IFRS ACCOUNTING

STANDARDS AT A GLANCE
As at 31 December 2024 (including IFRS 18 and IFRS 19)
IFRS® Accounting Standards at a Glance (IAAG) has been compiled
to assist in gaining a high-level overview of IFRS Accounting
Standards, including International Accounting Standards and
Interpretations.
IAAG includes all IFRS Accounting Standards in issue as at 31
December 2024.
If a part of a standard or interpretation has been revised with a
future effective date, the revised requirement has also been
included and is identified by an (R) suffix, with the exception of
consequential amendments as a result of IFRS 18 (see below).
For a summary of standards and amendments that have been
issued as at 31 December 2024, but are not yet effective, please
Year-end IFRS Accounting Standards Update.
For a summary of new IFRS Accounting Standards issued during
2024 (IFRS 18 and IFRS 19) and significant consequential
amendments that have been issued as at 31 December 2024, but
are not yet effective, please refer to Appendix 1. The summary of
IFRS Accounting Standards outside of Appendix 1 do not reflect
the consequential amendments issued as a result of IFRS 18 and
IFRS 19 (e.g. the withdrawal of IAS 1, amendments to IAS 7, etc.).

IFRS FAQ publication series.

IFRS 1 FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS 4 IAS 38 INTANGIBLE ASSETS 94
IFRS 2 SHARE-BASED PAYMENT 6 IAS 39 FINANCIAL INSTRUMENTS: RECOGNITION AND MEASUREMENT++ 96
IFRS 3 BUSINESS COMBINATIONS 8 IAS 40 INVESTMENT PROPERTY 98
IFRS 5 NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS 10 IAS 41 AGRICULTURE 100
IFRS 6 EXPLORATION FOR AND EVALUATION OF MINERAL RESOURCES 11 IFRIC 1 CHANGES IN EXISTING DECOMMISSIONING, RESTORATION AND SIMILAR LIABILITIES 101
IFRS 7 FINANCIAL INSTRUMENTS: DISCLOSURES 12 IFRIC 2 -OPERATIVE ENTITIES AND SIMILAR INSTRUMENTS 102
IFRS 8 OPERATING SEGMENTS 14 IFRIC 5 RIGHTS TO INTERESTS ARISING FROM DECOMMISSIONING, RESTORATION AND ENVIRONMENTAL 103
IFRS 9 FINANCIAL INSTRUMENTS++ 15 REHABILITATION FUNDS
IFRS 10 CONSOLIDATED FINANCIAL STATEMENTS 25 IFRIC 6 LIABILITIES ARISING FROM PARTICIPATING IN A SPECIFIC MARKET: WASTE ELECTRICAL AND 104
IFRS 11 JOINT ARRANGEMENTS 29 ELECTRONIC EQUIPMENT
IFRS 12 DISCLOSURE OF INTERESTS IN OTHER ENTITIES 33 IFRIC 7 APPLYING THE RESTATEMENT APPROACH UNDER IAS 29 FINANCIAL REPORTING IN 105
IFRS 13 FAIR VALUE MEASUREMENT 36 HYPERINFLATIONARY ECONOMIES
IFRS 14 REGULATORY DEFERRAL ACCOUNTS 40 IFRIC 10 INTERIM FINANCIAL REPORTING AND IMPAIRMENT 106
IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS 42 IFRIC 12 SERVICE CONCESSION ARRANGEMENTS 107
IFRS 16 LEASES 50 IFRIC 14 IAS 19: THE LIMIT ON A DEFINED BENEFIT ASSET, MINIMUM FUNDING REQUIREMENTS AND THEIR 108
IFRS 17 INSURANCE CONTRACTS 55 INTERACTION
IAS 1 PRESENTATION OF FINANCIAL STATEMENTS 61 IFRIC 16 HEDGES OF A NET INVESTMENT IN A FOREIGN OPERATION 109
IAS 2 INVENTORIES 63 IFRIC 17 DISTRIBUTION OF NON-CASH ASSETS TO OWNERS 111
IAS 7 STATEMENT OF CASH FLOWS 64 IFRIC 19 EXTINGUISHING FINANCIAL LIABILITIES WITH EQUITY INSTRUMENTS 112
IAS 8 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS 65 IFRIC 20 STRIPPING COSTS IN THE PRODUCTION PHASE OF A SURFACE MINE 113
IAS 10 EVENTS AFTER THE REPORTING PERIOD 66 IFRIC 21 LEVIES 114
IAS 12 INCOME TAXES 67 IFRIC 22 FOREIGN CURRENCY TRANSACTIONS AND ADVANCE CONSIDERATION 116
IAS 16 PROPERTY PLANT AND EQUIPMENT 68 IFRIC 23 UNCERTAINTY OVER INCOME TAX TREATMENTS 117
IAS 19 EMPLOYEE BENEFITS 70 SIC-7 INTRODUCTION OF THE EURO 119
IAS 20 GOVERNMENT GRANTS 72 SIC-10 GOVERNMENT ASSISTANCE: NO SPECIFIC RELATION TO OPERATING ACTIVITIES 120
IAS 21 THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES 73 SIC-25 INCOME TAXES: CHANGES IN THE TAX STATUS OF AN ENTITY OR ITS SHAREHOLDERS 121
IAS 23 BORROWING COSTS 74 SIC-29 SERVICE CONCESSION ARRANGEMENTS: DISCLOSURE 122
IAS 24 RELATED PARTY DISCLOSURES 75 SIC-32 INTANGIBLE ASSETS: WEBSITE COSTS 123
IAS 26 ACCOUNTING AND REPORTING BY RETIREMENT BENEFIT PLANS 77 APPENDIX 1 IFRS 18, IFRS 19 AND SELECT CONSEQUENTIAL AMENDMENTS 124
IAS 27 SEPARATE FINANCIAL STATEMENTS 78
IAS 28 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES 80
IAS 29 FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES 83
IAS 32 FINANCIAL INSTRUMENTS: PRESENTATION 86 ++[IFRIC 9 Reassessment of Embedded Derivatives was superseded by IFRS 9 Financial Instruments and
IAS 33 EARNINGS PER SHARE 87
IAS 34 INTERIM FINANCIAL REPORTING 88 measurement requirements as of 31 December 2024; IAS 39 remains applicable for hedge accounting
IAS 36 IMPAIRMENT OF ASSETS 90 only see note on IAS 39 At a Glance].
IAS 37 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS 92
 Effective Date
Page 1 of 2
Periods beginning on or after 1 July 2009

IFRS 1 First-time Adoption of International Financial Reporting Standards

SCOPE GENERAL REQUIREMENTS

 IFRS 1 does not apply to entities already reporting under IFRS Accounting Standards.  Select IFRS accounting policies using either:
 IFRS 1 applies to the first set of financial statements that contain an explicit and unreserved ‒ IFRS Accounting Standards that are currently effective; or
statement of compliance with IFRS Accounting Standards. ‒ One or more IFRS Accounting Standards that are not yet effective, if those new IFRS permit
 IFRS 1 applies to any interim financial statements for a period covered by those first financial early adoption.
statements that are prepared under IFRS Accounting Standards.  Recognise/derecognise assets and liabilities where necessary so as to comply with IFRS
Accounting Standards
 Reclassify items that the entity recognised under previous accounting framework as one type of
asset, liability or component of equity, but are a different type of asset, liability or component of
equity under IFRS
 Apply IFRS Accounting Standards in measuring all recognised assets and liabilities.

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Periods beginning on or after 1 July 2009

IFRS 1 First-time Adoption of International Financial Reporting Standards

RECOGNITION AND MEASUREMENT

OPTIONAL EXEMPTIONS MANDATORY EXCEPTIONS OPENING IFRS STATEMENT OF FINANCIAL POSITION

IFRS 1 does not permit these to be applied by analogy IFRS 1 prohibits retrospective application in relation to the following:  An opening IFRS Statement of Financial Position is prepared at the date of transition
to other items  Estimates  All IFRS Accounting Standards are applied consistently across all reporting periods in the
An entity may elect to use one or more of the following exemptions,  Derecognition of financial assets and financial liabilities
which provide specific relief, on adoption of IFRS Accounting  Hedge accounting current reporting period)
Standards:  Non-controlling interests.  If a standard is not yet mandatory but permits early application, an entity is permitted, but not
 Business combinations required, to apply that Standard in its first IFRS set of financial statements.
 Share-based payment transactions
 Insurance contracts ACCOUNTING POLICIES
 Fair value or revaluation as deemed cost
  Use the same accounting policies in the opening IFRS statement of PRESENTATION AND DISCLOSURE
between transition date and date of the first IFRS Accounting financial position and throughout all periods presented in the first IFRS
Standards reporting period financial statements.
Deemed cost for assets used in operations subject  Those accounting policies have to comply with each IFRS effective at
 financial position and two statements each of statements of comprehensive income, income
to rate regulation the end of the first IFRS reporting period. statements (if presented), statements of cash flows and statements of changes
 Leases Changes in accounting policies during first year of IFRS Accounting in equity, related notes and in relation to the adoption of IFRS Accounting Standards, the
 Cumulative translation differences Standards following:
 Investments in subsidiaries, joint ventures and associates  A reconciliation of equity reported under previous accounting framework to equity
 Assets and liabilities of subsidiaries, associates and joint ventures accordance with IAS 34 Interim Financial Reporting) and the issue under IFRS Accounting Standards:
 Compound financial instruments of its first annual IFRS financial statements, and entity changes ‒ At the date of transition to IFRS Accounting Standards
 Designation of previously recognised financial instruments accounting policies and/or adopts exemptions: ‒ At the end of the latest period presented in the entity’s most recent annual financial
Fair value measurement of financial assets/liabilities at initial  The requirements of IAS 8 Accounting Policies, Changes
 statements under previous accounting framework.
recognition in Accounting Estimates and Errors do not apply  A reconciliation of total comprehensive income reported under previous accounting
Decommissioning liabilities included in the cost of property,  The reconciliation between IFRS Accounting Standards and previous
 framework to total comprehensive income under IFRS Accounting Standards
plant and equipment GAAP has to be updated. most recent annual financial statements under previous accounting framework
 Financial assets or intangible assets accounted for in accordance  Interim financial reports:
with IFRIC 12 Service Concession Arrangements ‒ In addition to the reconciliations above, the entity is also required to provide:
 Borrowing costs ‒ A reconciliation of equity reported under its previous accounting framework
 Extinguishing financial liabilities with equity instruments accounted for REPEAT APPLICATION OF IFRS 1 to equity under IFRS Accounting Standards at the end of the comparable interim period,
in accordance with IFRIC 19 -Extinguishing Financial Liabilities with and
Equity Instruments ‒ A reconciliation of total comprehensive income reported under its previous accounting
An entity that has applied IFRS Accounting Standards in a previous
 Joint arrangements framework to total comprehensive income under IFRS Accounting Standards for the
reporting period, but whose most recent previous annual financial
 Severe hyperinflation statements do not contain an explicit and unreserved statement of comparative interim period, and
 Government loans compliance with IFRS Accounting Standards, must either apply IFRS 1 or ‒ Explanations of the transition from its previous accounting framework to IFRS.
 Stripping costs in the production phase of a surface mine in else apply IFRS Accounting Standards retrospectively in accordance with  Any errors made under the previous accounting framework must be separately
accordance with IFRIC 20 Stripping Costs in the Production Phase IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. distinguished
of a Surface Mine.  Additional disclosure requirements are set out in IFRS 1.

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 Effective Date
Page 1 of 2
Periods beginning on or after 1 January 2005

IFRS 2 Share-based Payment

SCOPE

IFRS 2 applies to all share-based payment transactions, which are defined as follows: IFRS 2 also applies: IFRS 2 does not apply to:
 Equity-settled, in which the entity receives goods or services as consideration for equity  To transfers by shareholders to parties (including  Transactions in which the entity acquires goods as part of the net assets acquired in a
instruments of the entity (including shares or share options); employees) that have transferred goods or services to the business combination to which IFRS 3 Business Combinations applies or to the
 Cash-settled, in which the entity receives goods or services by incurring a liability to the entity. This would include transfers of equity instruments of contribution of a business on the formation of a joint venture to which IFRS 11 Joint
supplier that is based on the price (or value) of the entity's shares or other equity the entity or fellow subsidiaries by the entity's parent entity Arrangements applies
instruments of the entity to parties that have provided goods and services  Share-based payment transactions in which the entity receives or acquires goods or
 Transactions in which the entity receives goods or services and either the entity or the  When an entity does not receive any specifically identifiable services under a contract within the scope of IAS 32 Financial Instruments: Presentation
supplier of those goods or services have a choice of settling the transaction in cash (or goods/services. and IFRS 9 Financial Instruments
other assets) or equity instruments.  Transactions with an employee in his/her capacity as a holder of equity instruments.

IDENTIFYING THE SHARE-BASED PAYMENT CONDITIONS RECOGNITION

VESTING CONDITIONS NON-VESTING  Recognise the goods or

CONDITIONS services received or
A condition that determines whether the entity receives the services that entitle the counterparty to receive the share-based payment and is either: a service condition, or a performance
acquired in a share-
condition. A condition that based payment
determines whether the transaction when the
SERVICE CONDITION PERFORMANCE CONDITION entity receives the services goods are obtained or as
that entitle the the services are received
Requires the counterparty to Requires: counterparty to receive the
 The counterparty to complete a specified period of service (i.e. service condition) - the service requirement can be explicit or implicit, and
 Recognise an increase in
complete a specified period share-based payment and
 Specified performance target(s) to be met while the counterparty is rendering that service.
equity for an equity-
of service during which is either: a service settled share-based
services are provided to the The period of achieving the performance target(s): condition, or a payment transaction
entity. If the counterparty,  Shall not extend beyond the end of the service period, and performance condition.  Recognise a liability for a
 May start before the service period on the condition that the commencement date of the performance target is not substantially before the
regardless of the reason, cash-settled share-based
ceases to provide service commencement of the service period.
payment transaction
during the vesting period, it A performance target is defined by reference to:
 When the goods or
 The entity's own operations (or activities) or the operations or activities of another entity in the same group (ie a non-market condition), or
has failed to satisfy the services received or
 The price (or value) of the entity's equity instruments or the equity instruments of another entity in the same group (including shares and share
condition. A performance acquired do not qualify
options) (ie a market condition).
target is not required to be  Included in the grant for recognition as assets,
A performance target might relate either to the performance of the entity as a whole or to some part of the entity (or part of the group), such recognise an expense.
met. date fair value
as a division or an individual employee. calculation
 No adjustment to the
number of shares or
 Excluded from grant date fair NON-MARKET CONDITION MARKET CONDITION vesting date amount for
value calculation actual results.
 Adjustment to the number of Relates to operations of the entity or to the I Performance condition, upon which the exercise price, the vesting or exercisability of an
shares and/or vesting date operations of another entity in the same group. equity instrument depends, that is related to the market price of the entity's equity
amount for actual results. instruments (including share options) or those of another entity within the group.

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Periods beginning on or after 1 January 2005

IFRS 2 Share-based Payment

MEASUREMENT

GROUP SETTLED SHARE-BASED

EQUITY-SETTLED CHOICE OF SETTLEMENT CASH-SETTLED
PAYMENTS

Transactions with employees Transactions with non- Share-based payment transactions where there is Cash-settled share-based An entity that receives goods or services
 Measure at the fair value of the employees a choice of settlement payment transactions (receiving entity) in an equity-settled or a cash-
equity instruments granted at Measure at the fair value of the settled share-based payment transaction is
  If the counterparty has the right to choose  Measure the liability at the fair
grant date goods or services received at required to account for the transaction in its
whether a share-based payment transaction is value at grant date
The fair value is never the date the entity obtains the separate or individual financial statements.

settled in cash or by issuing equity instruments,  Re-measure the fair value of
remeasured goods or receives the service the entity has granted a compound instrument (a the liability at each reporting  The entity receiving the goods or services
 The grant date fair value is  If the fair value of the goods or cash-settled component and an equity-settled date and at the date of recognises them, regardless of which entity
recognised over the vesting services received cannot be component) settlement, with any changes in settles the transaction, this must be on an
period. estimated reliably, measure by If the entity has the choice of whether to settle in fair value recognised in profit
 equity-settled or a cash-settled basis
reference to the fair value of the cash or by issuing equity instruments, the entity or loss for the period
equity instruments granted. shall determine whether it has a present Liability is recognised over the
 (this might not be the same as the amount
obligation to settle in cash and account for the vesting period (if applicable). recognised by the consolidated group)
transaction as cash-settled or if no such obligation  The term 'group' has the same definition as
exists, account for the transaction as equity- per IFRS 10 Consolidated Financial
settled. Statements that it includes only a parent and
its subsidiaries.

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Page 1 of 2
Periods beginning on or after 1 July 2009

IFRS 3 Business Combinations

SCOPE / IDENTIFYING A BUSINESS COMBINATION

A business combination is: IFRS 3 does not apply to:

Transaction or event in which acquirer obtains control over a business (e.g. acquisition of shares or net  The accounting for the formation of a joint arrangement in the financial statements of the joint
assets, legal mergers, reverse acquisitions). arrangement itself.
 Acquisition of an asset or group of assets that is not a business.
 A combination of entities or businesses under common control.

An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Power: when existing rights give an investor the current ability to direct the relevant activities of an investee (ie the activities
Rights to variable returns
Link between power and returns as
returns.
Principal or agent: an investor with power over an investee determines whether it is a principal or an agent. An investor that is an agent does not control an investee when it exercises delegated rights.

An Integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or
generating other income from ordinary activities.

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Page 2 of 2
Periods beginning on or after 1 July 2009

IFRS 3 Business Combinations

THE ACQUISITION METHOD

A business combination must be accounted for by applying the acquisition method.

STEP 1: IDENTIFYING THE STEP 2: DETERMINING THE STEP 3: RECOGNISING AND MEASURING THE ADDITIONAL GUIDANCE FOR APPLYING THE ACQUISITION METHOD
ACQUIRER ACQUISITION DATE IDENTIFIABLE ASSETS ACQUIRED, THE TO PARTICULAR TYPES OF BUSINESS COMBINATIONS
LIABILITIES ASSUMED AND ANY NON-
IFRS 10 Consolidated Financial Statements The date which the acquirer obtains control
is used to identify the acquirer – the entity of the acquiree.
CONTROLLING INTEREST (NCI) IN THE ACQUIREE
BUSINESS COMBINATION ACHIEVED IN STAGES
that obtains control of the acquiree.
 As of the acquisition date, the acquirer recognises,
separately from goodwill:  An acquirer sometimes obtains control of an acquiree in which it held an equity
STEP 4: RECOGNISING AND MEASURING GOODWILL OR A GAIN FROM ‒ The identifiable assets acquired interest immediately before the acquisition date. This is known as a business
BARGAIN PURCHASE ‒ The liabilities assumed combination achieved in stages or as a step acquisition
‒ Any NCI in the acquiree  Obtaining control triggers re-measurement of previous investments (equity interests)
 Goodwill is recognised as the excess between:  The acquired assets and liabilities are required to be  The acquirer remeasures its previously held equity interest in the acquiree at its
‒ The aggregate of the consideration transferred, any non-controlling interest in the measured at their acquisition-date fair values acquisition-date fair value. Any resulting gain/loss is recognised in profit or loss.
acquiree and, in a business combination achieved in stages, the acquisition-date fair  There are certain exceptions to the recognition and/or
measurement principles which cover contingent liabilities,
‒ The identifiable net assets acquired (including any deferred tax balances) income taxes, employee benefits, indemnification assets,
 Goodwill can be grossed up to include the amounts attributable to NCI, which is the case reacquired rights, share-based payments and assets held BUSINESS COMBINATION ACHIEVED WITHOUT TRANSFER OF
when NCI is measured at their acquisition date fair value. for sale. CONSIDERATION
 A gain from a bargain purchase is immediately recognised in profit or loss  NCI that represent ownership interests and entitle their
 The consideration transferred in a business combination (including any contingent  The acquisition method of accounting for a business combination also applies if no
consideration) is measured at fair value in the event of liquidation (e.g. shares) are measured at consideration is transferred.
 Contingent consideration is either classified as a liability or an equity instrument on the acquisition-  Such circumstances include:
basis of IAS 32 Financial Instruments share in net assets ‒ The acquiree repurchases a sufficient number of its own shares for an existing investor
 Contingent consideration that is within the scope of IFRS 9 (classified as a financial liability)  All other components of NCI (e.g. from IFRS 2 Share- (the acquirer) to obtain control
needs to be remeasured at fair value at each reporting date with changes reported in profit or based payments or calls) are required to be measured at ‒ Minority veto rights lapse that previously kept the acquirer from controlling an acquiree
loss. their acquisition-date fair values. in which the acquirer held the majority voting rights
‒ The acquirer and the acquiree agree to combine their businesses by contract alone.

DETERMINING WHAT IS PART OF THE BUSINESS COMBINATION

MEASUREMENT PERIOD SUBSEQUENT MEASUREMENT AND ACCOUNTING
TRANSACTION
Applies when initial accounting is incomplete at the end of the The acquirer should consider if the consideration includes amounts attributable to other  In general, after the date of a business combination an acquirer measures and
reporting period in which the business combination occurs transactions within the contract (pre-existing relationship, arrangements that remunerate accounts for assets acquired and liabilities assumed or incurred in accordance with
Measurement period ends when acquirer receives information employees etc.). other applicable IFRS Accounting Standards.
seeking about facts and circumstances at acquisition date, not to Acquisition and other costs  However, IFRS 3 includes accounting requirements for reacquired rights, contingent
exceed one year from acquisition date.  Cannot be capitalised, must instead be expensed in the period they are incurred liabilities, contingent consideration and indemnification assets.
 Costs to issue debt or equity are recognised in accordance with IAS 32 and IFRS 9.

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 Effective Date
Periods beginning on or after 1 January 2005

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

DEFINITIONS SCOPE

Cash-generating unit The smallest identifiable group of assets that generates cash inflows that are largely independent of  Applies to all recognised non-current assets and disposal groups of an entity that are:
the cash inflows from other assets or groups of assets. ‒ held for sale; or
‒ held for distribution to owners.
Discontinued operation A component of an entity that either has been disposed of or is classified as held for sale and  Assets classified as non-current in accordance with IAS 1 Presentation of Financial Statements shall not be reclassified as current
either: assets until they meet the criteria of IFRS 5
 Represents a separate major line of business or geographical area  If an entity disposes of a group of assets, possibly with directly associated liabilities (i.e. an entire cash-generating unit), together in a

 Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations single transaction, if a non-current asset in the group meets the measurement requirements in IFRS 5, then IFRS 5 applies to the
 Is a subsidiary acquired exclusively with a view to resale. group as a whole. The entire group is measured at the lower of its carrying amount and fair value less costs to sell
 Non-current assets to be abandoned cannot be classified as held for sale.

Exclusions to measurement requirements of IFRS 5. Disclosure requirements still to be complied with:

CLASSIFICATION OF NON-CURRENT ASSETS (OR DISPOSAL GROUPS) HELD FOR SALE OR  Deferred tax assets (IAS 12 Income Taxes)
DISTRIBUTION TO OWNERS  Assets arising from employee benefits (IAS 19 Employee Benefits)
 Financial assets in the scope of IFRS 9 Financial Instruments
Classify a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a  Non-current assets that are accounted for in accordance with the fair value model (IAS 40 Investment Property)
sale transaction rather than through continuing use. The following criteria must be met:  Non-current assets that are measured at fair value less estimated point of sale costs (IAS 41 Biological Assets)
 Contractual rights under insurance contracts ( IFRS 17 Insurance Contracts).
 The asset (or disposal group) is available for immediate sale
 The terms of asset sale must be usual and customary for sales of such assets
 The sale must be highly probable MEASUREMENT
 Management is committed to a plan to sell the asset
 Asset must be actively marketed for a sale at a reasonable price in relation to its current fair value  Immediately prior to classification as held for sale, carrying amount of the asset is measured in accordance with applicable IFRS
 Sale should be completed within one year from classification date Accounting Standards
 Sale transactions include exchanges of non-current assets for other non-current assets when the exchange has  After classification, it is measured at the lower of carrying amount and fair value less costs to sell. Assets covered under certain other
commercial substance in accordance with IAS 16 Property, Plant and Equipment IFRS Accounting Standards are scoped out of measurement requirements of IFRS 5 see above
 When an entity acquires a non-current asset exclusively with a view to its subsequent disposal, it shall classify the non-  Impairment must be considered at the time of classification as held for sale and subsequently
current asset as held for sale at the acquisition date only if the one year requirement is met  Subsequent increases in fair value cannot be recognised in profit or loss in excess of the cumulative impairment losses that have
 There are special rules for subsidiaries acquired with a view for resale. been recognised with this IFRS Accounting Standard or with IAS 36 Impairment of Assets
 Non-current assets (or disposal groups) classified as held for sale are not depreciated
Note: The classification criteria also apply to non-current assets (or disposal groups) held for distribution to owners.
 Adjustment of number of shares and/or vesting date amount for actual results.
A reclassification from held for sale to held for distribution to owners is not a change to a plan and therefore not a new plan.

DISCLOSURE
DISCONTINUED OPERATIONS
 Non-current assets (or a disposal group) held for sale are disclosed separately from other assets in the statement of financial position.
 Classification as a discontinued operation depends on when the operation also meets the requirements to be classified If there are any liabilities, these are disclosed separately from other liabilities
as held for sale  Description of the nature of assets (or disposal group) held for sale and facts and circumstances surrounding the sale
 Results of discontinued operations are presented as a single amount in the statement of comprehensive income. An  A gain or loss resulting from the initial or subsequent fair value measurement of the disposable group or non-current asset held for
analysis of the single amount is presented in the notes or in the statement of comprehensive income sale if not presented separately in the statement of comprehensive income and the line item that includes that gain or loss
 Cash flow disclosure is required either in the notes or statement of cash flows  Prior year balances in the statement of financial positions are not reclassified as held for sale
 Comparatives are restated.  If applicable, the reportable segment (IFRS 8) in which the non-current asset or disposable group is presented.

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 Effective Date
Periods beginning on or after 1 January 2006

IFRS 6 Exploration for and Evaluation of Mineral Resources

SCOPE MEASUREMENT AT RECOGNITION

 An entity applies IFRS 6 to exploration and evaluation expenditures that it incurs At recognition, exploration and evaluation assets are measured at cost.
 An entity does not apply IFRS 6 to expenditures incurred:
‒ Before the exploration for and evaluation of mineral resources, such as expenditures incurred before the entity has
obtained the legal rights to explore a specific area ELEMENTS OF COST OF EXPLORATION AND EVALUATION ASSETS
‒ After the technical feasibility and commercial viability of extracting a mineral resource are demonstrable.
 An entity determines an accounting policy specifying which expenditures are recognised as exploration and evaluation
assets
 The following are examples of expenditures that might be included in the initial measurement of exploration and
PRESENTATION evaluation assets:
‒ Acquisition of rights to explore
An entity classifies exploration and evaluation assets as tangible or intangible according to the nature of the assets ‒ Topographical, geological, geochemical and geophysical studies
acquired and applies the classification consistently. ‒ Exploratory drilling
‒ Trenching

CHANGES IN ACCOUNTING POLICY - OPTIONAL EXEMPTIONS MEASUREMENT AFTER RECOGNITION

An entity may change its accounting policies for exploration and evaluation expenditures if the change makes the financial After recognition, an entity applies either the cost model or the revaluation model to the exploration and evaluation assets.
statements more relevant and no less reliable to the economic decision-making needs of users, or more reliable and no less Refer to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets for guidance.
relevant to those needs.
IMPAIRMENT

DISCLOSURE One or more of the following facts and circumstances indicate that an entity should test exploration and evaluation assets
for impairment:
An entity discloses information that identifies and explains the amounts recognised in its financial statements arising from  The period for which the entity has the right to explore in the specific area has expired during the period or will expire in

the exploration for and evaluation of mineral resources. the near future, and is not expected to be renewed
 Substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither
An entity discloses:
budgeted nor planned
 Its accounting policies for exploration and evaluation expenditures and evaluation assets  Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially
 The amounts of assets, liabilities, income and expense and operating and investing cash flows arising from the viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area
exploration for and evaluation of mineral resources.  Sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the carrying

Exploration and evaluation assets are disclosed as a separate class of assets in the disclosures required by IAS 16 Property, amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale.
Plant and Equipment or IAS 38 Intangible Assets.

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Page 1 of 2
Periods beginning on or after 1 January 2007

IFRS 7 Financial Instruments: Disclosures

DISCLOSURE REQUIREMENTS: SIGNIFICANCE OF FINANCIAL INSTRUMENTS IN TERMS OF THE DISCLOSURE REQUIREMENTS: NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL
FINANCIAL POSITION AND PERFORMANCE INSTRUMENTS AND HOW THE RISKS ARE MANAGED

STATEMENT OF FINANCIAL POSITION OTHER Qualitative disclosure Quantitative disclosure

 Exposure to risk and how it arises  Summary of quantitative data about exposure to risk based on information

 Total carrying value of each category of financial Accounting policies:  Objectives, policies and processes for managing given to key management
assets and liabilities on face of the statement of risk and method used to measure risk.  Concentrations of risks.
 All relevant accounting policies. Include
financial position or in the notes measurement basis.
 Information on fair value of loans and receivables
Financial liabilities designated as at fair value through Hedge accounting:

SPECIFIC QUANTITATIVE DISCLOSURE REQUIREMENTS
profit and loss  Description of hedge, description and fair
 Financial assets reclassified value of hedged instrument and type of
 Financial assets that do not qualify for derecognition risk hedged
 Details of financial assets pledged as collateral &  Details of cash flow hedges, fair value LIQUIDITY RISK CREDIT RISK MARKET RISK
collateral held hedges and hedge of net investment in
Reconciliation of allowance account for credit losses. Definition: Definition: Definition:

foreign operations.
Compound financial instruments with embedded The risk that an entity will The risk that one party to a financial The risk that the fair value or future cash flows of a financial
  Description of the impact of choosing the
derivatives encounter difficulty in meeting instrument will cause a financial loss instrument will fluctuate due to changes in market prices.
exception under IFRS 9 or IAS 39 for
Details of defaults and breaches of loans payable. obligations associated with for the other party by failing to Market risk comprises three types of risk: currency risk,
 interest rate benchmark reform.
financial liabilities. discharge an obligation. interest rate risk and other price risk.
Fair value:
 Fair value for each class of financial asset
STATEMENT OF COMPREHENSIVE INCOME and liability  Maturity analysis for financial  Maximum exposure to credit risk without  A sensitivity analysis (including methods
 Disclose method and relevant liabilities that shows the taking into account collateral and assumptions used) for each type of
 Gain or loss for each category of financial assets and assumptions to calculate fair value remaining contractual maturities  Collateral held as security and other credit market risk exposed, showing impact on
liabilities in the statement of comprehensive income or  Disclose if fair value cannot be Appendix B10A B11F enhancements profit or loss and equity
in the notes determined.  Time bands and increment are  Information of financial assets that are or
 Total interest income and interest expense (effective either past due (when a counterparty has  If a sensitivity analysis is prepared by an
interest method)  How liquidity risk is managed. failed to make a payment when entity, showing interdependencies
 Fee income and expense contractually due) or impaired between risk variables and it is used to
 Interest on impaired financial assets  Information about collateral and other manage financial risks, it can be used in
 Amount of impairment loss for each financial asset. credit enhancements obtained. place of the above sensitivity analysis.

(R) AMENDMENTS AND STANDARDS ISSUED BUT CONTRACTS REFERENCING NATURE-DEPENDENT ELECTRICITY (R)
NOT YET EFFECTIVE
New disclosure requirements for CRNEs to which own-use exception applies:
This IFRS Accounting Standard includes amendments
that were issued as at 31 December 2024 but were not  Information about contractual features that expose the entity to variability in the amount of electricity and the risk of buying
yet mandatorily effective. These are identified with an electricity when the entity cannot use it
please  Information about unrecognised commitments
IFR Bulletin 2025/01. 
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Page 2 of 2
Periods beginning on or after 1 January 2007

IFRS 7 Financial Instruments: Disclosures

SCOPE FAIR VALUE (FV) HIERARCHY TRANSFER OF FINANCIAL ASSETS

IFRS 7 applies to all recognised and unrecognised All financial instruments measured at fair value must be classified into the levels below (that reflect how fair Information for transferred assets that are and
financial instruments (including contracts to buy or sell value has been determined): that are not derecognised in their entirety:
non-financial assets) except:  Level 1: Quoted prices, in active markets  Information to understand the relationship
 Interests in subsidiaries, associates or joint  Level 2: Level 1 quoted prices are not available but fair value is based on observable market data between financial assets and associated
ventures, where IAS 27/28 or IFRS 10/11 permit  Level 3: Inputs that are not based on observable market data. liabilities that are not derecognised in their
accounting in accordance with IFRS 9 A financial Instrument will be categorised based on the lowest level of any one of the inputs used for its entirety
 Assets and liabilities resulting from IAS 19 valuation.  Information to evaluate the nature and risk
 Insurance contracts in accordance with IFRS 17 associated with the entities continuing
(excluding embedded derivatives in these contracts The following disclosures are also required: involvement in derecognised assets (IFRS
if IFRS 9 require separate accounting) 7.42A-G).
 Significant transfers of financial instruments between each category and reasons why
 Financial instruments, contracts and obligations
 For level 3, a reconciliation between opening and closing balances, incorporating; gains/losses,
under IFRS 2, except contracts within the scope of
purchases/sales/settlements, transfers
IFRS 9
 Amount of gains/losses and where they are included in profit and loss
 Puttable instruments (IAS 32.16A-D).
 For level 3, if changing one or more inputs to a reasonably possible alternative would result in a
significant change in FV, disclose this fact.

13
 Effective Date
Periods beginning on or after 1 January 2009

IFRS 8 Operating Segments

CORE PRINCIPLE SCOPE

An entity is required to disclose information to enable users of its financial statements to evaluate the nature and financial effects of the IFRS 8 applies to the annual and interim financial statements of an entity. It applies to the separate or individual
business activities in which it engages and the economic environments in which it operates. financial statements of an entity and to the consolidated financial statements of a group with a parent:
 Whose debt or equity instruments are traded in a public market; or
 That files, or is in the process of filing, its financial statements with a securities commission or other
QUANTITATIVE THRESHOLDS OPERATING SEGMENTS regulatory organisation for the purpose of issuing any class of instruments in a public market.

 Information is required to be disclosed separately about an operating segment An operating segment is a component of an entity:
that meets any of the following quantitative thresholds:  That engages in business activities from which it
‒ Its reported revenue, including both sales to external customers and may earn revenues and incur expenses
intersegment sales or transfers, is 10 per cent or more of the combined  Whose operating results are regularly reviewed DISCLOSURE
revenue, internal and external, of all operating segments
‒ The absolute amount of its reported profit or loss is 10 per cent or more of (CODM) to make decisions about resources to be Major disclosures include:
the greater, in absolute amount, of: allocated to the segment and assess its  An entity shall mandatorily report a measure of profit or loss and total assets for each reportable segment
‒ The combined reported profit of all operating segments that did not performance only if this information is regularly provided to the CODM
report a loss; and  For which discrete financial information is  Other disclosures are required regarding each reportable segment if specific amounts are reported to the
‒ The combined reported loss of all operating segments that reported a available. CODM
loss. ‒ Judgements made by management for the purposes of aggregation of operating segments
‒ Its assets are 10 per cent or more of the combined assets of all operating ‒ Description of the operating segments that have been aggregated
segments. ‒ Economic indicators considered in determining that segments share similar economic characteristics.
 If the total external revenue reported by operating segments constitutes less REPORTABLE SEGMENTS  Operating segment information disclosed is not necessarily IFRS Accounting Standards compliant
than 75% of the total revenue, additional operating segments shall be identified information, as it is based on amounts reported internally
Information is required to be disclosed separately  Operating segment information disclosed must be reconciled back to IFRS Accounting Standards compliant
reportable segments. about each identified operating segment and amounts disclosed in the financial statements
aggregated operating segments that exceed the  An entity reports the following geographical information if available:
quantitative thresholds. ‒
AGGREGATION CRITERIA foreign countries
‒ Non-current assets (except financial instruments, deferred tax assets, post-employment benefit assets and
Two or more operating segments may be aggregated if the segments are similar DEFINITION OF THE CODM
in each of the following respects: countries
 The nature of the products and services The CODM is the individual or group of individuals ‒
 The nature of the production processes who is/are responsible for strategic decision statements.
 The type or class of customer for their products and services making regarding the entity. That is, the CODM  An entity provides information about the extent of its reliance on its major customers. If revenues from
 The methods used to distribute their products or provide their services allocates resources and assess the performance of
 The nature of the regulatory environment. the operating segments. discloses that fact.

14
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Page 1 of 10
Periods beginning on or after 1 January 2018

IFRS 9 Financial Instruments

BACKGROUND (IFRS 9 replaced IAS 39 Financial Instruments: Recognition and Measurement except for entities that continue to apply relevant hedge accounting guidance in IAS 39)

IFRS 9 introduces a single classification and measurement model for financial assets, dependent on both: IFRS 9 removes the requirement to separate embedded derivatives from financial asset host contracts (it

instead requires a hybrid contract to be classified in its entirety at either amortised cost or fair value.)
 The contractual cash flow characteristics of financial assets. Separation of embedded derivatives has been retained for financial liabilities (subject to criteria being
met).

CONTRACTS REFERENCING NATURE-DEPENDENT ELECTRICITY (R) (R) AMENDMENTS AND STANDARDS ISSUED BUT NOT YET EFFECTIVE

This IFRS Accounting Standard includes amendments that were issued as at 31

 Contracts referencing nature-dependent electricity (CRNE) are contracts that expose an entity to variability in the underlying amount of electricity
December 2024 but were not yet mandatorily effective. These are identified with an
because the source of electricity generation depends on uncontrollable natural conditions.
IFR Bulletin
 CRNE meet the own use exception if the entity is a net purchaser of electricity for the contract period.
2025/01.

