Chapter 1: The Financial Reportlnc Framework (IAS 1 Presentation of Financial Statements)

Objective:

Financial Information that is useful to existing and potential investors, lenders and other creditors when
deciding

Qualitative Factors: Definitions

Relevant Assets: a present economic resource

Comparable controlled by the entity as a result of past
Verifiable events
Timely Liability: a present obllcatlon of the entity
Understandable to transfer an economic resource as a result
Faithful representation of past events
Economic resource: a right that has the
potential to produce economic benefits
Expenses: decrease In assets/Increase in
liabilities that result in decreases in equity

Recognition/derecognition

Recognize an asset, liability, income, expense or equity when:

It meets the definition of an element

Provides relevant info that is a faithful representation at cost that doesn't outweigh benefits

Derecognize:

An asset when control is lost

Liability when there is no longer a present obligation

Measurement

Historical cost/current value (FV, value in use, current cost)

Presentation

Income and expenses go to P&l

HOWEVER, IF IT AFFECTS THE CURRENT VALUE OF ASSET/UAB, IT GOES TO oa ➔ faithful
representation

Chapter 2: Ethics, related parties and accountlnc policies

Ethical Principles

Integrity
Professional competence
Professional behaviour
Objectivity
Confidentiality

Self interest
Self review
Advocacy
Familiarity
Intimidation
Related Parties

• Person/entities are related where there is a close personal relationship to the entity of a control, joint
control or significant Influence
Disclosure of parent/ultimate parent under IAS 24, transactions with directors, group transactions that
would not usually arise, artificially high/low prices, hidden costs {free services)

Accounting Policies- IAS 8

Policl<!s - sp<!clfic principl<!s, bases oppll<!d by on <!nlity In pr<!poring/pr<!sentlng FS (retrospective chance)

Estimates - monetary amounts in FS that are subject to measurement uncertainty - involve judgement
and assumptions based on reliable Information (prospective change)
Errors -omissions and misstatements In for one or more prior periods arising from failure to use or misuse
of reliable information (restate comparative roeures)

Chapter fl: Revenue (IFRS 15)

Revenue Recognition

1. Identify contact with customer ➔ agreement that creates enforceable rights and obligations
2. Identify performance obllcatlon
3. Determine transaction price ➔ discount to PV (not required If <1 year)
4. Allocate transaction price to performance obllcatlon
5. Recoplze revenue when (or as) performance obHption is satisfied ➔ customer simultaneously receives
and consumes benefits, or the performance does not create an asset with an alternative use and entity
has an enforceable right to payment

Satisfaction of performance obligation:

(a) Entity has a present right to payment

(b) Customer has legal title to the asset
(c) Entity has transferred physical possession
(d) Customer has the significant risk and rewards of ownership
(e) Customer has accepted the asset

Incremental costs of obtaining a contract- recognized as asset if expected to be recovered

Costs to fulfil a contract - recognized as an asset and amortized if costs:

Con b" specific oily identified

Generate enhance resources used to satisfy performance obligation
Are expected to be recovered

Sale with right of return

Treat as a separate performance obligation if customer has option to purchase warranty separately
Account for warranty in accordance with IAS 37 if customer does not have option to purchase separately

Non-refundable fees - if an advance payment for future goods/services, recognize revenue when they are provided

Consignment arrangements - goods delivered to third party- control does not pass to third party; inventory
 &

Sale with right of return

Treat as a separate performance obligation if customer has option to purchase warranty separately
Account for warranty in accordance with IAS 37 if customer does not have option to purchase separately

Non-refundable fees - if an advance payment for future goods/services, recognize revenue when they are provided

Consignment arrangements-goods delivered to third party- control does not pass to third party; inventory
remains with seller and revenue not recognized until control (and risks and rewards) passes.

Repurchase agreements - entity sells an asset and promises or has option to repurchase it:

(a) If entity has the obligation (forward contract) or right (call option) to repurchase if repurchase price<
original price= IFRS 16 lease, if repurchase price ~ original price= financing agreement
(b) If customer requests repurchase (put option), entity should consider the likeliness to exercise the option:
Repurchase price< original price and customer not incentivized to exercise = lease
Repurchase price~ original price and above expected MV of option = financing arrangement

Chapter 4: Non-Current Assets

Property, Plant and Equipment {IAS 16)

Tangible items: held for use in production/supply of goods/service or admin purposes and expected to be
used for more than one period
• Recognize when:
J.- Probable that future economic benefits will flow to the entity
:.- Cost of asset can be measured reliably
Initial recognition at cost
Subsequent measurement, choice of:
► Cost model: cost less depreciation/Impairment
► Revaluation model: revalued amount less subsequent accumulated depreciation/Impairment OR FV
Depreciate systematic basis over useful life
·• Impairment - first to OCI (revaluation surplus) and TffEN P/L
·• Exchanges of items of PPE - measured at FV

Impairment of assets {IAS 36)

Annual Impairment tests required for: Impairment loss:

Goodwill ► Dr OCI (& Revaluation surplus)

• Intangibles not yet ready for use ► Cr P/L
Intangibles with indefinite useful life , Cr Goodwill of CGU
► Or Other assets pro-rata

Impairment loss reversals - permitted where RA increases, opposite double entry- cannot reverse above lower of
RA, carrying amount if no impairment occurred, goodwill never reversed.

Fair value measurement OERS 131

The value that an asset or liability is worth and that would be paid between market participants.
FV is after transport but before transaction costs.

lotanglble Assets (!As 3Sl

ldentlflable non-monetary without physical substance.

