicles and loading equipment
3. Office equipment
4. Containers
SPAIN: 3.24(e) 1. Transportation equipment

2. EDP equipment
3. Spare parts
ZAMBIA: 3.24(e) 1. Motor Vehicles

2. Properties & Mine Development
3. Mining Assets
4. Properties, Exploration and Mine
Development
5. Staff Housing and Services
6. Capital W-I-P
7. Other Assets
ZIMBABWE: 3.24(e) 1. Vehicles
CURRENT PRACTICE
CHILE: In nearly all cases where fixed assets are

analysed, the analysis is only in respect of
the cost of fixed assets, aggregate
depreciation being shown as a total amount
COLOMBIA: Where fixed assets are analysed, this analysis

may either be in respect of cost and aggregate
depreciation or cost only, with aggregate
depreciation being shown as a total amount.
Both of these are common practice with the
choice depending on the company
MEXICO: In most cases the analysis of fixed assets is

only in respect of cost, aggregate
depreciation being shown as a total amount
UNITED STATES: As for Mexico
URUGUAY: As for Mexico

183
Question 3.27
FRANCE: W.hen the reducing balance method is used the

OECCA recommends that the aggregate
depreciation using the straight-line method
should also be disclosed
Question 3.32
JAPAN: However, deferred tax principles may be

applied in the consolidated financial
statements, which are disclosed as
supplemental information in the filings with
the Ministry of Finance. (Note that
consolidated financial statements are not
required by the Commercial Code and hence are
not governed by the Commercial Code accounting
rules referred to in Q3.32(c))
MALAYSIA: Note that lAS 12 did not actually take effect

in Malaysia until 1st January 1983.
IRELAND: Deferred tax should only be provided where

deferment will not continue for the forseeable
future, except for short-term timing
differences(ie. those arising from the use of
the receipts and payments basis for tax
purposes and the accruals basis in financial
statements), which should be provided for in
full
SWITZERLAND: Deferred tax is never provided nor mentioned

in corporation law or the Institute handbook,
since in general the tax accounts must agree
with the financial accounts (Source: Federal
Tax Law)
UNITED KINGDOM: 3.32(a)&(b) As for Ireland
Question 3.33
FRANCE: There has been no tax rate change in France

for a considerable period of time
Question 3.34
FINLAND: This question is not applicable because

timing differences do not arise (i.e. there
are no items of income and expenditure
included in taxable profits in different years
from their inclusion in the financial
statements)
GERMANY: As for Finland
SWITZERLAND: As for Finland

184
Question 3.35
SWITZERLAND: In the case of banks this is required to be

shown by law
Question 3.48-3.55
PORTUGAL: The questions do not apply as there is no

leasing in Portugal
Questions 3.52&3.53
FRANCE: It is required for Credit-bail, the most

common form of finance leases
Question 3.58
AUSTRALIA: 3.59(b) The disclosure requirement only

applies to unfunded liabilities
Question 3.63
CHANNEL ISLANDS: 3.63(e) The definition of 'Earnings' refers to

profits after preference dividends
FRANCE: 3.63(b) This is not applicable because the

relevant requirements of commercial law relate
to companies not groups
IRELAND: 3.63(e) As for Channel Islands
MEXICO: 3.63(a) The definition of 'Earnings' refers to

profits after taxation and employee profit
sharing
SOUTH AFRICA: 3.63(e) As for Channel Islands
UNITED KINGDOM: 3.63(e) As for Channel Islands
UNITED STATES: 3.63(d) 'Earnings per share' present at ion is

required for net income both before and after
extra-ordinary items
Question 3.64
Share is defined as:-
FRANCE: 3.64(b) The number of equity shares at the

year-end
MEXICO: 3.64(b) The number of equity shares at the

year-end
UNITED STATES: 3.64(b) The average common shares and common

equivalent shares outstanding
185
Question 3.65
UNITED STATES: This is required only for public companies per

FAS 21
Question 3.68
Additional accounting ratios to be disclosed:-
COLOMBIA: 3.68(e) 1. Solvency

2. Efficiency
3. Liquidity
JAPAN: 3.68(e) !.Major profit and loss items as a

percentage of sales
2. Major balance sheet account items
as a percentage of total assets
CHAPTER. FOOB. FUifDS STATEMEIITS
Contents Questions
Introduction 189
Disclosure 4.1 191
Bottom-line Focus 4.2 192
Items to be included 4.3 - 4.4 197
Layout and Presentation 4.5 - 4.7 210
Measurement 4.8 213
Location of Statement 4.9 216
Notes to Statement 4.10 218
Audit 4.11 219
Comparative Figures 4.12 220
Notes 221
FURDS ST.ATEHERTS 189
IITB.ODUCTIOH
The funds statement may also be described as a statement of

source and application of funds or a statement of changes in
financial position. A funds statement presents information which
may not
be readily accessible from elsewhere in the financial
statements, and also provides details on the various sources a
company has used to obtain its finance and how such financial
resources have been expended. Funds statements are intended to
supplement and other information contained in financial
statements, and provide a different perspective by focussing on
flows of funds.
This chapter considers the different attitudes towards the fund

statement's focal point (or bottom line), that is the area to
which attention is drawn as being the most important change (eg.
net change in liquid funds). The nature and extent of disclosure
is considered, in addition to whether the funds statement is
disclosed along with the balance sheet and income statement (ie.
as a primary statement) or in the notes to the accounts.
As well as considering the layout and presentation of the funds

statement, this chapter also considers how entities treat the
acquisition and disposal of subsidiaries within the funds
statement, whether there is an inflation-adjusted funds statement
if inflation accounts are prepared and whether funds statements
are audited.
190
Su..ary of Results
The survey shows that most countries require companies to include

a funds statement in their annual report. In the remaining
countries, some companies produce a funds statement voluntarily.
Few countries have specific requirements regarding the focal
point of the funds statement, and net change in working capital
seems to be the most common requirement for the focal point in
those few countries that have specific requirements. In
practice, nearly all companies disclose profit or loss for the
period in the funds statement. Other items with a high
disclosure frequency are dividends paid, acquisitions and
disposals of fixed assets and increases or repayments of loans.
Most countries require or recommend that the net change in
working capital be disaggregated into the net changes in its
component parts.
International develop.ents
The IASC issued lAS 7, on "Statement of Changes in Financial

Posit ion", in 1977. This became effective for financial
statements covering reporting periods beginning on or after 1
January 1979. lAS 7 states that a funds statement should be
included as an integral part of the financial statements. Funds
provided from or used in the company's operations should be shown
separately from other sources or uses of funds. The statement
should disclose separately any unusual items that are not part of
the company's ordinary activities. Apart from the above, lAS 7
does not require the disclosure of specific it ems in the funds
statement. lAS 7 ends by stating that companies should adopt the
form of presentation that is most informative in the
circumstances.
In the EEC, funds statements are notable by their abs.ence from

both the Fourth Directive (1978) on "Company Accounts" and
Seventh Directive (1983) on "Consolidated Accounts".
FUBDS STATEKDrS 191
4.1 A Funds Statement should be included in the financial report

PRACTICE
R.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
-- -- -- --- - - - - - -
ARGENTINA X ITCP REC 8 (p) NA
---------------- --- --- ---
AUSTRALIA X
----- --------------------- -X - - - - -
---------------- --- --- ---
BELGIUM X
----- --------------------- - - - - -X -
---------------- ---
BRAZIL X
--- --- ----- ---------------------
LAW 6.404 (L) N
- - -N -A - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
SSAP 10 (P)
- -X - - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
c 86 (L); TB 9 (P)
-X - - - - -
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
sc (L)
- - - - -X -
----------------
DENMARK
--- --- ---
X
----- --------------------- - X- - - - -
----------------
FINLAND
---
X
--- --- ----- ---------------------
CA (L) NX
- -- - --
----------------
FRANCE
--- ---
X
--- ----- ---------------------
CNC(L);OECCA(P)COB(S)
- - -X - - -
---------------- --- --- ---
GERMANY X
----- --------------------- - - -X - - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
SSAP 116 (P)
-X - - - - -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM4(L);PAI1(P) N X
------
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 10 (P)
-X - - - - -
-----------~---- --- --- --- ----- --------------------- - - - - - -
ITALY X PC 2 (P) X
----------------
JAPAN
--- --- ---
X
----- ---------------------
NX
- - - - - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 7 (P)
-X - - - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP B-4 (P)
-X - - - - -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 10 (P)
- - -N -A - -
----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
SEC (L)
- -X - - - -
----------------
PORTUGAL
---
X
--- --- ----- ---------------------
DL (L)
- - - -X - -
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L)
- - - -X - -
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - -X - -
----------------
THAILAND
---
X
--- --- ----- ---------------------
SET (L)
- - -X - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
SSAP 10 (P)
------
X
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
APBO 19 (P)
-X - - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - - - - -0
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 7 (P)
-X - - - - -
----------------
ZIMBABWE
--- --- --- ----- ---------------------
lAS 7 (P)
------
---------------- --- --- --- ----- --------------------- - - - - - -
X X
192 FURDS STATEMEITS
4.2(a) The bottom line of the Funds Statement should be Net

Change in Working Capital

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
--- -- -- - - - - - -
----------------
AUSTRALIA
--- --- ---
X
----- --------------------- - - - - - X-
----------------
BELGIUM
--- --- ---
X
----- --------------------- - -X - - - -
----------------
BRAZIL
--- --- --- ----- ---------------------
X
LAW 6.404 (L)

- - -N A- - -
----------------
CHANNEL ISLANDS
--- --- ---
X
----- --------------------- - - -X - - -
----------------
CHILE
--- --- --- ----- ---------------------
X
C86 (L)
-X - - - - -
----------------
COLOMBIA
--- --- ---
X
----- --------------------- -X - - - - -
----------------
DENMARK
--- --- ---
X
----- --------------------- - - - - - -0
--- --- --- ----- --------------------- - - - -X - -
X
----------------
FINLAND REC (P)
----------------
FRANCE
--- ---
X
--- ----- --------------------- ------
CNC(L);OECCA(P)COB(S) X
----------------
GERMANY
--- --- ---
X
----- --------------------- - - - - -X -
----------------
HONG KONG
--- --- --- ----- ---------------------
X
SSAP 116 (P)

- - - -X - -
----------------
INDONESIA
X
--- --- --- ----- ---------------------
BAPEPAM 4 (L)
- -X - - - -
----------------
IRELAND
--- --- ---
X
----- --------------------- - - - - - -X
--- --- --- ----- --------------------- - - - -X - -
X
----------------
ITALY PC 2 (P)
----------------
JAPAN
--- --- ---
X
----- --------------------- - - - - - -0
--- --- --- ----- --------------------- - - -X - - -
X
----------------
MALAYSIA lAS 7 (P)
----------------
MEXICO
--- --- ---
X
----- ---------------------
IMCP B-4 (P)
- X- - - - -
----------------
NEW ZEALAND
--- --- ---
X
----- ---------------------
SSAP 10 (P)
- - -N A---
----------------
PHILIPPINES
--- --- --- ----- ---------------------
X
APB 20 (P)
- X- - - - -
----------------
PORTUGAL
--- --- --- ----- ---------------------
X
DL (L)
------
----------------
SOUTH AFRICA
--- --- ---
X
----- --------------------- - - - - - -0
X
----------------
SPAIN
--- --- --- ----- ---------------------
X
PGC (L)
- - X- - - -
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - - -X
--- --- --- ----- --------------------- - - -X - - -
X
----------------
THAILAND ED FAS 23 (P)
----------------
UNITED KINGDOM
--- --- ---
X
----- --------------------- - - - - -X -
--- --- --- ----- --------------------- - - X- - - -
X
----------------
UNITED STATES APBO 19 (P)
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - N- A- - -
--- --- --- ----- --------------------- - - - -X - -
X
----------------
ZAMBIA lAS 7 (P)
----------------
ZIMBABWE --- --- ---
X
----- ---------------------
lAS 7 (P)
- - - X- - -
---------------- --- --- --- ----- --------------------- - - - - - -
X
FIJIO)S STATEDIIrS 193
4.2(b) The bottom line of the Funds Statement should be Net

Chang in Liquid Funds

PRACTICE
R'
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
----------------
CHILE X --------------------- 0
----------------
COLOMBIA X --------------------- 0
----------------
DENMARK X --------------------- X
----------------
FINLAND X --------------------- 0
----------------
FRANCE X --------------------- 0
----------------
GERMANY X --------------------- X
----------------
HONG KONG X ---------------------
SSAP 116 (P) X
----------------
INDONESIA X ---------------------
BAPEPAM 4 (L) 0
----------------
IRELAND X --------------------- X
----------------
ITALY X ---------------------
PC 2 (P) X
----------------
JAPAN X --------------------- 0
----------------
MALAYSIA X ---------------------
lAS 7 (P) X
----------------
MEXICO X ---------------------
IMCP B-4 (P) 0
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X ---------------------
APB 20 (P) 0
----------------
PORTUGAL X ---------------------
DL (L) 0
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN ---------------------
--- ---
X 0
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
ED FAS 23 (P) 0
----------------
----------------
UNITED STATES X ---------------------
APBO 19 (P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X
---------------------
lAS 7 (P) 0
----------------
ZIMBABWE X ---------------------
lAS 7 (P) X
---------------- ---------------------
194 :rmms STATEKKRTS
4.2(c) The bottom line of the Funds Statement should be Net

Change in Cash

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
AUSTRALIA X --------------------- X
BELGIUM X --------------------- 0
BRAZIL ---------------------
LAW 6.404 (L) NA
CHANNEL ISLANDS
--- --- X
X
--------------------- X
CHILE X --------------------- 0
COLOMBIA X --------------------- 0
DENMARK X --------------------- 0
FINLAND X --------------------- 0
FRANCE ---------------------
COB (S)
--------------------- - - - - 0
X X
GERMANY
HONG KONG
--- --- X
X ---------------------
SSAP 116 (P)
-- -- X
INDONESIA X ---------------------
BAPEPAM 4 (L) 0
IRELAND --------------------- 0
--------------------- - - - - - 0
X
ITALY
JAPAN
--- --- X
X --------------------- X - - - -
MALAYSIA X ---------------------
lAS 7 (P) X
MEXICO X ---------------------
IMCP B-4 (P) 0
NEW ZEALAND X --------------------- NA
PHILIPPINES X ---------------------
APB 20 (P) 0
PORTUGAL X ---------------------
DL (L) 0
SOUTH AFRICA X --------------------- X
SPAIN --------------------- 0
- - - -
X
SWITZERLAND X --------------------- -
0
THAILAND X ---------------------
SET (L) X
UNITED KINGDOM X --------------------- 0
UNITED STATES X ---------------------
APBO 19 (P) X
URUGUAY X --------------------- NA
ZAMBIA X ---------------------
lAS 7 (P) 0
ZIMBABWE X ---------------------
lAS 7 (P) X
---------------------
FUl!IDS STATEIIEITS 195
4.2(d) The bottom line of the Funds Statement should be Net

Change in Borrowing

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
AUSTRALIA X ---------------------
--------------------- - - - - -
0
BELGIUM X 0
BRAZIL X ---------------------
LAW 6.404 (L) N A
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X X
FRANCE X 0
GERMANY X 0
INDONESIA X ---------------------
BAPEPAM 4 (L) 0
IRELAND X X
ITALY X 0
JAPAN X 0
MEXICO ---------------------
IMCP B-4 (P)
NEW ZEALAND
--- --- X
X X
PHILIPPINES
--- --- X
N A
PORTUGAL
--- --- X DL (L)
0
0
SOUTH AFRICA X X
SPAIN X
SWITZERLAND
--- --- X
0
X
THAILAND X ED FAS 23 (P) p
UNITED KINGDOM X X
UNITED STATES APBO 19 (P)
--- 0
X
URUGUAY
--- X N A
ZAMBIA X lAS 7 (P)
ZIMBABWE ---
X lAS 7 (P)
0
0
196 FURDS STATEKEIITS
4.2(e) The bottom line of the Funds Statement should be Total

Application of Funds

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA --------------------- X
--------------------- -
X
BELGIUM
-----
BRAZIL
--- --- X
X ---------------------
LAW 6.404 (L) NA
CHILE ---------------------
COLOMBIA
--- --- XX ----- --------------------- - - 0
--- --- X
0
DENMARK --------------------- X
FINLAND ---------------------
FRANCE
--- --- XX ---------------------
X
0
GERMANY X --------------------- X
HONG KONG X ---------------------
SSAP 116 (P) 0
INDONESIA ---------------------
BAPEPAM 4 (L)
IRELAND
--- --- X X --------------------- X
X
ITALY X
--------------------- X
JAPAN X --------------------- 0
MALAYSIA X
---------------------
lAS 7 (P) X
MEXICO X ---------------------
IMCP B-4 (P) X
NEW ZEALAND X --------------------- NA
PHILIPPINES X --------------------- X
PORTUGAL X ---------------------
DL (L) 0
SOUTH AFRICA X ---------------------
GUIDELINE 4.001 (P) X
SPAIN ---------------------
--- --- X ----- --------------------- - X
X X
SWITZERLAND
THAILAND ---------------------
ED FAS 23 (P)
UNITED KINGDOM
--- --- XX --------------------- X
0
UNITED STATES X ---------------------

APBO 19 (P) X
URUGUAY --------------------- NA
--- --- X ---------------------
ZAMBIA
ZIMBABWE --j---1+
--- --- ---
lAS 7 (P)
---------------------
lAS 7 (P)
---------------------
X
0
FUIIDS STATEIIEIITS 197
4.3(a) Profit or loss for the period should be disclosed in the

Funds Statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF

----------------
AUSTRALIA X --------------------- X
---------------
BELGIUM - X --------------------- X
----------------
BRAZIL X LAW 6.404 (L) -----
---------------- NA
----------------
SSAP 10 (P) ----- X
---------------
CHILE - X ---------------- ----- X
C86 (L); TB 9 (P)
---------------
COLOMBIA - X ----------------
NIPA (P) ----- X
----------------
DENMARK --------------------- X
- --- --- X
X
---------------
FINLAND ---------------------N X
----------------
FRANCE X ---------------- ----- X
CNC (L) ;OECCA (P)
----------------
GERMANY X
--------------------- X
----------------
HONG KONG ----------------
SSAP 116 (P) -----
--- -----
X X
---------------- --- ----------------
BAPEPAM 4 (L) ----- - ----
----- X - - - - -
INDONESIA X X
----------------
IRELAND X
----------------
SSAP 10 (P)
----------------
ITALY X ----------------
PC 2 (P) ----- X
---------------
JAPAN - X --------------------- 0
---------------
MALAYSIA - X --------------------- X
---------------
MEXICO - X ----------------
IMCP B-4 (P) ----- X
---------------
NEW ZEALAND - X
--------------------- NA
---------------
PHILIPPINES - X ----------------
SEC (L) ----- X
----------------
PORTUGAL X ----------------
DL (L) ----- X
SOUTH AFRICA - X
--------------- ----------------
CA 1973 (L) ----- X
---------------
SPAIN - X --------------------- X
---------------
SWITZERLAND - X --------------------- X
----------------
THAILAND X ED FAS 23 (P) ----- X
----------------
UNITED KINGDOM - X
--------------- ----------------
SSAP 10 (P) ----- X
----------------
UNITED STATES X
--- ----- ----------------
APBO 19 (P) ----- X
---------------
URUGUAY - X --------------------- NA
----------------
ZAMBIA X ---------------- ----- X
---------------
ZIMBABWE - X ---------------- ----- X
---------------- ---------------------
198 FUIIDS STArEHEII'l'S
4.3{b) Adjustments for items not involving the movements of funds

should be disclosed in the Funds Statement

PRACTICE
1{
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- --- ----------------------------
AUSTRALIA X X
BELGIUM X X
CHILE X ---------------------
C86 (L); TB 9 {P) -
X
COLOMBIA X X
DENMARK X X
FINLAND X N X
FRANCE X CNC (L); OECCA (P) X
GERMANY X X
ITALY X PC 2 (P) X
JAPAN X 0
MALAYSIA X X
MEXICO X IMCP B-4 (P) X
PHILIPPINES X ---------------------
SEC (L) -X -
PORTUGAL X DL (L) X
SPAIN X PGC (L) X
SWITZERLAND X X
UNITED KINGDOM X ---------------------
SSAP 10 (P) -X
URUGUAY X N A
ZAMBIA X X
ZIMBABWE X X
FURDS STATEMENTS 199
4.3(c) Dividends paid should be disclosed in the Funds Statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X
--------------------- X
----------------
BRAZIL X
---------------------
LAW 6.404 (L) NA
----------------
SSAP 10 (p) X
----------------
CHILE ---------------------
C86 (L); TB 9 (P)
----------------
COLOMBIA
X
X ---------------------
NIPA (P) X
X
--- -
----------------
DENMARK X --------------------- X
----------------
FINLAND ---------------------
REC (P)
----------------
FRANCE
X
X ---------------------
CNC (L)
X
X
--- -
----------------
GERMANY X --------------------- X
----------------
HONG KONG ---------------------
SSAP 116 (P)
----------------
INDONESIA
X
---------------------
BAPEPAM 4 (L)
X
-- -- -
--- --- ----- --------------------- - -- --
X X
----------------
----------------
ITALY X ---------------------
PC 2 (P) X
----------------
JAPAN X
--------------------- X
----------------
MALAYSIA X
--------------------- X
----
----------------
MEXICO X
---------------------
IMCP B-4 (P) X
----------------
NEW ZEALAND X
---------------------
SSAP 10 (P) NA
----------------
PHILIPPINES X
---------------------
SEC (L) X
----------------
PORTUGAL X ---------------------
DL (L) X
----------------
SOUTH AFRICA X
---------------------
CA 1973 (L) X
----------------
SPAIN X --------------------- X
----------------
SWITZERLAND X
--------------------- X
----------------
THAILAND X ---------------------
ED FAS 23 (P) X
----------------
UNITED KINGDOM X ---------------------
SSAP 10 (P) X
----------------
UNITED STATES X
---------------------
APBO 19 (P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X
--------------------- X
----------------
ZIMBABWE X
--------------------- X
---------------- ---------------------
200 :ruJIDS STArEHDTS
4.3(d) Tax paid should be disclosed in the Funds Statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A B c D E F

AUSTRALIA
BELGIUM
--- --- X X
BRAZIL
--- --- X
X LAW 6.404 {L)
X
NA
CHANNEL ISLANDS X X
CHILE X X
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X 0
HONG KONG X X
INDONESIA X X
IRELAND X X
IT~ X X
JAPAN X X
MALAYSIA X X

NEW ZEALAND X
---------------------
SSAP 10 (P) NA
PHILIPPINES X X
PORTUGAL X X
SPAIN X X
SWITZERLAND X 0
THAILAND X X
UNITED KINGDOM X X
UNITED STATES
URUGUAY
--- --- X
X N A
X
ZAMBIA X X
ZIMBABWE X X
FORDS STATEMEB'lS 201
4.3(e) Acquisitions and disposals of fixed assets should be

disclosed in the Funds Statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F

AUSTRALIA --------------------- X
BELGIUM
--- ---
X
X
----- --------------------- X - - - - -
BRAZIL X --------------------- NA
CHANNEL ISLANDS ---------------------
SSAP 10 (P)
- -- -
X X
CHILE ---------------------
C86 (L); TB9 (P)
--- ----- ---------------------
X X
DENMARK X --------------------- X
FINLAND X ---------------------
REC (P) X
FRANCE ---------------------
CNC (L); OECCA (P)
GERMANY
X
X
--------------------- X
X
----
HONG KONG X ---------------------
SSAP 116 (P) X
-----
INDONESIA X ---------------------
BAPEPAM 4 (L) X
IRELAND ---------------------
SSAP 10 (P)
- ---
--- ----- ---------------------
X X
- ----
ITALY X PC 2 (P) X
JAPAN --------------------- X - - - - -
--------------------- X - - - - -
X
MALAYSIA
MEXICO
X
----- --------------------- X - - - - -
--- --- ----- ---------------------
X
PHILIPPINES X ---------------------
SEC (L) X
PORTUGAL ---------------------
DL (L)
- -- -
X X
SOUTH AFRICA X
---------------------
CA 1973 (L) X
SPAIN X ---------------------
PGC (L) X
SWITZERLAND X --------------------- X - - - -
THAILAND X --------------------- X
UNITED KINGDOM X ---------------------
SSAP 10 (P) X
UNITED STATES X ---------------------
APBO 19 (P) X
URUGUAY X --------------------- NA
ZAMBIA X
--------------------- X
ZIMBABWE X --------------------- X
---------------------
202 FDimS STATEIIEIITS
4.3(£) Increase or repayment of medium and long-term loans

should be disclosed in the Funds Statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DE F

----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X - - - -
----------------
BRAZIL X --------------------- NA
----------------
SSAP 10 (P) X
----------------
CHILE X
--- ----- --------------------- X
----------------
COLOMBIA X
--- ----- --------------------- X
-----
----------------
DENMARK X
----- --------------------- X - - - - -
----------------
FINLAND X ---------------------
REC (P) X
----------------
FRANCE X ---------------------
CNC (L); OECCA (P) X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X ---------------------
SSAP 116 (P) X
----------------
INDONESIA X
--- --- ---------------------
BAPEPAM 4 (L) X
----------------
IRELAND X ---------------------
SSAP 10 (P) X
----------------
ITALY X ---------------------
PC 2 (P) X
----------------
JAPAN X --------------------- X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
IMCP B-4 (P) X
----------------
NEW ZEALAND X ---------------------
SSAP 10 (P) NA
----------------
PHILIPPINES X ---------------------
SEC (L) X
----------------
PORTUGAL X ---------------------
DL (L) X
----
----------------
SOUTH AFRICA X
--- --- ----- ---------------------
CA 1973 (L) X
----
----------------
SPAIN X ---------------------
PGC (L) X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------
SSAP 10 (P) X
----------------
UNITED STATES X ---------------------
APBO 19 (P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- X
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
FUBDS STATEIIEIITS 203
4.3(g) Increase or redemption of share capital should be

disclosed in the Funds Statement

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
SSAP 10 (L) X
----------------
CHILE X ---------------------
C86 {L); TB9 (P) 0
----------------
COLOMBIA X --------------------- X
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
REC (P) X
----------------
FRANCE X ---------------------
----------------
GERMANY X --------------------- X
----------------
HONG KONG X ---------------------
SSAP 116 (P) X
----------------
INDONESIA X ---------------------
BAPEPAM 4 (P) X
----------------
IRELAND X ---------------------
SSAP 10 (P) X
----------------
ITALY X ---------------------
PC 2 (P) X
----------------
JAPAN X --------------------- X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
IMCP B-4 (P) X
-----
----------------
NEW ZEALAND X ---------------------
SSAP 10 (P) NA
----------------
PHILIPPINES X ---------------------
SEC (L) X
----------------
PORTUGAL X ---------------------
DL (L) 0
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
---------------
SPAIN X ---------------------
PGC (L) X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------
SSAP 10 (P) X
----------------
UNITED STATES X ---------------------
APBO 19 (P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA
--- --- X --------------------- X
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
204 F1JRDS STATEHD'rS
4.3(h) Increase or decrease in working capital should be disclosed

in the Funds Statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF

AUSTRALIA X --------------------- X
BELGIUM X --------------------- X
BRAZIL X ---------------------
LAW 6.404 (L) NA
SSAP 10 (P) X
CHILE X
--- ----- ---------------------
C86 (L); TB9 (P) X
-----
COLOMBIA X ---------------------
NIPA (P) X
--------------------- X
DENMARK
FINLAND
--- --- XX ----- --------------------- X
FRANCE X ---------------------
-----
GERMANY X --------------------- X
HONG KONG X ---------------------
SSAP 116 (P) X
- - - -
INDONESIA X
--- --- ----- ---------------------
BAPEPAM 4 (L) X
IRELAND X ---------------------
SSAP 10 (P) X
ITALY X ---------------------
PC 2 (P) X
JAPAN X --------------------- 0
MALAYSIA X --------------------- X
MEXICO X ---------------------
IMCP B-4 (P) X
NEW ZEALAND X
--- --- ----- ---------------------
SSAP 10 (P) NA
PHILIPPINES X ---------------------
APB 20 (P) X
PORTUGAL X ---------------------
DL (L) X
SOUTH AFRICA X ---------------------
CA 1973 (L) X
---------------------
SPAIN
SWITZERLAND
--- --- XX ---------------------
X
X
THAILAND X ---------------------
ED FAS 23 (P) X
UNITED KINGDOM X ---------------------
SSAP 10 (P) X
UNITED STATES X --------------------- X
URUGUAY X --------------------- NA
ZAMBIA X --------------------- X
ZIMBABWE X --------------------- X
---------------------
FUBDS STATEMERI'S 205
4.3(i) Increase or decrease in the component parts of working

capital should be disclosed in the Funds Statement

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F

----------------
AUSTRALIA X
--------------------- X
----------------
BELGIUM X
--------------------- NA
----------------
BRAZIL X
--------------------- NA
----------------
CHANNEL ISLANDS ---------------------
SSAP 10 (P)
- - - --
X X
----------------
CHILE X
---------------------
C86 (L); TB9 (P) X
----------------
COLOMBIA X
--------------------- X - - - - -
----------------
DENMARK X
--------------------- X
----------------
FINLAND X
--------------------- X
----------------
FRANCE X
---------------------
DECCA (P) X
----------------
GERMANY X
--------------------- X
----------------
HONG KONG X
---------------------
SSAP 116 (P) X
----------------
INDONESIA ---------------------
BAPEPAM 4 (L)
----------------
IRELAND
X
X
---------------------
SSAP 10 (P) X
X
-- - -
----------------
ITALY X
--------------------- X
----------------
JAPAN
--- --- X
--------------------- 0
----------------
MALAYSIA --------------------- - - - -
- - - -
X X
----------------
MEXICO
---------------------
IMCP B-4 (P) X
--- --- ----- ---------------------
X
----------------
NEW ZEALAND SSAP 10 (P) NA
--- ---
X
----------------
PHILIPPINES X
---------------------
SEC (L) X
----------------
PORTUGAL X
---------------------
DL (L) X
----------------
SOUTH AFRICA X
---------------------
----------------
SPAIN X
---------------------
PGC (L) X
- -- -
----------------
SWITZERLAND X
--------------------- X
----------------
THAILAND X
---------------------
ED FAS 23 (P) X
----------------
UNITED KINGDOM X
---------------------
SSAP 10 (P) X
----------------
UNITED STATES X
---------------------
APBO 19 (P) X
----------------
URUGUAY X
--------------------- NA
----------------
ZAMBIA X
--------------------- X
----------------
ZIMBABWE X
--------------------- X
---------------- ---------------------
206 :rmms STA'lEHDTS
4.3(j) Total funds generated from operations should be disclosed

in the Funds Statement

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X X
CHILE C86 (L); TB9 (P) X
-- - - -
X
COLOMBIA X
---------------------
NIPA (P) X
DENMARK X X
FINLAND X REC (P) X
FRANCE X X
GERMANY X X
HONG KHNG X SSAP 116 (P) X
INDONESIA X
--- ----- ---------------------
BAPEPAM 4 (L) X
IRELAND X X
ITALY X X
JAPAN X 0
MEXICO X ---------------------
IMCP B-4 (P) X
- ----
NEW ZEALAND X ---------------------
SSAP 10 (P) NA
PHILIPPINES X ---------------------
SEC (L) X
PORTUGAL X
--- --- ----- ---------------------
DL (L) X
-----
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED KINGDOM X X
URUGUAY X N A
FUBDS STATEIIEITS 207
4.3(k) Total funds from other sources should be disclosed in the

Funds Statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB cDEF
----------------
AUSTRALIA X X
----------------
BELGIUM X X
----------------
BRAZIL X N A
----------------
CHANNEL ISLANDS X X
----------------
CHILE X C86 (L); TB9 (P) X
----------------
----------------
DENMARK X X
----------------
FINLAND X REC (P) X
----------------
FRANCE X X
----------------
GERMANY X X
----------------
----------------
----------------
IRELAND X X
----------------
ITALY X X
----------------
JAPAN X
----------------
MALAYSIA
--- --- X X
0
----------------
----------------
NEW ZEALAND X ---------------------
SSAP 10 (P) NA
----------------
PHILIPPINES X 0
----------------
PORTUGAL X DL (L) X
----------------
SOUTH AFRICA X GUIDELINE 4.001 (P) X
----------------
SPAIN X
----------------
SWITZERLAND
--- --- X
X
X
----------------
----------------
UNITED KINGDOM X X
----------------
----------------
URUGUAY X N A
----------------
ZAMBIA X X
----------------
ZIMBABWE X
---------------- X
208 FUBDS STATEIIER'IS
4.4(a) Entities should treat the acquisition and disposal of

subsidiaries during the period as a single amount

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
ARGENTINA X NA
AUSTRALIA X --------------------- X
BELGIUM X
--------------------- X
BRAZIL X
--------------------- NA
CHANNEL ISLANDS X
---------------------
SSAP 10 (P) X
CHILE X
--------------------- X
COLOMBIA ---------------------
NIPA (P)
--------------------- X - - - - -
X X
DENMARK
-----
X
FINLAND X
---------------------
REC (P) X
FRANCE X ---------------------
CNC (L) X
GERMANY X
--------------------- X
HONG KONG X
---------------------
SSAP 116 (P) X
INDONESIA X
--------------------- NA
IRELAND X ---------------------
SSAP 10 (P) X
ITALY X ---------------------
PC 2 (P) X
JAPAN X
--------------------- NA
MALAYSIA X
--------------------- X
MEXICO X ---------------------
IMCP B-4 (P) X
NEW ZEALAND X
---------------------
SSAP 10 (P) NA
PHILIPPINES X --------------------- X
PORTUGAL --------------------- NA
SOUTH AFRICA
--- --- X
---------------------
SPAIN
--- --- X
--------------------- NA
X
--- ---
X
SWITZERLAND X
--------------------- X
THAILAND X --------------------- X
UNITED KINGDOM X
---------------------
SSAP 10 (P) X
UNITED STATES ---------------------

URUGUAY
--- --- X
X
---------------------
X
NA
ZAMBIA --------------------- X
ZIMBABWE
---
X
X --------------------- X
---------------------
FUBDS STATEIIEirS 209
4.4(b) Entities should treat the acquisition and disposal of

subsidiaries during the period by disaggregation into the
individual assets and liabilities acquired and disposed of

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHILE X X
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
INDONESIA X N A
ITALY X 0
JAPAN X N A
MALAYSIA X X

PHILIPPINES X 0
PORTUGAL X N A
SOUTH AFRICA X X
SPAIN X NA
SWITZERLAND X 0
THAILAND X 0
URUGUAY X N A
ZAMBIA X 0
ZIMBABWE X X
210 FUIIDS STATEIID'lS
4.5 The net change in working capital should be disaggregated

into the net changes in its component parts

PRACTICE
R.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- ---- - - - - - -
----------------
AUSTRALIA
--- ---
X
--- ----- --------------------- - - - -X - -
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - -X - -
--- --- --- ----- --------------------- - - -N -A - -
X
----------------
BRAZIL
----------------
CHANNEL ISLANDS
--- --- --- ----- ---------------------
X
SSAP 10 (P)
-X - - - - -
--- --- --- ----- --------------------- -X - - - - -
X
----------------
CHILE C86 (L); TB9 (P)
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
sc (L); NIPA (P)
-X - - - - -
---------------- --- --- --- ----- --------------------- - -X - - - -
X
DENMARK
---------------- --- --- --- ----- --------------------- -X - - - - -
X
FINLAND REC (P)

---------------- --- --- --- ----- --------------------- - - - -X - -
X
FRANCE OECCA (P)

--- --- --- ----- --------------------- - - -X - - -
X
----------------
GERMANY
----------------
HONG KONG
--- --- --- ----- ---------------------
X
SSAP 116 (P)

-X - - - - -
----------------
INDONESIA
X
--- --- --- ----- ---------------------
BAPEPAM 4 (L)
-X - - - - -
--- --- ----- --------------------- -X - - - - -
X
----------------
IRELAND
--- SSAP 10 (P)
----------------
ITALY
--- ---
X
--- ----- ---------------------
PC 2 (P)
- - -X - - -
----------------
JAPAN
--- --- ---
X
----- --------------------- - - - - - -0
--- --- --- ----- --------------------- -X - - - - -
X
----------------
MALAYSIA
----------------
MEXICO
--- --- --- ----- ---------------------
X
IMCP B-8 (P)

- -X - - - -
--- --- ----- --------------------- - - --- -
X
----------------
NEW ZEALAND
--- SSAP 10 (P) NA
----------------
PHILIPPINES
X
--- --- --- ----- ---------------------
SEC (L)
- - - ---
--- --- --- ----- --------------------- - - - - - -0
X X
----------------
PORTUGAL DL (L)
----------------
SOUTH AFRICA
--- ---
X
--- ----- ---------------------
GUIDELINE 4.001 (P)
- -X - - - -
--- --- ----- --------------------- - -X - - - -
X
----------------
SPAIN
---
PGC (L)
--- --- --- ----- --------------------- - - - -X - -
X
----------------
SWITZERLAND
--- --- --- ----- --------------------- - - -X - - -
X
----------------
THAILAND
--- --- --- ----- --------------------- -X - - - - -
X
----------------
UNITED KINGDOM SSAP 10 (P)
----------------
UNITED STATES
X
--- --- --- ----- ---------------------
APBO 19 (P)
- -X - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
ZAMBIA
--- --- ---
X
----- --------------------- -X - - - - -
--- --- --- ----- --------------------- - -X - - - -
X
----------------
ZIMBABWE
---------------- --- --- --- ----- --------------------- - - - - - -
X
I'UIIDS ST.ArEIIEITS 211
4.6 Entities should net off sources and uses of funds (eg. on
ecquisition and disposal of fixed assets)

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA NA
AUSTRALIA
X
X
----- --------------------- - X
BELGIUM X
--------------------- X
BRAZIL X
---------------------
LAW 6.404 (L) NA
CHANNEL ISLANDS ---------------------
SSAP 10 (P)
--- --- X X
CHILE X
---------------------
C86 (L); TB9 (P) 0
COLOMBIA X
---------------------
NIPA (P) X
DENMARK X --------------------- X
FINLAND X
--------------------- 0
FRANCE X ---------------------
GERMANY X --------------------- X
HONG KONG ---------------------

SSAP 116 (P)
INDONESIA
--- --- ---
X
X ---------------------
BAPEPAM 4 (L)
- - - - -
X
0
IRELAND X
---------------------
SSAP 10 (P) X
ITALY X ---------------------
PC 2 (P) X
JAPAN ---------------------
--------------------- - - - - - X
X 0
MALAYSIA X
--- --- ---------------------
IMCP B-8 (P)
MEXICO X X
NEW ZEALAND X ---------------------

SSAP 10 (P) NA
PHILIPPINES ---------------------
APB 20 (P)
--- --- --------------------- X - - - -
X X
PORTUGAL X
SOUTH AFRICA ---------------------

CA 1973 (L)
--- ---
X X
SPAIN X
--------------------- X
SWITZERLAND
--- --- --------------------- X
--- ---
X
THAILAND X --------------------- X
UNITED KINGDOM X ---------------------

SSAP 10 (P) X
UNITED STATES X --------------------- X
URUGUAY X
--------------------- NA
ZAMBIA X
--------------------- X
ZIMBABWE X --------------------- X
---------------------
212 FUIIDS STATEIIEII'lS
4. 7 Common classifications and sub-headings of sources and uses

of funds should be used
CURRENT REQUIREMENTS CURRENT.

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- --- - - ---- - - - -- -
----------------
AUSTRALIA
--- --- ---
X
----- --------------------- - - - ---
X
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
BRAZIL
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
CHANNEL ISLANDS
--- --- ---
X
----- --------------------- -X - - - - -
----------------
CHILE
--- ---
X
--- ----- ---------------------
C86 (L); TB9 (P)
-X - - - - -
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
NIPA (P)
- - - - - -0
----------------
DENMARK
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
FINLAND
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
FRANCE
--- ---
X
--- ----- ---------------------
CNC (L); OECCA (P)
- - -N A- - -
----------------
GERMANY
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
HONG KONG
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM 4 (L)
- - -N A- - -
----------------
IRELAND
--- ---
X
--- ----- ---------------------
SSAP 10 (P)
-X - - - - -
----------------
ITALY
--- ---
X
--- ----- ---------------------
PC 2 (P)
- - X- - - -
----------------
JAPAN
--- --- ---
X
----- --------------------- -X - - - - -
----------------
MALAYSIA
--- ---
X
--- ----- ---------------------
!AS 7 (P)
- - N- A- - -
----------------
MEXICO
--- --- ---
X
----- ---------------------
IMCP B-8 (P)
- - -N A- - -
----------------
NE.W ZEALAND
--- ---
X
--- ----- ---------------------
SSAP 10 (P)
- - N- A- - -
----------------
PHILIPPINES
--- ---
X
--- ----- ---------------------
APB 20 (P)
-- ----
X
----------------
PORTUGAL
---
X
--- --- ----- ---------------------
DL (L)
------
X
----------------
SOUTH AFRICA
--- ---
X
--- ----- ---------------------
------
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L)
- - - - - -0
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
THAILAND
--- --- ---
X
----- ---------------------
ED FAS 23 (P)
- - - -X - -
---------------- --- --- --- ----- --------------------- - X -----
UNITED KINGDOM
----------------
UNITED STATES
---
X
X SSAP 10 (P)
--- --- ----- ---------------------
APBO 19 (P)
-X - - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
!AS 7 (P)
- - -N A- - -
----------------
ZIMBABWE --- ---
X --- ----- ---------------------
IAS 7 (P)
- - -N A ---
---------------- --- --- --- ----- --------------------- - - - - - -
:rtJIIDS STArEKDrS 213
4.8(a) The Funds Statement should be based on historical cost

figures

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
SSAP 16 (P) X
----------------
CHILE X ---------------------
TB 9 (P)
----0
----------------
COLOMBIA X ---------------------
NIPA (P) X
----------------
DENMARK X --------------------- X
----------------
FINLAND X --------------------- X
----------------
FRANCE X --------------------- X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X --------------------- X
----------------
IRELAND X ---------------------
SSAP 16 (P) N X
----------------
ITALY X --------------------- X
----------------
JAPAN X --------------------- X - - - - -
----------------
MALAYSIA X --------------------- X - - - - -
----------------
MEXICO X ---------------------
IMCP B-8 (P) X
----------------
NEW ZEALAND X ---------------------
SSAP 10 (P) NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X --------------------- X - - - - -
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
----------------
SPAIN X ---------------------
PGC (L) X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) NX
----------------
UNITED STATES X --------------------- X
----------------
URUGUAY
--- --- X --------------------- NA
----------------
ZAMBIA
--- --- X --------------------- X
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
214 FUIIDS STATEKEITS
4.8(b) The Funds Statement should be based on inflation-adjusted

figures

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X X
BELGIUM X 0
CHANNEL ISLANDS X 0
CHILE X NX
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X 0
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X SSAP 16 N X
ITALY X 0
JAPAN X 0
MALAYSIA X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X CA 197 3 (L) 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X 0
URUGUAY X N A
ZAMBIA X 0
ZIMBABWE X 0
---------------- --- --- ----- --------------------- - - - - -
:rmms STATBMEIITS 215
4.8(c) Separate Funds Statements should be prepared, one based on

historical cost figures and one based on inflation-adjusted
figures

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F

----------------
AUSTRALIA X --------------------- 0
----------------
BELGIUM X
--------------------- 0
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS --------------------- 0
- - - - -
X
----------------
CHILE ---------------------
TB 9 (P) 0
--------------------- - - - - 0
X
----------------
COLOMBIA
----------------
DENMARK
--- --- X
--------------------- - - - - 0
----------------
FINLAND
--- --- X
--------------------- - - - - - 0
----------------
FRANCE
--- --- X
--------------------- - - - - 0
--------------------- - - - - 0
X
----------------
GERMANY X
----------------
HONG KONG X --------------------- 0
----------------
INDONESIA --------------------- 0
- - - -
X
----------------
IRELAND X ---------------------
SSAP 10 & 16 (P) N
- 0
----------------
ITALY X
-~~------------------
0
----------------
JAPAN X --------------------- 0
----------------
MALAYSIA X --------------------- 0
----------------
MEXICO X --------------------- 0
----------------
NEW ZEALAND X
--------------------- NA
----------------
PHILIPPINES X
--------------------- 0
----------------
PORTUGAL X --------------------- 0
----------------
SOUTH AFRICA ---------------------
CA 1973 (L) 0
--------------------- - - - - - 0
X
----------------
SPAIN
----------------
SWITZERLAND
--- --- X
--------------------- - - - - 0
----------------
THAILAND
--- --- X
X
--------------------- - - - - - 0
----------------
UNITED KINGDOM X ---------------------
SSAP 10 & 16 (P) N X
----------------
UNITED STATES X --~------------------
0
----------------
URUGUAY --------------------- NA
----------------
ZAMBIA
--- --- X
---------------------
-00
X
----------------
ZIMBABWE X ---------------------
---------------- ---------------------
216 FURDS STATEIIEIITS
4.9(a) The Funds Statement should be disclosed with the

Balance Sheet and Income Statement (ie. as a primary
statement)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d d
e SOURCE -----------
ABc DEF

----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
----------------
CHILE X ---------------------
C86 (L); TB9 (P) X
----------------
COLOMBIA X ---------------------
sc (L) X
- -- - -
----------------
DENMARK X --------------------- X
----------------
FINLAND X --------------------- X
----------------
FRANCE X --------------------- X
----------------
GERMANY X --------------------- 0
----------------
HONG KONG X ---------------------
SSAP 116 (P) X
----------------
INDONESIA X ---------------------
BAPEPAM 4 (L) X
----------------
IRELAND X --------------------- X
----------------
ITALY X ---------------------
PC 2 (P) X
----------------
JAPAN X --------------------- 0
----------------
MALAYSIA X ---------------------
lAS 7 (P) X
----------------
MEXICO X ---------------------
IMCP B-4 (P) X
----------------
NEW ZEALAND X ---------------------
SSAP 10 (P) NA
----------------
PHILIPPINES X
--- --- ----- ---------------------
SEC (L) X
----------------
PORTUGAL X
--- --- ----- ---------------------
DL (L) X
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
----------------
SPAIN X ---------------------
PGC (L) X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
SET (L) X
----------------
----------------
UNITED STATES X ---------------------
APBO 19 (P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS 7 (P) X
----------------
ZIMBABWE X
--- ----- ---------------------
lAS 7 X
---------------- --- --- ----- ---------------------
FUBDS STAriiiEII'rS 217
4.9(b) The Funds Statement should be disclosed as one of the Notes

to the Accounts

PRACTICE
1{
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X

CHANNEL ISLANDS X 0
CHILE X C86 (L); TB9 (P) 0
COLOMBIA X ---------------------
sc (L) 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
INDONESIA X 0
IRELAND X X
ITALY X 0
JAPAN X 0
MALAYSIA X ---------------------
lAS 7 (P)
MEXICO
--- --- X ---------------------
IMCP B-4 (P)
- - - - -
0
0
NEW ZEALAND X ---------------------
SSAP 10 (P) N .A
PHILIPPINES X ---------------------
SEC (L) 0
PORTUGAL X ---------------------
DL (L) X
SOUTH AFRICA X ---------------------
CA 1973 (L) X
SPAIN X --------------------- - - - - - 0
SWITZERLAND
--- --- X --------------------- - - - - X
THAILAND
--- --- X ---------------------
SET (L) 0
UNITED STATES
--- --- X --------------------- 0
URUGUAY
--- --- X --------------------- NA
ZAMBIA
--- --- X ---------------------
lAS 7 (P) 0
ZIMBABWE X ---------------------
lAS 7 (P) X
---------------------
218 FURDS STATEKEil'lS
4.10 The Funds Statement should be accompanied by explanatory

notes and other supplementary information

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
----------------
AUSTRALIA X X
BELGIUM
BRAZIL
--- -- X
X N A
0
CHANNEL ISLANDS X X
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X BAPEPAM 4 (P) X
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X X
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X X
SOUTH AFRICA X X
SPAIN
SWITZERLAND
--- --- X
X
X
X
THAILAND X 0
UNITED KINGDOM X X

URUGUAY X N A
ZAMBIA X X
ZIMBABWE X X
FURDS STATDIEII'lS 219
4.11 The Funds Statement should be audited

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- - - -- - - - - - -
---------------- --- --- ---
AUSTRALIA X
----- --------------------- - - - - - -0
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - - - -0
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- -N -A- --
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
SSAP 10 (P)
-X - - - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
LAW 18046 (L)
-X - - - - -
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
sc (L) -X - - - - -
----------------
DENMARK
--- --- ---
X
----- --------------------- - - X- - - -
----------------
FINLAND
---
X
--- --- ----- ---------------------
CA (L)
-X - - - - -
----------------
FRANCE
--- --- ---
X
----- --------------------- - - - -X - -
----------------
GERMANY
--- --- ---
X
----- --------------------- -X - - - - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
SSAP 116 (P)
-X - - - - -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM 4 (L)
------
X
----------------
IRELAND
---
X
--- --- ---------------------
SSAP 10 (P)
-X - - - - -
----------------
ITALY
--- ---
X
--- ----- ---------------------
PR 18 (P)
- - - -X - -
----------------
JAPAN
--- --- ---X ----- --------------------- - - - - - -0
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS Preface (P)
-- -- --
X
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP B-4 (P)
-X - - - - -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 10 (P)
- - -N A---
----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
SEC (L)
-X - - - - -
----------------
PORTUGAL
---
X
--- --- ----- ---------------------
DL (L)
-X - - - - -
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
SPAIN
--- --- ---
X
----- --------------------- - - - -X - -
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - - X-
----------------
THAILAND
---
X
--- --- ----- ---------------------
SET (L)
- X- - - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
SSAP 10 (P)
------
X
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
SEC REG. sx (L)
-X - - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS Preface (P)
-X - - - - -
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------
lAS Preface (P)
-X - - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
220 FlJIO)S STATIIIEITS
4.12 Comparative figures should be given in the Funds Statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS X
--- ----- ---------------------
SSAP 10 (P) X
----------------
CHILE X
--- ----- ---------------------
C86 (L) X
-----
----------------
COLOMBIA X --------------------- X
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
REC (P) X
----------------
FRANCE X ---------------------
CNC (L) X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X ---------------------
SSAP 116 (P) X
----------------
INDONESIA X
--- --- ----- ---------------------
BAPEPAM 4 (L) X
----
----------------
IRELAND X ---------------------
SSAP 10 (P) X
----
----------------
ITALY X ---------------------
PC 2 (P) X
.,..
----------------
JAPAN X --------------------- 0
----------------
MALAYSIA X ---------------------
lAS 5 (P) X
----
----------------
MEXICO X ---------------------
IMCP B-4 (P) X
- ---
----------------
NEW ZEALAND X ---------------------
SSAP 10 (P) NA
----------------
PHILIPPINES X ---------------------
SEC (L) X
----------------
PORTUGAL X --------------------- 0
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X --------------------- X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
SET (L) X
----
---------------- --------------------- - ----
----------------
UNITED STATES X ---------------------
APBO 19 (P) X
-----
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS 5 (P) X
----------------
ZIMBABWE X ---------------------
lAS 5 (P) X
---------------- ---------------------
FUimS STArEMD'lS 221
NOTES
Question 4.1
BRAZIL: For all companies with net equity in excess of

approx US $250,000
FINLAND: Only for limited companies with (a) over 500

employees or (b) equity in excess of F.Mk 2
million
INDONESIA: The government require that funds statements

be prepared for public companies whilst PAl
recommend that they should be prepared for
general purpose reporting
JAPAN: The Securities and Exchange Law requires that

certain cash-flow information be disclosed in
the non-financial section of filings with the
Ministry of Finance. However, these cash-flow
statements are substantially different from
funds statements and hence the answers in
Chapter Four ignore this aspect of the
Securities and Exchange Law.
Question 4.3
FINLAND: Q4.3 (a)&(b) 95% of the companies surveyed

start the funds statement with operating
profit PRIOR to depreciation
Question 4.8
CHILE: 4.8 (b) Except Financial Institutions
IRELAND: As for UK.
UK: 4~(a) required where historical cost accounts

are main accounts and current cost accounts
are supplementary with a compliance audit
report.
4.8{b) required where current cost accounts

are main or only accounts.
4.8( c) required where current cost accounts

are true and fair and historical cost accounts
are main accounts
CIIAPTEB. FIVE GB.OUP ACCOUIITS
Contents Questions
Introduction 225
Groups - general 5.1 - 5.6 230
Consolidations 5.7 - 5.11 245
Other forms of group accounts 5.12 260
Uniformity 5.13 262
Intra-group transactions 5.14 - 5.16 265
Minority interests 5.17 272
Consolidation differences (Goodwill) 5.18 - 5.23 274
Associated companies 5.24 291
Merger accounting 5.25 293
Notes 294
GIOIJP ACCOOIITS 225
UTB.ODUcriOB
This chapter deals with the methods of measuring and disclosing

the financial position and performance of a group of companies.
A group is generally considered to consist of a number of
companies which are related by means of ownership or control.
The main reason for publishing group accounts is to give users of

financial statements an overall view of the group's activities by
providing group financial statements and also information
regarding intra-group relationships. It is usually considered
that this overall view of the group's activities cannot be
obtained simply by examining the separate financial statements of
the group's members. Note, however, that aggregating the
financial statements of the group's members may obscure the
effect of varying trends in the results of particular sub-groups.
This leads to a demand for segmental (or disaggregated)
reporting, discussed further in Chapter Eight.
This chapter makes a distinction between group accounts and

consolidated accounts as follows:- group accounts include all
methods of disclosing group results, whereas consolidated
accounts combine the information in the group members' separate
financial statements into a single set of financial statements.
Consolidated financial statements are therefore one particular
type of group accounts.
One of the main issues in group accounts concerns the precise

definition of a group. Different emphasis may be placed on
different aspects of the ownership or control relationships,
depending on which underlying concept of a group is favoured.
These underlying concepts of a group also effect other matters
such as the measurement and disclosure of minority interests,
and the treatment of unrealised profits and losses on intra-group
sales.
226
For example, the "parent company" concept of a group assumes that

the group accounts are aimed at the shareholders of the parent
company, which is considered to be by far the most important
entity in the group. This concept emphasises the legal aspects
of ownership and control rather than the economic aspects in
determining the criteria for inclusion in the group. As the
minority shareholders in subsidiary companies are considered to
be external to the main parent-subsidiary relationship, they are
effectively treated as third parties - for example, minority
interests are excluded from consolidated equity, only the parent
company's share of unrealised profits on intra-group trading is
eliminated on consolidation, and the calculation of minority
interests in the subsidiary's net assets excludes any goodwill
arising on consolidation.
The "entity" concept of a group assumes that the group accounts

are aimed at all shareholders in the group, and hence gives
greater emphasis to minority interests as having a significant
involvement in the group's affairs. In this case, the underlying
economic reality is considered to be more important than legal
relationships in determining what constitutes a group. In
addition, minority interests may be shown a part of consolidated
equity, unrealised intra-group profits are deducted from majority
and minority interests, and goodwill is credited proportionately
to both majority and minority interests.
A third concept is the "proprietary" concept, which may be used

when a company belongs to more than one group. Neither of the
first two concepts can be applied satisfactorily in such cases,
as there is no unique parent company nor is there a single
economic entity. The proprietary concept means that the group
accounts only include the relevant proportionate share of the
subsidiary's results and assets and liabilities, either on a
"line-by-line" basis (proportional consolidation) or on a "one-
line" basis (equity accounting). The minority interest issue
therefore does not arise.
227
Some of the other topics dealt with in this chapter include the
important question of uniformity (in terms of measurement and
valuation bases, accounting policies, and accounting periods),
the definition and treatment of consolidation differences
(goodwill) and accounting for associated companies.
Summary of results
Most countries in the survey require the publication of group

accounts. Even in those countries with no specific requirements,
companies frequently publish group accounts.
It is less easy to make a general statement regarding the

definition of when a group exists. Of the five criteria
considered in the survey, the one found least often was the
"central and unified management" criterion (often associated with
the German school of accounting thought).
As far as group structure is concerned, most countries require

the disclosure of names of subsidiaries and the percentage of
subsidiaries' shares owned by the parent company. Relatively few
countries require disclosure of locations or activities of
subsidiaries.
Most countries permit companies to use some form of group

accounts other than consolidated accounts. However, in practice
the great majority of companies surveyed published consolidated
accounts rather than some other forms of group accounts.
The majority of countries in the survey required or recommended

uniformity of accounting bases, accounting policies and
accounting periods. However, it was relatively rare for
companies to disclose that such uniformity existed.
A variety of accounting requirements and practices was found in

accounting for goodwill. The most common method in practice is
to capitalise goodwill and amortise it over a period of time,
although several companies in a number of countries adopted the
practice of carrying goodwill forward indefinitely. Most
228
companies disclosed the amount of goodwill carried forward

(whether amortised or not), although fewer companies disclosed
the amount of goodwill written off. Most companies also
disclosed their accounting policy for goodwill.
The IASC issued an International Accounting Standard (lAS 3) on

"Consolidated Financial Statements" in 1976. This became
effective from 1 January 1977.
IAS3 requires a parent company to publish world-wide consolidated

financial statements (except in cases where the parent company is
a wholly-owned subsidiary). However, separate financial
statements may be presented for a subsidiary whose activities are
so dissimilar from the rest of the group that this method of
presentation improves the quality of the information disclosed.
A subsidiary is defined as a company of which more than half the

voting power is owned, directly or indirectly, by another company
(the parent company). However, lAS 3 permits the consolidation
of companies in situations where over half of the equity capital
is owned. It also permits the consolidation of companies where
there is power to control the financial and operating policies of
the management of those companies. The lAS 3 definition of a
group therefore embraces a wide range of circumstances.
lAS 3 also requires uniform accounting policies to be adopted

throughout the group. Cases of non-uniformity may be justifiable
but should be disclosed.
The use of the equity method is required in dealing with

associated associated company is defined as a
companies. An
long-term investment (not a subsidiary) in which the investing
company has a substantial interest and over which the investing
company can exercise significant influence as to the financial
and operating policies of the investee.
The disclosure of further information regarding the group is also

