Principles for recognising and reversing impairment losses for a cash-generating unit are the same as those for an individual asset. Such costs can be included in or excluded in initial measurement of financial instruments. Never construct segments solely for external reporting purposes. IAS 33: Earnings per ShareIAS 33, Earnings per Share, was approved by the IASC Board in January 1997 and became effective for annual financial statements covering periods beginning on or after 1 January 1998.In 1999, the Standard was amended to replace references to IAS 10, Contingencies and Events Occurring After the Balance Sheet Date, by references to HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=953" IAS 10: Events After the Balance Sheet Date.The following SIC Interpretation relates to IAS 33: HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2039" SIC 24: Earnings Per Share - Financial Instruments and Other Contracts that May Be Settled in Shares. All IAS 39 Implementation Guidance Committee Q&As issued in final are included in the Bound Volume International Accounting Standards 2002. IAS 23: Borrowing CostsIAS 23, Borrowing Costs, became effective for annual financial statements covering periods beginning on or after 1 January 1995.One SIC Interpretation relates to IAS 23: HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2018" SIC 2: Consistency - Capitalisation of Borrowing Costs. If funds are borrowed generally, then a capitalisation rate should be used based on the weighted average of borrowing costs for general borrowings outstanding during the period. Gross amount due from customers under the contract(s). Various formats are allowed: The statement shows: (a) each item of income and expense, gain or loss, which, as required by other IASC Standards, is recognised directly in equity, and the total of these items (examples include property revaluations ( HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=959" IAS 16: Property, Plant and Equipment), certain foreign currency translation gains and losses ( HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=965" IAS 21: The Effects of Changes in Foreign Exchange Rates), and changes in fair values of financial instruments ( HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=983" IAS 39: Financial Instruments: Recognition and Measurement)); and (b) net profit or loss for the period, but no total of (a) and (b). « CURRENT EDITION. IAS 17 (revised) requires enhanced disclosures by lessors, such as disclosure about future minimum rentals and amounts of contingent rentals included in net profit or loss. Enterprises are required to apply the same accounting policies in their interim financial reports as in their latest annual financial statements. The following unofficial summaries are, by their nature, incomplete. IAS 41 is operative for annual financial statements covering periods beginning on or after 1 January 2003.The following SIC Interpretations relate to IAS 16: HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2029" SIC 14: Property, Plant and Equipment - Compensation for the Impairment or Loss of Items; and HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2038" SIC 23: Property, Plant and Equipment - Major Inspection or Overhaul Costs. IAS 40 is operative for annual financial statements covering periods beginning on or after 1 January 2001.In January 2001, the scope of IAS 16 was amended by HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=986" IAS 41: Agriculture. Value in use is calculated as the present value of estimated future cash flows. "If converted method" to compute dilution from convertibles. A succinct, yet highly informative guide to IPSAS and their application. Summary of IAS 12 Accrue deferred tax liability for nearly all taxable temporary differences. Specific minimum line items for assets and liabilities are prescribed. IAS 1, “Presentation of Financial Statements,” was amended in 2003 and defines IFRS as standards and interpretations adopted by the IASB. The objective of the four financial instruments standards (IAS 32, IAS 39, IFRS 9 and IFRS 7) is to establish requirements for all aspects of accounting for financial instruments, including distinguishing debt from equity, balance sheet offsetting, recognition, … IASC: Hedge Accounting FASB: Hedge Accounting Hedge accounting is permitted in certain circumstances, provided that the hedging relationship is clearly defined, measurable, and actually effective. Jointly controlled entities. IAS 22 requires negative goodwill to be presented as a deduction from (positive) goodwill. Lessee should expense operating lease payments. International Accounting Standards (IASs) were issued by the IASC from 1973 to 2000. l Revenue should be recognised when: significant risks and rewards of ownership are transferred to the buyer; managerial involvement and control have passed; the amount of revenue can be measured reliably; it is probable that economic benefits will flow to the enterprise; and the costs of the transaction (including future costs) can be measured reliably. Most notable among these countries are FASB definition states that a derivative is a financial instrument or other contract. Measure plan assets and reimbursement rights at fair value. To achieve that objective, measurements for interim reporting purposes are made on a year-to-date basis. The effect of acquisitions and disposals of subsidiaries during the period. The main difference from the treatment for revaluations of property, plant and equipment under IAS 16 is that revaluations for intangible assets are permitted only if fair value can be determined by reference to an active market. Present reimbursement rights as a separate asset. For example, such provisions are limited to costs of restructuring the operations of the acquiree, not those of the acquirer. The depreciation method should reflect the pattern in which the asset's economic benefits are consumed by the enterprise. Subsequently, that amount is included in net profit or loss in the same period or periods during which the hedged item affects net profit or loss (for example, through cost of sales, depreciation, or amortisation). However, some development expenditure may result in the recognition of an intangible asset (for example, some internally developed computer software); in the case of a business combination that is an acquisition, IAS 38 builds on HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=966" IAS 22: Business Combinations, to emphasise that if an intangible item does not meet both the definition and the criteria for the recognition for an intangible asset, the expenditure for this item (included in the cost of acquisition) should form part of the amount attributed to goodwill at the date of acquisition. Summaries of International Accounting Standards. Operating: May be presented using either the direct or indirect methods. Depreciation: Long-lived assets other than land are depreciated on a systematic basis over their useful lives. Summary of IAS 38 IAS 38 applies to all intangible assets that are not specifically dealt with in other International Accounting Standards. particular types of transactions and other events should be reflected in If specific cost is not determinable, the benchmark treatment is to use either the first in, first out (FIFO) or weighted average cost formulas. The changes to IAS 32 become effective when an enterprise applies IAS 39 for the first time.The following SIC Interpretations relate to IAS 32: HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2020" SIC 5: Classification