Identifiable if: Recognize when:

It is separable or Probable that future economic benefits will

Arises from contractual/legal rights flow to the e ntity
The cost of the asset can be measured
reliably
Initial measurement:

Purchased: (as IAS 16) cost

• Internally generated: Capitalize if:
► Probable future economic benefits
► Intention to complete and use/sell asset
;. Resource adequate and available to complete and use/sell
► Ablllty to use/sell
, Expenditure can be measured reliably
Never capitalize:
► Internally eenerated brands, customer llsts, start-up costs, tralnlne, advertlslne

After recognition: choice of:

• Cost model: as IAS 16

Rev!!h!<1tlon model: revaluation only by referent e to an active market
Amortization:

• Finite useful life: systematic basis over UL

Indefinite UL: at least annual impairment tests

Impairment: Charge first to OCI

Investment Property (IAS 40)

Property held to earn rentals or for capital appreciation

Recognize when: Initial measurement·

Probable future economic benefits Cost:
• Cost of asset can be measured reliably ;. Purchase price
;. Directly attrlbutable expenditure
• After recognition, choice of:
► Cost model: as IAS 16 unless held
for sale (IFRS 5) or leased (IFRS 1.6)
, FV: market value at year end,
gain/loss in P/L, not depreciated
• Impairment: charge to P/L

Agriculture (IAS 41)

Biological asset: living animal/plant

• Agricultural produce: harvested product
• Recognize when:
► Controlled as a result of past events
► Probable future economic benefits
► FV or costs can be measured reliably.
Measurement:
► Biological assets: FV less costs to sell
► Agricultural: at point of harvest: FC less costs to sell, thereafter as inventories

Chapter 5: Employee benefits (IAS 19)

Short term benefits

Recognized as a liability (accruals basis)

Not discounted
Accrue for holiday that can be carried (I.e. accrue for work this year so the holiday can be passed carried)

Defined benefit plans

Post employment plans other than defined contribution plan

Company guarantees pension (has risks and rewards) e.g. Final salary= (years worked/60)

Net inteteSl COit! 0, Net intetelt COit (P/l)

Cr PV obllgatlon (-" • bid)
0, Pion °""'" (-" • bid)
Cr Not Interest c:ost (P/l)
CurNnt Nrke cost: 0, CSC (P/l)
Cr PV obllgotlon
Post Nrvl<:e cost: 0./Ct PSC (P/l)
Cr/Or PV obligation
(omendmentA:urtollment)
Contributions: 0, Pion ouets
Cr Company cash
Benefits: 0. PV obligotlon
Cr Aonoustt

Remeasurements: recognize immediately In OCI

Settlements:
► A transaction that eliminates all further legal/constructive obligation for part/all benefits
► Any gains/loss recognized in P/L
Asset ceiling test:
► Net asset measured at lower of:
o Net defined benefit asset (FC of plan assets less PV of obligation)
o PV refunds available from plan/reductions in future contributions

Defined contribution plans

An entity pays fixed contribution into separate fund - employee holds risks/rewards
Company's only obligation is agreed contribution e.g., 5% x salary
Accounted for on accruals basis

Other long-term benefits

Accounting: same accounting as defined benefit plans BUT re measurements not in OCI - go to P/L if
service cost, net interest on liability/asset

Termination benefits

Dr Expense, Cr Liability
Recognize at earlier of:
► Date at which entity can longer withdraw the benefit
► Date when IAS 37 restructuring provision is recognized (when restructuring involves termination
payments
Measurement:
► If expect to wholly settle before 12 months of end of reporting date
► Otherwise, measure as other long-term benefits

Chapter 6: Provisions, contlngenc.les and events after the reporting period

Document continues below

Discover more from:

Strategic Business
Reporting (SBR)
Provisions llAS 37)

A liability of uncertain t imings or amount

Recognize liability:
► Present obligation
► Probable outflow of resources embodying economic benefits
► Reliable estimate
Discount if material

Specific type:, of provision

Future operating losses - do not provide

Onerous contracts - provide for unavoidable cost - lower of:
, Net cost of fulfilling
;.. Penalties from failure to fulfil
Restructuring:
;.. Only provide If :
o Detailed formal plan and
o Valid expectation raised by starting to implement it or by announcing main features
, Includes only direct expenditures:
(a) Necessarily entailed by the restructure and
(b) Not associated with the ongoing activities of the entity:
(i) Retraining/relocating staf
(ii} Marketing
(iii) Investment in new systems distribution networks
Environmental provisions:
► Make a provision where there is an obligation to clean up/decommission
o Provision is discounted to PV
o Dr Asset (depreciate over UL) Cr Provision

conti ngent Liabilities

Possible obligation or present obligation where:

;. Outflow or resources not probable or
Cannot make a reliable estimate ➔ disclose (unless outflow is remote)
Brief description of nature
Estimate of financial efect }
7
Indication of uncertainties ,.41----- - - - - - - - - - ~
Possibility of reimbursement

Contingent assets Events after reporting period (IAS 10)

Adjusting ➔ evidence of conditions, non-adjusting ➔ disclose

Pou,'ble auet
I
Inflow

Vlrtualw Not
cartoln .,.oboble

-
I I
AKogniN Do
- notur9 nothing

Chapter 7: Income Taxes

Deferred tax: revision

M:Cl X
Lest:taxboH _ID
Ta, ablo/(doductlblo) TO X/()()
• 11.•(0TL)/OIA ()()/X

Accelerated tax depreciation

;.. A/c CA> tax written down value (WDV)
, Tax base= tax WDV
► ➔ DTL
Revaluations not recognized for tax
► A/c CA> tax WDV
T.:i v h::10:,:,, = :::w \A/nV
 Revaluations not recognized for tax
, NcCA>taxWOV
;.. Tax base = ax WOV
;.. OTL always recognized even If no Intention to sell as revalued amount recoverable through use
generating taxable income
Accrued income/expense taxed on cash basis
;.. Accrual in SOFP, but no accrual for tax
;.. Tax base= 0
Provisions tax deductible when paid
). Accrual in SOFP, but no accrual for tax
► Tax base =O
► OTA based on provision
Accrued income/expense taxed on an accruals basis
► Tax base= accrual
► No OT elect
Calculation of charge/(credit} to P/L
Dll (no<) bid
0CI (re ,.,_,'n or
lrNettment In equky
ln1trument1) X
Goodwlll (ro FV ......,_) X
P/l c"°'9"1(cndil) !!S6)
Dll (no<) cM ~

Deferred tax: recosnltion

OT is recognized for all temp diferences except:
:,.. Initial recognition of goodwill
;.. Initial recognition of an asset or liability, provided:
o Not acquired in a business combination
o Transaction has no elect on accounting/taxable profit
o Transaction does not give rise to equal taxable and deductible temp diferences
OT recognized in same section of SPL&OCI as transaction

Deferred tax: measurement

Cannot be discounted - inconsistency with IAS 117 which required discounting if material

Deferred tax: group financial statements

FV adjustments
► DTL on FV increases (& higher goodwill)
► OTA on FV decreases (& lower goodwill)
Undistributed profits of sub/associate/JV
► DTL recognized unless:
(I) Parent is able to control timing or reversal and
(ii) Probable will not reverse in foreseeable future
Unrealized profit on intragroup trading
). OTA recognized at receiving company's t.x rate