INITIAL RECOGNITION AND MEASUREMENT (FINANCIAL ASSETS AND FINANCIAL LIABILITIES)

Initial Recognition Initial Measurement

When the entity becomes party to the contractual At fair value, plus for those financial assets and liabilities not classified at fair value through profit or loss, directly attributable transaction costs.
provisions of the instrument.  Fair value - is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date
 Directly attributable transaction costs - incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial
liability.

15
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Page 2 of 10
Periods beginning on or after 1 January 2018

IFRS 9 Financial Instruments

FINANCIAL ASSETS - SUBSEQUENT CLASSIFICATION AND MEASUREMENT

Financial Assets are classified as either: (1) Amortised cost, (2) Fair value through profit or loss, (3) Fair value through other comprehensive income

(1) Amortised cost

Category classification criteria (i) Business model assessment (ii) Contractual cash flow assessment
Both of the below conditions must be met:
(i) Business model objective: financial assets held in order to collect Based on the overall business, not instrument-by-instrument Based on an instrument-by-instrument basis
contractual cash flows Centres on whether financial assets are held to collect contractual cash flows: Financial assets with cash flows that are solely payments of principal and
(ii) Contractual cash flow characteristics: solely payments of principal and  How the entity is run interest (SPPI) on the principal amount outstanding.
interest on the principal amount outstanding.  The objective of the business model as determined by key management Interest is consideration for only the time-value of money and credit risk.
Subsequent measurement personnel (KMP) (per IAS 24 Related Party Disclosures).
FOREX financial assets: assessment is made in the denomination currency (i.e.
Financial assets do not have to be held to contractual maturity in order to be deemed
Amortised cost using the effective interest method. FX movements are not taken into account).
to be held to collect contractual cash flows, but the overall approach must be

IFRS 9 contains various illustrative examples in the application of both the (i) Business Model Assessment and (ii) Contractual Cash Flow Characteristics.

(3) Fair value through other comprehensive income

Equity Instruments Debt Instruments

(2) Fair value through profit or loss
Note: Designation at initial recognition is optional and irrevocable. Category classification criteria
Category classification criteria Category classification criteria  meets the SPPI contractual cash flow characteristics test (see box (1)(ii) above)
 Financial assets that do not meet the amortised cost criteria (also includes assets  Entity holds the instrument to collect contractual cash flows and to sell the
Available only for investments in equity instruments (within the scope of IFRS 9)
held for trading). financial assets
that are not held for trading.
 Financial assets designated at initial recognition. The option to designate is Subsequent measurement
available if doing so eliminates, or significantly reduces, a measurement or Subsequent measurement
 Fair value, with all gains and losses (other than those relating to impairment,
 Fair value, with all gains and losses recognised in other comprehensive income which are included in profit or loss) being recognised in other comprehensive
Note: the option to designate is irrevocable.  Changes in fair value are not subsequently recycled to profit and loss income
Subsequent measurement  Dividends are recognised in profit or loss.  Changes in fair value recorded in other comprehensive income are recycled to
profit or loss on derecognition or reclassification.
Fair value, with all gains and losses recognised in profit or loss.

16
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Page 3 of 10
Periods beginning on or after 1 January 2018

IFRS 9 Financial Instruments

IMPAIRMENT OF FINANCIAL ASSETS

Scope Initial recognition

The impairment requirements are applied to: At initial recognition of the financial asset an entity recognises a loss allowance equal to 12 months expected credit losses which consist of expected credit losses
 Financial assets measured at amortised cost (incl. trade receivables) t impaired financial assets.
 Financial assets measured at fair value through OCI Subsequent measurement
 Loan commitments at below market interest rate
 Financial guarantees contracts which are not insurance contracts under the scope
of IFRS 17 Insurance Contracts
 Lease receivables. Stage 1 2 3
The impairment model follows a three-stage approach based on changes in
expected credit losses of a financial instrument that determine Impairment 12 month expected credit loss Lifetime expected credit loss
 the recognition of impairment, and
 the recognition of interest revenue. Effective interest on the gross carrying amount Effective interest on the net (carrying)
Interest
(before deducting expected losses) amount

THREE-STAGE APPROACH

STAGE 1 STAGE 2 STAGE 3

12 month expected credit losses (gross interest) Lifetime expected credit losses (gross interest) Lifetime expected credit losses (net interest)
 Applicable when no significant increase in credit risk  Applicable in case of significant increase in credit risk  Applicable in case of credit impairment
 Entities continue to recognise 12 month expected losses that are updated at  Recognition of lifetime expected losses  Recognition of lifetime expected losses
each reporting date  Presentation of interest on gross basis  Presentation of interest on a net basis
 Presentation of interest on gross basis

17
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Page 4 of 10
Periods beginning on or after 1 January 2018

IFRS 9 Financial Instruments

IMPAIRMENT OF FINANCIAL ASSETS (continued)

PRACTICAL EXPEDIENTS SIMPLIFIED APPROACH LOAN COMMITMENTS AND FINANCIAL GUARANTEES

30 days past due rebuttable Low credit risk instruments Short term trade receivables  The three-stage expected credit loss model also applies to these off balance
presumption sheet financial commitments
 Instruments that have a low risk of 
 An entity considers the expected portion of a loan commitment that will be
 Rebuttable presumption that credit default and the counterparties have  Expected credit losses on trade receivables can be calculated using
drawn down within the next 12 months when estimating 12 month expected
risk has increased significantly a strong capacity to repay (e.g. provision matrix (e.g. geographical region, product type, customer rating,
credit losses (stage 1), and the expected portion of the loan commitment that
when contractual payments are financial instruments that are of collateral or trade credit insurance, or type of customer)
will be drawn down over the remaining life the loan commitment (stage 2)
more than 30 days past due investment grade)  Entities will need to adjust the historical provision rates to reflect relevant
 For loan commitments that are managed on a collective basis an entity
 When payments are 30 days past  Instruments would remain in stage information about current conditions and reasonable and supportable
estimates expected credit losses over the period until the entity has the
due, a financial asset is considered 1, and only 12 month expected forecasts about future expectations.
practical ability to withdraw the loan commitment
to be in stage 2 and lifetime credit losses would be provided. Long term trade receivables and lease receivables
expected credit losses would be
recognised Entities have a choice to either apply:
 An entity can rebut this  the three-stage expected credit loss model; or
presumption when it has 
reasonable and supportable recognised.
information available that
demonstrates that even if payments
are 30 days or more past due, it
does not represent a significant
increase in the credit risk of a
financial instrument.

18
 Effective Date
Page 5 of 10
Periods beginning on or after 1 January 2018

IFRS 9 Financial Instruments

FINANCIAL LIABILITIES - SUBSEQUENT CLASSIFICATION AND MEASUREMENT

Financial Liabilities are classified as either: (1) Amortised Cost, (2) Fair value through profit or loss.
In addition, specific guidance exists for:
(i) Financial guarantee contracts, and (ii) Commitments to provide a loan at a below market interest rate
(iii) Financial Liabilities that arise when the transfer of a financial asset either does not qualify for derecognition or where there is continuing involvement.

(1) Amortised cost (2) Fair value through profit or loss (i) Financial guarantee contracts (iii) Financial liabilities resulting from the transfer
(ii) Commitments to provide a loan at a below of a financial asset
Category classification criteria Category classification criteria market interest rate (That does not qualify for derecognition)
All financial liabilities, except those that meet the  Financial liabilities held for trading
Subsequent measurement (the higher of either) (Where there is continuing involvement)
criteria of (2), (i), and (ii).  Derivative financial liabilities
Subsequent measurement  Financial liabilities designated at initial (i) The amount determined in accordance with IAS Financial liability for the consideration received is
recognition. The option to designate is 37 Provisions, Contingent Liabilities and recognised.
Amortised cost using the effective interest available: Contingent Assets
method. ‒ If doing so eliminates, or significantly Subsequent measurement
reduces, a measurement or recognition (ii) The amount initially recognised, less (when The net carrying amount of the transferred asset and
appropriate) cumulative amortisation recognised associated liability is measured as either:
‒ If a group of financial liabilities (or financial in accordance with IFRS 15 Revenue from
Contracts with Customers.  Amortised cost of the rights and obligations
assets and financial liabilities) is managed, retained (if the transferred asset is measured at
and evaluated, on a fair value basis, in amortised cost)
accordance with a documented risk  The fair value of the rights and obligations
management or investment strategy, and retained by the entity when measured on a stand-
information about the group is provided alone basis (if the transferred asset is measured at
internally to KMP. fair value).
Subsequent measurement
Fair value with all gains and losses being
recognised in profit or loss.

19
 Effective Date
Page 6 of 10
Periods beginning on or after 1 January 2018

IFRS 9 Financial Instruments

EMBEDDED DERIVATIVES

Definition and description Exclusions and exemptions (i.e. not embedded derivatives)
Embedded derivatives are components of a hybrid contract (i.e. a contract that also includes a non-  Non-financial variables that are specific to a party to the contract.
derivative host), that causes some (or all) of the contractual cash flows to be modified according to a  A derivative, attached to a financial instrument that is contractually transferable independently of that
specified variable (e.g. interest rate, commodity price, foreign exchange rate, index, etc.) instrument, or, has a different counterparty from that instrument.
‒ Instead, this is a separate financial instrument.
Embedded derivatives are accounted for differently depending on whether they are within a host contract that is a financial asset or a financial liability

Embedded derivatives within a financial asset

Embedded derivatives within a host contract that is a financial liability TRANSITION
host contract

The embedded derivative is not separated from Subject to meeting the adjacent Criteria: to separate an embedded Host contract (once embedded Retrospective application in
the host contract criteria, the embedded derivative is: derivative derivative is separated) accordance with IAS 8 Accounting
Instead, the whole contract in its entirety is  Separated from the host contract 1) Economic characteristics of the The (non-financial asset) host Policies, Changes in Accounting
accounted for as a single instrument in  Accounted for as a derivative in embedded derivative and host are contract is accounted for in Estimates and Errors, subject to certain
accordance with the requirements of IFRS 9. accordance with IFRS 9 (i.e. at fair not closely related accordance with the appropriate IFRS exemptions and reliefs (refer section
value through profit or loss). Accounting Standards. 7.2 of IFRS 9).
2) An identical instrument (with the
same terms) would meet the
definition of a derivative, and
3) The entire (hybrid) contract is not
measured at fair value through
profit or loss.

20
 Effective Date
Page 7 of 10
Periods beginning on or after 1 January 2018

IFRS 9 Financial Instruments

DERECOGNITION

FINANCIAL ASSETS FINANCIAL LIABILITIES

 A financial liability is derecognised on the settlement date (R) , which is the date when the liability is extinguished i.e.,
Consolidate all subsidiaries in accordance with IFRS 10 Consolidated Financial Statements. when the obligation specified in the contract is discharged, cancelled or it expires, or otherwise qualifies for
derecognition.
 An exchange between an existing borrower and lender of debt instruments with substantially different terms or
Determine whether the derecognition principles below are applied to all or part of the asset. substantial modification of the terms of an existing financial liability of part thereof is accounted for as an extinguishment
 The difference between the carrying amount of a financial liability extinguished or transferred to a 3rd party and the
consideration paid is recognised in profit or loss.
Have the rights to the cash flows from the asset YES Derecognise  Optional exception: A financial liability may be derecognised before the settlement date, when settling in cash using an
expired? the asset electronic payment system, only if the entity initiated a payment transaction resulting in:
 the entity having no practical ability to withdraw, stop or cancel the payment instruction

NO  the entity having no practical ability to access the cash to be used for settlement as a result of the payment
instruction; and
Has the entity transferred its rights to receive the
 the settlement risk associated with the electronic payment system being insignificant. (R)
cash flows from the asset?

NO
Has the entity assumed an obligation to pay the NO  If an entity transfers a financial asset in a transfer that qualifies for derecognition in its entirety and retains the right to
Continue to
cash flows from the asset that meets the conditions service the financial asset for a fee, it recognises either a servicing asset or liability for that servicing contract
YES recognise the asset
in IFRS 9 paragraph 3.2.5?  If, as a result of a transfer, a financial asset is derecognised, but the entity obtains a new financial asset or assumes a new
financial liability or servicing liability, the entity recognises the new financial asset, financial liability or servicing liability at
YES fair value
Has the entity transferred substantially all risks and YES Derecognise  On derecognition of a financial asset, the difference between the carrying amount and the sum of (i) the consideration
rewards? the asset received and (ii) any cumulative gain or loss that was recognised directly in equity is recognised in profit or loss.

NO
Has the entity retained substantially all risks and YES Continue to IFRS 9 paragraph 3.2.5 where an entity retains the contractual rights to receive the cash flows of a financial asset, but
rewards? recognise the asset assumes a contractual obligation to pay those cash flows to one or more entities, three conditions need to be met before an
entity can consider the additional derecognition criteria:
NO  The entity has no obligation to pay amounts to the eventual recipients unless it collects equivalent amounts from the

NO Derecognise original asset

Has the entity retained control of the asset?  The entity is prohibited by the terms of the transfer contract from selling or pledging the original asset other than as
the asset
YES security to the eventual recipients
 The entity has an obligation to remit any cash flows it collects on behalf of the eventual recipients without material delay.
The entity is not entitled to reinvest the cash flows except for the short period between collection and remittance to the
eventual recipients. Any interest earned thereon is remitted to the eventual recipients.

(R) AMENDMENTS AND STANDARDS ISSUED BUT NOT YET EFFECTIVE

This IFRS Accounting Standard includes amendments that were issued as at 31 December 2024 but were not yet mandatorily effective
21 details of these amendments, IFR Bulletin 2024/07. Note that certain amendments described in IFR Bulletin 2024/07 (e.g. modifications to the solely
payments of principal and interest test SPPI) are beyond the scope of IFRS Accounting Standards At a Glance, and therefore, are not reflected in this publication.
 Effective Date
Page 8 of 10
Periods beginning on or after 1 January 2018

IFRS 9 Financial Instruments

CRITERIA TO APPLY HEDGE ACCOUNTING (ALL CRITERIA MUST BE MET)

(i) Hedging Relationship (ii) Designation and Documentation (iii) All three hedge effectiveness requirements met
Must consist of: Must be formalised at the inception of the hedging relationship, includes: (a) An economic relationship exists between the hedged item and hedging instrument
 Eligible hedging instruments  The hedging relationship (b) Credit risk does not dominate changes in value
 Eligible hedged items.  Risk management strategy and objective for undertaking the hedge
(c) The hedge ratio is the is the same for both the:
 The hedged item and hedging instrument
 How hedge effectiveness will be assessed.  Hedging relationship
 Quantity of the hedged item actually hedged, and the quantity of the hedging instrument used to hedge it.

ELIGIBLE HEDGING INSTRUMENTS

Only those from contracts with EXTERNAL parties of the entity (or group), that are:

Derivatives measured at fair value through profit or loss (FVTPL). Non-derivatives measured at fair value through profit or loss (FVTPL).
Note: this excludes written options unless they are designated as an offset to a Note: this excludes FVTPL financial liabilities where FV changes from own credit risk are recognised in OCI.
purchased option. Note: In hedge of foreign currency risk, other financial instruments maybe designated.

Designation: An entity must designate a hedging instrument in full, except for:

 A proportion (e.g. 50%) of the nominal amount an entire hedging instrument (but not part of the fair value change resulting from a portion of the time period that the hedging instrument is outstanding)
 Option contracts: separating the intrinsic value and time value, and designating only the change in intrinsic value
 Forward contract: separating the forward element and spot element, and designating only the change in the spot element.

HEDGING OF GROUP ENTITY TRANSACTIONS REBALANCING

Hedging of group entity transactions is not applied in the consolidated financial statements of group entities, except for: If the hedge ratio hedge effectiveness test ceases to be met, but the risk management objective is unchanged, an entity

 Foreign currency risk on intra-group monetary items that are not fully eliminated on consolidation.
 Investment entities where transactions between the parent and subsidiaries measured at fair value are not subject to
elimination adjustments. DISCONTINUATION

Hedging of group entity transactions is able to be applied in separate/individual financial statements of group entities.
including hedging instrument sale / termination / expiration, but excluding:
HEDGING OF CONTRACTS REFERENCING NATURE-DEPENDENT ELECTRICITY (R)  Replacement/rollovers documented in the risk management objective
 Novations of hedging instruments (subject to specific criteria).
 An entity is permitted to designate as the hedged item a variable nominal amount of forecast electricity transactions
 The forecast transaction is presumed to be highly probable if the cash flows of the CRNE are conditional on the
occurrence of the forecast transaction. (R) AMENDMENTS AND STANDARDS ISSUED BUT NOT YET EFFECTIVE

This IFRS Accounting Standard includes amendments that were issued as at 31 December 2024 but were not yet
22 IFR
Bulletin 2025/01.
 Effective Date
Page 9 of 10
Periods beginning on or after 1 January 2018

IFRS 9 Financial Instruments

HEDGE ACCOUNTING (continued)

ELIGIBLE HEDGED ITEMS

Eligible hedged items are reliably measurable: assets; liabilities; unrecognised firm commitment; highly probable forecast transactions; net investment in a foreign operation. May be a single item, or a group of items (subject to additional criteria - below).

HEDGES OF A GROUP OF ITEMS (ALL CRITERIA MUST BE MET)

(i) All items and (and components) are eligible hedged items (iii) For group cash flow hedges: where cash flow variability is not expected to be approximately proportional to the overall group cash flows variability, both:
(ii) The items are managed as a group for risk management purposes.  Foreign currency is being hedged
 The reporting period, nature, and volume, in which the forecast transactions are expected to affect profit or loss is specified.

Designation: An entity can designate a hedged item (i) in full (ii) in part (component). If in part, only the following types of parts (components) of hedged items can be hedged:
 One or more selected contractual cash flows
 Parts (components) of a nominal amount
 Separately identifiable and reliably measureable changes (cash flow or fair value) that, based on the context of the market structure they relate to, are attributable to a specific risk(s).

ELIGIBLE HEDGED ITEMS

(i) Cash flow hedge (ii) Fair value hedge

Hedge of exposure to cash flow variability in cash attributable to a particular risk associated with an asset, liability, or highly Hedge of exposure to fair value variability in an asset, liability, or unrecognised firm commitment (or part thereof i.e.
probable forecast transaction (or part thereof i.e. component). component), attributable to a risk that could affect profit or loss.
Recognition Recognition
 Hedge effectiveness is recognised in OCI  Gain or loss on hedging instrument: recognised in profit or loss (unless the hedging instrument is an equity instrument
 Hedge ineffectiveness is recognised in profit or loss measured at fair value through OCI, then recognised in OCI).
 The lower of the cumulative gain or loss on the hedging instrument or fair value in the hedged item is recognised  Gain or loss on hedged item: recognised in profit or loss (unless the hedged item is an equity instrument measured at fair
separately within equity (cash flow hedge reserve (CFHR)). value through OCI, then recognised in OCI).
 For forecast transactions resulting in a non-financial asset/liability, the amount recognised in CFHR is removed and included
in the initial cost of the non-financial asset/liability. This is not accounted for as a reclassification. (iii) Hedges of a net investment in a foreign operation
 For all other forecast transactions, the amount recognised in CFHR is reclassified to profit or loss in the periods when the
cash flows are expected to affect profit or loss.
Recognition
 Hedge effectiveness is recognised in OCI
 Hedge ineffectiveness is recognised in profit or loss
 Upon disposal of the foreign operation, accumulated amounts in equity are reclassified to profit or loss.

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Periods beginning on or after 1 January 2018

IFRS 9 Financial Instruments

INTEREST RATE BENCHMARK REFORM PHASE 1: AMENDMENTS TO IFRS 9, IAS 39 AND IFRS 7

In response to the uncertainty arising from the phasing out of Inter Bank Offered Rates (IBORs), the IASB has published Interest
The amendments affect specific hedge accounting requirements in IFRS 9:
 When assessing whether a forecast transaction is highly probable or whether a hedged future cash flow is expected to occur assume that IBOR-based contractual terms are not altered as a result of IBOR Reform.
 When making prospective effectiveness assessments (an economic relationship under IFRS 9), assume that the IBOR-based contractual cash flows from the hedging instrument and the hedged item are not altered
as a result of IBOR Reform
 As long as a non-contractually specified IBOR risk component meets the separately identifiable requirement at inception of the hedge accounting relationship, hedge accounting should be continued
 When an entity frequently resets a hedge accounting relationship in a macro hedge, the non-contractually specified IBOR risk component only needs to meet the separately identifiable requirement at the point the
hedged item was initially designated within that hedge accounting relationship
The amendments are to be applied retrospectively for accounting periods beginning on or after 1 January 2020 with earlier application permitted. However, it is important to note that retrospective application in this
context applies only to:
 Those hedge accounting relationships that existed at the beginning of the reporting period in which the amendments have first been applied (or were designated thereafter), and
 Amounts recognised in the cash flow hedge reserve that existed at the beginning of the reporting period in which the amendments have first been applied.
The amendments are limited in time until the uncertainty arising from interest rate benchmark reform is no longer present. Phase 2 (see below) begins once Phase 1 is completed.

INTEREST RATE BENCHMARK REFORM PHASE 2: AMENDMENTS TO IFRS 9, IAS 39, IFRS 7 AND IFRS 16

In response to the effects of interest benchmark rates being replaced, the IASB has published Interest Rate Benchmark Reform: Am
end once phase 2 commences, which is when the uncertainty relating to interest rate benchmark reform ceases to exist and changes to contractual cash flows take effect.
The amendments affect specific accounting requirements, primarily relating to the subsequent measurement requirements of IFRS 9 and IFRS 16. The amendments modify the requirements of these standards when
there is a change in the basis for determining contractual cash flows of financial assets, financial liabilities and lease liabilities. Interest rate benchmark reform may result in changes to these contractual cash flows,
where absent these amendments, an immediate effect would be recorded in profit or loss when the change in contractual cash flows occurs. This is because the revised contractual cash flows would be discounted at
the original effective interest rate of the related financial instrument or lease liability. Instead, to the extent that a change in interest rate arises directly as a result of interest rate benchmark reform, this is reflected in a
revised effective interest rate meaning that no gain or loss arises.
The amendments also modify the hedge accounting requirements of IFRS 9. Hedge relationships addressed by the Phase 1 amendments may have their designated hedging relationships revised once the uncertainty
relating to interest rate benchmark reform is resolved, without a requirement for hedge accounting to be discontinued.

The amendments are to be applied retrospectively for accounting periods beginning on or after 1 January 2021 with earlier application permitted.

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Periods beginning on or after 1 January 2013

IFRS 10 Consolidated Financial Statements

SCOPE THE CONTROL MODEL

A parent is required to present consolidated financial statements, except if: Model Considerations (refer to subsequent pages)
An investor determines whether it is a parent by assessing  The purpose and design of the investee
‒ It meets all the following conditions:
whether it controls the investee. An investor is required  What the relevant activities are and how decisions about
‒ It is a subsidiary of another entity and all its other owners, including those not otherwise entitled to vote, have been
continuously to reassess whether it controls an investee. An those activities are made
informed about, and do not object to, the parent not presenting consolidated financial statements
investor controls an investee if it has all of the following:  Whether the rights of the investor give it the current ability to
‒ Its debt or equity instruments are not traded in a public market
 Power over the investee direct the relevant activities
‒ It did not, nor is in the process of filing, financial statements for the purpose of issuing instruments to the public
 Exposure, or rights, to variable returns from its involvement  Whether the investor is exposed, or has rights, to variable
‒ Its ultimate or any intermediate parent produces IFRS Accounting Standards compliant consolidated financial
with the investee returns from its involvement
statements available for public use.
 The ability to use its power, to affect the amount of the  Whether the investor has the ability to use its power to affect
 It is a post or long term-employment benefit plan to which IAS 19 Employee Benefits applies
 It meets the criteria of an investment entity (see subsequent pages).

(i) Purpose and design

In assessing the purpose and design of the investee, consider:
 The relevant activities
 How decisions about relevant activities are made
 Who has the current ability to direct those activities
 Who receives returns from those activities.
In some cases, voting rights (i.e. if unrelated to relevant activities) may not be the dominant factor of control of the investee.

(ii) Relevant activities

Relevant activities include (but are not limited to):
 Selling and purchasing of goods or services
 Managing financial assets during their life
 Selecting, acquiring or disposing of assets
 Researching/developing new products or processes
 Determining a funding structure or obtaining funding.
Decisions on relevant activities include (but are not limited to):
 Establishing operating and capital decisions & budgets


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IFRS 10 Consolidated Financial Statements

THE CONTROL MODEL (continued)

(iii) Rights to direct relevant activities

Rights that, either individually or in combination, can give an investor power include (but are not limited to):
 Rights in the form of voting rights (or potential voting rights) of an investee
 ability to direct the relevant activities
 Rights to direct the investee into (or veto any changes to) transactions for the benefit of the investor
 Other rights (such as decision-making rights specified in a management contract) that give the holder the ability to direct the relevant activities.
Special relationships beyond a passive interest Voting rights
 Sometimes there may be indicators present that an investor has more than simply a passive interest Power with a majority of voting rights, occurs where:
 The presence of indicators alone may not satisfy the power criteria, but may add to other considerations:  Relevant activities are directed by vote; or
‒  A majority of the governing body is appointed by vote.
‒ Investee operations are dependent on the investor (e.g. funding, guarantees, services, materials, etc.) Majority of voting right but no power occurs where:
‒ A significant portion of the investee activities involve, or are conducted on behalf of, the investor  Relevant activities are not directed by vote
‒  Such voting rights are not substantive.

Substantive rights De-facto control

 Only substantive rights (i.e. rights that can be practically exercised) are considered in assessing power
Power without a majority of voting rights, occurs where:
 Contractual arrangements with other vote holders exist
 Factors to consider whether rights are substantive include (but are not limited to):
‒ Whether there are barriers that prevent the holder from exercising (e.g. financial penalties, detrimental exercise or conversion price, detrimental terms and conditions, laws and  Relevant activities directed by arrangements held
 The investor has practical ability to unilaterally direct relevant activities,
regulations)
‒ Whether there is a practical mechanism to facilitate multiple parties exercising rights considering all facts and circumstances:
‒ Whether the party holding the rights would benefit from the exercise of those rights ‒ Relative size and dispersion of other vote holders
‒ Whether the rights are actually exercisable when decisions about relevant activities need to be made. ‒ Potential voting rights held by the investor and other parties
‒ Rights arising from contractual arrangements
Protective rights ‒ Any additional facts or circumstances (i.e. voting patterns).
 Are designed to protect the interests of the holder, but do not give the holder power over the investee, e.g. operational lending covenants; non-controlling interest rights to Potential voting rights
approve significant transactions of capital expenditure, debt, and equity; seizure of assets by a borrower upon default  Potential voting rights are only considered if substantive
 Franchise arrangements are generally considered protective rights.  Must consider the purpose and design of the instrument.

(iv) Exposure, or rights, to variable returns (i.e. returns are not fixed, and vary as a result of performance of an investee)
Based on the substance of the arrangement (not the legal form) assesses whether investee returns are variable, and how variable they are. Variable returns can be: only positive; only negative; or both positive and negative. Including:
 Dividends, other distributions of economic benefits from an investee (e.g. interest from debt securities issued by the investee)
 Fees from servicing assets or liabilities, fees and exposure to loss from providing credit or liquidity support, residual interests in net assets on liquidation, tax benefits, and access to future liquidity
 Returns unavailable to other interest holders synergies, economies of scale, cost savings, sourcing scarce products, access to

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Periods beginning on or after 1 January 2013

IFRS 10 Consolidated Financial Statements

(v) Link between power and returns delegated power INVESTMENT ENTITIES

 When an investor with decision-making rights (a decision maker (DM)) assesses whether it controls an investee, it determines whether it is a principal or an agent. An agent is primarily engaged to act on Investment entities are required to measure interests
behalf of the principal and therefore does not control the investee when it exercises its decision-making authority in subsidiaries at fair value through profit or loss in
 An investor may delegate its decision-making authority to an agent on specific issues or on all relevant activities. When assessing whether it controls an investee, the investor treats the decision-making accordance with IFRS 9 Financial Instruments instead
rights delegated to its agent as held by itself directly of consolidating them.
 A DM considers the relationship between itself, the investee and other parties involved, in particular the following factors below, in determining whether it is an agent. Definition of an investment entity
 Obtains funds from one or more investors for the
purpose of providing those investor(s) with
investment management services
 Commits to its investor(s) that its business purpose

Scope of decision making authority Rights held by other parties Remuneration Returns from other interests is to invest funds solely for returns from capital
appreciation, investment income, or both
 Measures and evaluates performance of

Activities permitted in agreements and  The greater the magnitude of, and variability An investor may hold other interests in an investee (e.g. substantially all of its investments on a fair value
specified by law: relevant activities investments, guarantees). In evaluating its exposure to basis.
 Discretion available on making decisions  Removal rights, or other rights, may returns, the more likely the DM is a principal. variability of returns from other interests in the investee the Other typical characteristics (not all have to be met,
 Purpose and design of the investee: indicate that the DM is an agent following are considered: but if not met additional disclosures are required):
‒ Risks the investee was designed to be  Rights to restrict activities of the DM  The greater the magnitude of, and variability associated  More than one investment
 Remuneration is commensurate with the
exposed to are treated the same as removal with, its economic interests, considering its remuneration  More than one investor
services provided
‒ Risks to be passed to other involved rights. and other interests in aggregate, the more likely the DM is  Investors not related parties of the entity
 The remuneration includes only terms
parties a principal  Ownership interests in the form of equity or similar
customarily present in arrangements for similar
‒ Level of involvement of DM in design of  Whether the variability of returns is different from that of interests.
services and level of skills negotiated on an
the investee. other investors and, if so, whether this might influence
actions.

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Periods beginning on or after 1 January 2013

IFRS 10 Consolidated Financial Statements

RELATIONSHIP WITH OTHER PARTIES CONTROL OF SPECIFIED ASSETS (SILOS) CONSOLIDATION PROCEDURES

In assessing control an investor considers the nature of An investor considers whether it treats a portion of an investee as a deemed separate entity and whether it controls it. Control exists Consolidation procedures:
relationships with other parties and whether they are acting on the if and only if, the following conditions are satisfied:  Combine assets, liabilities, income, expenses, cash
(i) Specified assets of the investee (and related credit enhancements, if any) are the only source of payment for specified liabilities of, flows of the parent and subsidiary
Such a relationship need not have a contractual arrangement, or specified other interests in, the investee 
examples may be: (ii) Parties other than those with the specified liability do not have rights or obligations related to the specified assets or to residual
 cash flows from those assets  Fully eliminate intra group transactions and
 A party whose interest in the investee is through a loan from the (iii) In substance, returns from the specified assets cannot be used by the remaining investee and none of the liabilities of the deemed balances.
investor separate entity are payable from the assets of the remaining investee. Parent and subsidiaries must have uniform
 A party who has agreed not to sell, transfer, or encumber its Thus, in substance, all the assets, liabilities and equity of that deemed a separate entity are ring-fenced from the overall investee. accounting policies and reporting dates. If not,
interests in the investee without the approval of the investor alignment adjustments must be quantified and
 A party that cannot fund its operations without investor (sub- posted to ensure consistency.
ordinated) support Reporting dates cannot vary by more than 3 months.
 An investee where the majority of the governing body or key Consolidation of an investee begins from the date the
management personal are the same as that of the investor LOSS OF CONTROL investor obtains control of the investee and ceases
 A party with a close business relationship with the investor. when the investor loses control of the investee.
 Derecognition of the assets and liabilities of the former subsidiary from the consolidated statement of financial position
 Recognition of any investment retained in the former subsidiary at its fair value when control is lost and subsequently accounts for
NON-CONTROLLING INTERESTS it and for any amounts owed by or to the former subsidiary in accordance with relevant IFRS Accounting Standards.
 A parent presents non-controlling interests in the consolidated DISCLOSURE
statement of financial position within equity, separately from the Subsidiary constitutes a business Subsidiary does not constitute a business
equity of the owners of the parent  Recognition of the gain or loss  Recognition of the gain or loss in profit or loss to the extent of the unrelated investors Refer to IFRS 12
 associated with the loss of interest in the associate or joint venture. The remaining part is eliminated against the Disclosure of Interests in Other Entities.
not result in the parent losing control of the subsidiary are equity control in profit or loss. carrying amount of the investment
transactions.  Retained interest is an associate or joint venture using the equity method: Recognition of the
gain or loss in profit or loss to the extent of the unrelated investors TRANSITION REQUIREMENTS
 Retained interest accounted for at fair value in accordance with IFRS 9: Recognition of the
gain or loss in full in profit or loss. Refer to Appendix C of IFRS 10.

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Periods beginning on or after 1 January 2013

IFRS 11 Joint Arrangements

SCOPE

IFRS 11 applies to all parties subject to a joint arrangement. A joint arrangement (JA): Joint arrangements are classified either as:
 Binds the parties by way of contractual agreement (does not have to be in writing, instead it is based on the  Joint operation - parties have rights to the assets, and obligations for the liabilities of the JA
substance of the dealings between the parties)  Joint venture - parties have rights to only the net assets of the JA.
 Gives two (or more) parties joint control.

JOINT CONTROL (JOINT DE-FACTO CONTROL, SUBSTANTIVE RIGHTS, PROTECTIVE RIGHTS)

Joint control Joint de-facto control

Joint control is based on the same control principle as IFRS 10 Consolidated Financial Statements (i.e. Power, Joint de-facto control is based on the same de-facto control principle as IFRS 10. Joint de-facto control only
exposure to variable returns, ability to use power to affect variable returns). exists if the parties are contractually bound to vote together in relation to decisions on relevant activities. In
Joint control is the contractually agreed sharing of control in relation to decisions regarding the relevant assessing joint de-facto control, an entity may consider previous voting attendance, but not previous voting
activities and requires the unanimous consent of the controlling parties (refer to IFRS 10 for definition of results (i.e. whether other parties historically voted the same way as the entity).
relevant activities). This can be explicit or implicit: Substantive and protective rights
 E.g. joint control exists if two parties hold 50% voting rights, and a 51% majority is required to make decisions The assessment of substantive and protective rights is based on the same principles as IFRS 10:
regarding relevant activities
 E.g. joint control does not exists if, after considering all contractual agreements, the minimum required  Substantive rights (rights that can be practically exercised) are considered in assessing power
majority of voting rights can be achieved by more than one combination of parties agreeing together.  Protective rights (rights designed to protect the interests of the holder) are not considered in assessing
power.

Arrangements are not within the scope of IFRS 11 if joint control (or joint de-facto control) does not exist (i.e. no contractual unanimous consent required for decisions that relate to the relevant activities of the arrangement).

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IFRS 11 Joint Arrangements

CLASSIFICATION OF JOINT ARRANGEMENTS (AS EITHER JOINT OPERATIONS OR JOINT VENTURES)

e; (ii) Legal form; (iii) Contractual terms; (iv) Other facts and circumstances (refer to boxes below).

(i) Structure
(i) Joint Arrangement structure
JAs not structured through a separate vehicle are classified as a joint operation.
JAs structured through a separate vehicle may be classified as a either a joint operation or joint venture depending on analysis of (i),(ii),(iii) below.

No separate vehicle Separate vehicle

(ii) Legal form

The legal form of the separate vehicle may be relevant in determining whether parties have rights to assets and obligations for liabilities, or the rights to net
assets of the JA. However, must consider whether any contractual terms (iii) and/or other facts and circumstances (iv) impact the rights of the parties conferred
Consider the following: by the legal form.
(ii) Legal form
Partnerships: legal form that may give the parties rights to assets and Unlimited liability vehicles: Legal form does not give parties rights to assets,
(iii) Contractual terms liabilities, rather than net assets. JA therefore may be classified as a joint merely guarantees liabilities. JA is therefore classified as a joint venture.
(iv) Other facts and operation or joint venture depending on the rights and obligations that the
circumstances parties to the arrangement have and the legal environment of in the country
of incorporation.

(iii) Contractual terms (iv) Other facts and circumstances

Usually, the rights and obligations agreed in the contractual terms are Other facts and circumstances may:
consistent, or do not conflict, with those conferred by legal form (ii).  Give parties rights to substantially all economic benefits from the JA
 Cause the JA to depend on the parties to continuously settle its liabilities.
Joint operation Joint venture However parties must assess contractual terms to confirm it is in fact the case.
E.g. JAs designed to primarily sell output to the parties give the parties
On their own, guarantees provided to third parties, and obligations for unpaid
substantially all economic benefits, and means the JA relies on cash flows
or additional capital do not result in an obligation for liabilities and hence
from the parties to settle its liabilities. JA is therefore classified as a joint
classification as a joint operation.
operation.

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IFRS 11 Joint Arrangements

RECOGNITION AND MEASUREMENT: JOINT CONTROLLING PARTIES

Joint operations Joint ventures

Consolidated/Individual Financial Statements Consolidated/Individual Financial Statements

A joint operator recognises in relation to interest in a joint operation: Apply the equity method in accordance with IAS 28 Investments in Associates and Joint Ventures (unless the
a) Its assets, including its share of any assets held jointly entity is exempted from applying the equity method)1.
b) Its liabilities, including its share of any liabilities incurred jointly
Separate Financial Statements
c) Its revenue from the sale of its share of the output arising from the joint operation
Recognise interest either:
d) Its expenses, including its share of any expenses incurred jointly.
 At cost
The above are accounted for in accordance with the applicable IFRS Accounting Standards.  As a financial asset in accordance with IFRS 9 Financial Instruments
 Using the equity method as described in IAS 28 Investments in Associates.
Separate Financial Statements
Same treatment as for consolidated/individual financial statements detailed above.

