IFRS in your pocket
2019Abbreviations 1
Foreword 2
Our IAS Plus website 3
IFRS Standards around the world 5
The IFRS Foundation and the IASB 7
Standards and Interpretations 15
Standards and Interpretations 24
Summaries of Standards and Interpretations
in effect at 1 January 2019 29
Requirements that are not yet mandatory 100
IASB projects 104
Deloitte IFRS resources 111
Contacts 113
ContentsIFRS in your pocket |2019
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Abbreviations
ARC Accounting Regulatory Commission
ASAF Accounting Standards Advisory Forum
DP Discussion Paper
EC European Commission
ED Exposure Draft
EFRAG European Financial Reporting Advisory Group
GAAP Generally Accepted Accounting Principles
IAS International Accounting Standard
IASB International Accounting Standards Board
IASC International Accounting Standards Committee
(predecessor to the IASB)
IFRIC Interpretation issued by the IFRS Interpretations
Committee
IFRS International Financial Reporting Standard
IFRS Standards All Standards and Interpretations issued by the IASB
(ie the set comprising every IFRS IAS IFRIC and SIC)
PIR Postimplementation Review
SEC US Securities and Exchange Commission
SIC Interpretation issued by the Standing Interpretations
Committee of the IASC
SMEs Small and Mediumsized Entities
XBRL Extensible Business Reporting Language
XML Extensible Markup LanguageIFRS in your pocket |2019
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Foreword
Welcome to the 2019 edition of IFRS in Your Pocket
It is a concise guide of the IASB’s standardsetting activities that
has made this publication an annual and indispensable worldwide
favourite
At its core is a comprehensive summary of the current Standards
and Interpretations along with details of the projects on the IASB
work plan Backing this up is information about the IASB and an
analysis of the use of IFRS Standards around the world It is the
ideal guide update and refresher for everyone involved
This is another year of important changes in IFRS IFRS 16 Leases
is mandatory for annual periods beginning on or after 1 January
2019 along with a new Interpretation on uncertain tax positions
and seven amendments to Standards of which four resulted from
the IASB’s Annual Improvement process
Further along the horizon IFRS 17 Insurance Contracts is effective
from 1 January 2021 although that is likely to be deferred until
1 January 2022
The IASB will also be seeking input on other projects We expect
to see continued activity on the projects under the umbrella of
Better Communication in Financial Reporting and a broad range of
research projects including wider corporate reporting
With so much going on the best way you can keep up to date
continuously with the latest developments in the arenas of
international and domestic financial reporting is through our
website wwwiaspluscom It is widely regarded as the most
comprehensive source of news and comment about international
financial reporting available today
Veronica Poole
Global IFRS LeaderIFRS in your pocket |2019
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Our IAS Plus website
Deloitte’s IAS Plus (wwwiaspluscom) is one of the most comprehensive
sources of global financial reporting news on the Web It is a central
repository for information about International Financial Reporting
Standards as well as the activities of the IASB The site which is also
available in German includes portals tailored to the United Kingdom
the United States and Canada (in English and French) each with a
focus on local GAAP and jurisdictionspecific corporate reporting
requirements
IAS Plus features
•• News about global financial reporting developments presented
intuitively with related news publications events and more
•• Premeeting summaries of the topics being discussed by the IASB
and IFRS Interpretations Committee and summaries of the meeting
discussions and decisions reached
•• Summaries of all Standards Interpretations and projects with
complete histories of developments and standardsetter discussions
together with related news and publications
•• Rich jurisdictionspecific information including background and
financial reporting requirements links to countryspecific resources
related news and publications and a comprehensive history of the
adoption of IFRS Standards around the world
•• Detailed personalisation of the site which is available by selecting
particular topics of interest and creating tailored views of the siteIFRS in your pocket |2019
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•• Dedicated resource pages for research and education sustainability
and integrated reporting accounting developments in Europe XBRL
and Islamic accounting
•• Important dates highlighted throughout the site for upcoming
meetings deadlines and more
•• A library of IFRSrelated publications available for download and
subscription including our popular IFRS in Focus newsletter and other
publications
•• Model IFRS financial statements and checklists with versions
available tailored to specific jurisdictions
•• An extensive electronic library of both global and jurisdictionspecific
IFRS resources
•• Expert analysis and commentary from Deloitte subject matter
experts including webcasts podcasts and interviews
•• Elearning modules for most of the IASB’s Standards
•• Enhanced search functionality allowing easy access to topics of
interest by tags categories or free text searches with search results
intuitively presented by category with further filtering options
•• Deloitte comment letters to the IASB and numerous other bodies