Deferred tax: other temporary diference

Development costs
;.. DTL on Ne CA if fully tax deductible as incurred - tax base = 0
Impairment losses
;.. OTA on loss if not tax deductible until later
Financial assets
;.. DTL on gains on not taxable until sale
;.. OTA on losses not tax deductible until sale
;.. Recognized In the same section of SPLOCI as gain/loss
Unused tax losses/credits
► OT asset only if probable future taxable profit if available for ofset

Deferred tax: presentation

OT assets/liabilities must be ofset but only if:

► Legal right to set of current tax assets/liabilities and
► OT assets/liabilities relate to the same tax authority
Deferred tax: presentation

DT assets/liabilities must be ofset but only if:

► Legal right to set of current tax assets/liabilities and
► DT assets/liabilities relate to the same tax authority

Chapter 8: Financial Instruments (IFRS 9)

Financial asset:

(a) Cash
(b) Contractual right to:
(i) Receive cash/FA
(ii) Exchange FNFL under potentially favourable conditions
(c) Equity instrument of another entity
(d) Contact that will/may be settled in entity's own equity instruments

Financial Liability

(a) Contractual obligation to:

(i) Deliver cash/FA
(ii) Exchange FNFL under potentially unfavourable conditions
(b) Contract that will/may be settled in entity's own equity instruments

Equity Instrument

Any contract that evidences a residual interest in the assets after deducting all its liabilities
• Only equity if neither (a) or (b) of Fl definitions met

Compound Instrument

• Separate debt/equity components:

PYprincipal ()( , 1/
0 . ,J") X
PV int.anrstfio,i,n:
(Nominal interest• 1/c, . ,,1) X
(Nominal interflt X 1/c, • ,)2') X
{Nominal"''"'"' • ''o. .,:i> ~
...etc X
Oobt component X
:.Equ f t ~ -• ~
Cash receiv9:t X
• Discount using rate for non-<:onvertible debt

Recognition (IFRS 9)

• When party to contractual provisions of instrument

• Outside scope: contracts to buy/sell non-financial items

Dere cognition (IFRS 91

Financial assets

• When:
Derecognition (IFRS 9)
Financial assets

When:
;.. Contractual rights to cash flows expire
;.. FA Is transferred
• Recognize In P/L:
► Consideration received less CA

Financial liabilities

When obligation is:

► Discharged, cancelled or expires

Classification and measurement IIFRS 9)

Financial assets

Initia l measurement
► FV + transaction costs (except FA@ FV through P/L. TC go to P/L)
Subsequent measurement
(ll Investments in debt instruments
o Business model approach:
Held to collect or collect and sell cash flows and
Cash flows solely principal and interest
o Held to collect (only) at amortized cost
o Held to collect and sell - FV through OC Ith interest in P/L
(2) Investments in equity instruments not held for tradin
o FV through OCI
o No reclassification on derecognition
(3) All other FA - V through P/L
Reclassification:
► Permitted only for debt instruments where entity changes its
Amorth1ed cost
business model
colculotlon
Finnncinl liabilities Initial w:il ue b/d (incl
tron, cosu) X
Initia l measurement
Interest at effective
► FV - transaction costs (except FA @ FV through P/L, TC go to P/L) %•bid X
Subsequent measurement Coupon at nominal
(ll Most financial liabilities - amortized cost % • pa.r value
(2) FL at FV through P/L Amortised colt c/d X
o Held for trading
o Derivatives
o Designated at FV through P/L to eliminate/reduce an accounting mismatch
o Portfolios managed and performance evaluated on a FV basis
(3) FL arising when transfer of FA does not qualify of recognition
o FL= consideration received not yet recognized In P/L
o Measured on same basis as transferred FA (FV or amortized cost)
(4) Financial guarantee contracts and commitments to provide a loan at below market interest rate:
o Higher of:
IAS 37 valuation and
Amount initially recognized less amounts amortized to P/L

Embedded derivatives

Characteristics:

Settled at a future date

• Value changes in response to an underlying variable
No or little Initial net investment

Impairment {IFRS 9l
No test required for FA at FV through P/L (as automatically dealt with)
• Follows an expected loss model:
 , At m1t1a1 recognmon or a ~A, a 1oss allowance equal to H montn expectea crea1t 1oss must De
recognized
;. At subsequent dates

No ..... --1•
ct1'dll rill line• Wtlol
,_.ion"-,,
Sltnfflc.ont ltcnON In
CNdk riM ~ Wtio1
.......... (54. . . 2)
Objoctl,,o . .-
Nl'll~t ot u.
_,ng_(Stopl)
ol

I I I
Rocogr,IMl2·..-l, i!ocog,,IMlifotim. R«:ognl,ellfwtim.
U pK\ed cf9dt '°9NI •llfNCWd cf'9dlt loMN HpKUd cndh ao...
I I I
E-tt.cth. inteffft EH.cth4 int_..t EffKtM int..-..i
colc\.llot.cl on grou colculotlld on groa-1 colculoted on Mt
oa,ryiing amount c""V'ng___,. carryJng~
of f1"Cll'ldol OSM1 of fw,oncioll ou.t ot ftnandal o...t

Credit losses {and loss reversals) recognized in P/L

For investments In debt held at FV through OCI, change FV not due to credit losses still recognized in OCI
For investments in debt not held at FV through OCI a separate allowance account It used:
Or0&1 COffM1ng amount )(
..,_1o,,.,,,..,....,_ @
Net CXlfTying omount ,:

Permitted simplified approaches:

;. Trade receivables and contract assets: lifetime expect credit losses on Initial recognition

Hedging UFRS 9l

Accounted for as a hedge if hedging relationship:

;. only include eligible items
,
designated at inception and
,
is efectlve
(i) economic relationship between hedged Item and hedging instrument exists
(ii) change in GC due to credit risk does not d istort hedge and
(iii) quantity of hedging Instrument vs quantity of hedged item designated as the hedge is
the same as actually used
FV Hedge:
;. Hedge changes in value of recognized asset/liability
, All gains/losses ➔ P/L but OCI if investment in equity instruments measured at FV through OCI
Cash flow hedge:
► Hedges changes in value of future cash flows - gains/losses ➔ OCI until CF occurs ➔ OCI
Hedge of net Investment in foreign operation:
, Hedges changes in value of foreign sub's net assets
, Accounted for similarly to FC hedges
Single hedging disclosure note shows all the efects of hedging in one place

Chapter 9: I.eases (IFRS 16)

