# Commission Regulation (EC) No 1725/2003 of 29 September 2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (Text with EEA relevance) (repealed) EU Regulation No 1725/2003 · adopted 29 September 2003 Commission Regulation (EC) No 1725/2003 of 29 September 2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (Text with EEA relevance) (repealed) ## Introductory text Commission Regulation (EC) No 1725/2003 of 29 September 2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (Text with EEA relevance) (repealed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division INTERNATIONAL ACCOUNTING STANDARD 1: Presentation of Financial Statements ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## OBJECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## SCOPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## PURPOSE OF FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## COMPONENTS OF FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: OVERALL CONSIDERATIONS ## Fair Presentation and Compliance with IFRSs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Going Concern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Accrual Basis of Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Consistency of Presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Materiality and Aggregation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Offsetting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Comparative Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STRUCTURE AND CONTENT ## Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Identification of the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Reporting Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Balance Sheet ## Current/Non-current Distinction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Information to be Presented on the Face of the Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Information to be Presented either on the Face of the Balance Sheet or in the Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Income Statement ## Profit or Loss for the Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Information to be Presented on the Face of the Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Information to be Presented either on the Face of the Income Statement or in the Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Statement of Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Notes ## Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Disclosure of Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Key Sources of Estimation Uncertainty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Other Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## EFFECTIVE DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## WITHDRAWAL OF IAS 1 (REVISED 1997) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX A Defined terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . cedant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . deposit component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . direct insurance contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . discretionary participation feature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . financial risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . guaranteed benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . guaranteed element . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . insurance asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . insurance contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . insurance liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . insurance risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . insured event . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . insurer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . liability adequacy test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . policyholder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . reinsurance assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . reinsurance contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . reinsurer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . unbundle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . financial guarantee contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division APPENDIX B: Definition of an insurance contract ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Uncertain future event . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Payments in kind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Distinction between insurance risk and other risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Examples of insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Significant insurance risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Changes in the level of insurance risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division APPENDIX C: Amendments to other IFRSs ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Amendments to IAS 32 and IAS 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Amendments to other IFRSs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendment to IAS 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division APPENDIX A: Application Guidance IAS 32 Financial Instruments: Disclosure and Presentation ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Definitions (paragraphs 11-14) ## Financial Assets and Financial Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Equity Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Derivative Financial Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Contracts to Buy or Sell Non-Financial Items (paragraphs 8-10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Presentation ### Division: Liabilities and Equity (paragraphs 15-27) ## No Contractual Obligation to Deliver Cash or Another Financial Asset (paragraphs 17-20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Settlement in the Entity’s Own Equity Instruments (paragraphs 21-24) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Contingent Settlement Provisions (paragraph 25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Treatment in Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Compound Financial Instruments (paragraphs 28-32) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Treasury Shares (paragraphs 33 and 34) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Interest, Dividends, Losses and Gains (paragraphs 35-41) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Offsetting a Financial Asset and a Financial Liability (paragraphs 42-50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure ## Financial Assets and Financial Liabilities at Fair Value Through Profit or Loss (paragraph 94(f)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX A Application Guidance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Profit or Loss Attributable to the Parent Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Rights Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Control Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Average Market Price of Ordinary Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Options, Warrants and Their Equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Written Put Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Instruments of Subsidiaries, Joint Ventures or Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Participating Equity Instruments and Two-Class Ord . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Partly Paid Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX B Amendments to Other Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: INTERNATIONAL ACCOUNTING STANDARD IAS 34 ## Interim financial reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: INTRODUCTION ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 This Standard: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## OBJECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: SCOPE ## 1 This Standard does not mandate which enterprises should be required to publish interim financial reports, how frequently, or how soon after the end of an interim period. However, governments, securities regulators, stock exchanges, and accountancy bodies often require enterprises whose debt or equity securities are publicly traded to publish interim financial reports. This Standard applies if an enterprise is required or elects to publish an interim financial report in accordance with International Accounting Standards. The International Accounting Standards Committee encourages publicly traded enterprises to provide interim financial reports that conform to the recognition, measurement, and disclosure principles set out in this Standard. Specifically, publicly traded enterprises are encouraged: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: DEFINITIONS ## 4 The following terms are used in this Standard with the meanings specified: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: CONTENT OF AN INTERIM FINANCIAL REPORT ## 5 IAS 1 defines a complete set of financial statements as including the following components: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Minimum components of an interim financial report ## 8 An interim financial report should include, at a minimum, the following components: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Form and content of interim financial statements ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Selected explanatory notes ## 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 16 An enterprise should include the following information, as a minimum, in the notes to its interim financial statements, if material and if not disclosed elsewhere in the interim financial report. The information should normally be reported on a financial year-to-date basis. However, the enterprise should also disclose any events or transactions that are material to an understanding of the current interim period: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 17 Examples of the kinds of disclosures that are required by paragraph 16 are set out below. Individual International Accounting Standards provide guidance regarding disclosures for many of these items: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure of compliance with IAS ## 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Periods for which interim financial statements are required to be presented ## 20 Interim reports should include interim financial statements (condensed or complete) for periods as follows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Materiality ## 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: DISCLOSURE IN ANNUAL FINANCIAL STATEMENTS ## 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: RECOGNITION AND MEASUREMENT ### Division: Same accounting policies as annual ## 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 30 To illustrate: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Revenues received seasonally, cyclically, or occasionally ## 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Costs incurred unevenly during the financial year ## 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Applying the recognition and measurement principles ## 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Use of estimates ## 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: RESTATEMENT OF PREVIOUSLY REPORTED INTERIM PERIODS ## 43 A change in accounting policy, other than one for which the transition is specified by a new International Accounting Standard, should be reflected by: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: EFFECTIVE DATE ## 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX A Defined terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . cash-generating unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . component of an entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . costs to sell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . current asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . discontinued operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . disposal group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . firm purchase commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . highly probable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . non-current asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . probable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . recoverable amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . value in use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX B Application supplement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## EXTENSION OF THE PERIOD REQUIRED TO COMPLETE A SALE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX C Amendments to other IFRSs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division APPENDIX A: Using PresentValue Techniques to Measure Value in Use ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## The Components of a Present Value Measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## General Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Traditional and Expected Cash Flow Approaches to Present Value ## Traditional Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Expected Cash Flow Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Discount Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX B Amendment to IAS 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: INTERNATIONAL ACCOUNTING STANDARD IAS 37 ## Provisions, contingent liabilities and contingent assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: INTRODUCTION ## 1 IAS 37 prescribes the accounting and disclosure for all provisions, contingent liabilities and contingent assets, except: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Provisions ## 2 The Standard defines provisions as liabilities of uncertain timing or amount. A provision should be recognised when, and only when: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 The Standard defines a constructive obligation as an obligation that derives from an enterprise's actions where: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 The Standard requires that an enterprise should, in measuring a provision: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 An enterprise may expect reimbursement of some or all of the expenditure required to settle a provision (for example, through insurance contracts, indemnity clauses or suppliers' warranties). An enterprise should: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Provisions — specific applications ## 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 13 The Standard defines a restructuring as a programme that is planned and controlled by management, and materially changes either: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 14 A provision for restructuring costs is recognised only when the general recognition criteria for provisions are met. In this context, a constructive obligation to restructure arises only when an enterprise: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 15 A management or board decision to restructure does not give rise to a constructive obligation at the balance sheet date unless the enterprise has, before the balance sheet date: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 17 A restructuring provision should include only the direct expenditures arising from the restructuring, which are those that are both: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Contingent liabilities ## 18 The Standard supersedes the parts of IAS 10, contingencies and events occurring after the balance sheet date, that deal with contingencies. The Standard defines a contingent liability as: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Contingent assets ## 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Effective date ## 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## OBJECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: SCOPE ## 1 This Standard should be applied by all enterprises in accounting for provisions, contingent liabilities and contingent