Physical assets, 222 onerous contracts, 320–323

14 Physical assets, 222 onerous contracts, 320–323

recent amendments (effective

possible obligation, 323

Piecemeal acquisition, for

proposed amendment to, 7

business combinations, 406–

reporting period, 16

provisions, 318–323

scope of standard, 13

recognition of provisions, 318–

Plan assets, 137

statement of changes in equity,

Poland, IFRS adoption by, 1

19 restructuring provisions, 321–

Portugal, IFRS adoption by, 1

Present value of a defined

Possible assets, see Contingent

benefit obligation, 137

scope of standard, 317

Prudence, 10 Possible obligation, 323

assets

Previous GAAP, 364

Published price quotation, 257– Potential ordinary shares, 286,

Prior-period errors:

correction of, 57

Purchase method, 402 Prada, Michel, 362

defined, 51

Puttable instruments, 25 Prepaid expenses, 223

Projected unit credit method,

Presentation: Q

Property, Plant, and Equipment

consistency of, 10

(IAS 16), 3, 108–115

Qatar, IFRS adoption by, 1

of consolidated financial

definitions, 108

Qualifying assets, 170–172

statements, 193

depreciation, 111–112

of discontinued operations,

derecognition, 112

Real Estate Sales (Draft IFRIC

disclosure, 113–114

of earnings per share, 286–287,

extracts from published

D21), 7

financial statements, 114–115

Reassessment of Embedded

fair, 14

IFRIC interpretation 1, 112–

Derivatives (IFRIC 9), 6, 270

by first-time IFRS adopters,

Reclassifications, on balance

recognition of assets, 108–111

sheet, 350

of grants related to assets, 155

scope of standard, 108

Recognition. See also Financial

of grants related to income,

Proportionate consolidation

Instruments: Recognition and

method, 217

Measurement (IAS 39)

IAS 1, Presentation of

of actuarial gains and losses, Financial Statements, 13–25

Proposed new IFRS, 6

Prospective effectiveness

IAS 32, Financial Instruments:

of agricultural activity, 353 Presentation, 221–233

(hedges), 277

Provisions, 318–323 of borrowing costs, 172–173 Presentation currency:

changes in and use of, 320

defined, 159

defined, 317

Index 473

of construction contract

measurement of revenue, 130– revenue and expenses, 69–70,

for first-time IFRS adopters,

rendering of services, 133–134 of deferred tax assets, 387

72 Research:

sale of goods, 131–133 of dividend revenue, 134

defined, 330

scope of standard, 129 of employee benefits, 140

expenditures for, 333

Residual value (of an asset):

Revenue—Barter Transactions

of exchange differences, 160–

defined, 108, 331

Involving Advertising Services

intangible assets, 338

(SIC 31), 4

of expenses, 335–336

Restatement approach, 6, 213

Rights to Interests Arising from

of exploration and evaluation

Restoration:

Decommissioning, Restoration

of mineral resources, 441

IFRIC 1, Changes in Existing

and Environmental

of financial assets or liabilities,

Decommissioning,

Rehabilitation Funds (IFRIC

Restoration and Similar

of government grants, 152–155

Liabilities, 6

Risks:

of impairment losses, 308

from financial instruments, of interest income on impaired

IFRIC 5, Rights to Interests

453–455 financial assets, 264

Arising from

in insurance contracts, 423, 424 of interest revenue, 134

Decommissioning,

Restoration and

Romania, IFRS adoption by, 1

of inventory expense, 32

Environmental Rehabilitation

Royalty revenue, recognition of,

of investment properties, 346

Funds, 6

measurement of intangible

Restructuring:

Russia, IFRS adoption by, 1

assets after, 336–337

defined, 318

of property, plant, and

of provisions, 321–322

equipment, 108–110

Retirement, of intangible assets,

SAC (Standards Advisory

of provisions, 318–319

Council), 6

of revenue from rendering of

Retirement benefit plans. See

Sale and leaseback

services, 133–134

also Defined benefit plans;

transactions, 123–124

of royalty revenue, 134

Defined contribution plans

Sale of goods revenue,

of sale of goods revenue, 131–

defined, 187

recognition of, 131–133

IAS 19, Employee Benefits,

Scope of IFRS 2 (IFRIC 8), 6

of share-based payments, 382–

Securities and Exchange

IAS 26, Accounting and

Commission (SEC), 2

Segments: Recoverable amount of an asset

of tax liabilities/assets, 83–84

Reporting by Retirement

Benefit Plans, 186–191

operating, 103

or a cash-generating unit:

reportable, 95–97, 103 defined, 304

Retrospective changes in

accounting policies, 53–55

Segmenting construction

contracts, 67–68 Related parties, 177

determination of, 305–306

Retrospective effectiveness

Segment Reporting (IAS 14), 3, Related-Party Disclosures (IAS

(hedges), 277

Return on plan assets, 137

definitions, 94 definitions, 177–180

Revaluation, as deemed cost,

disclosure, 100–101 disclosures, 181–182

extracts from published explanation and elaboration of

Revaluation model (assets), 111,

financial statements, 101–102 definitions, 178–180

identifying business and extracts from published

Revenue:

geographical segments, 94–95 financial statements, 183–184

deferred, 223

IFRS 8 vs., 104 proposed amendment to, 7

defined, 130

reportable segments, 95–97 scope exclusions, 181

gains vs., 129

segment information, 97–100 scope of standard, 176–177

recognition for construction

Serbia, IFRS adoption by, 1 Related-party transactions, 177,

contracts, 69–70

Services, recognition of revenue 180

segment, 98

from, 133–134 Relevance of financial

Revenue (IAS 18), 3, 129–135

Service Concession statements, 9

definitions, 130

Arrangements (IFRIC 12), 6, Reliability of financial

disclosures, 134

extracts from published

Service conditions, for share- Reportable segments, 95–97,

statements, 9–10

financial statements, 135

based payments, 391 103

identification of a transaction,

Service providers, inventories Reporting date, 364

IFRIC 13 customer loyalty

of, 29

Reporting period:

programs, 134

Settlements, 142

for financial statements, 16

interest, royalties, and

Shadow accounting, 423

dividends, 134

474

Index

Share-based payment:

Standards Advisory Council

Treasury stock method, 291

defined, 382

(SAC), 6

Trinidad and Tobago, IFRS

adoption by, 1 Share-Based Payment (IFRS 2),

tax relief for, 84

Standing Interpretations

Committee (SIC), 3, 4

True and fair override, 15

5, 382–398

Statement of changes in equity,

Trustees of IASC Foundation, 5

cash-settled transactions, 384–

19, 24, 300

Turkey, IFRS adoption by, 1

385

Statement of comprehensive

deferred tax implications, 387

income, 24

definitions, 382

Statement of financial position,

Ukraine, IFRS adoption by, 1

disclosure, 388–391

24 Understandability of financial

equity-settled transactions,

Step acquisitions, 410

United Arab Emirates, IFRS

extracts from published

defined, 193

adoption by, 1

financial statements, 392–398

disposal of, 42

United Kingdom, IFRS

IFRIC 8, Scope of IFRS 2, 6

of first-time IFRS adopters,

adoption by, 1

IFRIC 11, IFRS 2, Group and

369

United States, local accounting

Treasury Share Transactions,

Swaps, on cash flow statement,

standards in, 2

6, 386–387

42 Uruguay, IFRS adoption by, 1

proposed amendment to, 7, 75

Sweden, IFRS adoption by, 1

Useful life:

recent IFRS 2 amendments, defined, 108, 331 391–392

and depreciation, 111–112 recognition, 382–383

of intangible assets, 337–338 transactions that can be settled

Tajikistan, IFRS adoption by, 1

Tanzania, IFRS adoption by, 1

US Generally Accepted

Accounting Principles (US Short-term

for shares or cash, 385–386

Taxes:

GAAP), 2 receivables/payables, 252

income, 82. See also Income

Taxes (IAS 12); Income

and adoption of IFRS, 362

SIC, see Standing

Taxes—Changes in the Tax

comparing IASB standards to,

52

Interpretations Committee

Status of an Entity or Its

Significant influence, 202–203

difference between IFRS and, defined, 177, 202

Shareholders (SIC 25);

Income Taxes—Recovery of

105

loss of, 198, 204

V Singapore:

Revalued Nondepreciable

Assets (SIC 21)

IFRS adoption by, 1

and restatement of financial

Valuation:

national standards of, 363

statements, 212–213

of inventory, 28

Slovakia, IFRS adoption by, 1

Taxable temporary differences,

techniques for, 258

Slovenia, IFRS adoption by, 1

77 Value-in-use, 304, 306 Small and Medium-Sized

Variations: Entities (proposed IFRS), 6

Tax base, 77, 78

Temporary differences:

in construction contracts, 68,

69

South Africa, IFRS adoption

from adjustments on

South Korea, IFRS adoption

Venezuela, IFRS adoption by, 1 by, 1

from consolidated financial

Venturers, 215 Spain, IFRS adoption by, 1

statements, 80–81

Vested benefits, 187 Special-purpose entities (SPEs),

deductible, 77, 82

and deferred taxes, 79

Vesting conditions, for share-

based payments, 391 Split accounting, 226–228

4, 197, 247

defined, 77

W Spot rate:

not recognized for deferred tax,

81–82

Warranty obligations, 223

defined, 159

taxable, 77

recording at, 160

Theoretical ex-rights fair value,

Web site development costs, 4,

336

Sri Lanka, IFRS adoption by, 1

289

Stable platform of Standards, 5

Weighted-average cost method, Stage of completion, for

Transaction costs, 251

Transfers of financial assets,

39–31

construction contracts, 70

244–246, 348–349