Lessee accounting

A contract, that conveys the right to use an asset for a period of time in exchange for consideration.
Contract contains a lease if the contract conveys the right to control an asset for a period of time for
consideration where throughout the period of use, the customer has:
(a) Right to obtain substantially all of the economic benefits from use and
(b) Right to direct use of the identified asset

Accounting treatment Right of use asset:

Lease !ability: PVFLP not pad onlbofon,

commence. ~
Poymants on/b.to,-. C0ffWn. dote
PVFLP not pcad anJbef«e
lnltk,1 dl,ec.-t co.b
eommMC., dot. X
DismonUlng/restoration costs X
lntarest at wnplicit " X
Payment in arr•u• @ ~
llobll•v c/d (""1 NCl & Cl) X
Depreciate to earlier of end of UL and lease term
 Optional exemptions (expense in P/L):
),. Short term leases (lease term< 12 months)
),. Underlying asset is low value e.g. tablet, PCs, small office fumiture
Remeasurement:
),. Revised lease payments discounted at original rate where re residual value guarantee or
payments linked to Index or rate
),. Adjust right of use asset

Deferred tax implications

Accounli-,g Ck
.......,...,...,,
Right-of•uNouat X
~

(X)
To..- ba:tM: 0
Tempo,cwy dltfitrena!! ~
Oefen.t toll asset at x'J. X

Lessor accounting

Rnance leases - a lease that transfers substantially all the risks and rewards incidental to ownership of an
underlying asset

• Indicators of a finance lease:

► Transfer of ownership by end of term
► Option to purchase at bargain price
► Leased for major part of economic life
► PVLP is substantially all of FV
► Asset tailor made
;. Cancellation losses borne by lessee
► Gain/loss on RV accrue to lessee
, Secondary term at bargain rent
De recognize underlying asset and recognize lease receivable:
Pt/ leoM poymenU
Pl unguataM.-d r• dduol ~ X
• ' Net l"""tment In the i.ctM' i

Ooeratins leases

A lease that does not transfer substantially all the risks and rewards incidental to ownership of an
underlying asset
• Asset retained in books or lessor and depreciated over UL
• Credit rentals to P/l straight line over lease term unless another systematic basis is more representative

Sale and leaseback transactions

Transfer is in substance a sale

Seller/lessee:
► Derecognize asset transferred
;. Recognizes a right of use asset at proportion of previous CA re right of use retained
),. Recognizes gain/loss in relation to rights transferred
If consideration received is not equal to asset's FV:
;. Below market terms: prepayment of lease payments
;. Above market terms: additional financing
Buyer-lessor accounts for:
;. The purchase as normal purchase
J. The lease per IFRS 16

Transfer Is NOT In substance a sale

Seller-lessee:
),. Continues to recognize transferred asset
► Recognizes financial liability equal to transfer proceeds
Buyer-lessor:
J. Does not recognize transferred cost
, Recognizes financial asset to transfer proceeds
Chapter 10: Share based payments (IFRS 2)

Types of share based payment

Equity settled - goods/services for shares/share options

Cash settled - goods/services for cash based on value of shares/share options
Choice of settlement - entity or counterparty chooses

Recognition - over vesting period

Measurement

(1) Equity settled - Dr Expense (/asset) Cr Equity

Measure at:
► FV goods/services received or
;. FV of equity instruments at grant date
For employee services not vesting Immediately - recognize change in equity over VP
(2) Cash settled - Dr Expense (/asset), recognize at FC = Cr Liability, adjust for changes In FX until date of
settlement
(3) Choice of settlement
If counterparty has the choice:
;. Treat as a compound instrument
;. Measure equity component at grant date FV:
FV shores olternotiw X
FV cash (debt) oltematiw (X)
Equity component X
If entity has the choice:
► Treat as equity settled unless present obligation to settle in cash
Equlty/ Hal:J ,ty b~ X Estlmatad no. af
Estimotodno. Cumuiati,,e
~ n t (baQ- P/1. X
Caoh paid (&ab only) ~
omployNs entitled
to benefits al
" of lnstrvments
pe,emploveo
i!:~nt• • proportion of vest.,g
po,k>delapNd
Equlty/liat,,nty cM _!! -'Ing-
~ Equkw-wtUtd: gronl dote
Caah...-.t:llad! .,.,.. . _

Vesting Conditions

Period of service - over period

Performance conditions - estimate at y/e Instruments expected to vest, where VP varies, accrue over most
likely at y/e
Market conditions - ignore

Modifications cancellations and settlements

Modifications - recognize services already received measured at grant date FV of instrument granted
Increases in FV due to modification
;.... Recognize over remaining VP o.i.r-i,... -
Cancellation - expense amount remaining A/c canylng .,,_.,,, of
Settlement - treat as a repurchase of S8Pu- 0
Or S8P ,uen,e/l;c,t,;i;ty l..n.s ten base
equity/extinguishment of liability (with FV of inruumont (future toa: d.d'n
► First remeasure liability to FV if cash measured at r-.pun::how ..timatod al,,,,..) ~

settled -•>
Or P/1. (any • ...,..,)
Tempa,arv difference ~
0Tauot•X1' X
C. Cash
If to• ct.d'n > SBP u:ptnN,
•xc•• DT ➔ equity not SPLOCI
Chapter 11: Basic groups
Consolidated financial statements

Exemption: consolidated FS not necessary if:

;.. P Is wholly own sub or NCI agrees
;.. Debt/equity not publicly traded
;.. Ultimate or any intermediate P publishes IFRS FS including all subs
A/c in separate FS of parent:
;.,, At cost or
► At FV (as FA under IFRS 9) or
► Equity metnod

Subsidiaries

• An entity that is controlled by another entity

• Control: when an Investor has ALL the following:
;.. Power over Investee
;. Exposure or rights over the variable returns
;.. Ability to use Its power to afect the returns

Acco untlng treatment

• Consolidation (purchase method) of 100% of assets, liabilities, income and expenses

Cancellation of intragroup items
NCI shown separately
• Uniform accounting policies
• Adjustments to FV
• Goodwill arises (tested annually for impairment)