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IFRS 11 Joint Arrangements

- 1 Equity method exemption

In some instances, there may be other parties who are investees in a joint arrangement but do not themselves have joint control of the joint arrangement. Venture capital organisation, mutual funds, unit trusts,
investment-linked insurance funds, and similar
entities may elect to measure associates and joint
Joint operations Joint operations ventures at fair value through profit or loss in
(non-joint controlling party has contractual rights and obligations to (non-joint controlling party does not have contractual rights and obligations to accordance with IFRS 9 Financial Instruments rather
than apply the equity method.
assets, liabilities, expenses, and revenues) assets, liabilities, expenses, and revenues)

Account for its contractual share of assets, liabilities, expenses, and revenues in both its Consolidated/Individual Financial Statements
 Consolidated/Individual financial statements Assess for significant influence in accordance with IAS 28 (i.e. as an associate):
 Separate financial statements.  If present: apply the equity method1 in accordance with IAS 28 (unless the entity is exempted from
applying the equity method).
 If not present: financial asset (IFRS 9).
Joint ventures DISCLOSURE
Separate Financial Statements
Identical to joint operations where the non-joint controlling party does not have contractual rights Refer to IFRS 12 Disclosure of Interests in Other
and obligations to assets, liabilities, expenses and revenues (i.e. assess for significant influence, Assess for significant influence in accordance with IAS 28: Entities.
and then account for accordingly).  If present: either (i) at cost (ii) financial asset (IFRS 9) (iii) equity method (IAS 28)
 If not present: financial asset (IFRS 9).

JOINT OPERATION AND BUSINESS COMBINATION

 An entity is required to apply all of the principles of IFRS 3 Business Combinations when it acquires an interest in a joint operation that constitutes a business as defined by IFRS 3.
 A joint operator might increase its interest in a joint operation in which the activity of the joint operation constitutes a business, as defined in IFRS 3, by acquiring an additional interest in the joint operation. In such cases, previously held interests in the joint
operation are not remeasured if the joint operator retains joint control.

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Periods beginning on or after 1 January 2013

IFRS 12 Disclosure of Interests in Other Entities

SCOPE DEFINITIONS SIGNIFICANT JUDGEMENTS AND
ASSUMPTIONS
Applied by entities that have an interest in: Subsidiaries; joint Structured entity - An entity that has been designed so that voting or similar rights are not the dominant factor
arrangements, associates; and unconsolidated structured in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the Disclose information about significant
entities. relevant activities are directed by means of contractual arrangements. judgements and assumptions the
made (and changes to those
IFRS 12 does not apply to: Income from a structured entity Includes (but not is limited to) fees, interest, dividends, gains or losses on
judgements and assumptions) in
Post-employment benefit plans or other long-term employee the remeasurement or derecognition of interests in structured entities and gains or losses from the transfer of
 determining:
benefit plans to which IAS 19 Employee Benefits applies assets and liabilities to the structured entity.
 Control over another entity
 Separate financial statements, where IAS 27 Separate Interest in another entity - Refers to contractual and non-contractual involvement that exposes an entity to
 Joint control over an arrangement
Financial Statements applies variability of returns from the performance of the other entity. Evidenced by holding: debt instruments, equity
 Significant influence over another
 An interest held by an entity that participates in, but does not instruments, and other forms of involvement.
entity
have joint control or significant influence over, a joint The following terms used in IFRS 12 are defined in IAS 27 Separate Financial Statements, IAS 28 Investments  When a joint arrangement has been
arrangement in Associates and Joint Ventures IFRS 10 Consolidated Financial Statements, and IFRS 11 Joint Arrangements: structured through a separate
 Interests accounted for in accordance with IFRS 9 Financial
Associate; consolidated financial statements; control of an entity; equity method; group; joint arrangement; vehicle, its classification (i.e. joint
Instruments, except for Interests in an associate or joint venture 
joint control; joint operation; joint venture; non-controlling interest (NCI); parent; protective rights; relevant operation or joint venture).
measured at fair value as required by IAS 28 Investments in
Associates and Joint Ventures. activities; separate financial statements; separate vehicle; significant influence; and subsidiary.
Some, but not all, disclosure requirements apply to interests
classified as held for sale in accordance with IFRS 5.

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IFRS 12 Disclosure of Interests in Other Entities

(a) INTERESTS IN SUBSIDIARIES REQUIRED DISCLOSURES

(i) Composition of the group and NCI interests in (ii) Nature and extent of restrictions (iii) Nature of risks in consolidated structured entities
To understand: group activities Significant restrictions on ability to access or use the (CSE)

(i) The composition of the group and the interest that Composition of the group assets and settle the liabilities of the group, such as: Terms of any contractual arrangements that could
 Those that restrict the ability to transfer cash or require the parent or its subsidiaries to provide
other assets to (or from) other entities within the financial support to a CSE.
To evaluate:  Name of the subsidiary
 Principal place of business and country of group If financial or other support has been provided to a
(ii) The nature and extent of significant restrictions on  Guarantees or other requirements that may restrict CSE in the absence of a contractual obligation to do
the ability to access or use assets, and settle incorporation of the subsidiary
 Proportion of ownership interests held by NCI dividends and other capital distributions being paid, so:
liabilities, of the group or loans and advances being made or repaid, to (or
 Proportion of NCI voting rights, if different from the  The type and amount of support provided, including
(iii) The nature of, and changes in, the risks associated proportion of ownership interests held from) other entities within the group. obtaining financial support, and
with interests in consolidated structured entities  Profit or loss allocated to non-controlling interests of  The reasons for providing the support.
(iv) The consequences of changes in ownership the subsidiary during the reporting period The nature and extent to which protective rights of If financial (or other) support has been provided to a
interest in a subsidiary that do not result in a loss of  Accumulated NCI of the subsidiary at the end of the previously unconsolidated structured entity that
control reporting period access or use the assets and settle the liabilities of the resulted in control, explanation of the relevant factors
 Summarised financial information about the group. in reaching that decision.
(v) The consequences of losing control of a subsidiary
subsidiary. The carrying amounts of the assets and liabilities to
during the reporting period. Any current intentions to provide financial (or other)
which those restrictions apply. support to a consolidated structured entity (including
any intentions to assist in obtaining financial support).
(v) Consequences of losing control of a subsidiary
subsidiary that do not result in a loss of control Disclose the gain or loss, if any, and:
Present a schedule showing the effects on the equity (attributable to owners  The portion of that gain or loss attributable to measuring any investment retained in
of the parent) of any changes in ownership interest that do not result in a loss the former subsidiary at its fair value at the date when control is lost
of control.  The line item(s) in profit or loss in which the gain or loss is recognised.

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IFRS 12 Disclosure of Interests in Other Entities

(b) INTERESTS IN JOINT ARRANGEMENTS AND ASSOCIATES REQUIRED DISCLOSURES

Information that enables users to evaluate:

(i) The nature of, and changes in, risks associated with interests held Commitments relating to joint ventures
(ii) The nature, extent, and financial effects of interests in joint arrangements and associates (including contractual relationships with Contingent liabilities incurred relating to joint ventures or associates (including its share of contingent liabilities incurred jointly with
the other investors with joint control or significant influence). other investors), unless the probability of loss is remote.

 The name of the joint arrangement or associates 

 ‒ In aggregate for all individually immaterial joint ventures
 The principal place of business (and country of incorporation, if applicable and different from the principal place of business) of ‒ In aggregate for all individually immaterial associates.
the joint arrangement or associate  The nature and extent of any significant restrictions on the ability of joint ventures or associates to transfer funds to the entity in
 The proportion of ownership interest or participating share held by the entity and, if different, the proportion of voting rights held the form of cash dividends, or to repay loans or advances made by the entity
(if applicable)  ty
 Measurement: whether equity method or at fair value method:
 If measured using equity method: the fair value of its investment in the joint venture or associate (if a quoted market price is ‒ The date of the end of the reporting period of the financial statements of that joint venture or associate.
available) ‒ The reason for using a different date or period.
 Summarised financial information about the joint venture or associate.  The unrecognised share of losses of a joint venture or associate, both for the reporting period and cumulatively, if the entity has
stopped recognising its share of losses of the joint venture or associate when applying the equity method.

(c) INTERESTS IN UNCONSOLIDATED STRUCTURED ENTITIES (UCSE) REQUIRED DISCLOSURES

(i) Nature of interests (ii) Nature of risks

To understand: Qualitative and quantitative information, including (but not limited to): Disclose in tabular format (unless another format is more appropriate) a summary of:
(i) The nature and extent of its  Nature, purpose, size and activities of the structured entity and how the  The carrying amounts of the assets and liabilities recognised in its financial statements relating to interests in UCSE.
interests in UCSE. structured entity is finance  The line items in the statement of financial position in which those assets and liabilities are recognised
If an entity has sponsored UCSE, for which it does not provide information (e.g.  xposure to
To evaluate:
because it holds no interest at reporting date), disclose: loss is determined. If an entity cannot quantify its maximum exposure to loss from its interests in UCSE it is required to disclose that fact and
(ii) The nature of, and changes in, the the reasons
 How it has determined which structured entities it has sponsored
risks associated with its interests in  A comparison of the carrying amounts of the assets and liabilities of the entity that relate to its interests in UCSE and the en
 Income from those structured entities during the reporting period, including
UCSE. exposure to loss from those entities.
a description of types of income presented
Including, information about the If during the reporting period an entity has, without having a contractual obligation to do so, provided financial (or other) support to an UCSE in
 The carrying amount (at the time of transfer) of all assets transferred to
exposure to risk from involvement in which it previously had or currently has an interest, disclose:
those structured entities during the reporting period.
previous periods (even if the entity no An entity is required to present the information above:  The type and amount of support provided, including situations in which the entity assisted the structured entity in obtaining financial
longer has any contractual support
 In tabular format (unless another format is more appropriate)
involvement with the entity at  The reasons for providing the support.
 Classify its sponsoring activities into relevant categories.
reporting date). An entity is required to disclose any current intentions to provide financial or other support to UCSE, including intentions to assist the
structured entity in obtaining financial support.

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Periods beginning on or after 1 January 2013

IFRS 13 Fair Value Measurement

SCOPE AND SCOPE EXEMPTIONS DEFINITION OF FAIR VALUE

IFRS 13 applies when another IFRS Accounting Standard requires or permits fair Fair Value: The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
value measurements (both initial and subsequent) or disclosures about fair value participants at the measurement date.
measurements, except as detailed below:
Price Asset or liability Transaction Market participants
Exemption from both measurement and disclosure requirements:
 Share-based payment transactions within the scope of IFRS 2 Share-based
The price is determined at Fair value considers specific Is assumed to takes place either Fair value of an asset or liability
Payment measurement date under characteristics: in: is measured using the
 Leasing transactions within the scope of IFRS 16 Leases
current market conditions (i.e. an  Asset condition and location  The principal market (i.e. assumptions that market
 Measurements that have some similarities to fair value, but are not fair value,
exit price). market with the greatest participants would use when
such as: This is regardless of whether  Any restrictions on the sale. volume and level of activity), pricing the asset or liability
‒ Net realisable value in IAS 2 Inventories that price is directly observable or in the absence of a (assuming they act in their own
‒ Value-in-use in IAS 36 Impairment of Assets. or estimated using another principal market economic best interest)
Exemption from disclosure requirements only: valuation technique.  The most advantageous Market participants do not need
 Plan assets measured at fair value in accordance with IAS 19 Employee Benefits
market (i.e. the market that to be identified.
 Retirement benefit plan investments measured at fair value in accordance with
maximises /minimises the
IAS 26 Accounting and Reporting by Retirement Benefit Plans amount received/ paid, after
 Assets for which recoverable amount is fair value less costs of disposal in
transaction and transport
accordance with IAS 36. costs).

APPLICATION TO NON-FINANCIAL ASSETS

Highest and best use (HBU) Valuation premise stand alone Valuation premise combination

Fair value measurement of non-financial assets considers a market If the HBU of the asset is to use it on a stand-alone basis: If the HBU is in combination with other assets:
ability (not  Fair value is the price that would be received in a current  Fair value is the price that would be received in a current sale. to
 Generate economic benefits by using the asset in its HBU transaction to sell the asset to market participants that would market participants. assuming the asset will be used in combination
 Sell the asset to another market participant who would then use the asset in use the asset on a stand-alone basis with those assets (which are also assumed to be available to the
its HBU. market participants).

Factors to consider in determining HBU:

 Physically possible
 Legally permitted
 Financially viable.

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IFRS 13 Fair Value Measurement

APPLICATION TO LIABILITIES AND AN

General principles Whether held (or not held) by other parties as assets

Liabilities: Assume that these would remain outstanding and the When a quoted price for the transfer of an identical (or a similar) liability or When a quoted price for the transfer of an identical (or a similar) liability or
market participant transferee would be required to fulfil the
obligation. The liability would not be settled with the counterparty or item is held by another party as an asset: item is not held by another party as an asset:
otherwise extinguished on the measurement date.  Measure the fair value of from the perspective of a market participant that  Measure the fair value using a valuation technique from the perspective
: Assume that these would remain holds the identical item as an asset at the measurement date, by: of a market participant that either:
outstanding and the market participant transferee would take on the ‒ Using the quoted price in an active market for the identical item, or if ‒ Owes the liability
rights and responsibilities associated with the instrument. The not available ‒ Has issued the claim on equity.
instrument would not be cancelled or otherwise extinguished on ‒ Using other observable inputs, or if not available
measurement date. ‒ Using another valuation technique (i.e. income approach, or market
approach).

Restriction preventing transfer Whether held (or not held) by other parties as assets

The inclusion of a separate input (or an adjustment to other inputs) Non-performance risk (NPR) Liabilities with a demand feature
relating to the existence of a restriction that prevents the transfer of 
not permitted  NPR is assumed to be the same before and after the transfer of the liability Fair value is not less than the
when determining fair value.  amount payable on demand,
The effect of such a restriction is either implicitly or explicitly obligation will or will not be fulfilled. That effect may differ depending on the liability, for example: discounted from the first date that
included in the other inputs to the fair value measurement. ‒ Whether the liability is an obligation to deliver cash (a financial liability), or an obligation to deliver goods or the amount could be required to be
services (a non-financial liability) paid.
‒ The terms of credit enhancements related to the liability, if any.

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Periods beginning on or after 1 January 2013

IFRS 13 Fair Value Measurement

APPLICATION TO FINANCIAL ASSETS AND FINANCIAL LIABILITIES WITH OFFSETTING POSITIONS IN MARKET RISKS OR COUNTERPARTY CREDIT RISK

An entity that holds a group of financial assets and financial Offsetting exemption (i) Exposure to market risk (ii) Exposure to credit risk
liabilities is exposed to:
(i) Market risks
Can only be used if the entity does all the following: When using the offsetting exception: When using the offsetting exception:
(ii) Credit risk of each of the counterparties.
 Manages the offset group on the basis of net exposure to a  Apply the price within the bid-ask spread that is most 
If these are managed on either a market risk or a credit risk
particular market risk (or risks) or to the credit risk of a
net exposure basis:
net exposure to those market risks entity in the fair value measurement when market participants
 documented risk management or investment strategy.  Ensure that the market risk (or risks) within the offset group would take into account any existing arrangements that
 Provides information on that basis about the offset group to are substantially the same: mitigate credit risk exposure in the event of default.
would be based on the price: ‒ Any basis risk resulting from the market risk parameters not
‒ Received to sell a net long position (i.e. an asset) for a Related Party Disclosures. being identical are taken into account in the fair value about the likelihood that such an arrangement would be legally
particular risk exposure, or  Is required (or has elected) to measure the offset group at fair measurement of the financial assets / liabilities within the
enforceable in the event of default.
‒ To transfer a net short position (i.e. a liability) for a value in the statement of financial position at the end of each offset group
particular risk exposure in an orderly transaction reporting period. ‒
between market participants. particular market risk (or risks) arising from the financial
The exception does not relate to presentation.
assets and financial liabilities of the offset group must be
liabilities is made consistently with how market participants IAS 8 Accounting Policies, Changes in Accounting Estimates and substantially the same.
would price the net risk exposure. Errors must be applied when using the offsetting exception.

FAIR VALUE AT INITIAL RECOGNITION FAIR VALUE HIERARCHY RECURRING OR NON-RECURRING UNIT OF ACCOUNT

The transaction price is the price paid / received to acquire an IFRS 13 includes a fair value hierarchy that categorises the IFRS 13 requires specific disclosures based on whether fair value In most cases, the unit of account is not specified by
asset or to assume a liability (i.e. entry price). inputs to valuation techniques used to measure fair value into measurement is recurring (RFVM) or non-recurring (NRFVM). IFRS 13.
three (input) levels: RFVM and NRFVM are not defined in IFRS 13.
In contrast, fair value is the price that would be received to sell Instead, the unit of account is specified by the IFRS that
 Level 1: Observable quoted prices, in active markets However, in general:
the asset or paid to transfer the liability (i.e. exit price). permits or requires fair value measurement and
 Level 2: Quoted prices are not available but fair value is  RFVM: Fair value measurement is required at reporting date by other
disclosure of the item.
However, in many cases the transaction price will equal the fair based on observable market data IFRS Accounting Standards (e.g. investment property, biological assets
value however it is still necessary to take into account factors  Level 3: Unobservable inputs. etc.)
specific to the transaction and to the asset or liability.  NRFVM: Fair value measurement is triggered by particular
The level of an item is based on its lowest input level.
events/circumstances (e.g. assets held for sale under IFRS 5 etc.).

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IFRS 13 Fair Value Measurement

VALUATION TECHNIQUES DISCLOSURE

Must use appropriate valuation techniques in the

circumstances and for which sufficient data are available to FV Disclosure requirement RFVM NRFVM FV Disclosed
Disclosure requirement RFVM NRFVM
measure fair value. Disclosed
Changes in the valuation technique or its application are Level 3 reconciliation of total gains or losses in
Fair value at reporting date X X
accounted for as a change in accounting estimate in P&L and OCI, purchases, sales issues, X
accordance with IAS 8. settlements, and transfers
Reasons for fair value measurement X
Inputs to valuation techniques Level 3 unrealised gains /losses recognised in
Fair value hierarchy level X
 Must aim to maximise the use of relevant observable i.e. Level 1, 2, or 3 X X X P&L
inputs and minimise the use of unobservable inputs.
 If an asset/liability measured at fair value has both a bid Transfers between Level 1 and 2 Level 3 sensitivity to changes in unobservable
and ask price, the price within the bid-ask spread that is (including reasons for the transfer and the inputs
X X
most representative of fair value is used - regardless of (Qualitative for non-financial instruments,
where the input is categorised within the fair value quantitative for financial instruments)
hierarchy. Valuation technique, inputs, changes,
reasons for change etc. - Level 2 and 3 X X X Reasons if HBU differs from current use X X X
VALUATION TECHNIQUES
Level 3 valuation processes /policies X X
FV Refers to items that are measured on a basis other than fair value, but where
Refer to Appendix C of IFRS 13. Level 3 unobservable inputs Disclosed applicable IFRS Accounting Standards require the items fair value to be
X X
determined and disclosed.

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Periods beginning on or after 1 January 2016

IFRS 14 Regulatory Deferral Accounts

SCOPE DEFINITIONS

Rate-regulated activities: Activities that are subject to rate regulation.

- No Rate regulation: Rate regulator: Regulatory deferral account balance:
A framework that establishes prices A body that has been empowered A balance that would not otherwise be recognised in

Entity is outside scope of IFRS 14

Yes for goods and/or services that are through statute or legislation to accordance with other IFRS Accounting Standards but
subject to the oversight/approval of a establish (a range of) rates that qualifies for deferral as it is (expected to be) included in
bind an entity. establishing the (range of) rates.
financial statements? Previous GAAP: First-time adopter: First IFRS financial statements:
Yes No The basis of accounting used An entity presenting its first IFRS
immediately prior to a first-time financial statements. unreserved statement of compliance with IFRS.
adopter adopting IFRS Accounting
Has the entity recognised Standards.
Does the entity have regulatory deferral balances
that it has previously elected No PRESENTATION
recognised in accordance with to recognise in accordance
with this IFRS Accounting Statement of financial position Statement of profit or loss and other comprehensive income
Standard?
The total of regulatory deferral account debit balances, and The net movements in regulatory deferral account balances related
Yes Yes regulatory deferral account credit balances, are presented to both:
separately from, and after, all other items.  Profit or loss, and
They are not split into current and non-current portions.  Other comprehensive income.
Entity is within the scope of IFRS 14
Are presented separately from, and after, all other items and
subtotaled appropriately.

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Periods beginning on or after 1 January 2016

IFRS 14 Regulatory Deferral Accounts

RECOGNITION AND MEASUREMENT INTERACTION WITH OTHER IFRS ACCOUNTING STANDARDS - APPLICATION
GUIDANCE WITHIN IFRS 14
An entity within the scope of IFRS 14 is able to make a voluntary irrevocable election in its first annual IFRS financial
statements whether or not to recognise regulatory deferral balances in accordance with IFRS 14.  Estimates used in determining regulatory deferral  Recognition and measurement of
account balances (IAS 10) regulatory deferral account balances in
An entity that has elected to apply IFRS 14 in its first annual IFRS financial statements, continues to apply the recognition,
 Scope of income tax requirements (IAS 12) an acquiree (IFRS 3)
measurement, impairment and derecognition requirements in accordance with its previous GAAP to all its regulatory
 Where rates are permitted or required to be  Presentation in respect of non-current
deferral account balances.
assets held for sale and discontinued
Changes are only permitted if they result in the financial statements being either: expense (IAS 12) operations (IFRS 5)
 More relevant and no less reliable, or  Presentation with respect to income taxes (IAS  Consistent accounting policies for
 More reliable and no less relevant. 12) subsidiaries (IFRS 10)
 Consistent accounting policies for associates and  Disclosures of regulatory deferral
joint ventures (IAS 28) account balances in material
DISCLOSURE  Presentation of basic and diluted earnings per subsidiaries with non-controlling
share (IAS 33) interests, material joint ventures, and
IFRS 14 requires a number of disclosures to enable users to assess:  Impairment of regulatory deferral account material associates (IFRS 12)
 The nature of and risks associated with the rate regulation the entity is exposed to
balances (IAS 36)  Disclosures of gain or loss on the loss of

 Impairment of cash generating units (CGU) control over a subsidiary (IFRS 12).
containing regulatory deferral account balances
(IAS 36).

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Periods beginning on or after 1 January 2018

IFRS 15 Revenue from Contracts with Customers

SCOPE DEFINITIONS

Applies to all contracts with customers, except: Contract: Revenue: Distinct: Performance obligation:
 Lease contracts (refer to IFRS 16) An agreement between two or Refer to Step 2 below. A promise to transfer to the customer either:
 Insurance contracts (refer to IFRS 17) more parties that creates ordinary activities. (i) A distinct (bundle of) good(s) or service(s)
enforceable rights and obligations.
 Financial instruments and other contractual rights (ii) A series of substantially the same distinct
or obligations (refer to IFRS 9, IFRS 10, IFRS 11, Customer: Income: Stand-alone selling price: goods or services that have the same
IAS 27, and IAS 28) A party that has contracted with an Increases in economic benefits in the form of The price at which a pattern of transfer to the customer, and the
 Certain non-monetary exchanges. entity to obtain goods or services inflows or enhancements of assets or promised good or service pattern of transfer is both over time and
decreases of liabilities that result in an would be sold separately to represents the progress towards complete
ordinary activities in exchange for increase in equity (other than those from a customer. satisfaction of the performance obligation.
consideration. equity participants).

Revenue from contracts with customers is recognised based on the application of a principle-

Step 1 and 2 Step 3 Step 4 Step 5

performance obligation is
performance obligation
satisfied

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Periods beginning on or after 1 January 2018

IFRS 15 Revenue from Contracts with Customers

STEP 1 IDENTIFY THE CONTRACT

Contract modifications
A change in enforceable rights and obligations (i.e. scope and/or price) is only accounted for as a contract
practices. modification if it has been approved, and creates new or changes existing enforceable rights and
IFRS 15 requires contracts to have all of the following attributes: obligations.

 The contract has been approved Contract modifications are accounted for as a separate contract if, and only if:
 The rights and payment terms regarding goods and services to be transferred can be identified  The contract scope changes due to the addition of distinct goods or services, and
 The contract has commercial substance  The change in contract price reflects the standalone selling price of the distinct good or service.

Contract modifications that are not accounted for as a separate contract are accounted for as either:
to pay).
(i) Replacement of the original contract with a new contract (if the remaining goods or services under the
If each party to the contract has a unilateral enforceable right to terminate a wholly unperformed contract
original contract are distinct from those already transferred to the customer)
without compensating the other party (or parties), no contract exists under IFRS 15.
(ii) Continuation of the original contract (if the remaining goods or services under the original contract are
Combining multiple contracts not distinct from those already transferred to the customer, and the performance obligation is partially
Contracts are combined if they are entered into at (or near) the same time, with the same customer, if either: satisfied at modification date).
 The contracts are negotiated as a package with a single commercial objective (iii) Mixture of (i) and (ii) (if elements of both exist).
 The consideration for each contract is interdependent on the other, or
 The overall goods or services of the contracts represent a single performance obligation.

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IFRS 15 Revenue from Contracts with Customers

STEP 2 IDENTIFY THE PERFORMANCE OBLIGATIONS

Performance obligations are the

contractual promise by an entity, to transfer
to a customer, distinct goods or services, (ii) The promise to transfer a good or service is separable from other promises in the
either individually, in a bundle, or as a Benefit from the good or service can be through either: contract

 Use, consumption, or sale (but not as scrap) The assessment requires judgement, and consideration of all relevant facts and
section above).  Held in a way to generate economic benefits. circumstances.
Activities of the entity that do not result in a Benefit from the good or service can be either: A good or service may not be separable from other promised goods or services in the
transfer of goods or services to the contract, if:
customer (e.g. certain internal  On its own
 Together with other readily available resources (i.e. those which can be  There are significant integration services with other promised goods or services
- not It modifies/customises other promised goods or services
acquired by the customer from the entity or other parties). 
performance obligations of the contract  It is highly dependent/interrelated with other promised goods or services.
with the customer and do not give rise to
revenue.

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IFRS 15 Revenue from Contracts with Customers

STEP 3 DETERMINE THE TRANSACTION PRICE

The transaction price is the amount of consideration an entity expects to be entitled to in exchange for transferring the promised goods or services (not amounts collected on behalf of third parties, e.g. sales taxes or value added taxes).
The transaction price may be affected by the nature, timing, and amount of consideration, and includes consideration of significant financing components, variable components, amounts payable to the customer (e.g. refunds and rebates), and non-cash
amounts.

Accounting for a significant financing component Accounting for variable consideration

If the timing of payments specified in the contract provides either the customer or the entity with a significant benefit of E.g. Discounts, rebates, refunds, credits, concessions, incentives, performance bonuses, penalties, and contingent payments.
financing the transfer of goods or services.
Variable consideration must be estimated using either:
The transaction price is adjusted to reflect the cash selling price at the point in time control of the goods or services is
transferred. (i) Expected value method: based on probability weighted amounts within a range (i.e. for large number of similar contracts)

A significant financing component can either be explicit or implicit. (ii) Single most likely amount: the amount within a range that is most likely to arise.
Factors to consider include: Constraining (limiting) the estimates of variable consideration
 Difference between the consideration and cash selling price  Variable consideration is only recognised if it is highly probable that a subsequent change in its estimate would not result
 Combined effect of interest rates in the relevant market and length of time between transfer of control of the goods or in a significant revenue reversal (i.e. a significant reduction in cumulative revenue recognised).
services and payment.
Accounting for consideration payable to the customer
A significant financing component does not exist when

such as coupons and vouchers.
 The consideration is variable with the amount or timing based on factors outside of the control of the parties
 The difference between the consideration and cash selling price arises for other non-financing reasons (i.e. performance Accounted for as a reduction in the transaction price, unless payment is in exchange for a good or service received from the
protection). customer in which case no adjustment is made except where:
Discount rate to be used  The consideration paid exceeds the fair value of the goods or services received (the difference is set against the
transaction price)
 Must reflect credit characteristics of the party receiving the financing and any collateral/security provided.  The fair value of the goods or services cannot be reliably determined (full amount taken against the transaction price).
Practical expedient period between transfer and payment is 12 months or less
Accounting for non-cash consideration
 Do not account for any significant financing component.
Is accounted for at fair value (if not reliably determinable, it is measured indirectly by reference to stand-alone selling price of
the goods or services).

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IFRS 15 Revenue from Contracts with Customers

STEP 4 ALLOCATE THE TRANSACTION PRICE TO EACH PERFORMANCE OBLIGATION

The transaction price (determined in Step 3) is

allocated to each performance obligation (determined A discount exists where the sum of the stand-alone selling price of each performance obligation exceeds the consideration payable.
in Step 2) based on the stand-alone selling price of
each performance obligation. Discounts are allocated on a proportionate basis, unless there is observable evidence that the discount relates to one or more specific performance
obligation(s) after meeting all of the following criteria:
If the stand-alone selling price(s) are not observable,
they are estimated. Approaches to estimate may  The goods or services (or bundle thereof) in the performance obligation are regularly sold on a stand-alone basis, and at a discount
include:  The discount is substantially the same in amount to the discount that would be given on a stand-alone basis.

(i) Adjusted market assessment approach

Allocating variable consideration
(ii) Expected cost plus a margin approach
Variable consideration is allocated entirely to a performance obligation (or a distinct good or service within a performance obligation), if both:
(iii) Residual approach (i.e. residual after observable
stand-alone selling prices of other performance  The terms of the variable consideration relate specifically to satisfying the performance obligation (or transferring the distinct good or service within the
obligations have been deducted). performance obligation)
 The allocation of the variable consideration is consistent with the principle that the transaction price is allocated based on what the entity expects to receive
Note that restrictive criteria must be met for for satisfying the performance obligation (or transferring the distinct good or service within the performance obligation).
approach (iii) to be applied.

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IFRS 15 Revenue from Contracts with Customers

STEP 5 RECOGNISE REVENUE AS EACH PERFORMANCE OBLIGATION IS SATISFIED

The transaction price allocated to each performance (i) RECOGNISING REVENUE OVER TIME (APPLIES IF ANY OF THE FOLLOWING THREE CRITERIA ARE MET)
obligation (determined in Step 4) is recognised
as/when the performance obligation is satisfied, (a) Customer simultaneously receives and and the entity
either consumes all of the benefits has an enforceable right to payment for performance completed to date.

(i) Over time, or e.g. many recurring service contracts (such as (i) Alternate use (ii) Enforceable right to payment
cleaning services). Assessment requires judgment and consideration of all facts Consider both the specific contractual
(ii) At a point in time.
If another entity would not need to substantially and circumstances. terms and any applicable laws or
Satisfaction occurs when control of the promised re-perform the work already performed by the regulations. Ultimately, other than due to
good or service is transferred to the customer: An asset does not have an alternate use if the entity cannot
entity in order to satisfy the performance practically or contractually redirect the asset to another its own failure to perform as promised, an
 Ability to direct the use of the asset obligation, the customer is considered to be customer, such as: entity must be entitled to compensation
 Ability to obtain substantially all the remaining simultaneously receiving and consuming benefits. that approximates the selling price of the
benefits from the asset.  Significant economic loss, i.e. through rework, or reduced goods or services transferred to date.
Factors to consider when assessing transfer of sale price (practical)
asset controlled by the customer  Enforceable rights held by the customer to prohibit The profit margin does not need to equal
control:
redirection of the asset (contractual). the profit margin expected if the contract
 Entity has present right to payment for the asset The asset being created or enhanced (e.g. a work was fulfilled as promised. For example, it
Whether or not the asset is largely interchangeable with
 Entity has physically transferred the asset in progress asset) could be tangible or intangible. could be a proportion of the expected
other assets produced by the entity should also be
 Legal title of the asset profit margin that reflects performance to
considered in determining whether practical or contractual
 Risks and rewards of ownership date.
limitations occur.
 Acceptance of the asset by the customer.
Revenue that is recognised over time
Methods include:
 Output methods: (e.g. Surveys of performance completed to date, appraisals of results achieved, milestones reached, units produced/delivered etc.)
 Input methods: (e.g. Resources consumed, labour hours, costs incurred, time lapsed, machine hours etc.), excluding costs that do
performance.

(ii) RECOGNISING REVENUE AT A POINT IN TIME

Revenue is recognised at a point in time if the criteria for recognising revenue over time are not met.
Revenue is recognised at the point in time at which the entity transfers control of the asset to the customer (see adjacent box).

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IFRS 15 Revenue from Contracts with Customers

APPLICATION GUIDANCE WITHIN IFRS 15

IFRS 15 contains application Contract costs

guidance for: Only incremental costs of obtaining a contract that are incremental and expected to be recovered can be (i) If the licence is not distinct from other goods or services
 Contract costs recognised as an asset.  It is accounted for together with other promised goods or services as a single performance obligation
 Sale with a right of return
If costs to fulfil a contract are within the scope of other IFRS Accounting Standards (e.g. IAS 2, IAS 16, IAS  A licence is not distinct if either:
 Warranties
38 etc.) apply those IFRS Accounting Standards. ‒ It is an integral component to the functionality of a tangible good, or
 Principal versus agent ‒ The customer can only benefit from the licence in conjunction with a related service.
considerations If not, a contract asset is recognised under IFRS 15 if, and only if, the costs: (ii) If the licence is distinct from other goods or services
 Customer options for
 Are specifically identifiable and directly relate to the contract (e.g. direct labour, materials, overhead It is accounted for as a single performance obligation.
additional goods or services 
allocations, explicitly on-charged costs, other unavoidable costs (e.g. sub-contractors))  Revenue from a distinct licence is recognised over time (refer Step 5) if, and only if:

 Create (or enhance) resources of the entity that will be used to satisfy performance obligation(s) in the
 Non-refundable upfront fees (a) The entity (is reasonably expected to) undertakes activities that will significantly affect the IP to which
future, and
(and some related costs)
 Are expected to be recovered. the customer has rights
 Licensing
 Repurchase agreements Costs that are recognised as an expense as incurred
 Consignment arrangements
undertakes in (a).
 General and administrative expenses (c) No goods or services are transferred to customer as the entity undertakes the activities in (a).
 Bill-and-hold arrangements
 Wastage, scrap, and other (unanticipated) costs not incorporated into pricing the contract
 Customer acceptance.  Revenue from a distinct licence is recognised at a point in time (refer to Step 5) if the criteria for

A summary is set out on this page recognition over time (above) are not met. The right is over the IP in its form and functionality at the point at
for those items in bold type Amortisation and impairment of contract assets which the licence is granted to the customer.
above.  Amortisation is based on a systematic basis consistent with the pattern of transfer of the goods or ‒ Revenue is recognised at the point in time at which control of the licence is transferred to the customer.
services to which the asset relates
 Impairment exists where the contract carrying amount is greater than the remaining consideration
receivable, less directly related costs to be incurred.

Warranties (fall into either one of the two categories): Non-refundable upfront fees
(i) Assurance type (apply IAS 37): (ii) Service type (accounted for separately in accordance with IFRS Includes additional fees charged at (or near) the inception of the contract (e.g. joining fees, activation fees,
15): set-up fees etc.).
 An assurance to the customer that the good or service will function
as specified  A service is provided in addition to an assurance to the customer Treatment dependents on whether the fee relates to the transfer of goods or services to the customer (i.e. a
 The customer cannot purchase this warranty separately from the that the good or service will function as specified performance obligation under the contract):
entity.  This applies regardless of whether the customer is able to
 Yes: Recognise revenue in accordance with IFRS 15 (as or when goods or services transferred)
purchase this warranty separately from the entity.
 No: Treated as an advance payment for the performance obligations to be fulfilled.
In determining the classification (or part thereof) of a warranty, an entity considers:
(Note: Revenue recognition period may in some cases be longer than the contractual period if the
 Legal requirements: (warranties required by law are usually assurance type) customer
 Length: (longer the length of coverage, more likely additional services are being provided)

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Page 8 of 8
Periods beginning on or after 1 January 2018

IFRS 15 Revenue from Contracts with Customers

PRESENTATION TRANSITION (APPENDIX C) DISCLOSURE

Statement of financial position Retrospective application (either) Overall objective to disclose sufficient information to enable users to understand the nature, amount,
 Contract assets and contract liabilities from  For each prior period presented in accordance
customers are presented separately with IAS 8 Accounting Policies, Changes in Contracts with customers (information regarding): Significant judgements:
 Unconditional rights to consideration are Accounting Estimates and Errors; or
presented separately as a receivable.  Cumulative effect taken to the opening balance  Disaggregation of revenue  Performance obligation satisfaction
of retained earnings in the period of initial  Contract assets and contract liabilities  Transaction price (incl. allocation)
Statement of profit or loss and other Performance obligations (incl. remaining). Determining contract costs capitalised.
application.  
comprehensive income
For full retrospective application, practical Use of practical expedients (related to): Contract costs capitalised:
 Line items (revenue and impairment) are
presented separately in accordance with the expedients (for)  Significant financing component (12 month)  Method of amortisation
requirements of IAS 1 Presentation of Financial  Restatement of completed contracts  Contract costs (12 month amortisation).  Closing balances by asset type
Statements.  Determining variable consideration of  Amortisation and impairment.
completed contracts
 Disclosures regarding the transaction price
allocation to performance obligations still to be
satisfied.
For both approaches there is a practical
expedient for contracts modified in earlier
periods.

