Settlement options FOREIGN EXCHANGE
15.2.1 Derecognition
Where an entity is required by IAS 39 to continue to recognise a financial asset, even though it has entered into some arrangement to transfer it, a number of disclosures should be made for each class of financial asset so recognised. This information should include: the nature of the assets, and the risks and rewards of ownership that the entity continues to be exposed to; if the whole of the asset continues to be recognised by the entity, its carrying amount along with that of the associated liability; and where part of the asset continues to be recognised, the total amount of the asset originally recognised, the amount recognised and the carrying amount of the associated liability.15.2.2 Collateral
Where financial assets have been pledged as collateral for liabilities, or contingent liabilities, the carrying amount of the financial assets should be disclosed with any significant terms and conditions attaching to them.15.2.3 Reclassification
Where a financial asset has been reclassified from fair value to one measured at cost or amortised cost or vice versa, an entity is required to disclose the amount that has been reclassified and the reason for the reclassification.15.2.4 Defaults and breaches
Where an entity has defaulted on any amounts in relation to financial instruments for which the lender can demand repayment, the entity should disclose details of those breaches. This information should include disclosure of the amounts recognised in the statement of financial position in respect of such defaulted amounts and whether or not the default has been remedied or renegotiated. [IFRS 7.18]15.2.5 Allowance account for credit losses
If a financial asset has become impaired by credit losses and the impairment has not been deducted from the carrying amount of the financial asset, the entity is required to provide a reconciliation of movements in the separate account where the credit losses were recorded. Chapter 20 – Financial Instruments Page 29015.2.6 Multiple embedded derivatives
If an entity has issued a compound financial instrument i.e. where there is both a liability and an equity component that contains multiple embedded derivatives that are interdependent, then it should disclose the existence of such instruments.15.3 Statement of comprehensive income
The disclosure requirements in relation to interest income and expense, gains and losses recognised on available-for-sale financial assets and impairment losses recognised on financial assets have been included in IFRS 7. These disclosures were previously included in IAS 32. IFRS 7 disclosures have been extended to show the net gains or losses on financial assets and liabilities by class, to complement the disclosures made in the statement of financial position regarding movements during the period. An entity should disclose the net gains or losses on the movement in financial assets and liabilities measured at fair value through profit or loss. These disclosures should be shown separately for financial instruments designated as such on their initial recognition and those that are classified as held for sale. Information should be disclosed to identify the total interest income and total interest expense for financial assets and liabilities that are not measured at fair value though profit or loss, amounts recognised in other comprehensive income for available-for-sale financial assets and the amount of interest income accrued on impaired financial assets. Any impairment losses recognised in profit or loss for each class of financial asset should be separately identified.15.4 Other disclosures
An entity should fully explain the accounting policies that have been applied in recognising and measuring its financial instruments, including the entity’s policy on the use of hedge accounting and the techniques used for measuring fair value. The specific disclosure requirements that were originally set out in IAS 32 in relation to hedge accounting have been expanded to ensure that a full assessment can be made of the risks associated with such activities. The expanded disclosures specifically in relation to cash flow hedges include the periods over which the cash flows are expected to arise and consequently when they will impact profit or loss. A description of any transaction that is no longer being hedged and any ineffective proportion of a hedge that has been recognised as part of profit or loss for the period should also be disclosed. For fair value hedges, an entity should disclose both the gains and losses made on the hedging instrument and those on the hedged item itself. The disclosures made by an entity should meet the overall objective of providing more transparent information about the risks that exist in relation to its financial instruments and how it controls those risks. Although an entity should make sufficient disclosures to meet this overall objective, the IASB has included specific disclosures that are required to be made by an entity in relation to fair value.15.4.1 Fair value