Intra group Adjustments Exclusion

(o) Concollotlon of lntrog,oup

IOln.1>urc/lo-: Not pouible under IFRS unleu
DA Group.....,.,_ X no control or porent is on
0A G""'P-tolsalH X 1,,.,,..tment entity:
(b) f llmlnotlon of unt00IIHd - Oiulmilor oc:tiviliet
p,offt on .,_,ro,lo,/PPE: Con10lldoted • IFRS 8
SolosbvP<oS: dlaclo1ure1
DA Coot of IOIH/rol'd
oa<ningl ol P X - Held for re-10le
OIi Group .,..nto,lwPPE X Consolldoted under IFRS 5
Solo bv S IO P: principles (held for 10ie In
DA Cost of IOln/ ret'd CA/CL)
.amngs of S X - Sewtre LT restrictions
0A ~ -toriwPPE X
No control : . not a sub
(affoc:u Na)
(c) Coneollotlon ol lntrog,oup - 11111'8Stment entities
bolonces: Subs held at FVTP/L
DAPo\jObln X Purpose is inwument
OAl!oceivobln X management aervic·es
(d) Cost, "' trontlt lm,est solelw for returns from
DA Coot, X
OR RocolYobln X
copitol appreciation and/or
<•>Goodt In ,ronoi,, 1,,.,..tment income
DA l,_,,torioo X Performance measured 6
OR Po\jObln X tMJluoted on FV basis

IFRS 3 - Business Combinations

Definition: transaction in which an entity obtains control of one or more businesses

• Business: integrated a set of activities that generates goods or services for customers, investment income
or other income
Business has outputs+ processed capable of generating outputs
Acquisition method: identify the acquirer, the acquisition date, recognize and measure identifiable
assets/laibilitles acquired and NCI, recognize and measure goodwill
• Measure NCi at proportionate share of GV of net assets or at FV

Assodates
• An entity over which the investor has slenlflcant Influence (20-50%)
Significant Influence: power to participate In the financial and operating policy decisions but not control
Accounting treatment (IAS 28) Equity Method:
;.. SOFP: Cost+ shre of post acq'n retained reserves - lmpariement
J.- SPLOCI: share of profit+ share of other OCI
Eliminate investor's share of any PUP
Profit/loss not eliminated as similar to loss of control of a sub
 • Business: integrated a set of activities that generates goods or services for customers, investment income
or other Income
Business has outputs+ processed capable of 8enerating outputs
• Acquisition method: Identify the acqulrer, the acquisition date, recocnl1e and measure Identifiable
as.sets/lalbllltles acquired and NCI, recognl1e and measure goodwill
• Measure NCI at proportionate share of GV of net assets or at FV

Associates
An entity over which the investor has slcnlflcant Influence (20-50%)
Significant influence: power to participate in the financial and operating policy decisions but not control
Accounting treatment (IAS 28} Equity Method:
► SOFP: Cost+ shre of post acq'n retained reserves - impariement
;.. SP LOCI: share of profit+ share of other OCI
• Eliminate investor's share of any PUP
• Profit/loss not eliminated as similar to loss of control of a sub

Fair Values

• Consideration transferred
Measuring:
► Transaction costs:
o Expenses to P/L
o But to equity if re Share Capital
;.. Deferred: PV
;.. Contingent
o FV at acq'n date
o Subsequent measurement:
(i) Equity instruments - not remeasured
(ii) Cash- remeasure to FV, gains/losses to P/L
(ill) Financial instrument - IFRS 9

FV of assets and liabilities

Exeptions to FV recognition/measurement:

Contingent liabilitird - recognized if present obligation exsists and FV can be measured reliably
• Indemnification assets - same valuation as contingent laibility less allowance if uncollectable
• Reacquired rights - FV based o n remaining term
• Use normal IFRS values for deferred tax, employee benefits, share based payments and assets held for sale

Chapter 12: Chances In croup structure - step acquisitions

Acqwsition

Control is ochle.-d Siginir1COnt N'lfh.,.nce ls ocNewd Control is ,etoiMd

1,_.tmenl to 1ubsldloty Auoclote to tubsldlorv lnwatment to oaoclote Subsldlorv to 1ubsldlory

(eg 1°" 10 80% (eg3°" to - (eg1°"to~ (99 60%1010%
ahontholdlng) 1ho...i.oidlng} aholWholding) ahoroholdlng)

~ton ::arru tl citinnc 1.uhoro rnntrnl ic ::ar hia.vorl

•••
Ill
•••
Home My Library Discovery Ask Al Chats
Step acquisitions where control is achieved

Group Financial statements

Associate to subsidiary:
► SPLOCI:
0 Equity account to date of control
0 Remeasure associate to FV
0 Com•oliate from date of control

► SOFP:
0 Calculate goodwill at date of control
Consolidate
0

Investment to subsidiary:
► SPLOCI:
0 Remeasure investment to FV
0 Consolidate from date of control
► SOFP:
0 Calculate goodwill at date of control
0 Consolidate

Control achived in stages

Goodwill calculation (at date control achieved)

Conslct..atlon transf..-red X
°'
NCI (at FV at %fVNA) X
FV of prwlouoly hold I, _ . _ X
FV of net ouets at acquisition ~

.!
• Consolidated retained earnings if step acq'n partway through the year

Al w,eot Md/date of step ocq'n

Group Of lou on r w m a o ~
odju1tman1 ta ~ · • aqufty
p

X/(X)
~- s
stap occfn
X
s
~oftet
stapacq'n
X

A.t ocqul11tionldota ol control (!) (!)

y z
G<Oupsho,o:
(Y • S befcw• up oc:q'n) X
(Z • 1' oft• •tap ocq'n) X
i

Stec acau;s;t;ons where s;cn;ficant iofluence ;s achieved

Group financial statements - investment to associate

SPLOCI:
► Equity account from date of significant influence
SOFP:
► Equity account

Step acauisitioos where control is retained

Group Financial statements - sub to sub

• SPLOCI:
► Consolidate results for whole period
► Time apportion NCI
SOFP:
► consolidate
► Record decrease in NCI
► Calculate and record adjustment to equity (parent's column in Consolidated retained)

NCI (SOFP)
NCI ot oequlsltion (do,. of controO X
NCI shore of post ocq·n reserws to dote of step ocquisition X
Net at dote of step acquisition X
O.C.-lnNCI • ()()
NCt ofter ste p acquisition X
_ , 2 INS onlt/ ,_ir.c1 ;f step ocqumtion 11 poftWOV lhtough II"""
NO shorw of post--oc:q"n rnerws
NCI (SOFl'l
NCI ot ocqu!tltlon (dote o f eomrol) X
NCI fflCWe of pol1 ocq·n re1e,ve, to dote of swp ocquil.ltlon X
NCI ot dote of step oc:qul1lUoo X
o.a-mNC1 • oo
NCI o fw u.p ocquisition X
,..,,, 2 ,. _ onfi1 ,wq<ilted If rtep oeqwition 1, po""'°ll lhtO<Jg/1 .,eor.
NCI shonlol poot-oeq'n , - ,
From data of step ocquiaition toy.. and X
NClotll""'end x
Adjustment to equity