assets, except: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 Where another International Accounting Standard deals with a specific type of provision, contingent liability or contingent asset, an enterprise applies that Standard instead of this Standard. For example, certain types of provisions are also addressed in Standards on: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: DEFINITIONS ## 10 The following terms are used in this Standard with the meanings specified: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Provisions and other liabilities ## 11 Provisions can be distinguished from other liabilities such as trade payables and accruals because there is uncertainty about the timing or amount of the future expenditure required in settlement. By contrast: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Relationship between provisions and contingent liabilities ## 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 13 This Standard distinguishes between: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: RECOGNITION ### Division: Provisions ## 14 A provision should be recognised when: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Present obligation ## 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 16 In almost all cases it will be clear whether a past event has given rise to a present obligation. In rare cases, for example in a law suit, it may be disputed either whether certain events have occurred or whether those events result in a present obligation. In such a case, an enterprise determines whether a present obligation exists at the balance sheet date by taking account of all available evidence, including, for example, the opinion of experts. The evidence considered includes any additional evidence provided by events after the balance sheet date. On the basis of such evidence: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Past event ## 17 A past event that leads to a present obligation is called an obligating event. For an event to be an obligating event, it is necessary that the enterprise has no realistic alternative to settling the obligation created by the event. This is the case only: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Probable outflow of resources embodying economic benefits ## 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Reliable estimate of the obligation ## 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Contingent liabilities ## 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Contingent assets ## 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: MEASUREMENT ### Division: Best estimate ## 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Risks and uncertainties ## 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Present value ## 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Future events ## 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Expected disposal of assets ## 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: REIMBURSEMENTS ## 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: CHANGES IN PROVISIONS ## 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: USE OF PROVISIONS ## 61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: APPLICATION OF THE RECOGNITION AND MEASUREMENT RULES ### Division: Future operating losses ## 63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 64 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Onerous contracts ## 66 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 68 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Restructuring ## 70 The following are examples of events that may fall under the definition of restructuring: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 71 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 72 A constructive obligation to restructure arises only when an enterprise: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 73 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 75 A management or board decision to restructure taken before the balance sheet date does not give rise to a constructive obligation at the balance sheet date unless the enterprise has, before the balance sheet date: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 76 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 78 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 79 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 80 A restructuring provision should include only the direct expenditures arising from the restructuring, which are those that are both: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 81 A restructuring provision does not include such costs as: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 82 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 83 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: DISCLOSURE ## 84 For each class of provision, an enterprise should disclose: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 85 An enterprise should disclose the following for each class of provision: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 86 Unless the possibility of any outflow in settlement is remote, an enterprise should disclose for each class of contingent liability at the balance sheet date a brief description of the nature of the contingent liability and, where practicable: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 88 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 89 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 90 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 91 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: TRANSITIONAL PROVISIONS ## 93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: EFFECTIVE DATE ## 95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division APPENDIX A: Application Guidance ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Scope (paragraphs 2-7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Definitions (paragraphs 8-9) ## Effective Interest Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Transaction Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Financial Assets and Financial Liabilities Held for Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Held-to-Maturity Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Loans and Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Embedded Derivatives (paragraphs 10-13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Recognition and Derecognition (paragraphs 14-42) ## Initial Recognition (paragraph 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Derecognition of a Financial Asset (paragraphs 15-37) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Transfers that Qualify for Derecognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Transfers that Do Not Qualify for Derecognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Continuing Involvement in Transferred Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## All Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Regular Way Purchase or Sale of a Financial Asset (paragraph 38) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Derecognition of a Financial Liability (paragraphs 39-42) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Measurement (paragraphs 43-70) ## Initial Measurement of Financial Assets and Financial Liabilities (paragraph 43) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Subsequent Measurement of Financial Assets (paragraphs 45 and 46) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Fair Value Measurement Considerations (paragraphs 48 and 49) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Active Market: Quoted Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## No Active Market: Valuation Technique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## No Active Market: Equity Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Inputs to Valuation Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Gains and Losses (paragraphs 55-57) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Impairment and Uncollectibility of Financial Assets (paragraphs 58-70) ## Financial