An entity should provide information on the fair value, at the end of each reporting period, of financial assets and financial liabilities analysed over their different classes. This information is required to be presented in a way that permits a comparison to be made between the fair values and the carrying amounts recognised in the statement of financial position.Parts
» The International Accounting Standards Committee IASC
» The International Organisation of Securities Commissions IOSCO
» The Financial Accounting Standards Board FASB
» The Committee of European Securities Regulators CESR
» The IASB FINANCIAL REPORTING CONTEXT
» The Standards Advisory Council SAC
» The International Financial Reporting Interpretations Committee IFRIC
» The standard-setting process THE IFRS FRAMEWORK
» Preface to International Financial Reporting Standards
» Definition THE IFRS FRAMEWORK
» Financial statements THE IFRS FRAMEWORK
» Economic decisions Users and their information needs
» Accountability of management THE IFRS FRAMEWORK
» Financial position, performance and changes in financial position
» Underlying assumptions THE IFRS FRAMEWORK
» Understandability Qualitative characteristics of financial statements
» Relevance Qualitative characteristics of financial statements
» Reliability Qualitative characteristics of financial statements
» Definitions of elements Elements of financial statements
» Recognition of elements in financial statements Measurement in financial statements
» The statement of financial position
» The statement of comprehensive income
» Currentnon-current distinction PRESENTATION OF FINANCIAL STATEMENTS
» Notes PRESENTATION OF FINANCIAL STATEMENTS
» Fair presentation and compliance with IFRS
» Comparative information Other considerations
» Additional disclosures Other considerations
» ACCOUNTING POLICIES IFRSs) Learning Materials
» Servicing fees included in the price of the product
» Cost of inventories INVENTORIES
» Cost formulae Net realisable value NRV
» Initial recognition and elements of cost
» Self-constructed assets PROPERTY, PLANT AND EQUIPMENT
» Ceasing recognition of costs
» Subsequent expenditure PROPERTY, PLANT AND EQUIPMENT
» Depreciation and revalued assets
» Which costs should be capitalised?
» When should capitalisation of borrowing costs commence?
» Suspension of capitalisation BORROWING COSTS
» Ceasing capitalisation BORROWING COSTS
» Non-monetary government grants GOVERNMENT GRANTS
» Repayment of government grants
» No specific relation to operating activities
» Proposed revision of standard
» Changes of plan NON-CURRENT ASSETS HELD FOR SALE
» Nature of investment properties Scope
» Initial recognition INVESTMENT PROPERTY
» Measurement after recognition INVESTMENT PROPERTY
» Applicable to both the fair value model and the cost model
» The cost model INVESTMENT PROPERTY
» Separately acquired intangible assets
» Exchanges of assets INTANGIBLES
» Intangible assets acquired as part of a business combination
» The research phase INTANGIBLES
» The development phase INTANGIBLES
» The cost of internally generated intangible assets
» Stage 1 – Indicators of impairment
» Stage 2 – Measuring recoverable amount
» Stage 3 – Recognising an impairment loss
» Future operating losses Provisions
» Contingent liabilities and contingent assets
» Best estimate PROVISIONS AND CONTINGENCIES
» Present value PROVISIONS AND CONTINGENCIES
» Other measurement points PROVISIONS AND CONTINGENCIES
» Reimbursements PROVISIONS AND CONTINGENCIES
» Decommissioning, restoration and environmental funds
» Waste management costs PROVISIONS AND CONTINGENCIES
» Carrying amount versus tax base Calculate the temporary difference
» Determining deferred tax TAXATION
» Revaluations Recognition criteria: further issues
» The expected manner of recovery of an asset
» Annual review Recognition criteria: further issues
» Discounting Recognition criteria: further issues
» Temporary differences and investments
» Other related disclosures TAXATION
» Risks and rewards Situations indicating the existence of a finance lease