229
required. For example, the financial statements should disclose

the basis on which subsidiaries and associates have been dealt
with. They should also disclose a listing and description of
significant subsidiaries and associates.
IAS 3 is relatively lengthy compared to other International

Accounting Standards, and only the main points have been
mentioned here.
A more recent development at the international level which is

relevant to group accounts is the recent adoption (June 1983) by
the EEC of the Seventh Directive on "Consolidated Accounts".
However, this Directive will need to be introduced into national
law only by 1990.
The requirements of the Directive are broadly consistent with IAS

3 and are flexible so as to accommodate the variety of EEC
practices. However, the impact is likely to be substantial in
countries where no consolidation requirements currently exist eg.
Belgium and Italy. Moreover, consolidation practices in some
countries will need to be modified eg. in Germany the
consolidation of foreign subsidiaries will now be necessary.
230 GROUP ACCOUIITS
GR.OUPS GENERAL
S.l(a) In the financial reporting context, a group is defined

to exist when a parent corporation owns over 50% of
the voting capital of a subsidiary corporation

PRACTICE
1(.
e
c p Np
R 0 e 0 e
e m r t r Definition
q m m m disclosed
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- --- - - - - - -
ARGENTINA N/A N/A N/A N/A N NA
----------------
AUSTRALIA
--- --- --- ----- ---------------------
CA(L)
- - - -X - -
--- --- --- ----- --------------------- - - - - - -0
X
----------------
BELGIUM RD (L)
---------------- ---
X
--- --- ----- --------------------- - - -N A- - -
BRAZIL
----------------
CHANNEL ISLANDS
---
X
--- --- LAW 6.404; CVM INSTl
- 0
---- --------------------- - - - - -
----------------
CHILE
--- --- --- -----
X
---------------------
CBS (L); TBll (P)
- - - - - -0
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
NIPA (P)
- - - - - -0
----------------
DENMARK
X
--- --- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
FINLAND
X
--- --- --- ----- ---------------------
CA (L)
- - - - - -0
----------------
FRANCE
---
X
--- --- ----- ---------------------
CNC (L)
- -X - - - -
---------------- --- --- --- ----- --------------------- --- -- -
X
GERMANY SCL (L)

----------------
HONG KONG
---
X
--- --- ----- ---------------------
co (L) - -X - - - -
X
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM S{L) ;PAil(P)
- - - - - -0
----------------
IRELAND
---
X
--- --- ----- ---------------------
CA 1963{L)SSAP 14(P)
- - - - - -0
--- --- ----- --------------------- -X - - - - -
X
----------------
ITALY
--- CIVIL CODE (L)
----------------
JAPAN
---
X
--- --- ----- ---------------------
CFP {L); FSR (L)
- - - - - -0
----------------
MALAYSIA
---
X
--- --- ----- --~-------~----------
MCA (L); lAS 3 (P)
- - - - - -0
----------------
MEXICO
X
--- --- --- ----- ---------------------
B8 (P)
- -X - - - -
--- --- --- ----- - - N- A- - -
X
---------------- ---------------------
NEW ZEALAND
PHILIPPINES
--- --- ---
X
X CA (L); SSAP 8 (P)
---------~~----- --- --- --- ----- --------------------- - -
SEC (L); APB 23 (P)
----- --------------------- - - - - - -0
-
- - -0
----------------
PORTUGAL
----------------
SOUTH AFRICA
--- --- --- ----- ---------------------
X
CA 1973 (L)
- - - - -X -
----------------
SPAIN
---
X
--- --- ----- ---------------------
PGC (L) N
- - - - - X-
~--------------- --- --- --- ----- --------------------- - - - - - -
X
SWITZERLAND
---------~------ --- --- --- ----- --------------------- - - - - - -
X X
THAILAND SET {L) ;ED FAS 22(P)
------~~-------- --- --- --- ----- -~----------~-------- - - - - - -
X X
UNITED KINGDOM CA 1948(L);SSAP14(P) 0
-~---~-~-~------
UNITED STATES
--- --- --- ----
X
---------------------
APB 51 (P)
- - - - - -
~~---~------~--- --- --- --- ----- --------------------- - - - - - -
X X
URUGUAY
----------------
ZAMBIA
--- --- ---
X
----- ---------------------
(P)
- - - - -
0
-
----------------
ZIMBABWE
--- --- --- ----- ---------------------
X lAS 3
lAS 3 (P)
- - - -
X
- -
---------------- --- --- --- ----- --------------------- - - - - - -
X X
GROUP ACCOUIITS 231
5.1(b) In the financial reporting context, a group is defined to

exist when a parent corporation owns over 50% of the
equity share capital (but perhaps less than 50% of the
voting capital) of a subsidiary corporation

PRACTICE
R
e
c p N p
R 0 e 0 e
q m m m disclosed
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- -- --- - - - - - -
ARGENTINA
---------------
AUSTRALIA
N/A N/A N/A N/A
--- ---
X
--- -----
---------------------
CA (L) -
NA
- - X- - -
----------------
BELGIUM
--- --- X ---------------------
--- ----- RD (L)
- - - - - -0
----------------
BRAZIL
--- --- -----
--- X ---------------------
LAW 6 .404; CVM INSTl
- - -N A- - -
---------------
CHANNEL ISLANDS
--- ---
X
-------- ------------------~--
SJAP (P)
- - - - - -0
----------------
CHILE
---
X
--- --- ----- ---------------------
TB 11 (P)
------
X
----------------
COLOMBIA
--- --- --- -----
X ---------------------
NIPA (P) N
- - - - - -0
----------------
DENMARK
---
X
--- --- ----- ---------------------
CA 1973 (L)
- - - - - -0
----------------
FINLAND
--- --- --- -----
X ---------------------
CA (L)
- - - - - -0
----------------
FRANCE
---
X
--- --- ----- ---------------------
CNC (L)
- X- - - - -
----------------
GERMANY
--- --- --- -----
X ---------------------
SCL (L)
- - - - - -0
----------------
HONG KONG
---
X
--- --- ----- ---------------------
co (L)
- - - - - -0
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - - - - -0
----------------
IRELAND
---
X
--- --- ----- ---------------------
CA 1963(L);SSAP14(P)
- - - - - -0
---------------- --- --- --- ----- - - - -- -
ITALY X -------------~-------
CIVIL CODE (L) 0
----------------
JAPAN
--- --- --- -----
X ---------~-----------
FSR (L)
- - - - - -0
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
MCA (L); lAS 3 (P)
- - - - - -
X
----------------
MEXICO
---
X
--- --- ----- ---------------------
B 8 ( P)
- - - - - -
0
---------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
CA (L); SSAP 8 (P)
- - - -
N A
- -
----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
SEC (L); APB 23 (P)
- - - - - -0
----------------
PORTUGAL
--- --- ---
X
----- --------------------- - - - - - -0
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
- - - - - -0
----------------
SPAIN
--- --- --- -----
X ---------------------
PGC (L)
- - - - - -0
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - X- - - -
----------------
THAILAND
--- --- --- -----
X ---------------------
SET (L); ED FAS 22(P)
- - - - - -0
---------------- --- --- --- ----- --------------------- - - - - - -X
UNITED KINGDOM X CA 1948(L);SSAP14(P)
----------------
UNITED STATES
--- --- --- -----
X ---------------------
ARB 51 (P)
- - - - - -0
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - - - - -0
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 3 (P)
- - - - - -0
---------------
ZIMBABWE
---
X
--- --- ----- ---------------------
CA 1951 (L);IAS 3(P)
- - - - - -0
---------------- --- --- --- ----- --------------------- - - - - - -
232 GB.OUP ACCOUftS
5 .1( c) In the financial reporting context, a group is defined to
exist when an investing corporation owns less than 50% of
the voting capital of another corporation but can control
the composition of the other corporation's board of
directors

PRACTICE
R
e
c p Np
R 0 e 0 e
q m m m disclosed
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- -- --- - - - - - -
ARGENTINA N/A N/A N/A N/A
----------------
AUSTRALIA
--- --- --- ----- --------------------- - - N- A- -X -
X
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
- - - - - -0
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6 .404; CVM INSTl
- - -N A- - -
---------------- --- --- --- ----- --------------------- - - - - - -0
CHANNEL ISLANDS
----------------
CHILE
---
X
X SJAP (P)
--- --- ----- ---------------------
TB 11 {P)
- - - - - -0
----------------
COLOMBIA
--- --- --- -----
X ---------------------
NIPA (P)
- - - - - -0
----------------
DENMARK
---
X
--- --- ----- ---------------------
CA 1973 (L)
- - - -X - -
----------------
FINLAND
--- --- --- -----
X ---------------------
- - - - - -0
----------------
FRANCE
---
X
--- --- ----- ---------------------
CNC (L)
- - -X - - -
----------------
GERMANY
--- --- --- -----
X ---------------------
SCL (L)
- - - - - -0
---------------- --- --- --- ----- ---------------------
co (L)
- - - - - X-
----- --------------------- - - - - - -0
HONG KONG X
----------------
INDONESIA
--- --- ---
X
----------------
IRELAND
---
X
--- --- ----- ---------------------
- - - - - -0
----------------
ITALY
--- --- --- -----
X ---------------------
CIVIL CODE (L)
- - - - - -0
----------------
JAPAN
--- --- --- -----
X ---------------------
FSR (L)
- - - - - -0
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
MCA (L); lAS 3 (P)
- - - - - -0
----------------
MEXICO
---
X
--- --- ----- ---------------------
B 8 (P)
- - - - - X-
---------------- --- --- --- ----- --------------------- - - -N A- - -
NEW ZEALAND X CA (L); SSAP 8 (P)
---------------- --- --- --- ----- --------------------- - - - - - -0
PHILIPPINES
----------------
PORTUGAL
X
--- --- ---
X
----- --------------------- - - - - - -0
SEC (L); APB 23 (P)
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
- - - - - -0
----------------
SPAIN
--- --- --- -----
X ---------------------
PGC (L)
- - - - - -0
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - - -
----------------
THAILAND
--- --- --- -----
X ---------------------
SET(L) ;ED FAS 22 (P)
------
X
---------------- --- --- --- ----- --------------------- - - - - - X-

X
- -----
UNITED KINGDOM X CA 1948(L);SSAP14(P)
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
ARB 51 (P) X
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - - - - -
0
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 3 {P)
- - - - - -
0
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------
CA 1951 (L);IAS 3{P)
- - - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
0
GB.OUP ACCOUftS 233
5.1(d) In the financial reporting context, a group is defined to

exist when an investing corporation owns less than 50% of
the voting capital of another corporation but can control
the policy decisions of that corporation

PRACTICE
R
e
c p Np
R o e o e
q m m m disclosed
u e i i
i n t t
r d t t
d d d d ABCDEF
---------------------------------------------------------
ARGENTINA N/A N/A N/A N/A N A
BELGIUM X RD (L) 0
BRAZIL X LAW 6.404;CVM INST 1 NA
CHANNEL ISLANDS X 0
CHILE X TB 11 {P) 0
DENMARK X ---------------------
CA 1973 (L) 0
FINLAND X 0
FRANCE X CNC (L) X
GERMANY X SCL (L) X
HONG KONG X ---------------------

co (L) 0
INDONESIA X 0
IRELAND X CA 1963(L);SSAP14(P) 0
JAPAN X ---------------------
FSR (L) 0
MALAYSIA X MCA (L); lAS 3 {P) 0
MEXICO X ---------------------
B 8 {P) X
NEW ZEALAND X CA (L); SSAP 8 (P) N A

PHILIPPINES X SEC (L); APB 23 (P) 0
PORTUGAL X 0
SOUTH AFRICA X CA 1973 (L) 0
SPAIN X PGC (L) 0
SWITZERLAND X X
THAILAND X SET(L); ED FAS 22(P) X
UNITED KINGDOM X ---------------------

CA 1948(L);SSAP14(P) 0
UNITED STATES X ---------------------
ARB 51 {P) X
URUGUAY X 0
234 GIOUP ACCOUITS
S.l{e) In the financial reporting context, a group is defined to exist when

two or more corporations are under central and unified management
(even though the criteria in (a) - {d) are not met)

PRACTICE
R
e
c p Np
R 0 e 0 e
q m m m disclosed
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
-- -- -- --- ---- --
----------------
AUSTRALIA
--- --- --- -----
X ---------------------
CA (L)
- - - - - -0
----------------
BELGIUM
--- --- --- ----- ---------------------
X RD (L)
- - - - - -0
----------------
BRAZIL
--- --- ----- --------·-------------
--- X LAW 6 .404;CVM INST 1
- - -N -A - -
----------------
CHANNEL ISLANDS
--- --- ---
X
----- --------------------- - - - - - -0
----------------
CHILE
--- --- --- ----- c 85 {L); TB 11 (P) - - - - - -0
X ---------------------
----------------
COLOMBIA
--- --- --- -----
X ---------------------
NIPA (P)
- - - - - -0
----------------
DENMARK
--- --- --- -----
X ---------------------
CA 1973 (L)
- - - - - -0
----------------
FINLAND
--- --- --- -----
X ---------------------
- - - - - -0
----------------
FRANCE
--- --- --- -----
X ---------------------
CNC (L)
- - - - - -0
---------------- ---
GERMANY X
--- --- ----- ---------------------
SCL (L)
- - - - - -X
----------------
HONG KONG
--- --- --- -----
X ---------------------
co (L)
- - - - - -0
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - - - - -0
----------------
IRELAND
--- --- --- -----
X ---------------------
- - - - - -0
----------------
ITALY
--- --- --- -----
X ---------------------
CIVIL CODE (L)
- - ----
0
----------------
JAPAN
--- --- --- -----
X ---------------------
FSR (L)
- - - - - -
0
----------------
MALAYSIA
--- --- --- -----
X ---------------------
MCA (L); lAS 3 (P)
- - - - - -
0
----------------
MEXICO
---
X
--- --- ----- ---------------------
B 8 (P)
- - - - - -
0
----------------
NEW ZEALAND
--- --- --- -----
X ---------------------
CA {L) ;SSAP 8 (P)
- - -
NA
- - -
----------------
PHILIPPINES
---
X
--- --- ----- ---------------------
SEC (L); APB 23 (P)
- - - - - -0
----------------
PORTUGAL
--- --- ---
X
----- --------------------- - - - - - -0
----------------
SOUTH AFRICA
--- --- --- -----
X ---------------------
CA 1973 (L)
- - - - - -0
----------------
SPAIN
--- --- --- ----- ---------------------
PGC (L)
- - - - - -0
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - - -X
X
----------------
THAILAND
--- --- --- -----
X ---------------------
SET(L); ED FAS 22(P)
- - - -X - -
----------------
UNITED KINGDOM
--- --- --- ----- ---------------------
CA 1948{L);SSAP14(P)
- - - - - -0
----------------
UNITED STATES
--- --- --- -----
X
X ---------------------
ARB 51 (P)
- - - - - -0
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - - - - -0
----------------
ZAMBIA
--- --- --- -----
X ---------------------
lAS 3 (P)
- - - - - -0
----------------
ZIMBABWE
--- --- --- -----
X ---------------------
CA 1951 (L);IAS 3(P)
- - - - - -0
---------------- --- ---1---1-----1--------------------- - - - - -I-I
GB.OUP ACCOUB'lS 235
5.2 Group accounts should be published

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
- - -- - - ----------- -----
----------------
AUSTRALIA
---
X
--- --- ----- CA (L) X
BELGIUM X RD (L) X

CHILE X
--------------------- X- -
C 86 (L); C 1537 (L) -
FINLAND X
---------------------
CA (L) - X
FRANCE X N X
GERMANY SCL (L) X

---
X
HONG KONG X
---------------------
CO (L) X
INDONESIA X 0
IRELAND X CA 1963(L);SSAP14(P) X
----------------
JAPAN X --- --- -----
--- ---------------------
SRO (L) X - - - -
MALAYSIA X MCA (L); lAS 3 (P) X
MEXICO X
---------------------
B 8 (P)
-X - -
NEW ZEALAND X CA (L); SSAP 8 (P) NA
PHILIPPINES X X
PORTUGAL X 0
SPAIN X X
SWITZERLAND X X
THAILAND X SET (L) N X

----------------
UNITED KINGDOM X --- --- ----- ---------------------
--- CA 1948 & 76; SSAP14 -X - -
UNITED STATES X APBO 18; ARB 51 (P) X
URUGUAY X 0
ZIMBABWE X CA 1951 (L);IAS 3(P) X

236 GROUP ACCOURTS
5.3(a) Names of subsidiaries should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
- - -- - - - - - -
----------------
AUSTRALIA
--- --- ----- ---------------------
--- CA (L)
-X - - - - -
----------------
BELGIUM
--- --- ----- ---------------------
X
--- RD (L)
-X - - - - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - -N -A - -
----------------
CHANNEL ISLANDS
--- ---
X
-·- ----- ---------------------
SJAP (P)
-X - - - - -
----------------
CHILE
--- --- --- ----- ---------------------
X
c 86 (L); TB 11 (P) X
------
--- --- --- ----- --------------------- - - - - - -0
X
----------------
COLOMBIA NIPA (P)
----------------
DENMARK
--- --- --- ----- ---------------------
X
AAPA 1981 (L)
-X - - - - -
----------------
FINLAND
---
X
--- --- ----- ---------------------
CA (L)
-X - - - - -
--- --- ----- --------------------- -X - - - - -
X
----------------
FRANCE
--- CL (LO
---------------- ---
GERMANY
X
--- --- ----- ---------------------
SCL (L)
-X - - - - -
--- --- ----- --------------------- -X - - - - -
X
----------------
HONG KONG
--- co (L)
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - - - - -0
--- --- ----- --------------------- ------
X
----------------
IRELAND
--- CA 196 9( L); SSAP14(P) X
----------------
ITALY
---X
--- --- ----- ---------------------
CIVIL CODE (L) NX
- -----
----------------
JAPAN
---
X
--- --- ----- ---------------------
SRO (L); CFR (L)
-X - - - - -
--- --- ----- --------------------- -X - - - - -
X
----------------
MALAYSIA
--- MCA (L); lAS 3 (P)
----------------
MEXICO
---
X
--- --- ----- ---------------------
B 8 (P)
- -X - - - -
----------------
NEW ZEALAND
X
--- --- --- ----- ---------------------
SSAP 8 (P)
- -N - -A - -
--- --- --- ----- --------------------- - - - -X - -
X
----------------
PHILIPPINES APB 23 (P)
----------------
PORTUGAL
X
--- --- --- ----- --------------------- - - - - - -0
--- --- ----- --------------------- ------
X
----------------
SOUTH AFRICA
--- CA 1976(L)
--- ----- --------------------- - - -X - - -
X X
----------------
SPAIN
--- --- PGC (L)
----------------
SWITZERLAND
X
--- --- --- ----- --------------------- - -X - - - -
---------------- --- --- --- ----- --------------------- -X - - - - -
X
THAILAND
--- --- ----- --------------------- ---- --
X
----------------
UNITED KINGDOM
--- CA 1976(L);SSAP14(P) X
----------------
UNITED STATES
X
--- --- --- ----- --------------------- - -X - - - -
---------------- --- --- --- ----- --------------------- -X - - - - -
X
URUGUAY
----------------
ZAMBIA
--- --- --- ----- ---------------------
X
IAS 3 (P)
-X - - - - -
--- --- ----- --------------------- - -X - - - -
X
---------------- ---
ZIMBABWE lAS 3 (P)
----~----------- --- --- --- ----- --------------------- - - - - - -
X
GI.OUP ACCOUirrS 237
5.3(b) Locations of subsidiaries should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

---------------- X
AUSTRALIA CA (L) X
----------------
BELGIUM X RD (L) X
----------------
BRAZIL X N A
----------------
----------------
CHILE X X
----------------
----------------
----------------
FINLAND X X
----------------
FRANCE X CL (L)
----------------
GERMANY X
--- --- SCL (L) X
X
----------------
HONG KONG X ---------------------
co (L) X
- ---
----------------
INDONESIA X 0
----------------
----------------
ITALY X CIVIL CODE (L) NX
----------------
JAPAN X ---------------------
SRO (L) X
----------------
MALAYSIA X MCA (L); !AS 3 (P) X
----------------
MEXICO X ---------------------
B 8 (P) X
----------------
----------------
PHILIPPINES X X
----------------
PORTUGAL X 0
----------------
----------------
SPAIN X PGC (L) X
----------------
SWITZERLAND X
--- ---
X
----------------
THAILAND X X
----------------
----------------
UNITED STATES X X
----------------
URUGUAY X X
----------------
ZAMBIA X X
----------------
ZIMBABWE X X
----------------
238 G.I.OUP ACCOUR'lS
5.3(c) Activities of subsidiaries should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F

AUSTRALIA X X
BELGIUM RD (L)
BRAZIL
--- --- X
X
N A
X
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE
GERMANY
--- --- X
X SCL (L) X
X
HONG KONG
--- --- X X
INDONESIA X 0
IRELAND ---------------------
CA 1963(L);SSAP14(P) X
ITALY
X
X
--- --- ----- ---------------------
CIVIL CODE (L) NX
JAPAN X
---------------------
SRO (L) X
----
MALAYSIA X ---------------------
lAS 3 (P) X
MEXICO X ---------------------
B 8 (P) X
NEW ZEALAND X ---------------------
SSAP 8 (P) NA
PHILIPPINES X
---------------------
APB 23 (P) X
PORTUGAL X
--------------------- 0
SOUTH AFRICA X
---------------------
CA 1973 (L) X
SPAIN X ---------------------
PGC (L) X
SWITZERLAND ---------------------
THAILAND
--- --- XX --------------------- X
X
UNITED KINGDOM X
---------------------
UNITED STATES X
--------------------- X
URUGUAY X --------------------- X
ZAMBIA X ---------------------
lAS 3 (P) X
ZIMBABWE X ---------------------
lAS 3 (P) X
---------------------
GR.OUP ACCOmriS 239
5.3{d) Percentage of subsidiaries' shares held by the parent

corporation should be disclosed

PRACTICE
K
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- - - ----------1------
BELGIUM X RD (L) X

----------------
CHILE X --- --- ----- ---------------------
--- C 86 (L); TB 11 (P) X - -- -
FINLAND X
---------------------
CA (L) X - - - -
FRANCE X CL (L) X
GERMANY X SCL (L) X
HONG KONG X
---------------------
co (L) X
INDONESIA X 0

----------------
JAPAN --- ---
X ----- ---------------------
SRO (L) X
MALAYSIA X X
MEXICO X B 8 (P) X

PORTUGAL X 0
SPAIN X PGC (L) X
SWITZERLAND X X
THAILAND X SET (L) X
---------------- X --- --- ----- ---------------------
UNITED KINGDOM --- CA 1967(L);SSAP14(P) X
UNITED STATES X X
URUGUAY X X
ZAMBIA X X
ZIMBABWE
---------------- --- --- --- ----- --------------------- - -
X X
240 GROUP ACCOUR'rS
5.4(a) The information about susidiaries should be given for

principal subsidiaries

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
-- -- -- ---- - - - - - -
----------------
AUSTRALIA
---
X
--- --- ----- ---------------------
CA (L) X
------
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L) X
------
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - -N A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- --------------------- -X - - - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
TB 11 (P)
-X - - - - -
----------------
COLOMBIA
--- ---
X
--- ----- --------------------- - - N- A- - -
----------------
DENMARK
---
X
--- --- ----- ---------------------
AAPA 1981 (L)
- --X - --
----------------
FINLAND
---
X
--- --- ----- ---------------------
CA (L) X
------
----------------
FRANCE
---
X
--- --- ----- ---------------------
CL (L)
-X - - - - -
----------------
GERMANY
---
X
--- --- ----- ---------------------
SCL (L)
-X - - - - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
co (L)
- -----
X
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
----- -
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L)
-X - - - - -
----------------
JAPAN
--- --- ---
X
----- ---------------------
SRO (L); CFR (L)
-X - - - - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
MCA (L); lAS 3 (P)
-X - - - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
B 8 (P)
-X - - - - -
----------------
NEW ZEALAND
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
PHILIPPINES
--- ---
X
--- ----- ---------------------
APB 23 (P) X
------
----------------
PORTUGAL
--- --- ---X ----- --------------------- - - -N A- - -
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L)
---- --
X
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- -X - - - - -
----------------
THAILAND
---
X
--- --- ----- ---------------------
SET (L)
-X - - - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
------
----------------
UNITED STATES
--- --- ---
X
----- --------------------- X- - - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- -X - - - - -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 3 (P)
-X - - - - -
----------------
ZIMBABWE ---
X
--- --- ----- ---------------------
lAS 3 (P) X
------
---------------- --- --- --- ----- --------------------- - - - - - -
GROUP Accomrrs 241
5 .4{b) The information about susidiaries should be given for

all subsidiaries

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF

----------------
AUSTRALIA X
--- --- ---------------------
CA (L) X
----------------
BELGIUM X ---------------------
RD (L) X
----------------
BRAZIL X
---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS ---------------------
SJAP (P)
-- --
X X
----------------
CHILE X ---------------------
TB 11 (P) X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
CA (L) X
----------------
FRANCE X
--------------------- X
----------------
GERMANY X
---------------------
SCL (L) X
----------------
HONG KONG X
--------------------- X
----------------
INDONESIA X
--------------------- NA
----------------
IRELAND X ---------------------
CA 1963 (L) X
----------------
ITALY X ---------------------
CIVIL CODE (L) X
----------------
JAPAN X ---------------------
SRO (L) X
----------------
MALAYSIA X ---------------------
MCA (L) X
----------------
MEXICO X ---------------------
B 8 {P) X
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA ---------------------
CA 1973 (L)
--- ----- ---------------------
X X
----------------
SPAIN X PGC (L) X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- X
----------------
----------------
UNITED STATES X --------------------- X
----------------
URUGUAY X --------------------- X
----------------
ZAMBIA X
--------------------- X
----------------
ZIMBABWE ---------------------
--------------------- - - - - -
X X
----------------
242 GROUP ACCOUBTS
S.S(a) A parent corporation is exempt from the group accounts

requirement when it is itself a wholly-owned subsidiary
of another corporation

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
- - -- - - - ----------------
AUSTRALIA X CA (L) NA
BELGIUM X RD (L) NA
CHANNEL ISLANDS X SJAP (P) N A

CHILE X TB 11 (P) N A
DENMARK X CA 1973 (L) N A
FINLAND X N A
FRANCE X COB (S) NA
----------------
GERMANY --- --- ---
X
----- ---------------------
SCL (L)
- - N- A- - -
HONG KONG X CO (L) N NA
INDONESIA X NA
IRELAND X CA 1963(L);SSAP14(P) N A
ITALY X CIVIL CODE (L) N A
JAPAN X N A
MALAYSIA X MCA lAS 3 (P) NA
--- --- --- -----
(L);
----------------
MEXICO X ---------------------
B 8 (P) - NA
NEW ZEALAND X CA (L) N A
PHILIPPINES X APB 23 (P) N A
PORTUGAL X NA
SPAIN X NA
SWITZERLAND X NA
THAILAND X SET (L) N A
UNITED KINGDOM X CA 1948(L);SSAP14(P) NA
UNITED STATES
--- --- -----
X
---------------------
ARB 51 (P) - - N- A-
URUGUAY X NA
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 3 (P) - NA
NA
GR.OUP ACCOUIIITS 243
5.5 {b) A parent corporation is exempt from the group accounts

requirements when it is itself a subsidiary (but not wholly-
owned) of another corporation

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
-- -- -- - - - - - - - - -
- - -N -A - -
---------------- --- --- --- -----
AUSTRALIA X ---------------------
CA (L)
---------------- --- --- --- -----
BELGIUM ---------------------
RD (L)
- - -N A- - -
----------------
BRAZIL
--- --- --- -----
X
X ---------------------
LAW 6.404 (L)
- - -N -A - -
----------------
CHANNEL ISLANDS
--- --- ---
X
----- --------------------- - - -N -A - -
----------------
CHILE
--- --- --- ---- ---------------------
TB 11 (P)
- - -N A- - -
----------------
COLOMBIA
--- --- --- -----
X
X ---------------------
NIPA (P)
- - -N -A - -
----------------
DENMARK
--- --- --- -----
X ---------------------
CA 1973 (L)
- - -N -A - -
----------------
FINLAND
--- --- --- ----- --------------------- - - N- A- - -
----------------
FRANCE
--- --- --- -----
X
X ---------------------
COB (S)
- - -N -A - -
---------------- --- --- --- ----- --------------------- - - - - - -
GERMANY I
----------------1--- --~ 1~-J 1----~ 1::~-~~~-------------~ 1J 1Jf-1t.11- -
HONG KONG I I x I co (L)
----------------
INDONESIA
---
I
--- --- ----- ---------------------
I I I I ~I I
- - -N -A - -
----------------
IRELAND
--- --- --- -----
X
---------------------
- --- - -
NA
----------------
ITALY
--- --- --- X
----- ---------------------
CIVIL CODE (L)
- - -
NA
- - -
----------------
JAPAN
--- --- --- -----
X
--------------------- - - -N A- - -
----------------
MALAYSIA
--- --- --- -----
X
---------------------
MCA (L); lAS 3 (P)
- - -N A- - -
----------------
MEXICO
--- --- --- ----X
X ---------------------
B 8 (P)
- - -N -A - -
----------------
NEW ZEALAND
--- --- --- ----- ---------------------
CA (L)
- - -N -A - -
---------------- --- --- --- ----- --------------------- - - -N -A - -
X
PHILIPPINES
----------------
PORTUGAL
X
--- --- --- ----- --------------------- - - -N -A - -
----------------
SOUTH AFRICA
--- --- --- -----
X
X ---------------------
CA 1973 (L)
- - -N -A - -
----------------
SPAIN
--- --- --- ----- --------------------- - - -N A- - -
----------------
SWITZERLAND
--- --- ---
X
X
----- --------------------- - - -N -A - -
---------------- --- --- --- ----- --------------------- - - -N -A - -
- - -N -A - -
THAILAND SET (L)
----------------
UNITED KINGDOM
--- --- --- -----
X
X ---------------------
----------------
UNITED STATES
--- --- --- ----- ---------------------
ARB 51 (P)
- - -N -A - -
----------------
URUGUAY
--- --- --- ----- --------------------- - - -N -A - -
X
----------------
ZAMBIA
--- --- --- -----
X
---------------------
lAS 3 (P)
- -- ---
NA
----------------
ZIMBABWE
--- --- --- ----- ---------------------
X
X CA 195l(L); lAS 3(P)
- - -N -A - -
---------------- --- --- --- ----- --------------------- - - - - - -
244 GROUP A.CCOUITS
5.6 Subsidiary corporations should disclose in their financial

statements the name of their ultimate parent

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB C D E F

---------------- X
AUSTRALIA CA (L) NA
----------------
BELGIUM X NA
----------------
BRAZIL
--- --- X NA
----------------
CHANNEL ISLANDS X SJAP (P) NA
----------------
CHILE X NA
----------------
COLOMBIA X SC (L) NA
----------------
DENMARK X NA
----------------
FINLAND X CA (L) NA
----------------
FRANCE X COB (S) NA
----------------
GERMANY X SCL (L) NA
----------------
HONG KONG X ---------------------
co (L) NA
----------------
INDONESIA X NA
----------------
IRELAND
--- --- X NA
----------------
ITALY X NA
----------------
JAPAN X NA
----------------
MALAYSIA X NA
----------------
MEXICO
--- --- X NA
----------------
NEW ZEALAND
--- --- X NA
----------------
PHILIPPINES X
--- ---
X
----------------
PORTUGAL X NA
----------------
----------------
SPAIN X NA
----------------
SWITZERLAND X NA
----------------
THAILAND X X
----------------
UNITED KINGDOM X CA 1967 (L) NA
----------------
UNITED STATES X NA
----------------
URUGUAY X NA
----------------
ZAMBIA X NA
----------------
ZIMBABWE X NA
----------------
GROUP ACCOUITS 245
COBSOLIDATIOBS
5.7(a) Group accounts should take the form of consolidated
accounts in all cases

PRACTICE
R
e
c p Np Consolid-
R 0 e 0 e a ted
e m r t r group
q m m m accounts
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF

----------------
AUSTRALIA X ---------------------
CA (L) X
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) N NA
----------------
----------------
CHILE X ---------------------
c 85 (L); TB 11 {P) X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
---------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
CA (L) X
---------------
FRANCE X --------------------- X
----------------
GERMANY X ---------------------
SCL (L) X
---------------
HONG KONG --------------------- X
--------------
X
INDONESIA X ---------------------
PAl 1 (P) NA
---------------
IRELAND X ---------------------
CA 1963 (L) X
----------------
ITALY X ---------------------
CIVIL CODE (L) 0
----------------
JAPAN X ---------------------
CFP (L) X
----------------
MALAYSIA --------------------- X
-----
X
-----~----------
MEXICO X ---------------------
B 8 (P) X
----------------
NEW ZEALAND X ---------------------
CA (L) NA
--------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- X
~---------~-----
THAILAND --------------------- X
-------~-------
UNITED KINGDOM
--- --- X
X ---------------------
CA 1948 (L) X
-------~--------
UNITED STATES X ---------------------
ARB 51 {P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- X
----------------
ZIMBABWE X ---------------------
1951 (L)
---------------
X
---------------------
246 GR.OUP ACCOUITS
5.7(b) Group accounts should take the form of consolidated accounts

in most cases with certain exceptions (see Q.5.12 for details
of the exceptions)

PRACTICE
R
e Non-
c p Np Consolid-
R 0 e 0 e a ted
e m r t r group
q m m m accounts
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE ----------
AB c DE F
--- --- -- ---- --
ARGENTINA
---------------- --- --- --- ----- ---------------------
N/A N/A N/A N/A NA
- - - - - -0
AUSTRALIA
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - - - -0
CA (L)
---------------- --- --- --- ----- ---------------------

X
- - N- A- - -
LAW 6.404 (L)
- - - - - -0
BRAZIL N
--- --- --- ----- ---------------------
X
----------------
c 85 (L); TB 11 {P) - - X- - - -
CHANNEL ISLANDS SJAP (P)
---------------- --- --- --- -----
X
---------------------
CHILE
---------------- --- --- --- ----- --------------------- - - -N A- - -
X
- - - - - -0
COLOMBIA
--- --- ----- ---------------------
X
---------------- ---
DENMARK
---------------- --- --- --- -----
X AAPA 1981 (L)
--------------------- - - - - - -0
- - - - - -X
FINLAND CA (L)
----------------
FRANCE
--- --- --- ----- ---------------------
X
CNC (L)
--- --- --- ----- - - - - - X-
X
----------------
GERMANY ---------------------
SCL (L)
----------------
HONG KONG
--- --- --- ----- ---------------------
X
co (L)
- - - - - X-
--- --- --- ----- --------------------- - - -N A- - -
X
----------------
INDONESIA
----------------
IRELAND
--- --- --- ----- ---------------------
X
CA 1963{L);SSAP14(P)
- - - - - -0
----------------
ITALY
--- --- --- -----
X
---------------------
CIVIL CODE (L)
-X - - - - -
----------------
JAPAN
--- --- --- -----
X
---------------------
CFP (L)
- - - - - -0
----------------
MALAYSIA
--- --- --- ----- ---------------------
X
MCA (L)
- - - - - X-
----------------
MEXICO
---
X
--- --- ----- ---------------------
B 8 {P) N
- - - - - X-
---------------- ---
X
--- --- ----- --------------------- - - -N A- - -
- - - -X - -
NEW ZEALAND CA (L)
---------------- --- ---
X
--- ----- ---------------------
PHILIPPINES
---------------- --- --- ---X ----- --------------------- - - -N A- - -
X APB 23 {P)
- - - - - -0
PORTUGAL
----------------
SOUTH AFRICA
--- --- --- ----- ---------------------
CA 1973 (L)
---------------- --- --- ---
X
----- --------------------- - - -N A- - -
SPAIN
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - -X -
----------------
THAILAND
--- --- ---
X
----- --------------------- - - - - - -0
----------------
UNITED KINGDOM
--- --- --- ----- ---------------------
X
- - - - - -X
--- --- --- ----- --------------------- - - - - - -0
X
----------------
UNITED STATES ARB 51 (P)
----------------
URUGUAY
--- --- ---X ----- --------------------- - - N- A- - -
X
---------------- --- --- --- ----- --------------------- - - - - - -0

ZAMBIA
--- --- ----- --------------------- - - - - - -0
X
---------------- ---
---------------- --- --- --- ----- --------------------- - - - - - -
ZIMBABWE X CA 1951 (L)
GltOUP ACCOUIITS 247
5.8(a) Where consolidated accounts are required or recommended

(either in all cases or in most cases), then it is permitted
to exclude a subsidiary from consolidation because the
activities of the subsidiary are so dissimilar from the rest
of the group that it would be misleading to consolidate that
subsidiary's results

PRACTICE
K
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- - - 1------------------------
AUSTRALIA X CA (L) 0
BELGIUM X X
BRAZIL X N N A
CHANNEL ISLANDS X SJAP (P) 0
CHILE X TB 11 (P) X
DENMARK X 0
FINLAND X CA (L) X
FRANCE X CNC (L) X
GERMANY X SCL (L) 0
HONG KONG X ---------------------
CO (L) - X
INDONESIA X BAPEPAM 5 (L) NA
----------------
IRELAND X --- ----- ---------------------
SSAP 14 (P) 0
ITALY N/A N/A N/A N/A 0
JAPAN X CFR (L) 0
----------------
MALAYSIA X ---------------------
lAS 3 (P) - X
MEXICO X B 8 (P) X
PORTUGAL N/A N/A N/A N/A N A
SPAIN N/A N/A N/A N/A NA
THAILAND X X
UNITED KINGDOM X SSAP 14 (P)
X --- --- ----- --------------------- -
X
----------------
UNITED STATES --- ARB 51 (P) X
URUGUAY N/A N/A N/A N/A N A
ZIMBABWE X CA 1951(L); lAS 3(P)
248 GI.OOP ACCOUBTS
S.S(b) Where consolidated accounts are required or recommended

(either in all cases or in .most cases), then it is
permitted to exclude a subsidiary from consolidatio n
because control of the subsidiary is intended to be temporary

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t ,t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- - -- - - - - - -
---------------- --- --- ---X ----- ------------
CA (L) --------- - - - - - -0
AUSTRALIA
------------ ---- --- --- ---
X
----- --------------------- - - - - - -0
BELGIUM
---------------- --- --- ---
X
----- ---------------------N - - -N -A - -
BRAZIL
------------ ---- --- --- ---
X
----- --------------------- - - - - - -0
CHANNEL ISLANDS
---- --- --- --- ----- ------------ - - - - - -0
------------ X c 85 (L); TB---------
11 (P)
--------- - - -N A- - -
CHILE
------------
COLOMBIA ---- --- --- ---
X
----- ------------
NIPA (P)
------------ ---- --- --- --- -----
X ---------------------
- - - - - -0
----- ------------ --------- - - - - X- -
DENMARK
------------ ---- --- --- ---
X CA (L)
FINLAND
------------ ---- --- ---
X
--- ----- ------------
CNC (L) --------- - - - - - ·-X
---- --- --- --- -----
FRANCE
------------ X ------------
SCL (L) --------- - - - - - -0
--------- - - - - - -0
GERMANY
------------
HONG KONG ---- --- --- --- -----
X ------------
co (L)
INDONESIA ---- X
------------ --- --- --- ----- ------------
BAPEPAMS(L) ---------
;PAI l(p)
- - -N A- - ·-
------------
IRELAND ---- ---
X
--- --- ----- ------------
SSAP 14 (P) ---------
- - - - - -0
------------
ITALY ---- --- --- --- -----
N/A N/A N/A N/A ------------
--------- - - - - - -0
------------
JAPAN ---- ---
X
--- --- ·---- ------------
CFR (L) --------- - - - - - -0
---------------- ---
X
--- --- ----- ------------
lAS 3 (P) ---------
- - - - - -X
MALAYSIA
---------------- --- --- ---
X
----- ------------
B 8 (P) --------- - - - - - -0
--------- - - -N -A - -
MEXICO
NEW ZEALAND ----
------------ --- --- --- -----
X ------------
CA (L)
PHILIPPINES ---- X
------------ --- --- --- ----- ------------
SEC (L) --------- - - - - - -0
------------ ---- --- --- --- -----
N/A N/A N/A N/A ------------
--------- - - -N -A - -
PORTUGAL
SOUTH AFRICA----
------------ --- --- --- ----- CA 1973 (L) ---------
X ------------
- - - - - -0
------------
SPAIN ---- --- --- --- ----
N/A N/A N/A N/A ---------------------
- - - - - -0
--- --- --- -----
SWITZERLAND ---- N/A N/A N/A N/A ------------
------------ --------- - - - - - -0
------------
THAILAND ---- --- --- ---
X
----- ------------ --------- - - - - - -0
ED FAS 22 (P)
------------ ---- ---
UNITED KINGDOM X
--- --- ----- ------------
SSAP 14 (L) ---------
- - - - - -0
------------
UNITED STATES---- ---
X
--- --- ----- ------------
ARB 51 (P)
--------- - - - - - -0
------------
URUGUAY ---- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
------------ ---- --- ---
X
--- ----- ------------
IAS 3 (P) ---------
- - - - - -0
ZAMBIA
------------
ZIMBABWE ---- ---
X
--- --- ----- ------------
lAS 3 (P) ---------
- - - - - -0
---------------- --- --- --- ----- --------------------- - - - - - -
GB.OUP ACCOUftS 249
5.8{c) Where the consolidated accounts are required or recommended

to exclude a subsidiary from consolidation because the
subsidiary operates under severe restriction such that the
parent company cannot effectively exercise control

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F
-- -- -- -----1·--------------------------
AUSTRALIA X CA (L) 0
BELGIUM X X
BRAZIL X N N A
CHANNEL ISLANDS X 0
CHILE X TB 11 (P)
COLOMBIA
--- --- X NIPA (P) N A
0
DENMARK X 0
FINLAND X I ---------------------
CA (L) -I I- I I 0
FRANCE X CNC (L) 0
GERMANY X --- --- ----- ---------------------
---------------- --- SCL (L) X
HONG KONG X CO (L) 0
INDONESIA X BAPEPAM 5 (L) N A
IRELAND X ---------------------
SSAP 14 (P) 0
----------------
JAPAN X --- --- ----- ---------------------
CFR (L) - - - - - -0
MEXICO X ---------------------
B 8 (P) 0
NEW ZEALAND X CA (L) NA
SPAIN N/A N/A N/A N/A N A
UNITED KINGDOM X ---------------------
SSAP 14 (P) -- 0
URUGUAY N/A N/A N/A N/A N A
250 GB.OUP ACCOUiiTS
5.8(d) Where consolidated accounts are required or recommended

to exclude a subsidiary from consolidation because inclusion
would involve undue expense and delay

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF

AUSTRALIA X ---------------------
CA (L) 0
BELGIUM X --------------------- - - - - X
BRAZIL X ---------------------N N A
SJAP (P) 0
CHILE X
--- ----- ---------------------
TB 11 {P)
- - - - - 0
COLOMBIA X ---------------------
NIPA (P) NA
DENMARK X --------------------- 0
FINLAND X ---------------------
CA (L) 0
FRANCE X ---------------------
CNC (L)
-
0
GERMANY X ---------------------
SCL (L) 0
HONG KONG X ---------------------
co (L) X
INDONESIA X --------------------- NA
IRELAND X ---------------------
CA 1963 (L) 0
------~---------
ITALY N/A N/A N/A N/A --------------------- 0
JAPAN X --------------------- 0
MALAYSIA X --------------------- 0
MEXICO ---------------------
B 8 (P)
-
0
--- --- X
X
NEW ZEALAND ---------------------
CA (L) NA
PHILIPPINES
--- --- X --------------------- 0
PORTUGAL N/A N/A N/A N/A --------------------- NA
SOUTH AFRICA X ---------------------
CA 1973 (L) X
SPAIN N/A N/A N/A N/A --------------------- NA

SWITZERLAND N/A N/A N/A N/A --------------------- 0
THAILAND X --------------------- 0
UNITED KINGDOM X ---------------------
CA 1948 (L) X
UNITED STATES X ---------------------

ARB 51 (P) 0
URUGUAY N/A N/A N/A N/A --------------------- NA
ZAMBIA X --------------------- X
ZIMBABWE X ---------------------
CA 1951 (L) 0
---------------------
GR.OUP ACCOUJITS 251
5.8(e) Where consolidated accounts are required or recommended

to exclude a subsidiary from consolidation because inclusion
would be misleading or harmful

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- --- - - - - - -
----------------
AUSTRALIA
--- --- --- ----- ---------------------
CA (L)
- - - - - -0
----------------
BELGIUM
-- --- ---
X
----- --------------------- - - - - - -0
----------------
BRAZIL
--- --- ---
X
----- ---------------------N - - N- -A - -
----------------
CHANNEL ISLANDS
--- --- --- ----- ---------------------
X
SJAP (P)
- - - - - -0
----------------
CHILE
--- --- --- -----
X
---------------------
TB 11 (P)
- - - - - -0
--- --- --- ----- --------------------- - - N- A- - -
X
----------------
COLOMBIA NIPA (P)
----------------
DENMARK
--- --- ---
X
----- --------------------- - - - - - -0
----------------
FINLAND
--- --- --- ----- ---------------------
X
CA (L)
- - - - - -0
--- --- --- ----- --------------------- - - - - - -0
X
----------------
FRANCE
----------------
GERMANY
--- --- --- ----- ---------------------
X
SCL (L)
- - - - -X -
----------------
HONG KONG
--- --- ---
X
----- ---------------------
co (L)
- - - - - -0
--- --- --- ----- --------------------- - - -N - - -
X
----------------
INDONESIA BAPEPAM 5 (L) A
----------------
IRELAND
---
X
--- --- ----- ---------------------
- - - - - -0
----------------
ITALY
---
X
--- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
JAPAN
--- --- --- ----- ---------------------
CFR (L)
- - - - - -0
--- --- --- ----- --------------------- - - - - - -0
X
----------------
MALAYSIA
----------------
MEXICO
--- --- ---
X
----- ---------------------
B 8 (P)
- - - - - -0
----------------
NEW ZEALAND
--- --- --- ----- ---------------------
X
CA (L)
- -N - A- - -
--- --- --- ----- --------------------- - - - - - -0
X
----------------
PHILIPPINES
--- --- ----- - - -N A- - -
X
----------------
PORTUGAL N/A N/A N/A N/A ---------------------
---
----------------
SOUTH AFRICA
--- --- --- ----- ---------------------
CA 1973 (L)
- - - - - -X
----------------
SPAIN
--- --- --- -----
X
N/A N/A N/A N/A ---------------------

- - -N A- - -
----------------
SWITZERLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
THAILAND
--- --- --- ----- --------------------- - - - - - -0
----------------
UNITED KINGDOM
--- --- --- ----- ---------------------
X
SSAP 14 (P)
- - - - - -X
----------------
UNITED STATES
--- --- --- -----
X
---------------------
ARB 51 (P)
- - - - - -0
----------------
URUGUAY
--- --- --- -----
X
N/A N/A N/A N/A ---------------------

- - -N A- - -
----------------
ZAMBIA
--- --- --- ----- --------------------- - - - - - -0
----------------
X
----- ---------------------
CA 1951 (L)
- - - - - -0
---------------- --- --- --- ----- --------------------- - - - - - -
X
2 52 GR.OUP .A.CCOUIITS
5.8(f) Where consolidated accounts are required or recommended

to exclude a subsidiary from consolidation for some reason
other than those listed in 5.8 (a) - (e) (See Notes)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- ---
AUSTRALIA X ---------------------
CA (L) 0
BELGIUM X --------------------- X
BRAZIL ---------------------N N A
SJAP (P) N 0
CHILE X ---------------------
TB 11 (P) 0
COLOMBIA X ---------------------
NIPA (P) NA
DENMARK X --------------------- X
FINLAND X ---------------------
CA (L) X
FRANCE X ---------------------
CNC (L) N X
GERMANY X ---------------------
SCL (L) N X
HONG KONG N/A N/A N/A N/A --------------------- 0
INDONESIA X ---------------------
BAPEPAM 5 (L) N NA
IRELAND X ---------------------
SSAP 14 (P) N X
ITALY N/A N/A N/A N/A --------------------- X
JAPAN X ---------------------
CFR (L) NX
MALAYSIA X ---------------------
lAS 3 (P) X
MEXICO X ---------------------
B 8 (P) X
NEW ZEALAND X ---------------------
CA (L) N NA
PHILIPPINES X --------------------- 0
PORTUGAL N/A N/A N/A N/A --------------------- NA
SOUTH AFRICA X ---------------------
CA 1973 (L) N X
SPAIN N/A N/A N/A N/A --------------------- NA
SWITZERLAND
--- --- ---
N/A N/A N/A N/A --------------------- X
THAILAND X --------------------- X
UNITED KINGDOM X ---------------------
SSAP 14 (P) N X
UNITED STATES X --------------------- X
ZAMBIA X ---------------------
lAS 3 (P) 0
ZIMBABWE X ---------------------
CA 1951(L); lAS 3(P) 0
---------------------
5.9 If a subsidiary is excluded from consolidation for the reasons

given earlier then certain information concerning that
subsidiary should be disclosed in the group accounts
(See Notes)

PRACTICE
l{
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- - -- - - --------------------
AUSTRALIA X CA (L) N NA
BELGIUM X X
BRAZIL X CVM (L) N N A
CHANNEL ISLANDS X SJAP (P) N N A
CHILE X TB 11 (P) N X
COLOMBIA X NA
DENMARK X X
FINLAND X CA (L) N X
FRANCE X X
GERMANY X X
HONG KONG X CO (L) N X
INDONESIA X BAPEPAM 5 (L) N N A
IRELAND X SSAP 14 (P) N N A
JAPAN X CFR (L) N X
MALAYSIA X MCA (L); lAS 3 (P) N X
----------------
MEXICO ---X --- --- ----- ---------------------
B 8 (P) N - - -X - - -
NEW ZEALAND X CA (L) N NA
----------------
PHILIPPINES ---
X --- --- ----- --------------------- X- -- - -
SEC (L); APB 23 (P)N -
SOUTH AFRICA X CA 1973 (L) N X
SPAIN N/A N/A N/A N/A NA
THAILAND X X
UNITED STATES X APBO 18 (P) N X
URUGUAY N/A N/A N/A N/A NA

ZAMBIA X lAS 3 (P) N X
ZIMBABWE X CA 1951(L);IAS3(P) N N A
254 GB.OUP Accomrrs
5.10(a) The parent corporation should publish a separate balance
sheet

PRACTICE
1{
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X ---------------------
CA (L) X
BELGIUM X --------------------- X
BRAZIL X ---------------------
CVM PO 4 (L) NA
CHANNEL ISLANDS X
--- ----- ---------------------
SJAP (P) X
CHILE X
--- ----- ---------------------
c 85 (L) X
- -- --
COLOMBIA X ---------------------
SE (S) NA
DENMARK X ---------------------
AAPA 1981 (L) X
FINLAND X ---------------------
CA (L) X
---- -
FRANCE X ---------------------
CL (L) X
- --- -
GERMANY X ---------------------
SCL (L) X
-----
HONG KONG X ---------------------
co (L) X
INDONESIA X ---------------------
BAPEPAM 5 (L) NA
IRELAND X ---------------------
CA 1963 (L) X
ITALY X ---------------------
CIVIL CODE (L) X
JAPAN X ---------------------
SRO (L) X
MALAYSIA X
--- --- ---------------------
MCA (L) X
MEXICO X --------------------- X
----------------
NEW ZEALAND X ---------------------
CA (L) NA
PHILIPPINES X --------------------- X
PORTUGAL
--- --- X --------------------- NA
SOUTH AFRICA X ---------------------
CA 1973 (L) X
SPAIN X ---------------------
LSA (L) NA
SWITZERLAND X --------------------- X
THAILAND X ---------------------
CCC (L) X
UNITED KINGDOM X ---------------------
CA 1948 (L) X
UNITED STATES X --------------------- X
ZAMBIA
--- --- X --------------------- X
ZIMBABWE X ---------------------
CA 1951 (L) X
---------------------
GB.OUP ACCOUIITS 255
5.10(b) The parent corporation should publish a separate income

statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF

----------------
AUSTRALIA X ---------------------
CA (L) X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
CVM PO 4 (L) NA
----------------
----------------
CHILE X ---------------------
c 85 (L) X
----------------
COLOMBIA X ---------------------
SE (S) NA
----------------
DENMARK X
---------------------
AAPA 1981 (L) X
----------------
FINLAND X ---------------------
CA (L) X
----------------
FRANCE X ---------------------
CL (L) X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X ---------------------
BAPEPAM 5 (L) NA
----------------
IRELAND X --------------------- 0
----------------
ITALY X ---------------------
CIVIL CODE (L) X
----------------
JAPAN X ---------------------
SRO (LO X
----------------
MALAYSIA X ---------------------
MCA (L) X
----------------
MEXICO X --------------------- X
----------------
NEW ZEALAND X ---------------------
CA (L) NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X
---------------------
CA 1973 (L) X
----------------
SPAIN X
---------------------
LSA (L) NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X
---------------------
CCC (L) X
----------------
----------------
UNITED STATES X --------------------- X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X
--------------------- 0
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
256 GB.OUP ACCOUITS
5.10{c) The parent corporation should publish a separate funds

statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF

----------------
AUSTRALIA X
---------------------
SE (S) X
----------------
BELGIUM X
--------------------- X
----------------
BRAZIL X
---------------------
CVM PO 4 (L) NA
----------------
CHANNEL ISLANDS X
--------------------- 0
----------------
CHILE X ---------------------
c 85 (L) X
----------------
COLOMBIA X ---------------------
SE (S) NA
----------------
DENMARK X --------------------- X
----------------
FINLAND X
---------------------
CA (L) X
----------------
FRANCE ---------------------
--- --- X X
----------------
GERMANY X
--------------------- X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X
---------------------
BAPEPAM 5 (L) NA
----------------
IRELAND --------------------- 0
-
X
----------------
ITALY X
---------------------
PC 2 (P)
- - - X
----------------
JAPAN X --------------------- X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X --------------------- X
----------------
NEW ZEALAND X
---------------------
CA (L) NA
----------------
PHILIPPINES X
--------------------- X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
----------------
SPAIN X ---------------------
PGC (L) NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
CCC (L) X
----------------
----------------
UNITED STATES X --------------------- X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA --------------------- 0
--------------------- - - - - - X
X
----------------
ZIMBABWE
---------------- --- ---
X
----- --------------------- - - - - -
GR.OUP ACCOURTS 257
S.ll{a) The consolidated accounts should be prepared on the

basis of line-by-line consolidation (showing minority
interests)

PRACTICE
R
e
c p Np
R 0 e 0 e Basis
e m r t r disclosed
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
- - -- -- ---- - - - - - -
----------------
AUSTRALIA
--- --- --- ----- --------------------- - - -X - - -
X
----------------
BELGIUM
--- --- ---
X
----- --------------------- -X - - - - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
CVM INST 15 (L) N
- - -N A- - -
----------------
CHANNEL ISLANDS
--- --- --- ----- ---------------------
SJAP (P)
- - - - -X -
----------------
CHILE
---
X
X
--- --- ----- ---------------------
TB 11 (P)
- - - -X - -
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
NIPA (P)
- - -N A- - -
---------------
DENMARK
---
X
--- --- ----- --------------------- X- - - - - -
---------------- --- --- --- ----- --------------------- ------
FINLAND
----------------
FRANCE
X
--- ---
X
CA (L)
--- ----- ---------------------
CNC (L)
- X- - - - -
X
----------------
GERMANY
---
X
--- --- ----- ---------------------
SCL (L)
- X- - - - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
co (L) - - - - -X -
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 14 (P)
- - - - - -0
----------------
ITALY
--- --- ---
X
----- --------------------- -X - - - - -
----------------
JAPAN
---
X
--- --- ----- ---------------------
CFP (L)
-X - - - - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 3 {P)
-X - - - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
B 8 (P)
- - - - - -X
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 8 (P)
- - -N A- - -
----------------
PHILIPPINES
--- ---
X
--- ----- ---------------------
APB 23 (P)
-X - - - - -
----------------
PORTUGAL
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
SOUTH AFRICA
--- ---
X
--- ----- ---------------------
CA 1973 (L)
- - - - - -0
----------------
SPAIN
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- X- - - - - -
----------------
THAILAND
--- ---
X
--- ----- ---------------------
ED FAS 22 (P)
- -X - - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
SSAP 14 (P)
- - - - - -0
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
ARB 51 (P)
------
X
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 3 (P)
- - - - - -0
----------------
ZIMBABWE
--- --- --- ----- ---------------------
CA 195l(L); lAS 3(P)
- - - - - -0
---------------- --- --- --- ----- --------------------- - - - - - -
X
258 GltOUP ACCOUITS
S.ll{b) The consolidated accounts should be prepared on the

basis of proportional consolidation (ie. if the investing
corporation owns 60% of the investee, then fixed assets in
the consolidated balance sheet include 60% of the investee's
assets, and so on for all separate assets and liabilities)

PRACTICE
R
e
c p N p Basis
R 0 e 0 e disclosed
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F
-- -- -- --- 1---------------- --
----------------
AUSTRALIA X X
----------------
BELGIUM X 0
----------------
BRAZIL X CVM INST 15 (L) N A
----------------
CHANNEL ISLANDS X 0
----------------
CHILE X TB 11 (P) 0
----------------
----------------
DENMARK X 0
----------------
FINLAND X 0
----------------
FRANCE X CNC (L) X
----------------
GERMANY X SCL (L) X
----------------
HONG KONG X CO (L) 0
----------------
INDONESIA X NA
----------------
----------------
ITALY X 0
----------------
JAPAN X CFP (L) 0
----------------
MALAYSIA X IAS 3 (P) 0
----------------
MEXICO X ---------------------
B 8 (P) 0
----------------
----------------
----------------
PORTUGAL X N A
----------------
----------------
SPAIN X N A
----------------
SWITZERLAND X 0
----------------
----------------
----------------
UNITED STATES X APBO 18, INT.No.2(P) X
----------------
URUGUAY X N A
----------------
----------------
ZIMBABWE X 0
----------------
GR.OUP ACCOUIITS 259
5.11.(c) The consolidated accounts should be prepared on the basis of

equity accounting (ie. the ownership share of income and net
assets of the investee corporation) for subsidiaries