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Page 1 of 5
Periods beginning on or after 1 January 2019

IFRS 16 Leases
DEFINITIONS SCOPE

Lease - a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in All arrangements that meet the definition of a lease except for:
exchange for consideration. (a) Leases to explore for minerals, oil, natural gas and similar non-regenerative resources
Lease term - The non-cancellable period for which a lessee has the right to use an underlying asset, together with both (a) (b) Leases of biological assets within the scope of IAS 41 Agriculture held by a lessee
periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and (b) periods
covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. (c) Service concession arrangements within the scope of IFRIC 12
(d) Licenses of intellectual property granted by a lessor within the scope of IFRS 15 Revenue from Contracts with Customers
(e) Rights held by a lessee under a licensing agreement within the scope of IAS 38 Intangible Assets (eg. Rights to motion
pictures, video recordings, plays, patents and copyrights, etc.)
A lessee is also permitted, but not required, to apply IFRS 16 to leases of intangible assets other than those described in (e)
above.

LESSEES

INITIAL RECOGNITION AND MEASUREMENT

The following measurement requirements apply to all leases, unless a lessee makes use of optional exemptions for short-term leases (those having a term of 12 months or less, including the effect of extension options) and leases for which the underlying
asset is of low value (eg telephones, laptop computers, and office furniture). The election for short term leases is by class of asset, and for low value leases can be made on a lease-by-lease basis

LEASE LIABILITY RIGHT-OF-USE ASSET

At the commencement date of the lease, a lessee recognises a lease liability for the unpaid portion of payments, discounted At the commencement date of the lease, a lessee recognises a right-of-use asset at cost, comprising:
at the rate implicit in the lease or, if this is not readily determinable, the incremental rate of borrowing, comprising: (a) The amount of the lease liability recognised;
(a) Fixed payments (including in-substance fixed payments), less any lease incentives receivable; (b) Any lease payments made at or before the commencement date, less any lease incentives;
(b) Variable lease payments dependent on an index or rate; (c) Any initial direct costs incurred; and
(c) Residual value guarantees; (d) An estimate of costs to be incurred to dismantle and remove an asset and restore the site based on the terms and
(d) The exercise price of a reasonably certain purchase options; and conditions of the lease.
(e) Lease termination penalties, if a lessee termination option was considered in setting the lease term.

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Page 2 of 5
Periods beginning on or after 1 January 2019

IFRS 16 Leases
SUBSEQUENT MEASUREMENT

LEASE LIABILITY RIGHT-OF-USE ASSET (THREE OPTIONS)

After the commencement date, a lessee remeasures the lease liability by: Cost Model (IAS 16) Revaluation Model (IAS 16) Investment Property (IAS 40)
(a) Increasing the carrying amount to reflect interest on the lease liability;  Apply IAS 16 Property, Plant and  If lessee applies the revaluation  If a lessee applies the fair value
Equipment to record depreciation. model to a class of asset, it may elect model to its investment property, the
(b) Reducing the carrying amount to reflect the lease payments made; and
 Depreciation period is the useful life to apply that model to the same class lessee is required to apply that
(c) Remeasuring the carrying amount to reflect any reassessment, lease modifications or revised in-substance fixed lease of the asset if the lease transfers of right-of-use assets. model to right-of-use assets that
payments. ownership of the underlying asset; meet the definition of investment
property in IAS 40.
The lease term is updated if there is a change in the non-cancellable period of the lease when the lessee: life and lease term.
(a) Exercises an existing option not previously included in the determination of the lease term;  Adjust carrying value based on any
remeasurements as required from
(b) Does not exercise an option that was previously included in the determination of the lease term; reassessment of the lease liability.
(c) An event occurs that obliges the lessee to exercise an option not previously included in the determination of the lease  Apply IAS 36 Impairment of Assets to
term; or measure impairment.
(d) An event occurs that contractually prohibits the lessee from exercising an option previously included in the previous
determination of the lease term.
Variable lease payments that have not been included in the initial measurement of the lease liability are recognised in profit
or loss in the period in which the event or condition that triggers the payments occurs.
Lease modifications: a lessee accounts for a lease modification as a separate lease if (a) the modification increases the
scope of the lease by adding the right to use one or more additional underlying assets; and (b) the consideration for the lease
increases by an amount commensurate with the stand-alone price for the increase in scope (including any appropriate
adjustments to reflect the circumstances of that contract).

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Page 3 of 5
Periods beginning on or after 1 January 2019

IFRS 16 Leases
SALE AND LEASEBACK TRANSACTIONS COVID-19-RELATED RENT CONCESSIONS

Follow IFRS 15 guidance to determine if the transaction is a sale of the underlying asset or not. On 28 May 2020, the IASB issued amendments to IFRS 16, which provide relief for lessees
in accounting for rent concessions granted as a direct consequence of COVID-19 and
Transfer is a sale Transfer is not a sale resulted in reduced lease payments originally due on or before 30 June 2021.

 The right-of-use asset is recorded in proportion to the previous carrying amount  The asset continues to be recognised and a financial liability is Many types of rent concessions provided to lessees as a result of COVID-19 would meet the
of the asset that relates to the right of use retained. recognised equal to the proceeds transferred. definition of a lease modification, which require lessees to remeasure the lease liability
 Gains and losses are limited to the amount relating to the rights transferred.  The financial liability is accounted for in accordance with IFRS 9. based on the revised consideration using a revised discount rate.
 Adjustments required if sale is not at fair value or lease payments are not at IFRS 16 has been amended to:
market rates
 Specific requirements apply to leases with variable payments not based on an (a) Provide lessees with an exemption from the requirement to determine whether a COVID-
index or rate. 19-related rent concession is a lease modification;
(b) Require lessees that apply the exemption to account for COVID-19-related rent
PRESENTATION concessions as if they were not lease modifications.
A lessee can apply the relief provide if all of the following criteria are met:
Statement of Financial Position
 The rent concession occur as a direct consequence of the COVID-19 pandemic;
Right-of-use assets:  The change in lease payments result in revised consideration for the lease that is
(a) Present right-of-use assets separately from other assets; or substantially the same as, or less than, the consideration for the lease immediately
preceding the change;
(b) Include right-of-use assets within the same line item as the underlying asset  The reduction in lease payments affect only payments originally due on or before
The requirement in a) does not apply to right-of-use-assets that meet the definition of investment property, which shall be presented in the statement of 30 June 2021; and
financial position as investment property.  There is no substantive change to other terms and conditions of the lease

Lease liabilities: present separately from other liabilities or disclose the line item in which they are included. The lessee will apply the practical expedient to all rent concession relating to leases with
similar characteristics and in similar circumstances in the following manner:
Statement of Profit or Loss and Other Comprehensive Income
 Lessee does not account for the change in lease payments as a lease modification.
Interest expense on the lease liability is presented separately from depreciation of the right-of-use asset, as a component of finance costs.  Lessee accounts for the change in lease payments as if it were not a lease modification,
Statement of Cash Flows - classification which in many cases will be accounted for as a variable lease payment.
 If accounted for as a variable lease payment, the concession is accounted for in profit or
 Principal payments on the lease liability as financing activities. loss in the period in which the event or condition that triggers those payments occurs.
 Payments of interest in accordance with guidance for interest paid in IAS 7 Statement of Cash Flow. In March 2021, the practical expedient was extended to concessions affecting lease
 Short-term and low-value asset leases and variable lease payments that are not included in the measurement of lease liabilities are classified within payments originally due on or before 30 June 2022. A lessee shall apply the amendments
operating activities. retrospectively.
Effective date and transition amendments to IFRS 16
DISCLOSURE The amendments are effective for annual reporting periods beginning on or after 1 April
2021, with earlier application permitted. Unlike most amendments to IFRS Accounting
igations arising from its major lease Standards, application is also permitted in financial statements of earlier periods not yet
contracts, as well as significant quantitative disclosure on lease commitments, variable lease payments, extension and termination options, residual value authorised for issue at 31 March 2021.
guarantees, and whether the option to exclude short-term and low-value leases has been used.

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Page 4 of 5
Periods beginning on or after 1 January 2019

IFRS 16 Leases
LESSORS

DEFINITIONS

Finance Lease - a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred.
Operating lease lease other than a finance lease.

CLASSIFICATION

Indicators that would normally lead to a lease being classified as a finance lease are:
(a) The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; (b) The lessee has a bargain purchase option;
(c) The lease term is for a major part of the economic life of the asset; (d) The present value of the lease payments amounts to
(e) The underlying asset is of such a specialized nature that only the lessee can use it without modification;
Other indicators that could also lead to a lease being classified as a finance lease are:
ns or losses from the fluctuation in the fair value of the residual accrue to the lessee; or
(h) The lessee has the ability to continue the lease for a secondary period at a rent substantially lower than market.

ACCOUNTING TREATMENT OPERATING LEASE ACCOUNTING TREATMENT FINANCE LEASE

 Lease contracts accounted for on an executory basis  The leased asset is derecognised and a gain or loss is recognised
 Lessor retains leased asset on its statement of financial position  Lessor recognises a receivable equal to the net investment in the lease
 Lease income is normally recognised on a straight line basis over the lease term  Finance income is recognised based on a pattern reflecting a constant periodic rate of return on the net
investment in the lease.

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Page 5 of 5
Periods beginning on or after 1 January 2019

IFRS 16 Leases
SALE AND LEASEBACK TRANSACTIONS DISCLOSURE

Follow IFRS 15 guidance to determine if the transaction is a sale of the underlying asset or not. A lessor must disclose qualitative and quantitative information about its leasing activities including the nature of the

Transfer is a sale Transfer is not a sale analysis of lease payments receivable and a reconciliation of the discounted lease payments receivable to the net
 Account for the purchase of the asset  Do not recognise the transferred asset and investment in the lease.
applying the applicable IFRS Accounting recognise a financial asset equal to the
Standards. transfer proceeds.
 Account for the lease under the lessor  The financial asset is accounted for in
accounting requirements of IFRS 16. accordance with IFRS 9.

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Page 1 of 6
Periods beginning on or after 1 January 2023

IFRS 17 Insurance Contracts

DEFINITIONS

Insurance risk Risk, other than financial risk, transferred from the holder of a contract to the issuer.
Financial risk The risk of a possible change in one or more of a specified interest rate, financial instrument price, commodity price, currency exchange rate, index of prices or rates, credit rating or credit index or other variable, provided in the case of a
non-financial variable that the variable is not specific to a party to the contract
Insurance contract A contract under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely
affects the policyholder.
Insurance contract services The following services that an entity provides to a policyholder of an insurance contract: (a) coverage for an insured event; (b) for insurance contracts without direct participation features, the generation of an investment
return for the policyholder, if applicable (investment-return service); and (c) for insurance contracts with direct participation features, the management of underlying items on behalf of the policyholder (investment-related service).
Reinsurance contract An insurance contract issued by one entity (the reinsurer) to compensate another entity for claims arising from one or more insurance contracts issued by that other entity (underlying contracts)
Group of insurance contracts A set of insurance contracts resulting from the division of a portfolio of insurance contracts into, at a minimum, contracts issued within a period of no longer than one year and that at initial recognition:
a) Are onerous, if any;
b) Have no significant possibility of becoming onerous subsequently, if any; or
c) Do not fall into either (a) or (b), if any.
Portfolio of insurance contracts Insurance contracts subject to similar risks and managed together
Fulfilment cash flows - An explicit, unbiased and probability-weighted estimate (i.e. expected value) of the present value of the future cash outflows minus the present value of the future cash inflows that will arise as the entity fulfils insurance contracts,
including a risk adjustment for non-financial risk
Investment contract with discretionary participation features A financial instrument that provides a particular investor with the contractual right to receive, as a supplement to an amount not subject to the discretion of the issuer, additional amounts:
a) That are expected to be a significant portion of the total contractual benefits;
b) The timing or amount of which are contractually at the discretion of the issuer; and
c) That are contractually based on
i. The returns on a specified pool of contracts or a specified type of contract;
ii. Realised and/or unrealised investment returns on a specified pool of assets held by the issuer; or
iii. The profit or loss of the entity or fund that issues the contract
Liability for incurred claims An entity's obligation to (a) investigate and pay valid claims for insured events that have already occurred, including events that have occurred but for which claims have not been reported, and other incurred insurance
expenses; (b) and pay amounts that are not included in (a) and that relate to (i) insurance contract services that have already been provided; or (ii) any investment component or other amounts that are not related to the provision of insurance contract
services and that are not in the liability for remaining coverage.
Liability for remaining coverage - An entity's obligation to (a) investigate and pay valid claims under existing insurance contracts for insured events that have not yet occurred (ie the obligation that relates to the unexpired portion of the insurance
coverage); and (b) pay amounts under existing insurance contracts that are not included in (a) that relate to (i) insurance contract services not yet provided (ie the obligations that relate to future provision of insurance contract services); or (ii) any investment
components or other amounts that are not related to the provision of insurance contract services and that have not been transferred to the liability for incurred claims.
Risk adjustment for non-financial risk The compensation an entity requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as the entity fulfils insurance contracts.

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Page 2 of 6
Periods beginning on or after 1 January 2023

IFRS 17 Insurance Contracts

MANDATORY SCOPE INCLUSIONS OTHER SCOPE INCLUSIONS

IFRS 17 applies to: IFRS 17 may apply to:

 Insurance contracts and reinsurance contracts issued;  Financial guarantee contracts if the entity has asserted it regards such contracts as insurance contracts
 Reinsurance contracts held; and (otherwise such contracts are within the scope of IFRS 9); and
 Investment contracts with discretionary participation features if the entity also issues insurance contracts.  Some service contracts, such as separately priced warranties on consumer goods that are serviced by
third parties rather than the manufacturer (otherwise such contracts are within the scope of IFRS 15).

UNIT OF ACCOUNT MODELS FOR APPLICATION OF THE REQUIREMENTS

IFRS 17 is applied at the level of groups of insurance contracts and not individual insurance contracts General model applies to all insurance contracts in the scope of IFRS 17, except for those covered by the
(though it is possible for groups of insurance contracts to consist of only a single contract). The composition premium allocation approach and the variable fee approach. The general model is also modified for
of the group is not subsequently reassessed. reinsurance contracts held.
At a minimum, contracts issued within a period of no longer than one year are sub-divided at initial Premium allocation approach (PAA) a method that simplifies the measurement of the liability for
recognition into groups that contain contracts that are: remaining coverage. The PAA is available for groups of contracts where the coverage period for all
 Onerous, if any; contracts is one year or less or if the entity reasonably expects that the PAA would produce a measurement
 Have no significant possibility of becoming onerous subsequently, if any; and of the liability for remaining coverage for the group that would not differ materially from the general model.
 Do not fall into either (a) or (b), if any. Variable fee approach (VFA) - insurance contract liability is measured based on the obligation to pay the
An insurance contract is onerous if the fulfilment cash flows, any previously recognised acquisition cash policyholder an amount equal to the value of the underlying items, net of consideration charged for the
flows and any cash flows arising from the contract are a net outflow.
entitled to a significant share of the profit from a clearly identified pool of underlying items.

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Page 3 of 6
Periods beginning on or after 1 January 2023

IFRS 17 Insurance Contracts

GENERAL MODEL

COMPONENT INITIAL MEASUREMENT SUBSEQUENT MEASUREMENT EFFECT ON COMPREHENSIVE INCOME

Present value of future cash flows estimate of all cash Estimate must be unbiased, reflect the perspective of the Updated at each reporting period based on information Accretion of the discount reflected in profit or loss (or OCI -
flows within the boundary of each contract in the group entity and be a current measure using all reasonable and available, with the effect of the discount unwinding over > see Discounting).
Liability of Remaining Coverage

(e.g. premiums, acquisition cash flows, claims payments, supportable information available without undue cost or time
claims handling costs, etc.). If certain requirements are effort, discounted to reflect the time value of money.
met, fulfilment cash flows may be estimated at a higher
level and then allocated to individual groups.
Insurance Contract Assets / Liabilities

Risk adjustment for non-financial risk - The The risk adjustment must be an explicit estimate and will Updated at each reporting period based on information Release of risk over time is reflected as insurance
compensation an entity requires for bearing the be entity-specific, which should be the amount of available, with the effect of the discount unwinding over revenue, unless accounting policy choice is elected to
uncertainty about the amount and timing of the cash flows compensation an entity would require to make itself time. The release from risk may occur evenly over time or reflect the accretion of the discount in insurance finance
that arises from non-financial risk as the entity fulfils indifferent between a fixed series of cash flows and not depending on the nature of the risks insured. expense (see Discounting).
insurance contracts. uncertain cash flows in the group of contracts.

represents the The CSM is set at an amount that makes a group of CSM is updated for the effect of the discount unwinding Accretion of the discount reflected in profit or loss (or OCI -
unearned profit the entity will recognise as it provides insurance contracts zero at the time of initial recognition and the unwinding of the CSM as insurance contract > see Discounting), with the movement related to services
insurance contract services under the insurance contracts (i.e. offsets fulfilment cash flows). If the fulfilment cash services are provided in the period based on the allocation provided reflected as insurance revenue.
in the group. flows are negative (i.e. an onerous group of contracts of the CSM over the current and remaining coverage
exists), the loss is recognised immediately and no CSM period.
exists.

Present value of future cash flows once a loss event Same methodology as liability for remaining coverage. Same methodology as liability for remaining coverage. Accretion of the discount reflected in profit or loss (or OCI -
Liability for Incurred Claims

occurs, the best estimate of the cash flows required to > see Discounting). The effects of changes in estimates are
settle the claim, including investigation, handling and recorded in insurance services expenses.
settlement costs.

Risk adjustment for non-financial risk same Same methodology as liability for remaining coverage. Same methodology as liability for remaining coverage. The effects of changes in estimate are reflected in
methodology as liability for remaining coverage. insurance services expenses.

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Page 4 of 6
Periods beginning on or after 1 January 2023

IFRS 17 Insurance Contracts

PREMIUM ALLOCATION APPROACH
VARIABLE FEE APPROACH
MEASUREMENT AT INITIAL RECOGNITION SUBSEQUENT MEASUREMENT

If certain conditions are met, simplified measurement equal to: If certain conditions are met, simplified measurement equal to: Similar to the general model, except that changes in estimates
a) Premiums received at initial recognition a) Carrying amount at start of period relating to the future fees an entity expects to earn from direct
participating contract policyholders are adjusted against the
b) Minus insurance acquisition cash flows *; plus b) Plus premiums received in the period contractual service margin.
c) Plus or minus any amount arising from the derecognition at that c) Minus insurance acquisition cash flows *
The contractual service margin on direct participating contracts is
date of any pre-coverage period contract acquisition cash flows; d) Plus any amounts relating to the periodic amortisation of recognised in profit or loss as part of insurance service results on
and any other asset liability previously recognised for cash flows insurance acquisition cash flows recognised as an expense the basis of the passage of time.
Remaining Coverage

related to the group of contracts are required by IFRS 17.

e) Plus adjustment for financing component The accretion of interest relating to the contractual service margin
Insurance Contract Liabilities

*May elect to expense as incurred.

f) Minus the amount recognised as insurance revenue for services is based on a current rate included in balance sheet measurements
Conditions required to be met: provided in that period ** of specific assets, rather than a locked in rate as required in the
a) There is a reasonable expectation that the measurement of the g) Minus any investment component paid or transferred general model.
liability will not be materiality different from measurement using
the full model in IFRS 17; and *May expense acquisition cash flows as incurred
b) The coverage period of each contract in the group (including **Expected premiums are allocated to revenue on the basis of the
insurance contract services arising from all premiums within the passage of time unless the expected pattern of release of risk
contract boundary) is one year or less. during the coverage period differs significantly from the passage of
time.

Measurement is consistent with the general model. However, discounting is not required if the cash flows on incurred claims are Measurement is consistent with the general model.
Incurred

expected to be paid in one year or less from the date the claims are incurred
Claims

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Periods beginning on or after 1 January 2023

IFRS 17 Insurance Contracts

INVESTMENT General model is modified as follows: REINSURANCE General model is modified as follows : The CSM is subsequently measured as the previous
CONTRACTS a) the date of initial recognition is the date the entity CONTRACTS Group of reinsurance contracts held recognised carrying amount adjusted for:
WITH becomes party to the contract. HELD from the earlier of the following: a) The effect of any new contracts;
DISCRETIONARY b) the contract boundary is modified so that cash a) The beginning of the coverage period of the b) Interest accrued on the CSM;
PARTICIPATION flows are within the contract boundary if they result group of reinsurance contracts held; and c) Changes in the fulfilment cash flows;
FEATURES from a substantive obligation of the entity to deliver b) The date the entity recognises an onerous group d) The effect of any foreign exchange; and
cash at a present or future date. The entity has no of underlying contracts, if the entity entered into e) The allocation of the CSM.
substantive obligation to deliver cash if it has the the related reinsurance contract held in the group Changes in fulfilment cash flows that result from
practical ability to set a price for the promise to of reinsurance contracts held at or before that changes in the risk of non-performance by the
deliver the cash that fully reflects the amount of date. issuer of the reinsurance contracts held do not
cash promised and related risks. The net cost or net gain from a group of reinsurance relate to future service and therefore do not adjust
c) the allocation of the CSM is modified so that it is contracts is deemed to be the CSM, unless the the CSM.
recognised over the duration of the group of reinsurance covers underlying onerous contracts. In
contracts in a systematic way that reflects the The premium allocation approach may be used for
this case, the gain is recognised immediately if the reinsurance contracts held if certain criteria are met.
transfer of investment services under the contract. reinsurance contract held is recognised before or at
the same time as the loss arising on the underlying
contracts.

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Periods beginning on or after 1 January 2023

IFRS 17 Insurance Contracts

DISCOUNTING MODIFICATIONS DERECOGNITION

For components of insurance contracts that must be discounted, the discount Derecognise original contract only if any of the following apply: Derecognise only when:
rate must: a) Had the modified terms been included at contract inception: a) It is extinguished, i.e. when the obligation expires, is discharged or cancelled;
a) reflect the time value of money; i. It would have been outside the scope of IFRS 17; or
b) be consistent with observable market prices for an instrument with cash flows ii. Different components would have been separated from the host contract; b) A modification meets any of the conditions for the insurance contract to be
whose characteristics are consistent with the insurance contracts; and iii. It would have had a substantially different contract boundary; or derecognised.
c) exclude the effect of factors that influence such observable market prices, iv. It would have been included in a different group of insurance contracts. The purchase of reinsurance results in the derecognition of the underlying
but do not affect the future cash flows of the insurance contracts. a) The original, but not modified, contract met the definition of an insurance insurance contract(s) only when the underlying insurance contract(s) is (or are)
Entities may elect to reflect in profit or loss only the finance expense related to a contract with direct participation features (or vice versa). extinguished.
systematic allocation of the expected total finance expense over the duration of b) The premium allocation approach was applied to the original contract, but the
eligibility criteria for that approach is not met for the modified contract. Accounting for the derecognition of insurance contract from within a group of
the group of insurance contracts. The other impact of the discount on the
contracts requires an adjustment to fulfilment cash flows, and contractual
insurance contracts being a current measure is reflected in other If none of the above apply, do not derecognise the contract and instead treat
service margin of the group and remaining coverage units.
comprehensive income. changes in cash flows caused by the modification as changes in estimates of
fulfilment cash flows. Specific requirements apply to the accounting on the derecognition of an
insurance contract arising from either:
 A modification that meets any of the conditions for the insurance contract to
be derecognised; or
 The transfer of the insurance contract to a third party.

PRESENTATION DISCLOSURE TRANSITION

Separately for both portfolios of insurance contracts issued and reinsurance Overall objective is to disclose sufficient information to gives a basis for users to Effective for periods beginning on or after January 1, 2023. Early adoption is
contracts held: assess the effect that insurance contracts have on an entity. permitted, however, entities must also adopt IFRS 9 and IFRS 15 on or before the
Disclosure requirements are significant and include both quantitative and date of initial application of IFRS 17.
Statement of Financial Position
qualitative disclosures about the amounts recognised in the statements of
a) Insurance contracts issued that are assets; IFRS 17 must be applied retrospectively unless it is impracticable, with the net
financial position, performance and cash flows, including reconciliations of
b) Insurance contracts issued that are liabilities. effect of adoption being recognised in equity as at the beginning of the
amounts and the components comprising insurance contract assets and comparative period.
Statement of Financial Performance liabilities and significant judgments concerning their recognition and valuation.
If it is impracticable for an entity to adopt IFRS 17 retrospectively, it may apply:
a) Insurance revenue; For entities applying the premium allocation approach, some disclosure
b) Insurance service expenses (e.g. incurred claims, other incurred insurance simplifications exist, however, disclosure requirements concerning the liability a) Modified retrospective approach: several simplifications relating to the initial
service expenses, amortisation of acquisition cash flows, etc.) for incurred claims remain extensive, including the level used to determine the application are offered (e.g. CSM, insurance finance expense, etc.); or
c) Insurance finance income or expenses risk adjustment, the yield curve used for discounting, and the nature and extent b) Fair value approach: determine the CSM (or loss component) at the date of
of risks by major groups of contracts. initial application as the difference between the fair value of a group of
The difference between (a) and (b) comprises the insurance service result which contracts and the fulfilment cash flows.
must be presented in the statement of financial performance.

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Page 1 of 2
Periods beginning on or after 1 January 2009

IAS 1 Presentation of Financial Statements

OVERALL CONSIDERATIONS COMPONENTS OF FINANCIAL STATEMENTS

Fair presentation and Going concern Accrual basis of Presentation Materiality and Offsetting Comparative A complete set of financial statements comprises:
compliance with IFRS Financial statements accounting consistency aggregation Offsetting of assets information
Accounting Standards  Statement of financial position
are required to be Entities are required An entity is required Each material class of and liabilities or At least 1 year of
 Statement of profit or loss and comprehensive
Financial statements prepared on a going to use accrual basis of to retain presentation similar assets and income and expenses comparative
income for the period
are required to be concern basis (unless accounting except for and classification from items of dissimilar are not permitted information (unless
 Statement of changes in equity
presented fairly as set entity is in liquidation cash flow information. one period to the nature or function is unless required by impractical).
 Statement of cash flows
out in the framework or has ceased trading next. to be presented other IFRS Accounting
 Notes.
and in accordance or there is an separately. Standards.
 All statements are required to be presented
with IFRS and are indication that the with equal prominence
required to comply entity is not a going
with all requirements concern).
of IFRS Accounting
Standards.

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Page 2 of 2
Periods beginning on or after 1 January 2009

IAS 1 Presentation of Financial Statements

STRUCTURE AND CONTENT

STATEMENT OF FINANCIAL POSITION STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF CHANGES IN EQUITY STATEMENT OF CASH FLOWS

 Present current and non-current items separately; or  An entity presents all items of income and expense Information required to be presented: Provides users of financial statements
 Present items in order of liquidity. recognised in a period, either: with cash flow information – refer to
‒ In a single statement of comprehensive income  Total comprehensive income for the period, showing
IAS 7 Statement of Cash Flows.
Current assets Current liabilities ‒ In two statements: a statement displaying components of separately attributable to owners or the parent and non-
profit or loss (separate income statement) and a second controlling interest
 Expected to be realised in, or is  Expected to be settled in the For each component of equity, the effects of retrospective
intended for sale or entity’s normal operating cycle statement of other comprehensive income. 
IDENTIFICATION OF THE FINANCIAL
Information required to be presented in the: application/restatement recognised in accordance with IAS 8
consumption in the entity’s  Held primarily for trading 
Accounting Policies, Changes in Accounting Estimates and STATEMENTS
‒ Statement of comprehensive income is defined in
normal operating cycle  Due to be settled within 12 Errors
IAS 1.82-87 Financial statements must be clearly
 Held primarily for trading months The amounts of transactions with owners in their capacity as
‒ Profit or loss as defined in IAS 1.88 
identified and distinguished from other
 Expected to be realised within  The entity does not have the ‒ Other comprehensive income in IAS 1.90-96 owners, showing separately contributions by and
12 months right at the end of the reporting information in the same published
‒ Further information required to be presented on the face distributions to owners
 Cash or cash equivalents. period to defer settlement of the document, and must identify:
or in the notes to the Statement of Comprehensive Income  For each component in equity a reconciliation between the
liability for at least 12 months. is detailed in IAS 1.97. carrying amount at the beginning and end of the period, The level of rounding Name of the
All other assets are required to be 

classified as non-current. All other liabilities are required to  Entities must choose between ‘function of expense method’ separately disclosing each change reporting entity
be classified as non-current. and ‘nature of expense method’ to present expense items  Amount of dividends recognised as distributions to owners  Whether the financial statements cover
 Line items within other comprehensive income are required during the period (can alternatively be disclosed in the the individual entity or a group of
 Information required to be presented on the face of the statement of to be categorised into two categories: notes) entities
financial position is detailed in IAS 1.54 ‒ Those that could subsequently be reclassified to profit or  Analysis of each item of OCI (alternatively to be disclosed in  The statement of financial position date
 Further information required to be presented on the face or in the loss the notes). (or the period covered)
notes is detailed in IAS 1.79-80. ‒ Those that cannot be re-classified to profit or loss.  The presentation currency used.

NOTES TO THE FINANCIAL STATEMENTS THIRD STATEMENT OF FINANCIAL POSITION REPORTING PERIOD

 Statement of compliance with IFRS Accounting Standards A third statement of financial position required when an entity changes accounting policies, or makes retrospective restatements or  Accounts presented at least annually
 Material accounting policy information, estimates, assumptions, and reclassifications:  If longer or shorter, entity must disclose
judgements must be disclosed that fact.
 Opening statement is only required if impact is material
 Additional information useful to users understanding/ decision making  Opening statement is presented as at the beginning of the immediately preceding comparative period required by IAS 1 (e.g. if an
to be presented entity has a reporting date of 31 December X2 statement of financial position, this will be as at 1 January X1)
 Information that enables users to evaluate the entity’s objectives,  Only include notes for the third period relating to the change.
policies and processes for managing capital.

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Also refer: Effective Date
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine Periods beginning on or after 1 January 2005

IAS 2 Inventories
DEFINITION SCOPE

Inventories are assets: All inventories except: Does not apply to measurement of inventories held by:
 Held for sale in ordinary course of business  Financial instruments (IAS 32 Financial Instruments: Presentation & 39  Producers of agricultural and forest products measured at NRV
 In the process of production for such sale Financial Instruments: Recognition and measurement & IFRS 9 Financial  Minerals and mineral products measured at NRV
 In the form of materials or supplies to be consumed in the production process Instruments)  Commodity brokers who measure inventory at fair value less costs to sell.
or in the rendering of services.  Biological assets (IAS 41 Agriculture).

INVENTORIES ARE MEASURED AT THE LOWER OF COST AND NET REALISABLE VALUE (NRV)
(This is an implicit impairment test, thus inventories are excluded from the scope of IAS 36 Impairment of Assets)

COST NET REALISABLE VALUE

Includes: Excludes: NRV is the estimated selling price in the ordinary course of business, less the
 Costs of purchase, including non-recoverable taxes, transport and handling  Abnormal waste estimated costs of completion and the estimated costs to make the sale.
 Net of trade volume rebates  Storage costs (unless necessary for the production process)
 Costs of conversion  Admin overheads not related to production
 Other costs to bring inventory into its present condition and location.  Selling costs
 Interest cost (where settlement is deferred)
− IAS 23 Borrowing Costs identifies limited circumstances where borrowing
costs can be included.

Cost Formulas: Measurement Techniques:

 For non-interchangeable items: Standard cost method
− Specific identification.  Takes into account normal levels of materials and supplies, labour, efficiency and capacity utilisation. They are regularly reviewed and, if necessary, revised in the
 For interchangeable items, either: light of current conditions.
− FIFO Retail method
− Weighted average cost.  Often used in the retail industry for measuring inventories of large numbers of rapidly changing items with similar margins for which it is impracticable to use other
 Use of LIFO is prohibited. costing methods. The cost of the inventory is determined by reducing the sales value of the inventory by the appropriate percentage gross margin.

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 Effective Date
Periods beginning on or after 1 January 1994

IAS 7 Statement of Cash Flows

COMPONENTS

Operating activities Investing activities Financing activities

Main revenue producing activities of the entity and other activities that are not Activities that relate to the acquisition and disposal of long-term assets and other Activities that cause changes to contributed equity and borrowings of an entity.
investing or financing activities (including taxes paid/received, unless clearly investments that are not included in cash equivalents.
attributable to investing or financing activities).

Received or paid interest and dividends are disclosed separately and can be classified as operating, investing or financing, based on their nature and as long as they are consistently treated from period to period.

REPORTING CASH FLOWS FROM OPERATING ACTIVITIES DEFINITION: CASH AND CASH EQUIVALENTS

Cash flows from operating activities can be reported using the direct or indirect method.  Short term (where the original maturity is 3 months or less, irrespective of maturity timing post balance date)
 Highly liquid investments
 Readily convertible to known amounts of cash
 Subject to insignificant risk of changes in value.

DIRECT METHOD INDIRECT METHOD CONSIDERATIONS TO NOTE

 Cash received from customers The net cash flow from operating activities is determined by  Non cash investing and financing activities must be  Disclose the components of cash and cash equivalents and provide a
 Cash paid to suppliers adjusting profit or loss for the effects of: disclosed separately reconciliation back to the statement of financial position amount if
 Cash paid to employees  Cash flows must be reported gross. Set-off is only required.
 Changes during the period in inventories and permitted in very limited cases and additional  Disclose information about supplier finance arrangements for users to
 Cash paid for operating expenses operating receivables and payables disclosures are required (refer to IAS 7.24 for
 Interest paid
 Non-cash items such as depreciation, provisions, examples relating to term deposits and loans) exposure to liquidity risk.
 Taxes paid deferred taxes, unrealised foreign currency gains and  Foreign exchange transactions should be recorded at  Non-cash investing and financing transactions are not included in the
 Dividends paid losses, and undistributed profits of associates the rate at the date of the cash flow statement of cash flows and should be disclosed elsewhere in the
 Net cash from operating activities.  All other items for which the cash effects are investing  Acquisition and disposal of subsidiaries are investment financial statements.
or financing cash flows. activities and specific additional disclosures are  Disclose changes in liabilities arising from financing activities,
required distinguishing between changes from:
 Where the equity method is used for joint ventures and − financing cash flows;
associates, the statement of cash flows should only − obtaining or losing control of subsidiaries and other businesses;
show cash flows between the investor and investee − the effect of changes in foreign exchange;
 Disclose cash not available for use by the group − fair value movements; and
 Assets and liabilities denominated in a foreign − other changes.
currency generally include an element of unrealised  Cash payments made by lessees for the reduction of lease liability are
exchange difference at the reporting date financing activities.

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 Effective Date
Periods beginning on or after 1 January 2005

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

CHANGES IN ACCOUNTING
ACCOUNTING POLICIES ERRORS
ESTIMATES

Definition: Definition Definition

Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and Accounting estimates are monetary amounts in Prior period errors are omissions from, and misstatements in, an
presenting financial statements. financial statements that are subject to
measurement uncertainty. from failure to use/misuse of reliable information that:
 Was available when the financial statements for that period were
issued
 Could have been reasonably expected to be taken into account in

Selection and application of accounting policies: Only change a policy if: Change in accounting estimate those financial statements.
 If a standard or interpretation deals with a  Standard/interpretation requires it, or An entity may need to change an accounting Errors include:
transaction, use that standard or interpretation  Change will provide more relevant and reliable information. estimate if changes occur in the circumstances  Mathematical mistakes
 If no standard or interpretation deals with a on which the accounting estimate was based or  Mistakes in applying accounting policies
transaction, judgment should be applied. The as a result of  Oversights and misinterpretation of facts
following sources should be referred to, to make  new information,  Fraud.
the judgement:  new developments or
− Requirements and guidance in other  more experience
Principle Principle
standards/interpretations dealing with similar
If change is due to new standard / interpretation, apply transitional  Correct all errors retrospectively
issues
provisions.  Restate the comparative amounts for prior periods in which error
− Definitions, recognition criteria in the
If no transitional provisions, apply retrospectively. Principle occurred or if the error occurred before that date restate opening
framework
Recognise the change prospectively in profit or loss balance of assets, liabilities and equity for earliest period
− May use other GAAP that use a similar
in: presented.
conceptual framework and/or may consult
 Period of change, if it only affects that period; or
other industry practice / accounting literature
 Period of change and future periods (if applicable).
that is not in conflict with standards / If impractical to determine period-specific effects or cumulative If impractical to determine period-specific effects of the error (or
interpretations. effects of the change, then retrospectively apply to the earliest cumulative effects of the error), restate opening balances (restate
period that is practicable. comparative information) for earliest period practicable.
Disclosure
 Nature and amount of change that has an effect
Consistency of accounting policies: Disclosure Disclosure
in the current period (or expected to have in
Policies should be consistent for similar  The title of the standard / interpretation that caused the change  Nature of the prior period error
future)
transactions, events or conditions.  Nature of the change in policy  For each prior period presented, if practicable, disclose the
 Fact that the effect of future periods is not
 Description of the transitional provisions correction to:
disclosed because of impracticality
 For the current period and each prior period presented, the amount − Each line item affected
of the adjustment to: − Earnings per share (EPS).
− Each line item affected  Amount of the correction at the beginning of earliest period
− Earnings per share. presented
 Amount of the adjustment relating to prior periods not presented  If retrospective application is impracticable, explain and describe
 If retrospective application is impracticable, explain and describe how the error was corrected
how the change in policy was applied  Subsequent periods need not to repeat these disclosures.
 Subsequent periods need not repeat these disclosures.

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 Effective Date
Periods beginning on or after 1 January 2005

IAS 10 Events after the Reporting Period

DEFINITIONS

Favourable or unfavourable event, that occurs between the reporting date and the date that the financial statements are authorised for issue.