•• An interface that is smartdevice friendly and updates through Twitter
and RSS feedsIFRS in your pocket |2019
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IFRS Standards around the
world
Most jurisdictions have reporting requirements for listed and other
types of entities that include presenting financial statements that are
prepared in accordance with a set of generally accepted accounting
principles IFRS Standards are increasingly that prescribed set of
principles and are used extensively around the world
We maintain an uptodate summary of the adoption of IFRS Standards
around the world on IAS Plus at httpwwwiaspluscomenresources
ifrstopicsuseofifrs
The IFRS Foundation publishes individual jurisdictional profiles which
can be found in httpwwwifrsorgUsearoundtheworldPages
Jurisdictionprofilesaspx
Europe
43 jurisdictions in Europe require IFRS Standards to be applied by all
or most of their domestic publicly accountable entities Switzerland
permits the use of IFRS Standards
Europe has a strong endorsement process that requires each
new Standard or Interpretation or amendment to a Standard or
Interpretation be endorsed for use in Europe That process involves
•• translating the Standards into all European languages
•• the privatesector EFRAG giving its endorsement advice to the EC
•• the EC’s ARC making an endorsement recommendation and
•• the EC submitting the endorsement proposal to the European
Parliament and to the Council of the EU
Both must not oppose (or in certain circumstances must approve)
endorsement within three months otherwise the proposal is sent
back to the EC for further consideration Further information on
endorsement is available from Deloitte httpwwwiaspluscom
enresourcesifrstopicseurope The most recent status on EU
endorsement of IFRS Standards can be found at httpwwwefrag
orgEndorsement The UK is considering how the adoption of new IFRS
requirements will be undertaken after the UK leaves the EU
The Americas
27 jurisdictions in the Americas require IFRS Standards to be applied
by all or most of their domestic publicly accountable entities A further
8 jurisdictions permit or require IFRS Standards for at least some
domestic publicly accountable entities IFRS in your pocket |2019
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In the United States foreign private issuers are permitted to submit
financial statements prepared using IFRS Standards as issued by the
IASB without having to include a reconciliation of the IFRS figures to
US GAAP The SEC does not permit its domestic issuers to use IFRS
Standards in preparing their financial statements rather they are
required to use US GAAP
AsiaOceania
25 jurisdictions in AsiaOceania require IFRS Standards to be applied
by all or most of their domestic publicly accountable entities A further
3 jurisdictions permit or require IFRS Standards for at least some
domestic publicly accountable entities
Africa
36 jurisdictions in Africa require IFRS Standards to be applied by all or
most of their domestic publicly accountable entities and one permits or
requires IFRS Standards for at least some domestic publicly accountable
entities
Middle East
13 jurisdictions in the Middle East require IFRS Standards to be applied
by all or most of their domestic publicly accountable entities
Filing requirements
The IASB is also gathering information about the filing requirements for
financial statements prepared in accordance with IFRS Standards This
includes an assessment of requirements to file electronic versions of
the financial statements and the form of those filings
There is an increasing use of structured data filings using the
XMLbased language called XBRL The SEC requires that foreign filers
submit financial data in XBRL for annual periods ending on or after
15 December 2017 Electronic filing requirements using XBRL and the
IFRS Taxonomy are scheduled to take effect in Europe in 2020
The SEC and European electronic filings must use the IFRS Taxonomy
maintained by the IASB More information is available at httpwwwifrs
orgissuedstandardsifrstaxonomyIFRS in your pocket |2019
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IFRS Foundation
The IFRS Foundation is the organisation that develops IFRS Standards
for the public interest It has a staff of around 150 people and has its
main office in London and a smaller AsiaOceania office in Tokyo
Within the Foundation is the IASB an independent body of accounting
professionals that is responsible for the technical content of IFRS
Standards The staff of the Foundation support the work of the
IASB It has technical staff who analyse issues and help the IASB
(and its interpretations body the IFRS Interpretations Committee)
make technical decisions Other staff provide support to adopting
jurisdictions publications education communications (including the
website) investor relations fundraising and administration
International Accounting Standards Board
The IFRS Foundation and the
IASB
The IASB is a technical standardsetting body
Membership The IASB has up to 14 members Most are full
time so that they commit all of their time to paid
employment as an IASB member Up to three can
be parttime but they are expected to spend most
of their time on IASB activities
All members of the IASB are required to commit
themselves formally to acting in the public interest
in all matters
Global balance Four members are appointed from each of
AsiaOceania Europe and the Americas and one
member from Africa
One additional member can be appointed from any
area subject to maintaining overall geographical
balance
Qualifications
of IASB
members