PRACTICE
R
e
c p N p
R 0 e 0 e Basis
e m r t r disclosed
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F

AUSTRALIA
--- --- X N A
X
BELGIUM X 0
BRAZIL X LAW 6.404 (L) N N A
CHANNEL ISLANDS X 0
CHILE X 0
DENMARK
--- --- --------------------- - - - - -
X 0
FINLAND X 0
FRANCE X CNC (L) X
GERMANY X
---------------------
SCL (L) X
HONG KONG X X
INDONESIA
--- --- X N A

ITALY X 0
JAPAN X CFR (L) 0
MALAYSIA X X
MEXICO X B 8 (P) 0
NEW ZEALAND X SSAP 8 (P) N NA
PHILIPPINES X APB 23 0
PORTUGAL X
SOUTH AFRICA
--- --- X
N A
X
SPAIN X N A
SWITZ ERLAND X 0
THAILAND X X
UNITED KINGDOM
--- --- SSAP 14 (P) N 0
--- --- ---
X
UNITED STATES X
---------------------
ARB 51 (P)
- - - - - 0
URUGUAY
--- --- X N A
ZAMBIA X 0
ZIMBABWE X CA 1951 (L) 0
260 GB.OUP ACCOU111TS
atHER FOB.MS OF GB.OUP ACCOUirlS

5.12(a) Separate financial statements for some (or all) members
of the group (published in the group corporate report)
are permitted as an alternative to consolidated accounts

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
- - - - ---- ------
----------------
AUSTRALIA
--- --- --- ----- ---------------------
CA (L)
- - - - - -0
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - - - -0
----------------
BRAZIL
--- --- --- -----
X
---------------------
CVM INST 15 (L)
- - -N -A - -
----------------
CHANNEL ISLANDS
--- --- --- ----- ---------------------
X
SJAP (P)
- - - - - -0
----------------
CHILE
--- --- --- -----
X
c 85 (L); TB 11 (P) - - - X
--------------------- ---
----------------
COLOMBIA
--- --- --- -----
X
---------------------
NIPA (P)
- - -N -A - -
--- --- --- ----- ---------------------N - - - - - -0
X
----------------
DENMARK
--- --- --- ----- - - - - - -0
X
----------------
FINLAND ---------------------
CA (L)
----------------
FRANCE
--- --- --- ----- ---------------------
X
CNC (L)
- - - - - -X
---------------- --- --- --- ----- --------------------- - - - - - -X
X
GERMANY SCL (L)
--- --- --- ----- --------------------- - - - - - -X
X
----------------
HONG KONG
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - -N -A - -
----------------
IRELAND
--- --- ---
X
----- ---------------------
CA 1963 (L)
- - - - - -0
--- --- ----- --------------------- -X - - - - -
X
----------------
ITALY
--- CIVIL CODE (L)
---------------- --- -- --- ----- --------------------- - - - - - -0
X
JAPAN
----------------
MALAYSIA
--- --- --- ----- --------------------- - - - - - -X
X
----------------
MEXICO
--- --- --- -----
X
---------------------
B 8 (P)
- - - - - -0
----------------
NEW ZEALAND
--- --- --- ----- ---------------------
X
CA (L)
- - -N -A - -
----------------
PHILIPPINES
--- --- ---
X
----- --------------------- - - - -X - -
----------------
PORTUGAL
--- --- ---
X
----- --------------------- - - -N -A - -
----------------
SOUTH AFRICA
--- --- ---
X
----- ---------------------
CA 1973 (L) N
- -----
----------------
SPAIN
--- --- ---
X
----- --------------------- - - -
NA
- -
0
-
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - -X -
----------------
THAILAND
--- --- ---
X
----- --------------------- - - - - - -0
----------------
UNITED KINGDOM
--- --- ---
X
----- ---------------------
CA 1948 (L)
- - - - - -0
----------------
UNITED STATES
--- --- ---
X
----- ---------------------
ARB 51 (P)
- - - - - -0
---------------- --- --- ---
URUGUAY
X
----- --------------------- - - -N -A - -
----------------
ZAMBIA
--- --- ---
X
----- --------------------- - - - - - -0
----------------
ZIMBABWE
X
--- --- --- ----- ---------------------
CA 1951 (L)
- - - - - -0
---------------- --- --- --- ----- --------------------- - - - - - -
X
GB.OOP ACCOUIITS 261
5.12(b) Two or more sets of consoliidated statements for particular

sub-groups (all published in the group corporate report)
are permitted as an alternative to consolidated accounts

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
----
----------------
AUSTRALIA
--- --- X ---------------------
CA (L) 0
----------------
BELGIUM X --------------------- 0
----------------
BRAZIL X ---------------------
CVM INST 15 (L) NA
----------------
SJAP (P) 0
----------------
CHILE X ---------------------
c 85 (L); TB 11 (P) 0
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK ---------------------N 0
-
X
----------------
FINLAND X ---------------------
CA (L)
- - - - 0
----------------
FRANCE X ---------------------
CNC (L) X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X --------------------- 0
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
CA 1963 (L) 0
----------------
ITALY X --------------------- 0
----------------
JAPAN X --------------------- 0
----------------
MALAYSI.A X --------------------- 0
----------------
MEXICO X ---------------------
B 8 (P) X
----------------
NEW ZEALAND X ---------------------
CA (L) NA
----------------
PHILIPPINES X --------------------- 0
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) N 0
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND ---------------------
----------------
UNITED KINGDOM
--- --- X
---------------------
CA 1948 (L) N
0
--- --- - -
X X
----------------
UNITED STATES X ---------------------
ARB 51 (P)
- - - 0
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- 0
----------------
ZIMBABWE X ---------------------
CA 1951 (L)
-
0
---------------- ---------------------
262 GR.OUP ACCOUIITS
UJIU'OillfiTY
5.13(a) Uniform accounting measurement and valuation bases should be

used throughout the group

PRACTICE
R
e
c p Np
R 0 e 0 e uniformita
e m r t r disclose
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF

----------------
AUSTRALIA X
--- --- ---------------------
CA (L) X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
CVM INST 1 (L) NA
----------------
SSAP 14 (P) 0
----------------
CHILE X ---------------------
TB 11 (P) X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
CA (L) X
----------------
FRANCE X ---------------------
CNC (L) X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X ---------------------
co (L) X
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 14 (P) 0
----------------
ITALY X --------------------- 0
----------------
JAPAN X ---------------------
CFP (L) X
----------------
MALAYSIA X ---------------------
lAS 3 (P) 0
----------------
MEXICO X --------------------- - - - - - X
----------------
NEW ZEALAND X ---------------------
SSAP 8 (P) N NA
----------------
PHILIPPINES X ---------------------
APB 23 (P) 0
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
s 1.001 (P) X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
ED FAS 22 (P) X
----------------
UNITED KINGDOM X ---------------------
SSAP 14 (P) N 0
----------------
UNITED STATES X --------------------- X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS 3 (P) 0
----------------
ZIMBABWE X ---------------------
lAS 3 (P) X
---------------- --- --- ----- ---------------------
5.13{b) Uniform specific accounting policies should be used

throughout the group

PRACTICE
R
e
c p Np
R 0 e 0 e Uniformity
e m r t r disclosea
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
-- -- -- --- - - - - - -
----------------
AUSTRALIA
--- --- --- ----- ---------------------
CA (L)
- - - - X- -
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - - X- -
----------------
BRAZIL
--- --- --- ----- ---------------------
X
CVM INST 1 (L)
- - -N A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ---------------------
---~-
SSAP 14 (P)
- - - - - -0
----------------
CHILE
X
--- --- --- ----- ---------------------
TB 11 {P)
----- -
----------------
COLOMBIA
--- --- --- ----- ---------------------
X
NIPA (P)
X
- - N- A- - -
----------------
DENMARK
--- ---
X
--- ----- --------------------- - X- - - - -
----------------
FINLAND
--- ---
X
--- ----- ---------------------
CA (L)
- - - - - -X
----------------
FRANCE
--- ---
X
--- ----- ---------------------
CNC (L)
- - - - -X -
----------------
GERMANY
--- --- --- ----- ---------------------
X
SCL (L)
- - - - -X -
----------------
HONG KONG
X
--- --- --- ----- ---------------------
co (L)
- - - - - -X
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
IRELAND
--- --- --- ----- ---------------------
X
SSAP 14 (P)
- - - - - -0
----------------
ITALY
--- --- ---X ----- --------------------- - - - X- - -
X
----------------
JAPAN
--- ---X --- ----- ---------------------
CFP (L)
- X- - - - -
----------------
MALAYSIA
--- --- --- ----- ---------------------
lAS 3 (P)
- - - - - -0
----------------
MEXICO
--- --- ---
X
----- --------------------- - - - - - -X
--- --- ----- ---------------------
X
----------------
N:EW ZEALAND
--- SSAP 8 (P)
- - N- A- - -
----------------
PHILIPPINES
--- ---
X
X
--- ----- ---------------------
APB 23 (P)
- - - - - -0
----------------
PORTUGAL
--- --- --- ----- --------------------- - - -N A- - -
--- --- --- ----- ---------------------
X
----------------
SOUTH AFRICA s 1.001 (P)
- - -X - - -
----------------
SPAIN
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
SWITZERLAND
--- --- ---
X
X
----- --------------------- - - - - -X -
----------------
THAILAND
--- --- --- ----- ---------------------
ED FAS 22 {P)
- - - -X - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
SSAP 14 (P) N
- - ----
0
----------------
UNITED STATES
---
X
--- --- ----- --------------------- - - - - - -
----------------
URUGUAY
--- --- X
--- ----- --------------------- - - -
NA
- -
X
-
----------------
ZAMBIA
--- --- ---
X
----- ---------------------
lAS 3 (P)
- - - -X - -
----------------
ZIMBABWE
--- --- --- ----- ---------------------
X
lAS 3 {P)
- - - -X - -
---------------- --- --- --- ----- --------------------- - - - - - -
X
264 GR.OUP ACCOUllrS
5.13(c) Uniform accounting periods should exist throughout the

group

PRACTICE
R
e
c p Np
R 0 e o e Uniformity
e m r t r disclosea
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-~

BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X X
CHILE X TB 11 (P) X
COLOMBIA X ---------------------
NIPA (P) N A
DENMARK X X
FINLAND X CA (L) X
FRANCE X CNC (L) X
GERMANY X SCL (L) X
HONG KONG X
---------------------
co (L) X
INDONESIA X BAPEPAM 5 (L) N NA

IRELAND X ---------------------
CA 1963(L);SSAP 14 N X
ITALY X X
JAPAN X CFP (L) X
MEXICO X B 8 (P) X
NEW ZEALAND X CA (L); SSAP 8 (P) NA

PHILIPPINES X ---------------------
APB 23 (P) X
PORTUGAL X N A
SOUTH AFRICA X CA1973 (L) X
SPAIN X NA
SWITZERLAND X X
UNITED KINGDOM X ---------------------

CA 1948 (L);SSAP14 N X
UNITED STATES X ---------------------

ARB 51 (P) X
URUGUAY X NA
ZAMBIA X X

GROUP ACCOUR'.rS 265
IRTBA-GROUP TRARSACTIOBS
5.14(a) Intra-group sales should be eliminated from the group accounts

PRACTICE
K
e
c p Np
R 0 e 0 e Elimination
e m r t r disclosed
q 111 m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- --- - - - - --
----------------
AUSTRALIA
--- --- --- ----- ---------------------
CA (L)
- - -X
---
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - -X - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
X
CVM INST 1 (L)
- - -N -A - -
----------------
CHANNEL ISLANDS
--- --- --- ----- --------------------- - - - - -X -
----------------
CHILE
---
X
--- --- ----- ---------------------
X
c 85 (L); TB 11 (P)
- -X - - - -
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
NIPA (P)
- - -N A- - -
----------------
DENMARK
--- --- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
FINLAND
X
---
X
--- --- ----- ---------------------
CA (L)
-X - - - - -
----------------
FRANCE
--- ---
X
--- ----- ---------------------
CNC (L)
- - -X - - -
---------------- ---
GERMANY
--- --- ------ ---------------------
SCL (L)
- - X- - - -
---------------- ---
X
--- --- ----- ---------------------
co (L) - - - -X - -
HONG KONG
----------------
INDONESIA
X
---. --- --- ----- ---------------------
BAPEPAM S(L);PAil(P)
- - -N A- - -
----------------
IRELAND
X
--- --- --- ----- ---------------------
SSAP 14 (P)
- - -X - - -
--- --- ---
X
----------------
ITALY X
----- --------------------- -X - - - - -
---------------- ---
JAPAN X
--- --- ----- ---------------------
CFP (L)
-X - - - - -
---------------- ---
MALAYSIA
--- --- ----- ---------------------
MCA (L); lAS 3 (P)
- - -X - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
B 8 (P)
-X - - - - -
----------------
NEW ZEALAND
X
--- --- --- ----- ---------------------
SSAP 8 (P)
- - N- -A - -
----------------
PHILIPPINES
---
X
X
--- --- ----- ---------------------
SEC (L)
- - - -X - -
----------------
PORTUGAL
--- --- --- ----- --------------------- - - -N -A - -
--- --- ---
X
----------------
SOUTH .!}'RICA X
----- --------------------- - -X - - - -
----------------
SPAIN
--- --- ---
X
----- --------------------- - - -N -A - -
----------------
SWITZERLAND
--- --- --- ----- --------------------- - - -X - - -
-~-------------- --- --- --- ----- --------------------- - - - - - -
X
THAILAND X
----------------
UNITED KINGDOM
--- --- --- ----- ---------------------
SSAP 14 (P)
-
X
- -X - - -
----------------
UNITED STATES
---
X
X
--- --- ----- ---------------------
ARB 51 (P)
- -X - - - -
---------------- --- --- ---
URUGUAY
----- --------------------- - - -N -A - -
----------------
ZAMBIA
--- ---
X
X
--- ----- ---------------------
lAS 3 (P)
- - - -X - -
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------
lAS 3 (P)
- - -X - - -
---------------- --- --- --- ----- --------------------- - - - - - -
266 GROUP ACCOUITS
5.14(b) Intra-group loans should be eliminated from the group accounts

PRACTICE
R
e
c p Np
R 0 e 0 e Elimination
e m r t r disclosed
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- - -- - - - - - -
----------------
AUSTRALIA
--- --- --- ----- ---------------------
CA (L)
- - - ---
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - -X - -
X
----------------
BRAZIL
--- --- --- ----- ---------------------
X
LAW 6.404 (L)
- - -N -A - -
-------------~-- --- --- --- ----- --------------------- - - - - - -
.X
CHANNEL ISLANDS
----------------
CHILE
--- --- ---
X
----- ---------------------
c 85 (L); TB 11 (P)
- - - - -
X
-
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
NIPA (P)
- - -N -A - -
X
----------------
DENMARK
X
--- --- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
FINLAND
---
X
--- --- ----- ---------------------
CA (L)
-X - - - - -
----------------
FRANCE
--- ---
X
--- ----- ---------------------
CNC (L)
- - -X - - -
---------------- ---
GERMANY
--- --- ----- ---------------------
X
SCL (L)
- - -X - - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
co (L)
- - - - -X -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM S(L) ;PAl l(P)
- - -N A- - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 14 (P)
- - - - - -0
----------------
ITALY
--- --- ---
X
----- --------------------- -X - - - - -
--- --- ----- --------------------- -X - - - - -
X
---------------- ---
JAPAN CFP (L)
--- --- ----- --------------------- - -X - - - -
X
----------------
MALAYSIA
--- MCA (L); lAS 3 (P)
----------------
MEXICO
---
X
--- --- ----- ---------------------
B 8 (P)
-X - - - - -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 8 (P)
- - -N A- - -
--- --- --- ----- --------------------- - - - -X - -
X
----------------
PHILIPPINES SEC (L)
--- --- --- ----- --------------------- - - -N A- - -
X
----------------
PORTUGAL
----------------
SOUTH AFRICA
--- --- --- ----- ---------------------
X
CA 1973 (L)
- -X - - - -
--- --- --- ----- --------------------- - - -N A- - -
X
----------------
SPAIN
--- --- --- ----- --------------------- - - - -X - -
X
----------------
SWITZERLAND
---------------- --- --- --- ----- --------------------- - - - -X - -
X
THAILAND
----------------
UNITED KINGDOM
--- --- --- ----- ---------------------
X
SSAP 14 (P)
- - - - - -0
--- --- --- ----- --------------------- - - -X - - -
X
----------------
UNITED STATES ARB 51 (P)
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - -N A- - -
--- --- --- ----- --------------------- - - - -X - -
X
----------------
ZAMBIA lAS 3 (P)
--- --- --- ----- --------------------- - - - X- - -
X
----------------
ZIMBABWE lAS 3 (P)
---------------- --- --- --- ----- --------------------- - - - - - -
X
GROUP ACCOUBTS 267
5.15(a) Intra-group sales should be disclosed in the group

accounts

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB cDEF
----------------
AUSTRALIA X N 0
----------------
BELGIUM X 0
----------------
----------------
CHANNEL ISLANDS X 0
----------------
CHILE X X
----------------
----------------
DENMARK X 0
----------------
FINLAND X X
----------------
FRANCE X X
----------------
GERMANY X SCL (L) X
----------------
HONG KONG X 0
----------------
INDONESIA X N A
----------------
IRELAND X X
----------------
ITALY X PC 2 (P) X
----------------
JAPAN X N X
----------------
----------------
MEXICO X X
----------------
NEW ZEALAND X N A
----------------
PHILIPPINES
--- --- X 0
----------------
PORTUGAL X NA
----------------
SOUTH AFRICA X X
----------------
SPAIN X PGC (L) N A
----------------
SWITZERLAND X
----------------
THAILAND
--- --- X
X
X
----------------
UNITED KINGDOM X X
----------------
UNITED STATES X X
----------------
URUGUAY X NA
----------------
----------------
ZIMBABWE X ---------------------
lAS 5 (P) X
----------------
268 GROUP ACCOUITS
5 .15(b) Intra-group loans should be disclosed in the group accounts

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA
--- --- X N
N A
X
BELGIUM X 0
BRAZIL X LAW 6. 404 (L) NA
CHANNEL ISLANDS X 0
CHILE X X
DENMARK X 0
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X NA
IRELAND X 0
ITALY X PC 2 (P) X
JAPAN X NX
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X NA
SOUTH AFRICA X X
SPAIN X NA
SWITZERLAND X 0
THAILAND X X
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X NA
GB.OUP ACCOmrtS 269
5 .15( c) Intra-group guarantees should be disclosed in the group accounts

PRACTICE
R
e
c p N p
R 0 e e
0
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F

----------------
AUSTRALIA X N X
----------------
BELGIUM X 0
----------------
----------------
CHANNEL ISLANDS
--- --- X X
----------------
CHILE
----------------
COLOMBIA
--- --- X
X
X
N A
----------------
DENMARK X X
----------------
FINLAND
----------------
FRANCE
--- --- X
X
X
X
----------------
GERMANY X X
----------------
HONG KONG X X
----------------
INDONESIA X N A
----------------
IRELAND X 0
----------------
ITALY X PC 2 (P) X
----------------
JAPAN X NX
----------------
----------------
MEXICO X ---------------------
B 8 (P) X
----------------
NEW ZEALAND X N A
----------------
PHILIPPINES X 0
----------------
PORTUGAL X N A
----------------
SOUTH AFRICA
----------------
SPAIN
--- --- X
X N A
X
----------------
SWITZERLAND X 0
----------------
THAILAND X X
----------------
----------------
UNITED STATES X X
----------------
URUGUAY X N A
----------------
ZAMBIA X __._ lAS 5 (P) 0
----------------
ZIMBABWE X CA 1951 (L);IAS 5(P) X
----------------
270 GROUP .ACCOUBTS
5.16(a) Only the parent corporation's shares of unrealised profits

or losses on intra-group sales should be eliminated from
the group accounts

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA
--- --- X X
BELGIUM X 0
BRAZIL
--- --- X CVM INST 1 (L) N A
CHANNEL ISLANDS X 0
CHILE
--- --- X C 85 (L); TB 11 (P) X
COLOMBIA X
---------------------
NIPA (P) NA
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X SCL (L) X
HONG KONG X ---------------------

co (L) X
INDONESIA X N A
IRELAND X X
ITALY X X
JAPAN X CFR (L) X
MALAYSIA X X
MEXICO X B 8 (P) 0
PORTUGAL X NA
SPAIN X NA
SWITZERLAND
--- --- X X
THAILAND
--- ---
X X
UNITED KINGDOM X X
UNITED STATES
--- --- X ARB 51 (P) X
URUGUAY NA
ZAMBIA
--- --- X
X N A
GR.OUP Accomrrs 271
5.16{b) Unrealised profits or losses on intra-group sales should be

deducted from both majority and minority interests in the
group accounts

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF

AUSTRALIA X --------------------- X
BELGIUM X --------------------- 0
BRAZIL X ---------------------
LAW 6.404 (L) NA
CHILE X ---------------------
c 85 (L) ;TB 11 {P) 0
COLOMBIA X ---------------------
NIPA (P) NA
DENMARK X --------------------- X
FINLAND ---------------------
CA (L)
--------------------- - - - -
X X
FRANCE X 0
GERMANY X
---------------------
SCL (L) X
HONG KONG X ---------------------

co (L) 0
INDONESIA X
---------------------
BAPEPAM 5 {P) NA
IRELAND ---------------------
ITALY
--- --- X
----- --------------------- - X X
JAPAN
--- --- X
X ---------------------
CFR (L) X
--~------------------
MALAYSIA X X
MEXICO X ---------------------
B 8 (P) 0
NF.W ZEALAND X ---------------------
SSAP 8 (P) NA
PHILIPPINES X --------------------- X
PORTUGAL X --------------------- NA
SOUTH AFRICA X ---------------------
CA 1973 (L) X
SPAIN X
--------------------- NA
SWITZERLAND X --------------------- X
THAILAND --------------------- - - - - 0
UNITED KINGDOM
--- --- X
X
--------------------- - - -- X
UNITED STATES X
---------------------
ARB 51 (P) X
URUGUAY X
--------------------- NA
ZAMBIA X
--------------------- NA
ZIMBABWE ---------------------
--- --- -- ---0
X
---------------------
272 GR.OUP ACCOUBTS
MINO:R.ITY DITERESTS
5.17(a) Minority interests should be shown as part of consolidated

equity in the consolidated balance sheet

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X X
BELGIUM X 0
CHANNEL ISLANDS X 0
CHILE X TB 11 (P) 0
COLOMBIA X ---------------------
NIPA (P) N A
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X --------------------- 0
HONG KONG X ---------------------
SSAP 104 (P)
-
0
INDONESIA X
--------------------- NA
IRELAND X ---------------------
SSAP 14 (P) 0
ITALY X --------------------- - - - - - 0
JAPAN X ---------------------
CFR (L) 0
MALAYSIA X ---------------------
lAS 3 (P)
- - - - - -
0
MEXICO X
---------------------
B 8 (P) X
NEW ZEALAND X ---------------------
SSAP 8 (P) NA
PHILIPPINES X ---------------------
APB 23 (P) X
PORTUGAL X
--------------------- NA
SOUTH AFRICA X --------------------- X
SPAIN --------------------- NA
-·--------------------
X
SWITZERLAND X X
THAILAND X --------------------- X
UNITED KINGDOM X ---------------------
SSAP 14 (P) X
UNITED STATES X --------------------- X
URUGUAY X --------------------- NA
ZAMBIA X ---------------------
lAS 3 (P) 0
ZIMBABWE X ---------------------
lAS 3 (P) X
---------------------
G.R.OUP ACCOUBTS 273
5.17(b) Minority interests should be excluded from consolidated

equity, and disclosed instead between consolidated equity
and liabilities

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF

----------------
AUSTRALIA
--- --- X --------------------- X
----------------
BELGIUM
--- --- X --------------------- X
----------------
BRAZIL X ---------------------
CVM INST 1 (L) NA
----------------
----------------
CHILE X ---------------------
TB 11 (P) X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
CA (L) X
----------------
FRANCE X ---------------------
CNC (L) X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X ---------------------
SSAP 104 (P) X
--- -
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 14 (P) X
----------------
ITALY X --------------------- X
---------------- --------------------- - -- --
JAPAN X CFR (L) X
----------------
MALAYSIA X ---------------------
lAS 3 (P) X
----------------
MEXICO X ---------------------
B 8 (P) X
----------------
NEW ZEALAND X ---------------------
SSAP 8 (P) NA
----------------
PHILIPPINES X ---------------------
SEC (L) X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- NA
----------------
SPAIN
--- --- X --------------------- NA
----------------
SWITZERLAND
--- --- X --------------------- X
---------------- --- ---
THAILAND X --------------------- X - - - -
----------------
UNITED KINGDOM X ---------------------
SSAP 14 (P) X
----------------
UNITED STATES X --------------------- X
----------------
URUGUAY
--- --- X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS 3 (P) X
----------------
ZIMBABWE X ---------------------
lAS 3 (P) X
---------------- --------------------- ----
274 GR.OUP ACCOORtS
COBSOLIDATIOB Dll'FER.ENCES (GOODWILL)
5.18(a) Goodwill is the excess of the cost of acquiring a subsidiary

over the fair value of the net assets acquired at the date
of acquisition, with this excess recorded in the consolidated
balance sheet as Goodwill

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- - --
AUSTRALIA
--- --- ---
X
----- --------------------- X
BELGIUM X 0
BRAZIL X LAW6.404;CVM1 INST15 N A
CHANNEL ISLANDS X 0
CHILE X 0
DENMARK X 0
FINLAND X CA (L) X
FRANCE X CNC (L) X
GERMANY X SCL (L) X
INDONESIA X PAI 3 (P) NA
IRELAND X SSAP 14 {P) X
ITALY X X
JAPAN X CFP (L) 0
MALAYSIA X 0
MEXICO X B 8 (P) 0
PORTUGAL X NA
SOUTH AFRICA X X
SPAIN X N A
SWITZERLAND X 0
THAILAND X X
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X X
GR.OUP ACCOUITS 275
5.18(b) Goodwill is the excess of the cost of acquiring a subsidiary

over the book value of the net assets acquired at the date of
the acquisition, with this excess recorded in the consolidated
balance sheet as Goodwill

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
LAW 6 .404;CVM INST15 NA
----------------
----------------
CHILE X ---------------------
c 85 (L); TB 11 (P) X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
CA (L) X
----------------
FRANCE X --------------------- X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X ---------------------
SSAP 126 (P) X
----------------
INDONESIA X ---------------------
PAl 3 (P) NA
----------------
IRELAND X ---------------------
SSAP 14 (P) X
----------------
ITALY X --------------------- X
----------------
JAPAN X ---------------------
CFP (L) NX
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
B 8 (P) X
----------------
NEW ZEALAND X ---------------------
SSAP 8 (P) NA
----------------
PHILIPPINES
--- --- --- X ---------------------
TAX LAW (L) 0
----------------
PORTUGAL
--- --- X --------------------- NA
----------------
SOUTH AFRICA
--- --- X --------------------- X
----------------
SPAIN
--- --- X --------------------- NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------
SSAP 14 (P) X
----------------
UNITED STATES X ---------------------
APBO 16 (P) 0
---------------
URUGUAY X
---··----------------- NA
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
276 GB.OUP ACCOUirl'S
5.18{c) Goodwill (consolidation difference) is the excess of the cost

of acquiring a subsidiary over the book value of the net
assets acquired as at the date of the balance sheet with
this excess recorded in the consolidated balance sheet as
a consolidation difference

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- - - -----------------
AUSTRALIA X X
BELGIUM X 0
BRAZIL X LAW 6.404;CVM INST15 N A
CHANNEL ISLANDS X 0
CHILE X C 85 (L); TB 11 {P) 0
DEN~ X 0
FINLAND X CA (L) 0
FRANCE X 0
GERMANY X SCL (L) X

INDONESIA X N A
ITALY X X
JAPAN X CFP (L) N 0
MALAYSIA X 0
MEXICO --- --- X ---------------------
B 8 {P) - - - - - -0
NEW ZEALAND X SSAP 8 {P) N A
PHILIPPINES X TAX LAW (L) 0
PORTUGAL X NA
SOUTH AFRICA X 0
SPAIN X NA
SWITZERLAND X X
THAILAND X X
UNITED STATES X APBO 16 (P) 0
URUGUAY X N A
ZAMBIA X NA
ZIMBABWE X 0
GI.OUP ACCOUII'l'S 277
5.19(a) Goodwill should be carried forward indefinitely

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF

AUSTRALIA X
--------------------- X
BELGIUM X --------------------- X
BRAZIL X ---------------------
CVM INST 15 (L) NA
CHANNEL ISLANDS --------------------- 0
- - -
X
CHILE X ---------------------
c 85 (L); TB 11 (P)
- - 0
COLOMBIA ---------------------
NIPA (P) NA
DENMARK
--- --- X
X
--------------------- 0
FINLAND X ---------------------
CA (L) 0
FRANCE X --------------------- X
GERMANY ---------------------
SCL (L) 0
HONG KONG
--- --- --- X
X ---------------------
SSAP 126 (P)
- - - - X
INDONESIA X --------------------- NA
IRELAND X --------------------- X
ITALY --------------------- 0
JAPAN
--- --- X
---------------------
CFP (L)
- - - - - 0
MALAYSIA
--- --- X
X
--------------------- X
MEXICO X ---------------------
B 8 (P) X
"':'
NEW ZEALAND X --------------------- NA

PHILIPPINES X --------------------- X
PORTUGAL X --------------------- NA
SOUTH AFRICA X
--------------------- X
SPAIN X
--------------------- NA
SWITZERLAND --------------------- 0
THAILAND
--- --- X
X --------------------- - - - - - -0
UNITED KINGDOM X ---------------------
CA 1981 (L) X
UNITED STATES ---------------------

APBO 17 (P) N
--- X X
URUGUAY
--- --------------------- NA
ZAMBIA
--- --- X
X
--------------------- NA
ZIMBABWE ---------------------
--------------------- - - - -
X X
278 GB.OUP ACCOUftS
5.19(b) Goodwill should be carried forward until the subsidiary is

disposed of

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X 0
BELGIUM X 0
BRAZIL X CVM INST 15 (L) NA
CHANNEL ISLANDS X 0
CHILE X C 85 (L); TB 11 (P) 0
COLOMBIA X ---------------------
NIPA (P) NA
DENMARK X 0
FINLAND X CA (L)
-0
FRANCE X X
GERMANY X SCL (L) X
HONG KONG X X
INDONESIA X NA
IRELAND X 0
ITALY X 0
X CFP (P)
JAPAN
MALAYSIA X
-00
MEXICO
--- --- X B 8 (P) 0
--- --- X NA
NEW ZEALAND
PHILIPPINES X X
PORTUGAL X N A
SOUTH AFRICA X X
SPAIN X NA
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X APBO 17 (P) N 0
URUGUAY X N A
ZAMBIA X NA
ZIMBABWE
--- --- X X
--- ---
GROUP ACCOUNTS 279
5.19(c) Goodwill should be written off immediately to the income

statement

PRACTICE
H.
e
c p N p
R 0 e 0e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

--- ---
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE
--- --- X C 85 (L); TB 11 (P) 0
DENMARK X X
FINLAND
--- --- X CA (L) 0
FRANCE X X
GERMANY
--- --- X SCL (L) 0
HONG KONG X 0
INDONESIA X N A
IRELAND X X
ITALY
--- --- X 0
JAPAN
--- --- X CFP (L) X
MALAYSIA
--- --- X X
MEXICO
--- --- X B 8 {P) 0
NEW ZEALAND
--- --- X N A
PHILIPPINES APB 11 (P) 0
PORTUGAL
--- --- X
X
N A
SOUTH AFRICA X X
SPAIN X N A
SWITZERLAND
--- --- X 0
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES
--- --- APBO 17 (P) 0
URUGUAY
--- --- X
X
NA
ZAMBIA X NA
ZIMBABWE X X
280 GR.OUP ACCOUBTS
5.19(d) Goodwill should be written off immediately to reserves

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA
--- --- --- X
---------------------
AAS 10 (P) X
BELGIUM
--- --- X
--------------------- - - - - 0
BRAZIL
--- --- --------------------- NA
CHANNEL ISLANDS
--- --- X
X
--------------------- X
CHILE X
---------------------
c 85 (L); TB 11 (P) 0
COLOMBIA X
---------------------
NIPA (P) NA
DENMARK ---------------------
FINLAND
--- ---
X
X
---------------------
CA (L)
- - - - -
0
0
FRANCE X --------------------- - - - - - X
GERMANY X SCL (L) 0
HONG KONG X X
INDONESIA X N A
IRELAND X X
ITALY X 0
JAPAN X CFP (L) 0
MALAYSIA X X
MEXICO X B 8 (P) X
PORTUGAL NA
SOUTH AFRICA
--- --- X
X
--- ---
X
SPAIN X NA
SWITZERLAND
--- ---
--- ---
X X
THAILAND
--- ---
X 0
UNITED KINGDOM X X
UNITED STATES X APBO 17 (P) 0

URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X X
GB.OUP ACCOUirrS 281
5.19(e) Goodwill should be written off (amortised) over a

particular time period specified in the requirements

PRACTICE
1{
e
c p Np Written
R 0 e 0 e off
e m r t r over
q m m m a period
u e i i of time
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- -- - - - - - - - -
----------------
AUSTRALIA
--- --- --- ----- --------------------- - - -N -AX - -
N/A N/A N/A N/A
----------------
BELGIUM
--- --- --- ----- --------------------- - - - -X - -
N/A N/A N/A N/A
----------------
BRAZIL
--- --- ---
N/A N/A N/A
-----
--------------------- - - -N A- - -
N/A
----------------
CHANNEL ISLANDS
--- -----
--- ---
N/A N/A N/AN/A ---------------------
- - - - -X -
----------------
CHILE
--- --- ----- ---------------------
X
--- c 85; TB 11 (10 Yrs) X
-- - - - -
----------------
COLOMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
DENMARK
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -X - - -
----------------
FINLAND
---
X
--- --- ----- ---------------------
CA (L) (10 Years)
-X - - - - -
----------------
FRANCE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -X - - - '
----------------
GERMANY
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
HONG KONG
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
INDONESIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - --
NA
----------------
IRELAND
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - - -X -
----------------
ITALY
--- --- --- ----
N/A N/A N/A N/A --------------------- X
-- - - - -
----------------
JAPAN
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - X- - - -
----------------
MALAYSIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - -X -
----------------
MEXICO
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - -X - -
----------------
NEW ZEALAND
--- --- -----
N/A N/A N/A N/A ---------------------
--- - - -N A- - -
----------------
PHILIPPINES
--- ---
X
--- ----- ---------------------
APB 11 (P) (50 years)
- -X - - - -
----------------
PORTUGAL
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
----------------
SOUTH AFRICA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -X
----------------
SPAIN
--- --- --- -----
N/A N/A N/A N/A ---------------------
- -- - --
NA
----------------
SWITZERLAND
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - -X - -
----------------
THAILAND
--- --- --- -----
N/A N/A N/A N/A --------------------- X
- -- - --
----------------
UNITED KINGDOM
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - -X -
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
APBO 17(P)(40 Years)
- - -X - - -
----------------
URUGUAY
--- --- --- -----
N/A N/A N/A N/A ---------------------
-- -
- - -N A
----------------
ZAMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - -A - -
N
----------------
ZIMBABWE
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - - -X -
---------------- --- --- --- ----- --------------------- - - - - - -
282 GB.OUP A.CCOUIITS
5.19(f) Goodwill should be written off over a time period not

specified in the requirements

PRACTICE
R
e
c p Np
R 0 e 0 e N/A- see
e m r t r Q.5.19(e)
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X N A
BELGIUM X N A
CHILE N/A N/A N/A N/A N A
DENMARK X NA
----------------
FINLAND N/A N/A N/A N/A --------------------- N A
FRANCE X NA
GERMANY X SCL (L) NA
HONG KONG X N A
INDONESIA
--- --- X N A
IRELAND X N A
ITALY X N A
JAPAN X CFP (L) NA
MALAYSIA X N A
MEXICO X B 8 (P) NA
NEW ZEALAND X NA
PHILIPPINES N/A N/A N/A N/A NA
PORTUGAL X N A
SOUTH AFRICA
SPAIN
--- --- X
X
N A
NA
SWITZERLAND
--- --- X N A
THAILAND X N A
UNITED KINGDOM
--- --- X NA
UNITED STATES N/A N/A. N/A N/A N A
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X N A
GR.OUP ACCOUirrS 283
5.20(a) Goodwill should be credited proportionately to majority

and minority interests

PRACTICE
R
e
c p Np
R 0 e 0 e Treatment
e m r t r disclosed
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X 0
BELGIUM X 0
BRAZIL X LAW 6.404;CVM INST15 NA
CHANNEL ISLANDS X 0
CHILE
--- --- X C 85 (L);_TB 11 (P) - - - - -
--------------------- 0
COLOMBIA X ---------------------
NIPA (P) NA
DENMARK X X
FINLAND X CA (L) X
FRANCE X ---------------------
CNC (L) N A
GERMANY X ---------------------
SCL (L) 0
HONG KONG X SSAP 126 (P) N A
INDONESIA X NA
IRELAND X 0
ITALY X
JAPAN
--- --- X CFP (L)
X
0
MALAYSIA X 0
MEXICO X B 8 (P) 0
PORTUGAL X NA
SOUTH AFRICA X 0
SPAIN X NA
SWITZERLAND X 0
THAILAND X ----- --------------------- - - - - - 0
UNITED KINGDOM X 0
UNITED STATES X
--------------------- - - - - - 0
URUGUAY X NA
ZAMBIA X N A
ZIMBABWE X 0
284 GllOUP ACCOUB'I'S
5.20(b) The calculation of minority interests in the net assets

of the subsidiary should exclude any goodwill arising

PRACTICE
R
e
c p Np
R 0 e 0 e Treatment
e m r t r disclosed
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA
---- 00
X
BELGIUM X
BRAZIL X LAW 6.404;CVM INST15 N A
CHANNEL ISLANDS X 0
CHILE X TB 11 (P) 0
DENMARK X 0
FINLAND X X
FRANCE X N A
GERMANY X
---------------------
SCL (L) X
HONG KONG X
---------------------
SSAP 126 (P) NA
INDONESIA X --------------------- NA
IRELAND X --------------------- 0
ITALY X
--------------------- X
JAPAN X ---------------------
CFP (L) 0
MALAYSIA --------------------- 0
-
X
MEXICO X ---------------------
B 8 (P) 0
NEW ZEALAND --------------------- NA
-
X
PHILIPPINES X ---------------------
APB 23 (P)
-.X
PORTUGAL X --------------------- - N A
SOUTH AFRICA X --------------------- 0
SPAIN X --------------------- N A
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X 0
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X 0
GB.OUP ACCOlJIITS 285
5 .21(a) Negative Goodwill is the excess of fair value of the net

assets acquired as at the date of acquisition over the
cost of acquiring the subsidiary with the excess being
recorded in the consolidated balance sheet as Negative
Goodwill

PRACTICE
1<.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COU»T.RY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- - - -- --- - --
ARGENTINA
----------------
N/A N/A N/A N/A
--- --- --- ----- --------------------- - - -
NA
- - -0
AUSTRALIA
----------------
BELGIUM
X
--- --- --- ----- --------------------- - - - - - -0
----------------
BRAZIL
--- X
--- --- ----- ---------------------
CVM INST 15 (L)
- - N- A- - -
----------------
X
--- --- --- ----- --------------------- - - - - - -0
CHANNEL ISLANDS
-- --- ---X ----- --------------------- - - - - - -0
X
----------------
CHILE
---------------- --- --- --- ----- --------------------- - - N- A- - -
COLOMBIA
---------------- --- --- ---
DENMARK
----- --------------------- - - - - - -0
X NIPA (P)
----------------
FINLAND
--- --- --- ----- ---------------------
X
CA (L)
- - - - - -0
----------------
FRANCE
X
--- --- --- ----- ---------------------
CNC (L)
- - - - -X -
---------------- --- --- --- -----
X
--------------------- - - - - - -0
- - -N A- - -
GERMANY X SCL (L)
---------------- --- --- --- ----- ---------------------
HONG KONG
---------------- --- --- ---X ----- --------------------- - - -N A- - -
X SSAP 126 (P)
- - X- - - -
INDONESIA
----------------
IRELAND
--- --- --- ----- ---------------------
SSAP 14 (P)
----------------
ITALY
--- --- ---
X
----- --------------------- - - -X - - -
---------------- --- --- --- -----
X
--------------------- - - - - - -0
JAPAN
----------------
MALAYSIA
--- --- --- ----- --------------------- - - - - - -0
X CFP (L)
--- --- ----- ---------------------

X
----------------
MEXICO
--- B 8 (P)
-X - - - - -
--- --- --- ----- ---------------------
X
---------------- SSAP 8 (P)
- - -N A- - -
- -X - - - -
NEW ZEALAND X
----------------
PHILIPPINES
--- --- --- ----- ---------------------
APB 23 (P)
----------------
PORTUGAL
--- --- ---X ----- --------------------- - - -N A- - -
X
----------------
SOUTH AFRICA
--- --- ---X ----- --------------------- - - - - -X -
-------~-------- --- --- --- ----- --------------------- - - - - - -
- - -X
SPAIN NA
----------------
SWITZERLAND
-- --- ---
X
X
---- --------------------- - - -
----------------
THAILAND
--- --- --- ---- --------------------- - - - - - -0
----------------
UNITED KINGDOM
--- --- --- ----- ---------------------
X
SSAP 14 (P)
- -X - - - -
-----------~---- --- --- --- ----- ---------------------
X
- - - - - -0
----- --------------------- - - -N A- - -
APBO 16 (P)
UNITED STATES N
---------------
URUGUAY
--- --- ---
X
X
----------------
ZAMBIA
--- --- --- ----- --------------------- - - -N A- - -
--- --- --- ----- --------------------- - - - - - -X
X
----------------
ZIMBABWE
---------------- --- --- --- ----- --------------------- - - - - - -
X
286 GROUP ACCOUBTS
5.2l(b) Negative Goodwill is the excess of the book value of the

net assets acquired as at the date of acquisition over the
cost of acquiring the subsidiary, with this excess being
recorded in the consolidated balance sheet as Negative
Goodwill

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- --- -- ----
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
CVM INST 15 (L) NA
----------------
----------------
CHILE X ---------------------
c 85 (L); TB 11 (P) X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- 0
----------------
FINLAND X --------------------- 0
----------------
FRANCE X --------------------- X
----------------
GERMANY X ---------------------
SCL (L) X
----------------
HONG KONG X ---------------------
SSAP 126 (P) NA
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 14 (P) X
----------------
ITALY X --------------------- X
----------------
JAPAN X ---------------------
CFP (L) X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
B 8 (P) 0
----------------
NEW ZEALAND X ---------------------
SSAP 8 (P) NA
----------------
PHILIPPINES X ---------------------
APB 23 (P) X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
G 4.001 (P) N X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- 0
----------------
UNITED KINGDOM X ---------------------
SSAP 14 (P) X
----------------
UNITED STATES X ---------------------
APBO 16 (P) N 0
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
GROUP ACCOUlftS 287
5.21(c) Negative Goodwill (consolidation difference) is the excess

of the book value of the net assets acquired as at the date
of the balance sheet over the cost of acquiring the
subsidiary with this excess being recorded in the
consolidated balance sheet as a negative consolidation
difference

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
- - - - - -------------------------
AUSTRALIA X 0
BELGIUM X 0
CHANNEL ISLANDS X 0
CHILE X C 85 (L); TB 11 (P) 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X SCL (L) X
HONG KONG X SSAP 126 (P) N A

INDONESIA X N A
ITALY X X
JAPAN X CFP (L) 0

MALAYSIA X 0
MEXICO X B 8 (P) 0
PORTUGAL X N A
SOUTH AFRICA X 0
SPAIN X NA
SWITZERLAND X X
THAILAND X 0
UNITED STATES X APBO 16 (P) N 0

URUGUAY X NA
ZAMBIA X N A
ZIMBABWE X 0
288 GB.OUP ACCOUftS
5.22(a) The amount of Goodwill carried forward should be disclosed

PRACTICE
R.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
----------------
CHILE X ---------------------
c 85 (L); TB 11 (P) X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
CA (LO X
----------------
FRANCE X ---------------------
CNC (L) X
---------------- --- ----- ---------------------
GERMANY X SCL (L) X
----------------
HONG KONG X
--- --- ----- ---------------------
SSAP 126 (P) X
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
CA 1963 (L) X
----------------
ITALY X --------------------- X
----------------
JAPAN X ---------------------
CFR (L) X
----------------
MALAYSIA X ---------------------
lAS 5 (P) X
----------------
MEXICO X -----------------~---
B 8 (P) X
----------------
NEW ZEALAND X ---------------------
SSAP 8 (P) NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND
--- --- X --------------------- X
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------
CA 1981 (L) X
----------------
UNITED STATES X --------------------- X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X ---------------------
lAS 5 (P) 0
----------------
ZIMBABWE X
--- ----- ---------------------
CA 1951(L); lAS 5 (P) X
- - - -
---------------- --- --- ----- --------------------- - - - - -
GR.OUP ACCOlJIIITS 289
5.22(b) The amount of Goodwill written off should be disclosed

PRACTICE
1<.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABCDE F

----------------
AUSTRALIA X
--------------------- X
----------------
BELGIUM X
--------------------- X
----------------
BRAZIL X
---------------------
CVM INST 15 (L) NA
----------------
CHANNEL ISLANDS X
--------------------- X
----------------
CHILE X
---------------------
c 85 (L); TB 11 (P) X
----------------
COLOMBIA N/A N/A N/A N/A ---------------------N N A
----------------
DENMARK X
--------------------- X
----------------
FINLAND X
---------------------
CA (L) 0
----------------
FRANCE X
--------------------- X
----------------
GERMANY X
--------------------- 0
----------------
HONG KONG X
---------------------
SSAP 126 (P) X
----------------
INDONESIA X
--------------------- NA
----------------
IRELAND X
--------------------- X
----------------
ITALY X --------------------- X
----------------
JAPAN X
---------------------
CFR (L) X
----------------
MALAYSIA X
---------------------
lAS 5 (P) X
----------------
MEXICO X
---------------------
B 8 (P) X
----------------
NEW ZEALAND X
--------------------- NA
----------------
PHILIPPINES --------------------- X
----------------
PORTUGAL
--- ---
X
X
--------------------- NA
----------------
SOUTH AFRICA X
---------------------
CA 1973 (L) X
----------------
SPAIN X
--------------------- NA
----------------
SWITZERLAND ---------------------
- - -
X X
----------------
THAILAND X --------------------- - X
----------------
UNITED KINGDOM X
---------------------
CA 1981 (L) X
----------------
UNITED STATES ---------------------
----------------
URUGUAY
--- --- X
X
--------------------- NA
X
----------------
ZAMBIA X ---------------------
lAS 5 (P) 0
----------------
ZIMBABWE ---------------------
CA 1951 (L);IAS 5(P)
----------------
X
--- --- ---------------------
X
290 GROUP ACCOURTS
5.23 The accounting policy for the treatment of Goodwill

(consolidation difference) should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- --- - - - - - -
----------------
AUSTRALIA X ---------------------
AAS 6 (P)
- X
----------------
BELGIUM X --------------------- - X
----------------
BRAZIL X ---------------------
CVM INST 15 (L)
- - -
NA
- - -
----------------
CHANNEL ISLANDS X --------------------- -X
---------------- X --------------------- - - ----
CHILE TB 6 (P) X
----------------
COLOMBIA X ---------------------
NIPA (P) NA
----------------
DENMARK X --------------------- X
----------------
FINLAND X ---------------------
CA (L) X
----------------
FRANCE X ---------------------
CNC (L)
- X
----------------
GERMANY X ---------------------
SCL (L)
- X
----------------
HONG KONG X ---------------------
SSAP 126 (P)
- X
----------------
INDONESIA X --------------------- -
NA
----------------
IRELAND X ---------------------
SSAP 2 (P)
- X
----------------
ITALY X --------------------- -
X
----------------
JAPAN X ---------------------
CFR (L)
- X
----------------
MALAYSIA X ---------------------
lAS 1 (P)
- X
----------------
MEXICO X ---------------------
B 8 (P)
- X
----------------
NEW ZEALAND X ---------------------
SSAP 8 (P) NA
----------------
PHILIPPINES X ---------------------
APB 11 (P)
-
X
----------------
PORTUGAL X --------------------- -
NA
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L)
-
X
----------------
SPAIN X --------------------- - - --
NA
----------------
SWITZERLAND X --------------------- - - -X -
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------
CA 1981(L); SSAP 2(P) X
----------------
UNITED STATES X ---------------------
APBO 17 (PO
-X
----------------
URUGUAY X --------------------- - - -N A- - -
----------------
ZAMBIA X ---------------------
lAS 1 (P)
- 0
----------------
ZIMBABWE X ---------------------
lAS 1 (P)
-
---------------- --- ----- --------------------- - - -X - - -
GJtOUP ACCOUirrS 291
ASSOCIATED COMPABIES
5.24(a) Investments in associated companies should be accounted for

on the equity basis

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c D EF
-- -- -- --- - - - - --
----------------
AUSTRALIA
--- --- ---
X
----- --------------------- - - - -X - -
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - -X - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - -N A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
SJAP (P)
- - - -X - -
----------------
CHILE
---
X
--- --- ----- ---------------------
c 85 (L); TB 11 (P) X
------
----------------
COLOMBIA
--- ---
X
--- ----- ---------------------
NIPA (P)
- - -N - - -
A
----------------
DENMARK
--- --- ---
X
----- --------------------- - - - - -X -
----------------
FINLAND
--- --- ---
X
----- --------------------- - - - - - 0-
----------------
FRANCE
--- ---
X
--- ----- ---------------------
CNC (L)
-X - - - - -
----------------
GERMANY
--- --- --- -----
X ---------------------
SCL (L)
- - - - - X-
----------------
HONG KONG
--- ---
X
--- ----- ---------------------
PG 11
- - - -X - -
----------------
INDONESIA
--- --- ---
X
----- ---------------------
BAPEPAM 4(L)PAI 3(P)
- - -N A- - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 1 (P)
-X - - - - -
----------------
ITALY
--- --- ---
X
----- --------------------- - - - - -X -
----------------
JAPAN
--- --- ---
X
----- ---------------------
CFR (L)
- - - X- - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 3 (P)
- - -X - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
B 8 (P)
- - -X - - -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 2 (P)
- - -N A- - -
----------------
PHILIPPINES
--- ---
X
--- ----- ---------------------
APB 23 (P)
- - - -X - -
----------------
PORTUGAL
--- --- ---
X
----- --------------------- - - - - - -
NA
----------------
SOUTH AFRICA
--- --- ---
X
----- --------------------- - - - -X - -
----------------
SPAIN
--- --- --- -----
X ---------------------
LSA (L) N
- - - - -X -
----------------
SWITZERLAND
--- --- ---
X
----- ---------------------N - - - - -X -
----------------
THAILAND
--- --- ---
X
----- --------------------- - - - - - -
X
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
SSAP 1 (P)
- -
X
- - - -
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
APBO 18 {P)
-X - - - - -
----------------
URUGUAY
--- --- ---X ----- --------------------- - - N- A- - -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 3 (P)
-X - - - - -
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------
lAS 3 (P)
-X - - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
292 GROUP ACCOUITS
5.24(b) Investments in associated companies should be stated at or

below cost, with the investing entity's earnings only
including actual dividends received from the associated
company

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d A B C D E F
-- -- -- --- -----------------------------
----------------
AUSTRALIA X X
----------------
BELGIUM X X
----------------
----------------
CHANNEL ISLANDS X X
----------------
CHILE X C 85 (L); TB 11 (P) 0
----------------
----------------
DENMARK X X
----------------
FINLAND X X
----------------
FRANCE X CNC (L) 0
----------------
GERMANY X SCL (L) X
----------------
HONG KONG X X
----------------
INDONESIA X PAI 3 (P) NA
----------------
----------------
ITALY X X
----------------
JAPAN X CFR (L) X
----------------
MALAYSIA X IAS 3 (P) X
----------------
MEXICO X ---------------------
B 8 {P) - X
----------------
----------------
PHILIPPINES X X
----------------
PORTUGAL X NA
----------------
SOUTH AFRICA X X
----------------
SPAIN X LSA (L) N X
----------------
SWITZERLAND X N X
----------------
THAILAND X X
----------------
----------------
----------------
URUGUAY X N A
----------------
----------------
ZIMBABWE X IAS 3 (P)
----------------
X
GltOUP ACCOUIITS 293
IIER.GBR. ACCOUiiTDIG
5.25 The "pooling of interests" method (ie. where the ownership of
two or more corporations are combined by an exchange of equity
shares) should be used when accounting for business
combinations in certain circumstances

PRACTICE
R
e
c p Np
R 0 e 0 e Treatment
e m r t r disclosed
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
--------------~-
CHILE X 0
DENMARK
--- --- X
FINLAND
--- --- X ----- ---------------------
0
0
FRANCE X 0
GERMANY X SCL (L) 0
HONG KONG X
---------------------
CO (L) ----- 0
INDONESIA X 0
ITALY X 0
JAPAN X CFR (L) 0
MALAYSIA X 0
MEXICO X B 8 (P) X
Nm.l ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X
SOUTH AFRICA
--- --- X CA 1973 (L)
0
0
SPAIN X --------------------- - - - - - 0
SWITZERLAND X 0
THAILAND X 0
UNITED'KINGDOM X CA 1981 (L) 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
294 GB.OUP ACCOUB'IS
NOTES
Chapter 5 - General
ARGENTINA: The regulatory agency for public companies in

Argentina does not accept consolidated
financial statements
SPAIN: Only one of the twenty companies surveyed

published any form of group accounts. As it
would be misleading to answer the detailed
questions on group accounts (Q.5.7-5.23) on
the basis of only one company, these questions
have been answered as "Not Applicable". This
seems reasonable in view of the fact that
group accounts are rarely published in Spain.
Question 5.1
COLOMBIA: Q 5.l(b) Non voting capital does not exist in

Colombia.
SPAIN: A group is defined to exist when a parent

corporation owns directly 25% or more of a
subsidiary
Question 5.2
FRANCE: The stock exchange requires that companies

which float new shares or debentures on the
exchange must publish group accounts
THAILAND: The stock exchange requires that listed parent

companies publish group accounts
Question 5.3
ITALY: Q 5.3(a)-(d) Due to the fact that a copy of

the accounts of each controlled company and a
summary of the significant features of each
associated companies' most recent accounts
are required to be incorporated with the
parent company accounts, the elements of
Q5.3(a) - (d) become indirect requirements.
Lists of shareholdings in controlled and
associated companies are also required by the
civil code.
295
UNITED KINGDOM: Q 5.3(b) The Stock Exchange Listing Agreement

requires disclosure of the name of the
principal country in which each subsidiary
operates. The Companies Act 1967 requires
disclosure of the country of registration if
different from the holding company (where the
subsidiary is incorporated in Great Britain),
or the country of incorporation (if the
subsidiary is incorporated outwith Great
Great Britain).
Question 5.5(a)
HONG KONG: If the parent corporation is itself the wholly

owned subsidiary of another body corporate
incorporated in Hong Kong then group accounts
are not required (Companies Ordinance 5124).
Question 5.7(b)
BRAZIL: Consolidated accounts (using the equity method)

are required for all publicly traded
companies; for other companies, consolidated
accounts are required only when (!)investments
in controlled companies represent more than
30% of the investor's net equity and(2) any
company in the group is publicly traded.
MEXICO: The equity method may be used for less than

50% owned subsidiaries.
Question 5.8(f)
Other reasons for non-consolidation
BRAZIL: Companies may petition the CVM for permission

to exclude one or more subsidiaries (CVM INST
15 ) •
CHANNEL ISLANDS: Where the businesses of the holding company

and the subsidiary are so different that they
cannot reasonably be treated as a single
undertaking.
FRANCE: Where the subsidiary is not material.
GERMANY: Where the subsidiary is non-domestic or where

the subsidiary is not material.
DWONESIA: Where the holding company and the subsidiary

have different reporting dates and this
difference is more than three months
IRELAND: Where the holding company does not own share
capital carrying more than half the votes, or
has contractual or other restrictions imposed
on its ability to appoint the majority of the
board of directors.
296
JAPAN: Where the subsidiary is not considered to be a

going concern.
NEW ZEALAND: Where the consolidation of the subsidiary

would be impracticable or of no real value
because of the insignificant amounts involved.
SOUTH AFRICA: Where inclusion would be impracticable or

where the subsidiary is not material.
UK: Where the holding company does not own share

capital carrying more than half the votes, or
has contractual or other restrictions imposed
on its ability to appoint the majority of the
board of directors (non-consolidation required
by SSAP 14). Non-consolidation also permitted
by Companies Act 1948 where consolidation
would be impracticable or where the
subsidiary is not material.
Question 5.9
Information to be disclosed
AUSTRALIA: All information required by the Companies Act

in respect of the group must be provided (if
relevant) in respect of that subsidiary.
BRAZIL: Requirements do not specify the "certain

information" to be disclosed.
,
CHANNEL ISLANDS: 1. Details of subsidiaries profits and
losses
2. Reasons why subsidiary excluded from group
accounts
3. Details of any qualifications in audit
reports
CHILE: Reasons for exclusion
FINLAND: Reasons for exclusion
HONG KONG: 1. The subsidiaries' names and countries of

incorporation
2. The amount of profits dealt with and not
dealt with in the holding company's
accounts for the current year and since
acquisition
3. The reason{s) for not consolidating
INDONESIA: 1. Names of unconsolidated subsidiaries
IRELAND: As for UK
JAPAN: Significant matters which may affect

investors' evaluation of financial position
and operating results of the group.
297
MALAYSIA: 1. Accounts of unconsolidated subsidiaries

should be annexed with the accounts of
the holding company (MCA requirement)
2. If the subsidiary is excluded for the
reason given in 5.8(a), the group accounts
should include a separate financial
statement in respect of that subsidiary.
The supplementary statements may be
presented in condensed form provided they
give adequate disclosure, including
intercompany balances and nature of
transactions with the remainder of the
group.
reason given in 5.8(c), the following
should be disclosed:
(a) the name of the investee and the
group's share in the net assets of
the investee
(b) the carrying value of the investment
in the consolidated financial
statements
(c) the dividends received by the group
during the period
(d) ~he profits or losses for the period,
with unusual items separately stated
(e) the amounts of any write-downs or
adjustments to consolidate net income
in the current period
MEXICO: Investments should be valued under the equity

method and the financial statements should
disclose:
(a) method of valuation
(b) alllount of undistributed earnings of
subsidiaries
(c) equity in net earnings for the year
(d) dividends received during the year
NEW ZEALAND: 1. Reasons for exclusion