ADJUSTING EVENTS NON-ADJUSTING EVENTS

An event after the reporting date that provides further evidence of conditions that existed at the reporting date. An event after the reporting date that is indicative of a condition that arose after the reporting date.
Examples: Examples:
 Events that indicate that the going concern assumption in relation to the whole or part of the entity is not appropriate  Major business combinations or disposal of a subsidiary
 Settlement after reporting date of court cases that confirm the entity had a present obligation at reporting date  Major purchase or disposal of assets, classification of assets as held for sale or expropriation of major assets by government
 Bankruptcy of a customer that occurs after reporting date that confirms a loss existed at reporting date on trade  Destruction of a major production plant by fire after reporting date
receivables  Announcing a plan to discontinue operations
 Sales of inventories after reporting date that give evidence about their net realisable value at reporting date  Announcing a major restructuring after reporting date
 Determination after reporting date of cost of assets purchased or proceeds from assets sold, before reporting date  Major ordinary share transactions
 Discovery of fraud or errors that show the financial statements are incorrect.  Abnormal large changes after the reporting period in assets prices or foreign exchange rates
 Changes in tax rates or tax law
 Entering into major commitments such as guarantees
 Commencing major litigation arising solely out of events that occurred after the reporting period.

Financial statements are adjusted for conditions that existed at reporting date. Financial statements are not adjusted for condition that arose after the reporting date.

GOING CONCERN DIVIDENDS

An entity shall not prepare its financial statements on a going concern basis if management determines after the Dividends that are declared after reporting date are non-adjusting events.
reporting date either that it intends to liquidate the entity or to cease trading, or that it has no realistic alternative but to
do so.
DISCLOSURE
Disclose for each material category of non-adjusting events:
 The nature of the event
 An estimate of its financial effect or the statement that such estimate cannot be made.

DISCLOSURES FOR ADJUSTING AND NON-ADJUSTING EVENTS

Date of authorisation of issue of financial statements and by whom
 lose that fact
 For any information received about conditions that existed at reporting date, disclosure that relate to those conditions should be updated with the new information.

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SIC-25 Income Taxes Changes in the Tax Status of an Entity or its Shareholders, IFRIC 23 Uncertainty over Income Tax Treatments Periods beginning on or after 1 January 1998

IAS 12 Income Taxes

CURRENT TAX DEFINITIONS TEMPORARY DIFFERENCE AND TAX BASE

 Recognise liability for unsettled portion of tax expense Temporary difference: Difference between the carrying amount of an asset/liability and its tax base.
 Recognise an asset to the extent amounts paid exceed
Tax base of an asset Tax base of a liability Tax base of income received in advance
amounts due
 Is the amount that will be deductible for tax purposes against any taxable economic benefits Is its carrying amount Less any amount that  Is its carrying amount
 Tax loss which can be used against future taxable
that will flow to the entity when it recovers the carrying amount of the asset will be deductible for tax purposes in  Less any revenue that will not be taxable
income can be recognised as an asset (deferred tax  If those economic benefits will not be taxable, the tax base of the asset is equal to its carrying respect of the liability in future periods. in the future.
asset). amount.
TEMPORARY DIFFERENCES
Taxable temporary differences will result in taxable amounts in future when the carrying amount of an asset is recovered or liability is settled.
CURRENT TAX MEASUREMENT Deductible temporary differences will result in deductible amounts in future when the carrying amount of an asset is recovered or a liability is settled.
Measure the asset/liability using the tax rates that are
enacted or substantially enacted at the reporting date. DEFERRED TAX
Deferred tax liabilities Deferred tax assets
Disclose current tax expense (income) related to Pillar Two
Recognise liabilities for all taxable temporary differences, Recognise for deductible temporary differences, unused tax losses, unused tax credits to the extent that taxable profit will be available
income taxes.
except to the extent it arises from: against which the asset can be used, except to the extent it arises from the initial recognition of an asset/liability that:
 Initial recognition of goodwill; or  Is not a business combination;
 Initial recognition of an asset/liability that does not affect  does not affect accounting/taxable profit; and

REBUTTABLE PRESUMPTION FOR accounting or taxable profit, the transaction is not a  does not give rise to equal taxable and deductible temporary differences.
INVESTMENT PROPERTY AT FAIR VALUE business combination and at the time of the transaction,
does not give rise to equal taxable and deductible Recognise for deductible temporary differences arising from investments in subsidiaries and associates to the extent it is probable the
UNDER IAS 40 temporary differences. temporary difference will reverse in the foreseeable future and there will be available tax profit to be utilised.
 Liabilities from undistributed profits from investments in
Presumption - for investment properties at fair value, A deferred tax asset is recognised for the carry forward of unused tax losses and unused tax credits to the extent that it is probable
subsidiaries, branches and associates, and interests in that future taxable profits will be available (i.e. the entity has sufficient taxable temporary differences or there is convincing other
deferred tax is calculated assuming the recovery of the joint ventures where company can control the timing of
carrying amount of the investment property, will ultimately evidence that sufficient taxable profits will be available against which the unused tax losses or unused tax credits can be utilised).
the reversal.
be entirely through sale - regardless of whether this is
actually managements intention or not. Disclose that the entity has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
Presumption is rebutted and the carrying amount will
ultimately be recovered through use over the life of the DEFERRED TAX - MEASUREMENT
asset rather than sale:
 Measure the balance at tax rates that are expected to apply in the period in which the asset is realised or liability settled based on tax rates that have been enacted or substantively
If the asset is depreciable; and enacted by the end of the reporting period
The asset is held in order to consume the assets benefits  Deferred tax assets and liabilities are not discounted
over the life of the asset.  The applicable tax rate depends on how the carrying amount of an asset or liability is recovered or settled
 Current and deferred tax shall be recognised as income or an expense and included in profit or loss for the period, except to the extent that the tax arises from a transaction or event
Land land is not depreciable and therefore the recovery which is recognised, in the same or a different period, directly in equity or other comprehensive income, or a business combination
of land is always through sale.  Current tax and deferred tax are charged or credited directly to equity or other comprehensive income if the tax relates to items that are credited or charged, in the same or a different
period, directly to equity or other comprehensive income.

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Effective Date
Page 1 of 2 IFRIC 12 Service Concession Arrangements, SIC-29 Disclosure Service Concession Arrangements, SIC-32 Intangible Assets Web Site
Periods beginning on or after 1 January 2005
Costs

IAS 16 Property Plant and Equipment

RECOGNITION AND MEASUREMENT

Recognise when it is: Cost comprises:

 Probable that the future economic benefits associated with the asset will flow to the entity; and  Purchase price plus import duties and taxes
 The cost of the asset can be reliably measured.  Any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in
a manner intended by management
Measurement:
 The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.
 Initially recorded at cost

 Subsequent costs are only recognised if costs can be reliably measured and these will lead to additional economic benefits

flowing to the entity.

SUBSEQUENT MEASUREMENT

THE COST MODEL THE REVALUATION MODEL

The asset is carried at a revalued amount, being its fair value at the date of the revaluation, less subsequent depreciation,
The asset is carried at cost less accumulated depreciation and impairment losses.
provided that fair value can be measured reliably.

Depreciation  Revaluations should be carried out regularly (the carrying amount of an asset should not differ materially from its fair value at
 the reporting date either higher or lower)
 The residual value, the useful life and the depreciation method of an asset are reviewed annually at reporting date  Revaluation frequency depends upon the changes in fair value of the items measured (annual revaluation for volatile items or
 Revenue based depreciation is prohibited. intervals between 3 - 5 years for items with less significant changes)
 Depreciation method reflects the pattern in which future economic benefits are expected to be consumed.  If an item is revalued, the entire class of assets to which that asset belongs is required to be revalued
 Changes in residual value, depreciation method and useful life are changes in estimates are accounted for prospectively in  Revalued assets are depreciated the same way as under the cost model
accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors − The gross carrying amount is adjusted in a manner that is consistent with the revaluation of the carrying amount of the
 Depreciation is charged to profit or loss, unless it is included in the carrying amount of another asset asset. The accumulated depreciation at the date of the revaluation is adjusted to equal the difference between the
 Depreciation commences when the asset is available for use. gross carrying amount and the carrying amount of the asset after taking into account accumulated impairment losses
− Accumulated depreciation is eliminated against the gross carrying amount.
 Transfer between reserves depreciation on revaluation amount
 An increase in value is credited to other comprehensive income under the heading revaluation surplus unless it represents the
reversal of a revaluation decrease of the same asset previously recognised as an expense, in this case the increase in value is
recognised in profit or loss.

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 Also refer:
Effective Date
Page 2 of 2 IFRIC 12 Service Concession Arrangements, SIC-29 Disclosure Service Concession Arrangements, SIC-32 Intangible Assets Web Site
Periods beginning on or after 1 January 2005
Costs

IAS 16 Property Plant and Equipment

SUBSEQUENT MEASUREMENT (continued)

OTHER DISCLOSURE

Component accounting Disclosures include but are not limited to (refer to paragraphs 73 - 79):
 Significant parts/components are required to be depreciated over their estimated useful life  Measurement bases used for determining the gross carrying amount
 Costs of replacing components are required to be capitalised  Depreciation methods used
 Continued operation of an item of property, plant and equipment (PPE) may require regular major inspections for faults  Useful lives or the depreciation rates used
regardless of whether parts of the item are replaced. When each major inspection is performed, its cost is recognised in  Gross carrying amount and the accumulated depreciation at the beginning and end of the period
the carrying amount of the item of PPE as a replacement if the recognition criteria are satisfied.  A reconciliation of the carrying amount at the beginning and end of the period showing:
 additions / assets classified as held for sale or included in a disposal group classified as held for sale / other disposals /
Spare parts, stand-by or servicing equipment
acquisitions through business combinations / changes resulting from revaluations and from impairment losses recognised or
 Are classified as PPE when they meet the definition of PPE, and are classified as inventory when definition is not met. reversed in other comprehensive / impairment losses recognised in profit or loss / impairment losses reversed in profit or
Disposals loss / depreciation / exchange differences / other changes.
 Existence and amounts of restrictions on title, and PPE pledged as security for liabilities
 Remove the asset from the statement of financial position on disposal or when withdrawn from use and no future economic  Contractual commitments for the acquisition of PPE.
benefits are expected from its disposal
 The gain or loss on disposal is the difference between the proceeds and the carrying amount and is recognised in profit or
loss
 When a revalued asset is disposed of, any revaluation surplus may be transferred directly to retained earnings. The transfer
to retained earnings is not made through profit or loss.

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Page 1 of 2
IFRIC 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction Periods beginning on or after 1 January 2013

IAS 19 Employee Benefits

SCOPE DEFINITION

All employee benefits except IFRS 2 Share-based Payment. Employee benefits are all forms of consideration given by an entity in exchange for services rendered or for the termination of employment.

EMPLOYEE BENEFITS

SHORT TERM EMPLOYEE BENEFITS OTHER LONG TERM EMPLOYEE BENEFITS PROFIT SHARING AND BONUS
SCHEMES
Employee benefits are those expected to be settled wholly within the 12 months after the reporting Employee benefits other than short-term employee benefits, post-employment benefits, and
period end, in which the employee has rendered the related services. termination benefits. Recognise the expense when entity has a present
legal or constructive obligation to make payments;
Statement of financial position
short-term employee benefit. and a reliable estimate of the obligation can be
 Carrying amount of liability = present value of obligation minus the fair value of any plan
Compensated absences made.
assets
 Accumulating recognise expense when service that increases entitlement is rendered. e.g.  Actuarial gains and losses and past service costs are recognised immediately in profit or
leave pay loss.
 Non-accumulating recognise expense when absence occurs. Statement of comprehensive income
All short term benefits Recognise the net total of: Current service cost + Net interest on net defined benefit
Recognise the undiscounted amount as an expense / liability e.g. wages, salaries, bonuses, etc. liability/(asset) + remeasurement of the net defined benefit liability/(asset).

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Page 2 of 2
IFRIC 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction Periods beginning on or after 1 January 2013

IAS 19 Employee Benefits

EMPLOYEE BENEFITS (continued)

POST EMPLOYMENT BENEFITS TERMINATION BENEFITS

Employee benefits payable after the completion of employment (excluding termination and short term benefits), such as:
 Retirement benefits (e.g. pensions, lump sum payments)
 Other post-employment benefits (e.g. post employment life insurance, medical care).
 Recognise liability and expense at the earlier of:
− The date the entity can no longer withdraw the benefit or offer
− The date the entity recognises restructuring costs under IAS 37.
 If termination benefits settled wholly before 12 months from reporting date apply requirements for short-term employee
DEFINED BENEFIT PLAN (DBP)
benefits
 If termination benefits are not settled wholly before 12 months from reporting date apply requirements for other long
These are post employment plans other than defined contribution plans. IAS 19 (2011) prohibits delayed recognition of
term employee benefits.
actuarial gains and losses and past-service-cost, with the actual net defined benefit liability/(asset) presented in the
statement of financial position.
Statement of financial position
Entities recognise the net defined benefit liability (asset) in the statement of financial position (being equal to the deficit MULTI EMPLOYER PLANS
(surplus) in the defined benefit plan and the possible effect of the asset ceiling).
 These are post-employment plans other than state plans that pool the assets of various entities that are not under common
When an entity has a surplus in a DBP, it measures the net defined benefit asset at the lower of:
control and use those assets to provide benefits to employees of more than one entity
 The surplus in the defined benefit plan
 The asset ceiling (being the present value of any economic benefits available in the form of refunds from the plan or
 May be a defined contribution or defined benefit plan
 If the plan is a defined benefit plan, an entity may apply defined contribution accounting when sufficient information is not
reductions in future contributions to the plan), determined using the discount rate in reference to market yields at the
end of the reporting period on high quality corporate bonds (IAS 19.83). available to apply the accounting requirements for defined benefit plans.

Statement of comprehensive income

Actuarial gains and losses are recognised in other comprehensive income in the period in which they occur.
Past-service-costs are recognised in profit or loss in the period incurred. DEFINED CONTRIBUTION PLAN
The net interest on the net defined benefit liability/(asset) is recognised in profit or loss:
 Being equal to the change of the defined benefit liability/(asset) during the period that arises from passage of time.
 The entity pays fixed contributions into a fund and does not have an obligation to pay further contributions if the fund does
Determined by multiplying the net defined benefit liability/(asset) by the discount rate, taking into account actual not hold sufficient assets
contributions and benefits paid during the period.  Recognise the contribution expense /liability when the employee has rendered the service.

 Service cost (current, past, curtailment loss/(gain), and settlement loss/(gain) in profit or loss
 Net Interest (refer above) in profit or loss DISCLOSURE
 Remeasurements (actuarial gains, the return on plan assets (excl. net interest), change in the effect of the asset ceiling)
in other comprehensive income (OCI). IAS 19 requires extensive disclosures in respect of DBP, including narrative descriptions of: the regulatory framework; funding
arrangements; potential (non-) financial risks; and/or asset ceiling tests.

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Also refer: Effective Date
SIC-10 Government Assistance No Specific Relation to Operating Activities Periods beginning on or after 1 January 1984

IAS 20 Government Grants

DEFINITION SCOPE

Government grants: The standard does not deal with:

 Assistance by government  Government assistance that is provided for an entity in the form of benefits that are available in determining taxable income or

 In the form of transfers of resources to an entity are determined or limited to the basis of income tax liability
 In return for past or future compliance with certain conditions relating to the operating activities of the entity  Government participation in the ownership of an entity

 Exclude forms of government assistance which cannot reasonably have a value placed on them and which cannot be  Government grants covered by IAS 41 Agriculture.

distinguished from the normal trading transactions of the entity.

TYPES OF GOVERNMENT GRANTS

GRANTS RELATED TO INCOME GRANTS RELATED TO ASSETS

A grant receivable as compensation for costs, either: A grant relating to income may be presented in one of two A grant relating to assets may be presented in one of two ways:
 Already incurred ways:  As deferred income (and released to profit or loss when related expenditure impacts profit or loss)
 For immediate financial support, with no future related costs.  

Recognise as income in the period in which it is receivable.  Deducted from the related expense.

GRANTS RELATED TO ASSETS

NON-MONETARY GRANTS Grants are recognised when both there is reasonable The grant is recognised as income over the period necessary to match it with the related costs, for which it is intended to
assurance: compensate on a systematic basis and should not be credited directly to equity.
 the entity will comply with the conditions attached to the
Non-monetary grants, such as land or other resources, are
usually accounted for at fair value, although recording both grant, and
 The grant will be received
the asset and the grant at a nominal amount is permitted.

DISCLOSURE
 Accounting policy adopted for grants, including method of statement of financial position presentation
 Nature and extent of grants recognised in the financial statements
 An indication of other forms of government assistance from which the entity has directly benefited
 Unfulfilled conditions and contingencies attaching to recognised grants.

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Also refer:
Effective Date
IFRIC 16 Hedges of a Net Investment in a Foreign Operation (for entities that continue to apply the hedge
Periods beginning on or after 1 January 2005
accounting requirements of IAS 39), IFRIC 22 Foreign Currency Transactions and Advance Consideration

IAS 21 The Effects of Changes in Foreign Exchange Rates

FUNCTIONAL CURRENCY FOREIGN CURRENCY TRANSACTIONS Monetary items
Units of currency held and assets/ liabilities to be received/paid in a fixed or
Initial recognition determinable amount of money.
Spot rate at transaction date unless there is a lack of  Translated at closing rate at reporting date
primary economic environment in which it operates.
 Gain or loss is recognised in profit or loss.
exchangeability into the other currency (R)
Determine functional currency of each entity within a
group - currency of primary economic environment in
which entity operates.
Subsequent measurement Non-monetary items
 Rate at transaction date (if item at historical cost)
START Is the entity a foreign  Rate at revaluation date (if item carried at revalued amount).
operation?
Impairment test
Primary factors If yes, is the foreign Measure non-monetary assets at the lower of either:
When determining the appropriate functional currency,
 Carrying amount x historical rate
management should give priority to the following factors:
 Net realisable value/recoverable amount x closing rate at the end of the
 Currency influencing sales prices for goods and services carry on business as if it is an period.
 Currency of country whose competitive forces and

regulations determine sale prices own operations? Translation gains or losses on asset/liability recognised in profit or loss.
 Currency mainly influencing input costs.
FUNCTIONAL CURRENCY ESTABLISHED
Secondary factors the foreign operation has the Loan forming part of net investment in foreign operation
The primary indicators may be determinative. However, same functional currency as Exchange gains and losses to equity on consolidation only. Recorded in profit
the following two indicators serve as supporting the parent. or loss in the separate (entity only) financial statements.
evidence.
Currency in which funds/receipts: (Parent: the entity that has CONSOLIDATION OF FOREIGN ENTITIES AND
 from financing activities are generated
the foreign operation as its TRANSLATION OF FINANCIAL STATEMENTS TO
subsidiary, branch associate Disposal of a foreign operation
 from operating activities are retained. A PRESENTATION CURRENCY The cumulative amount of exchange differences that was recognised in
or joint arrangement).
equity is reclassified to profit and loss (recycled).

Translation method General principle

KEY PRINCIPLES  Assets & liabilities closing rate Foreign exchange gain or loss to profit or loss
 Income and expenses rate at transaction date (for practical
 No need to present financial statements in functional currency. A presentation currency can purposes a monthly or quarterly rate might approximate the Exception
be selected transaction date rates) Where a gain or loss on a non-monetary item is recognised in equity, the
 Accounting records must be kept in functional currency  The resulting exchange differences are recognised in other
foreign exchange gain or loss is also recognised in equity.
 A group does not have a functional currency. Functional currency is assessed separately for comprehensive income (foreign currency translation reserve).
each entity in the group.

(R) AMENDMENTS AND STANDARDS ISSUED BUT NOT YET EFFECTIVE

This IFRS Accounting Standard includes amendments that were issued as at 31 December 2024, but

73 amendments, please refer to IFR Bulletin 2023/08.

Also refer:
Effective Date
IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities, IFRIC 12 Service Concession Arrangements
Periods beginning on or after 1 January 2009

IAS 23 Borrowing Costs

DEFINITIONS

BORROWING COSTS QUALIFYING ASSET

 Borrowing costs are interest and other costs incurred by an entity in connection with the borrowing of funds  A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its
 Borrowing costs may include: intended use or sale
− Interest expense calculated using the effective interest method as in IFRS 9 ;  Examples include:
− Interest in respect of lease liabilities recognised in accordance with IFRS 16 Leases; − Inventories (that are not produced over a short period of time); manufacturing plants; power
− Exchange differences arising from foreign currency borrowings to the extent that they are regarded as an generation facilities; intangible assets; investment properties; bearing plants
adjustment to interest costs
RECOGNITION
 Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are required to be capitalised as part of the cost of that asset
 Other borrowing costs are recognised as an expense when incurred
 If funds are borrowed specifically, the amount of borrowing costs eligible for capitalisation are the actual borrowing costs incurred on that borrowing during the period (less any investment income on temporary
investments of the borrowings)

Capitalisation commences when: Capitalisation is suspended during extended periods in which active Capitalisation ceases when substantially all the activities necessary
 Expenditures for the asset are being incurred development is interrupted. to prepare the qualifying asset for its intended use or sale are
 Borrowing costs are being incurred complete.
 Activities necessary to prepare the asset for its intended use or
sale are undertaken.
DISCLOSURE

 Amount of borrowing cost capitalised during the period

 Capitalisation rate used.

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Page 1 of 2
Periods beginning on or after 1 January 2011

IAS 24 Related Party Disclosures

SCOPE DEFINITIONS

IAS 24 shall be applied in: IAS 24 requires disclosure of: Key management personnel Close family member
 Identifying related party relationships and  Related party relationships Those persons having authority and Includes, but is not limited to:
transactions;  Related party transactions responsibility for:  Children and Dependents
 Identifying outstanding balances, including  Outstanding balances with related parties Related party Government-related entity
commitments, between an entity and its  Refer to diagram on next page
related parties;  Commitments to related parties. Entity that is controlled, jointly controlled or
Related party transaction

GOVERNMENT-RELATED ENTITIES

Government-related entities are exempt from the disclosure requirements of paragraph 18 in relation
to related party transactions and outstanding balances, including commitments.

DISCLOSURE

Relationships between parents and subsidiaries Key management personnel compensation Related party transactions
 Regardless of whether there have been transactions, Disclose in total for the following categories: Only if there have been transactions, disclose:
disclosure of the name of the parent or ultimate controlling  Short-term employee benefits  The nature of related party relationship
party (if different) is required.
 Post-employment benefits  Information about transactions
If parent or ultimate controlling party did not prepare consolidated
financial  Other long-term benefits  Information about outstanding balances to understand the potential
 Termination benefits effect on the Annual Financial Statements
 Information about impairment or doubtful debts with related parties.

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Page 2 of 2
Periods beginning on or after 1 January 2011

IAS 24 Related Party Disclosures

EXAMPLE SHOWING RELATED PARTIES

Person Y
 Has (ultimate) control of RE Entity A Person V
Person U
and joint control of RE  Close family
Controls RE.  Key management

member of U
Entity Y1 Entity Y2
 Controlled by Y  Y is key management
personnel.
 Jointly controlled Entity A1 Entity U1 Entity V1
by Y
 Subsidiary of A Controlled by U Controlled by V
Person Z  Significant influence Entity Y3
 

 Close family member of Y held by Y.  Joint Venture of A  Jointly controlled  Jointly controlled
 Y3 is controlled by
Associate of A. by U. by V.
Y2. 

Entity Z1 Entity Z2
Entity V1
 Controlled by Z  Z is key management  Jointly controls RE.
personnel.
 Jointly controlled
by Z
Entity Z3 Entity C
 Significant influence
held by Z.  Z3 is controlled by  Significant
influence over RE. Entity B1
Z2
 Joint venture of B
 Associate of B.
Entity C1
 Joint venture of B
Person X Person W
 Close family  Significant REPORTING ENTITY  Associate of B.
member of W influence over RE
Explanation
Entity RE1
Entity X1 Entity W1  All presented entities and persons are considered
 Subsidiary of RE to be related parties of the reporting entity
 Controlled by X  Controlled by W
 Joint Venture of RE  Blue ellipses indicate persons
 Jointly controlled  Jointly controlled
by X. by W.  Associate of RE.  Black outlined boxes indicate entities.

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 Effective Date
Periods beginning on or after 1 January 1988

IAS 26 Accounting and Reporting by Retirement Benefit Plans

DEFINITION SCOPE

Retirement benefit plans: an arrangement by which an entity provides benefits (annual income or lump sum) to employees after they Financial statements of retirement benefit plans (where such financial
terminate from service. statements are prepared).

Defined benefit plans Defined contribution plans DISCLOSURE

A retirement benefit plan by which employees receive benefits A retirement benefit plan by which benefits to employees
based on a formula usually linked to employee earnings. are based on the amount of funds contributed to the plan plus Disclosure requirements of IAS 26 are onerous. The main disclosures required are set out
below. This list is not exhaustive. It is recommended that entities refer to IAS 26.34 - 36
investment earnings thereon. for all disclosure requirements.
 Statement of net assets available for benefit, showing:
− Assets at the end of the period
− Basis of valuation
DEFINED BENEFIT PLANS DEFINED CONTRIBUTION PLANS
− Details of any single investment exceeding 5% of net assets or 5% of any category
of investment
The report of a defined benefit plan should contain either: The report of a defined contribution plan should contain: − Details of investment in the employer (if any)
 A statement that shows the net assets available for benefits;  A statement of net assets available for benefits − Liabilities other than the actuarial present value of plan benefits.

the actuarial present value of promised retirement benefits and a description of the funding policy.  Statement of changes in net assets available for benefits, showing:
− Employer contributions
(distinguishing between vested benefits and non-vested − Employee contributions
benefits) and the resulting excess or deficit − Investment income
VALUATION OF PLAN ASSETS
 A statement of net assets available for benefits, including − Other income
− Benefits paid
either a note disclosing the actuarial present value of Retirement benefit plan investments must be carried at fair value. − Administrative expenses
promised retirement benefits (distinguishing between vested If fair values cannot be estimated for certain retirement benefit − Other expenses
benefits and non-vested benefits) or a reference to this plan investments, disclosure should be made of the reason why − Income taxes
− Profit or loss on disposal of investments
information in an accompanying actuarial report. fair value is not used. − Change in fair value of investments
− Transfer to/from other plans.
 Description of funding policy
 If an actuarial valuation has not been prepared at the reporting date of a defined benefit plan, the most recent valuation should be  Summary of significant accounting policies

used as a base and the date of the valuation disclosed  Other details about the plan
 Description of the plan and of the effect of any changes in the plan during the period
 The actuarial present value of promised retirement benefits should be based on the benefits promised under the terms of the plan on  Disclosures for defined benefit plans:
service rendered to date, using either current salary levels or projected salary levels, with disclosure of the basis used − Actuarial present value of promised benefit obligations distinguishing between
 The effect of any changes in actuarial assumptions that have had significant effect on the actuarial present value of promised vested and non-vested benefits
− Description of actuarial assumptions
retirement benefits should be disclosed
− Description of the method used to calculate the actuarial present value of promised
 The report should explain the relationship between the actuarial present value of promised retirement benefits and the net assets benefit obligations.
available for benefits, and the policy for the funding of promised benefits.

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Page 1 of 2
Periods beginning on or after 1 January 2013

IAS 27 Separate Financial Statements

SCOPE DEFINITIONS

When an entity elects (or is required by local regulations) to present separate financial Separate financial statements Consolidated financial statements For definitions of: associate; control of an
statements, IAS 27 applies in accounting for investments in: investee; group; joint control; joint venture; joint
Financial statements presented by a parent (i.e. The financial statements of a group in which the
Subsidiaries venturer; parent; significant influence; and
 an investor with control of a subsidiary) or an assets, liabilities, equity, income, expenses, and
subsidiary please refer to the below standards:
 Joint ventures investor with joint control of; or significant cash flows, of the parent and its subsidiaries are
influence over an investee, in which the presented as a single economic entity.  IFRS 10 Consolidated Financial Statements
 Associates. investments are accounted for at cost, at fair  IFRS 11 Joint Arrangements
IAS 27 does not mandate which entities produce separate financial statements. value, or using the equity method.
 IAS 28 Investments in Associates and Joint
Ventures.

SEPARATE FINANCIAL STATEMENTS

 Separate financial statements can, but are not required to be presented in addition to consolidated financial statements or, where an entity does not have subsidiaries, individual financial statements in which investments in associates and joint ventures
are accounted for using the equity method.
 Investments are accounted for: (i) At cost; (ii) in accordance with IFRS 9 Financial Instruments; or (iii) using the equity method in accordance with IAS 28
 An entity that is exempt in accordance with IFRS 10.4(a) from consolidation or IAS 28.17 from applying the equity method may present separate financial statements as its only financial statements.

PREPARATION OF SEPARATE FINANCIAL STATEMENTS

Investment in subsidiaries, joint ventures, and associates Investments in subsidiaries, joint ventures, and Investments in associates or joint ventures at fair value Dividends received
associates classified as held for sale
Accounted for either: Investments in associates or joint ventures that are Dividends received from subsidiaries, joint ventures, and
When investments are classified as held for sale or for measured at fair value in accordance with IFRS 9 are associates are recognised when the right to receive the
 At cost,
distribution to owners (or included in a disposal group that is required to be measured in the same way in the separate dividend is established and accounted for as follows:
 At fair value in accordance with IFRS 9, or classified as held for sale or for distribution to owners), they and consolidated financial statements (i.e. at fair value).  in profit or loss, if the investment is accounted for at cost
Using the equity method (see IAS 28). are accounted for:
 or at fair value;
The entity is required to apply the same accounting for each  In accordance with IFRS 5 Non-current Assets Held for  as a reduction from the carrying amount of the
category of investments. Sale and Discontinued Operations, if previously investment, if the investment is accounted for using the
accounted for at cost equity method.
 In accordance with IFRS 9, if previously accounted for in
accordance with IFRS 9.

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Page 2 of 2
Periods beginning on or after 1 January 2013

IAS 27 Separate Financial Statements

DISCLOSURE

An entity is required to apply all applicable IFRS Accounting Standards when When a parent qualifies and elects not to prepare consolidated financial When a parent (other than a parent using the consolidation exemption) or an
providing disclosures in its separate financial statements. statements (IFRS 10.4(a)) and instead prepares separate financial statements, investor with joint control of, or significant influence over, an investee
it is required to disclose: prepares separate financial statements, it is required to disclose:
 That the financial statements are separate financial statements  That the financial statements are separate financial statements
 That the paragraph 4(a) exemption has been used  The reasons why the separate financial statements are prepared if not
 The name, principal place of business, address, and country of incorporation, required by law
of the entity whose IFRS Accounting Standards compliant consolidated  A list of significant investments in subsidiaries, joint ventures and associates,
financial statements are publicly available including:
 A list of significant investments in subsidiaries, joint ventures and associates, − The name of those investees
including: − The investees principal place of business and country of incorporation
− The name of those investees − The proportion of the ownership interest and the proportion of voting rights
− The investees principal place of business and country of incorporation held in those investees.
− The proportion of the ownership interest and its proportion of the voting rights  A description of the method used to account for the investments listed
held in those investees.  The financial statements prepared in accordance with IFRS 10, IFRS 11, or IAS
 A description of the method used to account for the investments listed under 28 to which they relate.
the previous bullet point.

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Page 1 of 3
Periods beginning on or after 1 January 2013

IAS 28 Investments in Associates and Joint Ventures

SCOPE DEFINITIONS

Applies to all entities Associate Joint arrangement The equity method is a method of Refer to IFRS 10 Appendix A, for definitions
that are investors with An entity over which the investor has Arrangement of which two or more parties accounting: of:
joint control of, or significant influence. have joint control.  That initially recognises an investment in  Control
significant influence an investee at cost
over, an investee. Significant influence Joint control  Group
Power to participate in financial and The contractually agreed sharing of control  Thereafter adjusts the investment for the  Parent
operating policy decisions of the investee. of an arrangement - decisions require the post-
share of net assets of the investee (IAS  Separate financial statements
But not control or joint control over those unanimous consent of the parties sharing
control. 28.2)  Subsidiary.
policies.
Joint venture  The profit or loss of the investor includes
the investor's share of the profit or loss of
A joint arrangement whereby the parties the investee.
that have joint control of the arrangement
have rights to the net assets of the
arrangement.

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Page 2 of 3
Periods beginning on or after 1 January 2013

IAS 28 Investments in Associates and Joint Ventures

APPLICATION

SIGNIFICANT INFLUENCE EQUITY METHOD ISSUES TO NOTE

 Rebuttable presumption: 20% - 50%  The investment is initially recognised at cost  Potential voting rights that are currently exercisable are taken into account to
shareholding gives rise to significant  Subsequently, the carrying amount is increased or decreased to determine whether significant influence exists, but equity accounting is based on
influence actual interest only
 Evidenced in one or more of the following the date of acquisition (IAS 28.10):  Financial statements of the investor and investee used must not differ by more
ways: 
than 3 months in terms of the reporting date
− Representation on the board of directors or 

equivalent governing body of the investee  Distributions received from an investee reduce the carrying amount of transactions with the investee are eliminated in the equity accounted financial
− Participation in policy-making processes, the investment statements of the parent
including participation in decisions about  Adjustments to the carrying amount may also arise from changes in the  Use uniform accounting policies for like transactions and other events in similar
dividends or other distributions circumstances
− Material transactions between the investor property, plant and equipment and foreign exchange translation 

and the investee differences. The investor's share of those changes is recognised in OCI discontinue recognising share of further losses. The interest in an investee is the
− Interchange of managerial personnel of the investor carrying amount of the investment in the investee under the equity method, and
 An investment or a portion of an investment in an investee that meets any long-
− Provision of essential technical information. investment in the investee. (an item for which settlement is neither planned nor
-
in accordance with IFRS 5 Non-current Assets Held for Sale and likely to occur in the foreseeable future is, in substance, an extension of the
Discontinued Operations.
to these long term interests
 The equity method is used from the date significant influence arises, to
the date significant influence ceases  If ownership interest is reduced, but equity method remains, the entity reclassifies
to profit or loss a proportion gain or loss that had previously been recognised in
OCI.

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Page 3 of 3
Periods beginning on or after 1 January 2013

IAS 28 Investments in Associates and Joint Ventures

APPLICATION (continued)

EXEMPTION FROM EQUITY METHOD IMPAIRMENT LOSSES DISCONTINUING THE USE OF THE EQUITY METHOD

1. If the entity is a parent that is exempt from preparing consolidated financial  Goodwill that forms part of the carrying An entity is required to discontinue the use of the equity method from the date
statements, as set out in IFRS 10 Consolidated Financial Statements paragraph 4(a); amount of an investment in an when its investment ceases to be an associate or a joint venture as follows:
or investee is not separately recognised  If an investment becomes a subsidiary, the entity follows the guidance in
2. If all of the following apply: and therefore not tested separately for IFRS 3 Business Combinations and IFRS 10
impairment instead the entire
− The investor is a wholly owned subsidiary and its owners have been informed  If any retained investment is held as a financial asset, the entity applies IFRS
about the decision accordance with IAS 36. 9 Financial Instruments, and recognise in profit or loss the difference
−
between:

− The investor did not file its financial statements with a securities commission or − The fair value of any retained interest and any proceeds from disposing of a
other regulator for the purposes of issuing its shares to the public part interest in the associate or joint venture

− The ultimate or intermediate parent of the investor produces consolidated financial − The carrying amount of investment at date equity method discontinued.
statements that comply with IFRS Accounting Standards  Account for all amounts recognised in OCI in relation to that investment on
3. The investments are held by venture capital organisations, mutual funds, unit trusts same basis as if investee had directly disposed of related assets and
and similar entities for which the investor elects to account for at fair value through liabilities.
profit or loss

DISCLOSURES SEPARATE FINANCIAL STATEMENTS

The disclosure requirements for Investments in Associates and Joint Ventures are provided in IFRS 12
Disclosure of Interests in Other Entities. either at cost or at fair value in accordance with IFRS 9.

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Page 1 of 2
IFRIC 7 Applying the Restatement Approach under IAS 29 Periods beginning on or after 1 January 2007

IAS 29 Financial Reporting in Hyperinflationary Economies

SCOPE INDICATORS OF HYPERINFLATION

IAS 29 is applied to Hyperinflation is indicated by characteristics of the economic environment of a country which include, but are not limited to, the following:
the individual  The general population prefers to keep its wealth in non-monetary assets or in a relatively stable foreign currency
financial statements,
and the consolidated  The general population regards monetary amounts not in terms of the local currency but in terms of a relatively stable foreign currency prices may be quoted in that currency
financial.  Sales and purchases on credit take place at prices that compensate for the expected loss of purchasing power during the credit period, even if the period is short
 Interest rates, wages and prices are linked to a price index
 The cumulative inflation rate over three years is approaching, or exceeds, 100%.

RESTATEMENT OF FINANCIAL STATEMENTS HYPERINFLATIONARY ECONOMIES

The financial statements of an entity whose functional currency is the currency of a hyperinflationary economy are stated in terms of the measuring unit current at the end of the reporting period. Corresponding figures
in relation to prior periods are also restated. The gain or loss on the net monetary position is included in profit or loss and separately disclosed.

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IFRIC 7 Applying the Restatement Approach under IAS 29 Periods beginning on or after 1 January 2007

IAS 29 Financial Reporting in Hyperinflationary Economies

HISTORICAL COST FINANCIAL STATEMENTS CURRENT COST FINANCIAL STATEMENTS

STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION STATEMENT OF COMPREHENSIVE POSITION

All items in the statement of comprehensive income Statement of financial position amounts not already Items at current cost are not restated because they All amounts are restated into the measuring unit
are expressed in terms of the measuring unit expressed in terms of the measuring unit current at are already expressed in the unit of measurement current at the end of the reporting period by
current at the end of the reporting period. the end of the reporting period are restated by current at the end of the reporting period. applying a general price index.
Therefore all amounts need to be restated by applying a general price index.
applying the change in the general price index from
the dates when the items of income and expenses
were initially recorded in the financial statements.