Adju- to equhv
FVol eonolde<otion pold (X)
Deawme in NCI • X
Adjustment to -~• ~

• NCI o t data of " purchO'Md

1tep ocqi.aitJon • NO 1' befof'e step ocq'n

Chapter 1ft: Changes In group structures - disposals

Conttollsmolned Conttol 11 lost

Sub&!dionJ to IUboldlCJr\j Fun dlspoool (sub lidory Subtldiory to ouodot• Subc.ldiorv to l~ 1tment
(portlol disposol) to no •hor•hokUng) c-tlofdllpoloO (po,tlal dl1po100

sybsjdjarjes· disposals where control is lost

Group financial statements - full disposal

SPLOCI:
;.. Consolidate/time apporton results/NCI to date of disposal
;;. Nothing after
SOFP:
► No sub to consolidate

Group financial statements - sub to associate

SPLOCI:
, Consolidate to disposal then equity account (time apportion)
SOFP:
► Equity account (FV at date of control lost)

Group financial statements - sub to investment

SPLOCI:
► Consolidate to disposal (lime apportion) the n recognise changes in FV and d ividend income
SOFP:
► Treat per IFRS 9 Financial Instrument

Group Profit on loss or d isposal Consolidated retained earnings (if d isposal partway through year}
(eg IIQ'J(, subsidia ry to 3(l'l(, a ssociate):
p s s
FV conslclerotion <8C<liwd X
Group Profit on loss or disposal Consolidated retained earnings (if disposal partway through year)
(eg 80% subsldlory t o ~ ouoclote):
p s s
FV contJderatJon reoehred X 80% ~
r:v ony lnwsunent rwtolned X At year and/dote of dlsposol X X X
Leu &hore of consol COfT\llng omount Group p,oflt on disposal X
ot dote control lost: At ocquitltionldote control lost ~ ~
N.iosaet, X y z
Goodwill X Group ohore:
Leu NCI ~ (Y. 8Q'll,) X
(X)
(Z•~) X
X/(X)
X

Parent's separate financial statements

Colculotlon of goWOoa) on ~ :
F't/ conslderotion recei\led X
Lau carrying amount of lnwstnwnt _.!!)
)(/(X)

Subsidiaries: disposals where control is retianed

Group financial statements - sub to sub

SPLOCI:
► Consolidate results for whole period

. ►
SOFP:
TI me apportion NCI

► Consolidate
;.. Record increase in NCI
;.. Calculate and record adj to equity (parent's column in Consolidated retained)

Group financial statements NCI soFp Grouo financial stemeots - adi to eaultv
NCI at ocquhJdon (dote of control) X
NCI ahore ol post-ocqukiuon ,.~ to
dot• ol dllflOIOI X
FV of consideration paid (X)
NC I at date of c:fispc.sal i lncqcne In NCI • X
ancr.o..1nNC1• X
NCI ofter dkpotol i Adjustment to equity ~
Nnt 2 .._ on1i, ...,u1...i H otop ooqul,ltJon is -"""11
~ .,.or. %sold
NCI ahor■ ol post-ocquislticwl ,.NfWS to wac>" end X • NCI ot dote of disposal •
NClotyeo,end i NCI % before disposal

Deemed disposals

• Where a sub issues new shares and parent does no take up it's proprtionate share(% falls)
Treat as a normal disposal

Associates

SPLOCI:
► Equity account to disposal (time apportion) then recognise changes in FV and dividend income
• SOFP:
T Treat per IFRS 9
Chapter 14: Non-currents assets held for sale and disounted operations (IFRS 5)

Only when at year end:

;.. Available for immediate sale in present condition,subject to usual and customary sales terms
;.. Sale is highly probably:
o Price actively marketed at is reasonable vs FV
o Unlikely that signlfcant changes made to plan
o Management committed to plan to sell and acitlvely locating buyer
o Sale expected to be completed within one year

Accounting treatment

(1) Depreciate and (if previously held at FV) revalue

(2) Reclassify as held for sale and write down to FV less costs to sell
(3) Any loss recognised In P/L
(4) Subsequent changes• impairment loss/loss reversal through to P/L

Presentation

Single amount
On face of SOFP
Separ. te
Nornmally current assets/liabilities

Non-current assets/disoosal gmuos to be abandoned

Not classified as held for sale
Show resu Its and cash flowes as discou ntinued operation if meets definition

Discountinued operations

A component of an entity that e ither:

;.. Has been disposed of or
;.. Is classified as held for sale AND
(a) Represents a separate major line of business or geographical area of operations
(bl Is part of a single co-ordinated plan to dispose of a separate major line of business or
geographical area of operations OR
(c) Is a sub acquired exclusively with a view to resale
Presentation/disclosure
► On face of SPLOCI: Single amount comprising:
o Post tax profit/loss of discontinued operations
o Post tax gain or loss on remeasurement to FV - CTS or on disposal
► On face or in notes:

f •v11,_..
Clroht1Mtrnta1
ltooco.,.ato, ..PI"_

Chapter 15: Joint arrangements and group disclosures

Joint arrangements
 Joint arrangement - an arrangement of which two or more parties have joint control
Joint control- the contractually agreed sharing of control of an arrangmeent, which exists only when
decisions about the relevant acitivties require unanimous consent

Joint Operations

Parties have joint control of the arrangements have rights to the assets, and obligations for the liabilities
relating to the arrangement.
Accounting treatment:
► In investor's separate financial statements, show:
o Own assets, liablities and expenses
o Share of assets held and expense and liabilities incurred jointly
o Revenue from the sale of it' s share of the output arising from the joint op
o Share of the revenue from the sale of output by the joint operation itself
► No adjustments required on consolidation

Joint ventures

Parties have joint control of the arrangement have rights to the net assets of arrangement
Accounting treatment:
;. Parent's separate financial statements
o Cost
o Fai r value or
o Equity method (required if no subs)
;.. Consolidated financial statements