2. Amount of subsidiary's profits
298
PHILIPPINES: 1. In general, the following should be

disclosed:
(a) the basis of valuation of the
investment
(b) the amount and accounting treatment
of any difference between
i the company's investment in its
unconsolidated subsidiaries, and
ii its share of the net assets of
these subsidiaries (as shown in
their financial statements)
reason given in 5.8(a) the group accounts
should include a separate financial
statement in respect of that subsidiary.
The supplementary statements may be
presented in condensed form provided they
give adequate disclosure, including
intercompany balances and nature of
transactions with the remainder of the
group
reason given in 5.8(c), the following
should be disclosed:
(a) the name of the investee and the
group's share in the net assets of
the investee
(b) the carrying value of the investment
in the consolidated financial
statements
(c) the dividends received by the group
during the period
(d) the profits or losses for the
period, with unusual items
separately stated
(e) the amounts of any write-downs or
adjustments to consolidate net
income in the current period
SOUTH AFRICA: 1. The auditors must report on the decision

not to consolidate
2. A form of 'group report' must be included
in the accounts
UK: Reasons for exclusion;

Names of principal subsidiaries disclosed;
any premium or discount on acquisition (to the
extent not written off)
USA: 1. Names and percentage ownership (of

significant subsidiaries only)
2. Summarized information about liabilities,
assets and results of operations
ZAMBIA: As for Malaysia 2 and 3

299
ZIMBABWE: 1. Share of profit for year; share o~ post-

acquisition profits (CA requirement)
2. As for Malaysia 2 and 3
Question 5.11
BRAZIL: Q5.11(a) Line by line consolidatio n is

required for the "other companies" specified
in the note to Q5.7 (source: CVM INST 15).
However, for publicly traded companies, the
equity method is required. Therefore in some
cases two sets of consolidated financial
statements must be published.
IRELAND: Q 5.11(c) As for U.K.
NEW ZEALAND: Q 5.11(c) This is required only when the

subsidiary is not consolidated
UK: Q 5.11(c) Not permitted except in cases where
there is lack of effective control or where
severe operating restrictions exist
Question 5.12
DENMARK: A permitted alternative to consolidated

accounts is the publication of a report with
information about the group's profit for the
year and net equity capital appropriated and
unappropriat ed (AAPA 1981)
SOUTH AFRICA: The alternatives to consolidated accounts

(described in 5.12(a) and (b)) are required
when certain sets of specific circumstance s
occur
UK: Both 5.12(a) and (b) are permitted by the
companies Act 1948 but are required by SSAP 14
in cases where a subsidiary (or sub-group) is
excluded from consolidatio n because of
dissimilar activities
Question 5.13
AUSTRALIA: Q.5.13(a) This requirement may be waived at

the discretion of the Corporate Affairs
Commission
INDONESIA: Q.5.13(c) When subsidiaries have a different

reporting date from the holding company and
the difference exceeds three months then the
subsidiary is required to be excluded from the
consolidatio n (see Question 5.8(f))
IRELAND: Q.5 .13(c) is required "wherever practicable"

(SSAP 14) or where in the directors' op1n1on
there are good reasons against it (CA 1963)
300
NEW ZEALAND: Q.5.13(c) There should be disclosure of any

different bases
UK: Q.5.13(a)-(c) are required except in certain

exceptional cases either where it is
impracticable or where good reasons against
uniformity exist
Question 5.15
AUSTRALIA: Q.5.15(a)-(c) these transactions are

required to be disclosed in individual company
accounts (not group accounts). Source:
Companies Act
JAPAN: As for Australia. Source: FSR
Question 5.18
SOUTH AFRICA: The excess should be described as 'Premium on
Acquisition of Subsidiary/Subsidiaries'
Question 5 .18(b)
JAPAN: For 'date of balance sheet' read 'date of
acquisition or of the balance sheet'
Question 5.18(c)
JAPAN: For 'date of balance sheet' read "date of

acquisition or of the balance sheet'
Question 5.19(a)
USA: This is only permitted where the subsidiary

was acquired before 1st November 1970
Question 5.19(b)
USA: This is only permitted where the subsidiary

was acquired before 1st November 1970
301
Question 5.21
UNITED STATES: According to APBO 16, negative goodwill is the

excess of (a) the fair value of current assets
acquired less liabilities assumed, over (b)
the cost of the acquisition. (That is, an
excess of fair value of net assets acquired
over cost must first be applied to
proportionately reduce the values assigned to
non-current assets. Only the remaining excess
after such allocation is recorded as negative
goodwill). In practice, companies nearly
always comply with this requirement (ie.
compliance is 91-100%)
Question 5.2l(b)
SOUTH AFRICA: The excess should be described as 'Reserve

arising on Acquisition of
Subsidiary/Subsidiaries' and should be treated
as a non-distributable reserve
Question 5.24(a)
SPAIN: Investments in companies' with 'Shares quoted on

the stock excbang~ ~annot~be recorded at a
value in excess of the average quote in the
last quarter; if cost is higher than the
average quote, 5% of net profits bas to be
used to amortize such differences
SWITZERLAND: Corporation Law requires that the value shown

in the balance sheet must not exceed cost if
the investment is in an unquoted company, or
market value if the investment is in a quoted
company
Question 5.24(b)
SPAIN: Investments in companies with shares not

quoted cannot be recorded at a value in excess
of cost, and potential losses are to be
recorded as soon as they are known
SWITZ ERLAND: See note for Q.5.24(a)

CIIAP'l'Bit SIX ID'LA'I'IOII ACCOUJITIBG
Contents Questions
Introduction 305
Measurement approaches to Inflation Accounting 6.1 - 6.2 309
Inflation adjustments 6.3 315
Disclosure issues 6.4 - 6.6 319
General 6.7 - 6.9 326
Notes 329
IDLATIOB ACCOUIITDG 305
IliT.RODUCTIOB
"Inflation accounting" refers to the concepts and methods of

reflecting in the financial statements the impact of rising
prices on a company's financial position and performance.
The importance of the topic arises from the distorting effect

that inflation can have on the information presented in
historical cost financial statements. For example, asset
valuations may bear little relation to what the company would
have to pay to replace these assets, and increases in sales may
be due solely to inflation. The distorting effect of inflation
may then adversely affect the decisions taken on the basis of
these financial statements. The provision of inflation
accounting information is therefore intended to improve the
decision-making of financial statement users by ensuring that
they have information which adequately reflects the underlying
economic reality of the inflationary environment.
The main issue in inflation accounting concerns which concept of

accounting for inflation should be used. The options include the
following:-
(i) General purchasing power accounting (also known as general

price-level accounting or current purchasing power
accounting), which reflects movements in the general level
of prices.
(ii) Current cost accounting, which reflects specific movements

in the current values of particular assets (such current
values being based on economic value, replacement cost, or
net realisable value but usually replacement cost)
(iii) Replacement value accounting, which reflects specific

price-level movements as indicated by changes in the
replacement cost of particular assets.
306
( iv) Net realisable value accounting (or "exit-value"

accounting), which reflects specific price-level movements
as indicated by changes in the net realisable value of
particular assets.
Alternatively, the approach to inflation accounting may be based

on two or more of the above methods as a form of multiple system
reporting.
Another important issue concerns how the inflation-adjusted

information should be presented in the financial statements
either as the only accounts, as the main accounts, as
supplementary to historical cost accounts, or using some other
disclosure method.
This chapter starts by determining which countries require or

recommend that inflation accounts be published. The relative
popularity of the different methods is then considered, together
with brief details of what adjustments are made in the inflation
accounts. Certain disclosure aspects are then dealt with,
concentrating firstly on the prominence of the inflation-adjusted
information in the financial statements and secondly on the
disclosure of the methods of calculation and underlying
assumptions relating to the inflation adjustments.
Summary of results
The majority of countries in the survey have no legal or

professional requirements or recommendations governing inflation
accounting. In countries with no official pronouncement, it is
rare for companies to disclose inflation accounting information
voluntarily.
The main proponents of general purchasing power accounting are

found in Latin America, where many countries have experienced
high rates of inflation for a long period. Current cost
accounting is found primarily in the United Kingdom, Ireland and
South Africa. Replacement cost accounting and net realisable
value accounting are rarely found. The United States has a
307
multiple system approach and requires disclosure (by way of note)

of both general purchasing power information and current cost
information.
As far as disclosure is concerned, few countries require that

inflation-adjusted accounts be the only accounts published.
Historical cost accounts are therefore to be found in most
countries in the survey, normally as the main (if not the only)
set of accounts.
The IASC issued an International Accounting Standard (lAS 15) on

"Information Reflecting the Effects of Changing Prices" in 1981.
This became effective from 1 January 1983. This supersedes an
earlier standard, lAS 6, "Accounting Responses to Changing
Prices". 6 dealt only with disclosure aspects of inflation
lAS
accounting, in that it required disclosure of the inflation
accounting methods used (or disclosure of the fact that no such
method had been used). lAS 6 did not recommend or require any
particular form of inflation accounting.
lAS 15 is more positive than lAS 6 in that it states that some

form of inflation accounting should be used by large companies.
As the IASC "believes that further experimentation is necessary",
it does not require any one particular method of inflation
accounting. However, whichever method is used, large companies
should disclose inflation-adjusted information on depreciation
and on cost of sales. Inflation-adjusted information should also
be given relating to monetary items, the effect on borrowing, or
equity interests, when such adjustments have been used in
determining income under the particular accounting method
adopted. In addition, when a current cost accounting method is
used, the current cost of property, plant and equipment, and of
inventories, should be disclosed.
308
In the EEC, the Fourth Directive on "Company Accounts" which was

adopted in 1978 in permissive in that EEC countries may authorise
alternatives to historical cost accounting including general
purchasing power accounting, replacement value accounting or
other methods to reflect changes in prices. If an alternative
method is adopted for the main accounts then historical cost
information must also be given.
IIIFLATIOB ACCOUJn'DG 309
6.1 External financial reports should reflect changes in price

levels

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X ITCP RES 183 (P) NA

AUSTRALIA X --------------------- X
BELGIUM X --------------------- 0
BRAZIL X ---------------------
LAW 6.404 (L) NA
SSAP 16 (P) X
CHILE X ---------------------
TAX LAW(L);TB3&13(P) X
COLOMBIA X --------------------- 0
DENMARK X --------------------- - - - - - 0
FINLAND X TAX LAW (L) X
FRANCE X 0
GERMANY X HFA 2/75 (P) X
HONG KONG X 0
INDONESIA X 0
ITALY X 0
JAPAN
--- --- X 0
MALAYSIA X X
MEXICO X B 7 (P) X
NEW ZEALAND X CCA 1 (P) N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X GUIDELINE 4.003 (P) X
----------------
SPAIN X 0
SWITZERLAND X
--- ---
X
THAILAND X 0
...--
UNITED STATES X ---------------------
FAS 33 (P) X
URUGUAY X DECREE No.827/976(L) X
ZAMBIA X 0
ZIMBABWE X X
310 Ilii"LATIOI ACCOUB'l'DG
6.2(a) The present approach to inflation accounting is based on

general purchasing power accounting

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X
--------------------- 0
BELGIUM X --------------------- NA
BRAZIL X ---------------------
LAW 6.404 (L) NA
CHILE X ---------------------
TAX LAW(L);TB3&13(P) X
COLOMBIA X --------------------- 0
DENMARK X --------------------- NA
FINLAND X --------------------- X
FRANCE X
--------------------- NA
GERMANY X --------------------- 0
HONG KONG X --------------------- NA
INDONESIA X
--------------------- NA
IRELAND X ---------------------
SSAP 16 (P) 0
ITALY X --------------------- NA
JAPAN X
--------------------- NA
MALAYSIA --------------------- 0
MEXICO X
X
---------------------
B 7 (P) NX
- - - -
NEW ZEALAND
--- --- X
---------------------
CCA 1 (P) NA
PHILIPPINES X --------------------- NA
PORTUGAL X --------------------- NA
SOUTH AFRICA X --------------------- 0
SPAIN X --------------------- NA
SWITZERLAND X
--------------------- 0
THAILAND X --------------------- -0
UNITED KINGDOM X ---------------------
SSAP 16 (P) 0
UNITED STATES X ---------------------
FAS 33 (P) NX
URUGUAY X ---------------------
DECREE No.827/976(P) X
ZAMBIA X --------------------- NA
ZIMBABWE X --------------------- NA
---------------------
IliFLATIOB ACCOUBTIBG 311
6.2(b) The present approach to inflation accounting is b.ased on

replacement value accounting

PRACTICE
1{
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i
r
n
d
t
t
t
t _________.,._
d d d d A B c D E F
ARGENTINA X ITCP RES 183 (P) N A

----------------
AUSTRALIA X --------------------- 0
----------------
BELGIUM X --------------------- N A
----------------
BRAZIL X ---------------------
LAW 6.404 (L) N A
----------------
----------------
CHILE X ---------------------
TAX LAW(L);TB3&13(P) 0
----------------
COLOMBIA X --------------------- 0
----------------
DENMARK X
--------------------- - N A
----------------
FINLAND
--- ---
X
--------------------- - 0
----------------
FRANCE X
--------------------- N A
----------------
GERMANY X ---------------------
HFA 2/75 (P) N X
----------------
HONG KONG X
--------------------- N A
----------------
INDONESIA X --------------------- N A
----------------
IRELAND X ---------------------
SSAP 16 (p)( See6. 2c) 0
----------------
ITALY X --------------------- N A
----------------
JAPAN X --------------------- N A
----------------
MALAYSIA X --------------------- 0
----------------
MEXICO X ---------------------
B 7 (P) N X
----------------
NEW ZEALAND X ---------------------
CCA 1 (P) N A
----------------
PHILIPPINES X --------------------- N A
----------------
PORTUGAL X --------------------- N A
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X
--------------------- N A
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X
--------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P)(See6.2c) 0
---------------- ---------------------
FAS 33 (P)
UNITED STATES
----------------
URUGUAY
--- --- X
X
---------------------
DECREE No.827/976(L)
N
- - - - -
X
0
----------------
ZAMBIA X
--------------------- N A
----------------
ZIMBABWE X --------------------- 0
---------------- ---------------------
312 ID'LATIOB ACCOURTIBG
6.2(c) The present approach to inflation accounting is based on

current cost accounting

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF

----------------
AUSTRALIA ---------------------
--- --- X X
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
SSAP 16 (P) X
----------------
CHILE X ---------------------
----------------
COLOMBIA X --------------------- 0
----------------
DENMARK X --------------------- NA
----------------
FINLAND X --------------------- 0
----------------
FRANCE X --------------------- NA
----------------
GERMANY X --------------------- 0
----------------
HONG KONG X --------------------- NA
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 16 (P) X
----------------
ITALY X --------------------- NA
----------------
JAPAN X
--------------------- NA
----------------
MALAYSIA --------------------- X
----------------
MEXICO
X
X ---------------------
B 7 (P)
-- - - 0
----------------
NEW ZEALAND X ---------------------
CCA 1 (P) NA
----------------
PHILIPPINES X
--------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
GUIDELINE 4.003 {P) X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) X
----------------
UNITED STATES X ---------------------
FAS 33 {P) NX
----------------
URUGUAY X ---------------------
DECREE No.827/976(L) X
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
DIFLATIOB ACCOUBrUG 313
6.2(d) The present approach to infation accounting is based on net

realisable value accounting

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
AUSTRALIA
--- --- X --------------------- 0
BELGIUM
--- --- X --------------------- NA
BRAZIL X ---------------------
LAW 6.404 (L) NA
CHILE X ---------------------
TAX LAW(L);TB3&13{P)
-0
COLOMBIA X --------------------- 0
DENMARK X --------------------- NA
FINLAND X --------------------- 0
FRANCE X --------------------- NA
GERMANY X --------------------- 0
HONG KONG X --------------------- NA
INDONESIA X --------------------- NA
IRELAND X ---------------------
SSAP 16 (P) 0
ITALY X --------------------- N A
JAPAN X NA
MALAYSIA X 0
MEXICO X B 7 (P) 0
NEW ZEALAND X CCA 1 (P) N A
PHILIPPINES X N A
PORTUGAL X NA
SOUTH AFRICA X 0
SPAIN X NA
SWITZERLAND X 0
THAILAND X N A
UNITED STATES X
---------------------
FAS 33 (P) 0
URUGUAY X DECREE No.827/976(L) 0
ZAMBIA X N A
ZIMBABWE X 0
314 IJIFLATIOB ACCOUBTIBG
6.2(e) The present approach to inflation accounting is based on a

combination of methods

PRACTICE
.K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
ARGENTINA X ITCP RES 183 (P) N NA

----------------
AUSTRALIA X --------------------- 0
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS X
--------------------- 0
----------------
CHILE X ---------------------
----------------
COLOMBIA X --------------------- 0
----------------
DENMARK X --------------------- NA
----------------
FINLAND X --------------------- 0
----------------
FRANCE X --------------------- NA
----------------
GERMANY X --------------------- X
----------------
HONG KONG X --------------------- NA
----------------
INDONESIA X
--------------------- NA
----------------
IRELAND ---------------------
SSAP 16 (P) 0
----------------
ITALY
--- --- X X
--------------------- NA
----------------
JAPAN X --------------------- NA
----------------
MALAYSIA X --------------------- 0
----------------
MEXICO ---------------------
B 7 (P)
----------------
NEW ZEALAND
X
--- --- X ---------------------
CCA 1 (P)
X
NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) 0
----------------
UNITED STATES X ---------------------
FAS 33 (P) X
----------------
URUGUAY X --------------------- 0
----------------
ZAMBIA X
--------------------- NA
----------------
ZIMBABWE X --------------------- 0
---------------- ---------------------
ID'LATIOB ACCOUII'riiiG 315
6.3(a) The inflation-adjusted accounts should include an

additional depreciation charge

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F

----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
SSAP 16 (P) X
----------------
CHILE X ---------------------
TB 3 & 13 (P) X
----------------
COLOMBIA X --------------------- - - - - 0
----------------
DENMARK X --------------------- NA
----------------
FINLAND X --------------------- X
----------------
FRANCE X --------------------- NA
----------------
GERMANY X ---------------------
HFA 2/75 (P) X
----------------
HONG KONG X --------------------- NA
----------------
INDONESIA
--- --- X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 16 (P) X
----------------
ITALY X --------------------- NA
----------------
JAPAN X --------------------- NA
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
B 7 (P) X
----------------
NEW ZEALAND X ---------------------
CCA 1 (P) NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL
--- --- X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) X
----------------
UNITED STATES X ---------------------
FAS 33 (P) X
----------------
URUGUAY X --------------------- X
----------------
ZAMBIA ________ X --------------------- NA
ziMBABWE X --------------------- X
---------------- ---------------------
316 ID'LATIO'R ACCOURTIIIG
6.3(b) The inflation-adjusted accounts should include a cost of sales

adjustment (ie. an adjustment which reflects the effects of
inflation on inventory values)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F

----------------
AUSTRALIA ---------------------
--- --- X X
----------------
BELGIUM --------------------- NA
----------------
BRAZIL
--- --- X
X
---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS
---------------------
SSAP 16 (P)
- ----
X X
----------------
CHILE ---------------------
TB 3 & 13 (P)
--------------------- - - - - 0
X X
----------------
COLOMBIA X
----------------
DENMARK X
--------------------- NA
----------------
FINLAND X
--------------------- X
----------------
FRANCE X
--------------------- NA
----------------
GERMANY X
---------------------
HFA 2/7 5 (P) 0
----------------
HONG KONG X
--------------------- NA
----------------
INDONESIA X
--------------------- NA
----------------
IRELAND X
---------------------
SSAP 16 (P) X
----------------
ITALY X
--------------------- NA
----------------
JAPAN X
--------------------- NA
----------------
MALAYSIA
---------------------
----
X X
----------------
MEXICO
---------------------
B 7 (P)
--- --- ----- ---------------------
X X
----------------
NEW ZEALAND X CCA 1 (P) NA
----------------
PHILIPPINES X
--------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X
---------------------
----------------
SPAIN X
--------------------- NA
----------------
SWITZERLAND X
--------------------- X
----------------
THAILAND X
--------------------- NA
----------------
UNITED KINGDOM X
---------------------
SSAP 16 (P) X
----------------
UNITED STATES X
---------------------
FAS 33 (P) X
----------------
URUGUAY X
--------------------- X
----------------
ZAMBIA X
--------------------- NA
----------------
ZIMBABWE ---------------------
---------------- --- ---
X X
---------------------
IliFI..ATIOB ACCOUBTIBC 317
6.3(c) The inflation-adjusted accounts should include a Monetary

Working Capital Adjustment (ie. which takes into account
the effects of inflation on the net trade creditors/trade
debtors position)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c D E F

----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
SSAP 16 (P) X
----------------
CHILE X ---------------------
TB 3 & 13 (P) 0
----------------
COLOMBIA X --------------------- 0
----------------
DENMARK X --------------------- NA
----------------
FINLAND X --------------------- X
----------------
FRANCE X --------------------- NA
----------------
GERMANY X --------------------- 0
----------------
HONG KONG X --------------------- NA
----------------
INDONESIA
--- --- X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 16 (P) X
----------------
ITALY X --------------------- NA
----------------
JAPAN X --------------------- NA
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
B 7 (P) NX
-----
----------------
NEW ZEALAND X ---------------------
CCA 1 (P) NA
----------------
PHILIPPINES X ---------------------
----------------
PORTUGAL X
----- --------------------- - - NN AA
----------------
SOUTH AFRICA
--- --- X ---------------------N X
-------~--------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND
--- --- X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) X
----------------
UNITED STATES X ---------------------
FAS 33 {P) X
----------------
URUGUAY X --------------------- X
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE X --------------------- X
----------·----- ---------------------
318 IIIFLATIOB ACCOUITIIIG
6.3(d) The inflation-adjusted accounts should include a gearing

adjustment (ie. to reflect the fact that the effects of
inflation are shared between external suppliers of finance
and the shareholders depending on the capital structure)

PRACTICE
R
e
c p N p
R 0 e 0e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS ---------------------
SSAP 16 (P)
----------------
CHILE
X
X ---------------------
TB 3 & 13 (P)
X
-- - - 0
----------------
COLOMBIA X --------------------- 0
----------------
DENMARK X --------------------- NA
----------------
FINLAND X
--------------------- 0
----------------
FRANCE X --------------------- NA
----------------
GERMANY X ---------------------
HFA 2/75 (P) 0
----------------
HONG KONG X --------------------- NA
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 16 (P) X
----------------
ITALY X --------------------- NA
----------------
JAPAN X --------------------- NA
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
B 7 (P) N 0
----------------
NEW ZEALAND X ---------------------
CCA 1 (P) NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) X
----------------
UNITED STATES X ---------------------
FAS 33 (P) 0
----------------
URUGUAY X --------------------- X
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
IlD'LATIOB ACCOUJITDIG 319
DISCLOSURE
6.4(a) Inflation-adjusted accounts should be the only accounts

published

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
----------------
AUSTRALIA X ---------------------
CA (L) 0
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
SSAP 16 (P) N 0
----------------
CHILE X ---------------------
c 86 (L) X
-- - -
----------------
COLOMBIA X --------------------- NA
----------------
DENMARK X --------------------- NA
----------------
FINLAND X ---------------------
AL (L) NA
----------------
FRANCE X ---------------------
PCG (L) NA
----------------
GERMANY X ---------------------
HFA 2/75 (P) 0
----------------
HONG KONG X --------------------- NA
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 16 (P) N X
----------------
ITALY X ---------------------
CIVIL CODE (L) NA
----------------
JAPAN X ---------------------
BAP (L) NA
----------------
MALAYSIA X ---------------------
MCA (L) 0
---------------- X ---------------------
B 7 (P)
- - -- X
MEXICO
----------------
NEW ZEALAND X ---------------------
CCA 1 (P) NA
----------------
PHILIPPINES X ---------------------
MR 2 (L) NA
----------------
PORTUGAL
--- --- --- X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) 0
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND
--- --- --- X --------------------- 0
---------------- --- --- --- X --------------------- NA
THAILAND
----------------
UNITED KINGDOM X ---------------------
CA 1981(L);SSAP16(P)N 0
----------------
UNITED STATES
--- --- X --------------------- 0
----------------
URUGUAY X --------------------- X
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE -----
X --------------------- 0
---------------- ---------------------
320 IID'LATIOB ACCOUITIBG
6. 4(b) Inflation-adjusted accounts should be published as the main

accounts with historical cost accounts also published as
secondary accounts

PRACTICE
1{
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF

----------------
AUSTRALIA X --------------------- 0
----------------
BELGIUM X ---------------------
RD (L) NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
SSAP 16 (P) N 0
----------------
CHILE X --------------------- 0
----------------
COLOMBIA X --------------------- NA
----------------
DENMARK --------------------- NA
----------------
FINLAND
--- --- X
X --------------------- 0
----------------
FRANCE X --------------------- NA
----------------
GERMANY X ---------------------
HFA 2/75 (P) 0
----------------
HONG KONG X --------------------- NA
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 16 (P) X
----------------
ITALY X ---------------------
CIVIL CODE (L) NA
----------------
JAPAN ---------------------
----------------
MALAYSIA
X
X
----- --------------------- - - N A 0
----------------
MEXICO X ---------------------
B 7 (P)
-0
----------------
NEW ZEALAND X ---------------------
CCA 1 (P) NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) 0
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) N 0
----------------
UNITED STATES ---------------------
FAS 33 (P) 0
----------------
URUGUAY X
X
--------------------- -
0
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE X --------------------- 0
---------------- ---------------------
IJIFLA'rlOB ACCOUBTIBG 321
6.4(c) Inflation-adjusted accounts should be published as

supplementary to historical cost accounts

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF

----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
SSAP 16 (P) NX
----------------
CHILE X ---------------------
TAX LAW,C86{L);TB3&13 0
----------------
COLOMBIA X --------------------- NA
----------------
DENMARK X --------------------- NA
----------------
FINLAND X --------------------- 0
----------------
FRANCE X --------------------- NA
----------------
GERMANY X ---------------------
HFA 2/75 (P) 0
----------------
HONG KONG --------------------- N A
--- ---
X
----------------
INDONESIA X
--------------------- NA
----------------
IRELAND X ---------------------
SSAP 16 (P) N X
----------------
ITALY X --------------------- NA
----------------
JAPAN X
--------------------- NA
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
B 7 (P) X
----------------
NEW ZEALAND X ---------------------
CCA 1 (P) N A
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
--- ---
X
----------------
SPAIN X --------------------- N A
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND
--- --- X --------------------- NA
----------------
UNITED KINGDOM X
---------------------
SSAP 16 (P) NX
----------------
UNITED STATES ---------------------
FAS 33 (P)
--------------------- - - - - 0
X X
----------------
URUGUAY X
----------------
ZAMBIA X
--------------------- NA
----------------
ZIMBABWE ---------------------
----------------
X X
---------------------
322 IJIFLA'llOR ACCOURTIRG
6.4(d) Only an inflation-adjusted income statement should be

published as supplementary to historical cost accounts

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
----------------
AUSTRALIA
--- --- ---------------------
----------------
BELGIUM
--- --- X
X
--------------------- NA
X
----------------
BRAZIL ---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS
--- --- X
---------------------N 0
-
X
----------------
CHILE X ---------------------
TAX LAW,C86(L)TB3&13
- - - - -
0
----------------
COLOMBIA X --------------------- NA
----------------
DENMARK X
--------------------- NA
----------------
FINLAND X --------------------- X
----------------
FRANCE X --------------------- NA
----------------
GERMANY X ---------------------
HFA 2/75 (P) 0
----------------
HONG KONG X --------------------- NA
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X
---------------------
SSAP 16 (P) X
----------------
ITALY X --------------------- NA
----------------
JAPAN X --------------------- NA
----------------
MALAYSIA --------------------- 0
----------------
MEXICO
--- --- X
X
---------------------
B 7 (P) X
----------------
NEW ZEALAND X
---------------------
CCA 1 (P) NA
----------------
PHILIPPINES --------------------- NA
----------------
PORTUGAL
--- --- X
X --------------------- NA
----------------
SOUTH AFRICA X
---------------------
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) 0
----------------
UNITED STATES X ---------------------
FAS 33 (P) X
----------------
URUGUAY X
--------------------- X
----------------
ZAMBIA X
--------------------- NA
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
DIFLA'liOR ACCOURTDIG 323
6.4(e) Some other method of disclosure should be adopted

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X ITCP RES 183 {P) NA

----------------
AUSTRALIA X --------------------- 0
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
----------------
CHILE X ---------------------
TAX LAW,C86(L)TB3&13 0
----------------
COLOMBIA X --------------------- NA
----------------
DENMARK X --------------------- NA
----------------
FINLAND X --------------------- X
----------------
FRANCE X --------------------- NA
----------------
GERMANY X ---------------------
HFA 2/75 (P) NX
----------------
HONG KONG --------------------- NA
--- ---
X
----------------
INDONESIA --------------------- NA
--- ---
X
----------------
IRELAND X ---------------------
SSAP 16 (P) 0
----------------
ITALY X --------------------- NA
----------------
JAPAN X --------------------- NA
----------------
MALAYSIA X
--------------------- 0
----------------
MEXICO X ---------------------
B 7 (P) N
-
0
----------------
NEW ZEALAND X ---------------------
CCA 1 {P) NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA ---------------------N 0
--- ---
X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) 0
----------------
UNITED STATES ---------------------
FAS 33 {P) 0
--------------------- - - - - 0
X
----------------
URUGUAY
--- ---
--- ---
X
----------------
ZAMBIA X
--------------------- NA
----------------
ZIMBABWE ---------------------
--------------------- - - - -
X X
----------------
324 ID"LATIOR ACCOUIITIBG
6.5 The methods of calculation of the various inflation

adjustments should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A BCDEF

----------------
AUSTRALIA ---------------------
----------------
BELGIUM
--- --- X
X ---------------------
X
NA
----------------
BRAZIL X
---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS X
---------------------
SSAP 16 (P) X
----------------
CHILE ---------------------
c 86 (L); TB 3&13(P) X
--------------------- - - - - 0
X
----------------
COLOMBIA
---------------
DENMARK
X
----- --------------------- - N A
-X '"-
X
----------------
FINLAND X
---------------------
----------------
FRANCE X --------------------- NA
----------------
GERMANY X ---------------------
HFA 2/75 (P) 0
----------------
HONG KONG X --------------------- NA
----------------
INDONESIA X
--------------------- NA
----------------
IRELAND X ---------------------
SSAP 16 (P) X
----------------
ITALY X --------------------- NA
----------------
JAPAN X --------------------- NA
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
B 7 (P) X
----------------
NEW ZEALAND X ---------------------
CCA 1 (P) NA
----------------
PHILIPPINES --------------------- NA
----------------
PORTUGAL
--- --- X
X
--------------------- NA
----------------
SOUTH AFRICA X ---------------------
----------------
SPAIN ---------------------
----------------
SWITZERLAND
--- ---
X
----- --------------------- - - N A 0
---------------- --- ---
X
THAILAND X
--------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) X
----------------
UNITED STATES X ---------------------
FAS 33 (P) X
----------------
URUGUAY X --------------------- X
----------------
ZAMBIA X
--------------------- NA
----------------
ZIMBABWE X --------------------- 0
---------------- ---------------------
IJIFLATIOR .ACCOUBTIRG 325
6.6 The assumptions underlying the inflation adjustments should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X ITCP RES 183 {P) NA

----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X --------------------- NA
----------------
SSAP 16 (P) X
----------------
CHILE N/A N/A N/A N/A --------------------- X
----------------
COLOMBIA X --------------------- 0
----------------
DENMARK X. --------------------- NA
----------------
FINLAND X --------------------- X
----------------
FRANCE X --------------------- NA
----------------
GERMANY
--- --- X --------------------- X
----------------
HONG KONG --------------------- NA
----------------
INDONESIA
--- --- X
X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 16 {P) X
----------------
ITALY X --------------------- NA
----------------
JAPAN X --------------------- NA
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X
---------------------
B 7 (P) X
----------------
NEW ZEALAND X ---------------------
CCA 1 (P) NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X ---------------------
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
SSAP 16 (P) X
----------------
UNITED STATES ---------------------
FAS 33 (P) X
----------------
URUGUAY
X
X
--- --- ----- --------------------- X
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
326 DIFLATIOR ACCOURTIIIG
GEIIERAL
6.7 Dividends should be limited to inflation-adjusted profits

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X NA
BRAZIL X LAW 6 • 40 4 ( L) N A
CHANNEL ISLANDS X X
COLOMBIA X 0
DENMARK X N A
FINLAND X N A
FRANCE X NA
GERMANY X 0
HONG KONG X N A
INDONESIA X N A
IRELAND X X
ITALY X N A
JAPAN X N A
MALAYSIA X 0
MEXICO X B 7 (P) X
NEW ZEALAND
PHILIPPINES
--- --- X
X
N A
N A
PORTUGAL X N A
SOUTH AFRICA X X
SPAIN X N A
SWITZERLAND X X
THAILAND X NA
UNITED KINGDOM X X
UNITED STATES N/A N/A N/A N/A N N A
URUGUAY X X
ZAMBIA
ZIMBABWE ---
X
X
N A
X
IIII'LATIOR ACCOUifliRG 327
6.8 Certain entities are exempt from the inflation accounting

requirements

PRACTICE
1{
e
c p Np
R 0 e 0 e Not
e m r t r applicable
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- -- --- -- - - - -
ARGENTINA X NA
----------------
AUSTRALIA
--- --- --- -----
N/A N/A N/A N/A --------------------- - - -N A- - -
----------------
BELGIUM
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
BRAZIL
--- --- --- -----
X ---------------------
LAW 6.404 (L)
- - -N A- - -
----------------
CHANNEL ISLANDS
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
CHILE
--- --- ---
X
----- ---------------------
c 1764 (L)
- - -N A- - -
----------------
COLOMBIA
--- --- -----
N/A N/A N/A N/A ---------------------
--- - - -N A- - -
----------------
DENMARK
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
FINLAND
--- --- --- ----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
FRANCE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
GERMANY
--- --- --- -----
X ---------------------
HFA 2/75 (P)
- - -N A- - -
----------------
HONG KONG
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
INDONESIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
IRELAND
--- --- ---
X
----- ---------------------
SSAP 16 (P)
- - -N A- - -
----------------
ITALY
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
JAPAN
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
- - -N A- - -
MALAYSIA
----------------
MEXICO
--- --- ---X ----- ---------------------
B 7 (P)
----------------
NEW ZEALAND
--- --- ---
X
----- ---------------------
CCA 1 (P)
- - -N A- - -
----------------
PHILIPPINES
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
PORTUGAL
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
SOUTH AFRICA
--- --- ---
X
----- ---------------------
GUIDELINE 4.003 (P)
- - -N A- - -
----------------
SPAIN
--- --- -----
N/A N/A N/A N/A ---------------------
--- - - N- A- - -
----------------
SWITZERLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
THAILAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
UNITED KINGDOM
--- --- ---
X
----- ---------------------
SSAP 16 (P)
- - -N A- - -
----------------
UNITED STATES
--- --- ---
X
----- ---------------------
FAS 33 (P)
- - -N A- - -
----------------
URUGUAY
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
ZAMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
ZIMBABWE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
---------------- --- --- --- ----- --------------------- - - - - - -
328 IRFLATIOH ACCOUHTIBG
6.9 Inflation-adjusted accounts are subject to less stringent

audit requirements than historical cost accounts

PRACTICE
K
e
c p Np
R 0 e 0 e Inflation
e m r t r accounts
q m m m audited
u e i i
1 n t t
r d t t
d d d d ABCDE F

AUSTRALIA X X
BELGIUM X NA
BRAZIL N/A N/A N/A N/A NA
CHANNEL ISLANDS X X
CHILE N/A N/A N/A N/A X
COLOMBIA N/A N/A N/A N/A N A
DENMARK X N A
FINLAND X 0
FRANCE X NA
GERMANY X X
HONG KONG X NA
INDONESIA X NA
IRELAND X SSAP 16 (P) NX
ITALY X NA
JAPAN X NA
MALAYSIA X 0
MEXICO B 7 (P)
NEW ZEALAND
--- --- X
X X
NA
PHILIPPINES
--- --- X NA
PORTUGAL
--- --- X NA
SOUTH AFRICA
--- --- X
SPAIN
--- --- X
X
NA
SWITZERLAND
--- --- X 0
THAILAND
--- --- X NA
UNITED KINGDOM
--- --- X SSAP 16 (P) N X
UNITED STATES X FAS 33 (P) 0

URUGUAY X X
ZAMBIA X NA
ZIMBABWE X 0
ID'LATIOR ACCOUITDG 329
NOTES
Question 6.1
NEW ZEALAND: The answers to this chapter are based on the

requirements stated in CCA-1. This standard
was issued in March 1982 and applies to
financial statements covering periods
beginning on or after 1st April 1982. Prior
to the issue of this, there were no
requirements for inflation accounting.
Question 6.2
ARGENTINA: There are two recommended combinations: either

6.2(a) and 6.2(b) or 6.2(a) and 6.2(c).
GERMANY: Although replacement value accounting is

recommended, other methods are acceptable as
long as they are suitably explained
MEXICO: The requirements state that either 6(a) or

6 ( b ) 1IU1St ·be used
UNITED STATES : FAS 33 requires the disclosure of certain

supplemental information based on general
purchasing power accounting and also on
current cost accounting
Question 6.3
MEXICO: The Monetary Working Capital Adjustment and

Gearing adjustment are combined by the
application of price level indices to the
average of net monetary assets or liabilities
SOUTH AFRICA: A Monetary Working Capital Adjustment is

implicitly included in the Gearing adjustment
recommended by Guideline 4.003
Question 6-.A
ARGENTINA: Detailed requirement rules for disclosure

vary among provinces
CHANNEL ISLANDS : SSAP 16 recommends 6.4(b) or 6.4(c) or the

presentation of current cost accounts as the
only accounts accompanied by adequate
historical cost information
330
GERMANY: HFA 2/75 recommends that the historical cost

accounts should be adjusted to show the effect
of inflation on fixed assets and inventories
only (limited to the extent that these items
are financed by shareholders' equity)
IRELAND: SSAP 16 requires that 6.4(a) or(b) or (c) must

be adopted (if 6.4(a) is chosen then the accounts
must also disclose sufficient information to
enable the user to ascertain the historical
cost profit of the period.)
Q.6.4(d) Irish Distillers Ltd prepared

inflation accounts to 30/9/80 under the 1977
ASC interim guidelines and as such only
provided a current cost income statement.
MEXICO: Q.6.4(e) valuation adjustments of fixed assets

and related depreciation may be incorporated
into the basic historical cost financial
statements
SOUTH AFRICA: Q.6.4(e) Guideline 4.003 encourages

experimentation and therefore any reasonable
supplemental disclosure is permitted
UNITED KINGDOM: As for Ireland.
Question 6.7
UNITED STATES: FAS 33 does not require comprehensive

restatement of the income statement and hence
dividends cannot be compared or related to
"inflation-adjusted profits"
Question 6.9
IRELAND: As for the UK
UK: If current cost accounts are the main or only

accounts, or if a "true and fair" report is
given on supplementary current cost accounts,
then the same audit requirements apply as for
historical cost accounts. Otherwise, a
compliance report ("properly prepared")
suffices
CIIAPTER. SEVER FOREIGB CURREICY TBABSLAriOB
Contents Questions
Introduction 333
Individual Reporting Entity -
Measurement methods 7.1 - 7.2 338
Treatment of Exchange Gains/losses 7.3 - 7.4 341
Disclosure of Exchange Gains/losses 7.5 344
Disclosure of Accounting Policy 7.6 345
Consolidated statements -
Measurement methods 7.7 346
Treatment of Exchange Differences 7.8 350
Disclosure of Exchange Differences 7.9 352
Disclosure of Accounting Policy 7.10 353
Notes 355
FOilEIGB CORilEIICY TRABSLATIOI 333
IIITR.ODUC'IIOR
The rising level of international trade and investment in recent

years means that companies are becoming increasingly exposed to
foreign exchange risks, arising from two distinct sources:-
(a) foreign currency transactions (such as sales and purchases

giving rise to debtors and creditors, or the lending and
borrowing of funds), whose home currency value may fluctuate
between the date the transaction occurred and the date of
final settlement; and
(b) foreign operations conducted through foreign subsidiaries,

where the home currency value of assets and liabilities
(recorded in the subsidiary's book in a foreign currency) may
fluctuate.
The first source of foreign exchange risk (ie. at the individual

entity stage) gives rise to several issues, namely what items
(if any) should be retranslated at the balance sheet date if
currency movements have occurred, whether exchange gains or
losses on such retranslation should be taken to the income
statement, and whether exchange gains or losses arising on final
settlement of the transaction should be taken to the income
statment.
However, it is the second source of foreign exchange risk (ie. at

the consolidated financial statements stage) which has provoked
greater debate. The main issue concerns which assets and
liabilities are "exposed" to exchange risk and hence which assets
and liabilities should be retranslated at the balance sheet date
using closing (ie. year-end) exchange rates.
334
A brief summary of the assumptions and implications of the major

alternative concepts is as follows:-
the "closing rate/net investment" method assumes that all items

are exposed and hence all items are retranslated at the year-end
using closing exchange rates. The "net worth" of the foreign
subsidiary is the key factor and hence the net worth (and by
implication all other assets and liabilities) should be
retranslated using closing exchange rates;
the "monetary/non-monetary" method assumes that only monetary

items are exposed and hence these are the only items to be
retranslated;
the "current/non-current" method assumes that only current items

are exposed and hence should be retranslated;
the "temporal" method assumes that items carried at current

values in the foreign subsidiary's financial statements (eg.
debtors and creditors, cash, inventories carried at market value,
long-term debt) should be carried at current values in the
consolidated statements, and hence only these items should be
retranslated using closing exchange rates;
Another issue at the consolidated financial statements stage is

the accounting treatment of exchange gains or losses arising from
the translation of foreign subsidiaries' financial statements.
The argument centres on whether such exchange differences should
be reflected in the income statement or whether the income
statement should be protected from the effects of frequent
exchange rate movements by passing exchange differences through
reserves.
The structure of this chapter reflects the above issues arising

from the two sources of foreign exchange risk.
The first section deals with the individual entity's foreign

currency transactions, concentrating mainly on which items (if
any) are retranslated at the balance sheet date and how any
335
exchange differences are accounted for and disclosed.
The second section deals with how foreign subsidiaries are

incorporated into the consolidated financial statements. The
relative popularity of the different translation methods is
reviewed, as is the accounting treatment and disclosure of
exchange gains and losses arising.
Summary of results
At the individual entity stage, approximately half of the

countries in the survey require or recommend that monetary items
should be retranslated at the balance sheet date. In the other
countries, most companies tended to retranslate monetary items
despite the lack of any specific official requirement or
recommendation. In those countries with a specific
pronouncement, a majority require or recommend that exchange
differences on retranslation of monetary items should be treated
as part of the results for the period rather than being passed
direct to reserves. However, in most countries there is no
specific pronouncement on this. The survey of current practice
shows a widespread lack of disclosure of exchange differences
arising from transactions originally denominated in foreign
currencies.
At the consolidated financial statements stage, perhaps the most

significant feature is the close similarity between FAS 52 in the
USA and SSAP 20 which was adopted in the UK in 1983. This
consensus may have a "spillover" effect on the requirements and
practices in other countries influenced by the USA and/or the UK.
Few countries have any requirements or recommendations regarding

the accounting treatment of exchange differences arising from the
translation of foreign subsidiaries' financial statements. In
practice, most companies seem to take such differences to the
income statement rather than to reserves. However, this may
change in the future if the FAS 52/SSAP 20 influence becomes
significant.
336
Few countries specifically require the disclosure of the amount

of such exchange differences, and in practice this is often not
dislosed. However, disclosure of the accounting policy for the
translation of foreign subsidiaries' financial statements is
relatively more frequent.
In general, there is therefore an absence of requirements and
recommendations governing accounting for foreign currency
translation. The recent issue of an International Accounting
Standard is likely to change this situation over the next few
years.
I~ernational Developaents
In July 1983 the International Accounting Standards Committee

published lAS 21, "Accounting for the Effects of Changes in
Foreign Exchange Rates". This becomes effective for accounting
periods beginning on or after 1 January 1985. lAS 21 deals
firstly with accounting for foreign currency transactions, and
secondly with the translation of the financial statements of a
foreign entity.
With regard to foreign currency transactions, lAS 21 requires the

retranslation of foreign currency monetary items at the closing
rate, except where forward exchange contracts exist. Exchange
differences arising from this retranslation should normally be
recognised in the income statement, although they may be deferred
and taken to income on a systematic basis over the life of the
related monetary item. If foreign currency loans are used as a
hedge against a net investment in a foreign entity, then exchange
differences on retranslation of the loans should be taken to
reserves to the extent that they offset exchange differences on
the net investment itself.
At the consolidated financial statements stage, lAS 21 requires

the use of the closing rate/net investment method in most cases.
Exchange differences arising from retranslating the opening net
investment should be taken to reserves. Income statement items
may be translated at closing or average exchange rates.
337
Where the foreign entity's operations are integral to those of

the parent company, the temporal method should be used. IAS 21
requires disclosure of any exchange differences which have been
deferred. In addition, entities should disclose the net exchange
difference taken to reserves as a result of applying the net
investment method, and also the net exchange difference taken to
income as a result of applying the temporal method. The
accounting policy for translating the financial statements of
foreign subsidiaries should also be disclosed.
In the EEC, both the Fourth Directive 0978) and Seventh

Directive (1983) on "Consolidated Accounts" require disclosure
only of the method of foreign currency translation used in
respect of foreign currency it ems.
338 FOR.EIGB CUilllERCY TIWISLATIOB
IBDIVIDUAL B.EPOB.TIBG Eli'IITY
7.1 Where an entity enters into transactions denominated in a

foreign currency, such transactions should be translated and
recorded using the exchange rate in effect on the date of the
transaction

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X TB 3 (P) X
COLOMBIA X ---------------------
SC; TA (L); NIPA (P) 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X SCL (L) X

HONG KONG X X
INDONESIA X X
IRELAND X X

JAPAN X ---------------------
FCTS (L) X
MALAYSIA X X
NEW ZEALAND X N A
PHILIPPINES X SP 1.70 (P) X
PORTUGAL X ---------------------
DL (L) NA
SOUTH AFRICA X X
SPAIN X PGC (L) X

SWITZERLAND X X
UNITED KINGDOM X X
UNITED STATES X FAS 52 (P) N X
URUGUAY X X
ZAMBIA X X
ZIMBABWE X X
FOB.EIGB CUB.R.EIICY TRABSLATIOB 339
7.2(a) At the balance sheet date, montary items (eg. cash and bank
balances, loans, debtors and creditors) should be retranslated
using the rate of exchange ruling at the balance sheet date

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X --------------------- X
BELGIUM X
--------------------- X

CHANNEL ISLANDS X X
CHILE X TB 3 (P) X
COLOMBIA X ---------------------
SC;TA (L); NIPA (P) 0
DENMARK X X
FINLAND X N X
FRANCE X PCG 1957 (L) NX
GERMANY X ---------------------
SCL (L) X
HONG KONG
INDONESIA
--- --- X
X
X
X
IRELAND X X
ITALY X X
JAPAN X FCTS (L) N X

MALAYSIA X X
MEXICO X IMCP B 5 (P) X
NEW ZEALAND X N A
PHILIPPINES X SP 1. 70 (P) X
PORTUGAL X DL (L) N N A
SOUTH AFRICA X X
SPAIN X PGC (L) X
SWITZERLAND X X
UNITED KINGDOM X X
URUGUAY
--- ---
X X
ZAMBIA
--- ---
X X
ZIMBABWE
--- ---
X X
340 FOI.EIGII CURR.ERCY T.RABSLATIOR
7.2(b) At the balance sheet date, non-monetary items (eg. fixed

assets) should be retranslated using the rate of exchange
ruling at the balance sheet date

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DE F
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- 0
----------------
BRAZIL
--- --- X ---------------------
LAW 6.404 (L) NA
----------------
CHANNEL ISLANDS
--- --- X --------------------- X
----------------
CHILE X ---------------------
TB 3 (P) 0
----------------
COLOMBIA X ---------------------
SC; TA (L); NIPA (P) X
----------------
DENMARK X --------------------- X
----------------
FINLAND X --------------------- 0
----------------
FRANCE X ---------------------
PCG 1957 (L) 0
----------------
GERMANY X ---------------------
SCL (L) 0
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X --------------------- 0
----------------
IRELAND X --------------------- X
----------------
ITALY X --------------------- - - - - 0
---------------- X ---------------------
FCTS (L)
-0
--------------------- X - - - -
JAPAN
----------------
MALAYSIA X
----------------
MEXICO X ---------------------
IMCP B 5 (P) X
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES
--- --- X ---------------------
SP 1/70 (P) 0
----------------
PORTUGAL
--- --- X ---------------------
DL (L) NA
----------------
SOUTH AFRICA
--- --- X --------------------- X
----------------
SPAIN X ---------------------
PGC (L) 0
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
ED FAS 13 (P) 0
----------------
----------------
UNITED STATES X ---------------------
FAS 52 (P) X
----------------
URUGUAY X --------------------- 0
----------------
ZAMBIA X --------------------- X
----------------
ZIMBABWE X --------------------- X
---------------- --------------------- - - -
FOB.EIGB CUKB.EICY TIWISLATIOB 341
7.3 If a gain or loss on exchange arises because settlement of a

transaction occurs at a different rate from that at which it
was previously recorded, then the gain or loss on exchange
should be recognised as part of the profit or loss for the period

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-------- -- -- -- --- ------------ - - -- -
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
CHILE X C 86 (L) X
COLOMBIA X SC; TA (L); NIPA (P) 0
DENMARK X X
FINLAND X N X
FRANCE X X
GERMANY X SCL (L) X
HONG KONG X X
INDONESIA X X
IRELAND X X
ITALY X X
JAPAN X FCTS (L) X
MALAYSIA X X
NEW ZEALAND X TPA 2 (P) N-
--------------------- NA
PHILIPPINES X N A
PORTUGAL X DL (L) N N A
SOUTH AFRICA X X
SPAIN X PGC (L) X
SWITZERLAND X X
UNITED KINGDOM X X
URUGUAY X N A
ZAMBIA X X
ZIMBABWE X X
342 FOR.EIGJI CUilll.DCY TIWISLATIOJI
7.4(a) Where assets and liabilities are retranslated at the balance

sheet date then if a gain on exchange arises (because
retranslation at the balance sheet date is at a more favourable
rate than the previous recording of the asset or liability)
this gain on exchange should be recognised as part of the
results for the period

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB cDEF
-- -- -- --- - - - - - -
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X ---------------------
LAW 6.404 (L) NA
----------------
----------------
CHILE X
---------------------
c 86 (L) X
----------------
COLOMBIA X ---------------------
----------------
DENMARK X --------------------- X
----------------
FINLAND X --------------------- X
----------------
FRANCE X
--------------------- X
----------------
GERMANY X ---------------------
SCL (L) 0
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X --------------------- X
----------------
IRELAND X
--------------------- X
----------------
ITALY X
--------------------- X
----------------
JAPAN X ---------------------
FCTS (L) X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
IMCP B-5 (P) X
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X
--------------------- X
----------------
PORTUGAL X
---------------------
DL (L) NA
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X ---------------------
PGC (L) 0
----------------
SWITZERLAND X ---------------------
CL (L) X
----------------
THAILAND X
---------------------
ED FAS 13 (P) X
----------------
----------------
UNITED STATES X ---------------------
FAS 52 (P) X
----------------
URUGUAY X --------------------- X
----------------
ZAMBIA X --------------------- X
----------------
ZIMBABWE X
--------------------- X
---------------- ---------------------
FOitEIGlf CUR.ItElfCY TIWISLATIOlf 343
7.4(b) Where assets and liabilities are retranslated at the balance

sheet date (see 7.2 above) then if a loss on exchange arises
(because retranslation at the balance sheet date is at a less
favourable rate than the previous recording of the asset or
liability) this loss on exchange should be recognised as
part of the results for the period

PRACTICE
1<.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- --- - - - - - -
ARGENTINA X NA
AUSTRALIA X --------------------- X
BELGIUM X --------------------- X
BRAZIL X ---------------------
LAW 6.404 (L) NA
CHILE X ---------------------
c 86 (L) X
COLOMBIA X ---------------------
DENMARK X --------------------- X
FINLAND X --------------------- X
FRANCE X --------------------- X
GERMANY X ---------------------
SCL (L) X
HONG KONG X --------------------- X

INDONESIA X
--------------------- X
IRELAND X
--------------------- X
ITALY X
--------------------- X
JAPAN X
---------------------
FCTS (L) X
MALAYSIA X
--------------------- X
MEXICO X
---------------------
IMCP B 5 (P) N X
NEW ZEALAND X
--------------------- NA
PHILIPPINES X
--------------------- X
PORTUGAL X
--------------------- NA
SOUTH AFRICA X --------------------- X
SPAIN X
---------------------
PGC (L) 0
SWITZERLAND X --------------------- X
THAILAND X ---------------------
ED FAS 13 (P) X
UNITED STATES X
---------------------
FAS 52 (P) X
URUGUAY X
--------------------- X
ZAMBIA X
--------------------- X
ZIMBABWE X
--------------------- X
---------------------
344 FOREIGB CURRERCY TRABSLA710B
IBDIVIDUAL REPORTDTG BRTITY DISCLOSURE
7.5 Exchange gains and losses on transactions denominated in

foreign currencies should be disclosed separately

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
----------------
AUSTRALIA X X
----------------
BELGIUM X X
----------------
BRAZIL X NA
----------------
CHANNEL ISLANDS X X
----------------
CHILE C 86 (L) X
SC; TA (L); NIPA (P) - - - - -
X
----------------
COLOMBIA X
--------------------- 0
----------------
DENMARK X X
----------------
FINLAND X 0
----------------
FRANCE X X
----------------
GERMANY X SCL (L) 0
----------------
HONG KONG
--- --- X X
----------------
INDONESIA X X
----------------
IRELAND X 0
----------------
ITALY X X
----------------
JAPAN X X
----------------
MALAYSIA X X
----------------
----------------
NEW ZEALAND X N A
----------------
PHILIPPINES X X
----------------
PORTUGAL X N A
----------------
SOUTH AFRICA
--- --- X X
---------------- --- ---
SPAIN X X
----------------
SWITZERLAND X X
----------------
----------------
UNITED KINGDOM X X
----------------
UNITED STATES X FAS 52 (P) NA
----------------
URUGUAY
--- --- X X
----------------
ZAMBIA X X
----------------
ZIMBABWE X X
----------------
FOUIGR CURR.EIICY TJIABSLATIOB 345
7.6 The accounting policy for dealing with transactio ns denominat ed

in a foreign currency should be disclosed

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
A B c D E--
---------
d d d d F
ARGENTINA X NA
AUSTRALIA ------
---------- X
--------------------- X
BELGIUM ------
---------- X
--------------------- X
----------
BRAZIL ------ X --------------------- NA
---------- ------
CHANNEL ISLANDS X
-------------------- - X
----------
CHILE ------ X
----------
c 86 (L) ---------- - X
COLOMBIA ------
---------- X
---------- ----------
SC; TA (L); NIPA (P)- X
DENMARK ------
---------- X
-------------------- - X
FINLAND ------
---------- X
--------------------- X
----------
FRANCE ------ ---------------------
- -
X X
GERMANY ------
---------- X
----------
SCL (L) ---------- - - - X
HONG KONG ------

---------- --------------------- X
--------------------- X - - - - -
X
INDONESIA ------
---------- X
IRELAND ------
---------- X SSAP 2 (P)-----------
---------- X
----------
ITALY ------ X
---------- ---------- - X
----------------
JAPAN X
--------------------- X
MALAYSIA ------
---------- X
--------------------- X
----------
MEXICO ------ X IMCP B-5 ----------
---------- (P) - X
NEW ZEALAND------
---------- X SSAP 1 (P)-----------
---------- NA
PHILIPPINES------
---------- X
--------------------- X
PORTUGAL ------
---------- X
--------------------- NA
---------- ------
SOUTH AFRICA X
---------- ----------- X
CA 1973 (L)
----------
SPAIN ------ PGC (L) -----------
----------
--------------------- - - - - X
X X
SWITZERLAND------
---------- X
THAILAND ------
---------- X
--------------------- X
---------- ------
UNITED KINGDOM X
---------- ;SSAP 2(P)-
CA 198l(L)---------- X
---------- ------
UNITED STATES
---------- ----------
FAS 52 (P)
- NA
---------------------
X
URUGUAY ------
---------- X X
----------
ZAMBIA ------ X
-------------------- - X
ZIMBABWE ------
---------- X
--------------------- X
---------------- ---------------------
346 FOU:IGB CURllEIICY TBABSLATIOB
COBSOLIDATED STATEMEBTS - DASUUHEIIT
7.7(a) The financial statements of a foreign subsidiary should be

translated for consolidation purposes using the closing rate
method, whereby all assets and liabilities are translated at
the exchange rate ruling at the balance sheet date