Assets Carried at Amortised Cost (paragraphs 63-65) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Interest Income After Impairment Recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Hedging (paragraphs 71-102) ### Division: Hedging Instruments (paragraphs 72-77) ## Qualifying Instruments (paragraphs 72 and 73) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Hedged Items (paragraphs 78-84) ## Qualifying Items (paragraphs 78-80) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Designation of Financial Items as Hedged Items (paragraphs 81 and 81A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Designation of Non-Financial Items as Hedged Items (paragraph 82) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Designation of Groups of Items as Hedged Items (paragraphs 83 and 84) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Hedge Accounting (paragraphs 85-102) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Assessing Hedge Effectiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division APPENDIX B: Amendments to Other Pronouncements ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Amendments to IFRS 1 ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Amendments to IAS 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Amendments to IAS 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Amendments to IAS 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Amendments to IAS 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Amendments to IAS 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Amendments to IAS 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Amendments to IAS 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Amendments to SIC 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## AMENDMENTS TO INTERNATIONAL ACCOUNTING STANDARD 39 Financial Instruments: Recognition and Measurement THE FAIR VALUE OPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Definitions of Four Categories of Financial Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## EMBEDDED DERIVATIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 11A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: FAIR VALUE MEASUREMENT CONSIDERATIONS ## 48A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## EFFECTIVE DATE AND TRANSITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 105 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 105A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 105B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 105C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 105D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX A Application Guidance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: DEFINITIONS (paragraphs 8 and 9) ### Division: Designation as at Fair Value through Profit or Loss ## AG4B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## AG4C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Paragraph 9(b)(i): Designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise ## AG4D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## AG4E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## AG4F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## AG4G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Paragraph 9(b)(ii): A group of financial assets, financial liabilities or both is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy ## AG4H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## AG4I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## AG4J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## AG4K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Instruments containing Embedded Derivatives ## AG33A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## AG33B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: INTERNATIONAL ACCOUNTING STANDARD IAS 41 ## Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: INTRODUCTION ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## OBJECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: SCOPE ## 1 This Standard should be applied to account for the following when they relate to agricultural activity: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 This Standard does not apply to: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: DEFINITIONS ### Division: Agriculture-related definitions ## 5 The following terms are used in this Standard with the meanings specified: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 Agricultural activity covers a diverse range of activities; for example, raising livestock, forestry, annual or perennial cropping, cultivating orchards and plantations, floriculture, and aquaculture (including fish farming). Certain common features exist within this diversity: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 Biological transformation results in the following types of outcomes: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: General definitions ## 8 The following terms are used in this Standard with the meanings specified: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: RECOGNITION AND MEASUREMENT ## 10 An enterprise should recognise a biological asset or agricultural produce when, and only when: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 18 If an active market does not exist, an enterprise uses one or more of the following, when available, in determining fair value: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 24 Cost may sometimes approximate fair value, particularly when: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Gains and losses ## 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Inability to measure fair value reliably ## 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: GOVERNMENT GRANTS ## 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: PRESENTATION AND DISCLOSURE ### Division: Presentation ## 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure ### Division: General ## 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 46 If not disclosed elsewhere in information published with the financial statements, an enterprise should describe: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 49 An enterprise should disclose: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 50 An enterprise should present a reconciliation of changes in the carrying amount of biological assets between the beginning and the end of the current period. Comparative information is not required. The reconciliation should include: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Additional disclosures for biological assets where fair value cannot be measured reliably ## 54 If an enterprise measures biological assets at their cost less any accumulated depreciation and any accumulated impairment losses (see paragraph 30) at the end of the period, the enterprise should disclose for such biological assets: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 55 If, during the current period, an enterprise measures biological assets at their cost less any accumulated depreciation and any accumulated impairment losses (see paragraph 30), an enterprise should disclose any gain or loss recognised on disposal of such biological assets and the reconciliation required by paragraph 50 should disclose amounts related to such biological assets separately. In addition, the reconciliation should include the following amounts included in net profit or loss related to those biological assets: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 56 If the fair value of biological assets previously measured at their cost less any accumulated depreciation and any accumulated impairment losses becomes reliably measurable during the current period, an enterprise should disclose for those biological assets: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Government grants ## 57 An enterprise should disclose the following related to agricultural activity covered by this Standard: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: EFFECTIVE DATE AND TRANSITION ## 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-1 ## Consistency — different cost formulas for inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 3 An enterprise should use the same cost formula for all inventories having similar nature and use to the enterprise. For inventories with a different nature or use (for example, certain commodities used in one business segment and the same type of commodities used in another business segment), different cost formulas may be justified. A difference in geographical location of inventories (and in the respective tax rules), by itself, is not sufficient to justify the use of different cost formulas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-2 ## Consistency — capitalisation of borrowing costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 IAS 23.07 and 23.11 allow the choice of either: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 3 Where an enterprise adopts the allowed alternative treatment, that treatment should be applied consistently to all borrowing costs that are directly attributable to the acquisition, construction or production of all qualifying assets of the enterprise. If all the conditions laid down in IAS 23.11 are met, an enterprise should continue to capitalise such borrowing costs even if the carrying amount of the asset exceeds its recoverable amount. However, IAS 23.19 explains that the carrying amount of the asset should be written down to recognise impairment losses in such cases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-3 ## Elimination of unrealised profits and losses on transactions with associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 Unrealised losses should not be eliminated to the extent that the transaction provides evidence of an impairment of the asset transferred. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-6 ## Costs of modifying existing software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 The issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure ## 5 A need for major software modifications may give rise to uncertainties. In accordance with IAS 1.08 (revised 1997), enterprises are encouraged to present, outside the financial statements, information about the principal uncertainties they face (for example, a description of the activities and expenditure both incurred and planned to be incurred in future periods, in respect of significant software modifications). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-7 ## Introduction of the euro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 This means that, in particular: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## IFRS 1 — FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: INTRODUCTION ### Division: Reasons for issuing the IFRS ## IN1 The IFRS replaces SIC-8 First-time Application of IASs as the Primary Basis of Accounting. The Board developed this IFRS to address concerns that: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Main features of the IFRS ## IN2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## IN3 In general, the IFRS requires an entity to comply with each IFRS effective at the reporting date for its first IFRS financial statements. In particular, the IFRS requires an entity to do the following in the opening IFRS balance sheet that it prepares as a starting point for its accounting under IFRSs: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## IN4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## IN5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## IN6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Changes from previous requirements ## IN7 Like SIC-8, the IFRS requires retrospective application in most areas. Unlike SIC-8, the IFRS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: INTERNATIONAL FINANCIAL REPORTING STANDARD 1 ### Division: First-time adoption of International Financial Reporting Standards ### Division: OBJECTIVE ## 1 The objective of this IFRS is to ensure that an entity's first IFRS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: SCOPE ## 2 An entity shall apply this IFRS in: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 An entity's first IFRS financial statements are the first annual financial statements in which the entity adopts IFRSs, by an explicit and unreserved statement in those financial statements of compliance with IFRSs. Financial statements under IFRSs are an entity's first IFRS financial statements if, for example, the entity: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 This IFRS applies when an entity first adopts IFRSs. It does not apply when, for example, an entity: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 This IFRS does not apply to changes in accounting policies made by an entity that already applies IFRSs. Such changes are the subject of: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: RECOGNITION AND MEASUREMENT ### Division: Opening IFRS balance sheet ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Accounting policies ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Example: Consistent application of latest version of IFRSs ## BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPLICATION OF REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 10 Except as described in paragraphs 13 to 34, an entity shall, in its opening IFRS balance sheet: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 12 This IFRS establishes two categories of exceptions to the principle that an entity's opening IFRS balance sheet shall comply with each IFRS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Exemptions from other IFRSs ## 13 An entity may elect to use one or more of the following exemptions: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Business combinations ## 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Fair value or revaluation as deemed cost ## 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 17 A first-time adopter may elect to use a previous GAAP revaluation of an item of property, plant and equipment at, or before, the date of transition to IFRSs as deemed cost at the date of the revaluation, if the revaluation was, at the date of the revaluation, broadly comparable to: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 18 The elections in paragraphs 16 and 17 are also available for: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Employee benefits ## 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 20A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Cumulative translation differences ## 21 IAS 21 The Effects of Changes in Foreign Exchange Rates requires an entity: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 22 However, a first-time adopter need not comply with these requirements for cumulative translation differences that existed at the date of transition to IFRSs. If a first-time adopter uses this exemption: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Compound financial instruments ## 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Assets and liabilities of subsidiaries, associates and joint ventures ## 24 If a subsidiary becomes a first-time adopter later than its parent, the subsidiary shall, in its separate financial statements, measure its assets and liabilities at either: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: LEASES ### Division: IFRIC 4 Determining whether an arrangement contains a lease ## 25F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Exceptions to retrospective application of other IFRSs ## 26 This IFRS prohibits retrospective application of some aspects of other IFRSs relating to: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Derecognition of financial assets and financial liabilities ## 27 A first-time adopter shall apply the derecognition requirements in IAS 39 Financial Instruments: Recognition and Measurement prospectively from the effective date of IAS 39. In other words, if a first-time adopter derecognised financial assets or financial liabilities under its previous GAAP in a financial year beginning before 1 January 2001, it shall not recognise those assets and liabilities under