IFRS 12 - Disclosure f Interests in Other Entities

Disclosures to evaluate the nature of, and risks associated with, interests In ther entities:
► Significant judgements and assumptions In determining control, joint control or significant
influence
;. Composition of the group
► The nature, extent and financial elects of interest in joint arrangements and associates
;. The nature, extent of Interests In unconsolidated structured entitles
;. The nature, extent of significant restrictions on the entity's ability to access or use assets and
settle liabilities
► The nature, and changes in, the risks associated with the entity's interests in consolidated
structures entities, joint ventures, associated and unconsolidated structured entitles
► Consequences of changes in t he entity's ownership of a sub that do not result in loss of control
;. Consequences of losing control of a subsidiary

Chapter 16: Forelcn transactions and entitles (IAS 21)

Functional currency

The currency of the primary economic environment in which the enitity operates
Transactions are measured in this currency
Transalated at spot rate at date of t ransaction (or average rate)
At year end:
► Restate monetary items ➔ aosing Rate
► Non monetary items ➔ not restated
- SOf'Pc
► Items held at FV ➔ use rate when FV determined FC PC
Exchanee diference to P/L l.uots ~ CA ~
Considerations in determining functional currency: ! !
SC X HA X
► Currency that mainly influences sales prices SP X HA X
► Currency that mainly influences labour, material, and other cost s Preocq'n A£ X HA X
x x
Pos't-ocq'n:
Presentational currency PFYveort
llMdond
X
••
(X) OC'1UOI
X
(X)
The currency in which the financial statements are presented PFYveor 2
Dividend
X
••
(X) actual
X
(XI
Can be any currency
~
l,on1 ret
~
 The currency of the primary economic environment in which the enitity operates
Transactions are measured In this currency
• Transalated at spot rate at date of transaction (or average rate)
• At year end:
► Restate monetary Items ➔ Closing Rate
► Non monetary Items ➔ not restated
- SC>rP.
► Items held at FV ➔ use rate when FV determined FC PC
Exchange diference to P/l
,.._,. ! CA !
Considerations in determining functional currency: ! !
SC X HA X
► Currency that mainly influences sales prices SP X HA X
► Currency that mainly influences labour, material, and other costs PNoc:q'nRE X HA X
i i
Polt-ocq"n:
Presentational currency Pf'Yy.a,1 X AA X

The currency in which the financial statements are presented _,,...2

0iv-..i ()() oduol
X AA
00
X
0iv-..i 00 octuol 00
Can be any currency T,ona ,_ X
Translation from functional currency i i
Exchange diferences ➔ OCI
Uobllllleo X CA ~

- ii
i X
-SPI.OCI:
Foreign ooerattoos that are subsidiaries fC PC
X
X
X
PFY AR X
CQf,,ld,, ~ l r v ~
M-.e,o,'11:tolli'lgl~ : 1 (oti:'VM01
OCI x
TCI ~ X
"™"'l
J n lr Wlli..d .,_, "'-Ml"• flt n,equl1.II~'
l'Oottlot. • Caicuiote goodwtl ( - below)
w .,..upm of oorot,d • Caiculote FX dlffe<_.. lo,
$1..... , _ _ . M,gU.X1)
- • (-below)
.._,,
~IN ~,...,._~., FoNlgn operation
'!1 fC.l (anodot• or ..N)
•1 ootauh,t1on Ct.llOX\
hpoi..,.ut ia.- 3lXI I>) AJVCA• rox, I)()
• IAS 21'1 requnmanb for fot.lgn 01»roticw-a
IE,c.not'llg9dff~ 10.x, 1 -, Cfl!I oppiled o• follows to on ossoeiole, A (o, to
C ....ubt lve
Atlt11- 11
h t:,uimw111io..-20XZ
Cll?.llXl
I>) WCll"20X2 ' ""
Oil dff~nc••
C JV):
- On lnitiol ,-c:ogr.ltion. kwHtmeMI ln A is
C1d,ong,uiH--c.1 !OX2 (poet to OCI) 1 __J tronaJo1.d a t ~ ruta ct dot• of ocq'n
- SubHqiJentty. ilNHtrneflt In A ls tron11otad
At3U2.X2. .! CR20X2 .! at closing rote al reporting dote
"1lwni k no• ~ l'\lffonwhich mti, to~ f u r ~ llcM-. tt-i,to,- 11wot.,,. ~ roa ortl'I• - o,oup $halt, of • ·• pron~ bi vun,IOted Yli3ng
ckrl.ingrat.il o::ceptabi,L tho DYf!lt>gl!S rota (m permitted oa an
approximation)
- bc:honga di~ fil"lultlng are
Exchange diferences in the year recording in 00 and occumuloted In eq.Jity

On ln:Jnalation at rwt mMb

Uon.toru • . , . forming pert oi
Oot,ing net ouete 011 trantlolld (Ol doalng rote) X n e t ! ~ i11 foreign optrOtion
Leu optring !WI Ol. .lS m uon1la1.d at the trl1e (OI ~ nlng raUt) _1!l

lnt retol"9d profit OI 1ron,lot.d ot the llrN (p,vfi\ Gt o._..roge rote ' - ' dMcl9nd, ol ocluol role) ~
X
,._
• ~ c ~ • ~~ ultdwt1lit'Hn1 nttlra

l'lorlMlwlD-•11 r,fc.....abl•f,,111to
X/(J() -~FG.tC.:
• fX dlff• ~ - 1'11-
~

---
On goodwOI - .,..tiondotdwo,llln,g - C•M~ Rir
• rx c,;r,.,• ...._.. • oc1 a; ,.._.,..,
~ • AH:.in.a .,._,'ftnOOtoP/1.midl, p(KOl of

Chapter 17: Group statement of cash flows (IAS 7)

Are cash and cash equivalents - short term highly liquid Investments, readily convertible to cash
Formats: Direct and Indirect

Consolidated statements of cash flows

Additional considerations

Cash paid/received to acquire/sell subs (net of cash acq'd/disposed)

Cash paid/received to acquire/sell associates/joint ventures
Adjust workings for assets/llabllltles of subs aculred/dlsposed
Dividends paid to NCI: Dividends rec'd from associates/JVs: Foreign currency transactions