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM
--- --- X --------------------- X
----------------
BRAZIL
--- --- X --------------------- NA
----------------
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X ---------------------
NIPA (P) 0
----------------
DENMARK
--- --- X --------------------- X
----------------
FINLAND
--- --- X --------------------- X - - - -
----------------
FRANCE X ---------------------
CNC (L) N X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X --------------------- X
----------------
ITALY X --------------------- X
----------------
JAPAN X ---------------------
APF (P) X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X --------------------- 0
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND
--- --- X --------------------- X
---------------- X
THAILAND ---------------------
ED FAS 13 (P) X
----------------
----------------
UNITED STATES X ---------------------
FAS 52 (P) N NA
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
FOREIGB COIRERCY TIABSLArlOB 347
7.7(b) The financial statements of a foreign subsidiary should be

translated for consolidation purposes using the closing
exchange rate for monetary items and historical exchange
rates for non-monetary items

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X --------------------- NA
----------------
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X ---------------------
NIPA (P) 0
----------------
DENMARK X --------------------- -0
----------------
FINLAND X --------------------- X
----------------
FRANCE X --------------------- 0
----------------
GERMANY X --------------------- X
----------------
HONG KONG X --------------------- 0
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X --------------------- 0
----------------
ITALY X --------------------- 0
----------------
JAPI.N X ---------------------
APF (P) 0
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
----------------
NEW ZEALAND
--- --- X --------------------- NA
0
----------------
PHILIPPINES
--- --- X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X ---------------------
ED FAS 13 {P)
- - - - - -
0
----------------
UNITED KINGDOM X --------------------- 0
----------------
UNITED STATES X ---------------------
FAS 52 (P) NA
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- NA
----------------
ZIMBABWE X --------------------- X
---------------- --------------------- - - - - -
348 FOB.EIGR CUB.R.ERCY TIAISLATIOR
7.7(c) The financial statements of a foreign subsidiary should be

translated for consolidation purposes using the closing
exchange rate for current assets and liabilities and
historical exchange rates for non-current assets and
liabilities

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X NA
CHILE X NA
DENMARK X 0
FINLAND X X
FRANCE X 0
GERMANY X X
HONG KONG
INDONESIA
--- --- X
X N A
0
IRELAND X 0
ITALY X 0
JAPAN X APF (P) 0
MALAYSIA X 0
MEXICO X X
NEW ZEALAND X NA
PHILIPPINES X NA
PORTUGAL X NA
SOUTH AFRICA X 0
SPAIN
SWITZERLAND
--- --- X
X
N A
X
THAILAND X ED FAS 13 {P) 0
UNITED KINGDOM X 0
UNITED STATES FAS 52 (P) NA
URUGUAY
--- --- X
NA
ZAMBIA
--- --- X
X NA
ZIMBABWE X X
FOUIGB CUillERCY 'HAIISLATIOB 349
7.7(d) The financial statements of a foreign subsidiary should be

translated for consolidation purposes using the temporal
method, whereby monetary assets and liabilities plus all assets
carried at current values are translated at the closing
exchange rate, and all other items are translated at historical
exchange rates

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e·
d
e
d
SOURCE -----------
AB c D E F
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL
CHANNEL ISLANDS
--- --- X
X
N A
NA
CHILE
--- --- X N A
DENMARK X 0
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X N A
IRELAND X 0
ITALY X 0
JAPAN X FCTS (L) N X
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X
PORTUGAL
--- --- X
N A
SOUTH AFRICA
--- --- X
N A
--- ---
X
SPAIN X
SWITZERLAND
--- --- X
N A
X
THAILAND
--- --- ED FAS 13 (P) 0
--- ---
X
UNITED KINGDOM X X
UNITED STATES X FAS 52 (P) N N A

URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X X
350 FO.UIGB COUDICY TUBSLATIOB
7.8{a) Exchange gains and losses arising from the translation of

a foreign subsidiary's financial statements should be
treated as part of the profit or loss for the period

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- - X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X --------------------- NA
----------------
CHANNEL ISLANDS --------------------- NA
-
X
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X ---------------------
NIPA (P) 0
----------------
DENMARK ---------------------
--- ---
X X
----------------
FINLAND X --------------------- X
----------------
FRANCE X --------------------- X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X ---------------------
PAl 1 (P) NA
----------------
IRELAND X --------------------- X
----------------
ITALY X --------------------- X
----------------
JAPAN X ---------------------
FCTS (L) N X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X --------------------- 0
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X --------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
ED FAS 13 (P) X
----------------
----------------
UNITED STATES X ---------------------
FAS 52 (P) NA
----------------
URUGUAY --------------------- NA
--- ---
X
----------------
ZAMBIA --------------------- NA
--- ---
X
----------------
ZIMBABWE ---------------------
---------------- --- --- ----- --------------------- - -
X X
FOUIGB CUDERCY TIABSLATIOR 351
7.8(b) Exchange gains and losses arising from the translation of a

foreign subsidiary's financial statements should be taken
direct to reserves

PRACTICE
K.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB cDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHILE X NA
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X NA
IRELAND X X
ITALY X X
JAPAN X FCTS (L) N 0
MALAYSIA X X
MEXICO X X
NEW ZEALAND X NA
PHILIPPINES X NA
PORTUGAL X NA
SOUTH AFRICA
--- --- X X
SPAIN X NA
THAILAND ED FAS 13 (P) 0
--- ---
X
UNITED KINGDOM X X
UNITED STATES X FAS 52 (P) N NA
URUGUAY X NA
ZAMBIA X NA
ZIMBABWE X X
--- ---
352 I'OUIGB CUI.I.DCY TIAI'SLATIOB
COBSOLIDArKD STArEKIITS - DISCLOSURE
7.9 The amount of exchange gains and losses arising from the
translation of a foreign subsidiary's financial statements
should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X --------------------- X
BELGIUM X --------------------- X
BRAZIL X --------------------- NA
CHILE X --------------------- NA
COLOMBIA X ---------------------
NIPA (P) 0
DENMARK X --------------------- X
FINLAND X --------------------- 0
FRANCE X --------------------- X
GERMANY X ---------------------
SCL (L) 0
HONG KONG X --------------------- X
INDONESIA X --------------------- NA
IRELAND X --------------------- X
ITALY X --------------------- X
JAPAN X ---------------------
FCTS (L) X
MALAYSIA X --------------------- X
MEXICO X --------------------- X
NEW ZEALAND X --------------------- NA
PHILIPPINES X --------------------- NA
PORTUGAL X --------------------- NA
SOUTH AFRICA X --------------------- X
SPAIN X --------------------- NA
SWITZERLAND X --------------------- X
THAILAND X ---------------------
ED FAS 13 {P) X
UNITED KINGDOM -------~-------------
X X
UNITED STATES X ---------------------
FAS 52 (P) NA
URUGUAY X --------------------- NA
ZAMBIA X --------------------- NA
ZIMBABWE ---------------------
--------------------- - - - -
X X
I'OUIGI CUI.B.DICY TIWISLATIOI 353
7.10(a) The accounting policy regarding the method of translating the

financial statements of foreign subsidiaries should be
disclosed

PRACTICE
R.
e
c p Np
R 0 e 0 e
e m r t r
q; m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- - - -- ---- - - - - - -
ARGENTINA NA
----------------
AUSTRALIA
--- --- ---
X
----- --------------------- X - - -
- - -
---------------- --- --- --- ----- ---------------------
X
-X - - - - -
BELGIUM
----------------
BRAZIL
---
X
--- --- ----- ---------------------
RD (L)
LAW 6.404 (L)
- - N- A- - -
---------------- --- ---
X
--- ----- --------------------- - - -N -A - -
CHANNEL ISLANDS
----------------
CHILE
--- --- ---
X SSAP 2 (P)
----- --------------------- - - N- A- - -
----------------
COLOMBIA
--- --- --- ----- ---------------------
X
NIPA (P)
- - - - - -0
--- --- --- ----- --------------------- -X - - - - -
X
----------------
DENMARK
----------------
FINLAND
--- --- ---
X
----- --------------------- - X- - - - -
----------------
FRANCE
--- --- --- ----- ---------------------
X
CNC (L)
- - -X - - -
----------------
GERMANY
--- ---
X
--- ----- ---------------------
SCL (L)
- - X- - - -
---------------- --- --- ---
X
----- --------------------- - - - -X - -
HONG KONG
---------------- --- --- ---
X
----- --------------------- - - -N A- - -
INDONESIA
--------------- --X --- --- ----- ---------------------
X
- -X - - - -
IRELAND
----------------
ITALY
--- --- --- ----- --------------------- - - - -X - -
CA 1963(L);SSAP2 (P)
----------------
JAPAN
--- --- ---
X
---- --------------------- - - X- - - -
--- --- --- ----- --------------------- - - -X - - -
X
----------------
MALAYSIA
----------------
MEXICO
--- --- ---
X
----- --------------------- -X - - - - -
---------------- --- --- --- ----- ---------------------
X
- - -N A- - -
NEW ZEALAND
----------------
PHILIPPINES
--- --- ---
X
----- --------------------- - - -N -A - -
SSAP 1 {P)
----------------
PORTUGAL
--- --- ---
X
----- --------------------- - - -N A- - -
--- --- --- ----- --------------------- - -X - - - -
X
----------------
--------------- --- --- ---
X
----- --------------------- - - -N A- - -
SPAIN
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - -X - -
--------------- --- --- ---
X
----- --------------------- -X - - - - -
THAILAND
---------------- --- --- --- ----- ---------------------
X
-- - - - -
UNITED KINGDOM
----------------
UNITED STATES
--- --- ---
X
----- --------------------- - - -N A- - -
CA 1981(L) ;SSAP 2(P) X
---------------- --- --- ---

X
----- --------------------- - - -N A- - -
----- --------------------- - - -N A- - -
URUGUAY
--- --- ---
X
----------------
ZAMBIA
---------------
X
----- --------------------- - - X- - - -
---------------- --- --- --- ----- --------------------- - - - - - -
X
354 FOR.EIGII COBR.ERCY TRAIISLATIOII
7.10(b) The accounting policy regarding the treatment of exchange

gains and losses should be disclosed

PRACTICE
l{
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
- - ----
ARGENTINA X NA
----------------
AUSTRALIA X
--------------------- X
----------------
BELGIUM X
--------------------- X
----------------
BRAZIL X
--------------------- NA
----------------
CHANNEL ISLANDS X
---------------------
SSAP 2 (P) NA
----------------
CHILE X
--------------------- NA
----------------
COLOMBIA X ---------------------
NIPA (P) 0
----------------
DENMARK X
--------------------- X
----------------
FINLAND X
--------------------- 0
----------------
FRANCE X
---------------------
CNC (L) X
----------------
GERMANY X
---------------------
SCL (L) X
----------------
HONG KONG X
--------------------- X
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X
---------------------
SSAP 2 (P) X
----------------
ITALY X
--------------------- X
----------------
JAPAN X
--------------------- X
----------------
MALAYSIA X
--------------------- X
----------------
MEXICO X
--------------------- X
----------------
NEW ZEALAND X
---------------------
SSAP 1 (P) NA
----------------
PHILIPPINES X
--------------------- NA
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X
---------------------
CA 1973 (L) X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X
---------------------
CA 1981(L) ;SSAP 2(P) X
----------------
UNITED STATES X
---------------------
FAS 52 (P) NA
----------------
URUGUAY X
--------------------- NA
----------------
ZAMBIA X
--------------------- NA
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
FOUIGI CURR.ERCY TBAIISLATIOR 355
NOTES
Question 7.1-7.10
USA: FAS 52 (which was adopted in 1981) is

applicable for years beginning on or after
15th December 1982, although earlier
application is encouraged. Chapter 7 has
therefore been answered on the basis of FAS 52
rather than FAS 8 (even though our "cut-off"
was for the requirements applicable as at 1st
January 1982). In view of the change in
requirements reference to current practice has
been ommitted.
Question 7 .2(a)
FRANCE: Required except for long-term loans and

borrowings
JAPAN: Required for current items only
PORTUGAL: Only permitted if retranslation gives rise to

a loss
Question 7.3
NEW ZEALAND: This recommendation is in respect of foreign

currency loans only
PORTUGAL: See note to Q.7.2(a)
Question 7.4
MEXICO: 7.4(b) In cases of significant exchange

fluctuations, losses arising from liabilities
which are financing non-monetary assets may be
capitalized as part of the cost of such assets
Question 7.7
FRANCE: 7.7(a) Except for fixed assets, which may

certain be translated at historical exchange
rates
JAPAN: 7.7(d) Modified temporal method is required,

whereby (a) non-current monetary items should
be translated at historical rates, and (b) net
income and retained earnings should be
translated at current rates. Of the companies
surveyed, 43% used this method, with another
38% using the standard temporal method (as
permitted by a Ministry of Finance ordinance)
356
SWITZ ERLAND: Of the companies surveyed, 20% translate all

items except fixed assets at the closing rate
Question 7.8
JAPAN: Such exchange gains or losses should be

reported in a "foreign currency translation
adjustment", an asset or liability in the
balance sheet. Of the companies surveyed, 62%
adopted this treatment
USA: Such exchange gains or losses should be

recorded in an accumulated reserve account as
a separate component of stockholders' equity
CBAPTER EIGJIT SI!IGIIEITAL UPOH'IBG
Contents Questions
Introduction 359
Disclosure - general 8.1 362
Line of business disclosure 8.2 366
Geographical disclosure 8.3 367
Disclosure content 8.4 368
Inter-segment disclosures 8.5 - 8.10 388
Quantitative Content 8.11 397
Comparative disclosure 8.12 399
Accounting policy 8.13 - 8.15 400
Audit Report 8.16 403
Notes 404
SR;JIERT.AL B.EPOB.TDG 359
IliTB.ODUC'liOB
This chapter focuses on segmental reporting, which involves the

disaggregation of financial statements into important segments
normally by line of business or geographical area. Segmental
reporting is a subject of growing worldwide interest, as
evidenced by the recent publication of International Accounting
Standard No. 14 "Reporting Financial Information by Segment".
Increasingly, large companies and groups of companies are

diversifying their activities, with the aims of reducing risk and
taking advantage of developing markets. This trend of increasing
diversification has caused the users of financial statements to
request that disaggregated information be provided on matters
such as sales, profits and investment. Such information is
considered to improve the users' ability to assess the risks,
profitability and growth of these segments, and hence will enable
them to reach a better evaluation of the company's overall
prospects. The provision of information on important segments
will help users to measure the segment's performance against
similar segments in other companies or groups, the results of
such comparisons being used to improve decision-making.
The main arguments against the provision of segmental information

are that it creates additional work and costs, and can put a
company into a position of competitive disadvantage,particularly
if its international competitors are under no obligation to
disclose similar information.
A further difficulty with segmental reporting is that it may have

only limited predictive use as the policies for transfer pricing
and the allocation of common costs can distort the measurement of
a segment's profitability. This is especially valid when no
information is disclosed concerning the transfer pricing policy
and inter-company trading. Moreover, the criteria by which to
identify line of business and geographical segments are not well
defined in practice with consequent problems of interpretation.
360
As well as considering the subject of segmental reporting and the

extent and manner of disclosure, this chapter also considers the
treatment of common costs, intra-group trading, transfer pricing,
and whether the segmental information comes within the scope of
the audit report.
Su.mary of Results
The survey shows that mandatory requrements are few and far
between in respect of segmental reporting with the notable
exceptions of the USA and to a lesser extent the UK and Ireland.
There is, however, a range of disclosure practices with companies

in many countries reporting on a voluntary basis. While the
overall level of disclosure is low, line of business disclosures
are more prevalent than disclosures by geographical area.
As regards the content of segmental reports, sales data is

usually given compared to profits data which is required only in
the USA and UK. Additional information about costs, new capital
investment, total capital employed, total assets, net assets, and
number of employees are comparatively rare. Similarly,
information about inter-segment transfers, the treatment of
common costs and transfer pricing policy is only occasionally
provided with the exception of the USA.
International Accounting Standard No.l4 (IAS 14) on "Reporting

Financial Information by Segment" was issued by the IASC in 1981.
This became effective for accounting periods beginning on or
after 1 January 1983.
IAS 14 requires disclosures of sales and profits by both line of

business and geographical area. Additionally, the disclosure of
identifiable assets and the basis used for inter-segment
transfers is called for.
361
Support for lAS 14 is also found in the OECD guidelines for

Multinational Enterprises issued in 1976 and by recent UN
proposals. However, these proposals go further by recommending
segmental analyses of new capital investment and employees.
In the EEC, by way of contrast, the Fourth Directive (1978) and

t'he recently adopted Seventh Directive (1983) on "Consolidated
Accounts" require only the disclosure of sales data by line of
business and geographical area.
362 S!GMEII'r.AL B.EPOB.TIIIG
S.l(a) The entity should disclose certain segmental information

for each line of business

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X X
CHILE X 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X 0
IRELAND X X
ITALY X X
JAPAN X X
MALAYSIA X X
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED STATES X
--- ----- ---------------------
FAS 14 (P) N X
URUGUAY X X
ZAMBIA X X
::~~~~--------1---1---1-~-1-----
X
SEGMEIITAL R.EPOR.TilfG 363
S.l(b) The entity should disclose certain segmental information for

each geographical area

PRACTICE
R
e
c p N p
R 0 e 0e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB CDE F
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X X
CHILE X 0
DENMARK X X
FINLAND X X
FRANCE
--- --- X X
--- ---
--- ---
GERMANY X X
HONG KONG X X
INDONESIA X 0
IRELAND X SELA (S) N X
ITALY X X
~AN X X
MALAYSIA X 0
MEXICO X X
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X CA 198l(L);SELA (S) X
URUGUAY X X
ZAMBIA X X
ZIMBABWE X X
364 SEGHER'r.AL KEPO:UIJIG
S.l(c) The entity should disclose certain segmental information

for each category, such as subsidiaries, branches or
divisions

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABC-DEF
ARGENHNA X NA
,-I,
AUSTRALIA X X
BELGIUM X 01
BRAZIL X NA
CHANNEL ISLANDS X X
CHILE X 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X X
ITALY X X
JAPAN X X
MALAYSIA X X
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
---~------------
SWITZERLAND
-·--------------
THA1LAND
--- X
X X
0
UNitED KINGDOM 1 X X
---
X -----
_ _ _ _ _ _ _ . _ _ _ _. _ . . . , . _ . . _
__
UNITED STATES
---
X
----------------·---
URUGUAY 0
----- ---------~~----------
X
----------------
ZAMBIA X
... _______ _
~----------;;;._
0
~--------------
ZIMBABWE
-~--------------
X,
......__ . ----·------·----------- X
SBGMD'lAL B.EPOB.TIBG 365
S.l(d) The entity should disclose certain segmental information

for other categories

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X X
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X 0
SWITZ ERLAND X X
THAILAND X 0
UNITED KINGDOM X X
URUGUAY
----- ---------------------
X 0
ZAMBIA
----------------
ZIMBABWE
X
X
---.------------------ - - - - - 0
0
366 SBGIIBIIIAL R.EPOI.TDG
8.2 Segmental information should be disclosed for a particular

line of business when certain criteria are met

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- ---- - - -- --
----------------
AUSTRALIA
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - - -X -
----------------
BELGIUM
--- --- -----
N/A N/A N/A N/A ---------------------
--- - - -N -A - -
----------------
BRAZIL
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
--- --- --- -----
CHANNEL ISLANDS N/A N/A N/A N/A --------------------- - - - - - -0
----------------
----------------
CHILE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- --- - -
NA
----------------
COLOMBIA
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - - - -0
----------------
DENMARK
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
FINLAND
--- --- -----
N/A N/A N/A N/A ---------------------
--- - - - - - -0
----------------
FRANCE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -X
---------------- ---
GERMANY
--- --- -----
N/A N/A N/A N/A --------------------- -
- - - - -X
----------------
HONG KONG
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
INDONESIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
IRELAND
--- --- --- -----
N/A N/A N/A N/A --------------------- - - -
- --
----------------
ITALY
--- --- --- -----
N/A N/A N/A N/A --------------------- -
- - - - -X
X
----------------
JAPAN
--- -- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
MALAYSIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
MEXICO
--- --- --- -----
N/A N/A N/A N/A --------------------- -
- - - - -0
----------------
NEW ZEALAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -- --
NA
----------------
PHll.IPPINES
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - -X - -
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
- - -- - -
PORTUGAL
----------------
SOUTH AFRICA
--- --- --- -----
N/A N/A N/A N/A ---------------------
----------------
SPAIN
--- --- --- -----
N/A N/A N/A N/A --------------------- - - X
- ---
0
----------------
SWITZERLAND
--- --- --- ----
N/A N/A N/A N/A ---------------------
- - - - -X -
----------------
THAILAND
--- --- -----
N/A N/A N/A N/A ---------------------
--- - - -N -A - -
----------------
UNITED KINGDOM
--- --- --- ----- --------------------- - - - - - -0
----------------
UNITED STATES
--- --- --- ----- ---------------------
X
FAS 14 (P) NX
------
-----~---------- --- --- --- ----- --------------------- - - - - - -
X
URUGUAY N/A N/A N/A N/A
----------------
ZAMBIA
--- --- --- -----
N/A N/A N/A N/A --------------------- - - -
NA
- - -
0
----------------
ZIMBABWE
--- --- ---
N/A N/A N/A N/A ---------------------
----- - - - - -X -
---------------- --- --- --- ----- --------------------- - - - - -
~
SBGMD'lAL B.EPOB.TIBG 367
8.3 Segmental information should be disclosed for a particular

geographical area when certain criteria are met

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
--- --- --- ---- - - - - - -
ARGENTINA
----------------
AUSTRALIA
--- --- ---- --------------------- - - - - - -0
N/A N/A
N/A N/A
N/A
---
N/A
N/A
N/A
NA
----------------
BELGIUM
--- --- ----- --------------------- - - -N -A - -
---
N/A N/A N/A N/A
---------------- --- --- ----- -------------------- - - -N -A - -
---
BRAZIL
---------------- --- --- --- ----- --------------------- -X - - - - -
N/A N/A N/A N/A
CHANNEL ISLANDS
----------------
CHILE
N/A N/A
--- ---
N/A
N/A N/A N/A
--- ----- --------------------- - - -N A- - -
N/A
N/A
----------------
COLOMBIA
--- --- X --- ----- ---------------------
NIPA (P)
- - - - - -0
----------------
DENMARK
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
FINLAND
--- --- --- ----
N/A N/A N/A N/A ---------------------
- - - - - -0
~--------------- --- --- --- ---- --------------------- - - - - - -
FRANCE N/A N/A N/A N/A X
----------------
GERMANY
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - - - -
----------------
HONG KONG
--- --- --- ----
N/A N/A N/A N/A --------------------- - - - - - -
X
---------------- --- --- --- ----- --------------------- - - - - -

0
-
------~--------- --- --- --- ----- --------------------- - - - - - -
INDONESIA N/A N/A N/A N/A NA
IRELAND X SELA (S) X
----------------
ITALY
--- --- --- -----
N/A N/A N/A N/A
N
--------------------- - - - - - -0
----------------
JAPAN
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
MALAYSIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
----------------
MEXICO
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
---------------- --- --- --- -----
N/A N/A N/A N/A --------------------- - - - ---
NEW ZEALAND
----------------
PHILIPPINES
--- --- --- -----
N/A N/A N/A N/A ---------------------
NA
- - - - - -0
----------------
PORTUGAL
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
----------------
SOUTH AFRICA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
-------
SPAIN
....-------- --- --- --- ----- --------------------- - - - - - -
N/A N/A N/A N/A
----------------
SWITZERLAND
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - -
X
- -
----------------
THAILAND
--- --- --- -----
N/A N/A N/A N/A --------------------- - N A
---- -
X
----------------
UNITED KINGDOM
---
X
--- --- ---- ---------------------
SELA (S)
------
N X
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
FAS 14 (P) -- -- --
--- --- --- -----
NX
----------------
URUGUAY N/A N/A N/A N/A -~-------------------
- - - - - -0
----------------
ZAMBIA
--- --- --- ----
N/A N/A N/A N/A ---------------------
- - -N -A - -
----------------
ZIMBABWE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - -X - -
---------------- --- --- --- ---- --------------------- - - - - - -
368 SICIIIIITAL UPOI.'l'DG
8 .4(a)(l) Sales should be disclosed for each line of business
CURRENT R~UIREMENTS CURRENT

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA
--- --- X --------------------- X
BELGIUM
--- --- X --------------------- - - - - X
BRAZIL X --------------------- NA
CHILE X ---------------------
COLOMBIA X ---------------------
NIPA (P)
- - - -
0
0
DENMARK X --------------------- X
FINLAND X --------------------- X
FRANCE
--- --- X --------------------- X
GERMANY X --------------------- X
HONG KONG X --------------------- X
INDONESIA X --------------------- 0
IRELAND X --------------------- X
ITALY X --------------------- X
JAPAN X ---------------------
SRO (L) N X
MALAYSIA X --------------------- X
MEXICO X --------------------- X
NEW ZEALAND X --------------------- NA
X -----~--------------- X
PHILIPPINES
PORTUGAL X --------------------- 0
SOUTH AFRICA X --------------------- X
SPAIN
--- --- X -----------~--------- X
SWITZERLAND X --------------------- X
---------------------
THAILAND
UNITED KINGDOM X
X
--------------------
CA 1981 (L) X
0
UNITED STATES X --~------------~---

FAS 14 (P) X
----
----------------
URUGUAY
---- --------------~------ X
____...,..______________
X
ZAMBU. X --------------------- X
~~-------~-----
ZIMBABWE X X
---------------- ---------~-----------
SBGIIDTAL B.EPOB.TDC 369
8.4(a)(2) Sales should be disclosed for each geographical area

PRACTICE
R
·e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A B c D E F
ARGEN.TINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL N A
CHANNEL ISLANDS X 0
--------~------
CHILE X 0
COLOMBIA X X
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
ITALY X X
JAPAN X SRO (L) N X
MALAYSIA -~-------------------
--------------------- - - - - - X
X 0
-----~----------
MEXICO X
NEW ZEALAND X --------------------- NA

~-~-------~-----
PHILIPPINES X --------------------- X
PORTUGAL X --------------------- 0
SOUTH AFRICA X --------------------- X
--~----~--------
SPAIN X --------------------- X
SWITZERLAND X --------------------- X
THAILAND X --------------------- 0
UNITED KINGDOM X ---------------------
CA 198l(L) ;SELA (S) X
-~-----~-~~----- ------------------~-
~~-----~--------
URUGUAY X --------------------- X
ZAMBIA X --------------------- 0
ZIMBABWE X --------------------- X
---------~-----------
370 SIGHEIITAL ltEPO.I.TIJIG
8.4(b)(l) Gross profit should be disclosed for each line of

business

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
ITALY X 0
JAPAN X 0
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X X
ZAMBIA X 0
ZIMBABWE X X
SI!CIIDTAL llKPORTIIIG 371
8.4(b)(2) Gross profit should be disclosed for each geographical

area

PRACTICE
R
e p
c Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X X
ZAMBIA X 0
ZIMBABWE X 0
372 SJ!IGIIEIITAL UPOilTIBG
8 .4(c)(l) Pre-tax profit should be disclosed for each line of

business

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X X
CHILE X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X X
ITALY X 0
JAPAN X 0
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X
SWITZERLAND
--- --- X
0
0
THAILAND X 0
UNITED STATES X ---------------------
FAS14(P) NX X
URUGUAY X X
ZAMBIA X X
ZIMBABWE X
--- --- X
SI!GDITAL IEPOU'IliG 373
8.4(c)(2) Pre-tax profit should be disclosed for each geographical

area

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d AB CDE F
ARGENTINA X NA
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND
THAILAND
--- --- X
X
X
0
UNITED KINGDOM X SELA (S) N X
UNITED STATES X FAS 14 (P) NX

URUGUAY X X
ZAMBIA X 0
ZIMBABWE X X
374 SEGHEII'I.AL B.EPORTIIIG
8.4(d)(l) Post-tax profit should be disclosed for each line of

business

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
---~-----~------
CHILE X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X X
--~--~-~--------
INDONESIA X 0
------~---------
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X
--- ---
X
-------~----~---
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X X
SEGIIDrAL B.EPOB.TIBG 375
8 .4(d)(2) Post-tax profits should be disclosed for each

geographical area

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X --------------------- 0
BELGIUM X --------------------- 0
BRAZIL X --------------------- NA
CHILE X --------------------- - - - - - 0
COLOMBIA X --------------------- 0
DENMARK X --------------------- - - - - - 0
FINLAND X --------------------- 0
FRANCE X --------------------- X
GERMANY X --------------------- 0
HONG KONG X --------------------- 0
INDONESIA X --------------------- - - - - 0
IRELAND X --------------------- - - - - 0
ITALY X --------------------- - - - - 0
JAPAN X --------------------- 0
MALAYSIA X --------------------- 0
MEXICO X --------------------- X
~--------------------
NEW ZEALAND X NA
PHILIPPINES X --------------------- 0
PORTUGAL X --------------------- -----0
SOUTH AFRICA X --------------------- X
SPAIN X --------------------- 0
SWITZERLAND X --------------------- -----0
THAILAND X --------------------- ----- 0
UNITED STATES X --------------------- X
URUGUAY X --------------------- 0
ZAMBIA X --------------------- 0
ZIMBABWE X --------------------- 0
--------------------- -----
376 SBGMEITAL I.EPOI.TIBG
8 .4(e){ 1) Costs should be disclosed for each line of business

PRACTICE
R
e
c p Np
R 0 e 0 ,e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE 0
----- 0
X
COLOMBIA X NIPA (P)
DENMARK X
---- -0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X X
ITALY X 0
JAPAN X 0
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X 0
URUGUAY X X
ZAMBIA X X
ZIMBABWE X 0
SBCIIDTM. R.EPOR.TIBG 377
8.4(e){2) Costs should be disclosed for each geographical area

PRACTICE
H.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X X
ZAMBIA X 0
ZIMBABWE X X
378 SEGHDTAL R.EPOR.TIIIG
8 .4(f) (1) New capital investment should be disclosed for each

line of business

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
DENMARK X 0
FINLAND X X
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X X
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X DOl (Cmnd 6525) (L) X
UNITED STATES X ---------------------

FAS 14 (P) X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
SEGIIEIITAL llEPOilTDIG 379
8 .4(f)( 2) New capital investment should be disclosed for each

geographical area

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X --------------------- X
BELGIUM X --------------------- 0
BRAZIL X --------------------- NA
CHANNEL ISLANDS --------------------- 0
--------------------- - - - - 0
X
CHILE
--------------------- - - - - 0
X
COLOMBIA
--------------------- - - - - - 0
X
DENMARK X
FINLAND --------------------- 0
--------------------- - - - - - X
X
FRANCE X
--------------------- 0
--------------------- - - - - - 0
GERMANY X
HONG KONG X
INDONESIA X --------------------- 0
IRELAND X --------------------- 0
ITALY X --------------------- 0
JAPAN X
--------------------- 0
MALAYSIA X --------------------- 0
MEXICO X --------------------- 0
NEW ZEALAND X
--------------------- NA
PHILIPPINES X
--------------------- 0
PORTUGAL --------------------- 0
- -
X
SOUTH AFRICA --------------------- - - - 0

--------------------- - - - - 0
X
SPAIN X
---------------------
--------------------- - - - - - 0
SWITZERLAND X X
THAILAND X
UNITED KINGDOM X ---------------------

DOl (Cmnd 6525) (L) X
UNITED STATES X
--------------------- X
URUGUAY X
--------------------- 0
ZAMBIA X
--------------------- 0
ZIMBABWE ---------------------
--------------------- - - - - -
X X
380 SBGIIEIITAL UPOI.TiliG
8.4(g){l) Total capital employed should be disclosed for each line

of business

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
BELGIUM X --------------------- 0
--------------------- ...
BRAZIL X NA
CHILE X --------------------- 0
X ---------------------
NIPA (P)
--------------------- - - - - 0
COLOMBIA 0
X
--------------------- - - - - X
DENMARK
FINLAND X
FRANCE X --------------------- 0
GERMANY X --------------------- 0
HONG KONG X --------------------- 0
INDONESIA X --------------------- 0
IRELAND X --------------------- 0
ITALY X --------------------- 0
X ---------------------
JAPAN
MALAYSIA X --------------------- - - - - 0
0
MEXICO X --------------------- 0
NEW ZEALAND X --------------------- NA
PHILIPPINES X --------------------- 0
PORTUGAL X --------------------- 0
SOUTH AFRICA X --------------------- X
SPAIN X --------------------- 0
SWITZERLAND X --------------------- X
X ---------------------
THAILAND
X --------------------- - - - - -
0
X
UNITED KINGDOM
UNITED STATES X --------------------- - - - - X
URUGUAY X --------------------- 0
ZAMBIA X --------------------- 0
X --------------------- X
ZIMBABWE
--------------------- - - - - -
SBGMER'lAL R.EPOR.TIBG 381
8.4(g)(2) Total capital employed should be disclosed for each

geographical area

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY .e
d
e
d
e
d
e
d
SOURCE -----------
AB cDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
382 SEGIIEII'I'AL R.EPOilTDG
8 .4(h)( 1) Total assets should be disclosed for each line of

business

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA
AUSTRALIA
--- --- X N A
BELGIUM
--- --- X X
BRAZIL
--- --- X
X N A
0
CHANNEL ISLANDS X X
CHILE 0
--- ---
X
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
SEGJIDTAL UPOB.TDG 383
8 .4(h)( 2) Total assets should be disclosed for each geographical

area

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X X

URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
--------------------- - - - - -
384 SEGIIEII'I.AL R.EPO:RTIBG
8.4(i)(l) Net assets should be disclosed for each line of

business

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X X
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
SBGIIDTAL UPOB.TDG 385
8 .4( i)(2) Net assets should be disclosed for each geographical

area

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE ----------
A; B c D E F
- --i -
i
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
386 SBGIIEII'IAL I.EPOI.TIBG
8 .4(j )(1) Number of employees should be disclosed for each line of

business

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X X
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
----------------1---1---
SEGIIDITAL I.EPOitTIIIG 387
8 .4( j )( 2) Number of employees should be disclosed for each