» Initial recognition Finance lease recognition
» Depreciation Finance charge Finance lease recognition
» Actuarial method Methods of allocating finance charges
» Disclosures for finance leases
» Operating lease incentives Accounting treatment of operating leases
» Disclosures for operating leases
» Disclosure by a lessor for finance lease arrangements
» Disclosure by a lessor for operating lease arrangements
» Operating lease incentives Operating leases
» An overview All short-term benefits
» Short-term compensated absences Profit-sharing and bonus plans
» Recognition and measurement Disclosure
» The discount rate Movements during the period
» Variations in actuarial assumptions
» Past service costs Sundry considerations
» Curtailments and settlements Sundry considerations
» Minimum funding requirements and the limit on a defined benefit asset
» Disclosure and presentation of defined benefit plans
» Share-based payment transactions – cash-settled or equity-settled
» Group and treasury share transactions
» Objectives, scope and definitions of IFRS 2 Disclosure requirements
» EVENTS AFTER THE REPORTING PERIOD
» The functional currency FOREIGN EXCHANGE
» The presentation currency FOREIGN EXCHANGE
» Monetary and non-monetary items
» Summary of the approach of IAS 21
» Initial recognition FOREIGN EXCHANGE
» Reporting at the ends of subsequent reporting periods
» Transactions settled within the period
» Transaction balance is outstanding at the end of the reporting period
» Net Investment in a Foreign Operation
» Change in Functional Currency
» Translation of a foreign operation
» Disposal of a foreign operation
» Settlement options FOREIGN EXCHANGE
» Compound financial instruments FOREIGN EXCHANGE
» Financial assetliability at fair value through profit or loss
» Held-to-maturity investments Loans and receivables
» Available-for-sale financial assets Financial assets
» IFRIC 2 Members’ shares in co-operative entities and similar instruments
» Derecognition in its entirety Continuing involvement after a transfer
» Financial liabilities FOREIGN EXCHANGE
» Qualifying for hedge accounting
» Fair value hedge Cash flow hedge
» Hedge of a net investment in a foreign operation
» Objectives and Scope of IFRS 7
» Fair value Other disclosures
» Statement of comprehensive income Nature and extent of risks
» Objective and scope What is cash?
» The direct method FOREIGN EXCHANGE
» Indirect method FOREIGN EXCHANGE
» Non-cash transactions FOREIGN EXCHANGE
» Additional disclosures FOREIGN EXCHANGE
» Identifying segments FOREIGN EXCHANGE
» Reportable segments FOREIGN EXCHANGE
» Reporting formats FOREIGN EXCHANGE
» Discontinued operations Disclosure Prior periods
» Contents Form FOREIGN EXCHANGE
» Selected explanatory notes FOREIGN EXCHANGE
» Impairment in the interim period
» Calculating earnings FOREIGN EXCHANGE
» Calculating the weighted average number of ordinary shares
» Calculation of earnings Calculation of the weighted average number of shares
» Related parties FOREIGN EXCHANGE
» Contract revenue FOREIGN EXCHANGE
» Contract costs FOREIGN EXCHANGE
» Stage of completion FOREIGN EXCHANGE
» Reliable measurement FOREIGN EXCHANGE
» Loss making contracts FOREIGN EXCHANGE
» Key Concepts FOREIGN EXCHANGE
» Valuation of assets Disclosure
» What is an insurance contract?
» Scope of consolidated financial statements
» Special purpose entities FOREIGN EXCHANGE
» Basic approach FOREIGN EXCHANGE
» Reporting dates and consistent accounting policies
» The statement of financial position The statement of comprehensive income
» Gain or loss on net monetary position
» Introduction Statement of cash flows
» Initial application of IAS 29
» Identifying a business combination
» Acquisition method of accounting
» General principle FOREIGN EXCHANGE
» Specific issues FOREIGN EXCHANGE
» A business combination achieved in stages
» Subsequent accounting for contingent consideration
» Classifying and measuring the identifiable net assets acquired
» Initial recognition and subsequent adjustments
» Subsequent measurement FOREIGN EXCHANGE
» Recognition and measurement of goodwill
» Gain on bargain purchase Adjustments to provisional values
» Impairment losses FOREIGN EXCHANGE
» Jointly controlled operations FOREIGN EXCHANGE
» Proportionate consolidation Equity method
» Jointly controlled assets Investors separate financial statements
» Transactions between a venturer and a joint venture
» Operators of joint ventures Investors of a joint venture
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