Eliminot. FX d lffetenCH thot ore not

c ash flows;
NCI )nyjn A/JV
Pn,fit bafor. toaatlon 3,350
bM - SOFP X Ml X Adjuatm.nt for:
Sl'lOCI (IICI In TCO X SPLOCI (VFY • M:>C8 X ,so
Oep,eclatlon
Acquisition al S (NCI at FV Acqui1nion ol AJ.N )( F.,...;g,, e..:honge-
o,VVNA)
Dispmal of S
X Dl_..,t of A/.N (X) lnwstment incOfflll "°
(500)
(X) Non-cash (eg FX lou
lnterftt ospeme ,oo
Non.-c:cnh (eg FX lot.t foraign S) (X} t.,.;gn A/NJ (X)
r':,uhlril............_.• -•A'IA
3.7',0
r--~~ t.#!• .Z-'--A· --t-4 ,_ u '°"' n
 Elmlnate FX: differences thot are not
cot.h Uowa.:
Na Jnyln A/.N Pfofft bef0t• toa(l'tlon 3.350
bld-SOFP X bid X
Adju.tment for:
Sl'I.OCI (IICI In lCl) X SPLOCl('IPFY•~ X Oop,oclotlon ,50
Acqultklon al S (NCt at FV Acqui1itioc, of AJ.N X
o,VVNA)
Oi,poool al $
X ~tolof A/.N (X)
F"'°'IJn o..i.anv-1ooo
11"1¥ettment Income "°
(500)
(X) Non-eoah (eg FX lou lnce rNt eitpenN ,oo
Non-cooh (og FX lou f0<o;gn S) ()() lo,oign A/N) ()()
Cot/I (dMdonds ,oc"d) P
3.M
c- (dhlclondo paid to NCO 11 l!) ~ • Ad)u11 rn woo•lng• <- osompln
cld-SOFP X cld
i ot,o,..)

Analysis and intermpretation of group statements of cash flow

Components of cash flows

Overa ll change in cash
Cash flows vs expectations - e .g. operating activities should be a key inflow investing activities a key
outflow

cr;t;c;sms of !AS z
Presenations - direct vs indirect method
Inconsistency of classification - e.g. interest can be operating or financial cash flow
Purpose of cash flows - may be inconsistency between purpose of cash flow and classification in
statement of cash flows

Chapter 18: lnterprestlng financial statement for different stakeholders

Performance measures

Financial • ESMA guidelines

Ratios
EPS
Scope for manipulation
Non Financial
Alternative
• Staf
EBITDA
• Customers
EVA
• Producitivity
Balanced Scorecard
• Environmental

Sustainability reporting

Sustainable development: that meets the needs of present genertions without compromising the rights of
future generations to fulfil t heir needs
Sustainability reporting:
► Integrates environmental, social and economic performance data and measures
, Includes corporate governance and principles
► GRI Standards on sustainability reporting

Integrated reporting

Combines financial reporting and sustainability reporting

Focuses on value creation in short, medium and long term
General disclosure requirements, material matters:
Integrated reporting
• Combines financial reporting and sustainability reporting
• Focuses on value creation In short, medium and long term
• General disclosure requirements, material matters:
;. Capitals, time frame for shot1 medium and long term

Management commentary

• Supplements and complements financial statements

• Provides mangements view If perfomance and position
• looks forwards to future financial position
• IFRS Practice Statement - non-binding IFRS sets out principles for prep of management commentary

Sesroent Beoortins !AS 34 - lnteciro Einanc;a1 Beoortin@

Reportable segments • Interim reports: volunatry but must comply
with IAS 34 if described as complying with
• 10% test for identifying reportable
IFRS Standards
segments
• Min components:
• 75% external revenue reported
:,.. Condensed SOFP, SPLOCI, SOCF,
Disclosure requirements SOCIE, selected explanatory notes
• Accounting policies same as annual FS
• Revenue, profit or loss. assets mandatory • Seasonal/cyclical revenue/costs only
Geographical segments anticipdated/deferred If also appropriate at
year end

Chapter 19: Reporting requirements of small and medium-sized entitles

• Applies to SM Es that:
► Do not have public accountability and
;. Publish general prupose financial statements

• No size test
• Practical exemptions availabe on transition to the IFRS for SMEs

Kev difereoces
Financial instruments

• Basic debt Instruments:

► Returns fixed, variable or combination of positive fixed and variable
► No contractual provision to lose principal/interest
;.. Prepayments not contingent on future events
► Returns not conditional (other than re variable rate/prepayment option above)
► ➔ amortised cost
• Investments In shares (excluding convertible preferance shares and putt.able shares):
► FV through P/L (or cost less impairment if FV cannot be measured reliably}
• All other financial instruments - FV through P/l

Non-current assets

• Revaluation model not permitted for intangibles

lnterally generated research and development expenses
Investment property held at FV through P/l
• Government grants recognised in P/l when conditions met, if not ➔ receivable
• Borrowing costs expenses

Defined benefit pension plans

• Simplified calcs of def ben obligations permitted

• Acturial gains/losses recognised in P/l or OCI

Simplifications introduced by the IFRS for SM Es

Presentation - combined SPL and SOCIE permitted

Revenue recognition

Goods: when risks/rewards transferred

Services: stage of completion basis
Intangibles and goodwill always amortised
Revenue recognition

Goods: when risks/rewards transferred

Services: stage of completion basis
Intangibles and goodwill always amortised

Separate financial statements of parent - investment in subsidiary, associate or JV at cost or FVTP/L or equity
method

Group financial staements

Investment in associate or JV at cost of FVTP/L or equity method

NCI in goodiwll at % net assets not FV

Chapter 20: The Impact of chances and potential chances In accountlnc reculatlon

Current iuue$
1. Materla llty In the context of financial reporting
2. Management commentary

3. Speiclfic accounting issues

4. Sustainability reporting

Snedfic acrountios iss1,rs

Apply existing accounting requirements to current situations including:

Accounting for digital assets

Accounting for the efects of a natural disaster
Climate change
A global evenet
Going concern

Better Communication in Financial Reporting

Materiality in the context of financial reporting

• Information Is material If omittlncm mlsstatlnc or obscuring It could reasonably be e-xpected to

Influence decisions

Key points:

Recognition and measurement criteria only need to be applied If Info is material

Disclosure need not be made if it Is not material

First time adoption - IFRS 1

Apply IFRS from beginning of earliest comparative period shown ; date of transition to IFRS
Prepare opening IFRS SOFP at date of transition ➔ all adj from previous GAAP in equity
Use IFRSs efective at reporting date for all periods presented
Estimates are made as at same date as under previous GAAP even if more info is available
Reconciliations required:
► Equity at date of transition and last previous GAAP year end
► TCI for last annual financial statements

Transition process

Selett a(counting policies under IFRS

Derecognise assets/liabilities not recognised under IFRS
Recognise IFRS assets/liaibilities not recognised under previous GAAP
Reclassify assets and liabilities
Remeasure to IFRS value