COMPARATIVES AND STATEMENT OF CASH FLOWS

All items in the statement of cash flows are expressed in terms of the measuring unit current at the end of
the reporting period. Corresponding figures for the previous reporting period, whether based on either a
historical cost approach or a current cost approach, are restated by applying a general price index.
Assets and liabilities linked by Monetary items are not restated All other assets and liabilities are
agreement to changes in prices because they are already non-monetary. Some non-
are adjusted in accordance with expressed in terms of the monetary items are carried at
the agreement in order to monetary unit current at the end amounts current at the end of the ECONOMIES CEASING TO BE HYPERINFLATIONARY
ascertain the amount outstanding of the reporting period. reporting period, such as net
at the end of the reporting realisable value and market When an economy ceases to be hyperinflationary and an entity discontinues the preparation and
period. value, so they are not restated. presentation of financial statements prepared in accordance with IAS 29, it treats the amounts expressed
All other non-monetary assets in the measuring unit current at the end of the previous reporting period as the basis for the carrying
and liabilities are restated. amounts in its subsequent financial statements.

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Effective Date
Page 1 of 2 IFRIC 2 -Operative Entities and Similar Instruments, IFRIC 17 Distributions of Non-Cash Assets to Owner,
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments Periods beginning on or after 1 January 2005

IAS 32 Financial Instruments: Presentation

SCOPE OWNER TRANSACTIONS

IAS 32 applies to all types of financial instruments except:  Distributions to holders of equity instruments are debited directly in equity
 Those interests in subsidiaries, associates or joint ventures that are accounted for in accordance with IFRS 10  Transaction costs of equity transactions are accounted for as deductions from equity.
Consolidated Financial Statements, IAS 27 Separate Financial Statements or IAS 28 Investments in Associates and Joint
Ventures
 Obligations under employee benefit plans, to which IAS 19 Employee Benefits applies. OFFSETTING
 contracts within the scope of IFRS 17 Insurance Contracts except derivatives that are embedded in contracts within the A financial asset and a financial liability are offset only when there is a legally enforceable right to offset
scope of IFRS 17, if IFRS 9 requires the entity to account for them separately; and investment components that are and an intention to settle net or to settle both amounts simultaneously. The right of set-off:
separated from contracts within the scope of IFRS 17, if IFRS 17 requires such separation
(a) Must not be contingent on a future event
 financial instruments, contracts and obligations under share-based payment transactions to which IFRS 2 Share-based
Payment applies, except for contracts within the scope of IAS 32.8-10 (b) Must be legally enforceable in all of the following circumstances:
 The normal course of business
 The event of default
FAIR VALUE  The event of insolvency or bankruptcy of the entity and all of the counterparties.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.

TREASURY SHARES

The cost of an entity's own equity instruments that it has reacquired (treasury shares) is deducted from equity:
 Gain or loss is not recognised on the purchase, sale, issue, or cancellation of treasury shares
 Treasury shares may be acquired and held by the entity or by other members of the consolidated group
(i.e. an entity and its subsidiaries)
 Consideration paid or received is recognised directly in equity.

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Effective Date
Page 2 of 2 IFRIC 2 -Operative Entities and Similar Instruments, IFRIC 17 Distributions of Non-Cash Assets to Owner,
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments Periods beginning on or after 1 January 2005

IAS 32 Financial Instruments: Presentation

WHAT TYPE OF INSTRUMENT IS IT?

FINANCIAL INSTRUMENT EQUITY INSTRUMENT

A contract that gives rise to a financial asset of one entity and a financial liability or equity instrument  Any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities
of another entity.
 Some instruments that meet the definition of a liability, but represent the residual interest in the net assets of the entity
may be classified as equity, in certain circumstances, such as puttable instruments that give the holder the right to put the
instrument back to the issuer for cash or another financial asset, automatically on the occurrence of either (i) an uncertain
future event (ii) death of the instrument holder (common in co-operative structures)
FINANCIAL ASSET
 Equity instruments issued to acquire a fixed number of the entities own non-derivative equity instruments (in any
A financial asset is: currency) are classified as equity instruments, provided they are issued pro-rata to all existing shareholders of the same
class of the entities own non-derivative equity.
 Cash
 An equity instrument of another entity
 A contractual right to receive cash or another financial asset from another entity; or to exchange financial assets or FINANCIAL LIABILITY
financial liabilities with another entity under conditions that are potentially favourable to the entity
A financial liability is:
 A contract that will or may be settled in the entity's own equity instruments and is: a non-derivative for
which the entity is or may be obliged to receive a variable number of the entity's own equity instruments;  A contractual obligation to deliver cash or another financial asset to another entity; or to exchange financial assets or
financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or
or a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial
asset for a fixed number of the entity's own equity instruments. For this purpose the entity's own equity instruments  A contract that will or may be settled in the entity's own equity instruments and is a non-derivative for which the entity is
do not include instruments that are themselves contracts for the future receipt or delivery of the entity's own equity
instruments.
own equity instruments.

COMPOUND FINANCIAL INSTRUMENTS

Compound instruments that have both liability and equity characteristics are split into these components.
The split is made on initial recognition of the instruments and is not subsequently revised. CLASSIFICATION AS LIABILITY OR EQUITY
The equity component of the compound instrument is the residual amount after deducting the fair value of the liability
component from the fair value of the instrument as a whole. No gain/loss arises from initial recognition.  The entity must on initial recognition of an instrument classify it as a financial liability or equity. The classification may not
subsequently be changed
 An instrument is a liability if the issuer could be obliged to settle in cash or another financial instrument
 An instrument is a liability if it will or may be settled in a variable number of an entities own equity instruments.
Some instruments may have to be classified as liabilities even if they are issued in the form of shares.

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IAS 33 Earnings per Share

APPLICABLE TO

 Entities whose ordinary shares or potential ordinary shares are publicly traded
 Entities in the process of listing ordinary shares or potential ordinary shares in public markets.

TYPES OF EARNINGS PER SHARE (EPS)

BASIC EPS DILUTED EPS (DEPS) OTHER

(To be disclosed on face of statement of comprehensive income) (To be disclosed on face of statement of comprehensive income) (To be disclosed in notes to the financial statements)

 Same number of shares, different numerator (earnings number)

EARNINGS / WEIGHTED AVERAGE NUMBER OF SHARES  Disclose in notes to annual financial statements not on face of statement of
comprehensive Income
 Examples:
− Headline earnings per share
Basic earnings Diluted earnings
− Net assets value per share
Profit or loss from continuing operations adjusted for: Basic earnings adjusted for after-tax effect of:
− Core earnings per share.
 Non-  Changes in Statement of Comprehensive Income that will result from
 Dividends on preference shares (after tax), differences arising in settlement of conversion of all dilutive potential ordinary shares (e.g. interest on loan
preference shares, and other similar effects where preference shares are no longer charged once converted to equity).
classified as equity. CONSIDERATIONS TO NOTE

 Where an entity presents discontinued operations, Basic EPS and diluted EPS
are required to be presented for continuing and discontinuing operations.
Basic - Weighted average number of shares Diluted Weighted average number of shares
Continuing operations amount is presented on face of statement of
 Time weighted average number of shares issued from date consideration  Starting point is the weighted average number of shares in Basic EPS
comprehensive income
receivable  If any consideration will be received on conversion the dilutive impact
 Complex areas:
 For additional shares where no consideration received time weighted is based only on the number of shares issued for no consideration
− Contingently issuable shares
average number of shares from beginning of year / date of issue of shares  Adjust for number of shares that would be issued on conversion
− Share-based payment transactions
with consideration (e.g. bonus issue) restate comparatives.  Adjust presuming conversion at beginning of year / date of issue
− Contracts settled in shares / in cash
of potential ordinary shares
− Written put options
 Diluted EPS presented for only those instruments which result in
− Options, warrants and their equivalents
a reduction of EPS i.e. instruments which prove to be anti-dilutive
− Potential ordinary shares of subsidiaries.
are excluded.

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IFRIC 10 Interim Financial Reporting and Impairment Periods beginning on or after 1 January 1999

IAS 34 Interim Financial Reporting

 Applies to entities required by legislation or other pronouncements  If complete set is published in the interim report, full compliance with IFRS Accounting Standards is required
or that elect to publish interim financial reports  If condensed set is published the interim report is required to include at a minimum:
 Standard does not mandate which entities should produce interim − A condensed statement of financial position
financial reports.
− A condensed statement of comprehensive income (using either the one or two statement approach see IAS 1)
− A condensed statement of changes in equity
OTHER
− A condensed statement of cash flows
 Interim period financial period shorter than full year − Selected explanatory notes (guidance is given in IAS 34.15 16A).
 Interim financial report either a complete (as described in IAS 1)  The condensed statements are required to include at least:
or condensed set of financial statements.
− Headings and subtotals included in most recent annual financial statements
− Selected minimum explanatory notes - explaining events and transactions significant to an understanding of the changes in financial position/performance since
last annual reporting date
− Selected line items or notes if their omission would make the condensed financial statements misleading
− Basic and diluted earnings per share (if applicable) on the face of statement of comprehensive income.

RECOGNITION AND MEASUREMENT

ACCOUNTING POLICIES USE OF ESTIMATES COSTS INCURRED SEASONAL, CYCLICAL OR OCCASIONAL REVENUE
UNEVENLY
 Principles for recognising assets, liabilities, income and expenses are same as Interim reports require a greater use Revenue received during the year should not be anticipated or deferred where
in the most recent annual financial statements, unless: of estimates than annual reports. Anticipated or deferred only if anticipation would not be appropriate at year end Recognised as
it would be possible to defer or it occurs.
− There is a change in an accounting policy that is to be reflected
anticipate at year end.
in the next annual financial statements.
 Tax recognised based on weighted average annual income tax rate expected COMPLIANCE WITH IAS 34 OTHER
for the full year
 Tax rate changes during the year are adjusted in the subsequent interim  Disclose the fact that the interim financial statements  For highly seasonal entities, consider reporting additional information for 12 months
period during the year. comply with IAS 34.  Changes in accounting policies accounted as normal in terms of IAS 8 Accounting Policies, Changes
in Accounting Estimates and Errors
 See appendix B for examples.

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IFRIC 10 Interim Financial Reporting and Impairment Periods beginning on or after 1 January 1999

IAS 34 Interim Financial Reporting

RECOGNITION AND MEASUREMENT

IMPAIRMENT PERIODS TO BE PRESENTED FOR AN ENTITY WHICH PUBLISHED INTERIM FINANCIAL STATEMENTS QUARTERLY

Guidance on impairment is given in IFRIC 10 Interim Financial Reporting  Statement of financial position as at the end of the current interim period (e.g. 30 Sept. 20X2) and as of the end of the immediate preceding financial year (e.g. 31
and Impairment. December 20X1)
 Statements of comprehensive income for the current interim period (e.g. July Sept. 20X2) and cumulatively for the current financial year (Jan. Sept. 20X2) (which
will be the same for half year ends), with comparatives for the interim period of the preceding financial year (Jan. Sept. 20X1)
 Statements of changes in equity for the current financial year to date, with comparatives for the year to date of the immediately preceding financial year
 Statements of cash flows for the current financial year to date, with comparatives for the year to date of the immediately preceding financial year.

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IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities, IFRIC 10 Interim Financial Reporting and Impairment Periods beginning on or after 31 March 2004

IAS 36 Impairment of Assets

SCOPE

All assets, except: inventories, contract assets and assets arising from costs to obtain or fulfill a contract, deferred tax assets, employee benefits, financial assets, investment property measured at fair value, biological assets, insurance contract assets, and
non-current assets held for sale.

INDIVIDUAL ASSETS
ASSETS TO BE
REVIEWED The smallest identifiable group of assets that generates cash inflows that are independent of the cash inflows from other
CASH-GENERATING UNITS (CGUs) assets or group of assets.

IMPAIRMENT = Carrying Amount > Recoverable Amount

RECOVERABLE AMOUNT = Higher of fair value less costs of disposal and value in use

Fair value less cost of disposal Value-in-use

Represents the discounted future net pre-tax cash flows from the continuing use and ultimate disposal of the asset.

Fair value Costs of disposal Cash flows Discount rate

The price that would be received to sell an asset or paid to Incremental costs attributable to the disposal of an asset  From continuing use and disposal  Pre-tax
transfer a liability in an orderly transaction between market excluding finance costs and income tax expenses. Risks relating to value in use are reflected either in
 Based on asset in its current form 
participants at the measurement date. future cash flows or in the discount rate. The
 Exclude financing activities assumptions are otherwise double-counted.
 Pre-tax.

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IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities, IFRIC 10 Interim Financial Reporting and Impairment Periods beginning on or after 31 March 2004

IAS 36 Impairment of Assets

SCOPE

All assets, except: inventories, contract assets and assets arising from costs to obtain or fulfill a contract, deferred tax assets, employee benefits, financial assets, investment property measured at fair value, biological assets, insurance contract assets, and
non-current assets held for sale.

 Evidence of obsolescence or physical damage

WHEN TO TEST FOR IMPAIRMENT? INTERNAL INDICATORS  Discontinuance, disposal or restructuring plans
 Declining asset performance.

When there is an indicator of impairment.

Indicators are assessed at each reporting date.  Significant decline in market value
EXTERNAL  Changes in technological, market, economic or legal environment
INDICATORS  Changes in interest rates
 Carrying amount of the net assets of the entity is more than its market capitalisation.

Compulsory for:
ANNUAL IMPAIRMENT TESTS
 Intangible assets with an indefinite useful life
 Intangible assets not yet available for use
 CGUs to which goodwill has been allocated.

WHEN TO REVERSE IMPAIRMENT?

 Changes in way asset is used or expected to be used
INTERNAL INDICATORS
 Evidence from internal reporting indicates that economic performance of the asset will be better than expected.
Individual asset recognise in profit and loss unless asset
carried at revalued amount.
CGUs allocated to assets of CGUs on a pro-rata basis.  Observable indications for significant increase in assets value
EXTERNAL
Goodwill Impairment of goodwill is never reversed.  Changes in technological, market, economic or legal environment
INDICATORS
 Market interest rates have decreased.

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and Environmental Rehabilitation Funds, IFRIC 21 Levies

IAS 37 Provisions, Contingent Liabilities and Contingent Assets

SCOPE DEFINITIONS

Excludes provisions, contingent liabilities and contingent assets arising from:  Provision a liability of uncertain timing or amount.
 Non-onerous executory contracts  Contingent liability
 Those covered by other IFRS Accounting Standards: − A possible obligation that arises from past events, whose existence will be confirmed only by the occurrence
− IAS 12 Income Taxes or non-occurrence of one or more uncertain future events not wholly in the control of the entity; or
− IFRS 16 Leases, except for a lease that becomes onerous before the lease commencement date − A present obligation that arises from past events that is not recognised because:
− IAS 19 Employee Benefits − it is not probable that an outflow of resources embodying economic benefits will be required to settle
− IFRS 17 Insurance Contracts the obligation; or
− Contingent consideration of an acquirer in a business combination IFRS 3 Business Combinations − the amount of the obligation cannot be measured with sufficient reliability.
− IFRS 15 Revenue from Contracts with Customers, unless contract becomes onerous.  Contingent asset possible asset that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

RECOGNITION

PROVISIONS CONTINGENT LIABILITIES CONTINGENT ASSETS

Provisions are recognised when all of the following conditions are met: Contingent liabilities are not recognised. Contingent assets are not recognised.
 The entity has a present legal or constructive obligation as a result of a past event
 It is probable that an outflow or economic benefits will be required to settle the obligation; and
 A reliable estimate can be made of the amount of the obligation.

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and Environmental Rehabilitation Funds, IFRIC 21 Levies

IAS 37 Provisions, Contingent Liabilities and Contingent Assets

RECOGNITION (continued)

MEASUREMENT ONEROUS CONTRACTS

 Provisions are measured at the best estimate of the expenditure required to settle the present obligation  Onerous contract one where the unavoidable costs of meeting the obligations under the contract exceed
at reporting date. the economic benefits expected to be received under it
  For onerous contract, the provision is recognised and measured at the lower of:
is estimated by weighting all possible outcomes by their associated probabilities. − The cost of fulfilling the contract
 In determining the best estimate, the related risks and uncertainties are taken into account − The costs/penalties incurred in cancelling the contract.
 Where the effect of the time value of money is material, the amount of the provision is the present value of the  Before a separate provision for an onerous contract is recognised, an entity recognises any impairment loss
expenditures expected to be required to settle the obligation. The discount rate used is a pre-tax discount rate that (IAS 36 Impairment of Assets) that has occurred on assets used in fulfilling the contract .
reflects current market assessments of the time value of money and the risks specific to the liability  The cost of fulfilling a contract comprises the costs that relate directly to the contract. Costs that relate
− The discount rate does not reflect risks for which future cash flow estimates have been adjusted. directly to a contract consist of both: (a) the incremental costs of fulfilling that contract for example, direct
 Future events that may affect the amount required to settle the obligation are reflected in the amount labour and materials; and (b) an allocation of other costs that relate directly to fulfilling contracts for example,
of the provision where there is sufficient objective evidence that they will occur an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling that contract among
 Gains from the expected disposal of assets are not taken into account in measuring the provision others
 Reimbursements from third parties for some or all expenditure required to settle a provision are recognised only when it
is virtually certain that the reimbursement will be received. The reimbursement is treated as a separate asset, which
cannot exceed the amount of the provision
RESTRUCTURING
 Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate
 If it is no longer probable that an outflow of economic benefits will be required to settle the obligation, the provision is
Restructuring provisions are only permitted to be recognised when an entity has:
released
 Provisions are not recognised for future operating losses.  A detailed formal plan for the restructuring identifying:
− The business or part of business concerned; principal locations affected; location, function, approximate number of
employees to be compensated for termination of their services; expenditures that will be undertaken and when the
plan will be implemented.
 Has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or
announcing (e.g. by a public announcement) its main features to those affected before the end of the reporting period
 Restructuring provisions only include the direct expenditures arising from the restructuring i.e. those that are both
-going activities.

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SIC-32 Intangible Assets Web Site Costs Periods beginning on or after 31 March 2004

IAS 38 Intangible Assets

SCOPE DEFINITIONS

Scope exclusions: intangible assets covered by other IFRS Accounting Intangible assets - identifiable, non-monetary assets, without physical substance.
Standards, financial assets as per IAS 32, recognition and measurement of
Assets - resources, controlled from past events and with future economic benefits expected.
exploration and evaluation assets and cost of development and extraction of
minerals, oil and natural gases. Identifiable if either:
 Capable of being separated and sold, licensed, transferred, exchanged or rented separately
 Arise from contractual or other legal rights.

RECOGNITION AND MEASUREMENT

SEPARATE ACQUISITION ACQUIRED IN BUSINESS INTERNALLY GENERATED EXCHANGE OF INTERNALLY GENERATED COSTS INCURRED
COMBINATION UNEVENLY
1. Probable expected future Research phase expense costs  Measure acquired asset at its Internally generated goodwill is never
economic benefits will flow 1. Probable always met if fair value as incurred. fair value recognised as it is not an identifiable Initially recognised at either:
to the entity; and (FV) can be determined; resource that can be measured
Development phase Capitalise  If not possible, at book value  Fair value
FV reflects expectation of future reliably.
2. Cost can be reliably measured. if all criteria are met: of asset given up. Nominal value plus direct
economic benefits. 
Examples include: expenses to prepare for use.
Recognition at cost. Technical feasibility of completion
2. Cost FV at acquisition date. 

of intangible asset  Internally generated brands Examples include:

 Acquirer recognises it separately
Intention to complete  Customer lists. License to operate national lottery
from goodwill  

 Irrespective of whether the  Ability to use or sell the intangible  Radio station.
acquiree had recognised it before asset
acquisition.  Adequate technical, financial
and other resources to complete
 Probable future economic benefits
 Expenditure measured reliably.

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SIC-32 Intangible Assets Web Site Costs Periods beginning on or after 31 March 2004

IAS 38 Intangible Assets

SUBSEQUENT ACCOUNTING

Finite useful life Choose either amortised cost or revaluation model: Indefinite useful lives
 No foreseeable limit to future expected economic benefits
Cost model Revaluation model  Not amortised
 Determine useful life  Fair value at revaluation date  Test for impairment annually or when an indication exists
 Residual value assumed zero  Fair value determined by referring to active market  Review annually if events and circumstances still support indefinite
unless active market exists or useful life
 If no active market, use cost model
a commitment by third party
Revaluation done regularly  If no longer indefinite change to finite useful life.
to purchase the intangible asset 

exists  The net carrying amount of the asset is adjusted to the revalued amount and
 Determine amortisation method − The gross carrying amount is adjusted in a manner that is consistent with the revaluation of the carrying amount of the
 Review above annually asset. For example, the gross carrying amount may be restated by reference to observable market data or it may be
restated proportionately to the change in the carrying amount. The accumulated amortisation at the date of the
 Rebuttable presumption that revaluation is adjusted to equal the difference between the gross carrying amount and the carrying amount of the
revenue based amortization asset after taking into account accumulated impairment losses
is inappropriate
− Accumulated amortisation is eliminated against the gross carrying amount.
 Amortisation method reflects the
pattern in which future economic  Credit to revaluation surplus net of Deferred Tax OTHER
benefits are expected to be  Transfer to retained earnings on realisation.
consumed. Past expenses cannot be capitalised in a later period.

 Amortisation begins when

available for use.

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IFRIC 16 Hedges of a Net Investment in a Foreign Operation Periods beginning on or after 1 January 2005

IAS 39 Financial Instruments: Recognition and Measurement

IAS 39 has been replaced by IFRS 9 Financial Instruments except for entities that continue to apply relevant hedge accounting guidance.

HEDGE ACCOUNTING

Hedge accounting may be applied if, and only if, all the following criteria are met:
 At nagement objective and strategy for undertaking the hedge
 The hedge is expected to be highly effective (80 125 % effective) in achieving offsetting changes in fair value or cash flows attributable to the hedged risk, consistently with the originally documented risk management strategy for that particular hedging
relationship
 For cash flow hedges, a forecast transaction that is the subject of the hedge must be highly probable and must present an exposure to variations in cash flows that could ultimately affect profit or loss
 The effectiveness of the hedge can be reliably measured, i.e., the fair value or cash flows of the hedged item that are attributable to the hedged risk and the fair value of the hedging instrument can be reliably measured
 The hedge is assessed on an ongoing basis and determined actually to have been highly effective throughout the financial reporting periods for which the hedge was designated.

CASH FLOW HEDGE FAIR VALUE HEDGE

 Definition - a hedge of the exposure to variability in cash flows that (i) is attributable to a particular risk associated with  Definition - a hedge of the exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment, or an
a recognised asset or liability (such as all or some future interest payments on variable rate debt) or a highly probable identified portion of such an asset, liability or firm commitment, that is attributable to a particular risk and could affect profit or loss
forecast transaction and (ii) could affect profit or loss  Gain/loss from remeasuring the hedging instrument at fair value or the foreign currency component of its carrying amount is recognised
 The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in in profit or loss
OCI; and the ineffective portion of the gain or loss on the hedging instrument is recognised in profit or loss  Gain/loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognised in profit
 If the hedge results in the recognition of a financial asset or a financial liability, the associated gains or losses that or loss
were recognised in OCI are reclassified from equity to profit or loss as a reclassification adjustment in the same  Fair value hedge accounting is discontinued prospectively if:
period(s) during which the asset acquired or liability assumed affects profit or loss − The hedging instrument expires or is sold, terminated or exercised
 If the hedge results in the recognition of a non-financial asset or a non-financial liability, then the entity has an − The hedge no longer meets the criteria set out above
accounting policy election of either: − The entity revokes the designation.
− Reclassifying the associated gains and losses that were recognised in OCI to profit or loss as a reclassification  Where hedge accounting is discontinued, adjustments to the carrying amount of a hedged financial asset for which the effective interest
adjustment in the same period or periods during which the asset acquired or liability assumed affects profit or rate is used are amortised to profit or loss. The adjustment is based on a recalculated effective interest rate at the date amortisation
loss (such as in the periods that depreciation expense or cost of sales is recognised begins.
− Removing the associated gains and losses that were recognised in OCI and including them in the initial cost or
other carrying amount of the asset or liability.
 Cash flow hedge accounting is discontinued prospectively if:
− The hedging instrument expires or is sold, terminated or exercised (net amount recognised in OCI remains in NOVATION OF DERIVATIVES
equity until forecast transaction occurs and is then treated as described above)
− The hedge no longer meets the criteria set out in the above block (net amount recognised in OCI remains in Hedge accounting continues for novated derivatives so long as:
 The novation is a consequence of laws or regulations (or the introduction of laws or regulations)
equity until forecast transaction occurs and is then treated as described above)
 The parties to the hedging instrument agree that one or more clearing counterparties replace their original counterparty to become the
− The forecast transaction is no longer expected to occur (net amount recognised in OCI is transferred
immediately to profit and loss as a reclassification adjustment) new counterparty of each party.
 Any changes to the hedging instrument are limited only to those that are necessary to effect such a replacement of the counterparty
− The entity revokes the designation (net amount recognised in OCI remains in equity until forecast transaction
occurs and is then treated as described above). (including changes in the collateral requirements, rights to offset receivable and payable balances, charges levied.)

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IFRIC 16 Hedges of a Net Investment in a Foreign Operation Periods beginning on or after 1 January 2005

IAS 39 Financial Instruments: Recognition and Measurement

HEDGE ACCOUNTING (continued)

Hedge accounting may be applied if, and only if, all the following criteria are met:
 At nagement objective and strategy for undertaking the hedge
 The hedge is expected to be highly effective (80 125 % effective) in achieving offsetting changes in fair value or cash flows attributable to the hedged risk, consistently with the originally documented risk management strategy for that particular hedging
relationship
 For cash flow hedges, a forecast transaction that is the subject of the hedge must be highly probable and must present an exposure to variations in cash flows that could ultimately affect profit or loss
 The effectiveness of the hedge can be reliably measured, i.e., the fair value or cash flows of the hedged item that are attributable to the hedged risk and the fair value of the hedging instrument can be reliably measured
 The hedge is assessed on an ongoing basis and determined actually to have been highly effective throughout the financial reporting periods for which the hedge was designated.

HEDGE OF A NET INVESTMENT IN A FOREIGN OPERATION

Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for as part of the net investment, are accounted for similarly to cash flow hedges:
 The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income; and
 The ineffective portion is recognised in profit or loss.
The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognised in OCI is reclassified from equity to profit or loss as a reclassification adjustment on the disposal of the foreign operation.

DESIGNATION OF NON-FINANCIAL ITEMS AS HEDGED ITEMS

If the hedged item is a non-financial asset or non-financial liability, it is designated as a hedged item, either:
 For foreign currency risks
 In its entirety for all risks, because of the difficulty of isolating and measuring the appropriate portion of the cash flows or fair value changes attributable to specific risks other than foreign currency risks.

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Periods beginning on or after 1 January 2005

IAS 40 Investment Property

CLASSIFICATION

Partial own use

 If the owner uses part of the property for its own use, and part to earn rentals or for capital appreciation, and the portions can be sold or leased out separately under a finance lease, they are accounted for
separately. The part that is rented out is investment property
 If the portions cannot be sold or leased out separately, the property is investment property only if the owner-occupied (property, plant and equipment) portion is insignificant.

Provision of ancillary services to occupants

If those services (e.g. security or maintenance services) are a relatively insignificant component of the arrangement as a whole, then the entity may treat the property as investment property.
Where the services provided are more significant (such as in the case of an owner-managed hotel), the property should be classified as owner-occupied property, plant and equipment.

Interrelationship between IFRS 3 and IAS 40

Judgement is required to determine whether the acquisition of investment property is the acquisition of an asset, a group of assets or a business combination in the scope of IFRS 3 Business Combinations.
The judgement of whether the acquisition of investment property is a business combination is based on the guidance in IFRS 3.

Inter-company rentals
Property rented to a parent, subsidiary, or fellow subsidiary is not investment property in consolidated financial statements that include both the lessor and the lessee, because the property is owner-occupied from the
perspective of the group.
Such property will be investment property in the separate financial statements of the lessor, if the definition of investment property is otherwise met.

Transfers
Only permits assets to be reclassified into or out of the investment property category when and only when there is a change in u
provide evidence of a change in use.

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IAS 40 Investment Property

SCOPE

This Standard shall be applied in the recognition, measurement and disclosure of investment property.
This Standard does not apply to: (a) biological assets related to agricultural activity (see IAS 41 Agriculture and IAS 16 Property, Plant and Equipment); and (b) mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative
resources.

DEFINITION
Property (land or a building or part of a building or both) held (by the owner or by the lessee as a right of use asset) to earn rentals or for capital appreciation or both.

INCLUDES EXCLUDES
 Land held for long-term capital appreciation  Property intended for sale in the ordinary course of business or in the process of construction or development for such
 Land held for indeterminate future use sale (IAS 2 Inventories applies)
 Building owned by the entity (or a right-of-use asset relating to a building held by the entity) and leased out under one or  Owner-occupied property (IAS 16 and IFRS 16 applies)
more operating leases.  Property leased to another entity under a finance lease (IFRS 16 applies).
 Vacant building held to be leased out under an operating lease
 Property being constructed/developed for future use as investment property.

RECOGNITION
 An owned investment property is recognised as an asset when it is probable that the future economic benefits that are associated with the property will flow to the enterprise, and the cost of the property can be reliably measured.
 An investment property held by a lessee as a right-of-use asset shall be recognised in accordance with IFRS 16.

MEASUREMENT
Initial measurement Subsequent measurement
 An owned Investment property is initially measured at cost, including transaction costs. An entity can choose between the fair value and the cost model. The accounting policy choice must be applied to all investment property.
Cost does not include start-up costs, abnormal waste, or initial operating losses incurred Fair value model
before the investment property achieves the planned level of occupancy.  Investment properties are measured at fair value, which is the price that would be received to sell the investment property in an orderly transaction
 An investment property held by a lessee as a right-of-use asset shall be measured initially at between market participants at the measurement date (see IFRS 13 Fair Value Measurement)
its cost in accordance with IFRS 16.  Gains or losses arising from changes in the fair value of investment property must be included in profit or loss for the period in which it arises
 In rare exceptional circumstances if fair value cannot be determined, the cost model in IAS 16 is used to measure the investment property.
 When a lessee uses the fair value model to measure an investment property that is held as a right-of-use asset, it shall measure the right-of-use asset, and
not the underlying property, at fair value.
Cost model
 Investment property is measured in accordance with requirements set out for that model in IAS 16.

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Periods beginning on or after 1 January 2003

IAS 41 Agriculture
DEFINITIONS SCOPE

Active market - Exists when; the items traded are Within scope: Excluded from scope:
homogenous, willing buyers and sellers can normally be  Biological assets  Land related to agricultural activity covered by IAS 16 Property, Plant and Equipment and IAS 40 Investment Property
found at any time and prices are available to the public.  Agricultural produce at the point of  Intangible assets related to agricultural activity covered by IAS 38 Intangible Assets.
Agricultural activity - The management of the harvest  Bearer plants related to agricultural activity
 Government grants related to biological  Government grants related to bearer plants.
transformation of a biological asset for sale into
agricultural produce or another biological asset. assets.  Right-of-use assets arising from a lease of land related to agricultural activity (IFRS 16 Leases).

Biological asset - A living animal or plant.

Agricultural produce - The harvested produce of the RECOGNITION MEASUREMENT

Biological transformation - The process of growth,  Biological assets or agricultural produce Biological asset Agricultural produce
degeneration, production, and procreation that cause an are recognised when:  Initially:  Produce harvested from biological assets is

increase in the value or quantity of the biological asset. − Entity controls the asset as a result of − At fair value less estimated point-of-sale costs (except where fair value cannot be measured at fair value less costs to sell at the
a past event estimated reliably) point of harvest
Harvest - The process of detaching produce from a
− Probable that future economic − If no reliable measurement of fair value, biological assets are stated at cost.  Such measurement is the cost at the date when
biological asset or cessation of its life.
benefit will flow to the entity; and  Subsequently: applying IAS 2 Inventory or another applicable
Bearer plant is a living plant that: − Fair value or cost of the asset can be − At fair value less estimated point-of-sale costs (except where fair value cannot be IFRS Accounting Standards.
 Is used in the production or supply of agricultural measurement reliably. estimated reliably)
produce − If no reliable measurement of fair value, biological assets are stated at cost less
 Is expected to bear produce for more than one period accumulated depreciation and accumulated impairment losses.
 Has a remote likelihood of being sold (except scrap
sales).
FAIR VALUE GAINS AND LOSSES

Biological asset Agricultural produce

GOVERNMENT GRANTS  The gain or loss on initial recognition is included in profit or loss in the period in which it  The gain or loss on initial recognition is included
arises in included in profit or loss in the period in which
 An unconditional government grant related to a  Subsequent change in fair value is included in profit or loss in the period it arises. it arises.
biological asset measured at fair value less estimated
point-of-sale costs is recognised as income when, and
only when, the government grant becomes available INABILITY TO MEASURE FAIR VALUE
 A conditional government grant, including where a
government grant requires an entity not to engage in  Once the fair value of the biological asset becomes reliably measurable, the fair value
specified agricultural activity, is recognised as income must be used to measure the biological asset
when and only when, the conditions of the grant are  Once a non-current biological asset meets the criteria to be defined as held for sale (or
met. as part of a disposal group classified as held for sale) then it is presumed fair value can
be measured reliably.

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Periods beginning on or after 1 January 2005

IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities

DEFINITIONS

Many entities have obligations to dismantle, remove and restore items of property, plant and equipment and in this Interpretatio IAS 16 Property, Plant and
Equipment, the cost of an item of property, plant and equipment includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located (a similar guidance is included for the measurement of a right of use
asset in IFRS 16 Leases), the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. IAS 37 Provisions,
Contingent Liabilities and Contingent Assets contains requirements on how to measure decommissioning, restoration and similar liabilities. This Interpretation provides guidance on how to account for the effect of subsequent changes in the measurement
of existing decommissioning, restoration and similar liabilities.

SCOPE

IFRIC 1 applies to changes in the measurement of any existing decommissioning, restoration or similar liability that is both:
Recognised as part of the cost of an item of property, plant and equipment in accordance with IAS 16 or as part of the cost of a right of use asset in accordance with IFRS 16
Recognised as a liability in accordance with IAS 37.
For example, a decommissioning, restoration or similar liability may exist for decommissioning a plant or rehabilitating environmental damage, in extractive industries, or the removal of equipment.

CONSENSUS

Changes in the measurement of an existing decommissioning, restoration and similar liability that result from changes in the estimated timing or amount of the outflow of resources embodying economic benefits required to settle the obligation, or a
change in the discount rate, are accounted for as detailed below.

ASSETS MEASURED USING COST MODEL RELATED ASSET MEASURED USING REVALUATION MODEL

 Changes in the liability are added to, or deducted from, the cost of the related asset in Changes in the liability alter the revaluation surplus or deficit previously recognised on that asset, so that:
the current period  A decrease in the liability is recognised in other comprehensive income and increases the revaluation surplus within equity, except that it is recognised in
profit or loss to the extent that it reverses a revaluation deficit on the asset that was previously recognised in profit or loss
 The amount deducted from the cost of the asset cannot exceed its carrying amount. If a
decrease in the liability exceeds the carrying amount of the asset, the excess is  An increase in the liability is recognised in profit or loss, except that it is recognised in other comprehensive income and reduces the revaluation surplus
recognised immediately in profit or loss within equity to the extent of any credit balance existing in the revaluation surplus in respect of that asset
 If the adjustment results in an addition to the cost of an asset, the entity considers  In the event that a decrease in the liability exceeds the carrying amount that would have been recognised had the asset been carried under the cost model,
whether this is an indication that the new carrying amount of the asset may not be fully the excess is recognised immediately in profit or loss
recoverable. If there is such an indication, the entity tests the asset for impairment by  A change in the liability is an indication that the asset may have to be revalued in order to ensure that the carrying amount does not differ materially from that
estimating its recoverable amount, and accounts for any impairment loss, in accordance which would be determined using fair value at the end of the reporting period
with IAS 36 Impairment of Assets.
 The change in the revaluation surplus arising from a change in the liability is separately identified and disclosed as such.
DISCOUNT
DEPRECIATION
 The periodic unwinding of discount is recognised in profit or loss as a finance cost as it
occurs The adjusted depreciable amount of the asset is depreciated over its useful life. Therefore, once the related asset has reached the end of its useful life, all
 Capitalisation under IAS 23 Borrowing Costs is not permitted. subsequent changes in the liability are recognised in profit or loss as they occur. This applies under both the cost model and the revaluation model.

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Periods beginning on or after 1 January 2005

IFRIC 2 -operative Entities and Similar Instruments

BACKGROUND AND ISSUE

Co-operatives and other similar entities are formed by groups of persons to meet common economic or social needs. Members' interests in a co-operative are often characterised as members' shares or units or the like. IAS 32 Financial Instruments:
Presentation establishes principles for the classification of financial instruments as financial liabilities or equity.

Many financial instruments, including members' shares, have characteristics of equity, including voting rights and rights to participate in dividend distributions. Some financial instruments give the holder the right to request redemption for cash or another
financial asset, but may include or be subject to limits on whether the financial instruments will be redeemed. Questions arise in respect of how those redemption terms should be evaluated in determining whether the financial instruments should be
classified as liabilities or equity.

SCOPE

 IFRIC 2 applies to financial instruments within the scope of IAS 32, including financial instruments issued to members of co-ope


CONSENSUS

-operative entities) to request redemption does not, in itself, require that financial instrument to be classified as a financial liability. Rather, the entity must consider
all of the terms and conditions of the financial instrument in determining its classification as a financial liability or equity.