geographical area

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB CDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
388 SEGIIEITAL B.EPOB.TIIIC
8.5 The treatment of sales between segments should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d. d ABCDEF
----
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X NA
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X N A
IRELAND X X
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X N A
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X N A
UNITED KINGDOM X X
URUGUAY X 0
X
~~~~~----------,---,---,-~
~:~~~~-------- --- --- -~-
X
SI!IGIIEIITAL UPOR.TDG 389
8.6(a) Inter-segmental sales should be included in segment

figures

PRACTICE
R
e
c p N p
R 0 e 0e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X
----------------
AUSTRALIA X
----- --------------------- - - NN AA
----------------
BELGIUM X --------------------- -< N A
----------------
BRAZIL X --------------------- NA
----------------
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X --------------------- NA
----------------
DENMARK X --------------------- X
----------------
FINLAND X --------------------- 0
----------------
FRANCE X --------------------- 0
----------------
GERMANY X --------------------- NA
----------------
HONG KONG X --------------------- 0
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X --------------------- X
----------------
ITALY X --------------------- 0
----------------
JAPAN X --------------------- 0
----------------
MALAYSIA X --------------------- 0
----------------
MEXICO X --------------------- 0
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X --------------------- 0
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA
--- --- X ---------------------
----------------
SPAIN
--- --- X --------------------- NA
0
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- NA
----------------
----------------
UNITED STATES X ---------------------
FAS 14 (P) X
----------------
URUGUAY X --------------------- NA
----------------
ZAMBIA X --------------------- NA
---------------
ZIMBABWE X --------------------- X
---------------- ---------------------
390 S!GIIERTAL I.EPOB.TIBG
8.6(b) Inter-segmental sales should be included in segment figures

and then deducted from the total

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X N A
BELGIUM X N A
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X N A
COLOMBIA X N A
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X N A
HONG KONG X 0
INDONESIA X NA
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X NA
SOUTH AFRICA X 0
SPAIN X NA
SWITZERLAND X 0
THAILAND X NA
UNITED KINGDOM X X
URUGUAY X NA
ZAMBIA X NA
ZIMBABWE X 0
SBGIIDTAL B.EPOB.TIBG 391
8.6(c) Inter-segmental sales should be excluded from the analysis

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X NA
BELGIUM X NA
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X N A
COLOMBIA X N A
DENMARK X 0
FINLAND X X
FRANCE X 0
GERMANY X N A
HONG KONG X 0
INDONESIA X NA
ITALY X 0
JAPAN X X
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X N A
SOUTH AFRICA X 0
SPAIN X NA
SWITZERLAND X 0
THAILAND X N A
URUGUAY X N A
ZAMBIA X NA
----------------
ZIMBABWE --- --- X --------------------- 0
---------------- --- --- ----- --------------------- - - - - -
392 SI!IGIIIR'rAL B.EPOB.TIBG
8.7 The value of sales between segments should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X X
CHILE X N A
COLOMBIA X N A
DENMARK X 0
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X NA
IRELAND X X
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X N A
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X X
THAILAND X NA
UNITED KINGDOM X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
SEGHEIITAL R:EPO&TDG 393
8.8 The treatment of common costs (such as group administration)

in the segmental analysis should be disclosed

PRACTICE
1{
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X N A
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X NA
IRELAND X X
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X NA
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X NA
UNITED KINGDOM X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
394 SEGMEITAL B.EPOB.TIIIG
8.9(a) Common costs should be allocated between segments on a

basis which must be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRAL lA X NA
BELGIUM X NA
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X NA
COLOMB lA X NA
DENMARK X N A
FINLAND X 0
FRANCE X X
G~MANY X N A
HONG KONG X 0
INDONESIA X N A
IRELAND X X
ITALY X 0
JAPAN X N A
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X N A
SOUTH AFRICA X 0
SPAIN X N A
SWITZERLAND X 0
THAILAND X NA
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X NA
ZAMBIA X NA
ZIMBABWE X 0
SI'GIIEIITAL R.EPO.R.TDG 395
8.9(b) Common costs should be allocated between segments on a

basis which need not be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABC DE F
ARGENTINA X N A
AUSTRALIA X N A
BELGIUM X N A
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X N A
COLOMBIA X N A
DENMARK X N A
FINLAND X 0
FRANCE X X
GERMANY X N A
HONG KONG X 0
INDONESIA X N A
IRELAND X 0
ITALY X 0
JAPAN X N A
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X N A
SOUTH AFRICA X 0
SPAIN X N A
SWITZERLAND X 0
THAILAND X N A
UNITED KINGDOM X 0
UNITED STATES X N X
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X 0
396 SI!CIIIII'l'AL :uPOUIBG
8.10 Costs and profits are segmented before the allocation of

common costs

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- NA
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL
--- --- X
----- --------------------- - N A
----------------
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X --------------------- NA
----------------
DENMARK X --------------------- N A
----------------
FINLAND X --------------------- 0
----------------
FRANCE X --------------------- - - - - X
----------------
GERMANY X --------------------- NA
----------------
HONG KONG X --------------------- 0
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X --------------------- X
----------------
ITALY X --------------------- 0
----------------
JAPAN X --------------------- NA
----------------
MALAYSIA X --------------------- 0
----------------
MEXICO X --------------------- 0
----------------
NEW ZEALAND
--- --- X --------------------- NA
----------------
PHILIPPINES
--- --- X --------------------- 0
----------------
PORTUGAL
--- --- X --------------------- NA
----------------
SOUTH AFRICA --------------------- 0
--- ---
X
----------------
SPAIN X --------------------- NA
----------------
SWITZERLAND X --------------------- 0
----------------
THAILAND X --------------------- NA
----------------
----------------
UNITED STATES X ---------------------N X
---------------- X ---------------------
URUGUAY
----------------
ZAMBIA X
----- --------------------- NN AA
----------------
ZIMBABWE X --------------------- 0
---------------- ---------------------
SBGJIDTAL UPORTDG 397
8.ll(a) Where segmental information is disclosed, information

should be given in absolute terms (ie. money values)
CURRENT R~UIREMENTS CURRENT

PRACTICE
1<.
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
----
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X
--------------------- NA
----------------
----------------
CHILE X --------------------- NA
----------------
COLOMBIA X ---------------------
NIPA (P) X
----------------
DENMARK X
--------------------- X
----------------
FINLAND --------------------- X
--------------------- X - - - -
X
----------------
FRANCE X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X
--------------------- NA
----------------
IRELAND ---------------------
SELA (S)
----------------
ITALY
--- --- X
X
X
--------------------- X - - - - -
----------------
JAPAN X
---------------------
SRO (L) X
----------------
MALAYSIA X
--------------------- X
----------------
MEXICO X
--------------------- X
----------------
NEW ZEALAND X
--------------------- NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X --------------------- X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
CA 1981(1) ;SELA (S) X
----------------
UNITED STATES X ---------------------
FAS 14 (P) X
----------------
URUGUAY X
--------------------- X
----------------
ZAMBIA X --------------------- X
----------------
ZIMBABWE X
--------------------- X
---------------- ---------------------
CHAPTER :EIGBr SIICMEIITAL I.EPOilTIRG 398
8.11 {b) Where segmental information is disclosed, information

should be given in percentages
CURRENT RJ!XlUIREMENTS CURRENT

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA NA
--- ---
X
----------------
AUSTRALIA X
--------------------- X
----------------
BELGIUM X --------------------- 0
----------------
BRAZIL --------------------- NA
----------------
CHANNEL ISLANDS
--- --- X
X
--------------------- X
----------------
CHILE X
--------------------- NA
----------------
COLOMBIA ---------------------
--------------------- - - - - X
X X
----------------
DENMARK
----------------
FINLAND
--- --- X
--------------------- - - - - 0
--- ---
X
----------------
FRANCE X --------------------- X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X
--------------------- X
----------------
INDONESIA X
--------------------- NA
----------------
IRELAND X ---------------------
SELA (S) X
----------------
ITALY ---------------------
-
X X
----------------
JAPAN X ---------------------
SRO (L)
- - - X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X
--------------------- 0
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X --------------------- NA
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X --------------------- X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X
--------------------- NA
----------------
----------------
UNITED STATES ---------------------
FAS 14 (P)
- - - -
--------------------- - - - - - 0
X X
----------------
URUGUAY X
----------------
ZAMBIA X --------------------- 0
----------------
ZIMBABWE ---------------------
---------------- --- --- ----- --------------------- - - - - X
X
SBGHEIITAL llEPOB.TIRG 399
8.12 Segmental information covering more than one year should be

disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r Companies
q m m m disclosing
u e i i segmental
i n t t information
r d t t
d d d d ABCDEF
ARGENTINA X N A
----------------
AUSTRALIA X X
----------------
BELGIUM X X
----------------
BRAZIL X N A
----------------
CHANNEL ISLANDS X X
---------------
CHILE X N A
----------------
COLOMBIA X X
----------------
DENMARK X X
----------------
FINLAND X X
----------------
FRANCE X X
----------------
GERMANY X X
----------------
HONG KONG X X
----------------
INDONESIA X NA
----------------
IRELAND
--- --- X
--- ---
X
---------------- X X
- ---
ITALY
----------------
JAPAN X SRO (L) X
-- - -
----------------
MALAYSIA X X
- - - -
----------------
MEXICO X 0
----------------
NEW ZEALAND X NA
----------------
PHILIPPINES X X
----------------
PORTUGAL X NA
---------------
SOUTH AFRICA X X
----------------
SPAIN X X
----------------
SWITZERLAND X X
----------------
THAILAND X NA
----------------
----------------
UNITED STATES X SEC SX(L);FAS 14 (P) X
----------------
URUGUAY X X
----------------
ZAMBIA X X
----------------
ZIMBABWE X X
--------------- ---------------------
400 SBGMDTAL I.EPOUDIC
8.13 The accounting policy for segmental reporting should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X NA
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X X
MALAYSIA X 0
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X NA
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
SEGMDTAL llEPOJrl'IIIG 401
8.14 The accounting policy for transfer pricing should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS 0
----0
X
CHILE X
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL
----0
----0
X
SOUTH AFRICA X
SPAIN X
-- --0
X
SWITZERLAND X
THAILAND X 0
UNITED KINGDOM X CA 198l(L);SSAP 2(P) X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
402 SBGHEIIrAL UPOJaDG
8.15 Disclosure should not be made if such disclosure is

considered harmful to the entity's business

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X N A
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X 0
GERMANY X N A
HONG KONG X N A
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X NA
SOUTH AFRICA X 0
SPAIN X N A
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X
---------------------
FAS 14 (P) 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
SBCIIEIItAL B.EPOilTDIG 403
8.16 Segmental information should be covered by the audit report

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB CDEF
ARGENTINA X NA
AUSTRALIA X
----- --------------------- - - X
BELGIUM X --------------------- 0
BRAZIL X --------------------- NA
CHILE X --------------------- NA
COLOMBIA X --------------------- NA
DENMARK X --------------------- 0
FINLAND X --------------------- 0
FRANCE X --------------------- X
GERMANY X --------------------- X
HONG KONG X --------------------- X
INDONESIA X --------------------- NA
IRELAND X --------------------- X
ITALY X --------------------- 0
JAPAN X --------------------- 0
MALAYSIA X --------------------- - - - - X
MEXICO X --------------------- - - - - 0
NEW ZEALAND X --------------------- NA
PHILIPPINES X --------------------- X
PORTUGAL X --------------------- NA
SOUTH AFRICA X --------------------- X
SPAIN X --------------------- X
SWITZERLAND X --------------------- 0
THAILAND X --------------------- NA
UNITED KINGDOM X ---------------------
CA 1981 (L) X
UNITED STATES X ---------------------

SAS {P) X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
404 SEGMEIITAL B.EPOB.TDIG
NOTES
Question 8.1
IRELAND: 8.1(b) The analysis should be by continent.

If 50% of total overseas operations relates to
one continent a further analysis, for example,
by country within that continent will be
required
UK: 8.1(a) Classes of business that in the
opinion of directors differ substantially from
each other
8.1(b) Markets that in the opinion of
directors differ substantially from each other
- usually continents
USA: 8 .l(a)-(b) This applies only for public
companies
8 .l(a) "Line of Business" is defined as

single or group of related products and
services provided primarily to unaffiliated
customers for a profit
8.l(b) "Geographical Area" is defined as

foreign vs domestic operations with foreign
subdivided as appropriate
8.1(d) Major customers
Question 8.2
USA: If over 10% of the total (revenue or assets)

Question 8.3
IRELAND: No turnover analysis required unless "overseas

operations" comprises more than 10% of the
turnover. No analysis of contributions to
trading results is required unless the
contribution to profit and loss from a
particular area is 'abnormal' in nature
UK: For Listed companies - as Ireland

USA: See Q.8.2
405
Question 8.4
JAPAN: 8.4{a)(1)&(2) The registration statement and

the periodic reports filed with the Ministry
of Finance under the Securities and Exchange
law must include
{1) a breakdown of sales by product
categories
{2) a breakdown of exports by geographic area
(rather than a breakdown of sales from
subsidiaries in different geographic areas)
(This information need not be included in the
external financial report)
UK: 8.4(c)(2) No analysis of contributions to

trading results is required unless the
contribution to profit and loss from a
particular area is 'abnormal' in nature.
8.4(j) (1)&(2) Under the Companies Act 1981

information concerning a company's employees
is required and should be disclosed in a
manner selected by the directors having
regard to the manner in which the company's
activities are organised
USA: 8.4(c)(1)&(2) It is required to disclose under

both categories (line of business/geographical
area) the operating profit and loss but under
geographical area this may be substituted by
net income or some other measure of
profitability. Additional profitability
information may be reported under both bases
of segmental reporting.
8.4(e) It is required to disclose

depreciation and amortization
Question 8.7
UK: 8.7(c) Transactions within a group should be

excluded when the Listing Agreement applies
Question 8.9&8.10
USA: Under FAS 14 a combination of 8.9{b) & 8.10 is

required (certain common costs are not
allocated)
CIIAP'IER. BillE FORECASTS, COIITDGEBCIBS A11D
POST BALOCE SHEEr EVERTS
Contents Questions
Introduction 409
Disclosure of quantified forecasts 9.1 - 9.2 412
Disclosure of unquantified forecasts 9.3 - 9.4 423
Forecast assumptions 9.5 433
Forecasts and actual results 9.6 435
Auditors reports 9.7 436
Impact of Forthcoming legislation 9.8 437
Publication of Forecasts -
Stock Exchange listings and mergers/takeovers 9.9 438
Contingencies 9.10 - 9.11 441
Post Balance sheet events 9.12- 9.13 446
Notes 449
FORECASTS • COIITIBGERCIES .DD 409
POST BALARCE SHEEr EVEITS
Drri.ODUCTIOR
The aim of this chapter is to discuss the extent to which

entities are required to disclose forecasts, contingencies and
post balance sheet :events.
Over the last few years there has been increasing interest in
com.pany forecasts. The inclusion of forecasts in published
accounts means that users of financial information can obtain
management's predictions of future company performance, and by
evaluating this information along with their own opinion on the
company's future it is thought that users should be in an
improved decision-making position.
The extent of forecasts (sales, profits, investment, etc.) is

covered in this chapter along with whether they are quantified or
unquantified. Also considered is the question of whether the
assumptions used in making the forecasts are disclosed and
whether companies compare actual results with previous forecasts
to provide an indication of the accuracy of their forecasting.
In addition, the question of whether forecasts should be subject
to audit is raised, as is the disclosure of forecasts in specific
situations (such as new stock exchange listings, or mergers or
takeovers).
The second topic dealt with in this chapter is contingent

liabilities. These are possible liabilities existing at the
balance sheet date whose outcome is dependent on the occurrence
or non-occurrence of uncertain future events. This section
covers the question of whether contingent liabilities should be
disclosed and the nature and extent of such disclosure, including
an estimate of the potential financial effect and possible
outcome.
410
The last topic dealt with in this chapter is post balance sheet
events. These are events occurring between the balance sheet
date and the date when the financial statements are approved by
the company directors (such events can either be favourable or
unfavourable). This section reviews the question of disclosure
in the annual financial statements of post balance sheet events
affecting the year's results. In respect of events that should
be disclosed it considers the extent of such disclosure and
whether it should incorporate general details of the event that
has occurred and the financial impact resulting from its
occurrence.
Summary of Results
There are no requirements to disclose quantitative forecasts in

the annual financial report in respect of the countries covered
by the survey. However, in practice a minority of companies in
some countries provide quantitative forecasts of sales, profits,
future employment, future capital investment, future dividends,
and so on. As regards unquantified or narrative forecasts, there
are few requirements but most notably in France and the UK. The
survey shows that in practice there is a greater tendency for
companies to provide narrative information, especially in respect
of sales and to a lesser extent future capital investment.
In the case of companies seeking a listing on the stock exchange,

there are requirements in a number of countries to disclose a
forecast eg. France, Malaysia, Spain, UK, though this may not
necessarily be quantitative.
Contingent liabilities, including their nature and financial

effect, are required to be disclosed in most countries though
some variation in practice is evident. A similar position
prevails in respect of post balance sheet events.
411
International Developaents
There is no International Accounting Standard as yet on the issue

of forecasts. However, the IASC issued International Accounting
Standard No.lO (IAS 10) on "Contingencies and Events Occurring
after the Balance Sheet Date" in 1978. This became effective for
accounting periods beginning on or after 1 January 1980.
IAS 10 requires the recognition of contingent losses but not

gains in the financial statements. However, disclosure of both
contingent gains and contingent losses is required together with
appropriate details. As regards events occurring after the
balance sheet date, the financial statements should be adjusted
to the extent they relate to the date of the accounts and
disclosure should be given in respect of events and their
financial effect, where such events would affect user decisions.
In the EEC, both the Fourth Directive (1978) and the newly
adopted Seventh Directive (1983) incorporate only general
requirements to include in the annual report "at least a fair
review of the development of the company's business and of its
position" and an indication of "the company's likely future
development". Thus forecast information in narrative form is a
minimum requirement. There is also a requirement to disclose
contingent liabilities and "any important events that have
occurred since the end of the financial year".
412 FORECASTS
9.l(a) Quantified forecasts should be given in the annual

financial report for future sales in absolute figures

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X 0
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE 0
-- - - 0
X
COLOMBIA
-- - - X
X
DENMARK X
FINLAND X X
FRANCE X X
G~~y X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA 0
SPAIN
X
X
-- - - 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
FORECASTS 413
9.l{b) Quantified forecasts should be given in the annual

financial report for future sales (in terms of market share)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X N A
AUSTRALIA 0
- - --
X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE 0
----
X
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X 0
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNIT ED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
414 FORECASTS
9.l{c) Quantified forecasts should be given in the annual

financial report for future pre-tax profits

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X 0
FRANCE X 0
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
FORECASTS 415
9.l{d) Quantified forecasts should be given in the annual

financial report for future employment figures
I P~Hf~!
CURRENT REQUIREMENTS
----r--,--;----t-----t-------1
R
e
I
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d AB CDE F
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X 0
---------~----~-
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE
-0
-- --
X
416 FORECASTS
9.1(e) Quantified forecasts should be given in the annual

financial report for future new capital investment

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB CDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM
BRAZIL
--- --- X
X N A
X
CHANNEL ISLANDS X X
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X 0
FRANCE X 0
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X SRO (L) X
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X 0
THAILAND X X
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA
ZIMBABWE
--- X
X
X
X
FORECASTS 417
9 .l(f) Quantified forecasts should be given in the annual

financial report for future dividends

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X 0
GERMANY X 0
HONG KONG X X
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X X
UNITED KINGDOM X 0
UNITED STATES X 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
418 FORECASTS
9 .l{g) Quantified forecasts should be given in the annual

financial report for future earnings per share

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X 0
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N {
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
FORECASTS 419
9.1(h) Quantified forecasts should be given in the annual

financial report for other areas

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
----------------
AUSTRALIA X 0
----------------
BELGIUM X X
----------------
BRAZIL X NA
----------------
CHANNEL ISLANDS X 0
----------------
CHILE X 0
----------------
COLOMBIA X 0
----------------
DENMARK X
----------------
FINLAND
--- --- X
0
----------------
FRANCE
--- --- X
0
X
----------------
GERMANY X X
----------------
HONG KONG X 0
----------------
INDONESIA X 0
----------------
IRELAND X
---- 0
----------------
ITALY X 0
----------------
JAPAN X SRO (L) N X
----------------
MALAYSIA X 0
----------------
MEXICO X 0
----------------
NEW ZEALAND X NA
----------------
PHILIPPINES X X
----------------
PORTUGAL X 0
----------------
SOUTH AFRICA X X
----------------
SPAIN
--- --- X 0
----------------
SWITZERLAND
--- --- X
----------------
THAILAND
--- --- X
0
0
----------------
UNITED KINGDOM X 0
----------------
UNITED STATES X X
----------------
URUGUAY X 0
----------------
ZAMBIA X 0
----------------
ZIMBABWE X X
---------------- ---------------------
420 I'OilECAS'rS
9.2(a) If quantified forecasts are required or recommended, the

figures should be disclosed as a single amount

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
-- -- -- ---- -- - -- -
----------------
AUSTRALIA
--- --- --- -----
N/A N/A N/A N/A --------------------- - - ----
----------------
BELGIUM
--- --- --- -----
N/A N/A N/A N/A --------------------- X
----- -
X
----------------
BRAZIL
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
---------------- --- --- --- -----
CHANNEL ISLANDS N/A N/A N/A N/A --------------------- X
------
----------------
CHILE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
COLOMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
DENMARK
--- --- --- -----
N/A N/A N/A N/A --------------------- X
------
----------------
FINLAND
--- --- --- -----
N/A N/A N/A N/A --------------------- X
------
----------------
FRANCE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- -X - - - -
----------------
GERMANY
--- --- --- -----
N/A N/A N/A N/A --------------------- X
------
----------------
HONG KONG
--- --- --- -----
N/A N/A N/A N/A --------------------- X
------
----------------
INDONESIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
IRELAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
ITALY
--- --- --- -----
N/A N/A N/A N/A --------------------- X
------
---------------- --- --- --- ----- --------------------- -X - - - - -
- - N- -A - -
JAPAN
----------------
MALAYSIA
--- --- --- -----
X
N/A N/A N/A N/A ---------------------

---------------- --- --- -----
N/A N/A N/A N/A ---------------------
--- - - -N A---
- - -N A- - -
MEXICO
----------------
NEW ZEALAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
---------------- --- --- --- -----
N/A N/A N/A N/A --------------------- X
------
- -N
PHILIPPINES
---------------- --- --- -----
N/A N/A N/A N/A ---------------------
--- -A---
- -- - - -
PORTUGAL
----------------
SOUTH AFRICA
--- --- --- -----
N/A N/A N/A N/A --------------------- X
----------------
SPAIN
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - -X - -
----------------
SWITZERLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
THAILAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
---------------- --- --- --- -----
UNITED KINGDOM N/A N/A N/A N/A ---------------------
- - N- A- - -
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------N
- - -X - - -
- - -N A- - -
UNITED STATES
----------------
URUGUAY
--- --- --- -----
N/A N/A N/A N/A ---------------------
----------------
ZAMBIA
--- --- --- -----
N/A N/A N/A N/A --------------------- X
------
----------------
ZIMBABWE
--- --- --- -----
N/A N/A N/A N/A --------------------- X
------
---------------- --- --- --- ----- --------------------- - - - - - -
FORECASTS 421
9.2{b) If quantified forecasts are required or recommended, the

figures should be disclosed as a range of amounts

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- -- - - - - - - - - -
----------------
AUSTRALIA
--- --- --- ----- --------------------- - - N- A- - -0
N/A N/A N/A N/A
--------------- --- --- --- ----- --------------------- - - - - - -0
BELGIUM N/A N/A N/A N/A
----------------
BRAZIL
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- -A - -
---------------- --- --- --- -----
- - - - - -0
----------------
CHILE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
COLOMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
DENMARK
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
FINLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
FRANCE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - X- -
----------------
GERMANY
--- --- --- -----
N/A N/A N/A N/A ---------------------
-- - ---
----------------
HONG KONG
--- --- -- -----
N/A N/A N/A N/A --------------------- - - - - -
0
-
----------------
INDONESIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -
NA
- -
0
-
----------------
IRELAND
--- --- --- -----
N/A N/A N/A N/A --------------------- - - ----
NA
----------------
ITALY
--- --- -----
N/A N/A N/A N/A ---------------------
--- - - - - - -0
---------------- --- --- ---
X
----- --------------------- - - - - - -0
JAPAN
----------------
MALAYSIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
MEXICO
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
NEW ZEALAND
--- --- -----
N/A N/A N/A N/A ---------------------
--- - - - -- -
NA
----------------
PHILIPPINES
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
PORTUGAL
--- --- --- -----
N/A N/A N/A N/A ---------------------
- -- ---
NA
----------------
SOUTH AFRICA
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - -- -
----------------
SPAIN
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - - - -
0
----------------
SWITZERLAND
--- --- --- -----
N/A N/A N/A N/A --------------------- - - -
NA
- -
0
-
----------------
THAILAND
--- --- --- -----
N/A N/A N/A N/A --------------------- - - --- -
NA
---------------- --- --- --- -----
UNITED KINGDOM N/A N/A N/A N/A --------------------- - - - NA
-- -
----------------
UNITED STATES
--- --- --- -----
N/A N/A N/A N/A ---------------------N
- - - - - X-
----------------
URUGUAY
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
ZAMBIA
--- --- --- ----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
ZIMBABWE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
--------------- --- --- --- ----- --------------------- - - - - - -
422 FORECASTS
9.2{c) If quantified forecasts are required or recommended, the

figures should be disclosed as a range, with probabilities
attached

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- - - -- - - - - --
N/A N/A N/A N/A NA
ARGENTINA
---------------- --- --- --- -----
N/A N/A N/A N/A --------------------- - - - - - -0
AUSTRALIA
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
- - -N -A - -
BELGIUM
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
BRAZIL
--- --- --- -----
---------------- - - - - - -0
----------------
CHILE
--- --- ----
N/A N/A N/A N/A ---------------------
--- - - -N A---
---------------- --- --- -----
N/A N/A N/A N/A ---------------------
--- - - N- A- - -
COLOMBIA
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
DENMARK
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
FINLAND
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
FRANCE
----------------
GERMANY
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
HONG KONG
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
INDONESIA
---------------- --- --- -----
N/A N/A N/A N/A ---------------------
--- - - N- A- - -
IRELAND
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
ITALY
---------------- --- --- ---
X
----- --------------------- - - - - - -0
JAPAN
----------------
MALAYSIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A---
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
MEXICO
----------------
NEW ZEALAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
PHILIPPINES
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
PORTUGAL
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - X-
SOUTH AFRICA
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
SPAIN
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
SWITZERLAND
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
THAILAND
---------------- --- --- -----
N/A N/A N/A N/A ---------------------
--- - - -N A- - -
UNITED KINGDOM
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------N
- - - - - -X
UNITED STATES
---------------- --- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
URUGUAY
----------------
ZAMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - 0-
----------------
ZIMBABWE N/A N/A N/A N/A ---------------------
- - - - - 0-
---------------- --- --- --- ----- --------------------- - - - - - -
FORECASTS 423
9.3(a) Unquantified (ie. narrative) forecasts should be given in the

annual financial report for future sales

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X N A
AUSTRALIA
--- --- X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X COB (S) 0
G~MANY X X
RONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X
----0
N:EW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZ ERLAND X X
THAILAND X X
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X X
ZAMBIA X X
ZIMBABWE X X
424 FORECASTS
9.3(b) Unquantified (ie. narrative) forecasts should be given in the

annual financial report for future market share

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
----------------
AUSTRALIA
--- --- X
----------------
BELGIUM
--- --- X
X
0
----------------
BRAZIL X N A
----------------
CHANNEL ISLANDS X 0
----------------
CHILE X 0
----------------
COLOMBIA X 0
----------------
DENMARK X 0
----------------
FINLAND X X
----------------
FRANCE X COB {S) X
----------------
GERMANY X X
----------------
HONG KONG X 0
----------------
INDONESIA X 0
----------------
IRELAND X 0
----------------
ITALY X X
----------------
JAPAN X
----------------
MALAYSIA
--- --- X
0
----------------
MEXICO
--- --- X
0
0
----------------
NEW ZEALAND
--- --- X N A
----------------
PHILIPPINES X 0
----------------
PORTUGAL X 0
----------------
SOUTH AFRICA X X
----------------
SPAIN X 0
----------------
SWITZERLAND X
----------------
THAILAND
--- --- X
X
0
----------------
UNITED KINGDOM X 0
----------------
UNITED STATES X X
----------------
URUGUAY X 0
----------------
ZAMBIA X 0
----------------
ZIMBABWE X X
----------------
FORECASTS 425
9.3(c) Unquantified (ie. narrative) forecasts should be given in the

annual financial report for future pre-tax profits

PRACTICE
1<.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X X
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X COB (S) 0
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
426 FOB.ECASTS
9.3(d) Unquantified (ie. narrative) forecasts should be given in the

annual financial report for future employment figures

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X COB (S) 0
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
FORECASTS 427
9.3(e) Unquantified (ie. narrative) forecasts should be given in

the annual financial report for future capital investment

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X
BRAZIL
--- --- X
X
CHANNEL ISLANDS
--- --- X
N A
CHILE
--- --- X
X
COLOMBIA X 0
DENMARK
FINLAND
--- --- X
0
0
FRANCE X COB (S) 0
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X X
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
428 FORECASTS
9.3(f) Unquantified (ie. narrative) forecasts should be given in

the annual financial report for future dividends

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM
BRAZIL
--- --- X
X N A
0
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X COB (S) 0
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
FORECASTS 429
9.3(g) Unquantified (ie. narrative) forecasts should be given in

the annual financial report for future earnings per share

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X 0
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
430 FORECASTS
9.3(h) Unquantified (ie. narrative) forecasts should be given in

the annual financial report for other areas

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
ARGENTINA
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X CL (L) N X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X X
UNITED KINGDOM X CA 1981 (L) N 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
FOUCA.STS 431
9.4(a) If unquantified forecasts are required then they should be

related to some benchmark (eg a comparison with current
year's results)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
-- -- -- - - - - - -
----------------
AUSTRALIA
--- --- ---
-----
N/A N/A N/A N/A --------------------- - - - - - -X
----------------
BELGIUM
--- --- --- ----- --------------------- -X - - - - -
N/A N/A N/A N/A
----------------
BRAZIL
--- --- ----- --------------------- - - N- A- - -
---
N/A N/A N/A N/A
---------------- --- --- --- ----- --------------------- - - - - - -0
----------------
CHILE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
COLOMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- -N- A- - -
----------------
DENMARK
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -X - - -
----------------
FINLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
FRANCE
--- --- ---
X
----- --------------------- - - - - - X-
----------------
GERMANY
---- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - X-
----------------
HONG KONG
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
INDONESIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
IRELAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A---
--- --- ----- - - - -X - -
---------------- N/A N/A N/A N/A ---------------------
ITALY
---
----------------
JAPAN
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
MALAYSIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
MEXICO
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
NEW ZEALAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
PHILIPPINES
--- --- --- -----
N/A N/A N/A N/A ---------------------
- -X - - - -
----------------
PORTUGAL
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
SOUTH AFRICA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - -X -
----------------
SPAIN
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - 0-
----------------
SWITZERLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - -X -
---------------- ---
THAILAND
--- --- -----
N/A N/A N/A N/A ---------------------
- - - -X - -
----------------
UNITED KINGDOM
--- --- ---
X
----- --------------------- -X - - - - -
----------------
UNITED STATES
--- --- --- -----
N/A N/A N/A N/A ---------------------
- --X ---
----------------
URUGUAY
--- --- --- -----
N/A N/A N/A N/A --------------------- X
- - -- --
--- --- --- ----- - - - -X - -
----------------
ZAMBIA N/A N/A N/A N/A ---------------------
----------------
ZIMBABWE N/A N/A N/A N/A ---------------------
- - - - X- -
---------------- --- --- ----- --------------------- - - - - - -
---
432 FORECASTS
9.4{b) If unquantified forecasts are required then they should be

expressed in purely subjective terms

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
-- -- - -- - - -- - -
----------------
AUSTRALIA
--- --- --- -----
N/A N/A N/A N/A
-
--------------------- X - - - -
-
----------------
BELGIUM
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - - - -0
----------------
BRAZIL
--- --- --- -----
N/A N/A N/A N/A --------------------- - - N- A- - -
---------------- --- --- --- ----- --------------------- -X - - - - -
----------------
CHILE
--- --- --- ----- --------------------- -X - - - - -
N/A N/A N/A N/A
----------------
COLOMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
---------------- --- --- --- ----- - - - ---
DENMARK N/A N/A N/A N/A --------------------- X
--- --- --- ----- - - -- --
----------------
FINLAND N/A N/A N/A N/A --------------------- X
----------------
FRANCE
--- --- --- ----- --------------------- -X - - - - -
----------------
GERMANY
--- --- --- -----
X
N/A N/A N/A N/A --------------------- X
--- -- -
----------------
HONG KONG
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -A
N
---
----------------
INDONESIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
IRELAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N - A- - -
---------------- --- --- --- ----- - - -X - - -
ITALY N/A N/A N/A N/A ---------------------
----------------
JAPAN
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
MALAYSIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
MEXICO
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
---------------- --- --- --- ----- - - ----
NEW ZEALAND N/A N/A N/A N/A --------------------- NA
----------------
PHILIPPINES
--- --- --- -----
N/A N/A N/A N/A --------------------- - - - - -X -
----------------
PORTUGAL
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
SOUTH AFRICA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -X - - -
----------------
SPAIN
--- --- --- -----
N/A N/A N/A N/A --------------------- X
------
---------------- --- --- --- ----- - - -X - - -
SWITZERLAND N/A N/A N/A N/A ---------------------
---------------- ---
THAILAND
--- --- -----
N/A N/A N/A N/A ---------------------
- - - -X - -
----------------
UNITED KINGDOM
--- --- ---X ----- --------------------- - - - - - -0
--- --- --- ----- - - - -X - -
----------------
UNITED STATES N/A N/A N/A N/A ---------------------
----------------
URUGUAY
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - - - -0
----------------
ZAMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - - -X - -
----------------
ZIMBABWE
--- --- --- -----
N/A N/A N/A N/A ---------------------
- -X - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
FORECASTS 433
9.5{a) The underlying assumptions should be disclosed for

quantified forecasts in annual financial reports

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X N A
COLOMBIA X NA
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X NA
IRELAND X NA
ITALY X 0
JAPAN X 0
MALAYSIA X NA
MEXICO X NA
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X NA
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X NA
THAILAND X NA
UNITED KINGDOM X NA
UNITED STATES X SOP 75.4 (P) X
URUGUAY X NA
ZAMBIA X 0
ZIMBABWE X X
4:'!4 FORECASTS
9.5(b) The underlying assumptions should be disclosed for

unquantified forecasts in annual financial reports

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X N A
DENMARK X X
FINLAND
FRANCE
X
X
- - - - X0
GERMANY X X
HONG KONG X NA
INDONESIA X NA
IRELAND X NA
ITALY X X
JAPAN X NA
MALAYSIA X NA
MEXICO X NA
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X NA
SOUTH AFRICA X X
SPAIN X X
SWITZ ERLAND X X
THAILAND X X
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
FORECASTS 435
9.6 Previous forecasts should be compared with actual results

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F
ARGENTINA X N A
----------------
AUSTRALIA X X
----------------
BELGIUM X 0
----------------
BRAZIL X N A
----------------
CHANNEL ISLANDS X 0
----------------
CHILE X X
----------------
COLOMBIA X 0
----------------
DENMARK X X
----------------
FINLAND X 0
----------------
FRANCE X 0
----------------
GERMANY X 0
----------------
HONG KONG X 0
----------------
INDONESIA X 0
----------------
IRELAND X 0
----------------
ITALY X 0
----------------
JAPAN X
----------------
MALAYSIA
--- --- X N A
0
----------------
MEXICO X N A
----------------
NEW ZEALAND X N A
----------------
PHILIPPINES X 0
----------------
PORTUGAL X N A
----------------
SOUTH AFRICA X X
----------------
SPAIN X 0
----------------
SWITZERLAND X
--- ---
0
----------------
THAILAND X X
----------------
UNITED KINGDOM X SELA (S) N 0
----------------
UNITED STATES X 0
----------------
URUGUAY X X
----------------
ZAMBIA X 0
----------------
ZIMBABWE X X
----------------
436 FORECASTS
9.7 The forecasts in the annual financial report should be

reported on by the auditors

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABCDEF
ARGENTINA X NA
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X NA
DENMARK X 0
FINLAND X 0
FRANCE X (
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X NA
MEXICO X NA
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X NA
SOUTH AFRICA X N X
SPAIN X 0
SWITZERLAND X 0
THAILAND X X
UNITED KINGDOM X 0
UNITED STATES X 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
FOitECASTS 437
9.8 The likely impact on earnings and performance of any

forthcoming legislation should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
----------------
AUSTRALIA X X
----------------
BELGIUM X 0
----------------
BRAZIL X N A
----------------
CHANNEL ISLANDS X 0
----------------
CHILE X 0
----------------
COLOMBIA X 0
----------------
DENMARK X 0
----------------
FINLAND X 0
----------------
FRANCE X
--- ---
X
----------------
GERMANY X X
----------------
HONG KONG X 0
----------------
INDONESIA X 0
----------------
IRELAND X 0
----------------
----------------
JAPAN X 0
----------------
MALAYSIA X 0
----------------
MEXICO X 0
----------------
NEW ZEALAND X N A
----------------
PHILIPPINES
--- ---
X 0
----------------
PORTUGAL X 0
----------------
SOUTH AFRICA X 0
----------------
SPAIN
--- --- X
----------------
SWITZERLAND X
-- -- 00
----------------
THAILAND X
--- ---
X
----------------
UNITED KINGDOM X 0
----------------
UNITED STATES X X
----------------
URUGUAY X 0
----------------
ZAMBIA X 0
----------------
ZIMBABWE X X
----------------
438 FOI.ECASTS
9.9(a) Forecasts should be published in the case of an entity

seeking a listing on the stock exchange

PRACTICE
1{
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB CDEF
ARGENTINA X CNV (L) NA

AUSTRALIA X --------------------- NA
BELGIUM X NA
BRAZIL X NA
CHILE X N A
COLOMBIA X NA
DENMARK X NA
FINLAND X NA
FRANCE X ---------------------
COB (S) NA
GERMANY X --------------------- NA
HONG KONG X --------------------- NA
INDONESIA X --------------------- NA
IRELAND X ---------------------
SELA (S) NA
ITALY X --------------------- NA
JAPAN X --------------------- NA
MALAYSIA X ---------------------
ere NA
MEXICO X --------------------- NA
NEW ZEALAND
--- --- X --------------------- NA
PHILIPPINES X --------------------- NA
PORTUGAL X --------------------- NA
SOUTH AFRICA X --------------------- NA
SPAIN X ---------------------
LAW 1981 (L) NA
SWITZERLAND X --------------------- NA
THAILAND X --------------------- NA
UNITED KINGDOM X ---------------------
SELA (S) NA
UNITED STATES X --------------------- NA
URUGUAY X --------------------- NA
ZAMBIA N/A N/A N/A N/A ---------------------N NA
ZIMBABWE X ---------------------
SE (S) NA
---------------------
FORECASTS 439
9.9(b) Forecasts should be published in the case of a merger or

takeover

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X NA
----------------
AUSTRALIA X N A
----------------
BELGIUM X N A
----------------
BRAZIL X
----------------
CHANNEL ISLANDS
--- --- X
N A
--- ---
N A
----------------
CHILE X N A
----------------
COLOMBIA X N A
----------------
DENMARK X N A
----------------
FINLAND X NA
----------------
FRANCE X N A
----------------
GERMANY X NA
----------------
HONG KONG X NA
----------------
INDONESIA X N A
----------------
IRELAND X SELA (S) N A
----------------
ITALY X NA
----------------
JAPAN X N A
----------------
MALAYSIA X CIC N A
----------------
MEXICO X NA
----------------
NEW ZEALAND X N A
----------------
PHILIPPINES X NA
----------------
PORTUGAL
--- --- X
--- ---
N A
----------------
SOUTH AFRICA X N A
----------------
SPAIN X N A
----------------
SWITZERLAND X N A
----------------
THAILAND X N A
----------------
UNITED KINGDOM X CITY CODE N A
----------------
UNITED STATES X N A
----------------
URUGUAY X N A
----------------
ZAMBIA X N A
----------------
ZIMBABWE X SE (S) N N A
----------------
440 FOI.ECASTS
9.9(c) Forecasts should be published in other specific situations

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q ~ m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X NA
BELGIUM X N A
BRAZIL X N A
CHILE X N A
COLOMBIA X N A
DENMARK X N A
FINLAND X N A
FRANCE X COB (S) N N A
GERMANY X N A
HONG KONG X N A
INDONESIA X N A
IRELAND X
ITALY
--- --- X
N A
JAPAN
--- --- X
N A
N A
MALAYSIA X CIC N N A
MEXICO X N A
NEW ZEALAND X N A
PHILIPPINES X N A
PORTUGAL X NA
SOUTH AFRICA X NA
SPAIN X N A
SWITZERLAND X N A
THAILAND X N A
UNITED KINGDOM X N A
UNITED STATES X N A
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X N A
----------------1---
FOB.ECASTS 441
COITIBGENCIBS
9.10 Contingent liabilities should be disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
- - - - - - - -- -- -- ---1----------------
ARGENTINA LAW 19550 (L) N A
---------------- --- --- --- ----- --------------------- -X -
X
AUSTRALIA X CA (L)
BELGIUM X RD (L) X
CHILE X C 86 (L); TB 6 (P) X
COLOMBIA SC (L); NIPA (P)
--- --- ----- ---------------------
X X
----------------
DENMARK
---
X AAPA 1981 (L) X
FINLAND X X
GERMANY X SCL (L) X

IRELAND CA 1963(L);SSAP 18(P)
-X
X X
ITALY X
---------------------
PC 7 (P)
JAPAN X FSR (L) X

NEW ZEALAND X N A
----------------
PORTUGAL X ----- ---------------------
--- --- --- DL (L) -X
SPAIN X PGC (L) X
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
----------------
UNITED STATES
---
X --- --- ----- ---------------------
FAS 5 (P)
-X - - -
URUGUAY X 0

442 FORECASTS
9.ll(a) If contingent liabilities should be disclosed, then the

nature of the contingent liability should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
- - - -- - - - - - -
--- --- --- ----- --------------------- -X - - - - -
X
----------------
AUSTRALIA CA (L)
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
-X - - - - -
--- --- --- ----- --------------------- - - -N A- - -
X
----------------
BRAZIL
----------------
CHANNEL ISLANDS
--- --- --- ----- ---------------------
X
SSAP 18 (P)
-X - - - - -
--- --- --- ----- --------------------- - - -X - - -
X
----------------
CHILE TB 6 (P)
--- --- --- ----- --------------------- - - -X - - -
X
----------------
COLOMBIA sc (L); NIPA (P)
--- --- --- ----- --------------------- -X - - - - -
X
----------------
DENMARK AAPA 1981 (L)
----------------
FINLAND
--- --- ---X ----- --------------------- -X - - - - -
X
----------------
FRANCE
--- --- --- ----- ---------------------
PCG 1957 (L)
- -X - - - -
--- --- --- ----- --------------------- -X - - - - -
X
----------------
GERMANY SCL (L)
--- --- --- ----- --------------------- - - - -X - -
X
----------------
--- --- --- ----- --------------------- -X - - - - -
X
----------------
INDONESIA PAl 4 (P)
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 18 (P)
-X - - - - -
______ --- --- --- ----- --------------------- -X - - - - -
X
----------------
__________
ITALY PC 7 (P)
--- --- --- ----- --------------------- ------
,. X
JAPAN FSR (L)

----------------
MALAYSIA
---
X
--- --- ----- ---------------------
IAS 10 (P)
-X - - - - -
X
--- --- ----- --------------------- -X - - - - -

X
----------------
MEXICO
--- IMCP C-12 (P)
----------------
NEW ZEALAND
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
PHILIPPINES
--- --- --- ----- ---------------------
X
APB 22 (P)
-X - - - - -
----------------
PORTUGAL
--- ---
X
--- ----- --------------------- -X - - - - -
--- --- --- ----- --------------------- -X - - - - -
X
----------------
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L)
- - X- - - -
--- --- --- ----- --------------------- - - - -X - -
X
----------------
SWITZERLAND
----------------
THAILAND
--- --- --- ----- ---------------------
X
ED FAS 11 (P)
- - -X - - -
--- ------
X
----------------
UNITED KINGDOM
--- --- ----- ---------------------
CA 1981(L) ;SSAP 18(P) X
--- -X - - - - -
X
----------------
UNITED STATES
--- --- ----- ---------------------
FAS 5 (P)
--- --- --- ----- --------------------- -X - - - - -
X
----------------
URUGUAY
----------------
ZAMBIA
--- --- --- ----- ---------------------
X
lAS 10 (P)
-X - - - - -
--- --- --- ----- --------------------- - -X - - - -
X
----------------
ZIMBABWE IAS 10 (P)
---------------- --- --- --- ----- --------------------- - - - - - -
X
FOR.ECASTS 443
9.11 (b) If contingent liabilities should be disclosed, then the

uncertainties which may affect the situation should be
disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X X
BELGIUM
--- --- X X
BRAZIL
--- --- X N A
CHILE X
--- ----- ---------------------
TB 6 (P) X
COLOMBIA X ---------------------
sc (L) ;NIPA (P) 0
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X X
INDONESIA X
--- ----- ---------------------
PAl 4 (P) X
ITALY X ---------------------
PC 7 (P) ---- 0
JAPAN X X
NEW ZEALAND X N A
PORTUGAL X X
SOUTH AFRICA X X
SPAIN X PGC (L) 0

SWITZERLAND X X
THAILAND X X
UNITED STATES X X
URUGUAY X X
444 FORECASTS
9.11(c) If contingent liabilities should be disclosed, then an

estimate of the financial effect should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
- - - -- - - -- --
ARGENTINA X LAW 19550 (L)· NA
----------------
AUSTRALIA
---
X
--- --- ----- --------------------- - X- - - - -
CA (L)
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
-X - - - - -
----------------
BRAZIL
--- --- ---X ----- --------------------- - - -N A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
SSAP 18 (P)
- - -X - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
TB 6 (P)
- - -X - - -
----------------
COLOMBIA
---
X
--- --- ----- ---------------------
sc (L); NIPA (P)
-X - - - - -
----------------
DENMARK
---
X
--- --- ----- ---------------------
AAPA 1981 (L)
------
X
----------------
FINLAND
--- --- ---
X
----- --------------------- -X - - - - -
----------------
FRANCE
---
X
--- --- ----- ---------------------
PCG 1957 (L)
- -X - - - -
----------------
GERMANY
---
X
--- --- ----- ---------------------
SCL (L)
-X - - - - -
----------------
HONG KONG
--- ---
X
--- ----- ---------------------
SSAP 122 (P)
-X - - - - -
----------------
INDONESIA
--- ---
X
--- ----- ---------------------
PAl 3 (P)
-X - - - - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 18 (P)
-X - - - - -
----------------
ITALY
--- ---
X
--- ----- ---------------------
PC 7 (P)
-X - - - - -
----------------
JAPAN
---
X
--- --- ----- ---------------------
FSR (L)
-X - - - - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 10 (P) X
------
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP C-12 (P)
-X - - - - -
----------------
NEW ZEALAND
--- --- ---
X
----- --------------------- - - -N -A - -
----------------
PHILIPPINES
--- ---
X
--- ----- ---------------------
APB 22 (P)
- - -X - - -
----------------
PORTUGAL
---
X
--- --- ----- --------------------- -X - - - - -
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
SPAIN
--- ---
X
--- ----- ---------------------
PGC (L)
- - - - -X -
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - -X -
---------------- --- --- ---
THAILAND X
----- --------------------- - - - -X - -
----------------
UNITED KINGDOM
---
X
--- --- ----- --------------------- ------
CA 1981(L);SSAP 18(P) X
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
FAS 5 (P)
-X - - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- -X - - - - -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 10 (P)
- - - - -X -
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------
lAS 10 (P)
- X- - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
FORECASTS 445
9.1l(d) If contingent liabilities should be disclosed then an

assessment of the possibility of the contingent liability
becoming an actual liability should be disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHILE X ---------------------
TB 6 (P) X
COLOMBIA X ---------------------
sc (L); NIPA (P) 0
DENMARK X X
FINLAND
--- --- X 0
FRANCE
--- --- X X
GERMANY X SCL (L) X

--- ----- PAl 4 (P)
INDONESIA X X
IRELAND X X
ITALY X PC 7 (P) 0
JAPAN X 0
MALAYSIA X X

NEW ZEALAND X NA
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X PGC (L) 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM
--- --- X X
UNITED STATES
--- --- X X
URUGUAY
--- --- X 0
ZAMBIA
--- --- X X
ZIMBABWE X X
446 FORECASTS
POST BALABCE SHEET EVERTS
9.12 Post balance sheet events should be disclosed in the annual

financial report (where such events affect the result of the
year or years after the year being reported on)
CURRENT REQU IR.EMENTS CURRENT

PRACTICE
1<.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
-- -- - - - - -- - - -
---------------- --- --- --- ----- --------------------- - - - - - -
AUSTRALIA X X
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - - - - -0
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - -N A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
SSAP 17 (P)
- - - - - -X
----------------
CHILE
---
X
--- --- ----- ---------------------
c 86 {L); TB 6 (P)
- - - -X - -
----------------
COLOMBIA
---
X
--- --- ---- ---------------------
sc (L); NIPA (P)
- - - - - -0
----------------
DENMARK
---
X
--- --- ----- ---------------------
AAPA 1981 (L)
- - - - - -X
----------------
FINLAND
--- --- ---
X
----- --------------------- - - - - - -0
----------------
FRANCE
--- ---
X
--- ----- ---------------------
OECCA (P)
- - - - -X -
---------------- ---
GERMANY X
--- --- ----- ---------------------
SCL (L)
- - - - -X -
----------------
HONG KONG
--- --- ---
X
----- ---------------------
SSAP 110 (P)
- - - - -X -
----------------
INDONESIA
---
X
--- --- ----- ---------------------
BAPEPAM 2 (L)
- -X - - - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 17 (P)
- - - - -X -
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L)
- - - - X- -
----------------
JAPAN
---
X
--- --- ----- ---------------------
SRO (L)
- - - - -X -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 10 (P)
- - - -X - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP A-5 (P)
- - - - X- -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 5 (P)
- - -N A- - -
----------------
PHILIPPINES
--- ---
X
--- ----- ---------------------
APB 22 (P)
- - - - - -X
----------------
PORTUGAL
--- --- ---
X
----- --------------------- - - - - - -0
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
- - - - -X -
----------------
SPAIN
---
X
--- --- ----- ---------------------
PGC (L)
- - - - -X -
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - - - - - -X
----------------
THAILAND
---
X
--- --- ----- ---------------------
ED FAS 11 (p)
- - - - - -0
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA 1981(L); SSAP 17(P)
- - - -X - -
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
FAS 5 (P)
- --X ---
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - - - - -0
----------------
________________
ZAMBIA ,--- ___
___ ,---
X
--- ----- ---------------------
lAS 10 (P)
- - - -X - -
ZIMBABWE X
--- ----- ---------------------
lAS 10 (P)
- - - - - -0
---------------- --- --- --- ----- --------------------- - - - - - -
FORECASTS 447
9.13(a) If post balance sheet events should be disclosed, then the

general details of the event should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- -- -- - - ----------------- -------
----------------
AUSTRALIA
--- --- ---
X
----- X
BELGIUM X N A
BRAZIL X NA
CHILE X C 86 (L); TB 6 (P) X
COLOMBIA X SC (L); NIPA (P) N A
FINLAND X N A
FRANCE X OECCA (P) X
GERMANY X SCL (L) X
IRELAND X
---------------------
SSAP 17 (P) X
JAPAN X
----- ---------------------
SRO (L) X
MEXICO X IMCP A-5 (P) X
NEW ZEALAND X ---------------------
SSAP 5 (P) NA
PORTUGAL X N A
SPAIN X PGC (L) X
SWITZERLAND X X
UNITED KINGDOM X ---------------------
SSAP 17 (P) X
URUGUAY X NA
ZIMBABWE X lAS 10 (P) N A
448 FORECASTS
9.13(b) If post balance sheet events should be disclosed then the