IFRSs (unless they qualify for recognition as a result of a later transaction or event). However, the first-time adopter shall: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Hedge accounting ## 28 As required by IAS 39 Financial Instruments: Recognition and Measurement, at the date of transition to IFRSs, an entity shall: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Estimates ## 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: PRESENTATION AND DISCLOSURE ## 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Comparative information ## 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Exemption from the requirement to present comparative information for IFRS 6 ## 36B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 37 Some entities present historical summaries of selected data for periods before the first period for which they present full comparative information under IFRSs. This IFRS does not require such summaries to comply with the recognition and measurement requirements of IFRSs. Furthermore, some entities present comparative information under previous GAAP as well as the comparative information required by IAS 1. In any financial statements containing historical summaries or comparative information under previous GAAP, an entity shall: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Explanation of transition to IFRSs ## 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Reconciliations ## 39 To comply with paragraph 38, an entity's first IFRS financial statements shall include: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Use of fair value as deemed cost ## 44 If an entity uses fair value in its opening IFRS balance sheet as deemed cost for an item of property, plant and equipment, an investment property or an intangible asset (see paragraphs 16 and 18), the entity's first IFRS financial statements shall disclose, for each line item in the opening IFRS balance sheet: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Interim financial reports ## 45 To comply with paragraph 38, if an entity presents an interim financial report under IAS 34 Interim Financial Reporting for part of the period covered by its first IFRS financial statements, the entity shall satisfy the following requirements in addition to the requirements of IAS 34: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: EFFECTIVE DATE ## 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX A Defined terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX B Business combinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## B1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## B2 If a first-time adopter does not apply IAS 22 retrospectively to a past business combination, this has the following consequences for that business combination: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## B3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## B4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## APPENDIX C Amendments to other IFRSs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## C1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## C2 This IFRS amends paragraph 172(h) of IAS 39 Financial Instruments: Recognition and Measurement to read as follows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-9 ## Business combinations — classification either as acquisitions or unitings of interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: ISSUE ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 The issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 All business combinations under IAS 22 are either an ‘acquisition’ or a ‘uniting of interests’. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-10 ## Government assistance — no specific relation to operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 In some countries government assistance to enterprises may be aimed at encouragement or long-term support of business activities either in certain regions or industry sectors. Conditions to receive such assistance may not be specifically related to the operating activities of the enterprise. Examples of such assistance are transfers of resources by governments to enterprises which: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 3 Government assistance to enterprises meets the definition of government grants in IAS 20, even if there are no conditions specifically relating to the operating activities of the enterprise other than the requirement to operate in certain regions or industry sectors. Such grants should therefore not be credited directly to equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-11 ## Foreign exchange — capitalisation of losses resulting from severe currency devaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 The issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 ‘Recent’ acquisitions of assets are acquisitions within 12 months prior to the severe devaluation or depreciation of the reporting currency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-12 ## Consolidation — special purpose entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 10 In addition to the situations described in IAS 27.12, the following circumstances, for example, may indicate a relationship in which an enterprise controls an SPE and consequently should consolidate the SPE (additional guidance is provided in the appendix to this interpretation): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 11 Predetermination of the ongoing activities of an SPE by an enterprise (the sponsor or other party with a beneficial interest) would not represent the type of restrictions referred to in IAS 27.13(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division International Financial Reporting Interpretations: IFRIC ### Division: IFRIC AMENDMENT TO SIC-12 ## REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: BACKGROUND ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 IFRS 2 is effective for annual periods beginning on or after 1 January 2005. IFRS 2 will amend IAS 19 by: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: ISSUES ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: AMENDMENT ## 6 Paragraph 6 of SIC-12 is amended as follows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: EFFECTIVE DATE ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-13 ## Jointly controlled entities — non-monetary contributions by venturers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 The issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 5 In applying IAS 31.39 to non-monetary contributions to a JCE in exchange for an equity interest in the JCE, a venturer should recognise in the income statement for the period the portion of a gain or loss attributable to the equity interests of the other venturers except when: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 Unrealised gains or losses on non-monetary assets contributed to JCEs should be eliminated against the underlying assets under the proportionate consolidation method or against the investment under the equity method. Such unrealised gains or losses should not be presented as deferred gains or losses in the venturer's consolidated balance sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-14 ## Property, plant and equipment — compensation for the impairment or loss of items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 Examples of such cases may include: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 The issue is how an enterprise should account for: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 4 Impairments or losses of items of property, plant and equipment, related claims for or payments of compensation from third parties and any subsequent purchase or construction of replacement assets are separate economic events and should be accounted for as such. The three economic events should be accounted for separately as follows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure ## 5 Monetary or non-monetary compensation recognised for the impairment or loss of items of property, plant and equipment should be disclosed separately. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-15 ## Operating leases — incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 Costs incurred by the lessee, including costs in connection with a pre-existing lease (for example costs for termination, relocation or leasehold improvements), should be accounted for by the lessee in accordance with the International Accounting Standards applicable to those costs, including costs which are effectively reimbursed through an incentive arrangement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-18 ## Consistency — alternative methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 Once the appropriate initial policy has been selected under the requirements of paragraph 3, a change in accounting policy should only be made in accordance with IAS 8.42 and applied to all items or categories of items in the manner specified in paragraph 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-19 ## Reporting currency — measurement and presentation of financial statements under IAS 21 and IAS 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 The issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 If the measurement currency, determined in accordance with paragraph 5 of this Interpretation, is the currency of a hyperinflationary economy, then: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure ## 10 The following should be disclosed: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-20 ## Equity accounting method — recognition of losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 In applying the equity method, the issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure ## 10 If an investor discontinues recognition of its share of losses of an investee, the investor should disclose in the notes to the financial statements the amount of its unrecognised share of losses of the investee, both during the period and cumulatively. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-21 ## Income taxes — recovery of revalued non-depreciable assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 5 The deferred tax liability or asset that arises from the revaluation of a non-depreciable asset under IAS 16.29 should be measured based on the tax consequences that would follow from recovery of the carrying amount of that asset through sale, regardless of the basis of measuring the carrying amount of that asset. Accordingly, if the tax law specifies a tax rate applicable to the taxable amount derived from the sale of an asset that differs from the tax rate applicable to the taxable amount derived from using an asset, the former rate is applied in measuring the deferred tax liability or asset related to a non-depreciable asset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-22 ## Business combinations — subsequent adjustment of fair values and goodwill initially reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 IAS 22.71 (revised 1998) indicates that in accounting for a business acquisition, identifiable assets and liabilities, which are acquired but do not satisfy the criteria … for separate recognition when the acquisition is initially accounted for, should be recognised subsequently as and when they satisfy the criteria. The carrying amounts of identifiable assets and liabilities acquired should be adjusted when, subsequent to acquisition, additional evidence becomes available to assist with the estimation of the amounts assigned to those identifiable assets and liabilities when the acquisition was initially accounted for. The amount assigned to goodwill or negative goodwill should also be adjusted, when necessary, to the extent that: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 The issues are, in making adjustments in the limited circumstances described by IAS 22.71: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 This interpretation does not apply to the following items as they are specifically addressed elsewhere in International Accounting Standards: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure ## 8 Adjustments to the carrying amounts of identifiable assets or liabilities or goodwill or negative goodwill should be disclosed and explained in the financial statements of the period in which the adjustment is made. The amount of an adjustment which relates to prior and comparative periods should also be disclosed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-23 ## Property, plant and equipment — major inspection or overhaul costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 5 The cost of a major inspection or overhaul of an item of property, plant and equipment occurring at regular intervals over the useful life of an asset and made to allow the continued use of the asset should be recognised as an expense in the period in which it is incurred except when: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-24 ## Earnings per share — financial instruments and other contracts that may be settled in shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 4 All financial instruments or other contracts that may result in the issuance of ordinary shares of the reporting enterprise to the holder of the financial instrument or other contract, at the option of the issuer or the holder, are potential ordinary shares of the enterprise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-25 ## Income taxes — changes in the tax status of an enterprise or its shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 4 A change in the tax status of an enterprise or its shareholders does not give rise to increases or decreases in amounts recognised directly in equity. The current and deferred tax consequences of a change in tax status should be included in net profit or loss for the period, unless those consequences relate to transactions and events that result, in the same or a different period, in a direct credit or charge to the recognised amount of equity. Those tax consequences that relate to changes in the recognised amount of equity, in the same or a different period (not included in net profit or loss), should be charged or credited directly to equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-27 ## Evaluating the substance of transactions involving the legal form of a lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 When an arrangement with an investor involves the legal form of a lease, the issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 IAS 17 applies when the substance of an arrangement includes the conveyance of the right to use an asset for an agreed period of time. Indicators that individually demonstrate that an arrangement may not, in substance, involve a lease under IAS 17 include (Appendix B provides illustrations of application of this interpretation): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 The definitions and guidance in paragraphs 49 to 64 of the framework should be applied in determining whether, in substance, a separate investment account and lease payment obligations represent assets and liabilities of the enterprise. Indicators that collectively demonstrate that, in substance, a separate investment account and lease payment obligations do not meet the definitions of an asset and a liability and should not be recognised by the enterprise include: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 The criteria in paragraph 20 of IAS 18 should be applied to the facts and circumstances of each arrangement in determining when to recognise a fee as income that an enterprise might receive. Factors such as whether there is continuing involvement in the form of significant future performance obligations necessary to earn the fee, whether there are retained risks, the terms of any guarantee arrangements, and the risk of repayment of the fee, should be considered. Indicators that individually demonstrate that recognition of the entire fee as income when received, if received at the beginning of the arrangement, is inappropriate include: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure ## 10 All aspects of an arrangement that does not, in substance, involve a lease under IAS 17 should be considered in determining the appropriate disclosures that are necessary to understand the arrangement and the accounting treatment adopted. An enterprise should disclose the following in each period that an arrangement exists: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 11 The disclosures required in accordance with paragraph 10 of this interpretation should be provided individually for each arrangement or in aggregate for each class of arrangement. A class is a grouping of arrangements with underlying assets of a similar nature (e.g. power plants). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-28 ## Business combinations — ‘date of exchange’ and fair value of equity instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 The issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure ## 7 When a published price of an equity instrument issued as purchase consideration exists at the date of exchange, but has not been used as the instruments' fair value, an enterprise should disclose: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 When an equity instrument issued as purchase consideration does not have a published price at the date of exchange, an enterprise should disclose that fact and the method and significant assumptions applied in determining the fair value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-29 ## Disclosure — service concession arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 A service concession arrangement generally involves the concession provider conveying for the period of the concession to the concession operator: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 6 All aspects of a service concession arrangement should be considered in determining the appropriate disclosures in the notes to the financial statements. A concession operator and a concession provider should disclose the following in each period: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 The disclosures required in accordance with paragraph 6 of this interpretation should be provided individually for each service concession arrangement or in aggregate for each class of service concession arrangements. A class is a grouping of service concession arrangements involving services of a similar nature (e.g. toll collections, telecommunications and water treatment services). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-30 ## Reporting currency — translation from measurement currency to presentation currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 The issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 6 When financial statements are presented in a currency other than the measurement currency determined under SIC-19, and the measurement currency is not the currency of a hyperinflationary economy, the requirements of SIC-19.9 should be applied as follows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 When financial statements are presented in a currency other than the measurement currency determined under SIC-19, and the measurement currency is the currency of a hyperinflationary economy, the requirements of SIC-19.9 should be applied as follows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Disclosure ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 10 When additional information not required by International Accounting Standards is displayed in financial statements and in a currency, other than the currency used in presenting the financial statements, as a convenience to certain users, an enterprise should, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-31 ## Revenue — barter transactions involving advertising services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 5 Revenue from a barter transaction involving advertising cannot be measured reliably at the fair value of advertising services received. However, a seller can reliably measure revenue at the fair value of the advertising services it provides in a barter transaction, by reference only to non-barter transactions that: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-32 ## Intangible assets — web site costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 The stages of a web site's development can be described as follows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 When accounting for internal expenditure on the development and operation of an enterprise's own web site for internal or external access, the issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 Any internal expenditure on the development and operation of an enterprise's own web site should be accounted for in accordance with IAS 38. The nature of each activity for which expenditure is incurred (eg training employees and maintaining the web site) and the web site's stage of development or post-development should be evaluated to determine the appropriate accounting treatment (additional guidance is provided in the appendix to this interpretation). For example: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 10 A web site that is recognised as an intangible asset under paragraph 8 of this interpretation should be measured after initial recognition by applying the requirements of IAS 38.63 to 78. The best estimate of a web site's useful life should be short. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-33 ## Consolidation and equity method — potential voting rights and allocation of ownership interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Issue ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 The issues are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: Consensus ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 When applying the consolidation and the equity method of accounting, instruments containing potential voting rights should be accounted for as part of the investment in a subsidiary and the investment in an associate respectively only when the proportion of ownership interests is allocated by taking into account the eventual exercise of those potential voting rights in accordance with paragraph 5 of this interpretation. In all other circumstances, instruments containing potential voting rights should be accounted for in accordance with IAS 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division IFRIC INTERPRETATION 1: Changes in Existing Decommissioning, Restoration and Similar Liabilities ## REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## SCOPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## ISSUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## CONSENSUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## EFFECTIVE DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## TRANSITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division APPENDIX: Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards ## . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Changes in existing decommissioning, restoration and similar liabilities included in the cost of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: IFRIC INTERPRETATION 7 ### Division Applying the Restatement Approach under IAS 29: Financial Reporting in Hyperinflationary Economies ## REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: BACKGROUND ## 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: ISSUES ## 2 The questions addressed in this Interpretation are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: CONSENSUS ## 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 At the closing balance sheet date, deferred tax items are recognised and measured in accordance with IAS 12. However, the deferred tax figures in the opening balance sheet for the reporting period shall be determined as follows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division: EFFECTIVE DATE ## 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --- Source: https://www.legislation.gov.uk/eur/2003/1725 (the official version) Page: https://openlegislation.uk/eu-regulation-2003-1725 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.