MEMBERS SHARES AS EQUITY EXAMPLES OF APPLICATION

Examples of different scenarios of the application of IFRIC 2 are given in the Appendix, which is an integral part of IFRIC 2.
either of the conditions described below are present:

If redemption is unconditionally prohibited by local law, regulation or a governing charter, shares are equity.

DISCLOSURE MEASUREMENT

When a change in the redemption prohibition leads to a transfer between financial liabilities and equity, the entity discloses  An entity measures its financial liability for redemption at fair value
separately the amount, timing and reason for the transfer. 
redemption at no less than the maximum amount payable under the redemption provisions of its governing charter or
applicable law discounted from the first date that the amount could be required to be paid.

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Periods beginning on or after 1 January 2005

IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental

Rehabilitation Funds
BACKGROUND AND ISSUE

The purpose of decommissioning funds is to segregate assets to fund some or all of the costs of decommissioning plant (such as a nuclear plant) or certain equipment (such as cars), or in undertaking environmental rehabilitation (such as rectifying pollution
of water or restoring mined land), together referred to as 'decommissioning'. Contributions to these funds, by multiple contributions, may be voluntary or required by regulation or law.
Decommissioning funds generally have the following features:
 Fund is separately administered by independent trustees

 Entity contributions to the fund are invested in a range of assets that are available to help pay contributors decommissioning costs
 Contributors retain the obligation to pay decommissioning costs
 Contributors may have restricted access or no access to any surplus assets of the fund.

SCOPE

IFRIC 5 applies to accounting in the financial statements of a contributor for interests arising from decommissioning, restorati
 The assets are administered separately (either by being held in a separate legal entity or as segregated assets within another entity)

Residual interests in funds that extend beyond a right of reimbursement may be an equity instrument within the scope of IFRS 9 Financial Instruments, and is scoped out of IFRIC 5.

CONSENSUS

INTEREST IN A FUND OBLIGATIONS TO MAKE ADDITIONAL DISCLOSURE

CONTRIBUTIONS
 The contributor recognises its obligation to pay decommissioning costs as a liability and recognises its interest in the  A contributor discloses the nature of its interest in a
fund separately unless the contributor is not liable to pay decommissioning costs even if the fund fails to pay When a contributor has an obligation to make potential additional fund and any restrictions on access to the assets in
contributions, e.g., in the event of the bankruptcy of another the fund
 The contributor determines whether it has control, joint control or significant influence over the fund by reference to IFRS
contributor or if the value of the investment assets held by the fund
10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IAS 28 Investments in Associates and Joint  When a contributor has an obligation to make
Ventures. If it does, the contributor accounts for its interest in the fund in accordance with those Standards potential additional contributions that is not
reimbursement obligations, this obligation is a contingent liability
recognised as a liability, it makes the disclosures
 If a contributor does not have control, joint control or significant influence over the fund, the contributor recognises the that is within the scope of IAS 37.
required by IAS 37
right to receive reimbursement from the fund as a reimbursement right in accordance with IAS 37 Provisions, Contingent
The contributor recognises a liability only if it is probable that
Liabilities and Contingent Assets. This reimbursement is measured at the lower of:  When a contributor accounts for its interest in the
additional contributions will be made.
‒ The amount of the decommissioning obligation recognised fund in accordance with paragraph 9 of IFRIC 5, it
‒ makes disclosures as required by IAS 37.
 Changes in the carrying value of the right to receive reimbursement other than contributions to and payments from the
fund are recognised in profit or loss in the period in which these changes occur.

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Periods beginning on or after 1 December 2005

IFRIC 6 Liabilities arising from Participating in a Specific Market: Waste Electrical and
Electronic Equipment
BACKGROUND AND ISSUE

IAS 37 Provisions, Contingent Liabilities and Contingent assets specifies that an obligating event is a past event that leads to a present obligation that an entity has no realistic alternati

The European Union's Directive on Waste Electrical and Electronic Equipment (WE&EE), which regulates the collection, treatment, recovery and environmentally sound disposal of waste equipment, has given rise to questions over when the liability for the
decommissioning of WE&EE should be recognised. The Directive states that the cost of waste management for historical household equipment should be borne by producers of that type of equipment that are in the market during a period to be specified
in the applicable legislation of each Member State (the Measurement Period). The Directive states that each Member State is required to establish a mechanism to have producers contribute to costs proportionately 'e.g. in proportion to their respective
share of the market by type of equipment.' Member states within the EU will have their own interpretation of the WE&EE directive and therefore the detailed requirements are likely to vary from state to state.
The interpretation does not deal with new waste (being waste relating to products sold on or after 13 August 2005) or historical waste from sources other than private households. The IFRIC considers that the liability for such waste management is dealt
with by IAS 37.
IFRIC 6 seeks to determine in the context of decommissioning of WE&EE which of the following constitute an obligating event in accordance with IAS 37 for the reconciliation of a provision for waste management costs:
The manufacture or sale of the historical household equipment
Participation in the market during the measurement period
The incurrence of costs in the performance of waste management activities.

SCOPE

 IFRIC 6 provides guidance on the recognition, in the financial statements of producers, of liabilities for waste management under the European Union (EU) Directive on Waste Electrical and Electronic Equipment (WE&EE) in respect of sales of historical
household equipment
 IFRIC 6 does not address new waste or historical waste from sources other than private households. The liability for such waste management is adequately covered in IAS 37. However, if, in national legislation, new waste from private households is
treated in a similar manner to historical waste from private households, the principles of the Interpretation apply by reference to the hierarchy in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

CONSENSUS

 Participation in the market during the measurement period is the obligating event in accordance with IAS 37. As such, a liability for waste management costs for historical household equipment does not arise as the products are manufactured or sold
 As the obligation for historical household equipment is linked to participation in the market during the measurement period, rather than to production or sale of the items to be disposed of, there is no obligation unless and until a market share exists
during the measurement period
 The timing of the obligating event may also be independent of the particular period in which the activities to perform the waste management are undertaken and the related costs incurred.

EXAMPLE

An entity selling electrical equipment in 20X4 has a market share of 4 per cent for that calendar year. It subsequently discontinues operations and is thus no longer in the market when the waste management costs for its products are allocated to those
entities with market share in 20X7. With a market share of 0 per cent in 20X7, the entity's obligation is zero. However, if another entity enters the market for electronic products in 20X7 and achieves a market share of 3 per cent in that period, then that
entity's obligation for the costs of waste management from earlier periods will be 3 per cent of the total costs of waste management allocated to 20X7, even though the entity was not in the market in those earlier periods and has not produced any of the
products for which waste management costs are allocated to 20X7.

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Periods beginning on or after 1 March 2006

IFRIC 7 Applying the Restatement Approach under

IAS 29 Financial Reporting in Hyperinflationary Economies
BACKGROUND AND ISSUE

IFRIC 7 provides guidance on how to apply the requirements of IAS 29 Reporting in Hyperinflationary Economies in a reporting period in which an entity identifies the existence of hyperinflation in the economy of its
functional currency, when that economy was not hyperinflationary in the prior period, and the entity therefore restates its financial statements in accordance with IAS 29.
The questions addressed in IFRIC 7 are:
 How should the requirement stated in terms of the measuring unit current at the end of the reporting period in paragraph 8 of IAS 29 be interpreted when an entity applies IAS 29?
 How should an entity account for opening deferred tax items in its restated financial statements?

CONSENSUS

 In the reporting period in which an entity identifies the existence of hyperinflation in the economy of its functional currency, not having been hyperinflationary in the prior period, the entity applies the requirements
of IAS 29 as if the economy had always been hyperinflationary
 For non- earliest period presented in the financial statements is restated to reflect the effect of
inflation from the date the assets were acquired and the liabilities were incurred or assumed until the end of the reporting period
 For non-monetary items carried in the opening statement of financial position at amounts current at dates other than those of acquisition or incurrence (e.g. revalued assets), that restatement reflects instead the
effect of inflation from the dates those carrying amounts were determined until the end of the reporting period
 At the end of the reporting period, deferred tax items are recognised and measured in accordance with IAS 12 Income Taxes. However, the deferred tax figures in the opening statement of financial position for the
reporting period are determined as follows:
‒ The entity remeasures the deferred tax items in accordance with IAS 12 after it has restated the nominal carrying amounts of its non-monetary items at the date of the opening statement of financial position of the
reporting period by applying the measuring unit at that date
‒ The deferred tax items remeasured are restated for the change in the measuring unit from the date of the opening statement of financial position of the reporting period to the end of that reporting period.
 The entity applies the approach above in restating the deferred tax items in the opening statement of financial position of any comparative periods presented in the restated financial statements for the reporting
period in which the entity applies IAS 29
 After an entity has restated its financial statements, all corresponding figures in the financial statements for a subsequent reporting period, including deferred tax items, are restated by applying the change in the
measuring unit for that subsequent reporting period only to the restated financial statements for the previous reporting period.

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 Effective Date
Periods beginning on or after 1 November 2006

IFRIC 10 Interim Financial Reporting and Impairment

ISSUE

IFRIC 10 addresses the following issue:

Should an entity reverse impairment losses recognised in an interim period on goodwill if a loss would not have been recognised, or a smaller loss would have been recognised, had an impairment assessment been
made only at the end of a subsequent reporting period?

SCOPE

IFRIC 10 addresses the interaction between the requirements of IAS 34 Interim Financial Reporting and the recognition of impairment losses on goodwill in IAS 36 Impairment of Assets and and the effect of that
interaction on subsequent interim and annual financial statements.

CONSENSUS

 An entity shall not reverse an impairment loss recognised in a previous interim period in respect of goodwill.
 An entity shall not extend this consensus by analogy to other areas of potential conflict between IAS 34 and other IFRS Accounting Standards.

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SIC-29 Service Concession Arrangements: Disclosure Periods beginning on or after 1 January 2008

IFRIC 12 Service Concession Arrangements

BACKGROUND AND ISSUE SCOPE

IFRIC 12 sets out general principles on recognising and measuring the obligations and related rights in service  IFRIC 12 gives guidance on the accounting by operators for public-to-private service concession arrangements
concession arrangements. Requirements for disclosing information about service concession arrangements are in SIC-29  IFRIC 12 applies to public-to-private service concession arrangements if both:
Disclosure Service Concession Arrangements. The issues addressed in IFRIC 12 are: ‒ The grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must provide
 them, and at what price
 Recognition and measurement of arrangement consideration ‒ The grantor controls (through ownership, beneficial entitlement or otherwise) any significant residual interest in the
 Construction or upgrade services infrastructure at the end of the term of the arrangement.
 Operation services  IFRIC 12 applies to both:
 Borrowing costs ‒ Infrastructure that the operator constructs or acquires from a third party for the purpose of the service arrangement
 Subsequent accounting treatment of a financial asset and an intangible asset ‒ Existing infrastructure to which the grantor gives the operator access for the purpose of the service arrangement.
 Items provided to the operator by the grantor.  IFRIC 12 does not specify the accounting for infrastructure recognised as PPE by the operator before it entered the
service concession agreement

CONSENSUS
Financial asset
Infrastructure within the scope of IFRIC 12 is not recognised as property, plant and equipment of the operator because the The amount due from or at the direction of the grantor is accounted for in accordance with IFRS 9 Financial Instruments and
contractual service arrangement does not convey the right to control the use of the public service infrastructure to the measured at:
operator. The operator has access to operate the infrastructure to provide the public service on behalf of the grantor in  Amortised cost; or
accordance with the terms specified in the contract.  Fair value through OCI; or
Recognition and measurement of arrangement consideration  Fair value through profit or loss.
Under the terms of contractual arrangements within the scope of IFRIC 12, the operator acts as a service provider. The Operation services
operator recognises and measures revenue in accordance with IFRS 15 Revenue From Contracts With Customers for the The operator accounts for operation services in accordance with IFRS 15.
services it performs.
Borrowing costs incurred by the operator
Construction or upgrade services
In accordance with IAS 23 Borrowing Costs, borrowing costs attributable to the arrangement are recognised as an expense in
The operator accounts for construction or upgrade services in accordance with IFRS 15. If the operator provides construction the period in which they are incurred unless the operator has a contractual right to receive an intangible asset. In this case
or upgrade services the consideration received or receivable by the operator is recognised at its fair value. The borrowing costs attributable to the arrangement are capitalised during the construction phase of the arrangement in
consideration may be rights to: accordance with IAS 23.
 A financial asset (as described below) if it has an unconditional right to receive cash or another financial asset. This when Intangible asset
the grantor contractually guarantees to pay the operator a specified amounts or the shortfall between amounts received
from users and a specified amount IAS 38 Intangible Assets applies to any intangible assets recognised.
 An intangible asset (IAS 38.45-47 provide guidance) if it receives a right (a licence) to charge user for a public service. Items provided to the operator by the grantor
Infrastructure items to which the operator is given access by the grantor for the purposes of the service arrangement are not
recognised as property, plant and equipment of the operator.

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Periods beginning on or after 1 January 2008

IFRIC 14 IAS 19: The Limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction
ISSUES SCOPE

The issues addressed in IFRIC 14 are: IFRIC 14 applies to all post-employment defined benefits
and other long-term employee defined benefits.
 When refunds or reductions in future contributions should be regarded as available in accordance with paragraph 64 of IAS 19 Employee Benefits (asset ceiling)
 How a minimum funding requirement might affect the availability of reductions in future contributions
 When a minimum funding requirement might give rise to a liability.

CONSENSUS

Availability of a refund or reduction in future contributions The effect of a minimum funding requirement on the economic benefit When a minimum funding requirement may give rise
 An entity determines the availability of a refund or a reduction in future contributions in to a liability
available as a reduction in future contributions
accordance with the terms and conditions of the plan and any statutory requirements in  An entity analyses any minimum funding requirement at a given date into contributions that  If an entity has an obligation under a minimum

the jurisdiction of the plan are required to cover any existing shortfall for past service on the minimum funding basis funding requirement to pay contributions to cover an
 An economic benefit, in the form of a refund or a reduction in future contributions, is existing shortfall on the minimum funding basis in
and future service
available if the entity can realise it at some point during the life of the plan or when the  Contributions to cover any existing shortfall on the minimum funding basis in respect of respect of services already received, the entity
plan liabilities are settled. services already received do not affect future contributions for future service determines whether the contributions payable will be
 If there is a minimum funding requirement for contributions relating to future service, the available as a refund or reduction in future
The economic benefit available as a refund The right to a refund economic benefit available as a reduction in future contributions is the sum of: contributions after they are paid into the plan
 A refund is available to an entity only if the entity has an unconditional right to a refund,  To the extent that the contributions payable will not
− Any amount that reduces future minimum funding requirement contributions for future
either: service because the entity made a prepayment (i.e. paid the amount before being be available after they are paid into the plan, the
During the life of the plan, without assuming that the plan liabilities must be settled in order required to do so) entity recognises a liability when the obligation arises
to obtain the refund − The estimated future service cost in each period, less the estimated minimum funding
Assuming the gradual settlement of the plan liabilities over time until all members have left requirement contributions that would be required for future service in those periods if
the plan there were no prepayment as described above.
Assuming the full settlement of the plan liabilities in a single event (i.e. as a plan wind-up).  An entity estimates the future minimum funding requirement contributions for service taking
 An unconditional right to a refund can exist whatever the funding level of a plan at the
into account the effect of any existing surplus determined using the minimum funding basis
reporting date. but excluding the prepayment described in paragraph 20(a). An entity uses assumptions
consistent with the minimum funding basis and, for any factors not specified by that basis,
The economic benefit available as a contribution reduction assumptions consistent with those used to determine the defined benefit obligation and with
 If there is no minimum funding requirement for contributions relating to future service, the
the situation that exists at the reporting date as determined by IAS 19
economic benefit available as a reduction in future contributions is the future service cost  If the future minimum funding requirement contributions for future service exceeds the
to the entity for each period over the shorter of the expected life of the plan and the future IAS 19 service cost in any given period that excess reduces the amount of the
expected life of the entity. The future service cost to the entity excludes amounts that will economic benefit available as a reduction in future contributions. However, the amount
be borne by employees. described per paragraph 20(b) can never be less than zero.

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Page 1 of 2 IFRIC 16 was superseded by IFRS 9 Financial Instruments, and is only applied by entities that continue to apply the hedge accounting requirements of IAS Periods beginning on or after 1 October 2008
39 Financial Instruments: Recognition And Measurement

IFRIC 16 Hedges of a Net Investment in a Foreign Operation

SCOPE DEFINITIONS

The issues addressed in IFRIC 16 are:  IFRIC 16 applies to an entity that

 The nature of the hedged risk and the amount of the hedged item for which a hedging relationship may be designated: hedges the foreign currency risk
‒ Whether the parent entity may designate as a hedged risk only the foreign exchange differences arising from a difference between the functional currencies of the parent arising from its net investments in
entity and its foreign operation, or whether it may also designate as the hedged risk the foreign exchange differences arising from the difference between the presentation foreign operations and wishes to
apply for hedge accounting in
‒ If the parent entity holds the foreign operation indirectly, whether the hedged risk may include only the foreign exchange differences arising from differences in functional accordance with IAS 39 Financial
currencies between the foreign operation and its immediate parent entity, or whether the hedged risk may also include any foreign exchange differences between the Instruments: Recognition and
functional currency of the foreign operation and any intermediate or ultimate parent entity. Measurement
 Where in a group the hedging instrument can be held:
 IFRIC 16 applies only to hedges of net
‒ Whether a qualifying hedge accounting relationship can be established only if the entity hedging its net investment is a party to the hedging instrument or whether any
investments in foreign operations; it
entity in the group, regardless of its functional currency, can hold the hedging instrument
should not be applied by analogy to
‒ Whether the nature of the hedging instrument (derivative or non-derivative) or the method of consolidation affects the assessment of hedge effectiveness.
other types of hedge accounting.
 What amounts should be reclassified from equity to profit or loss as reclassification adjustments on disposal of the foreign operation:
‒ eserve in respect of the hedging instrument
ated financial statements
‒ Whether the method of consolidation affects the determination of the amounts to be reclassified from equity to profit or loss.

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Page 2 of 2 IFRIC 16 was superseded by IFRS 9 Financial Instruments, and is only applied by entities that continue to apply the hedge accounting requirements of IAS 39 Periods beginning on or after 1 October 2008
Financial Instruments: Recognition And Measurement

IFRIC 16 Hedges of a Net Investment in a Foreign Operation

CONSENSUS

NATURE OF THE HEDGED RISK AND AMOUNT OF THE HEDGED ITEM FOR
WHERE THE HEDGING INSTRUMENT CAN BE HELD DISPOSAL OF A HEDGED FOREIGN OPERATION
WHICH A HEDGING RELATIONSHIP MAY BE DEMONSTRATED

 Hedge accounting may be applied only to the foreign exchange differences  A derivative or a non-derivative instrument may be  When a foreign operation that was hedged is disposed of,
arising between the functional currency of the foreign operation and the designated as a hedging instrument in a hedge of a net the amount reclassified to profit or loss as a reclassification
investment in a foreign operation adjustment from the foreign currency translation reserve in
 In a hedge of the foreign currency risks arising from a net investment in a  The hedging instrument(s) may be held by any entity or the consolidated financial statements of the parent in
foreign operation, the hedged item can be an amount of net assets equal to or entities within the group as long as the designation, respect of the hedging instrument is the amount that IAS 39
less than the carrying amount of the net assets of the foreign operation in the documentation and effectiveness requirements of IAS 39 requires to be identified
consolidated financial statements of the parent entity paragraph 88 that relate to a net investment hedge are  The amount reclassified to profit or loss from the foreign
 The hedged risk may be designated as the foreign currency exposure arising satisfied. In particular, the hedging strategy of the group currency translation reserve in the consolidated financial
between the functional currency of the foreign operation and the functional should be clearly documented because of the possibility of statements of a parent in respect of the net investment in
currency of any parent entity (the immediate, intermediate or ultimate parent different designations at different levels of the group. that foreign operation in accordance with IAS 21 The Effects
entity) of that foreign operation of Changes in Foreign Exchange Rates is the amount
 An exposure to foreign currency risk arising from a net investment in a foreign in respect of that foreign operation.
operation may qualify for hedge accounting only once in the consolidated
financial statements. Therefore, if the same net assets of a foreign operation
are hedged by more than one parent entity within the group for the same risk,
only one hedging relationship will qualify for hedge accounting in the
consolidated financial statements of the ultimate parent.

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 Effective Date
Periods beginning on or after 1 July 2009

IFRIC 17 Distribution of Non-Cash Assets to Owners

ISSUES SCOPE

When an entity declares a distribution and has an obligation to distribute the assets concerned to its  IFRIC 17 applies to the following types of non-reciprocal distributions of assets by an entity to its owners
owners, it must recognise a liability for the dividend payable. Consequently, IFRIC 17 addresses the acting in their capacity as owners:
following issues: ‒ Distribution of non-cash assets
 When should the entity recognise the dividend payable? ‒ Distributions that give owners a choice of receiving either non-cash assets or a cash alternative
 IFRIC 17 only applies if all owners of a class of equity instruments are treated equally
 How should an entity measure the dividend payable?
 IFRIC 17 does not apply to distributions of non-cash assets that are ultimately controlled by the same
 When an entity settles the dividend payable, how should it account for any difference between the
party or parties before and after the distribution.
carrying amount of the assets distributed and the carrying amount of the dividend payable?

CONSENSUS PRESENTATION & DISCLOSURE

 An entity presents any gains or losses arising from differences in the
WHEN TO RECOGNISE A ACCOUNTING FOR DIFFERENCES carrying amounts of dividend liabilities and related assets that are
MEASUREMENT OF A DIVIDEND PAYABLE derecognised on settlement as a separate line item in profit or loss
DIVIDEND PAYABLE IN CARRYING AMOUNTS
 An entity discloses the following information, if applicable:
The liability to pay a dividend is  An entity measures a liability to distribute non-cash assets When an entity settles the dividend ‒ The carrying amount of the dividend payable at the beginning and
recognised when the dividend is as a dividend to its owners at the fair value of the assets payable, it recognises the difference, end of the period
appropriately authorised and is no to be distributed if any, between the carrying amounts ‒ The increase or decrease in the carrying amount recognised in the
longer at the discretion of the entity,  If an entity gives its owners a choice of receiving either a of the assets distributed and the period as result of a change in the fair value of the assets to be
which is the date either: non-cash asset or a cash alternative, the entity estimates carrying amount of the dividend distributed.
 When declaration of the dividend is the dividend payable by considering both the fair value of payable in profit or loss.  If, after the end of a reporting period but before the financial
approved by the relevant authority, each alternative and the associated probability of owners statements are authorised for issue, an entity declares a dividend to
if the jurisdiction requires such selecting each alternative distribute a non-cash asset, it discloses:
approval  At the end of each reporting period and at the date of ‒ The nature of the asset to be distributed
 When the dividend is declared, if settlement, the entity reviews and adjusts the carrying ‒ The carrying amount of the asset to be distributed as of the end of
the jurisdiction does not require amount of the dividend payable, with any changes in the the reporting period
further approval. carrying amount of the dividend payable recognised in ‒ The estimated fair value of the asset to be distributed as of the end
equity as adjustments to the amount of the distribution. of the reporting period, if it is different from its carrying amount and
the information about the method used to determine that fair value
required by IFRS 13 Fair Value Measurement.

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 Effective Date
Periods beginning on or after 1 July 2010

IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments

ISSUES SCOPE

IFRIC 19 addresses the following issues: This Interpretation addresses the accounting by an entity when the terms of a financial liability are renegotiated and result in the entity issuing equity instruments to a

creditor to extinguish all (or part) of the financial liability
The Interpretation does not cover:
 How should the issuing entity initially measure these equity instruments?  If the creditor is a direct/indirect shareholder and is acting in its capacity as a direct/indirect existing shareholder
 How should the issuing entity account for any difference between the carrying  The creditor and the issuing entity are controlled by the same party or parties before and after the transaction, and the substance of the transaction includes an
amount of the financial liability and the equity instruments issued? equity distribution by or consideration to the entity
 The issuing of equity shares to extinguish debt is in accordance with the original terms upon entering into the financial liability (such as convertible debt).

CONSENSUS

ARE EQUITY INSTRUMENTS ISSUED TO EXTINGUISH FINANCIAL LIABILITIES, CONSIDERATION PAID?

The issue of instruments is to be treated as consideration to extinguish financial liabilities.
The financial liability is removed from the statement of financial position only when IFRS 9.3.3.1 is satisfied:
 i.e. when the obligation (in part or in full) specified in the contract is discharged or cancelled or expires.

INITIAL MEASUREMENT OF CONSIDERATION PAID PART EXTINGUISHMENT ADDITIONAL CONCERNS

The equity instruments issued are measured and recognised at fair value of the issued equity instruments (if fair value can be measured reliably). If only part of the financial liability is extinguished, the entity is required to assess whether some
of the consideration paid relates to a modification of the terms of the liability that remains
outstanding.
FAIR VALUE IS NOT RELIABLY MEASURABLE If part of the consideration paid does relate to a modification of the terms of the remaining part
The equity instruments are required to be measured to reflect the fair value of the financial liability extinguished. of the liability, the entity allocates the consideration paid between the part of the liability
extinguished and the part of the liability that remains outstanding.
 Demand features of the financial liability are not taken into account (IFRS 13.47 does not apply).
The entity considers all relevant facts and circumstances relating to the transaction in making
this allocation.
DATE OF RECOGNITION
If the remaining liability has been substantially modified, the entity is required to:
The equity instruments issued are initially recognised and measured at the date the financial liability (or part) is extinguished.  Extinguish the original liability
 Recognise a new liability, as required by IFRS 9.3.3.2.
DIFFERENCE BETWEEN CARRYING AMOUNT OF FINANCIAL LIABILITY EXTINGUISHED AND CONSIDERATION PAID Changes are recognised and disclosed as a separate line item in profit or loss.
The difference between the carrying amount of the financial liability (or part of a financial liability) extinguished, and the consideration paid, is
recognised in profit or loss in accordance with IFRS 9.3.3.2.

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 Effective Date
Periods beginning on or after 1 January 2013

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

ISSUES SCOPE DEFINITIONS

IFRIC 20 addresses the following issues: The interpretation applies to waste removal (stripping) costs that are incurred in Production phase - is not defined in IFRIC 20. Judgement is required.
surface mining activity, during the production phase of the mine.
 When should a stripping-activity-asset be recognised?
 How should the stripping-activity-asset be measured initially?
 How should the stripping-activity-asset be measured subsequently?

ILLUSTRATIVE EXAMPLES

RECOGNITION OF PRODUCTION STRIPPING COSTS AS AN ASSET INITIAL MEASUREMENT

Costs that improve access to ore The stripping-activity-asset is initially measured at cost:
The benefit of improved access to ore qualifies for recognition as part of (a component of) an existing asset when:  Cost that are directly incurred to perform the stripping activity
 It is probable that the future economic benefit (i.e. improved access to the ore body) associated with the stripping activity  An allocation of directly attributable costs.
will flow to the entity Costs associated with incidental operations occurring concurrently with stripping activity are not included in the cost of the
 The component of the ore body for which access has been improved can be identified stripping-activity-asset.
 The stripping activity costs can be reliably measured. When costs of the stripping-activity-asset and inventory produced are not separately identifiable, allocate costs based on a
relevant production measure:
Such costs will be classified as a tangible or an intangible non-current asset according to the nature of the existing asset to
which they relate.  Calculated for the identified component of the ore body
The stripping-activity-asset is specifically associated with the section of ore that becomes directly accessible as a result of  Used as a benchmark to identify the extent to which additional activity of creating future benefit has taken place.
the stripping activity.

Costs that produce ore Routine stripping costs SUBSEQUENT MEASUREMENT

The benefits from stripping activities that are released in the Routine stripping costs that are not incurred as part of the
form of inventory (ore) are recognised in accordance with IAS stripping activities are accounted for as current costs of Carried at cost or revalued amount, less depreciation (or amortisation), less accumulated impairment losses.
2 Inventories. production in accordance with IAS 2.
Method of depreciation (or Expected useful life of the specific Impairment
amortisation) section of the ore body Is accounted for in accordance with IAS
Rational and systematic basis, over the Is likely to differ from the expected life 36 Impairment of Assets.
expected useful life of the specific of:
section of the ore body that becomes  The mine; and/or
directly accessible as a result of the  The related life-of-mine assets.
stripping activities. This is because stripping activities will
The units-of-production method is give access only to a portion of the total
applied unless another method is more ore body.
appropriate.

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 Effective Date
Page 1 of 2 Periods beginning on or after 1 January 2014

IFRIC 21 Levies
ISSUES SCOPE

IFRIC 21 addresses the following issues: The interpretation applies to liability to pay a levy:
 What is the obligating event that gives rise to the recognition of a liability to pay a levy?  If that liability is within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets, or
 Does economic compulsion to continue to operate in a future period create a constructive obligation to  Whose timing and amount is certain.
pay a levy that will be triggered by operating in that future period?
 Does the going concern assumption imply that an entity has a present obligation to pay a levy that will
be triggered by operating in a future period? DEFINITIONS
 Does the recognition of a liability to pay a levy arise at a point in time or does it, in some circumstances,
arise progressively over time? Levy: a levy is an outflow of resources embodying economic benefits that is imposed by governments on
entities in accordance with legislation (i.e laws and/or regulations), other than:
 What is the obligating event that gives rise to the recognition of a liability to pay a levy that is triggered
if a minimum threshold is reached? a) Those outflows of resources that are within the scope of other Standards (e.g. income taxes within the
scope of IAS 12 Income Taxes); and
 Are the principles for recognising in the annual financial statements and in the interim financial report a
liability to pay a levy the same? b) Fines or other penalties that are imposed for breaches of the legislation.
Government: refers to government, government agencies and similar bodies whether local, national or
international.

CONSENSUS

OBLIGATING EVENT

The obligating event that gives rise to a liability to pay a levy is the activity that triggers the payment of the levy, as identified by the legislation.
E.g. if the activity that triggers the payment of the levy is the generation of revenue in the current period and the calculation of that levy is based on the revenue that was generated in a previous period:
 The obligating event for that levy is the generation of revenue in the current period (even though the generation of revenue in the previous period is necessary to calculate the levy, it does not create the present
obligation in the current period).
The following factors do not create (or imply) an obligating event:
 Preparation of the financial statements under the going concern principle
 Economic compulsion of the entity.

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 Effective Date
Page 2 of 2 Periods beginning on or after 1 January 2014

IFRIC 21 Levies
RECOGNITION LEVY WITH A MINIMUM THRESHOLD INTERIM FINANCIAL STATEMENTS

The recognition of a levy liability occurs progressively so long as the If the levy is subject to a minimum threshold, recognition of a levy The interpretation applies equally to interim financial statements.
obligating event itself occurs over a period of time. liability occurs only at the point the minimum threshold is breached,
and not before.

ILLUSTRATIVE EXAMPLES

i. Where a levy is triggered progressively as the entity generates revenue ii. A levy is triggered in full as soon as the entity generates revenue
The levy is recognised progressively from the point at which the entity first begins to generate revenue (i.e. The levy is recognised in full as soon as the entity generates revenue (i.e. as the generation of revenue is
as the generation of revenue is the obligating event). the obligating event).

iii. A levy is triggered in full if the entity operates as a bank [or other specified activity] at a specified iv. A levy is triggered if the entity generates revenue above a minimum amount of revenue
date The levy is only recognised once the minimum threshold has been reached (the obligating event is
The levy is only ever recognised on the specified date, and is only ever recognised in full, subject to the breaching the minimum threshold).
entity operating in the specified activity (the obligating event is operating in a specified activity at a
specified date).

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 Effective Date
Periods beginning on or after 1 January 2018

IFRIC 22 Foreign Currency Transactions and Advance Consideration

ISSUE

When an entity receives consideration in advance of recognising the associated revenue in the income statement, it recognises both the consideration received and a non-monetary liability (deferred income or
contract liability) in the statement of financial position at the spot rate of exchange in accordance with IAS 21 The effects of Changes in Foreign Exchange. When the deferred income is subsequently recognised in the
income statement as revenue the question arises as to whether its measurement should reflect:
 the amount at which the deferred income was originally recognised, i.e. when the consideration was originally received; or
 the amount of consideration received translated at the exchange rate applicable on the date the non-monetary item is released to the income statement as revenue, with a foreign exchange gain or loss reflecting
the difference between the amount of consideration received translated at (i) the prevailing spot rate when received and (ii) the prevailing spot rate when recognised in the income statement as revenue or a cost.

SCOPE

IFRIC 22 applies to foreign currency transactions that result in the recognition of a non-monetary asset (or liability) arising from the payment (or receipt) of consideration before the entity recognises the related asset or
expense (or income), except for payments and receipts relating to:
 income taxes; and

 insurance contracts (including reinsurance contracts) that it issues or reinsurance contracts that it holds.

CONSENSUS

 IFRIC 22 specifies that the date of a transaction for the purpose of determining the exchange rate to use on initial recognition of related asset, expense or income (or part of it) on the derecognition of non-monetary
asset or non-monetary liability arising from the payment or receipt of advance consideration, is the date on which that non-monetary asset or liability was initially recognised. Therefore, the related income, expense
or asset is not remeasured for changes in exchange rates occurring between the date of initial recognition of the advance consideration and the date of recognition of the transaction to which that consideration
relates.
 If there are multiple payments or receipts in advance, the entity shall determine a date of the transaction for each payment or receipt of advance consideration.

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 Effective Date
Page 1 of 2 Periods beginning on or after 1 January 2019

IFRIC 23 Uncertainty over Income Tax Treatments

MEASUREMENT SCOPE

IFRIC 23 addresses the following issues: IFRIC 23 clarifies how to apply the recognition and measurement requirements in IAS 12 Income Taxes when there is
 Whether an entity should consider uncertain tax treatments separately; uncertainty over income tax treatments.

 The assumptions an entity should make about the examination of tax treatments by taxation authorities;
 How an entity determines taxable profit or loss, tax bases, unused tax losses, unused tax credits and tax rates; and
DEFINITIONS
 How an entity considers changes in facts and circumstances 


might include a court


will accept the tax treatment under tax law

CONSENSUS

1.UNIT OF ACCOUNT 2.EXAMINATION BY TAX AUTHORITIES

IFRIC 23 requires an entity to treat uncertain tax treatments separately or together depending on which method better When measuring current and deferred income tax assets and liabilities IFRIC 23 requires an entity to assume that a taxation
predicts the resolution of the uncertainty. authority will examine amounts that it has a right to examine and have full knowledge of all related information when making
those examinations.

3.DETERMINATION OF TAX ITEMS 4.CHANGES IN FACTS AND CIRCUMSTANCES

IFRIC 23 requires an entity to make an assessment of whether it is probable a taxation authority will accept an uncertain tax The accounting for uncertain tax treatments requires an entity to make estimates and judgements about whether the
treatment. If it is probable the treatment will be accepted then taxable profit (tax loss), tax bases, unused tax losses, unused relevant taxation authority will accept the position taken by the entity in its tax filings. IFRIC 23 requires those estimates and
tax credits and tax rate should be consistent with the treatment used or planned to be used in its income tax filings. If it is judgements to be reassessed if the facts and circumstances on which those estimates and judgements are based change,
not probable the position will be accepted, then an entity reflects that uncertainty in one of two ways depending on which or as a result of new information that affects the estimates and judgements. The effects of such changes should be reflected
method better predicts the resolution of the uncertainty: by applying IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and treated as a change in accounting
 An expected value approach; or estimate. In addition IAS 10 Events after the Reporting Date should be applied to determine whether such a change that
occurs after the reporting period is an adjusting or non-adjusting event.
 The most likely approach

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 Effective Date
Page 2 of 2 Periods beginning on or after 1 January 2019
(earlier application permitted)

IFRIC 23 Uncertainty over Income Tax Treatments

EXAMPLES

In applying consensus 3:
 Assume an entity has claimed deductions in its taxation filing related to transfer pricing and concluded it is not probable the fer
pricing matter would affect, or be affected by, the other transfer pricing matters, then it would calculate a probability-weighted average of the possible outcomes arising from an investigation by the tax authorities in measuring income tax assets and
liabilities (i.e. an expected value approach.
 Assume an entity may has claimed a current tax deduction of 100% of the cost of an intangible asset, but expects the taxation authority to accept only a 10% deduction in each of the next 10 years, the entity would measures its current tax position in the
year of purchase based on a current tax deduction equal to only 10% of cost and its deferred tax position would assume a tax base of the asset equal to 90% of cost and not 0% (i.e. the most likely approach).

DISCLOSURE TRANSITION

 Judgements made in determining taxable profit or loss (paragraph 122 of IAS 1 Presentation of Financial Statements; An entity may use either
 Information about the assumptions and estimates made (paragraphs 125-129 of IAS 1)  retrospectively by restating comparatives if possible without hindsight; or
 Potential effect of an uncertainty tax treatment as a tax-related contingency (paragraph 88 of IAS 12)  retrospectively with the cumulative effect recognised by adjusting the opening balance of retained earnings on the date
of initial application (i.e. the start of the accounting period in which IFRIC 23 is fist applied). In this case comparatives
would not be restated.

118
 Effective Date
Periods beginning on or after 1 June 1998

SIC-7 Introduction of the Euro

ISSUE

 The Euro became a currency in its own right from 1 January 1999 (the effective start date of Economic and Monetary Union (EMU))
 The Euro and participating national currencies are irrevocably fixed from this date
 The issue is the application of IAS 21 The Effects of Changes in Foreign Exchange Rates

EMU IS A SINGLE MARKET WITH A COMMON CURRENCY.