financial impact of the event should be disclosed

PRACTICE
R
e
c p Np
R 0 e o e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
-- - - - - -----------------
ARGENTINA X < LAW 19550 (L) N A
AUSTRALIA X X
BELGIUM X NA
BRAZIL X N A
----------------
CHILE --- --- ---
X ----- ---------------------
C 86 (L); TB 6 (P)
- - - - -X -
COLOMBIA X SC (L); NIPA (P) N A
DENMARK X
---------------------
AAPA 1981 (L) X
FINLAND X N A
FRANCE X OECCA (P)
-
X
----------------
GERMANY X --- --- ----- ---------------------
--- SCL (L) 0
INDONESIA X BAPEPAM 2 ( L) X
----------------
IRELAND
---
X
--- --- ----- ---------------------
SSAP 17 (P) X
JAPAN X X
MEXICO X IMCP A-5 (P)

X --- --- ----- ---------------------
X
----------------
NEW ZEALAND --- SSAP 5 (P) N A
PORTUGAL X N A
SPAIN X PGC (L) X
SWITZERLAND X X
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
SSAP 17 (P)
- - - -X - -
URUGUAY X NA
ZIMBABWE X lAS 10 (P) N A
---------------- --- --- --- ----- --------------------- - - - - - -
FORECASTS 449
NOTES
Question 9.1
JAPAN: 9.l(h) The following are required to be given

in the annual financial report:
(a) production plan
(b) financing plan
Question 9.2
UNITED STATES: AICPA Statement of Position 75-4 recommends

that if quantified forecasts are presented
then they should be disclosed as a single
amount
Question 9.3
FRANCE: 9.3(h) Commercial law requires that

indications are given regarding future
outlook. It is also recommended by COB that
the financial report should disclose
prospective changes in the market conditions,
competitors etc.
UK: 9.3(h) Likely future developments in business
Question 9.6
UK: It is required that the comparison should be

made to look for significant differences
Question 9.7
SOUTH AFRICA: If the forecasts form part of the audited

portion of the annual financial statments then
it is a requirement that they be reported on
by the auditor
Question 9.9
FRANCE: 9.9(c) Issuance of shares or debentures by a

quoted company
MALAYSIA: 9.9(c) Rights issue
ZAMBIA: 9.9(a) No Stock Exchange exists in Zambia
ZIMBABWE: 9.9(b) In respect of quoted companies

CHAPTER TEN SOCIAL REPORTIBG
Contents Questions
Introduction 453
Disclosure - general 10.1 456
Labour and Employment 10.2 - 10.12 457
Production 10.13 - 10.16 480
Investment Programme 10.17- 10.18 485
Organisation Structure 10.19 - 10.20 492
Directors and Shareholders 10.21 - 10.22 501
Environmental measures 10.23 - 10.24 508
Notes 510
SOCIAL R.EPOB.TIBG 453
IBTB.ODUCTIOB
The traditional view of corporate reporting is based on the

premise that a company is accountable primarily to its
shareholders, with this accountability being monitored through
the periodic publication of financial informatio~ However, in
recent years there has been a growing recognition that a
company's actions have a significant effect on other groups in
society (such as employees, consumers, and the general public).
This school of thought considers that society (as well as the
shareholders) has entrusted certain resources to the company, and
hence the company should be accountable not only to its
shareholders but also to society in general. This point is of
particular importance in the international context due to the
impact of multinational companies on the social and economic
environment of the countries in which they invest.
As the concept of social accountability is of relatively recent

origin, there is no generally agreed way of monitoring this
accountability in the corporate report. Possible methods include
the provision of certain narrative or statistical information on
social matters or the publication of a full "social balance
sheet" or "social income statement".
This chapter reviews the disclosure requirements and practices

relating to five important topics in social reporting - labour
and employment, production, the investment programme,
organisation structure, and environmental measures.
The section on labour and employment includes the disclosure of

industrial relations policy, employment statistics, and details
of absenteeism, health and safety standards, and training and
education programmes. The production section considers disclosure
of the number of units produced, details of new products and
processes, and sources of components and raw materials. The
section on the investment programme deals with proposed capital
expenditure and announced mergers and takeovers. The section on
454
organisation structure considers details of group structure,

directors and shareholders. The final section deals
with the
disclosure of the general details and costs of major or special
environmental measures.
Summary of Results
The survey shows that disclosure requirements in the area of

Social and non-financial reporting are relatively sparse and are
concerned primarily with the numbers and remuneration of
employees, the general details and costs of proposed capital
expenditure, the costs of announced mergers and takeovers, the
ownership, names, locations and principal activities of
subsidiaries and associated companies, the names of directors and
ownership interests, and the names of principal shareholders and
ownership interests.
There is, however, a variety of reporting practices with

companies in many countries providing information on a voluntary
basis. For example, the majority of companies in Chile, France,
Italy, Japan and Zambia disclose their general labour relations
policy. Some companies in Belgium, France, Italy, Spain and the
UK disclose details of absenteeism and accident rates together
with information about health and safety measures and employee
training and education. A majority of companies in some
countries also disclose information about new products and
processes eg. France, Germany, Italy and the USA. The effects on
employment of proposed capital expenditures and mergers/takeovers
are reported by only a minority of companies in very few
countries.
As regards environmental measures, a minority of companies in

some countries disclose the general details of such measures.
However, in few countries are the costs involved disclosed. The
USA is the exception in both respects.
455
International Develop.ents
The International Accounting Standards Committee has not yet

considered questions relating to social and non-financial
reporting. However, the United Nations in its proposals for
Multinational Corporations published in 1977 placed special
emphasis on "the need to extend the scope of required disclosures
beyond purely financial reporting". The areas identified for
disclosure were labour and employment, production, investment
programmes, organisational structure and environmental measures.
Relatively detailed information for disclosure under each of
these headings was suggested.
In contrast to the UN proposals, the OECD guidelines for

Multinational Enterprises, issued in 1976, recommended only that
the average number of employees in each geographical area should
be disclosed.
In the EEC, the Fourth Directive (1978) and the newly adopted
Seventh Directive (1983) require only that the average number of
employees, categorised by function, be disclosed together with
employment costs, showing social security costs and pensions
separately.
456 SOCIAL B.EPOitTDG
10.1 There should be disclosures concerning employees and social

matters in the annual financial report

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA N A
AUSTRALIA
--- --- X
X X
BELGIUM X RD (L) X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X SC (L) 0
DENMARK X X
FINLAND X CA (L) X
FRANCE X COB (S) X

GERMANY X SCL (L) X
HONG KONG
--- --- X X
INDONESIA X X
IRELAND X X
JAPAN X ---------------------
SRO (L) X
MALAYSIA X X
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED STATES X X
URUGUAY X X
ZAMBIA X 0
ZIMBABWE X X
SOCIAL B.EPORTIRG 457
LABOUR. AliD EMPLOYJIBBT
10.2 General labour relations policy (including trade union

recognition and disputes procedure) should be disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X
----------------
AUSTRALIA
--- --- X
----- --------------------- NA
X
----------------
BELGIUM
--- --- X --------------------- - - - - - X
----------------
BRAZIL X --------------------- NA
----------------
----------------
CHILE X --------------------- X
----------------
COLOMBIA X --------------------- X
----------------
DENMARK
---
X ---------------------
----------------
FINLAND
--- --- X ---------------------
X
X
----------------
FRANCE
--- --- X --------------------- - - X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X --------------------- 0
----------------
INDONESIA X --------------------- X
----------------
IRELAND X --------------------- X
----------------
ITALY X
---------··----------- X
----------------
JAPAN X --------------------- X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X --------------------- - - - - X
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X --------------------- 0
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X --------------------- X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- X
----------------
UNITED KINGDOM X ---------------------N X
----------------
UNITED STATES X --------------------- X
----------------
URUGUAY X --------------------- X
----------------
ZAMBIA X --------------------- X
----------------
ZIMBABWE X --------------------- X
---------------- --- --- ---------------------
458 SOCIAL R.EPORTDIG
10.3(a) Average number of employees (as one figure) should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X X
COLOMBIA X 0
DENMARK AAPA 1981 (L) X
----
X
FINLAND X
---------------------
CA (L) X
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X 0
IRELAND X X
ITALY X X
JAPAN X 0
MALAYSIA X X
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL 0
--- ---
X
----------------
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
SOCIAL llEPOB.TIBG 459
10.3{b) Average number of employees in categories according to

function (production, administration etc) should be
disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X X
FRANCE X X
GERMANY X 0
HONG KONG X X
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
460 SOCIAL .R.EPORTIBG
10.3(c) Average number of employees in categories according to line

of business should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X 0
miLE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X 0
GERMANY X 0
HONG KONG X X
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X 0
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA
---------·-------
ZIMBABWE
X 0
----------·------ X X
CHAPTER TER SOCIAL R.EPOR.TIRG 461
10.3(d) Average number of employees in categories according to

geographical area should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X 0
GERMANY X 0
HONG KONG X X
INDONESIA X 0
IRELAND X X
ITALY X 0
JAPAN X 0
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
462 SOCIAL I.EPOB.TDIG
10.3(e) Average number of employees divided into male and female

sub-totals should be disclosed

PRACTICE
R.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
SOCIAL R.EPOB.TDG 463
10.3{f) Average number of employees divided into full-time and

part-time employees should be disclosed

PRACTICE
1{
e p
c Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X X
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA
--- --- X 0
SPAIN
--- --- X
--- ---
X
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X 0
URUGUAY X 0
ZAMBIA X
ZIMBABWE
---
X ---------------------
0
0
---------------------
464 SOCIAL R.EPO.RTIBG
10.4(a) Number of employees at year-end and total should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
----------------
AUSTRALIA X
----------------
BELGIUM
--- --- X
X
X
----------------
BRAZIL X N A
----------------
CHANNEL ISLANDS X X
----------------
CHILE X X
----------------
COLOMBIA X 0
----------------
DENMARK X
----------------
FINLAND
--- --- X
X
X
----------------
FRANCE X CL (L) X
----------------
GERMANY X X
----------------
HONG KONG X X
----------------
INDONESIA X X
----------------
IRELAND X X
----------------
ITALY X X
----------------
JAPAN X SRO (L) X
----------------
MALAYSIA X X
----------------
MEXICO X X
----------------
NEW ZEALAND X N A
----------------
PHILIPPINES X X
----------------
PORTUGAL X 0
----------------
SOUTH AFRICA X X
----------------
SPAIN X X
----------------
SWITZERLAND X X
----------------
THAILAND X
----------------
UNITED KINGDOM
--- --- X N
X
0
----------------
UNITED STATES X X
----------------
URUGUAY X X
----------------
ZAMBIA X
----------------
ZIMBABWE ---
X
X
----------------
X
SOCIAL .REPOitTDG 465
10.4(b) Number of employees at year-end in categories according

to function should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X SC (L) 0
DENMARK X 0
FINLAND X X
FRANCE X X
G~MANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X X
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X N 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
466 SOCIAL B.EPOR.TIBG
10.4(c) Number of employees at year-end in categories according

to lines of business should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
ffiELAND X X
ITALY X 0
JAPAN X X
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
SOCIAL R.EPOilTIIIG 467
10.4(d) Number of employees at year-end in categories according

to geographical area should be disclosed
PRACTICE
R.
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG
INDONESIA
X
X
- --- 0
0
IRELAND X X
ITALY X X
JAPAN X X
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
468 SOCIAL R.EPOR.TIIIG
10.4(e) Number of employees at year-end divided into male and

female sub-totals should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d AB CDE F
ARGENTINA X NA
AUSTRALIA X X
B~GWM X X
BRAZIL .X NA
CHANN~ ISLANDS X 0
aiLE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IR~AND X 0
ITALY X 0
JAPAN X X
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
SOCIAL B.EPOR.TIBG 469
10.4(f) Number of employees at year-end divided into full-time

and part-time employees should be disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X X
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X 0
URUGUAY X X
ZAMBIA X 0
ZIMBABWE X 0
470 SOCIAL REPOR.TIIIG
10.5 Average hours worked per employee per week should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X 0
URUGUAY X X
ZAMBIA X 0
ZIMBABWE X 0
SOCIAL llEPOB.TiliG 471
10.6 Turnover of labour should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X 0
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X 0
472 SOCIAL B.EPOB.TiliiG
10.7 Absenteeism - hours lost as an absolute figure should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X 0
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X
---- 0
FRANCE X X
GERMANY X 0
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X 0
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE
---------------- 0
X
SOCIAL R.EPOR.T DIG 473
10.8 Absenteeism - hours lost as a percentage of hours worked

should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
A Bc DEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS 0
----0
X
CHILE
- ---
X
COLOMBIA X 0
DENMARK X --------------------- 0
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES 0
----0
X
PORTUGAL X
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X 0
THAILAND 0
- - - -
X
UNITED KINGDOM
- - - -
X X
UNITED STATES 0
----
X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
474 SOCIAL R.EPOR.TIRG
10.9 Accident rates should be disclosed

PRACTICE
.K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
~llE X X
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
SOCIAL B.EPOB.TIBG 475
10.10 Health and safety standards should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X X
FRANCE X X
G~~y X X
HONG KONG X 0
INDONESIA X X
IRELAND X X
ITALY X X
JAPAN X 0
MALAYSIA X X
MEXICO X 0
Nm-7 ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X X
--------------------- - - - - -
10.11 Employee training and education programme should be disclosed

PRACTICE
1<.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X X
IRELAND X X
ITALY X X
JAPAN X 0
MALAYSIA X X
MEXICO X X
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X 0
ZAMBIA X X
ziMiAiwE--------~--- X X
---------------- ---
SOCIAL R.EPOR.TIBG 477
10.12(a) Total remuneration earned by employees should be

disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X RD (L) X
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X X
DENMARK AAPA 1981 (L) X
--- ----- --------------------- -- ---
X
FINLAND X CA (L) X
GERMANY X X
HONG KONG
- - - - - 00
X
INDONESIA X
IRELAND X X
JAPAN X
--- ----- ---------------------
SRO (L) X
MALAYSIA X X
MEXICO X X
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL
- - --
X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED STATES X X
URUGUAY X X
ZAMBIA X 0
ZIMBABWE X X
478 SOCIAL I.EPOI.TIBG
10 .12(b) Total additional employee-related expenditure paid by the

entity to the Government should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
----------------
AUSTRALIA X X
----------------
BELGIUM X RD (L) X
----------------
BRAZIL X N A
----------------
CHANNEL ISLANDS X 0
----------------
CHILE X X
----------------
COLOMBIA X
----------------
DENMARK
--- --- X
0
----------------
FINLAND
--- --- X
0
----------------
FRANCE
--- --- X X
X
----------------
GERMANY X X
----------------
HONG KONG X 0
----------------
INDONESIA X 0
----------------
IRELAND X 0
----------------
----------------
JAPAN X 0
----------------
MALAYSIA X X
----------------
MEXICO X X
----------------
NEW ZEALAND X NA
----------------
PHILIPPINES X 0
----------------
PORTUGAL X 0
----------------
SOUTH AFRICA X
-- --X
----------------
SPAIN X X
----------------
SWITZERLAND X X
----------------
THAILAND X 0
----------------
----------------
UNITED STATES X X
----------------
URUGUAY X X
----------------
ZAMBIA X 0
----------------
ZIMBABWE X X
----------------
10.12(c) Employee costs of training and education programmes

should be disclosed

PRACTICE
K
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X --------------------- X
---------------------
480 SOCIAL R.EPOB.TIIIG
PRODUCTION
10.13(a) Number of units produced in total should be disclosed

PRACTICE
K
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X X
COLOMBIA X 0
DENMARK X 0
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X X
IRELAND X X
ITALY X X
JAPAN X SRO (L) X
MALAYSIA X X
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X X
ZAMBIA X 0
ZIMBABWE X X
SOCIAL R.EPOB.TDG 481
10.13(b) Number of units produced for each line of business

should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
ClLANNEL ISLANDS X X
CHILE X X
COLOMBIA X 0
DENMARK X 0
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X 0
IRELAND X X
ITALY X X
JAPAN X X
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X X
ZAMBIA X X
ZIMBABWE X X
482 SOCW. REPOI.TIBG
10.14 New products and processes should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X X
IRELAND X X
ITALY X X
JAPAN SRO (L) 0

MALAYSIA X X
MEXICO X X
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X X
SOCIAL B.EPOB.TIIfG 483
10.15 Sources of components and raw materials should be disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE 0
----
X
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X X
IRELAND X X
ITALY X X
JAPAN X X
MALAYSIA X 0
MEXICO X X
NEW ZEALAND X N A
PH TI. IPP INES X X
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X X
ZAMBIA X X
ZIMBABWE X X
---------------------
484 SOCIAL B.EPOB.TIBG
10.16 Average capacity utilisation should be disclosed

PRACTICE
1{
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X X
~llE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X X
INDONESIA X 0
IRELAND X X
ITALY X X
JAPAN X SRO (L) X

MALAYSIA X X
MEXICO X X
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X X
SOCIAL REPORTIIIG 485
INVBSTIIENT PROGRAMME
10.17(a) General details of proposed capital expenditure should

be disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA N A
--- ---
X
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X COB (S) X
GERMANY
--- --- --
X X
HONG KONG
--
--- --- --
X X
INDONESIA
- -
--- ---
X 0
IRELAND X X
ITALY X PC 4 (P) X
JAPAN X
--- ----- ---------------------
SRO (L) NX
MALAYSIA
--- ---
X X
MEXICO X X
NE.W ZEALAND X CA (L) N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X CA 1973 (L) N X
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED STATES X X
URUGUAY X 0
=~~:~----------,---,---,-~-~-----
X
~!~~~~-------- --- --- _:_ ----- X

486 SOCIAL R.EPO.RTIBG
10.17(b) Costs of proposed capital expenditure should be disclosed

PRACTICE
1{
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
---------------- X
AUSTRALIA CA (L) X
----------------
BELGIUM X X
----------------
BRAZIL
----------------
CHANNEL ISLANDS
--- --- X N A
--- ---
X X
----------------
CHILE X 0
----------------
COLOMBIA X 0
----------------
DENMARK X 0
----------------
FINLAND X X
----------------
FRANCE X X
----------------
GERMANY X X
----------------
HONG KONG X X
----------------
INDONESIA X 0
----------------
----------------
ITALY X 0
---------------- X
JAPAN SRO (L) N X
----------------
MALAYSIA
----------------
MEXICO
--- ---
X
X
X
X
----------------
----------------
PHILIPPINES X X
----------------
PORTUGAL X 0
----------------
SOUTH AFRICA X CA 1973 (L) NX
----------------
SPAIN
----------------
SWITZERLAND
--- --- X
X
X
X
----------------
THAILAND X 0
----------------
----------------
UNITED STATES X X
----------------
URUGUAY
----------------
ZAMBIA
--- --- X
X X
0
----------------
ZIMBABWE X X
----------------
10.17(c) Effects on capacity of proposed capital expenditure should

be disclosed

PRACTICE
1<.
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB CDE F
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X X
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X 0
GERMANY X 0
HONG KONG X X
INDONESIA X X
IRELAND X 0
ITALY X 0
JAPAN X SRO (L) X
MALAYSIA X X
MEXICO X X
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X X
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X X
---------------------
488 SOCIAL R.EPOR.TIBG
10.17(d) Effects on employment of proposed capital expenditure

should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X 0
FRANCE X 0
GERMANY X 0
HONG KONG X 0
INDONESIA
----0
----0
X
IRELAND X
ITALY X 0
JAPAN X 0
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
10.18(a) General details of announced mergers and takeovers

should be disclosed

PRACTICE
R.
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB CDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X X
FINLAND X CA (L) 0
FRANCE X
--- ----- ---------------------
COB (S) X
GERMANY X X
HONG KONG X X
INDONESIA X 0
IRELAND X X
-- - -
ITALY X 0
JAPAN X SRO (L) X
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X X
SWITZ ERLAND X X
THAILAND X 0
UNITED STATES X SAS 1 (P) X

URUGUAY X 0
ZAMBIA X X
ZIMBABWE X 0
490 SOCIAL REPORTIBG
10.18(b) Costs of announced mergers and takeovers should be

disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X N X
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X X
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X SRO (L) X
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED STATES X
---------------------
SAS 1 (P) X
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X X
SOCIAL ltEPOR.TIHG 491
10.18(c) Effects on employment of announced mergers and takeovers

should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X 0
BRAZIL X NA
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X 0
GERMANY X X
HONG KONG X X
INDONESIA X 0
IRELAND X 0
ITALY X 0
JAPAN X X
MALAYSIA X 0
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X 0
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X 0
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X X
492 SOCIAL REPORTING
ORGANISATION STRUCTURE
10.19 Degree of centralisation of decision-making should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X _0
FRANCE X 0
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X X
ITALY X X
JAPAN X 0
MALAYSIA X 0
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X
ZAMBIA X
------·---------------- 0
0
ZIMBABWE X 0
SOCIAL R.EPOR.TDG 493
10.20(a) Names of subsidiaries should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
-- -- -- ---- - -- - - -
ARGENTINA X NA
----------------
AUSTRALIA
---
X
--- --- ----- ---------------------
CA (L)
-X - - - - -
----------------
BELGIUM
---
X
--- --- ----- ---------------------
RD (L)
-X - - - - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
LAW 6.404 (L)
- - N- A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
SJAP (P)
- - X- - - -
----------------
CHILE
---
X
--- --- ----- ---------------------
c 85 (L)
- - -X - - -
----------------
COLOMBIA
--- --- ---
X
----- --------------------- - - - - - -0
----------------
DENMARK
---
X
--- --- ----- ---------------------
AAPA 1981 (L)
-X - - - - -
----------------
FINLAND
---
X
--- --- ----- ---------------------
CA (L)
-X - - - - -
----------------
FRANCE
---
X
--- --- ----- ---------------------
CL (L)
- - -X - - -
----------------
GERMANY
--- --- ---
X
----- --------------------- -X - - - - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
co (L)
- X- - - - -
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
CA 1963(L) SSAP 14(P) X
------
----------------
ITALY
---
X
--- --- ----- ---------------------
CIVIL CODE (L) NX
------
----------------
JAPAN
---
X
--- --- ----- ---------------------
SRO (L)
-X - - - - -
----------------
MALAYSIA
---
X
--- --- ----- ---------------------
lAS 3 (P)
-X - - - - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
IMCP B-8 (P)
- - -X - - -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
SSAP 8 (P)
- - -N A- - -
----------------
PHILIPPINES
--- --- ---X ----- --------------------- - - - -X - -
----------------
PORTUGAL
--- --- ---
X
----- --------------------- - - - - - -X
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L)
-X - - - - -
----------------
SPAIN
--- ---X --- ----- ---------------------
PGC (L)
- - - -X - -
----------------
SWITZERLAND
--- --- ---
X
----- --------------------- - -X - - - -
----------------
THAILAND
---
X
--- --- ----- ---------------------
SET (L)
-X - - - - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
CA 1 96 7( L) ; SSAP 14(P) X
- -----
----------------
UNITED STATES
--- --- ---
X
----- ---------------------N - -X - - - -
----------------
URUGUAY
--- --- ---
X
----- --------------------- - - - - X- -
----------------
ZAMBIA
--- ---
X
--- ----- ---------------------
lAS 3 (P)
-X - - - - -
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------
lAS 3 (P)
- X- - - - -
---------------- --- --- --- ----- --------------------- - - - - - -
494 SOCIAL B.KPOB.TDIG
10.20(b) Locations of subsidiaries should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
----------------
AUSTRALIA X CA (L) N X
----------------
BELGIUM X
--- ---
X
----------------
BRAZIL X NA
----------------
----------------
CHILE X X
----------------
COLOMBIA X 0
----------------
DENMARK X AAPA 1981 (L) N X
----------------
FINLAND X
--- ---
X
----------------
FRANCE X X
----------------
GERMANY X X
----------------
----------------
INDONESIA X N A
----------------
----------------
----------------
JAPAN X ---------------------
SRO (L) X
----------------
MALAYSIA X X
----------------
MEXICO X X
----------------
NEW ZEALAND
--- --- X NA
----------------
PHILIPPINES
--- --- X X
----------------
PORTUGAL X X
----------------
SOUTH AFRICA X X
----------------
SPAIN X PGC (L) X
----------------
SWITZERLAND X X
----------------
----------------
UNITED KINGDOM X CA 1967(L);SELA (S) N X
----------------
UNITED STATES X N X
----------------
URUGUAY X X
----------------
ZAMBIA
--- --- X X
----------------
ZIMBABWE X X
----------------
SOCIAL I.EPOI.TIRG 495
10.20(c) Principal activities of subsidiaries should be disclosed

PRACTICE
K
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
1 n t t
r d t t
d d d d ABCDE F
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
INDONESIA X N A
IRELAND X CA 1963(L) SSAP 14(P)
--- --- -----
X

JAPAN X ---------------------
SRO (L) X
MALAYSIA X
--- ---
X
MEXICO X X
NEW ZEALAND
--- --- X NA
PHILIPPINES X X
PORTUGAL X X
SPAIN X ---------------------
PGC (L) X
SWITZERLAND X X

UNITED STATES X N X
URUGUAY X X
--- --- X
ZAMBIA X
ZIMBABWE X
--- --- X
496 SOCIAL B.EPOB.TIBG
10.20(d) Percentages owned in each subisidiary should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
----------------
AUSTRALIA X ---------------------
CA (L) X
---------------- --- ----- --------------------- - - --
BELGIUM X RD (L) X
----------------
BRAZIL X
--- --- ----- ---------------------
LAW 6.404 (L) NA
----------------
SJAP (P) X
----------------
CHILE X ---------------------
c 85 (L) X
----------------
COLOMBIA X ---------------------
NIPA (P) 0
----------------
DENMARK X ---------------------
MPA 1981 (L) X
----------------
FINLAND X ---------------------
CA (L) X
----------------
FRANCE X ---------------------
CL (L) X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X ---------------------
co (L) X
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SSAP 14 (P) X
----------------
ITALY X ---------------------
CIVIL CODE (L) NX
----------------
JAPAN X ---------------------
SRO (L) X
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X ---------------------
IMCP B-8 (P) X
----------------
NEW ZEALAND X ---------------------
SSAP 8 (P) NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X --------------------- X
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
- - - -
----------------
SPAIN X
--- ----- ---------------------
PGC (L) X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
SET (L) X
----------------
UNITED KINGDOM X ---------------------
CA 1967(L) ;SSAP 14(P) X
-- - -
----------------
UNITED STATES X ---------------------N X
----------------
URUGUAY X --------------------- X
-------------···--
ZAMBIA X --------------------- X
----------------
ZIMBABWE X --------------------- X
---------------- ---------------------
SOCIAL R.EPOR.TIIIG 497
10.20(e) Names of associated companies should be disclosed

PRACTICE
l{
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
----------------
AUSTRALIA X --------------------- X
----------------
BELGIUM X ---------------------
RD (L) 0
----------------
BRAZIL X
--- --- ---------------------
LAW 6.404 (L) NA
----------------
SJAP (P) X
----------------
CHILE X ---------------------
c 85 (L) X
----------------
COLOMBIA X ---------------------
NIPA (P) 0
----------------
DENMARK X ---------------------
AAPA 1981 (L) X
----------------
FINLAND X --------------------- X
----------------
FRANCE X ---------------------
CL (L) X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X ---------------------
co (L) X
- - - -
----------------
INDONESIA X --------------------- NA
----------------
IRELAND ---------------------
CA 1963(L) SSAP l(p) x
----------------
ITALY X ---------------------
CIVIL CODE (L) NX
----------------
JAPAN X ---------------------
FSR (L) X
----------------
MALAYSIA X ---------------------
lAS 3 (P) X
----------------
MEXICO X --------------------- X
----------------
NEW ZEALAND X ---------------------
SSAP 8 (P) NA
----------------
PHILIPPINES X --------------------- X
----------------
PORTUGAL X --------------------- - X
----------------
SOUTH AFRICA X ---------------------
CA 1973 (L) X
- - - -
----------------
SPAIN X ---------------------
PGC (L) N X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X ---------------------
SET (L) X
----------------
UNITED KINGDOM X ---------------------
CA 198l(L) ;SSAP l(p) X
----------------
UNITED STATES X ---------------------
APBO 18 (P) N X
----------------
URUGUAY X --------------------- X
----------------
ZAMBIA X ---------------------
lAS 3 (P) X
----------------
ZIMBABWE X ---------------------
lAS 3 (P) X
---------------- ---------------------
498 SOCIAL .R.EPO.R.TllfG
10.20(f) Locations of associated companies should be disclosed

PRACTICE
H.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X
BRAZIL
--- --- X N A
0

SJAP (P) X
CHILE X --------------------- X
COLOMBIA
--- --- X
----- --------------------- - - - -
DENMARK X ---------------------
AAPA 1981 (L) N
- - - - X
0
FINLAND X --------------------- - - - - X
FRANCE X --------------------- X
GERMANY
--- --- X --------------------- X
HONG KONG X ---------------------
co (L) X
INDONESIA X --------------------- NA
IRELAND X ---------------------
CA 1963 (L) X
ITALY X ---------------------
CIVIL CODE (L) NX
JAPAN X --------------------- X
MALAYSIA X --------------------- X
MEXICO X --------------------- X
NEW ZEALAND X --------------------- NA
PHILIPPINES X --------------------- X
PORTUGAL X --------------------- X
SOUTH AFRICA
--- --- X --------------------- X
SPAIN X ---------------------
PGC (L) X
SWITZERLAND X --------------------- X
THAILAND X ---------------------
SET (L) X
UNITED KINGDOM X
--- --- ----- ---------------------
CA 198l(L); SELA(S) N X
UNITED STATES X --------------------- X
URUGUAY
--- --- X --------------------- - - - - X
ZAMBIA
--- --- X --------------------- X
ZIMBABWE X --------------------- X
---------------------
10.20{g) Principal activities of associated companies should be

disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA
AUSTRALIA
--- --- X
X
N A
X
BELGIUM X 0
BRAZIL X N A
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X X
FRANCE X X
GERMANY X X
..,.
HONG KONG X X
INDONESIA X N A
IRELAND X CA 1963(L) SSAP l(P) X
ITALY X CIVIL CODE (L) N X

JAPAN X X
MALAYSIA X X
MEXICO X X
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X X
SOUTH AFRICA X X
SPAIN X PGC (L) X
SWITZERLAND X X
UNITED KINGDOM X SSAP 1 {P) X
UNITED STATES X
URUGUAY X X
ZAMBIA X X
ZIMBABWE X X
500 SOCIAL B.EPOR.TIBG
10.20(h) Percentages owned in each associated company should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X X
BELGIUM X
---------------------
RD (L) 0
BRAZIL X
---------------------
LAW 6.404 (L) NA
CHANNEL ISLANDS X
---------------------
SJAP (P)
--- ----- ---------------------
X
CHILE X c 85 (L) X
COLOMBIA ---------------------
NIPA (P)
-
X 0
DENMARK X
---------------------
AAPA 1981 (L)
- - - X
FINLAND X ---------------------
CA (L) NX
.I
FRANCE X
---------------------
CL (L) X
GERMANY ---------------------
----
X X
HONG KONG X
---------------------
co (L) X
INDONESIA X
--------------------- NA
IRELAND ---------------------
SSAP 1 (P)
- -- - -
X X
ITALY X
---------------------
CIVIL CODE (L) NX
JAPAN X
---------------------
FSR (L) X
MALAYSIA X
--------------------- X
MEXICO X
--------------------- X
NEW ZEALAND X
---------------------
SSAP 2 (P) NA
PHILIPPINES X
--------------------- X
PORTUGAL X
--------------------- X
SOUTH AFRICA X ---------------------

CA 1973 (L) X
SPAIN X
---------------------
PGC (L) X
SWITZERLAND X
--------------------- X
THAILAND X
---------------------
SET (L) X
UNITED KINGDOM X ---------------------

CA 198l(L);SSAP 1(P)N X
UNITED STATES ---------------------
APBO 18 (P) N
- -
X X
URUGUAY X
--------------------- - - X
ZAMBIA X
--------------------- X
ZIMBABWE X
--------------------- X
---------------------
SOCIAL B.EPOilTIBG 501
DIREC'IOilS AND SHAREHOLDEilS
10 .21(a) Names of directors should be disclosed

PRACTICE
R
e
c p N p
R 0 e 0e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABCDE F
ARGENTINA X NA
AUSTRALIA X ---------------------
CA (L) X
BELGIUM X ---------------------
RD (L) X
BRAZIL X ---------------------
LAW 6.404 (L) NA
CHILE X ---------------------
NG 3 (L) X
----
COLOMBIA X
--- ----- ---------------------
sc (L) X
----
DENMARK X --------------------- X - - - - -
FINLAND X ---------------------
CA (L) X
-----
FRANCE X ---------------------N X - - - - -
GERMANY X --------------------- X
HONG KONG X ---------------------
co (L) X
INDONESIA X --------------------- X
IRELAND X --------------------- X
-----
ITALY X --------------------- X - - - - -
JAPAN X ---------------------
SRO (L) X
- - - - -
MALAYSIA X ---------------------
MCA (L) X
MEXICO X --------------------- X
NEW ZEALAND X ---------------------
LR (S) NA
PHILIPPINES X --------------------- X
PORTUGAL
--- --- X --------------------- X
SOUTH AFRICA X ---------------------
CA 1973 (L) X
SPAIN X --------------------- X
SWITZERLAND X ---------------------
CL (L) X
-----
THAILAND X --------------------- X
UNITED KINGDOM X ---------------------
CA 1967 (L) X
UNITED STATES X ---------------------
SEC REG 14a-3 (L) N X
URUGUAY X --------------------- X
ZAMBIA X --------------------- X
ZIMBABWE X --------------------- X
---------------------
10.21(b) Number of shares in the corporation held by each

director should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
ARGENTINA X NA
AUSTRALIA X ---------------------
CA (L) X
BELGIUM X --------------------- 0
BRAZIL X NA
CHANNEL ISLANDS X X
~ILE X X
DENMARK X 0
FINLAND X 0
FRANCE X 0
GERMANY X 0
HONG KONG X X
INDONESIA X 0
ITALY X 0
JAPAN X SRO (L) X
MEXICO X 0
NEW ZEALAND X LR (S) N A
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X SE (S) N X
SPAIN X 0
SWITZERLAND
--- --- X 0
THAILAND
--- --- X 0
UNITED STATES X N X
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X X
SOCIAL K.EPOK.TDIG 503
10.2l(c) Directors' interests in contracts with the corporation

should be disclosed

PRACTICE
R
e
c p N p
R 0 e 0e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
----------------
----------------
BELGIUM X 0
----------------
BRAZIL X NA
----------------
CHANNEL ISLANDS X X
----------------
CHILE X TB 16 (P) 0
----------------
COLOMBIA X 0
----------------
DENMARK X 0
----------------
FINLAND X 0
----------------
FRANCE X CL (L) N X
----------------
GERMANY X 0
----------------
----------------
INDONESIA X 0
----------------
----------------
ITALY X 0
----------------
JAPAN
----------------
MALAYSIA
--- --- X
X MCA (L)
0
X
----------------
MEXICO X 0
----------------
----------------
PHILIPPINES X 0
----------------
PORTUGAL X 0
----------------
SOUTH AFRICA X X
----------------
SPAIN X 0
----------------
SWITZERLAND
--- --- 0
X
----------------
THAILAND X 0
----------------
----------------
UNITED STATES X N 0
----------------
URUGUAY
----------------
ZAMBIA
--- --- X
X X
0
----------------
ZIMBABWE X X
----------------
504 SOCIAL R.EPOR.TIBG
10.21(d) Other directorships held by each director should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X 0
BRAZIL X N A
CHANNEL ISLANDS X X
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X X
GERMANY X 0
HONG KONG X X
INDONESIA X 0
IRELAND X X
ITALY X 0
JAPAN X X
MALAYSIA X MCA (L) 0

MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X N X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X 0
SOCIAL K.EPOK.TDIG 505
10.22(a) Number of shareholders should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X SC (L) 0
DENMARK X X
FINLAND X X
FRANCE
--- --- X X
GERMANY X X
HONG KONG X X
INDONESIA X X
IRELAND X X
ITALY X X
JAPAN X SRO (L) X

MALAYSIA X X
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X X
PORTUGAL X X
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X X
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X X
506 SOCIAL B.EPOR.TIIIG
10.22(b) Names of principal shareholders should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X SE (S) X
BELGIUM X X
BRAZIL X NA
CHANNEL ISLANDS X X
CHILE X NG 3 {L) X
COLOMBIA X SC (L) 0
FINLAND X X
FRANCE X COB (S) X
GERMANY X X
HONG KONG X X
INDONESIA X X
ITALY X X
JAPAN X SRO (L) X
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X LR (S) NA

PHILIPPINES X 0
PORTUGAL X X
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED STATES
--- ---
X N X
URUGUAY X 0
ZAMBIA X X
ZIMBABWE X 0
10.22(c) Number (or percentage) of shares held by each shareholder

should be disclosed

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X NA
----------------
AUSTRALIA X ---------------------
SE (S) X
----------------
BELGIUM X --------------------- X
----------------
BRAZIL X --------------------- NA
----------------
----------------
CHILE X --------------------- X
----------------
COLOMBIA X ---------------------
sc (L) 0
----------------
DENMARK X --------------------- X
----------------
FINLAND X --------------------- X
----------------
FRANCE X ---------------------
COB (S) N X
----------------
GERMANY X --------------------- X
----------------
HONG KONG X --------------------- X
----------------
INDONESIA X --------------------- X
----------------
IRELAND X ---------------------
SELA (S) X
----------------
ITALY X --------------------- X
----------------
JAPAN X ---------------------
SRO (L) X
- - - -
----------------
MALAYSIA X --------------------- X
----------------
MEXICO X --------------------- 0
----------------
NEW ZEALAND X --------------------- NA
----------------
PHILIPPINES X --------------------- 0
----------------
PORTUGAL X --------------------- - - - - - X
----------------
SOUTH AFRICA X --------------------- X
----------------
SPAIN X --------------------- X
----------------
SWITZERLAND X --------------------- X
----------------
THAILAND X --------------------- 0
----------------
UNITED KINGDOM X ---------------------
SELA (S) N X
----------------
UNITED STATES X ---------------------N - - - - X
----------------
URUGUAY X --------------------- 0
----------------
ZAMBIA X --------------------- X
----------------
ZIMBABWE X --------------------- X
---------------- --------------------- - - - - -
508 SOCIAL REPORTDG
EHVIB.ONMERTAL MEASURES
10.23 General details of major or special environmental measures

should be disclosed

PRACTICE
H.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X X
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X X
COLOMBIA X 0
DENMARK X X
FINLAND X 0
FRANCE X X
GERMANY X X
HONG KONG X 0
INDONESIA X X
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X N A
PHILIPPINES X X
PORTUGAL X X
SOUTH AFRICA X X
SPAIN X X
SWITZERLAND X X
THAILAND X 0
UNITED KINGDOM X X
UNITED STATES X
-----~-~--------
URUGUAY
--- --- X
X
0
ZAMBIA X 0
ziMiAiwi--------~---~---~-i-
---------------- --- --- ---
X
SOCIAL ltEPOB.TIIIG 509
10.24 Costs of environmental measures should be disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X 0
BELGIUM X X
BRAZIL X N A
CHANNEL ISLANDS X 0
CHILE X 0
COLOMBIA X 0
DENMARK X 0
FINLAND X 0
FRANCE X 0
GERMANY X X
HONG KONG X 0
INDONESIA X 0
IRELAND X 0
ITALY X X
JAPAN X 0
MALAYSIA X X
MEXICO X 0
NEW ZEALAND X NA
PHILIPPINES X 0
PORTUGAL X 0
SOUTH AFRICA X X
SPAIN X 0
SWITZERLAND X 0
THAILAND X 0
UNITED KINGDOM X 0
UNITED STATES X X
URUGUAY X 0
ZAMBIA X 0
ZIMBABWE X X
510 SOCIAL B.EPOR.TIIIG
NOTES
Question 10.2
UK: The Corporate Report, a discussion paper

issued by the Accounting Standards Steering
Committee in 1975, recommended that the
practice specified in the following questions
be adopted:
10.2, 10.3(b)(d)(e)(f), 10.4(a)(e)(f), 10.5,
10.7, 10.9, 10.10, 10.12(c)
Question 10.3
UK: 1 Q.l0.3(b)(d)(e)(f) - see note at 10.2
2 Q.l0.3(d) this follows a recommendation of

"International Investment: Guidelines for
Multinational Enterprises" Department of
Industry 1976, Cmnd 6525
3 Q.l0.3 Current Practice - in the companies

surveyed the employee figures disclosed were
not specified as either average or year end.
It has been assumed that in all cases they are
average figures
Question 10.4
UK: 1 Q.l0.4(a)(e)(f) see note at 10.2
2 Q.l0.4(a) to (f) Current Practice - in the

companies surveyed the employee figures
disclosed were not specified as either average
or year end. It has been assumed that in all
cases they are average figures
Question 10.10
UK: Recommended by Health and Safety at Work Act

1974- no appointed day yet for disclosure
Question 10.12
JAPAN: Q.l0.12(a) Average remuneration per employee

should be disclosed
Quest ion 10 .17
JAPAN: 10.17(a)&(b) -method of financing the capital

expenditure is required to be disclosed (SRO)
511
SOUTH AFRICA: Q.l0.17(a)&{b) - separate disclosure of

expenditure contracted for and amounts
authorised but not contracted for
UK: Q.l0.17(a)&(b) - separate disclosure of

expenditure contracted for and amounts
authorised but not contracted for
Qustion 10.18
AUSTRALIA: Q.l0.18(b) Costs should be included with

capital commitments
UK: Q.l0.18(a)&(b) Only required if significant

for a true and fair view
Question 10.20
AUSTRALIA: Q.l0.20{b) Country of incorporation rather

than location is required
DENMARK: Q.l0.20(b)&(f) Registered office rather than

location is required
FINLAND: 10.20(h) Associates - disclosure required if

value of shares exceeds either:-
(i) 5% of the Shareholders equity of the
investing company; or
(ii) 100,000 mk
ITALY: Q.l0.20(a)-(h) A list of shareholdings in

controlled and associated companies giving
nominal value and carried value of holdings is
required. Also required are a copy of the
most recent set of accounts of each subsidiary
and a summary of the significant features of
the accounts of each associated company.
Because of this the information in questions
(a)-(h) becomes an indirect requirement
SPAIN: 10.20(e) It is recommended to disclose the

names of all associated companies where there
is more than a 25% holding
UK: Q.l0.20(b) 1 Names of principal country

where each subsidiary operates are required
2 Country of registration also required if
different from holding company
Q.l0.20(f) 1 Country of registration is

required
2. Country of operation is required where more
than 20% of equity capital held
Q.l0.20(h) Also required by SELA

512
USA: Q.10.20(a)(d)(e)(h) Names and percentages

owned of significant subsidiaries and
affiliates accounted for on the equity method
are required to be disclosed under APBO 18
Q.l0.20{a)-{d) Required on lOk to SEC
Quest ion 10. 21
FRANCE: Q.l0.2l{a) Commercial law requires that a

list of directors be communicated to
shareholders at their request
Q.l0.2l{c) A report must be prepared by the

statutory auditors
SOUTH AFRICA: Q.l0.21(b) Required only in aggregate held by

all directors
USA: Ownership and dealings of directors, other

directorships and affiliations of directors
are required in the Proxy Statement which is
sent automatically to shareholders
Question 10.22
FRANCE: Q.l0.22{c) Required when the percentage

exceeds 5% of the capital
UK: Q.l0.22(b)&(c) Required where more than 5% of

share capital of any class carrying rights to
vote held by one entity/person (ie.
percentage held plus nature of holder)
USA: Q.l0.22{b)&(c) Details of principal

shareholders (ie. those holding 10% or more of
voting stock of company) are required in the
Proxy Statement which is sent automatically to
shareholders
CHAPTER ELEVEN IBTERIK REPORTING
Contents Questions
Introduction 515
Disclosure 11.1 517
Scope and Content of Financial Statements 11.2 - 11.3 518
Frequency and timing of publication 11.4-11.5 532
Audit 11.6 535
Forecast information 11.7 - 11.9 536
Notes 542
IIITER.IM R.EPOR.TIBG 515
IIITR.ODUCTIOB
Interim reports are financial statements, either full or

abridged, published at intervals during the year. They are
intended to provide a summary of the company's performance in
respect of the period covered and may also include a forecast of
the important trading figures for the remainder of the financial
year under review.
The objective of interim reports is to provide the many users of

financial statements with the information needed to assist them
in making various decisions, by permitting a comparison of the
company's performance against that of previous periods and
against the performances of its major competitors at intervals
within the financial year. The provision of such information
means that decisions can be made using up-to-date information
reflecting the current economic climate. In addition ,the
information may be used to predict the results for the financial
year.
In providing timely information it is normally necessary to reach

a compromise between the accuracy and extent of the reported
information and the time available to collect and publish the
necessary information. Such time constraints affect the decision
on which information to disclose. Time constraints also mean
that although it is desirable that the auditor is involved in
examining interim reports and commenting on their accuracy, such
involvement (if any) may be limited to a brief review.
516
Summary of Results
The survey shows that requirements relating to interim reporting

are well-established in the majority of countries. However,
quarterly reports are required only in Brazil, Chile, France,
Mexico, Spain, Switzerland, Thailand and the USA. Half-yearly
reports are required more widely. The form of the reports also
tends to be abridged and covers the income statement more often
than the balance sheet. An audit of interim reports is
comparatively rare and is required only in Argentina, Australia,
Brazil, Japan and Thailand.
The International Accounting Standards Committee has not yet

considered the issue of interim reporting. Nor has this been a
subject of concern by the United Nations or OECD. In the EEC,
however, a Directive on interim financial information was adopted
in 1982, though it has yet to be introduced in most EEC
countries. This requires stock exchange listed companies to
provide half-yearly reports which is consistent, for example,
with existing requirements, in the UK.
IIITEB.IM B.EPOR.TIBG 517
11.1 Interim reports should be published

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
-- -- - - ---- - - - - - -
ARGENTINA X BCRA (L) N NA
----------------
AUSTRALIA
---
X
--- --- ----- ---------------------
COMPANIES ACT (L) N
- - -N A- - -
----------------
BELGIUM
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
CVM Inst 9 N
- - -N A- - -
----------------
CHANNEL ISLANDS
--- ---
X
--- ----- ---------------------
PDL (L) N
- - -N A- - -
----------------
CHILE
---
X
--- --- ----- ---------------------
NG 3&6 (L) N
- - -N A- - -
----------------
COLOMBIA
--- --- ---
X
----- --------------------- - - - - - -
NA
----------------
DENMARK
--- ---
X
--- ----- ---------------------
STOCK EXCHANGE (S) N
- - -
NA
- --
----------------
FINLAND
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
FRANCE
---
X
--- --- ----- ---------------------
COMMERCIAL LAW (L) N
- - N- A- - -
----------------
GERMANY
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
HKSE (S)
- - N- A- - -
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - N- -A - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SELA (S) N
- - N- A- - -
----------------
ITALY
---
X
--- --- ----- ---------------------
LAW 216 (L) N
- - -N A- - -
----------------
JAPAN
---
X
--- --- ----- ---------------------
SEL (L) N
- - -N A- - -
----------------
MALAYSIA
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
NCS (L) N
- - -N A- - -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
LR (S)
- - N- A- - -
----------------
PHILIPPINES
--- ---
X
--- ----- ---------------------
APB 21 (P) N
- - -N A- - -
----------------
PORTUGAL
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L) N
- - -N A- - -
----------------
SPAIN
---
X
--- --- ----- ---------------------
RD (L) N
- - -N A- - -
----------------
SWITZERLAND
---
X
--- --- ----- ---------------------
BANKING LAW (L) N
- - -N A- - -
---------------- ---
THAILAND X
--- --- ----- ---------------------
SET (L)
- - N- A- - -
----------------
UNITED KINGDOM
---
X
--- --- ----- ---------------------
SELA (S) N
- - N- A- - -
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
SEC-SX RULE13a-13(L)N
- - N- A- - -
----------------
URUGUAY
--- --- ---X ----- --------------------- - - N- -A - -
----------------
ZAMBIA
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------N - - -N A- - -
---------------- --- --- --- ----- --------------------- - - - - - -
518 DITEJllll REPORTIBG
11.2(a) The interim report should include a full balance sheet

(ie. in the same format as the annual report)

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X BCRA (L) NA

AUSTRALIA X COMPANIES ACT (L) NA
BELGIUM X N A
BRAZIL X CVM Inst 9 (L) N N A
CHILE X NG 3&6 (L) N A
COLOMBIA NA
--- ---
X
DENMARK X NA
FINLAND X N A
FRANCE X N A
GERMANY X NA
HONG KONG X HKSE (S) NA
INDONESIA X N A
IRELAND X N A
ITALY X N NA
JAPAN X N A
MALAYSIA X N A
MEXICO X NCS (L) NA
NEW ZEALAND
--- ---
X N A
PHILIPPINES X APB 21 (P) NA
PORTUGAL
--- ---
SOUTH AFRICA
--- --- X
X
N A
N A
SPAIN X RD (L) NA
SWITZERLAND X BANKING LAW (L) NA
THAILAND X N A
UNITED STATES X N A
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X N A
DITERIM R.EPOR.TIBG 519
11.2(b) The interim report should include a full income statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DE F
ARGENTINA X BCRA (L) N A

AUSTRALIA X COMPANIES ACT (L) N A
BELGIUM X N A
BRAZIL X CVM Inst 9 (L) N NA
COLOMBIA X N A
DENMARK X NA
FINLAND X NA
FRANCE X NA
GERMANY X NA
INDONESIA X NA
IRELAND X N A
ITALY X N A
JAPAN X NA
MALAYSIA X NA
MEXICO X NCS (L) NA
NEW ZEALAND X NA
PORTUGAL X N A
SOUTH AFRICA X N A
SPAIN X NA
SWITZERLAND X N A
THAILAND X N A
UNITED STATES X NA
URUGUAY X N A
ZAMBIA X NA
ZIMBABWE X N A
520 IBTER.Df B.EPO.RTIHG
11.2(c) The interim report should include a full funds statement

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X N A
BELGIUM X N A
BRAZIL X COBAN (L) N N A
COLOMBIA X NA
DENMARK X NA
FINLAND X NA
FRANCE X NA
GERMANY X NA
HONG KONG X HKSE (S) N A
INDONESIA X N A
IRELAND X NA
ITALY X N NA
JAPAN X NA
MALAYSIA X N A
MEXICO X NCS (L) N A
NEW ZEALAND X N A

--- ---
N A
PORTUGAL X
--- ---
N A
SOUTH AFRICA X
---
N A
SPAIN
--- X
---
N A
SWITZERLAND
--- X
---
N A
THAILAND
--- X N A
UNITED STATES X N A
URUGUAY X N A
ZAMBIA X NA
ZIMBABWE X
--- ---
N A
lll'rER.IH R.EPOR.TIBG 521
11.2(d) The interim report should include an abridged balance sheet

PRACTICE
j{
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF

BELGIUM X N A
BRAZIL X N A
CHILE X NG 3&6 (L)
COLOMBIA
--- --- X
N A
N A
DENMARK X N A
FINLAND X NA
FRANCE X COMMERCIAL LAW {L) N A
GERMANY X NA
INDONESIA X N A
IRELAND X NA
ITALY
--- --- X N N A
JAPAN X IFR (L) N A
MALAYSIA X
--- ---
N A
NEW ZEALAND X N A
PORTUGAL X N A
SOUTH AFRICA X N A
SPAIN X N A
SWITZERLAND X NA
UNITED KINGDOM X NA
UNITED STATES X SEC lOQ (L) N A
URUGUAY NA
--- ---
X
ZAMBIA X NA
ZIMBABWE X
--- ---
N A
522 DITER.IM B.EPOR.TIBG
11.2(e) The interim report should include an abridged income

statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F

AUSTRALIA X COMPANIES ACT (L) NA
BELGIUM X NA
COLOMBIA X NA
DENMARK X NA
FINLAND X NA
FRANCE X NA
GERMANY X NA
HONG KONG X NA
INDONESIA X NA
ITALY X N N A
JAPAN X IFR (L) N A
MALAYSIA X N A
PORTUGAL X N A
SOUTH AFRICA X CA 1973 (L) N A
SPAIN X NA
SWITZERLAND X NA
THAILAND X SET (P) N A
UNITED KINGDOM X SELA (S) N A
UNITED STATES X
--- ----- ---------------------
SEC 10Q (L) NA
URUGUAY X N A
ZAMBIA X NA
ZIMBABWE X SE (S) N A
IIITER.DI B.EPOB.TIRG 523
11. 2(f) The interim report should include an abridged funds

statement

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X NA
BELGIUM X NA
BRAZIL X N A
COLOMBIA X NA
DENMARK X NA
FINLAND X NA
FRANCE X NA
GERMANY X NA
INDONESIA X NA
IRELAND X N A
ITALY X N N A
JAPAN X NA
MALAYSIA X NA
MEXICO X NCS (L) NA
NEW ZEALAND X NA
PORTUGAL X N A
SOUTH AFRICA X N A
SPAIN X NA
SWITZERLAND X NA
THAILAND X N A
UNITED KINGDOM X NA
UNITED STATES X SEC lOQ (L) N A
URUGUAY X NA
ZAMBIA X N A
ZIMBABWE X NA
524 IIITER.IM .R.EPOB.TIIIG
11.3(a) The interim report should include turnover for the

period

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d AB CDEF

AUSTRALIA X STOCK EXCHANGE (S) N A
BELGIUM X N A
BRAZIL X CVM Inst 9 (L) NA
COLOMBIA X
DENMARK
--- --- X
N A
N A
FINLAND X N A
FRANCE X COMMERCIAL LAW (L) N A
GERMANY X N A
INDONESIA X N A
IRELAND X SELA (S) NA
ITALY X --- ----- ---------------------
LAW 216 (L)
---
N A
JAPAN X --- ---------------------
IFR (L) N A
MALAYSIA X N A
MEXICO X N A
PORTUGAL
--- --- X
N A
N A
SPAIN X ---------------------
RD (L) N A
SWITZERLAND X NA
THAILAND X NA
UNITED STATES X SEClOQ SX 10-01a3(L) N A
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X N A
lliTER.IM R.EPORTIBG 525
11.3(b) The interim report should include profit before taxation

for the period
CURRENT REQUIREHENTS CURRENT

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
1. n t t
r d t t
d d d d ABCDEF

AUSTRALIA X ---------------------
COHPANIES ACT (L) N A
BELGIUM X --------------------- N A
BRAZIL X ---------------------
CVM Inst 9 ( L) N N A
COLONBIA X N A
DEN NARK X N A
FINLAND X N A
FRANCE X N A
GERMANY X N A
HONG KONG X HKSE ( S) N A

INDONESIA X N A
ITALY X N A
JAPAN X IFR (L) N A
~1ALAYS IA X N A
MEXICO X NCS ( L) N A
NE'H ZEALAND X LR (S) N A
PORTUGAL X N A
SPAIN X N A
S\.JITZERLAND X N A
UNITED KINGDON X SELA (S) NA
UNITED STATES X N A
URUGUAY X N A
ZAN:BIA _:_, _____ ,____________________ _ N A
ZIHBAB~JE X SE (S) N A
--- ----- ---------------------
526 llliER.IH R.EPOR.TIBG
11.3(c) The interim report should include taxation for the period

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d AB CDE F

BELGIUM X NA
BRAZIL X CVM Inst 9 ( L) N N A
CHILE X NG 3&6 (L) NA
COLOMBIA X N A
DENMARK
--- --- X N A
FINLAND X N A
FRANCE X N A
GERMANY X N A
INDONESIA X N A
ITALY X N A
JAPAN X IFR (L) NA
MALAYSIA X N A
PORTUGAL X N A
SPAIN X N A
SWITZERLAND X N A
UNITED STATES SEC10Q SX 10-01a3(L) N A
URUGUAY X N A
ZAMBIA X NA
ZIMBABWE X NA
DITEB.IH B.EPOB.TDIG 527
11.3(d) The interim report should include profit after taxation

for the period

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

----------------
AUSTRALIA X
--- --- COMPANIES ACT (L) NA
----------------
BELGIUM X N A
----------------
BRAZIL X CVM Inst 9 (L) N A
----------------
----------------
----------------
COLOMBIA X N A
----------------
DENMARK X N A
----------------
FINLAND X N A
----------------
FRANCE X N A
----------------
GERMANY X NA
----------------
----------------
INDONESIA X N A
----------------
----------------
ITALY X NA
----------------
JAPAN X IFR (L) N A
----------------
MALAYSIA X N A
----------------
----------------
NEW ZEALAND X
--- --- ---------------------
LR (S) N A
----------------
----------------
PORTUGAL X NA
----------------
----------------
SPAIN X NA
----------------
SWITZERLAND X N A
----------------
----------------
----------------
UNITED STATES X SEC lOQ SX 10-0la3(L) N A
----------------
URUGUAY X N A
----------------
ZAMBIA X NA
----------------
ZIMBABWE X SE (S) N A
----------------
528 DrEB.IH llEPOllTIBG
11.3(e) The interim report should include dividends for the period

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

BELGIUM X N A
BRAZIL X NA
COLOMBIA X N A
DENMARK X NA
FINLAND X N A
FRANCE X N A
GERMANY X N A
INDONESIA X N A
ITALY X N A
JAPAN X SRO (L) N A
MALAYSIA X N A
NEW ZEALAND X
---------------------
LR (S) N A
PHILIPPINES X APB 21 (L) NA
PORTUGAL
--- --- X N A
SPAIN X N A
SWITZERLAND X N A
THAILAND X N A
UNITED STATES X SEC 10Q SX 10-01a3(L) N A
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X N A
DI'IEB.IH R.EPOitTIBG 529
11.3(£) The interim report should include earnings per share

for the period

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA
--- --- X N A
BELGIUM X NA
CHILE X
COLOMBIA
--- --- X
N A
NA
DENMARK X N A
FINLAND X N A
FRANCE X N A
GERMANY X N A
INDONESIA X N A
ITALY X NA
JAPAN X
MALAYSIA
--- --- X
N A
N A
NEW ZEALAND X N A
PORTUGAL X N A
SPAIN X NA
SWITZERLAND X NA
THAILAND X NA
UNITED STATES X SEC 10Q SX 10-01a3(L) NA
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X N A
530 DITEB.IH B.EPOB.TIHG
11.3(g) The interim report should include comparative figures
for the corresponding previous period

PRACTICE
R
e
c p N p
R 0 e 0e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDE F
ARGENTINA X N A
BELGIUM X N A
BRAZIL X CVM Inst 9 (L) N A
CHILE X NA
COLOMBIA X NA
DENMARK X NA
FINLAND
--- --- X
--- ---
N A
FRANCE X NA
GERMANY
--- --- X N A
HONG KONG
--- --- X NA
INDONESIA X NA
ITALY X NA
JAPAN X SRO (L) NA
MALAYSIA X N A
MEXICO X NCS (L) NA
NEW ZEALAND X
--- --- ----- ---------------------
LR (S) N A
PORTUGAL X N A
SPAIN X NA
SWITZERLAND X NA
THAILAND X SET (L) NA
UNITED KINGDOM X
--- --- ----- ---------------------