of Financial Instruments - Contingent Settlement Provisions; HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2031" SIC 16: Share Capital - Reacquired Own Equity Instruments (Treasury Shares); and HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2032" SIC 17: Equity - Costs of an Equity Transaction. IAS 39 FASB STANDARDSEspecially 114, 115, 125, 133 IASC: Scope FASB: Scope All enterprises Same Covers recognition, measurement, derecognition, and hedge accounting Same IASC: Definitions FASB: Definitions A financial instrument is any contract that gives rise to both a financial asset of one enterprise and a financial liability or equity instrument of another enterprise. The portion of the Basis for Conclusions that refers to the revisions made to IAS 22 in 1998 is available in an Adobe Acrobat document. Current and deferred tax assets and liabilities are measured using the tax rate applicable to undistributed profits. Nature and amount of transactions with related parties, grouped as appropriate. In April 2001, the IASB adopted all international accounting standards issued by the IASC and announced that its accounting standards would be called international financial reporting standards (IFRS). The carrying amount of an equity-method investment should be reduced to recognise non-temporary impairment. Required disclosures include: Reconciliation of movements. Interim financial statements, complete or condensed, must cover the following periods: a balance sheet at the end of the current interim period, and comparative as of the end of the most recent full financial year; income statements for the current interim period and cumulatively for the current financial year to date, with comparative statements for the comparable interim periods of the immediately preceding financial year; a statement of changes in equity cumulatively for the current financial year to date and comparative for the same year-to-date period of the prior year; and a cash flow statement cumulatively for the current financial year to date and comparative for the same year-to-date period of the prior financial year. International accounting standards give companies a common financial language and understanding, making it easier for them to do business together. The discount rate should be a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset; an impairment loss should be recognised as an expense in the income statement for assets carried at cost and treated as a revaluation decrease for assets carried at revalued amount; an impairment loss should be reversed (and income recognised) when there has been a change in the estimates used to determine an assetVs recoverable amount since the last impairment loss was recognised; the recoverable amount of an asset should be estimated whenever there is an indication that the asset may be impaired. It explains changes in cash and cash equivalents during a period. It does not establish any new principles for deciding when and how to recognise and measure the income, expenses, cash flows, and changes in assets and liabilities relating to a discontinuing operation. Summary of IAS 39 Under IAS 39, all financial assets and financial liabilities are recognised on the balance sheet, including all derivatives. Many countries already In addition to extensive restructuring changes, the Code includes substantive revisions, including to the conceptual framework. IASB, the Board of the International Active markets are expected to be rare for intangible assets; intangible assets should be amortised over the best estimate of their useful life. FASB requires fair value measurement for all derivatives, including those linked to unquoted equity instruments if they are to be settled in cash. In such a circumstance, financial statements should be presented in a measuring unit that is current at the balance sheet date. IAS 12: Income TaxesIAS 12 (revised 1996), Income Taxes, became effective for annual financial statements covering periods beginning on or after 1 January 1998.IAS 12 was amended in May 1999 by HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=953" IAS 10: Events After the Balance Sheet Date. About the International Accounting Standards Board (Board) The Board is an independent group of experts with an appropriate mix of recent practical experience in setting accounting standards, in preparing, auditing, or using financial reports, and in accounting education. Capitalisation begins when expenditures and borrowing costs are being incurred and construction of the asset is in progress. Summary of IAS 32 Presentation Financial instruments should be classified by issuers into liabilities and equity, which includes splitting compound instruments into these components. Jointly controlled assets. It includes a rebuttable presumption that the useful life of an intangible asset will not exceed 20 years from the date when the asset is available for use. The amended paragraphs become effective when an enterprise applies IAS 39 for the first time.The following SIC Interpretations relate to IAS 28: HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2019" SIC 3: Elimination of Unrealised Profits and Losses on Transactions with Associates; and HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2035" SIC 20: Equity Accounting Method - Recognition of Losses. Investment property is property (land or a building - or part of a building - or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both. An enterprise that chooses the cost model should disclose the fair value of its investment property. The IASB launched the project following questions and doubts about the Standards from regulators of securities, professional accountants and other concerned quarters. FASB requires option (b) for all enterprises. Summary of IAS 8 Separate disclosure of extraordinary items of profit or loss is required on the face of the income statement, after the total of profit or loss from ordinary activities. Summary of IAS 28 An associate is an enterprise, other than a subsidiary or joint venture, over which the investor has significant influence. If goodwill is written down for impairment, the writedown is not reversed. IAS 41: AgricultureIAS 41, Agriculture, becomes effective for financial statements covering periods beginning on or after 1 January 2003. (a) – same (b) – same (c) – FASB definition requires that the terms of the derivative contract require or permit net settlement. IAS 29: Financial Reporting in Hyperinflationary EconomiesIAS 29, Financial Reporting in Hyperinflationary Economies, was approved by the IASC Board in April 1989 and reformatted in 1994. Expected losses should be recognised immediately. An allowed alternative is the last in, first out (LIFO) cost formula. IAS 16: Property, Plant and EquipmentIAS 16, Property, Plant and Equipment, became effective on 1 January 1995.In July 1997, IAS 16 was amended by HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=952" IAS 1: Presentation of Financial Statements.In April and July 1998, various paragraphs of IAS 16 were revised to be consistent with HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=966" IAS 22: Business Combinations, HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=980" IAS 36: Impairment of Assets, and HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=981" IAS 37: Provisions, Contingent Liabilities and Contingent Assets. Code of Ethics for Professional Accountants ( IFAC ) through the International Code of Ethics for Professional Accountants other... 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