Split accounting is required for compound financial instruments (such as convertible securities). IAS 39 establishes conditions for determining when control over a financial asset or liability has been transferred to another party. Nature of relationship if parent does not own more than 50% of the voting power of a consolidated subsidiary. 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. forests and similar regenerative natural resources (see HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=986" IAS 41: Agriculture); and mineral rights, the exploration for and development of minerals, oil, natural gas and similar non-regenerative natural resources (see project on Extractive Industries). It includes accounting standards either developed or adopted by the International Accounting Standards Board (IASB), the standard-setting body of the IFRS Foundation. The frequency of an enterpriseVs reporting - annual, half-yearly, or quarterly - does not affect the measurement of its annual results. Classification reflects substance, not form. Required disclosures include: Revenue recognition accounting policies. 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. Assets and liabilities of the acquired company are included in the consolidated financial statements at fair value (acquirerVs purchase price). The statement shows both the recognised gains and losses that are not reported in the income statement and owners' investments and withdrawals of capital and other movements in retained earnings and equity capital. Furthermore, Financial assets carried at a value in excess of fair value. Acquisition (Purchase Method of Accounting) Definition: A business combination in which one of the enterprises (the acquirer) obtains control over the net assets and operations of another enterprises (the acquiree) in exchange for the transfer of assets, incurrence of a liability, or issue of equity. No substantive changes were made to the original approved text.The following SIC Interpretation relates to IAS 29: HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2034" SIC 19: Reporting Currency - Measurement and Presentation of Financial Statements Under IAS 21 and IAS 29. IAS 35 is a presentation and disclosure Standard. Non-deductible goodwill: no deferred tax. However, a hedge of an unrecognised firm commitment to buy or sell an asset at a fixed price in the enterprise’s reporting currency is accounted for as a cash flow hedge Same... ...except that a hedge of an unrecognised firm commitment to buy or sell an asset at a fixed price in the enterprise’s reporting currency is accounted for as a fair value hedge. e ¨ Ô 8 ¦ ü 7 FASB standard is silent as to whether or when such "tainting" is ever cured. The revised text (IAS 31 (revised 1998)) became effective for annual financial statements covering periods beginning on or after 1 July 1999.In December 1998, certain paragraphs were amended to replace references to IAS 25, Accounting for Investments, by references to 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.In March 1999, amendments were made to render IAS 31 consistent with the terminology in 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.In October 2000, the Standard was amended to ensure consistency with related International Accounting Standards with respect to terminology in 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.One SIC Interpretation relates to IAS 31: HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2028" SIC 13: Jointly Controlled Entities - Non-Monetary Contributions by Venturers. Prior financial statements are restated as if the two companies had always been combined. Revaluations should be credited to equity (revaluation surplus) unless reversing a previous charge to income. If settlement date accounting is used for purchases, IAS 39 requires recognition of certain value changes between trade and settlement dates so that the income statement effects are the same for all enterprises. All derivative assets and derivative liabilities, unless they are linked to and must be settled by an unquoted equity whose fair value cannot be measured reliably FASB does not require fair value for any unquoted equity security but their standard does not make an exception from fair value for a derivative that is indexed to an unquoted equity whose fair value cannot be measured reliably Certain derivatives that are embedded in non-derivative instruments Same ...At Cost: ...At Cost: Originated loans and receivables Same Enterprise does not have to demonstrate intent and ability to hold to maturity for originated loans and receivables Same Certain other fixed-maturity investments that the enterprise intends and has the ability to hold to maturity Same Strict tests for held-to-maturity Same An intended or actual sale of a held-to-maturity security due to a non-recurring and not reasonably anticipated circumstance beyond the enterprise's control does not call into question the enterprise's ability to hold its remaining portfolio to maturity. 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