SELA (L) N A
UNITED STATES X SEC lOQ SX 10-0la3(L) N A
URUGUAY X NA
ZAMBIA X NA
ZIMBABWE X SE (S) NA
:nr.rER.IM REPORTDrG 531
11.3{h) The interim report should contain inflation-adjusted

information

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF

AUSTRALIA X N A
BELGIUM
BRAZIL
--- --- X N A
CHANNEL ISLANDS
--- --- X
X
N A
N A
CHILE X TB 3&13 (P) N A
COLOMBIA X N A
DENMARK X N A
FINLAND
--- --- X NA
FRANC!!: X NA
GERMANY X N A
HONG KONG X NA
INDONESIA X NA
IRELAND X N A
ITALY X N A
JAPAN X NA
MALAYSIA X N A
NEW ZEALAND X N A
PHILIPPINES X NA
PORTUGAL X
--- ---
N A
SOUTH AFRICA X CA 1973 (L)
--- ---
N A
SPAIN X
--- ---
N A
SWITZERLAND X
--- ---
N A
THAILAND X NA
UNITED STATES X NA
URUGUAY X NA
ZAMBIA X NA
ZIMBABWE X N A
532 D'IER.IK B.EPOB.TIBG
11.4(a) The interim report should be produced quarterly

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

AUSTRALIA X
--------------------- N A
BELGIUM X --------------------- N A
BRAZIL X ---------------------
CVM Inst 9 (L) N NA
CHILE X NG 3&6 (P) N A
COLOMBIA X N A
DENMARK X N A
FINLAND X N A
FRANCE X COMMERCIAL LAW (L) N N A
GERMANY X N A
HONG KONG X N A
INDONESIA X N A
IRELAND X N A
ITALY X N A
JAPAN X N A
MALAYSIA X N A
NEW ZEALAND X NA
PORTUGAL X N A
SOUTH AFRICA X N A
SPAIN X RD (L) N A
SWITZERLAND X N N A
UNITED STATES X SEC RULE 13a-13 (L) NA
URUGUAY X N A
ZAMBIA
--- --- X N A
ZIMBABWE X N A
DTER.Df REPO:RTIBG 533
11.4(b) The interim report should be produced half-yearly

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
ABc DEF
ARGENTINA X BCRA (L) NA

----------------
AUSTRALIA X
--- --- ---------------------
COMPANIES ACT (L) NA
----------------
BELGIUM X --------------------- NA
----------------
BRAZIL X ---------------------
CVM Inst 9 (L) NA
----------------
----------------
CHILE X ---------------------
NG 3&6 (P) NA
----------------
COLOMBIA X --------------------- NA
----------------
DENMARK X ---------------------
STOCK EXCHANGE (S) NA
----------------
FINLAND X --------------------- NA
----------------
FRANCE X ---------------------
COMMERCIAL LAW (L) N NA
----------------
GERMANY X --------------------- NA
----------------
HONG KONG X ---------------------
HKSE (S) NA
----------------
INDONESIA X --------------------- NA
----------------
IRELAND X ---------------------
SELA (S) NA
----------------
ITALY X ---------------------
LAW 216 (L) NA
----------------
JAPAN X ---------------------
SEL (L) NA
----------------
MALAYSIA X --------------------- NA
----------------
MEXICO X ---------------------
NCS (L) NA
----------------
NEW ZEALAND X ---------------------
LR (S) NA
----------------
PHILIPPINES X ---------------------
APB 21 (P) NA
----------------
PORTUGAL
--- --- X --------------------- NA
----------------
SOUTH AFRICA
--- --- ---------------------
CA 1973 (L) NA
----------------
SPAIN X ---------------------
RD (L) NA
----------------
SWITZERLAND X ---------------------N NA
----------------
THAILAND X --------------------- NA
----------------
UNITED KINGDOM X ---------------------
SELA (S) NA
----------------
UNITED STATES
--- --- X --------------------- NA
----------------
URUGUAY
--- --- X --------------------- NA
----------------
ZAMBIA
--- --- X --------------------- NA
----------------
ZIMBABWE X ---------------------
SE (S) NA
---------------- ---------------------
534 IBTERIH R.EPO:RTIBG
11.5 The interim report should be published within a specified

time limit after the end of the period reported on
- -
PRACTICE
H.
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DEF
- - - -- - - - - - -
ARGENTINA X NA
----------------
AUSTRALIA
---
X
--- --- ----- ---------------------
COMPANIES ACT (L) N
- - -N -A - -
----------------
BELGIUM
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
----------------
BRAZIL
---
X
--- --- ----- ---------------------
COBAN (L) N
- - -N -A - -
----------------
CHANNEL ISLANDS
--- --- ---
X
----- --------------------- - - -N -A - -
----------------
CHILE
--- --- ---
X
----- --------------------- - - -N A- - -
----------------
COLOMBIA
--- --- ---
X
----- --------------------- - - N- A- - -
----------------
DENMARK
--- --- ---
X
----- --------------------- - - -N -A - -
----------------
FINLAND
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
FRANCE X
--- --- ----- ---------------------
COMMERCIAL LAW (L) N
- - -N -A - -
---------------- ---
GERMANY
--- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
----------------
HONG KONG
---
X
--- --- ----- ---------------------
HKSE (S) N
- - -N -A - -
----------------
INDONESIA
--- --- ---
X
----- --------------------- - - -N -A - -
----------------
IRELAND
---
X
--- --- ----- ---------------------
SELA (S) N
- - -N -A - -
----------------
ITALY
---
X
--- --- ----- ---------------------
LAW 216 (L) N
- - -N -A - -
---------------- ---
JAPAN X
--- --- ----- ---------------------
SEL (L) N
- - -N -A - -
----------------
MALAYSIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
----------------
MEXICO
---
X
--- --- ----- ---------------------
NCS (L) N
- - -N -A - -
----------------
NEW ZEALAND
---
X
--- --- ----- ---------------------
LR (S) N
- - -N -A - -
----------------
PHILIPPINES
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
----------------
PORTUGAL
--- --- --- ----- --------------------- - - -N -A - -
N/A N/A N/A N/A
----------------
SOUTH AFRICA
---
X
--- --- ----- ---------------------
CA 1973 (L) N
- - -N -A - -
----------------
SPAIN
---
X
--- --- ----- ---------------------
RD (L) N
- - -N -A - -
----------------
SWITZERLAND
---
X
--- ----- ---------------------
BANKING LAW (L) N
- - -N -A - -
---------------- ---
THAILAND X
--- --- ----- ---------------------
SET (L) N
- - -N A- - -
----------------
UNITED KINGDOM
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N A- - -
----------------
UNITED STATES
---
X
--- --- ----- ---------------------
SEC lOQ A-2 (L) N
- - -N A- - -
----------------
URUGUAY
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - -N -A - -
----------------
ZAMBIA
--- --- --- -----
N/A N/A N/A N/A ---------------------
- - N- A- - -
----------------
ZIMBABWE
---
X
--- --- ----- ---------------------
SE (S) N
- - N- -A - -
---------------- --- --- --- ----- --------------------- - - - - - -
Ill'lEB.IH R.EPOR.TIBG 535
11.6 The interim report should be reported on by the auditors

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF

BELGIUM X NA
BRAZIL X Res 607 (P) N N A
CHILE X NA
COLOMBIA X NA
DENMARK X NA
FINLAND X NA
FRANCE X N A
GERMANY X N A
HONG KONG X NA
INDONESIA X NA
IRELAND X NA
ITALY X N A
JAPAN X SEL (L) N A
MALAYSIA X NA
MEXICO X N A
NEW ZEALAND X N A
PHILIPPINES X N A
PORTUGAL
--- --- X NA
SOUTH AFRICA
--- --- NA
--- ---
X
SPAIN X NA
SWITZERLAND X N A
UNITED KINGDOM X NA
UNITED STATES X N A
URUGUAY X NA
ZAMBIA X NA
ZIMBABWE X NA
536 DITER.IM R.EPOR.TIBG
11.7(a) The interim report should include a forecast of the

year's sales

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X NA
BELGIUM X NA
BRAZIL X N A
CHILE X N A
COLOMBIA X NA
DENMARK X N A
FINLAND X N A
FRANCE X N A
GERMANY X N A
HONG KONG X NA
INDONESIA X NA
IRELAND X NA
ITALY X N A
JAPAN X SRO (L) N A
MALAYSIA X N A
MEXICO X NA
NEW ZEALAND X N A
PHILIPPINES X N A
PORTUGAL X N A
SOUTH AFRICA X N A
SPAIN X RD (L) NA
SWITZERLAND X NA
THAILAND X N A
UNITED STATES X N A
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X NA
Dl'rER.IJI IEPOR.TDG 537
11.7(b) The interim report should include a forecast of the

year's pre-tax profits

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB c DE F
ARGENTINA X N A
AUSTRALIA X N A
BELGIUM X NA
BRAZIL X N A
CHILE X N A
COLOMBIA X N A
DENMARK X NA
FINLAND X N A
FRANCE X N A
GERMANY X N A
HONG KONG X N A
INDONESIA X N A
IRELAND X N A
ITALY X NA
JAPAN X N A
MALAYSIA X N A
MEXICO X N A
NEW ZEALAND X N A
PHILIPPINES X N A
PORTUGAL X NA
SOUTH AFRICA X N A
SPAIN X RD (L) N A
SWITZERLAND X N A
THAILAND X NA
UNITED STATES X NA
URUGUAY X
ZAMBIA
--- --- X
N A
N A
ZIMBABWE X N A
538 IRTER.IM B.EPOB.TIBG
11. 7(c) The interim report snould include a forecast of the

year's dividends

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X NA
BELGIUM X NA
BRAZIL X NA
CHILE X N A
COLOMBIA X N A
DENMARK X N A
FINLAND X N A
FRANCE X NA
GERMANY X N A
HONG KONG X N A
INDONESIA X N A
IRELAND X N A
ITALY X NA
JAPAN X NA
MALAYSIA X N A
MEXICO X N A
NEW ZEALAND X N A
PHILIPPINES X N A
PORTUGAL X N A
SOUTH AFRICA X N A
SPAIN X NA
SWITZERLAND X NA
THAILAND X N A
UNITED KINGDOM X NA
UNITED STATES X NA
URUGUAY X NA
ZAMBIA X N A
ZIMBABWE X N A
DrrER.IM REPOilTDIG 539
11. 7(d) The interim report should include a forecast of the

year's earnings per share

PRACTICE
R
e
c p N p
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X NA
AUSTRALIA X N A
BELGIUM X N A
BRAZIL X NA
CHILE X NA
COLOMBIA X NA
DENMARK X N A
FINLAND X N A
FRANCE X NA
GERMANY X NA
HONG KONG X NA
INDONESIA X N A
IRELAND X NA
ITALY X N A
JAPAN X N A
MALAYSIA X NA
MEXICO X N A
NEW ZEALAND X N A
PHILIPPINES X N A
PORTUGAL X N A
SOUTH AFRICA X N A
SPAIN X N A
SWITZERLAND X NA
THAILAND X N A
UNITED STATES X N A
URUGUAY X N A
ZAMBIA X N A
ZIMBABWE X N A
540 HTER.lll llEPORTDIG
11.8 The underlying assumptions for such forcasts should be

disclosed

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
d d d d ABCDEF
ARGENTINA X N A
AUSTRALIA X N A
BELGIUM X N A
BRAZIL X NA
CHILE X NA
COLOMBIA X NA
DENMARK X N A
FINLAND X N'A
FRANCE
--- --- X NA
GERMANY X N A
HONG KONG X N A
INDONESIA X N A
IRELAND X N A
ITALY X N A
JAPAN X SRO (L) N A
MALAYSIA X N A
MEXICO X NA
NEW ZEALAND X N A
PHILIPPINES X N A
PORTUGAL X N A
SOUTH AFRICA X N A
SPAIN X RD (L) N A
SWITZERLAND X N A
THAILAND X N A
UNITED STATES
--- X SOP 75-4 (P) N A
________ _____ _....._
--------------~-
URUGUAY ..... X
----- -------- ---------------
.,.~_ N A ,
____ ....,.______ _____
' ' '
ZAMBIA X NA
--- ---
X ....... __ ----------------------
. .
__ _____________________ _
ZIMBllWE
--------~---.;.._.
---. --- ....;.
.;. N A
lll'lERIH llEPOB.TIRG 541
11.9 Such forecasts should be audited

PRACTICE
R
e
c p Np
R 0 e 0 e
e m r t r
q m m m
u e i i
i n t t
r d t t
COUNTRY e
d
e
d
e
d
e
d
SOURCE -----------
AB CDEF
ARGENTINA X N A
AUSTRALIA X N A
BELGIUM X
BRAZIL
--- --- X
N A
--- ---
N A
CHILE
--- --- X N A
COLOMBIA X N A
DENMARK X N A
FINLAND X NA
FRANCE X
--- --- X
N A
GERMANY
HONG KONG
--- --- X
N A
NA
INDONESIA X NA
IRELAND X NA
ITALY X NA
I_ ,...
JAPAN X NA
MALAYSIA X NA
MEXICO X NA
NEW ZEALAND X NA
PHILIPPINES X NA
PORTUGAL X NA
SOUTH AFRICA
--- --- X NA
SPAIN X NA
SWITZERLAND X NA
THAILAND X NA
UNITED KINGDOM X NA
UNITED STATES
--- --- X NA
U:RUGUAY X
--------------------·- NA
---- --·---------·----------
ZAMBIA
___________
------~-~-------
ZIMBABWE ......._..........
_, _ ---
X
... X
-----
--------------~·-------
~-------------~------
NA
NA
542 DI'IEitiM llEPOilTIBG
NOTES
Question 11.1
ARGENTINA: Public Companies and Banks only
AUSTRALIA: "Borrowing Corporations" only
BRAZIL: Publicly traded companies must file quarterly

financial statements with C.V.M.
CHANNEL ISLANDS : Banking and financial corporations only
CHILE: Public corporations only
DENMARK: Stock Exchange listed companies only
FRANCE: Only applies to quoted companies with a total

balance sheet exceeding FFlOm
IRELAND: Stock Exchange listed companies only
ITALY: Stock Exchange listed companies only
JAPAN: Only entities filing annual securities reports

for which fiscal year is 12 months
MEXICO: Public Limited Companies only
PHILIPPINES: Only corporations whose shares are publicly

held
SOUTH AFRICA: Public companies only
SPAIN: Only for companies with shares quoted as

"calificadas" in the stock exchange
SWITZERLAND: Banks only
THAILAND: Stock Exchange listed companies only
UK: Stock Exchange listed companies only
US: Stock Exchange listed companies only
ZIMBABWE: Stock Exchange listed companies only

543
Question 11.2
BRAZIL: 1. 11.2 (a) & (b) required half yearly

2. 11.2 (c) required for financial
institutions only
3. 11.2 (e) required quarterly
ITALY: Italian law requires the publication of a

report on the company's state of affairs,
particularly as regards production, sales and
sales commitments, expenses and revenues.
Question 11.3
BRAZIL: 1. 11.3(b) (c) & (f) required half year only
Question 11.4(a)
BRAZIL: Only abridged income statement quarterly, full

balance sheet and income statement required in
the second quarter.
FRANCE: Only turnover needs to be disclosed in the

quarterly report.
SWITZERLAND: Quarterly balance sheets need only be

disclosed by banks with total assets equal to
or exceeding SWFR 200m.
Question 11.4(b)
FRANCE: Turnover and balance sheets need to be

disclosed in half-yearly reports.
SWITZERLAND: Half-yearly balance sheets need only be

disclosed by banks with total assets between
SWFR 50m and SWFR 200m.
Question 11.5- Timing of Publication
AUSTRALIA: 4 months
BRAZIL: Financial Institutions only - 30 days.
FRANCE: 45 days for quarterly reports (turnover); 4

months for half-yearly reports (balance
sheets).
HONG KONG: 3 months

544
IRELAND: 5 months (Actual rule specifies that interim

report must be published within 6 months of
the date convening the company's annual
general meeting. This enables an Irish
company, in certain circumstances, to publish
its interim report a maximum of 5 months after
the end of the interim period).
ITALY: 3 months
JAPAN: 3 months
MEXICO: 45 days
NEW ZEALAND: 4 months

SOUTH AFRICA: 3 months
SPAIN: 2 months
SWITZERLAND: 6 weeks
THAILAND: 45 days
US: 45 days
ZIMBABWE: 3 months
Question 11.6
BRAZIL: Half yearly only (Financial Institutions only

as Bank of Brazil Requirement).
AP P END I X I
ABBR.EVIATIORS USBD IR THE SUJtVEY

547
ABBR.EVIATIOBS USED lB THE SURVEY
GENERAL: AIC Asociacion Interamericana de Contabilidad

lAS International Accounting Standard
ARGENTINA: BCRA Banco Central de la Republica Argentina

(Central Bank of Argentina)
CECYT Centro de Estudios Cientificos y Tecnicos
(the accounting board of the professional
accounting council for the provinces)
CNV Comision National de Valores (Securities
and Exchange Commission)
GAAP Generally Accepted Accounting Principles
(issued by the predecessor of ITCP)
IGJ Inspeccion General de Justicia
(government agency)
ITCP Institute Tecnico de Contadores Publicos
(the accounting board of the professional
accounting council for Buenos Aires)
REC Recommendation (if CECYT or ITCP)
RES Resolution (if CECYT or ITCP)
AUSTRALIA: AAS Australian Accounting Standard

CA Companies Act
SE Stock Exchange
BELGIUM: RD Royal Decree of October 8, 1976
BRAZIL: CFC Conselho Federal de Contabilidade

COB AN Codificucao Bancaria
CVM Comissao de Valores Mobiliarios
IAIB Institute de Auditores Independantes do
Brasil
INST lnstrucao
LAW 6.404 Company Law- December 15, 1976
PO Parecer de Orientacao
RES Resolucao
RIR Regulamento do Imposto de Renda
CHANNEL ISLANDS : PDL Protection of Depositors Legislation

SJAP Statement of Jersey Accounting Practice
SSAP Statements of Standard Accounting
Practice
CHILE: c Circular (SVS)

NG Normativas Generales (SVS)
TB Technical Bulletin
SVS Superintendencia de Valores y Seguros
COLOMBIA: GAAP Generally Accepted Accounting Principles

INA Institute of National Accounts
NIPA National Institute of Public Accountants
sc Superintendancy of Corporations
SE Stock Exchange
TA Tax Authorities
548
DENMARK: APPA 1981 Annual Accounts Presentation Act,

Law 284 of June lOth 1981
CA 1973 Companies Act 1973
FSR Foreningen Af Statsautoriserede Revisorer
FINLAND: AL Accounting Law, 1974

CA Companies Act, 1980
REC Recommendations of the professional
accounting body
FRANCE: CL Commercial Law

CNCC Compagnie Nationale des Commissaires Aux
Comptes
CNC Conseil National de la Comptabilite
COB Commission des Operations de Bourse
COMM CODE (or CC) Commercial Code
OECCA Ordre des Experts Comptables et Comptable
Agrees
PCG Plan Comptable General
GERMANY: GOB Grundsatze Ordnungsmassiger Buchfuhrung

("Best practice" as an interpretation of
the meaning behind the law)
HFA Hauptfachausschuss (recommendation of the
professional accounting body)
ITR Income Tax Requirements
SCL Stock Corporation Law
HONG KONG: CO Companies Ordinance

HKSE Hong Kong Stock Exchange
SSAP Statement of Standard Accounting Practice
of the Hong Kong Society of Accountants
(HKSA)
INDONESIA: BAPEPAM Regulations which only apply to listed

companies (also abbreviated to BAPE)
DMF Decree of the Minister of Finance
PAl Public Accountants of Indonesia (issue
principles) .
TD Tax Decree
IRELAND: CA 1963 Companies Act, 1963

M Technical Statement
SELA Stock Exchange Listing Agreement
SSAP Statements of Standard Accounting
Practice
ITALY: CON SOB Commissione Nazionale per Le Societa e La

Borsa
LAW 576 Law of December 1975
LAW 216 Law of June 1974
PC Principio Cantabile
PR Principia di Revisione
549
JAPAN: BADC Business Accounting Deliberation Council

BAP Business Accounting Principles
CAS Standards of Cost Accounting
CFP Principles for Preparation of
Consolidated Financial Statements
CFR Regulations concerning Consolidated
Financial Statements and related
interpretive rules
COMM CODE (or CC) Commercial Code
FCTS Accounting Standard for Foreign Currency
Transactions
FSR Financial Statements Regulations and
related interpretive rules
IFR Regulations on Interim Financial
Statements and related interpretive rules
JICPA Japanese Institute of Certified Public
Accountants
SEL Securities and Exchange Law
SRO Ministerial Ordinance concerning
Registration, etc. for Offering or Sale
of Securities
MALAYSIA: CIC Capital Issues Committee of the Central

Bank of ~lalaysia
MACPA Malaysian Association of Certified Public
Accountants
MACPAS Malaysian Association of Certified Public
Accountants Statement
MCA Malaysian Companies Act, 1965
MEXICO: B Bulletin
IMCP Mexican Institute of Public Accountants
NCS National Commission of Securities
NEW ZEALAND: CA Companies Act 1955

CCA Current Cost Accounting Standard
LR Listing Requirement of New Zealand stock
exchange
SSAP Statement of Standard Accounting Practice
TPA Technical Practice Aid
PHILIPPINES: APB Accounting Principles Bulletin of the

PI CPA
BIR REV REG Revenue Regulation of the Bureau on
Internal Revenue
NIRC National Internal Revenue Code
PI CPA Philippines Institute of Certified Public
Accountants
PD Presidential Decree
RA Republic Act
SEC Securities and Exchange Commission
SP Special Bulletin of PIPCA
PORTUGAL: DL Decree Law No. 47/77

550
SOUTH AFRICA: CA Companies Act

G Guideline
s Statement
SE Stock Exchange
SPAIN: cc Codigo Comercial (Commercial Code)

LSA Ley de sociendades Anonimos (Companies
Act 1951) ·
PGC Plan General de Contabilidad
PGC/S General Accounting Plan adapted for
specific sector(s)
RD Real Decreto 1847/1980 of September 5,
1980
SWITZ ERLAND: CL Corporation Law

IH Institute Handbook
THAILAND: CCC Commercial and Civil Code

ED FAS Exposure Draft of Financial Accounting
Standards
ICAAT Institute of Certified Accountants and
Auditors of Thailand
MR Ministerial Regulation
SET Securities Exchange of Thailand
UK: CA Companies Act

DOl Department of Industry
SELA Stock Exchange Listing Agreement
SSAP Statement sof St andardAccount ing
Practice
US: AI CPA American Institute of Certified Public

Accountants
APBO Accounting Principles Board Opinion
APBS Accounting Principles Board Statement
ARB Accounting Research Bulletin
FASB Financial Accounting Statements Board
INT Interpretation
SAS Statement on Auditing Standards
SEC Securities and Exchange Commission
SFAC Statement of Financial Accounting
Concepts
SOP Statement of Position (AICPA)
URUGUAY: DN Decree No. 827/976
ZIMBABWE: CA Companies Act

RM Zimbabwe Accounting Standard
SE Stock Exchange
A P P E ND I X II
:mTERBATIONAL GLOSSARY OF ACCOUIITIBG TERMS

IBTEJ.UlATIOBAL GLOSSARY OF ACCOUNTIIIG TERMS 553
HOW TO USE THE GLOSSARY
The aim of this glossary is to focus on the key accounting terms

that are used in financial statements. Readers should therefore
have little difficulty in locating the words and phrases they are
seeking.
The glossary starts with the UK terminology and provides the

equivalent in other countries. The terms are shown in
alphabetical order (based on current UK usage) along the top of
the page. The countries are listed in alphabetical order down
the left-hand side of the page, with the relevant translation
shown directly underneath the UK term, thus completing the
matrix. As us terminology may differ from that used in the UK,
we also show the US terms at the top of the page in the line
following the UK terms.
Therefore, if the :equivalent of a UK term in another country is

required (eg. the French for 'Accounts'), the UK term may be
found at the top of the page and the French translation
('Comptes') below.
554 IBTERRATIONAL GLOSSARY OF ACCOUNTING TERMS
UNITED KINGDOM ACCOUNTANCY ACCOUNTING POLICY ACCOUNTS
UNITED STATES ACCOUNTANCY or ACCOUNTING POLICY FINANCIAL STATEMENTS

ACCOUNTING
ARGENTINA CONTABILIDAD CRITERIO CONTABLE ESTADOS CONTABLES

AUSTRALIA ACCOUNTANCY ACCOUNTING POLICY ACCOUNTS
BELGIUM COMPTABILITE" '

RR;LES COMPTES ANNUELS
-
D'EvALUATION
,
BRAZIL CONTABILIDADE PRATICA CONTABIL DEMONSTRA~OES
FINANCEIRAS (or
CONTABEIS)
CHANNEL ISLANDS ACCOUNTANCY ACCOUNTING POLICY FINANCIAL STATEMENTS
CHILE CONTAB IL IDAD POLITICA CONTABLE EST ADOS FINANCIEROS
COLOMBIA CONTABLE or POLITICA CONTABLE ESTADOS FINANCIEROS
CONTABILIDAD
DENMARK REGNSKABSVAESEN REGNSKABS- REGNSKAB

PRINCIPPER (ARSREGNSKAB)
FINLAND LASKENTA LASKENTAPERIAATE TILINPAATOS

,
FRANCE COMPTABILITE" METHODES COMPTES
COMPTABLES
GERMANY RECHNUNGSLEGUNG BILANZ POL IT IK JAHRESABSCHLUSS

or BUCHFUHRUNG
HONG KONG ACCOUNTANCY ACCOUNTING POLICY ACCOUNTS or
FINANCIAL STATEMENTS
INDONESIA AKUNTANS I or KEBIJAKAN AKUNTING LAPORAN KEUANGAN
AKUNTING or KEBIJAKSANAAN
AKUNTANSI
IRELAND ACCOUNTANCY ACCOUNTING POLICY ACCOUNTS
ITALY RAGIONERIA POLITICA CONTABILE BILANCIO
IBTERNATIOHAL GLOSSARY OF ACCOUBTIBG TERMS 555
UNITED KINGDOM ACCOUNTANCY ACCOUNTING POLICY ACCOUNTS
UNITED STATES ACCOUNTANCY or ACCOUNTING POLICY FINANCIAL STATEMENTS

ACCOUNTING
JAPAN KAlKE I KAlKE! HOSHIN ZAIMU SHOHYO
MALAYSIA ACCOUNTANCY ACCOUNTING POLICY ACCOUNTS
MEXICO CONTABILIDAD POLITICA CONTABLE ESTADOS FINANCIEROS
NEW ZEALAND ACCOUNTANCY ACCOUNTING POLICY ACCOUNTS or

PH ILL !PINES ACCOUNTING ACCOUNTING POLICY FINANCIAL STATEMENTS

...
PORTUGAL CONTABILIDADE CRITERIOS
CONTABILISTICOS CONT AS
SOUTH AFRICA ACCOUNTING ACCOUNTING POLICY FINANCIAL STATEMENTS
SPAIN CONTABILIDAD POLITICA CONTABLE ESTADOS FINANCIEROS

or CUENTAS
SWITZERLAND RECHNUNGSWESEN or BILANZIERUNGS- BILANZ UND ERFOLGS-

BUCHFUEHRUNG METHODEN RECHNUNG or JAHRES-
RECHNUNG
THAILAND ACCOUNTING ACCOUNTING POLICY FINANCIAL STATEMENTS
URUGUAY CONTABILIDAD POLITICA CONTABLE ESTADOS CONTABLES
ZAMBIA ACCOUNTANCY ACCOUNTING POLICY ACCOUNTS or

ZIMBABWE ACCOUNTANCY ACCOUNTING POLICY FINANCIAL STATEMENTS

556 IJfrERHATIONAL GLOSSARY OF ACCOUNTIBG TERMS
UNITED KINGDOM ACCRUALS AGGREGATE ASSET

DEPRECIATION
UNITED STATES ACCRUED EXPENSES ACCUMULATED DEP- ASSET

RECIATION AND
AMORTIZATION
ARGENTINA PROVISIONES AMORTIZACIONES ACTIVO

ACUMULADAS
AUSTRALIA ACCRUALS or ACCUMULATED DEP- ASSET

ACCRUED EXPENSES RECIATION AND
AMORTIZATION
....
-
BELGIUM CHARGES A PAYER AMORTISSEMENTS ACT IF
.....
BRAZIL PROVISOES DEPRECIA~OE~ ATIVO
E AMORT IZAgOES
ACUMULADAS
CHANNEL ISLANDS ACCRUALS AGGREGATE DEP- ASSET

RECIATION
CHILE PROVISIONES DEPRECIACION ACTIVO

ACUMULADA or
AMORTIZACION
ACUMULADA
COLOMBIA GASTOS ACUMULADOS AMORTIZACION Y ACTIVO

DEPRECIACION
ACUMULADA
DENMARK SKYLDIGE AKKUMULEREDE AKTIV

OMKOSTNINGER AFSKRIVNINGER
FINLAND SIIRTOVELAT KUMULOIDUT POISTOT OMAISUUS

....
FRANCE CHARGES A PAYER AMORTISSEMENTS
, ACT IF
CUMULES
GERMANY
..
RUCKSTELLUNGEN AUFGELAUFENE AKTIVPOSTEN
ABSCHREIBUNG
HONG KONG ACCRUALS or ACCUMULATED DEP- ASSET
AMORTIZATION
INDONESIA BIAYA YANG MASIH AKUMULASI AKTIVA or

HARUS DIBAYAR PENYUSUTAN HARTA
IRELAND ACCRUALS AGGREGATE DEP- ASSET

RECIATION
ITALY RATE! E RISCONTI FONDO AMMORTAMENTO ATTIVITA '

PASSIVI E DEPERIMENTO
DfrERHATIORAL GLOSSARY OF ACCOUNTIRG TERMS 557
UNITED KINGDOM ACCRUALS AGGREGATE DEP- ASSET

RECIATION
------------------------------------------------------------------------------
UNITED STATES ACCRUED EXPENSES ACCUMULATED DEP- ASSET
RECIATION AND
AMORTIZATION
------------------------------------------------------------------------------
JAPAN MIBARAI HIYO GENKA SHOKYAKU SHISAN
RUIKEIGAKU
MALAYSIA ACCRUALS or ACCUMULATED DEP- ASSET
AMORTIZATION
~reo PASIVOS ACUMULADOS DEPRECIACION Y ACTIVO

or GASTOS AMORTIZACION
ACUMULADOS ACUMULADAS
NEW ZEALAND ACCRUALS or ACCUMULATED DEP- ASSET

ACCRUED EXPENSES RECIATION
PHILIPPINES ACCRUED EXPENSES ACCUMULATED DEP- ASSET

RECIATION AND
AMORTIZATION
.._
PORTUGAL ENCARGOS A AMORTIZA~O!,S E ACTIVO
LIQUIDAR REINTEGRA~OES
ACUMULADAS
SOUTH AFRICA ACCRUALS or ACCUMULATED DEP- ASSET

AMORTIZATION
SPAIN PROVIS I ONES or AMORTIZACION ACTIVO

PAGOS DIFERIDOS ACUMULADA
SWITZ ERLAND TRANSITORISCHE AUFGELAUFENE AKTIVEN

PASSIVEN ABSCHREIBUNG
THAILAND ACCRUED EXPENSES ACCUMULATED DEP- ASSET
RECIATION AND
AMORTIZACION
URUGUAY GASTOS ACUMULADOS AMORTIZACION ACTIVO

ACUMULADA
ZAMBIA ACCRUALS ACCUMULATED DEP- ASSET

RECIATION AND
AMORTIZATION
ZIMBABWE ACCRUALS AGGREGATE DEP- ASSET

RECIATION
558 DITERNATIONAL GLOSSARY OF ACCOUNTIBG TERMS
UNITED KINGDOM ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET

-----------------------
UNITED STATES
----------------------------------------------
ASSOCIATED COMPANY AUDIT REPORT
---------
BALANCE SHEET or
STATEMENT OF
FINANCIAL POSITION
ARGENTINA -
COMPANIA ASOCIADA DICTAMEN DEL
AUDITOR
BALANCE
AUSTRALIA ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET

BELGIUM ENTREPR IS E LIEE RAPPORT DU BILAN
COMMISSA IRE
BRAZIL COMPANHIA COLIGADA PARECER DOS BALAN~O PATRIMONIAL
AUDIT ORES
-
CHANNEL ISLANDS ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET
CHILE -
COMPANIA ASOCIADA OPINION DE LOS
AUDIT ORES
BALANCE GENERAL
...._
COLOMBIA COMPANIA ASOCIADA INFORME DE BALANCE GENERAL
AUDITORIA
DENMARK TILSLUTTET REVISIONSPATEGNING BALANCE
(ASSOCIERET)
SELSKAB
FINLAND ASAKKUUSYHTIO
.. TILINTARKASTUS TASE
KERTOMUS
FRANCE SOCIETE ASSOCIEE RAPPORT DES BILAN
REVISEURS
COMPTABLES
GERMANY ASSOZ I IERTES PRUFUNGSBERICHT BILANZ
UNTERNEHMEN or
VERBUNDENES
UNTERNEHMEN
HONG KONG ASSOCIATED COMPANY REPORT OF THE BALANCE SHEET
AUDITORS or
AUDITOR'S REPORT
INDONESIA PERUSAHAAN LAPORAN AKUNTAN NERACA AFILIASI
AFILIASI
IRELAND ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET
ITALY ' COLLEGATA
SOCIETA RELAZIONE SULLA STATO PATRIMONIALE
REVISIONE
DITERBATIOBAL GLOSSARY OF ACCOUNTIIIG TERMS 559
UNITED KINGDOM ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET

UNITED STATES ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET or
STATEMENT OF
FINANCIAL POSITION
JAPAN KANREN GAISHA KANSA HOKOKUSHO TAISHAKU TAISHOHYO
MALAYSIA ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET
MEXICO COMPANIA ASOCIADA DICTAMEN DE BALANCE GENERAL or

AUDITORIA ESTADO DE SITUACION
FINANCIERA
NEW ZEALAND ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET or
STATEMENT OF
FINANCIAL POSITION
PHILIPPINES ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET or

STATEMENT OF
FINANCIAL POSITION
PORTUGAL ASSOCIADA PARECER DOS BALANCO

AUDIT ORES
SOUTH AFRICA ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET
SPAIN -
COMPANIA DEL GRUPO INFORME DE
AUDITORIA
BALANCE DE SITUACION
SWITZERLAND KONZERNGESELL- BERICHT DER BILANZ

SCHAFT or KONTROLLST ELLE
BETEILIGUNGS-
GESELLSCHAFT
THAILAND RELATED COMPANY AUDIT REPORT BALANCE SHEET
URUGUAY EMPRESA VINCULADA DICTAMEN DE BALANCE GENERAL or

AUDITORIA ESTADO DE SITUACION
PATRIMONIAL
ZAMBIA ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET
ZIMBABWE ASSOCIATED COMPANY AUDIT REPORT BALANCE SHEET

560 IBTERNATIOHAL GLOSSARY OF ACCOUNTING TERMS
UNITED KINGDOM BANK AND CASH COMPANY CONTINGENT

LIABILITIES
UNITED STATES CASH CORPORATION CONTINGENT
LIABILITIES or
CONTINGENCIES
ARGENTINA DISPONIBILIDADES SOCIEDAD ANONIMA CONTINGENCIAS

AUSTRALIA CASH AT BANK or COMPANY CONTINGENT
CASH ON HAND LIABILITIES
, , ,
BELGIUM VALEURS SOCIETE DETTES EVENTUELLES
DISPONIBLES
BRAZIL CAIXA E BANCOS COMPANHIA PASSIVOS
CONT lNG ENT ES
CHANNEL ISLANDS BANK AND CASH COMPANY CONTINGENT
LlABILITIES
CHILE CAJA Y BANCOS SOCIEDAD CONTINGENCIAS
COLOMBIA CAJ A Y BAN COS COMPANIA

...
PASIVOS
CONTINGENTES
DENMARK LIKVIDE MIDLER AKTIESELSKAB or EVENTUALFOR-
ANPARTSSELSKAB PLIGTELSER
FINLAND KASSA JA
..
YHTIO VASTUUSITOUMUKSET
PANKK ISAAMIS ET
FRANCE CAISSE ET BANQUES
......
SOCIETE
~
PASSIFS EVENTUELS
GERMANY KASSE UND BANK- GESELLSCHAFT or EVENTUALVERB IND
GUTHABEN JURISTISCHE LICHKEITEN
PERSON
HONG KONG BANK BALANCES COMPANY CONTINGENT
AND CASH LIABILITIES
INDONESIA KAS DAN BANK PERUSAHAAN or HUTANG BERSYARAT
PERSEROAN
IRELAND BANK AND CASH COMPANY CONTINGENT
LIABILITIES
ITALY CASSA E BANCHE SOC lETA - RISCH I
DITKRBATIONAL GLOSSARY OF ACCOUBTIBG TERMS 561
UNITED KINGDOM BANK AND CASH COMPANY CONTINGENT

LIABILITIES
UNITED STATES CASH CORPORATION CONTINGENT
LIABILITIES or
CONTINGENCIES
JAPAN GENKIN YOKIN KAISHA GUHATSU SAIMU

MALAYSIA CASH AND BANK COMPANY CONTINGENT
BALANCES LIABILITIES
MEXICO EFECTIVO -
COMPANIA CONTINGENCIAS
NEW ZEALAND BANK AND CASH COMPANY CONTINGENT
LIABILITIES
PHILIPPINES CASH or CASH ON COMPANY or CONTINGENCIES
HAND AND IN BANKS CORPORATION
PORTUGAL DISPONIBILIDADES EMPRESA PASSIVOS
CONTINGENT ES
SOUTH AFRICA BANK AND CASH COMPANY CONTINGENT

LIABILITIES or
CONTINGENCIES
SPAIN TESORERIA or -
COMPANIA or CONTINGENCIAS or
CAJA Y BANCOS SOCIEDAD PASIVOS CONTINGENTES
SWITZERLAND BANKGUTHABEN or GESELLSCHAFT EVENTUALVERPFLICHT-

KASSA UNGEN
THAILAND CASH ON HAND AND COMPANY CONTINGENT

AT BANK LIABILITIES
URUGUAY DISPONIBILIDADES SOCIEDAD ANONIMA CONTINGENCIAS

ZAMBIA BANK AND CASH COMPANY CONTINGENT
LIABILITIES
ZIMBABWE BANK AND CASH COMPANY CONTINGENT

LIABILITIES
562 DITERNATIONAL GLOSSARY OF ACCOUNTDIG TERMS
UNITED KINGDOM CORPORATION TAX CREDITORS CURRENT ASSETS
UNITED STATES INCOME TAX ACCOUNTS PAYABLE CURRENT ASSETS
ARGENTINA IMPUESTO A LAS CUENTAS A PAGAR ACTIVOS CORRIENTES

GANANCIAS
AUSTRALIA INCOME TAXES or CREDITORS or CURRENT ASSETS

COMPANY TAX ACCOUNTS PAYABLE
BELGIUM IMPST LES socrfTts DETTES ACTIFS CIRCULANTS
BRAZIL IMPOSTO DE RENDA CONTAS A PAGAR ATIVO CIRCULANTE
CHANNEL ISLANDS REGISTRATION TAX CREDITORS CURRENT ASSETS

CHILE IMPUESTOS A LA CUENTAS POR PAGAR ACTIVO CIRCULANTE
RENT A
COLOMBIA IMPUESTO DE RENTA CUENTAS POR PAGAR ACTIVOS CORRIENTES
DENMARK SELSKABSSKAT KREDITORER OMSAETNINGSAKTIVER
FINLAND VALITTOMAT VEROT OSTOVELAT not in use

1\
FRANCE IMPOT, SUR
., LES FOURNISSEURS ACTIF COURANT
SOCIETES
GERMANY KORPERSCHAFT- VERBINDLICHKEITEN UMLAUFVERMOGEN or

EINKOMMENSTEUER or KREDITOREN KURZFRIST IG ES
UMLAUFVERMOGEN
HONG KONG PROFITS TAX CREDITORS CURRENT ASSETS
INDONESIA PAJAK PERSEROAN HUTANG USAHA AKTIVA LANCAR
IRELAND CORPORATION TAX CREDITORS CURRENT ASSETS

ITALY IMPOSTE SUI CREDITOR! ATTIVITA A BREVE
REDDITI
IRTERNATIONAL GLOSSARY OF ACCOUNTING TERMS 563
UNITED KINGDOM CORPORATION TAX CREDITORS CURRENT ASSETS

UNITED STATES INCOME TAX ACCOUNTS PAYABLE CURRENT ASSETS
JAPAN HOJIN SHOTOKUZEI SHIHARAI SAIMU RWnO SHISAN
MALAYSIA INCOME TAX CREDITORS CURRENT ASSETS
MEXICO IMPUESTO SOBRE CUENTAS POR PAGAR ACTIVO CIRCULANTE

LA RENTA
NEW ZEALAND INCOME TAX CREDITORS or CURRENT ASSETS

ACCOUNTS PAYABLE
PHILIPPINES INCOME TAXES ACCOUNTS PAYABLE CURRENT ASSETS
PORTUGAL IMPOST OS SOBRE CONTAS A PAGAR REALIZAVEL A CURTO

LUCROS PRAZO
SOUTH AFRICA TAXATION CREDITORS or CURRENT ASSETS

ACCOUNTS PAYABLE
SPAIN IMPUESTO SOBRE CUENTAS A PAGAR OR ACTIVO CIRCULANTE

LA RENTE DE DEUDAS
SOCIEDADES
SWITZERLAND ERTRAGSSTEUER KREDITOREN UMLAUFSVERMOEGEN
THAILAND INCOME TAX ACCOUNTS PAYABLE CURRENT ASSETS
URUGUAY IMPUESTO A LA CUENTAS A PAGAR ACTIVO CORRIENTE

RENT A
ZAMBIA INCOME TAXES CREDITORS CURRENT ASSETS
ZIMBABWE INCOME TAXES CREDITORS CURRENT ASSETS

564 ll!ITERRATIOHAL GLOSSARY OF ACCOUNTING TERliS
UNITED KINGDOM CURRENT DEBTORS DEFERRED TAXATION

LIABILITIES
UNITED STATES CURRENT ACCOUNTS DEFERRED INCOME TAXES

LIABILITIES RECEIVABLE
ARGENTINA; PASIVOS CORRIENTES CUENTAS POR IMPUESTOS DIFERIDOS

COBRAR
AUSTRALIA CURRENT DEBTORS or PROVISION FOR

LIABILITIES ACCOUNTS DEFERRED INCOME TAX
RECEIVABLE
,...
BELGIUM EXIGIBLE A' COURT CREANCES IMPOTS DIFFERES
TERME
BRAZIL PASSIVO CONTAS A IMPOSTO DE RENDA

CIRCULANTE RECEBER DIFERIDO
CHANNEL ISLANDS CURRENT DEBTORS DEFERRED TAXATION

LIABILITIES
CHILE PASIVO CIRCULANTE CUENTAS POR IMPUESTOS DIFERIDOS

COBRAR
COLOMBIA PASIVOS CORRIENTES CUENTAS POR COBRAR IMPUESTO DE RENTA

DIFERIDO
DENMARK KORTFRISTET GAELD DEBITORER UDSKUDT SKAT
FINLAND LYHYTAIKAIS ET MYYNTISAAMISET PIILEVA VEROVELKA

VELAT
..... , /\ ,,
FRANCE DETTES A COURT DEBITEURS IMPOTS DIFFERES
TERME
GERMANY KURZFRISTIGE FORDERUNGEN LATENTE STEUERN or

VERBINDLICHKEITEN LATENTE EINKOMMENSTEUER
HONG KONG CURRENT DEBTORS DEFERRED TAXATION

LIABILITIES
INDONESIA KEWAJIBAN PIUTANG PAJAK PERSEROAN

LAN CAR US AHA YANG DITANGGUHKAN
IRELAND CURRENT DEBTORS DEFERRED TAXATION

LIABILITIES
ITALY PASSIVITl A BREVE DEBITORI IMPOSTE DIFFERITE

DrrER.NATIONAL GLOSSARY OF ACCOUNTIBG TERHS 565
UNITED KINGDOM CURRENT DEBTORS DEFERRED TAXATION

LIABILITIES
UNITED STATES CURRENT ACCOUNTS DEFERRED INCOME TAXES

JAPAN --
RYUDO FUSAI UKETORI SAIKEN KURINOBE ZEIKEN
MALAYSIA CURRENT DEBTORS DEFERRED TAXATION

LIABILITIES
MEXICO PASIVO CIRCULANTE CUENTAS POR IMPUESTO SOBRE LA

COBRAR RENTA DIFERIDO
NEW ZEALAND CURRENT DEBTORS or DEFERRED TAXATION

LIABILITIES ACCOUNTS
RECEIVABLE
PHILIPPINES CURRENT ACCOUNTS DEFERRED INCOME TAXES

PORTUGAL EXIGIVEL A CURTO CLIENTES IMPOSTOS DIFERIDOS

PRAZO
SOUTH AFRICA CURRENT DEBTORS or DEFERRED TAXATION
LIABILITIES ACCOUNTS
RECEIVABLE
SPAIN PASIVO (or DEUDAS) CUENTAS A IMPUESTOS DIFERIDOS

A CORTO PLAZO COBRAR or
DEUDORES
SWITZERLAND KURZFRISTIGE DEBITOREN LATENTE STEUERVERP-

VERBINDLICHKEITEN FLICHTUNG
THAILAND CURRENT ACCOUNTS DEFERRED INCOME TAX

URUGUAY PASIVO CORRIENTE CREDIT OS or IMPUESTOS DIFERIDOS

DEUDORES
ZAMBIA CURRENT DEBTORS DEFERRED TAXATION

LIABILITIES
ZIMBABWE CURRENT DEBTORS DEFERRED TAXATION

LIABILITIES
566 DITERHATIOHAL GLOSSARY OF ACCOUNTIRG TERMS
UNITED KINGDOM DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS

SHARE
UNITED STATES DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS
SHARE
ARGENTINA DIVIDENDOS GANANCIA POR RESULTADOS

ACCION EXTRADORDINARIOS
AUSTRALIA DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS
SHARE
,.
BELGIUM DIVIDENDE or RESULT AT PAR PRODUITS ET CHARGES
REMUNERATION DO ACTION EXCEPTIONNELS
CAPITAL
BRAZIL DIVIDENDOS .-
LUCRO POR ACAO !TENS EXTRAORDINAIUOS
CHANNEL ISLANDS DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS

SHARE
CHILE DIVIDENDOS UTILIDAD POR ITEMES
ACCION EXTRAORDINARIOS
COLOMBIA DIVIDENDOS GANANCIA POR PARTIDAS
ACCION EXTRAORDINARIAS
DENMARK UDBYTTE INDFJENING PR. EKSTRAORDINAERE
AKTIE POSTER
FINLAND OSINKO VOITTO OSAKETTA
.........
YLIMAARAISET TUOTOT
KOHTI JA KULUT
FRANCE DIVIDENDES
...
RESULT AT PAR ELiMENTS
ACTION EXCEPTIONNELS
GERMANY DIVIDENDE GEWINN PRO AKTIE AUSSERORDENTLICHE
or AKTIENRENDITE POSTEN
HONG KONG DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS
SHARE
INDONESIA DIVIDEN HAS lL PER SAHAM POS-POS ISTIMEWA
IRELAND DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS
SHARE
ITALY DIVIDENDI UTILE PER AZ lONE COMPONENT!
STRAORDINARI
DITERHATIONAL GLOSSARY OF ACCOUNTING TERMS 567
UNITED KINGDOM DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS

SHARE
UNITED STATES DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS
SHARE
JAPAN HAITOKIN HITOKABU ATARI TOKUBETSU SONEKI

RIEKI KOMOKU
MALAYSIA DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS
SHARE
MEXICO DIVIDENDOS UTILIDAD POR PARTIDAS
NEW ZEALAND DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS
SHARE
PHILIPPINES DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS

SHARE
PORTUGAL DIVIDENDOS LUCROS POR -

AC~AO RESULTADOS,.
EXTRAORDINARIOS
SOUTH AFRICA DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS

SHARE
SPAIN DIVIDENDOS BENEFICIO POR PARTIDAS

SWITZERLAND DIVIDEND EN GEWINN PRO AKTIE AUSSERORDENTLICHE

POSTEN
THAILAND DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS
SHARE
URUGUAY DIVIDENDOS not in use RESULTADOS
EXTRAORDINARIOS
ZAMBIA DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS

SHARE
ZIMBABWE DIVIDENDS EARNINGS PER EXTRAORDINARY ITEMS

SHARE or UNUSUAL ITEMS
568 llfrERNATIONAL GLOSSARY OF ACCOUNTilfG TEKHS
UNITED KINGDOM FIXED ASSETS GOODWILL GROUP ACCOUNTS
UNITED STATES FIXED ASSETS or GOODWILL CONSOLIDATED

PROPERTY, PLANT FINANCIAL STATEMENTS
AND EQUIPMENT
ARGENTINA BIENES DE USO LLAVE DE NEGOCIO ESTADOS CONTABLES

CONSOLIDADOS
AUSTRALIA FIXED ASSETS GOODWILL GROUP ACCOUNTS or

CONSOLIDATED
.,
BELGIUM IMMOBILISATIONS GOODWILL COMPTES CONSOLIDES
CORPORELLES
BRAZIL IMOBILIZADO ""
AGIO -
DEMONSTRA~OES
FINANCEIRAS (or
CONTABEIS)
CONSOL IDADAS
CHANNEL ISLANDS FIXED ASSETS GOODWILL CONSOL !DATED

CHILE ACTIVO FIJO MAYOR VALOR ESTADOS FINANCIEROS

PAGADO POR
,. CON SOL IDADOS
INVERSION
COLOMBIA ACTIVOS FIJOS RENOMBRE ESTADOS FINANCIEROS

or PROPIEDADES COMERCIAL or CONSOLIDADOS
PLANTA Y EQUIPO GOODWILL
DENMARK ANLAEGSAKT IVER GOODWILL KONCERN-REGNSKAB

• • •• lot
FINLAND KAYTTOOMAISUUS GOODWILL or KONSERNI-TILINPAATOS

LIIKEARVO
,
FRANCE IMMOB IL !SAT IONS FONDS DE COMMERCE COMPTES CONSOLIDES
GERMANY SACHANLAGEVER 'GOODWILL' or

MOGEN
" GESCHAFTSWERT or KONZ ERNABSCHLUSS
FIRMENWERT
HONG KONG FIXED ASSETS GOODWILL GROUP ACCOUNTS or
CONSOLIDATED FINANCIAL
STATEMENTS
INDONESIA AKTIVA TETAP GOODWILL LAPORAN KEUANGAN

KONSOL IDAS I
IRELAND FIXED ASSETS GOODWILL GROUP ACCOUNTS
ITALY IMMOBILIZZAZIONI AVVIAMENTO BILANCIO

TECNICHE CONSOLIDATOR
IIITERHATIORAL GLOSSARY OF ACCOUifiiBG TERMS 569
UNITED KINGDOM FIXED ASSETS GOODWILL GROUP ACCOUNTS
UNITED STATES FIXED ASSETS or GOODWILL CONS OL !DATED

AND EQUIPMENT
JAPAN KOTEI SHISAN NOREN RENKETSU ZAIMUSHOHYO
MALAYSIA FIXED ASSETS GOODWILL CONSOLIDATED ACCOUNTS
MEXICO INMUEBLES CREDITO MERCANTIL ESTADOS FINANCIEROS

MAQUINARIA Y CONSOLIDADOS
EQUIPO or ACTIVO
FIJO
NEW ZEALAND FIXED ASSETS GOODWILL GROUP ACCOUNTS or

CONSOLIDATED
PHILIPPINES FIXED ASSETS or GOODWILL CONSOLIDATED

PROPERTY AND FINANCIAL STATEMENTS
EQUIPMENT
PORTUGAL -
!MOB ~L IZA~OES AVIAMENTO CONTAS CONSOLIDADAS
CORPOREAS
SOUTH AFRICA FIXED ASSETS PREMIUM ON GROUP ANNUAL

ACQUISITION OF FINANCIAL STATEMENTS
SUBS !DIARY or
GOODWILL
SPAIN ACTIVO FIJO or FONDO DE COMERCIO ESTADOS FINANCIEROS

INMOVILIZADO CONSOLIDADOS or
MATERIAL CUENTAS CONSOLIDADAS
SWITZERLAND
..
ANLAGEVERMOGEN GOODWILL KONZERNBILANZ or
KONSOLIDIERTE BILANZ
UND ERFOLGSRECHNUNG
THAILAND FIXED ASSETS or GOODWILL CONSOLIDATED

AND EQUIPMENT
URUGUAY ACTIVO FIJO or LLAVE ESTADOS CONTABLES

BIENES DE USO CONSOLIDADOS
ZAMBIA FIXED ASSETS GOODWILL GROUP ACCOUNTS or

CONS OL IDAT ED
ZIMBABWE FIXED ASSETS GOODWILL GROUP ACCOUNTS

570 IIITERNATIOHAL GLOSSARY OF ACCOUNTIBG TERMS
UNITED KINGDOM HOLDING COMPANY INVESTMENTS LAND AND BUILDINGS
UNITED STATES HOLDING COMPANY or INVESTMENTS PROPERTY

PARENT CORPORATION
ARGENTINA CASA MATRIZ INVERS !ONES TERRENOS Y EDIFICIOS
AUSTRALIA PARENT COMPANY INVESTMENTS LAND AND BUILDINGS

~ , ...
BELGIUM SOCIETE MERE IMMOB IL ...!SAT IONS TERRAINS ET
FINANCIERES CONSTRUCTIONS
BRAZIL COMPANHIA INVESTIMENTOS TERRENOS E EDIFICIOS

CONTROLADORA
CHANNEL ISLANDS HOLDING COMPANY INVESTMENTS LAND AND BUILDINGS
CHILE "
COMPANIA MATRIZ INVERS I ONES TERRENOS Y EDIFICIOS
COLOMBIA CASA MATRIZ INVERSIONES PROPIEDADES
DENMARK HOLDINGS ELSKAB INVESTERINGER FAST EJENDOM

or MODERSELSKAB
FINLAND EMOYHTIO
.. INVESTIONNIT MAA-ALVEET JA
RAKENNUKSET
FRANCE
... ,
SOCIETE-MERE
... INVESTISSEMENTS TERRAINS ET
CONSTRUCT IONS
GERMANY MUTTER-GESELL- FINANZANLAGE- GRUNSDTUCKE (BEBAUT

SCHAFT or OBER- VERMOGEN MIT GESCHAFTS-'
GESELLSCIDT FABRIK-, UND ANDEREN
BAUTEN)
HONG KONG HOLDING COMPANY INVESTMENTS LAND AND BUILDINGS
INDONESIA PERUSAHAAN INDUK PENYERTAAN or TANAH DAN BANGUNAN

INVESTASI
IRELAND HOLDING COMPANY INVESTMENTS LAND AND BUILDINGS
ITALY SOC I ETA

... IMMOBILIZZAZIONI TERRENI E FABBRICATI
CONTROLLANTE FINANZIARIE
IBTERNATIONAL GLOSSARY OF ACCOUNTING TERMS 571
UNITED KINGDOM HOLDING COMPANY INVESTMENTS LAND AND BUILDINGS
UNITED STATES HOLDING COMPANY or INVESTMENTS PROPERTY

PARENT CORPORATION
JAPAN OYAGAISHA TOSHI YUKEI KOTEI SHISAN
MALAYSIA HOLDING COMPANY INVESTMENTS LAND AND BUILDINGS
-
MEXICO
...
COMPANIA MATRIZ or INVERSIONES TERRENO Y EDIFICIOS
COMPANIA TENEDORA
NEW ZEALAND HOLDING COMPANY INVESTMENTS LAND AND BUILDINGS

or PARENT COMPANY
PHILIPPINES PARENT CORPORATION INVESTMENTS LAND AND BUILDINGS

or PROPERTY
PORTUGAL EMPRESA MAE ·-

PARTipPACOES TERRENOS E EDIFICIOS
FINANCEIRAS
SOUTH AFRICA HOLDING COMPANY INVESTMENTS LAND AND BUILDINGS
SPAIN COMPANIA MATRIZ INVERSIONES or TERRENOS Y EDIFICIOS

INMOVIL IZADOS
FINANCIEROS
SWITZERLAND MUTTERGESELL- BETEILIGUNGEN IMMOBILIEN

SCHAFT or
'HOLDING'
THAILAND PARENT COMPANY INVESTMENTS PROPERTY
URUGUAY SOCIEDAD INVERSIONES INMUEBLES

CONTROLANTE
ZAMBIA HOLDING COMPANY INVESTMENTS LAND AND BUILDINGS
ZIMBABWE HOLDING COMPANY INVESTMENTS LAND AND BUILDINGS

572 IBTERNATIORAL GLOSSARY OF ACCOUNTilfG TERMS
UNITED KINGDOM LIABILITY LONG-TERM LOANS LONG-TERM WORK-IN -

PROGRESS
UNITED STATES LIABILITY LONG-TERM DEBT LONG-TERM WORK-IN-

PROGRESS or LONG-TERM
CONTRACTS
ARGENTINA PASIVO PASIVO A LARGO CONTRATOS A LARGO

PLAZO PLAZO
AUSTRALIA LIABILITY LONG-TERM LONG-TERM CONTRACTS

BORROWINGS
BELGIUM PASSIF DETTES A' PLUS TRAVAUX EN COURS

D'UN AN A LONG TERME
BRAZIL PASSIVO FINANCIAMENTOS CONTRATOS A LONGO
A LONGO PRAZO PRAZO
CHANNEL ISLANDS LIABILITY LONG-TERM LOANS LONG-TERM WORK-IN-

PROGRESS
CHILE PASIVO or DEUDA PASIVO (or DEUDA) CONTRATOS A LARGO
A LARGO PLAZO PLAZO
COLOMBIA PASIVO PAS IVO A LARGO CONTRATOS A LARGO
PLAZO PLAZO
DENMARK PASSIV or LANGFRISTET IGANGVAERENDE

FORPLIGTELSE or GAELD ARBEJDER
GAELD
FINLAND VELAT
..
PITKAAIKAISET
..
PITKAAIKAISET
LA I NAT TYOURAKAT
FRANCE PASSIF ' LONG
DETTES A TRAVAUX EN COURS
TERME (SUR CONTRATS ALONG
TERME)
GERMANY VERBINDLICHKEIT or LANGFRISTIGE LANGFRISTIGE VERTRAGE

PASSIVPOSTEN or FORDERUNG or AUFTRAGE IN ARBEIT
PASSIVUM
HONG KONG LIABILITY LONG-TERM LOANS LONG-TERM CONTRACT

WORK-IN-PROGRESS
INDONESIA KEWAJ IBAN or KE.WAJIBAN JANGKA KONTRAK J ANGKA
HUTANG PANJANG PANJANG
IRELAND LIABILITY LONG-TERM LOANS LONG-TERM WORK-IN-
PROGRESS
ITALY PASSIVITl DEBIT! A LUNGO LAVORI IN CORSO DI
TERMINE ESECUZIONE
IIITERRATIOHAL GLOSSARY OF ACCOUlfriBG 'IERMS 573
UNITED KINGDOM LIABILITY LONG-TERM LOANS LONG-TERM WORK-IN-

PROGRESS
UNITED STATES LIABILITY LONG-TERM DEBT LONG-TERM WORK-IN-
PROGRESS or LONG-
TERM CONTRACTS
JAPAN FUSAI KOTEI FUSAI CHOKI UKEOI KEIYAKU

MALAYSIA LIABILITY LONG-TERM LOANS LONG-TERM WORK-IN-
PROGRESS
MEXICO PASIVO DEUDA A LARGO CONTRATOS A LARGO
PLAZO PLAZO
NEW ZEALAND LIABILITY LONG-TERM LOANS LONG-TERM WORK-IN-
or TERM LOANS PROGRESS
PHILIPPINES LIABILITY LONG-TERM DEBT LONG-TERM CONTRACTS
PORTUGAL PASSIVO EXIGIVEL A LONGO TRABALHOS EM CURSO
PRAZO DE LONGA DURA~AO
SOUTH AFRICA LIABILITY LONG-TERM LOANS LONG-TERM CONTRACTS
SPAIN PASIVO PRESTAMOS (or TRABAJOS (or
DEUDAS) A LARGO CONTRATOS) EN CURSO
PLAZO A LARGO PLAZO
SWITZERLAND SCHULD or LANGFRISTIGE ANGEFANGENE ARBEITEN
VERPFLICHTUNG or SCHULD
PASSIVEN
THAILAND LIABILITY LONG-TERM LOANS LONG-TERM CONTRACTS
URUGUAY PASIVO PAS IVO A LARGO not in use
PLAZO
ZAMBIA LIABILITY LONG-TERM LOANS LONG-TERM WORK-IN-
PROGRESS
ZIMBABWE LIABILITY · LONG-TERM LOANS LONG-TERM CONTRACTS
574 IBTKRBATIONAL GLOSSARY OF ACCOUNTING TERMS
UNITED KINGDOM NOTES TO ACCOUNTS ORDINARY SHARES PLANT AND MACHINERY

UNITED STATES NOTES TO FINAN- COMMON STOCK PLANT AND EQUIPMENT
CIAL STATEMENTS
ARGENTINA NOTAS A LOS ACCIONES PLANTA Y EQUIPO

ESTADOS CONTABLES ORDINARIAS
AUSTRALIA NOTES TO ACCOUNTS ORDINARY SHARES PLANT AND MACHINERY
BELGIUM ANNEXE ACTIONS (or PARTS) INSTALLATIONS,
ORDINAIRES MACHINES ET
OUTILLAGE
BRAZIL NOTAS EXPLICATIVAS A~(}Es ORDINARIAS MAQUINAS E
AS DEMONSTRA~OES EQUIPAMENTOS
FINANCEIRAS
CHANNEL ISLANDS NOTES TO FINAN- ORDINARY SHARES PLANT AND MACHINERY

CIAL STATEMENTS
CHILE NOTAS A LOS ACCIONES COMUNES EQUIPO

EST ADOS
FINANCIEROS
COLOMBIA NOTAS A LOS ACCIONES COMUNES EQUIPO or

EST ADOS MAQUINARIA
FINANCIEROS Y EQUIPO
DENMARK NOTER TIL (ORDINAER) DRIFTSMIDLER
REGNSKABET AKTIEKAPITAL
FINLAND LIITETIEDOT
... "'
OSAKEPAAOMA KONEET JA KALUSTO
FRANCE
,
ANNEXE ACTIONS MATERIEL ET OUTILLAGE
ORDINAIRES
GERMANY not in use AKTIEN or GESCHAFTSAUSSTATTUNG
ANTEILE or or BETRIEBS- UND
ANTEILSSCHEINE GESCHAFTSAUSSTATTUNG
HONG KONG NOTES TO ACCOUNTS ORDINARY SHARES PLANT AND MACHINERY
INDONESIA CATATAN ATAS SAHAM BIASA PERALATAN PABRIK
LAPORAN KEUANGAN DAN MESIN
IRELAND NOTES TO ACCOUNTS ORDINARY SHARES PLANT AND MACHINERY
ITALY NOTE AL BILANCIO AZIONI ORDINARIE MACCHINARIO E
IMPlANT!
DITERNATIONAL GLOSSARY OF ACCOUBTIRG TERMS 575
UNITED KINGDOM NOTES TO ACCOUNTS ORDINARY SHARES PLANT AND MACHINERY
UNITED STATES NOTES TO FINAN- COMMON STOCK PLANT AND EQUIPMENT

CIAL STATEMENTS
JAPAN CHUKI SHIHONKIN KIKA! SOCHI
MALAYSIA NOTES TO ACCOUNTS ORDINARY SHARES PLANT AND MACHINERY

MEXICO NOTAS A LOS ACCIONES ORDI- MAQUINARIA Y EQUIPO
ESTADOS NARIAS or ACCIONES
FINANCIEROS COMUNES
NEW ZEALAND NOTES TO ACCOUNTS ORDINARY SHARES PLANT AND MACHINERY
or NOTES TO
PHILIPPINES NOTES TO FINAN- COMMON STOCK PLANT AND MACHINERY

CIAL STATEMENTS or EQUIPMENT
PORTUGAL ANEXOS AO
.../
AC~OES "'
MAQUINAS E
BALAN~O E .._ ORDINARIAS EQUIPAMENTOS
DEMONSTRA~AO DE
RESULTADOS
SOUTH AFRICA NOTES TO FINAN- ORDINARY SHARES PLANT AND MACHINERY
CIAL STATEMENTS or EQUIPMENT
SPAIN NOTAS A LOS CAPITAL SOCIAL MAQUINARIA,

EST ADOS INSTALACIONES Y
FINANCIEROS UTILLAJE
or ANEXO
SWITZERLAND ANMERKUNGEN ZUR AKTIENKAPITAL BETRIEBSANLAGEN or

JAHRESRECHNUNG MASCHINEN UND EIN-
RICHTUNGEN
THAILAND NOTES TO FINAN- COMMON SHARES MACHINERY AND

CIAL STATEMENTS EQUIPMENT
URUGUAY NOTAS A LOS ACCIONES COMUNES MAQUINARIA Y

ESTADOS CONTABLES or ACCIONES EQUIPOS
ORDINARIAS
ZAMBIA NOTES TO ACCOUNTS ORDINARY SHARES PLANT AND MACHINERY
or NOTES TO FINAN-
CIAL STATEMENTS
ZIMBABWE NOTES TO FINAN- ORDINARY SHARES PLANT AND MACHINERY

CIAL STATEMENTS
576 DrrERHATIONAL GLOSSARY OF ACCOUNTING TERMS
UNITED KINGDOM PREPAYMENTS PROFIT AND LOSS RESEARCH AND

ACCOUNT DEVELOPMENT
UNITED STATES PREPAID EXPENSES INCOME STATEMENT RESEARCH AND
DEVELOPMENT
------------------------------------------------------------------------------
ARGENTINA GASTOS ADELANTADOS ESTADO DE INVESTIGATION Y
RESULTADOS DESARROLLO
AUSTRALIA PREPAYMENTS or PROFIT AND LOSS RESEARCH AND
PREPAID EXPENSES ACCOUNT DEVELOPMENT
BAHAMAS PREPAYMENTS or PROFIT AND LOSS RESEARCH AND
PREPAID EXPENSES ACCOUNT or INCOME DEVELOPMENT
STATEMENT
~
BELGIUM CHARGES PAYEES COMPTE
, DE RECHERCHE ET
D'AVANCE RESULTATS DEVELOPPEMENT
BRAZIL DESPESAS DEMONSTRACAO DO DESPESAS COM
ANTECIPADAS RESULTADO PESQUISAS
CHANNEL ISLANDS PREPAYMENTS PROFIT AND LOSS RESEARCH AND
ACCOUNT DEVELOPMENT
CHILE GASTOS ESTADO DE INVESTIGACION Y
ANTICIPADOS RESULTADOS DESARROLLO
COLOMBIA GASTOS PAGADOS ESTADO DE PERDI- INVESTIGACION Y
POR ANTICIPADO DAS Y GANANCIAS DESARROLLO
DENMARK FORUDBETALTE RESULTATOPGORELSE FORSKNINGS-AG
OMKOSTN INGER UDVIKLINGSOMKOST-
NINGER
FINLAND SIRR TO SAAMISET TULOSLASKELMA TUTKIMUS JA
KEHITYS
, ,
FRANCE CHARGES PAYEES COMPTE DE RESULTAT RECHERCHE ET DEV-
D'AVANCE or COMPTE ELOPPEMENT
D' EXPLO !TAT ION
,~
GENERALE or COMPTE
DE PERTES ET
PROFITS
GERMANY VORAUSBEZAHLTE GEWINN UND FORSCHUNG UND ENT-
AUFWENGUNGEN or VERLUSTRECHNUNG WICKLUNG
AKTIVE RECHNUNGS-
ABGRENZUNGS POSTEN
HONG KONG PREPAYMENTS or PROFIT AND LOSS RESEARCH AND
INDONESIA BIAYA DIBAYAR PERHITUNGAN RUG!- PENELITIAN DAN
DIMUKA LABA PENGEMBANGAN
IRELAND PREPAYMENTS PROFIT AND LOSS RESEARCH AND
ACCOUNT DEVELOPMENT
ITALY RATE! E CONTO DEI PROFITT! RICERCA E SVILUPPO
RISCONTI ATTIVI E DELLE PERDITE
DITERNATIONAL GLOSSARY OF ACCOUNTIRG TERMS 577
UNITED KINGDOM PREPAYMENTS PROFIT AND LOSS RESEARCH AND

ACCOUNT DEVELOPMENT
UNITED STATES PREPAID EXPENSES INCOME STATEMENT RESEARCH AND

DEVELOPMENT
JAPAN MAEBARAI HIYO SON-El<I KEISANSHO KENKYU KAIHATSU
MALAYSIA PREPAYMENTS or PROFIT AND LOSS RESEARCH AND

MEXICO GASTOS ANTICIPADOS ESTADO DE INVESTIGACION Y

RESULTADOS DESARROLLO
NEW ZEALAND PREPAYMENTS or PROFIT AND LOSS RESEARCH AND

PREPAID EXPENSES ACCOUNT or INCOME DEVELOPMENT
STATEMENT
PHTI.IPPINES PREPAID EXPENSES INCOME STATEMENT RESEARCH AND

DEVELOPMENT
PORTUGAL DESPESAS DEMONSTRAgAo DE PESQUISA E

ANTECIPADAS RESULTADOS DESENVOLVIMENTO
SOUTH AFRICA PREPAYMENTS or INCOME STATEMENT RESEARCH AND

PREPAID EXPENSES DEVELOPMENT
SPAIN PAGOS ANTICIPADOS CUENTA DE PERDIDAS INVESTIGACION Y

Y GANANCIAS DESARROLLO
SWITZERLAND VORAUSZAHLUNGEN ERFOLGSRECHNUNG FORSCHUNG UND

ENTWICKLUNG
THAILAND PREPAID EXPENSES INCOME STATEMENT RESEARCH AND

DEVELOPMENT
URUGUAY PAGOS ADELANTADOS ESTADO DE GASTOS DE

RESULTADOS INVESTIGACION
ZAMBIA PREPAYMENTS PROFIT AND LOSS RESEARCH AND

ACCOUNT DEVELOPMENT
ZIMBABWE PREPAYMENTS INCOME STATEMENT RESEARCH AND

DEVELOPMENT
578 lliTERHATIONAL GLOSSARY OF ACCOUNTING TERMS
UNITED KINGDOM RESERVES SHAREHOLDERS' SHARE PREMIUM ACCOUNT

FUNDS
UNITED STATES RETAINED EARNINGS SHAREHOLDERS' PAID-IN SURPLUS

EQUITY
ARGENTINA RESULTADOS PATRIMONIO NETO PRIMAS DE EMISION

ACUMULADOS
AUSTRALIA RESERVES or SHARE CAPITAL AND SHARE PREMIUM ACCOUNT
-
RETAINED EARNINGS RESERVES
,
-
BELGIUM RESERVES FONDS PROPRES PRIMES D'EMISSION
, ......
BRAZIL LUCROS ACUMULADOS PATRIMONIO LIQUIDO AGIO DE SUBSCRI~AO
CHANNEL ISLANDS RESERVES SHAREHOLDERS' SHARE PREMIUM ACCOUNT

FUNDS
CHILE RESERVAS PATRIMONIO SOBREPRECIO DE

ACCIONES
COLOMBIA UTILIDADES or GAN- PATRIMONIO PAGADO EN EXCESO DEL

ANCIAS RETENIDAS VALOR NOMINAL
DENMARK RESERVER EGENKAPITAL OVERKURS VED EMISSION
FINLAND VOITTOVARAT OMA

....
PAAOMA VARARAHASTO
FRANCE RESERVES SITUATION NETTE PRIME D' EM ISS ION
GERMANY ..
RESERVEN or
RUCKLAGE~ or NICHT
EIGENKAPITAL AGIO or AUFGELD
AUSG ES CHUTT ET ER
GEWINN
HONG KONG RESERVES SHAREHOLDERS' SHARE PREMIUM ACCOUNT

FUNDS
INDONESIA LABA YANG MODAL SENDIRI MODAL DISETOR

DITAHAN
IRELAND RESERVES SHAREHOLDERS' SHARE PREMIUM ACCOUNT

FUNDS
ITALY RISERVE PATRIMONIO NETTO SOVRAPPREZZO DI

EMISSIONE AZIONE
IJITERRATIOHAL GLOSSARY OF ACCOUNTING TERMS 579
UNITED KINGDOM RESERVES SHAREHOLDERS' SHARE PREMIUM ACCOUNT

FUNDS
UNITED STATES RETAINED EARNINGS SHAREHOLDERS' PAID-IN SURPLUS

EQUITY
JAPAN RIEKI JOYOKIN SHIHON SHIHON JOYOKIN
MALAYSIA RESERVES SHAREHOLDERS' SHARE PREMIUM ACCOUNT

FUNDS
MEXICO UTILIDADES CAPITAL CONTABLE SUPERAVIT PAGADO

RETENIDAS or HABER SOCIAL
NEW ZEALAND RESERVES or SHAREHOLDERS' SHARE PREMIUM ACCOUNT

RETAINED EARNINGS FUNDS
PHILIPPINES RETAINED EARNINGS STOCKHOLDERS' PAID-IN SURPLUS
-
EQUITY
PORTUGAL RESULTADOS
ACUMULADOS
SITUA~AO
LIQUIDA
- PREMIO DE EMISSAO -
SOUTH AFRICA RETAINED INCOME SHAREHOLDERS' SHARE PREMIUM ACCOUNT
or DISTRIBUTABLE FUNDS or SHARE-
RESERVES HOLDERS' EQUITY
or SHAREHOLDERS'
INTEREST
SPAIN RESERVAS PATRIMONIO NETO or PRIMA DE EMISION DE

CAPITAL Y RESERVAS ACCIONES
SWITZERLAND GEWINNVORTRAG or EIGENE MITTEL EMISSIONSAGIO

RES ERVEN
THAILAND RETAINED EARNINGS SHAREHOLDERS" PREMIUM ON SHARE

EQUITY CAPITAL
URUGUAY RESULTADOS PATRIMONIO PRIMAS DE EMISION

ACUMULADOS
ZAMBIA RESERVES SHAREHOLDERS' SHARE PREMIUM ACCOUNT

FUNDS
ZIMBABWE RETAINED EARNINGS SHAREHOLDERS' SHARE PREMIUM ACCOUNT

EQUITY
580 IIITERNATIONAL GLOSSARY OF ACCOUNTING TERMS
UNITED KINGDOM STATEMENT OF STOCKS SUBSIDIARY

SOURCE AND
APPLICATION OF
FUNDS
UNITED STATES STATEMENT OF INVENTORIES SUBSIDIARY

CHANGES IN
FINANCIAL
POSITION
ARGENTINA ESTADO DE ORIGEN BIENES DE CAMBIO SUBSIDIARIA

Y APLICACION DE
FONDOS
AUSTRALIA STATEMENT OF STOCKS or SUBSIDIARY
SOURCE AND INVENTORIES
APPLICATION OF
FUNDS or STATE-
MENT OF CHANGES
IN FINANCIAL
POSITION
....
BELGIUM ETAT DES STOCKS FILIALE
RESSOURCES ET
EMPLOIS DE FONDS
or: TABLEAU DE
FINAN CEMENT
.....
BRAZIL DEMONSTRA~AO ESTOQUES COMPANHIA
DAS ORIGENS E CONTROLADA
-
APLICA~OES DE
RECURS OS
CHANNEL ISLANDS STATEMENT OF STOCKS SUBSIDIARY

SOURCE AND
APPLICATION OF
FUNDS
CHILE ESTADO DE CAMBIOS EXISTENCIAS SUBSIDIARIA

EN LA POSICION or INVENTARIOS
FINANCIERA
COLOMBIA ESTADO DE CAMBIOS INVENTARIOS SUBSIDIARIA
EN LA POSICION
FINANCIERA
DENMARK FINANSIERINGS- VARELAGER DATTERSELSKAB
ANALYSE
FINLAND RAHOITUSLASKELMA VAIHTQ-OMAISUUS TYTARYHTIO
FRANCE TABLEAU DE VALEURS FILIALE
FINAN CEMENT D'EXPLOITATION
GERMANY BEWEGUNGSBILANZ,
..
VORRATE or TOCHTERGESELLSCHAFT
or KAPITALFLUSS- VORRATSVERMOGEN or FILIALE
RECHNUNG
HONG KONG STATEMENT OF STOCKS SUBSIDIARY
CHANGES IN
FINANCIAL
POSITION
DITERNATIORAL GLOSSARY OF ACCOUNTIBG TERMS 581

SOURCE AND
APPLICATION OF
FUNDS

CHANGES IN
FINANCIAL
POSITION
INDONESIA IKHTISAR PERSEDIAAN ANAK PERUSAHAAN

PERUBAHAN POSISI
KEUANGAN
IRELAND STATEMENT OF STOCKS SUBSIDIARY
SOURCE AND
APPLICATION OF
FUNDS
ITALY RENDICONTO GIACENZE DI ' CONTROLLATA
SOC I ETA
FINANZIARIO MAGAZZINO
JAPAN ZAISEI JOTAI TANAOROSHI KOGAISHA
HENDOHYO SHISAN
MALAYSIA STATEMENT OF STOCKS SUBSIDIARY
SOURCE AND
APPLICATION OF
FUNDS
MEXICO ESTADOS DE CAMBIOS INVENTARIOS SUBSIDIARIA
EN LA SITUACION
FINANCIERA
NEW ZEALAND STATEMENT OF STOCKS or SUBSIDIARY

CHANGES IN INVENTORIES
FINANCIAL
POSITION
PHILIPPINES STATEMENT OF INVENTORIES SUBSIDIARY

CHANGES IN
FINANCIAL
POSITION
1\
PORTUGAL MAPA DE ORIGEM EXISTENCIAS "
SUBSIDIARIA
E APLICACAO DE
FUND OS
SOUTH AFRICA STATEMENT OF STOCKS SUBSIDIARY

SOURCE AND
APPLICATION
OF FUNDS
SPAIN ESTADO DE ORIGEN EXISTENCIAS SUBSIDIARIA

Y APLICACION DE
FONDOS
582 DfrERNATIONAL GLOSSARY OF ACCOUNTING TERMS

SOURCE AND
APPLICATION OF
FUNDS
CHANGES IN
FINANCIAL
POSITION
SWITZERLAND KAPITALFLUSS- INVENTAR or TOCHTERGESELLSCHAFT

RECHNUNG WARENLAGER
THAILAND STATEMENT OF INVENTORIES SUBSIDIARY
CHANGES IN
FINANCIAL
POSITION
URUGUAY ESTADO DE ORIGEN BIENES DE CAMBIO SUBSIDIARIA
Y APLICACION DE or INVENTARIOS
FONDOS
ZAMBIA STATEMENT OF STOCKS or SUBSIDIARY
SOURCE AND INVENTORIES
APPLICATION OF
FUNDS
ZIMBABWE STATEMENT OF STOCKS SUBSIDIARY
SOURCE AND
APPLICATION OF
FUNDS
IBTERBATIONAL GLOSSARY OF ACCOUBTilfG TERMS 583
UNITED KINGDOM TRADING PROFIT TURNOVER WORKING CAPITAL
UNITED STATES OPERATING INCOME SALES WORKING CAPITAL
ARGENTINA GANANCIA VENT AS CAPITAL DE TRABAJO

OPERATIVA
AUSTRALIA TRADING PROFIT TURNOVER or WORKING CAPITAL

or OPERATING SALES
INCOME
... ,
CHIFFRE D'AFFAIRES FONDS DE ROULEMENT
BELGIUM BENEFICE
D'EXPLOITATION
BRAZIL LUCRO OPERACIONAL VENDAS CAPITAL CIRCULANTE

LIQUIDO
CHANNEL ISLANDS TRADING PROFIT TURNOVER WORKING CAPITAL
CHILE UTILIDAD VENTAS CAPITAL DE TRABAJO

OPERACIONAL
COLOMBIA INGRESOS DE VENT AS CAPITAL DE TRABAJO

OPERACION
DENMARK DRIFTSOVERSKUD OMSAETNING DRIFTSKAPITAL
FINLAND LIIKEVOITTO LIIKEVAIHTO KAYTTOPAAOMA

... ,
CHIFFRE D'AFFAIRES FONDS DE ROULEMENT
FRANCE BENEFICE
D'EXPLOITATION
GERMANY BETRIEBSERGEBNIS UMSATZERLOSE or BETRIEBSKAPITAL or

or BETRIEBSGEWINN UMSATZE UMLAUFKAPITAL
HONG KONG TRADING PROFIT TURNOVER WORKING CAPITAL
INDONESIA LABA USAHA or PENJUALAN MODAL KERJA

LABA OPERAS I
IRELAND TRADING PROFIT TURNOVER WORKING CAPITAL
ITALY UTILE OPERATIVO RICAVI CAPITALE CIRCOLANTE

584 DiTERNATIONAL GLOSSARY OF ACCOUNTING TERMS
UNITED KINGDOM TRADING PROFIT TURNOVER WORKING CAPITAL

UNITED STATES OPERATING INCOME SALES WORKING CAPITAL
JAPAN EIGYO RIEKI URIAGEDAKA UNTEN SHIHON

MALAYSIA TRADING PROFIT or TURNOVER or WORKING CAPITAL
OPERATING INCOME SALES
MEXICO UTILIDAD DE VENT AS CAPITAL DE TRABAJO
OPERACION
NEW ZEALAND TRADING PROFIT or TURNOVER or WORKING CAPITAL
OPERATING INCOME SALES
PHILIPPINES OPERATING INCOME SALES WORKING CAPITAL
PORTUGAL LUCRO DE VENDAS ACTIVO CIRCULANTE
EXPLORACAO
SOUTH AFRICA OPERATING INCOME TURNOVER WORKING CAPITAL or
NET CURRENT ASSETS or
NET CURRENT
LIABILITIES
SPAIN RESULTADOS DE LA VENT AS CAPITAL DE TRABAJO
EXPLOTACION or CAPITAL CIRCULANTE
SWITZERLAND BETRIEBSGEWINN VERKAUFE or NETTOUMLAUFSVERMOEGEN

UMSATZ
THAILAND OPERATING INCOME SALES WORKING CAPITAL
URUGUAY RESULTADOS VENT AS or CAPITAL DE TRABAJO
OPERATIVOS INGRESOS
OPERATIVOS
ZAMBIA TRADING PROFIT TURNOVER WORKING CAPITAL
ZIMBABWE OPERATING INCOME TURNOVER WORKING CAPITAL

S. J. Gray, L. G. Campbell, J. C. Shaw (Eds.) - International Financial Reporting_ a Comparative International Survey of Accounting Requirements and Practices in 30 Countries (1984, Palgrave Macmillan UK) - Libgen.lc

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S. J. Gray, L. G. Campbell, J. C. Shaw (Eds.) - International Financial Reporting_ a Comparative International Survey of Accounting Requirements and Practices in 30 Countries (1984, Palgrave Macmillan UK) - Libgen.lc

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INTERNATIONAL FINANCIAL REPORTING

This book provides a comparative international survey of company financial

The information provided will, therefore, be of use to anyone interested in the

A Comparative International Survey

First published 1984 by

British Library Cataloguing in Publication Data

1 Influences on accounting development 11

2 Accounting concepts and policies 29

3 Income and asset measurement 39

4 Funds statements 187

5 Group accounts 223

6 Inflation accounting 303

7 Foreign currency translation 331

8 Segmental reporting 357

9 Forecasts, contingencies, and post balance sheet events 407

10 Social reporting 451

11 Interim reporting 513

International aspects of accounting and financial reporting have

International investment is now undertaken on a large scale both

The growth of international trade and investment has led to other

Increased internationalism has led to the development of a number

Much of this interest in international accounting has focused on

However, because these interest groups may come from a different

There is, therefore, a need for a greater awareness and

The purpose of this survey is to help meet the need for an

The information in the survey is given in two parts: Requirements

The Requirements part of each question is intended to show the

The Practices part of each question is intended to show the

This survey is the result of a joint project by the University of

The answers to the "Requirements" part of each question have been

The answers to the "Practices" part of each question are based on

In some questions the "Practices" answers are based on the

While the information in the survey does not purport to be

Financial reporting requirements and practices in each of the

In the EEC, the most significant development is the adoption , in

At the wider international level of the IASC, international

Another noteworthy development of some international significance

The Contents Summary provides a list of the topics included in

The questions in each chapter (with the exception of Chapter One)

In the Current Requireaents section, the questions have four

Required: this treatment is specifically required in the

The "Source" column indicates the relevant pronouncement (as at 1

Where N/A is shown in the current requirements or current

In the Current Practices section, the results of the company

A zero in the F column indicates that none of the companies

The "Current Practice" answer to a particular question for a

Finally, the information contained in this book may be examined

Managerial Influences 1.1 15

Government Influences 1.2 - 1.3 16

Accounting Profession 1.4 - 1.7 18

Stock Exchanges 1.8 22

International Influences 1.9 - 1.10 23

Other Influences 1.11 - 1.12 25

This survey is concerned with financial reporting requirements

In addition to knowing what these differences are, it is

Therefore, in order to achieve a greater understanding of why

Chapter One analyses the relative strength of a number of

While these answers are necessarily subjective assessments they

The survey shows that there are a large number of influences on

Interestingly, the accounting profession is often involved with

Stock exchanges often provide regulation additional to legal and

The influence of participant users groups is varied with evidence

1.1 In general,what is the attitude of business management to information

COUNTRY STRONGLY MODERATELY INDIFF- MODERATELY STRONGLY