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