CONSENSUS

 The requirements of IAS 21 regarding the translation of foreign currency transactions and financial statements of foreign operations should be strictly applied to the changeover
 The same rationale applies to the fixing of exchange rates when countries join EMU at later stages.
This means that, in particular:
 Foreign currency transactions
‒ Continue to be translated into the functional currency at the closing rate
‒ Any exchange differences are recognised in profit or loss immediately, except that an entity continues to apply its existing accounting policy for exchange gains and losses related to hedges of the currency risk of a
forecast transaction.
‒ Translation of financial statements of foreign operations
‒ Cumulative exchange differences relating to the translation of financial statements of foreign operations are recognised in other comprehensive income, and are accumulated in equity
‒ They are only reclassified from equity to profit or loss on the disposal of the net investment in the foreign operation.
 Translation of liabilities denominated in participating currencies
‒ Exchange differences resulting from the translation of liabilities denominated in participating currencies are not included in the carrying amount of related assets.

119
 Effective Date
Periods beginning on or after 1 August 1998

SIC-10 Government Assistance: No Specific Relation to Operating Activities

ISSUE

 In some countries government assistance to entities may be aimed at encouragement or long-term support of business activities either in certain regions or industry sectors
 Conditions to receive such assistance may not be specifically related to the operating activities of the entity
 Examples of such assistance are transfers of resources by governments to entities which:
 Operate in a particular industry
 Continue operating in recently privatised industries

 Start or continue to run their business in underdeveloped areas.

 Accounting for Government Grants and Disclosure of Government Assistance and, therefore, should be
accounted for in accordance therewith.

CONSENSUS

 Government assistance to entities meets the definition of government grants in IAS 20, even if there are no conditions specifically relating to the operating activities of the entity other than the requirement to operate
in certain regions or industry sectors
 r loss.

120
 Effective Date
Periods beginning on or after 15 July 2000

SIC-25 Income Taxes: Changes in the Tax Status of an Entity or its Shareholders
ISSUE

 The issue is how an entity accounts for the tax consequences of a change in its tax status or that of its shareholders
 A change in the tax status of an entity or of its shareholders may have consequences for an entity by increasing or decreasing its tax liabilities or assets. This may, for example, occur upon the public listing of an
move to a foreign country. As a result of such an event, an entity may be taxed differently; it
may for example gain or lose tax incentives or become subject to a different rate of tax in the future
 ies or assets. The change may also increase or decrease the deferred tax liabilities and assets
recognised by the entity, depending on the effect the change in tax status has on the tax consequences that will arise from reco

CONSENSUS

 A change in the tax status of an entity or its shareholders does not give rise to increases or decreases in amounts recognised outside profit or loss
 The current and deferred tax consequences of a change in tax status are included in net profit or loss for the period, unless those consequences relate to transactions and events that result, in the same or a different
period, in a direct credit or charge to the recognised amount of equity or in amounts recognised in other comprehensive income
 Those tax consequences that relate to changes in the recognised amount of equity, in the same or a different period (not included in net profit or loss), are charged or credited directly to equity
 Those tax consequences that relate to amounts recognised in other comprehensive income are recognised in other comprehensive income.

121
Also refer:
Effective Date
IFRIC 12 Service concession Arrangements
Periods beginning on or after 31 December 2001

SIC-29 Service Concession Arrangements: Disclosure

ISSUE

 A service concession arrangement generally involves the grantor conveying for the period of the concession to the operator:
 The right to provide services that give the public access to major economic and social facilities
 In some cases, the right to use specified tangible assets, intangible assets or financial assets.

 In exchange, the operator:

 Commits to provide the services according to certain terms and conditions during the concession period
 When applicable, commits to return at the end of the concession period the rights received at the beginning of the concession period and/or acquired during the concession period.

 The common characteristic of all service concession arrangements is that the operator both receives a right and incurs an obligation to provide public services
 The issue is what information should be disclosed in the notes of an operator and a grantor.

CONSENSUS

 An operator and a grantor disclose the following in each period:

 A description of the arrangement
 Significant terms of the arrangement that may affect the amount, timing and certainty of future cash flows
 The nature and extent (e.g., quantity, time period or amount as appropriate) of:
 Rights to use specified assets
 Obligations to provide or rights to expect provision of services
 Obligations to acquire or build items of property, plant and equipment
 Obligations to deliver or rights to receive specified assets at the end of the concession period
 Renewal and termination options
 Other rights and obligations.
 Changes in the arrangement occurring during the period
 How the service arrangement has been classified.
 The above disclosures are required separately for each individual service concession arrangement
 An operator discloses the amount of revenue and profits or losses recognised in a reporting period on exchanging construction services for a financial asset or an intangible asset.

122
 Effective Date
Periods beginning on or after 25 March 2002

SIC-32 Intangible Assets: Website Costs

ISSUE

 l access, the issues are:

 Whether the web site is an internally generated intangible asset that is subject to the requirements of IAS 38 Intangible Assets
 The appropriate accounting treatment of such expenditure.
 SIC-32 does not apply to expenditure on purchasing, developing and operating hardware of a website.

CONSENSUS

 gible asset that is subject to the requirements of IAS 38

 38. The nature of each activity for which expenditure is incurred (e.g. training
-development is evaluated to determine the appropriate accounting treatment (additional guidance is provided in the
Appendix to SIC-32)
 Cost incurred are only capitalised if the criteria in IAS 38.57 are all met


123
Appendix 1 IFRS 18, IFRS 19 and Select Consequential
Amendments
IFRS 18 Presentation and Disclosure in Financial Statements and
IFRS 19 Subsidiaries without Public Accountability: Disclosures were
issued in May 2024 and are mandatorily effective for annual
reporting periods beginning on or after 1 January 2027. IFRS 18
resulted in numerous consequential amendments to IFRS Accounting
Standards, including IAS 7 and IAS 8. These amendments also
include the retitling of IAS 8.
Appendix 1 includes IFRS 18, IFRS 19 and versions of IFRS Accounting
Standards that had major consequential amendments as a result of
IFRS 18 being issued. The summary of IFRS Accounting Standards
outside of Appendix 1 do not reflect the consequential amendments
issued as a result of IFRS 18 and IFRS 19 (e.g. the withdrawal of IAS 1,
amendments to IAS 7, etc.).
 Effective Date
Page 1 of 4
Periods beginning on or after 1 January 2027

IFRS 18 Presentation and Disclosure in Financial Statements

SCOPE GENERAL REQUIREMENTS

Applies in presenting Objective of Financial Roles of Primary Financial Frequency of Presentation Comparative Changes in accounting policy, retrospective
and disclosing Statements Statements and Notes reporting consistency information restatement or reclassification
information in financial To provide financial information  To provide structured Provide a Retain presentation Provide comparative  Any changes in presentation, disclosure or
statements prepared in summaries i.e. more complete set of and classification from information from the classification of items in the financial statements,
accordance with IFRS liabilities, equity, income and aggregated information financial one period to the next preceding reporting reclassify comparative amounts unless
Accounting Standards. expenses that is in the primary financial statements at unless criteria in IAS 8 period for all reclassification is impracticable
useful to users of financial statements than in the least annually. Basis of Preparation of amounts reported in  When an entity reclassifies comparative amounts, it
statements in notes. Financial Statements the current period shall disclose nature, amount of each item and
 Assessing the prospects for  The notes will provide are met to change unless an IFRS reason for reclassification
future net cash inflows to more detailed presentation or an IFRS Accounting  When it is impracticable to reclassify, an entity shall
the entity; and information, including Accounting Standard Standard permits or disclose the reason for not reclassifying and
disaggregation of requires a change. requires otherwise. adjustments that would have been made if amounts

information presented in had been reclassified.
economic resources. the primary financial
statements.

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 Effective Date
Page 2 of 4
Periods beginning on or after 1 January 2027

IFRS 18 Presentation and Disclosure in Financial Statements

COMPONENTS OF FINANCIAL STATEMENTS AGGREGATION AND DISAGGREGATION

A complete set of financial statements comprises: Principles of aggregation and disaggregation Additional presentation criteria Offsetting
 Primary financial statements An entity is required to present line items by An entity is required to present additional line items or Offsetting of assets and
 Statement of financial position aggregating on shared characteristics and sub-totals which shall: liabilities or income and
 Statement(s) of financial performance
disaggregate items based on characteristics  Comprise amounts recognised and measured in expenses are not permitted
 Statement of changes in equity
that are not shared. accordance with IFRS Accounting Standards unless required by other IFRS
 Statement of cash flows
Accounting Standards.
 Be compatible with statement structure created by
 Notes for the reporting period An entity shall disaggregate items with the requirements listed in IFRS 18.22
dissimilar characteristics when the resulting  Be consistent from period to period
The statement of financial performance is presented either as (1) a single information is material.
 Be displayed no more prominently than the totals
statement of profit or loss and other comprehensive income; or (2)
separate statements of profit or loss and other comprehensive income. and subtotals required by IFRS Accounting
Standards.
All statements are required to be presented with equal prominence.

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 Effective Date
Page 3 of 4
Periods beginning on or after 1 January 2027

IFRS 18 Presentation and Disclosure in Financial Statements

STRUCTURE AND CONTENT

STATEMENT OF FINANCIAL POSITION STATEMENT OF PROFIT OR LOSS (SEE NEXT PAGE FOR STATEMENT OF CHANGES IN EQUITY STATEMENT OF CASH FLOWS
DETAILS)
 Present current and non-current items separately; or Information required to be presented:
 Present items in order of liquidity.  An entity presents all items of income and expense recognised in a period, Provides users of financial statements
either:  Total comprehensive income for the period,
with cash flow information refer to
Current assets Current liabilities ‒ In a single statement of profit or loss and other comprehensive income showing separately attributable to owners or the
IAS 7 Statement of Cash Flows.
‒ In two statements: a statement of profit or loss and a separate statement parent and non-controlling interest
 Expected to be realised in,  Expected to be settled in
presenting comprehensive income.  For each component of equity, the effects of
or is intended for sale or
 Information required to be presented in the: retrospective application/restatement recognised in
operating cycle
‒ Statement of profit or loss as required in IFRS 18.46-85 accordance with IAS 8 Basis of Preparation of
normal operating cycle  Held primarily for trading
‒ Statement presenting comprehensive income as defined in IFRS 18.86-95 Financial Statements IDENTIFICATION OF THE
 Held primarily for trading  Due to be settled within 12
‒ Further information required is to be presented on the face or in the  The amounts of transactions with owners in their FINANCIAL STATEMENTS
 Expected to be realised months
notes to the financial statements. capacity as owners, showing separately
within 12 months  The entity does not have
 contributions by and distributions to owners Financial statements must be clearly
 Cash or cash equivalents. the right at the end of the
basis' which reflects the most useful structured summary of operating  For each component in equity a reconciliation identified and distinguished from other
reporting period to defer
All other assets are required to expenses. between the carrying amount at the beginning and information in the same published
settlement of the liability for
be classified as non-current.  Mandatory presentation of the following totals and subtotals: (1) operating end of the period, separately disclosing each document, and must identify:
at least 12 months.
profit; (2) profit or loss before financing and income taxes; (3) profit or loss. change
 The level of rounding Name of the
All other liabilities are required  Line items within other comprehensive income are required to be  Amount of dividends recognised as distributions to
reporting entity
to be classified as non-current. categorised into two categories: owners during the period (can alternatively be
 Whether the financial statements cover
‒ Those that could subsequently be reclassified to profit or loss disclosed in the notes)
Information required to be presented on the face of the ‒ Those that cannot be re-classified to profit or loss. the individual entity or a group of
  Analysis of each item of OCI (alternatively to be
statement of financial position is detailed in IFRS 18.103-104 ‒ Classification of foreign exchange differences entities
disclosed in the notes).
 Further information required to be presented on the face or  An entity shall classify foreign exchange differences included in the  The statement of financial position
in the notes to the financial statements. statement of profit or loss applying IAS 21 in the same category as the date (or the period covered)
income and expenses from the items that gave rise to the foreign exchange  The presentation currency used.
differences, unless doing so would involve undue cost or effort.
NOTES TO THE FINANCIAL STATEMENTS
 Statement of compliance with IFRS Accounting MANAGEMENT-DEFINED PERFORMANCE THIRD STATEMENT OF FINANCIAL POSITION REPORTING PERIOD
Standards MEASURES (MPM)
 Material accounting policy information, estimates, A third statement of financial position required when an entity applies  Accounts presented at least annually
assumptions, and judgements must be disclosed  MPMs are a subtotal of income and expenses that an an accounting policy retrospectively, or makes retrospective  If longer or shorter, entity must disclose
 Additional information useful to users understanding/ entity uses in public communications outside the restatements or reclassifications: that fact.
decision making to be presented  Opening statement is only required if impact is material
 view of an aspect of financial performance (e.g.
 Opening statement is presented as at the beginning of the
objectives, policies and processes for managing immediately preceding comparative period required by IFRS 18 (e.g.
capital.  An entity is required to disclose all MPMs in a single
if an entity has a reporting date of 31 December 20X2 statement of
 Note disclosing the management-defined performance note to the financial statements, including a
financial position, this will be as at 1 January 20X1)
measures used by the entity. description, how the MPM was calculated, a
 Only include notes for the third period relating to the change.
reconciliation to the most directly comparable IFRS
127 Accounting Standard subtotal and the income tax/NCI
effects.
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Periods beginning on or after 1 January 2027

IFRS 18 Presentation and Disclosure in Financial Statements

STATEMENT OF PROFIT OR LOSS

CLASSIFICATION OF INCOME AND INVESTING CATEGORY Illustrative example entity without specified main business activities:
EXPENSES
 Income and expenses from investments in associate, joint ventures and Line item Classification
 Classify income and expenses in one of five unconsolidated subsidiaries, cash and cash equivalents and other assets, if they
categories: Revenue XXX
 Investing resources.
 Financing  Examples of items generally classified in the investing category for entities without Cost of sales XXX
 Income Tax specified main business activities:
 Discontinued operations  Fair value gains/losses on financial assets measured at fair value Gross profit XXX
 Operating  Interest income on financial assets
 Equity method income/loss from joint ventures and associates Other operating income XXX Operating category
 Dividend income
Rental income Selling expenses XXX
ENTITIES WITH SPECIFIED MAIN BUSINESS 

ACTIVITIES** Research and development XXX

FINANCING CATEGORY
Exceptions to the requirements for entities that have
that  Most income and expense related to: General and administrative XXX
is a main business activity of:  Liabilities arising from transactions that involve only raising of finance such as
 Investing in particular types of assets or; debt instruments settled in cash (e.g. debentures, loans, etc.) Operating profit XXX Mandatory specified sub-total
 Providing financing to customers.  Other liabilities such as payables for goods or services and contract liabilities,
Certain income and expenses will be classified in lease liabilities, defined benefit pension liabilities, certain provisions Share of profit from joint venture XXX Investing category
other categories for entities with specified main (decommissioning / asset restoration).
business activities.  Examples of items generally classified in the financing category for entities without Profit before financing and income XXX Mandatory specified sub-total
specified main business activities: taxes
 Interest expense on a debt instruments issued
INCOME TAXES CATEGORY  Interest expenses on lease liabilities Interest expense on borrowings XXX
Financing category
 Net interest expense (income) on a net defined benefit liability (asset) and lease liabilities
Comprises:
 Tax expense or tax income included in the Profit before income taxes XXX Additional sub-total
statement of profit or loss applying IAS 12
Income Taxes. OPERATING CATEGORY Income tax expense XXX Income taxes category
 Any related foreign exchange differences from
 All income and expenses that are not classified in the investing, financing, income
the associated income taxes. Profit from continuing operations XXX Additional sub-total
taxes or discontinued operations categories.
 The operating category is a residual or default category that:
DISCONTINUED OPERATIONS CATEGORY  Loss from discontinued operations XXX Discontinued operations category
regardless of whether they are volatile or non-recurring; and
Comprises income and expenses from discontinued  Includes, but is not limited to income and expenses from other business Profit XXX Mandatory total
operations as required by IFRS 5 Non-current Assets activities, such as income and expenses from additional activities, if those
Held for Sale and Discontinued Operations. income and expenses do not meet the requirements to be classified in any of **The exceptions applied to entities with specified main business activities are
the other categories. beyond the scope of this IFRS Accounting Standards At a Glance, and therefore,
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are not reflected in this publication.
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Periods beginning on or after 1 January 2027

IFRS 7 Financial Instruments: Disclosures

DISCLOSURE REQUIREMENTS: SIGNIFICANCE OF FINANCIAL INSTRUMENTS IN TERMS OF THE DISCLOSURE REQUIREMENTS: NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL
FINANCIAL POSITION AND PERFORMANCE INSTRUMENTS AND HOW THE RISKS ARE MANAGED

STATEMENT OF FINANCIAL POSITION OTHER Qualitative disclosure Quantitative disclosure

 Exposure to risk and how it arises  Summary of quantitative data about exposure to risk based on information

 Total carrying value of each category of financial Accounting policies:  Objectives, policies and processes for managing given to key management
assets and liabilities on face of the statement of risk and method used to measure risk.  Concentrations of risks.
 All relevant accounting policies. Include
financial position or in the notes measurement basis.
 Information on fair value of loans and receivables
Financial liabilities designated as at fair value through Hedge accounting:

SPECIFIC QUANTITATIVE DISCLOSURE REQUIREMENTS
profit and loss  Description of hedge, description and fair
 Financial assets reclassified value of hedged instrument and type of
 Financial assets that do not qualify for derecognition risk hedged
 Details of financial assets pledged as collateral &  Details of cash flow hedges, fair value LIQUIDITY RISK CREDIT RISK MARKET RISK
collateral held hedges and hedge of net investment in
Reconciliation of allowance account for credit losses. Definition: Definition: Definition:

foreign operations.
Compound financial instruments with embedded The risk that an entity will The risk that one party to a financial The risk that the fair value or future cash flows of a financial
  Description of the impact of choosing the
derivatives encounter difficulty in meeting instrument will cause a financial loss instrument will fluctuate due to changes in market prices.
exception under IFRS 9 or IAS 39 for
Details of defaults and breaches of loans payable. obligations associated with for the other party by failing to Market risk comprises three types of risk: currency risk,
 interest rate benchmark reform.
financial liabilities. discharge an obligation. interest rate risk and other price risk.
Fair value:
 Fair value for each class of financial asset
STATEMENT OF COMPREHENSIVE INCOME and liability  Maturity analysis for financial  Maximum exposure to credit risk without  A sensitivity analysis (including methods
 Disclose method and relevant liabilities that shows the taking into account collateral and assumptions used) for each type of
 Gain or loss for each category of financial assets and assumptions to calculate fair value remaining contractual maturities  Collateral held as security and other credit market risk exposed, showing impact on
liabilities in the statement of comprehensive income or  Disclose if fair value cannot be Appendix B10A B11F enhancements profit or loss and equity
in the notes determined.  Time bands and increment are  Information of financial assets that are or
 Total interest income and interest expense (effective either past due (when a counterparty has  If a sensitivity analysis is prepared by an
interest method)  How liquidity risk is managed. failed to make a payment when entity, showing interdependencies
 Fee income and expense contractually due) or impaired between risk variables and it is used to
 Interest on impaired financial assets  Information about collateral and other manage financial risks, it can be used in
 Amount of impairment loss for each financial asset. credit enhancements obtained. place of the above sensitivity analysis.

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Periods beginning on or after 1 January 2027

IFRS 7 Financial Instruments: Disclosures

SCOPE FAIR VALUE (FV) HIERARCHY TRANSFER OF FINANCIAL ASSETS

IFRS 7 applies to all recognised and unrecognised All financial instruments measured at fair value must be classified into the levels below (that reflect how fair Information for transferred assets that are and
financial instruments (including contracts to buy or sell value has been determined): that are not derecognised in their entirety:
non-financial assets) except:  Level 1: Quoted prices, in active markets  Information to understand the relationship
 Interests in subsidiaries, associates or joint  Level 2: Level 1 quoted prices are not available but fair value is based on observable market data between financial assets and associated
ventures, where IAS 27/28 or IFRS 10/11 permit  Level 3: Inputs that are not based on observable market data. liabilities that are not derecognised in their
accounting in accordance with IFRS 9 A financial Instrument will be categorised based on the lowest level of any one of the inputs used for its entirety
 Assets and liabilities resulting from IAS 19 valuation.  Information to evaluate the nature and risk
 Insurance contracts in accordance with IFRS 17 associated with the entities continuing
(excluding embedded derivatives in these contracts The following disclosures are also required: involvement in derecognised assets (IFRS
if IFRS 9 require separate accounting) 7.42A-G).
 Significant transfers of financial instruments between each category and reasons why
 Financial instruments, contracts and obligations
 For level 3, a reconciliation between opening and closing balances, incorporating; gains/losses,
under IFRS 2, except contracts within the scope of
purchases/sales/settlements, transfers
IFRS 9
 Amount of gains/losses and where they are included in profit and loss
 Puttable instruments (IAS 32.16A-D).
 For level 3, if changing one or more inputs to a reasonably possible alternative would result in a
significant change in FV, disclose this fact.

FINANCIAL INSTRUMENTS CLASSIFIED AS EQUITY RECLASSIFICATION OF FINANCIAL INSTRUMENTS

For puttable financial instruments classified as equity instruments, an entity shall disclose (to the extent not  If an entity has reclassified any of the following financial instruments between financial
disclosed elsewhere): liabilities and equity, it shall disclose:
 Summary quantitative data about the amount classified as equity;  The amount reclassified into and out of each category (financial liabilities or equity), and
 Its objectives, policies and processes for managing its obligation to repurchase or redeem the  The timing and reason for that reclassification.
instruments when required to do so by the instrument holders, including any changes from the previous  Financial instruments for reclassification:
period;
 The expected cash outflow on redemption or repurchase of that class of financial instruments; and  A puttable financial instrument classified as an equity instrument, or
 Information about how the expected cash outflow on redemption or repurchase was determined.  An instrument that imposes on the entity an obligation to deliver to another party a pro
rata share of the net assets of the entity only on liquidation and is classified as an equity
instrument.

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 Effective Date (version amended by IFRS 18)
Periods beginning on or after 1 January 2027

IAS 7 Statement of Cash Flows

COMPONENTS

Operating activities Investing activities Financing activities

 Main revenue producing activities of the entity and other activities that are  Activities that relate to the acquisition and disposal of long-term assets and  Activities that cause changes to contributed equity and borrowings of an
not investing or financing activities (including taxes paid/received, unless other investments that are not included in cash equivalents. entity.
clearly attributable to investing or financing activities).  Receipt of interest and dividends, except for entities with specified main  Payment of dividends and interests except for entities with specified main
business activities (see IFRS 18 Presentation and Disclosure in Financial business activities (see IFRS 18 Presentation and Disclosure in Financial
Statements), where exceptions apply (see IAS 7.34A-34D). Statements), where exceptions apply (see IAS 7.33A, 34A-34D).

Received or paid interest and dividends are presented separately and shall be classified in a consistent manner from period to period.

REPORTING CASH FLOWS FROM OPERATING ACTIVITIES DEFINITION: CASH AND CASH EQUIVALENTS

Cash flows from operating activities can be reported using the direct or indirect method.  Short term (where the original maturity is 3 months or less, irrespective of maturity timing post balance date)
 Highly liquid investments
 Readily convertible to known amounts of cash
 Subject to insignificant risk of changes in value.

DIRECT METHOD INDIRECT METHOD CONSIDERATIONS TO NOTE

 Cash received from customers The net cash flow from operating activities is determined by  Non cash investing and financing activities must be  Disclose the components of cash and cash equivalents and provide a
 Cash paid to suppliers adjusting operating profit or loss for the effects of: disclosed separately reconciliation back to the statement of financial position amount if
 Cash paid to employees  Cash flows must be reported gross. Set-off is only required.
 Changes during the period in inventories and permitted in very limited cases and additional  Disclose information about supplier finance arrangements for users to
 Cash paid for operating expenses operating receivables and payables disclosures are required (refer to IAS 7.24 for
 Interest paid  Non-cash items such as depreciation, provisions and examples relating to term deposits and loans) exposure to liquidity risk.
 Taxes paid unrealised foreign currency gains and losses classified  Foreign exchange transactions should be recorded at  Non-cash investing and financing transactions are not included in the
 Dividends paid in the operating category the rate at the date of the cash flow statement of cash flows and should be disclosed elsewhere in the
 Net cash from operating activities.  Income or expenses classified in the operating  Acquisition and disposal of subsidiaries are investment financial statements.
category in the statement of profit or loss for which the activities and specific additional disclosures are  Disclose changes in liabilities arising from financing activities,
cash effects are investing or financing cash flows. required distinguishing between changes from:
 Operating cash flows, such as income tax, for which  Where the equity method is used for joint ventures and − financing cash flows;
the corresponding income or expenses are not associates, the statement of cash flows should only − obtaining or losing control of subsidiaries and other businesses;
classified in the operating category in the statement of show cash flows between the investor and investee − the effect of changes in foreign exchange;
profit or loss.  Disclose cash not available for use by the group − fair value movements; and
 Assets and liabilities denominated in a foreign − other changes.
currency generally include an element of unrealised  Cash payments made by lessees for the reduction of lease liability are
exchange difference at the reporting date financing activities.
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Periods beginning on or after 1 January 2027

IAS 8 Basis of Preparation of Financial Statements

SCOPE GENERAL MATTERS

Applies in determining the basis of preparation of financial statements, including: Fair presentation and compliance Going concern Accrual basis of accounting
with IFRS Accounting Standards Financial statements are required to Entities are required to use accrual
 Selecting and applying accounting policies, and
Financial statements are required to be prepared on a going concern basis of accounting except for cash
 Accounting for changes in accounting policies, changes in accounting estimates and
corrections of prior period errors. be presented fairly as set out in the basis (unless entity is in liquidation flow information.
framework and in accordance with or has ceased trading or there is an
IFRS and are required to comply with indication that the entity is not a
all requirements of IFRS Accounting going concern).
Standards.

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Periods beginning on or after 1 January 2027

IAS 8 Basis of Preparation of Financial Statements

CHANGES IN ACCOUNTING
ACCOUNTING POLICIES ERRORS
ESTIMATES

Definition: Definition Definition

Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and Accounting estimates are monetary amounts in Prior period errors are omissions from, and misstatements in, an
presenting financial statements. financial statements that are subject to
measurement uncertainty. from failure to use/misuse of reliable information that:
 Was available when the financial statements for that period were
issued
 Could have been reasonably expected to be taken into account in

Selection and application of accounting policies: Change in accounting policy Change in accounting estimate those financial statements.
 If a standard or interpretation deals with a Only change a policy if: An entity may need to change an accounting Errors include:
transaction, use that standard or interpretation  Standard/interpretation requires it, or estimate if changes occur in the circumstances  Mathematical mistakes
 If no standard or interpretation deals with a  Change will provide more relevant and reliable information. on which the accounting estimate was based or  Mistakes in applying accounting policies
transaction, judgement should be applied. The as a result of  Oversights and misinterpretation of facts
following sources should be referred to in  new information,  Fraud.
descending order, to make the judgement:  new developments or
− Requirements and guidance in other  more experience
Principle Principle
standards/interpretations dealing with similar
If change is due to new standard / interpretation, apply transitional  Correct all errors retrospectively
issues
provisions. Principle  Restate the comparative amounts for prior periods in which error
− Definitions, recognition criteria in the
If no transitional provisions, apply retrospectively. Recognise the change prospectively in profit or loss occurred or if the error occurred before that date restate opening
Conceptual Framework
in: balance of assets, liabilities and equity for earliest period
− May use other GAAP that use a similar
 Period of change, if it only affects that period; or presented.
conceptual framework and/or may consult other
 Period of change and future periods (if applicable).
industry practice / accounting literature that is
not in conflict with standards / interpretations. If impractical to determine period-specific effects or cumulative If impractical to determine period-specific effects of the error (or
effects of the change, then retrospectively apply to the earliest cumulative effects of the error), restate opening balances (restate
period that is practicable. Disclosure comparative information) for earliest period practicable.
Consistency of accounting policies:
 Nature and amount of change that has an effect
Policies should be consistent for similar
in the current period (or expected to have in
transactions, events or conditions. Disclosure Disclosure
 The title of the standard / interpretation that caused the change
future)  Nature of the prior period error
 Fact that the effect of future periods is not
 Nature of the change in policy  For each prior period presented, if practicable, disclose the
disclosed because of impracticality
Disclosure of accounting policy information  Description of the transitional provisions correction to:
 Information about the assumptions made about
relating to  For the current period and each prior period presented, the amount − Each line item affected
of the adjustment to: the future and other major sources of estimation − Earnings per share (EPS).
 Material transactions
− Each line item affected uncertainty that have a significant risk of resulting  Amount of the correction at the beginning of earliest period
 Immaterial transactions, which otherwise is
in a material adjustment to the carrying amounts
material because of the nature of related − Earnings per share. presented
of assets and liabilities within the next financial
transactions and other events  Amount of the adjustment relating to prior periods not presented  If retrospective application is impracticable, explain and describe
year.
 Entity-specific information - the requirements in  If retrospective application is impracticable, explain and describe how the error was corrected
 The notes will include details of the assets and
the IFRS Accounting Standard that an entity has how the change in policy was applied  Subsequent periods need not to repeat these disclosures.
 Subsequent periods need not repeat these disclosures.
liabilities:
applied to its own circumstances
 Their nature; and
 The judgements, apart from those involving
 Their carrying amount as at the end of the
estimations, that have the most significant effect
reporting period.
on the amounts in the financial statements.

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Periods beginning on or after 1 January 2027

IFRS 19 Subsidiaries without Public Accountability: Disclosures

CORE PRINCIPLE SCOPE

An eligible subsidiary is permitted to apply reduced disclosure requirements as per IFRS 19 instead of the disclosure requirements in other An entity may elect to apply IFRS 19 in its consolidated, separate or individual financial statements if, and
IFRS Accounting Standards. only if, at the end of the reporting period:
 It is a subsidiary;
 It does not have public accountability; and
DISCLOSURE REQUIREMENTS TO BE APPLIED  It has an ultimate or intermediate parent that produces consolidated financial statements available for
public use that comply with IFRS Accounting Standards.
 An entity electing to apply IFRS 19 applies:
 The disclosure requirements of IFRS 19 and
 Requirements other than disclosure requirements (recognition, measurement and presentation) in other IFRS Accounting
PUBLIC ACCOUNTABILITY SUBSIDIARY AND
Standards.
 An entity electing to apply IFRS 19 need not apply the disclosure requirements in other IFRS Accounting Standards nor apply any GROUP
statements about, or references to, those disclosure requirements, except the requirements given below. An entity has public accountability if:
 Its debt or equity instruments are traded in a public market or it is in the Defined in Appendix A of
 Notwithstanding the above, an entity applying IFRS 19 is required to apply:
 Disclosure requirements in other IFRS Accounting Standards that remain applicable, which are specified in IFRS 19.
process of issuing such instruments for trading in a public market; or IFRS 10.
 It holds assets in a fiduciary capacity for a broad group of outsiders as one
 All the disclosure requirements in IFRS 8, IFRS 17 or IAS 33, if these Standards are applied by the entity.

of its primary businesses.
that Standard. Any relief available to an entity applying IFRS 19 from these transition requirements will be set out in that
Standard.
 An entity applying IFRS 19 need not provide a specific disclosure required by IFRS 19 if the information resulting from that disclosure INTERMEDIATE PARENT
would not be material.
 An entity shall consider whether to provide additional disclosures when compliance with the specific requirements in IFRS 19 is  An intermediate parent assesses its eligibility to apply IFRS 19 in its separate financial statements,
insufficient to enable users of financial statements to understand the effect of transactions and other events and conditions. regardless of whether other group entities, or the group as a whole, have public accountability.
 An intermediate parent that does not have public accountability and meets the other eligibility conditions
ELECTING/ REVOKING AN ELECTION TO APPLY IFRS 19 may apply IFRS 19 in its separate financial statements even if it does not apply it in its consolidated
financial statements.
 An entity that elects to apply IFRS 19 in one reporting period may later revoke that election.
 An entity may elect to apply IFRS 19 more than once.
 The entity shall provide comparative information with respect to the preceding period for all amounts reported in the current pe
INTERACTION WITH IFRS 1
financial statements, unless IFRS 19 or another IFRS Accounting Standard permits or requires otherwise.
 The requirements for changes in accounting policies in IAS 8 do not apply to electing or revoking an election to apply IFRS 19.  An entity that applies IFRS 19 when it prepares its first IFRS financial statements shall apply the disclosure
requirements in IFRS 19, rather than IFRS 1.
 Electing or revoking an election to apply IFRS 19 does not, on its own, result in an entity meeting the
STATEMENT OF COMPLIANCE definition of a first-time adopter of IFRS Accounting Standards in IFRS 1.

 An entity that applies IFRS 19 shall, as part of the unreserved statement of compliance with IFRS Accounting Standards, state that it has
applied IFRS 19. INTERACTION WITH IFRS 18

 IFRS 18 is applicable to annual reporting periods beginning 1 January 2027, with earlier application
EFFECTIVE DATE permitted, i.e. it has the same effective date as IFRS 19.
 An entity may elect to apply IFRS 19 before it applies IFRS 18. In this case, the entity shall apply the
 IFRS 19 is applicable to annual reporting periods beginning 1 January 2027, with earlier application permitted. reduced disclosure requirements for IAS 1 included in Appendix B of IFRS 19.

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IFRS 19 Subsidiaries without Public Accountability: Disclosures

STRUCTURE OF IFRS 19

 Disclosure requirements in IFRS 19 are organised by IFRS Accounting Standard.

 The following tables illustrate the reduced disclosure requirements in IFRS 19 for IAS 16 Property, Plant and Equipment.

DISCLOSURE REQUIREMENTS IN IFRS 19 RELATING TO IAS 16 DISCLOSURE REQUIREMENTS IN IAS 16 NOT INCLUDED IN IFRS 19

Paragraph 200: An entity shall disclose, for each class of property, plant and equipment: Paragraph 73: An entity shall disclose, for each class of property, plant and equipment:
(a) the measurement bases used for determining the gross carrying amount; (a)
(b) the depreciation methods used; e) a reconciliation of the carrying amount at the beginning and end of the period
(c) the useful lives or the depreciation rates used; showing:
(d) the gross carrying amount and the accumulated depreciation (aggregated with accumulated impairment losses) at the beginning and end of the viii. the net exchange differences arising on the translation of the financial
reporting period; and statements from the functional currency into a different presentation
(e) a reconciliation (comparative information is not required) of the carrying amount at the beginning and end of the period showing: currency, including the translation of a foreign operation into the
(i) additions;
(ii) assets classified as held for sale or included in a disposal group classified as held for sale in accordance with IFRS 5 and other
disposals; Paragraph 74: The financial statements shall also disclose:
(iii) acquisitions through business combinations; (a)
(iv) increases or decreases resulting from revaluations under paragraphs 31, 39 and 40 of IAS 16, and from impairment losses (b) the amount of expenditures recognised in the carrying amount of an item of property,
recognised or reversed in other comprehensive income in accordance with IAS 36; plant and equipment in the course of its construction
(v) impairment losses recognised in profit or loss in accordance with IAS 36;
(vi) impairment losses reversed in profit or loss in accordance with IAS 36;
(vii) depreciation; and Paragraphs 74A-76: Entirely excluded in IFRS 19
(viii) other changes
Paragraphs 78-79: Entirely excluded in IFRS 19
Paragraph 201: An entity shall also disclose:
(a) the existence and amounts of restrictions on title, and property, plant and equipment pledged as security for liabilities; and
(b) the amount of contractual commitments for the acquisition of property, plant and equipment.

Paragraph 202: If items of property, plant and equipment are stated at revalued amounts, an entity shall disclose, in addition to the disclosures
required by paragraphs 95 97:
(a) the effective date of the revaluation;
(b) whether an independent valuer was involved;
(c) for each revalued class of property, plant and equipment, the carrying amount that would have been recognised had the assets been carried
under the cost model; and
(d) the revaluation surplus, indicating the change for the period and any restrictions on the distribution of the balance to shareholders.

135
Contact

For further information about how BDO can assist you and your organisation, please NORTH AMERICA & CARIBBEAN
get in touch with one of our key contacts listed below.
Alternatively, please visit www.bdo.global where you can find full lists of regional and Craig Cross Canada ccross@bdo.ca
country contacts. Wendy Hambleton USA whambleton@bdo.com

LATIN AMERICA
EUROPE

Evy Borry Belgium evy.borry@bdo.be Marcello Canetti Argentina mcanetti@bdoargentina.com

Anne Catherine Farlay France annecatherine.farlay@bdo.fr Luis Fernando Gomez

Gonzalez Colombia lgomezg@bdo.com.co
Jens Freiberg Germany jens.freiberg@bdo.de
Ernesto Bartesaghi Uruguay ebartesaghi@bdo.com.uy
Ehud Greenberg Israel ehudg@bdo.co.il
MIDDLE EAST
Stefano Bianchi Italy stefano.bianchi@bdo.it
Alon Levy Netherlands alon.levy@bdo.nl Ayez Qureshi Bahrain Ayez.qureshi@bdo.bh
Nina Servold Oppi Norway nina.servold.oppi@bdo.no
Antoine Gholam Lebanon agholam@bdo-lb.com
David Cabaleiro Spain david.cabaleiro@bdo.es
René Füglister Switzerland rene.fueglister@bdo.ch ASIA PACIFIC

Moses Serfaty United Kingdom moses.serfaty@bdo.co.uk

Aletta Boshoff Australia aletta.boshoff@bdo.com.au
Hu Jian Fei China hu.jianfei@bdo.com.cn
Fanny Hsiang Hong Kong fannyhsiang@bdo.com.hk
Siddharth Iyer India SiddharthIyer@mska.in
SUB SAHARAN AFRICA
Khoon Yeow Tan Malaysia tanky@bdo.my
Theunis Schoeman South Africa tschoeman@bdo.co.za Ng Kian Hui Singapore kianhui@bdo.com.sg

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