Members are selected to ensure that at all times
the IASB has the best available combination of
technical expertise and diversity of international
business and market experience to develop high
quality global financial reporting standards
Members include people who have experience as
auditors preparers users academics and market
andor financial regulators IFRS in your pocket |2019
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Term The maximum term is 10 years – an initial term of
five years and a second term of three years or up
to five years for the Chair and ViceChair
Meetings The IASB meets in public to discuss technical
matters usually each month except August
The current members of the IASB are profiled at httpwwwifrsorg
groupsinternationalaccountingstandardsboard#members
IFRS Interpretations Committee
The IFRS Interpretations Committee is responsible for
developing Interpretations of IFRS Standards
Membership The Committee has 14 members appointed
because of their experience with IFRS Standards
They are not paid but the IFRS Foundation
reimburses members for outofpocket costs
Meetings The Committee meets in public to consider
requests to interpret IFRS Standards It meets every
two months
Interpretations If the Committee decides that an IFRS Standard
is not clear and that it should provide an
interpretation of the requirements it either
develops an Interpretation or in consultation with
the IASB develops a narrowscope amendment to
the IFRS Standard
Deciding to develop an Interpretation or
amendment means that the Committee has taken
the matter onto its agenda The development
of an Interpretation follows a similar process
to the development of an IFRS Standard They
are developed in public meetings and the Draft
Interpretation is exposed for public comment
Once the Interpretation has been completed it
must be ratified by the IASB before it can be issued
Interpretations become part of IFRS Standards so
have the same weight as any Standard
Agenda
decisions
If the Committee decides that it need not or cannot
develop an Interpretation it publishes a tentative
Agenda Decision explaining why it does not intend
to develop an Interpretation Once the Committee
has considered feedback on the tentative decision
it can decide to finalise that decision or it could add
the matter to its agenda The final agenda decisions
sometimes contain an analysis of the relevant
Standard that is helpful to preparersIFRS in your pocket |2019
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Due process
The IASB and its Interpretations Committee follow a comprehensive and
open due process built on the principles of transparency full and fair
consultation and accountability The IFRS Foundation Trustees through
its Due Process Oversight Committee is responsible for overseeing
all aspects of the due process procedures of the IASB and the IFRS
Interpretations Committee and for ensuring that those procedures
reflect best practice
Transparency All technical discussions are held in public (and
usually via webcast) and the staffprepared IASB
papers are publicly available The purpose of
the staff papers is to ensure that the IASB and
IFRS Interpretations Committee have sufficient
information to be able to make decisions based
on the staff recommendations A final Standard or
Interpretation must be approved by at least 9 of the
14 members of the IASB
Full and fair
consultation
The IASB must
•• Hold a public consultation on its technical work
programme every five years
•• Evaluate all requests received for possible
interpretation or amendment of a Standard
•• Debate all potential standardsetting proposals
in public meetings
•• Expose for public comment any proposed
new Standard amendment to a Standard or
Interpretation
•• Explain its rationale for proposals in a basis for
conclusions and individual IASB members who
disagree publish their alternative views
•• Consider all comment letters received on the
proposals which are placed on the public record
in a timely manner
•• Consider whether the proposals should be
exposed again
•• Consult the Advisory Council on the technical
programme major projects project proposals
and work priorities
•• Ratify any Interpretations developed by the IFRS
Interpretations CommitteeIFRS in your pocket |2019
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Additionally the IASB must undertake the following
steps or explain why they do not consider them to
be necessary for a specific project
•• Publish a discussion document (for example a
DP) before specific proposals are developed
•• Establish a consultative group or other types of
specialist advisory group
•• Hold public hearings
•• Undertake fieldwork
Accountability An effects analysis and basis for conclusions (and
dissenting views) are published with each new
Standard
The IASB is committed to conducting post
implementation reviews of each new Standard or
major amendment of an existing Standard
Further information on the IASB due process can be found at
httpwwwifrsorgaboutushowwesetstandards
Consultative bodies
Advisory
groups
The IFRS Advisory Council meets twice a year
Its members give advice to the IASB on its work
programme inform the IASB of their views on
major standardsetting projects and give other
advice to the IASB or the Trustees The Advisory
Council has at least 30 members (and currently
has about 45) including a member from Deloitte
Members are appointed by the Trustees and are
organisations and individuals with an interest in
international financial reporting from a broad range
of geographical and functional backgrounds
The Accounting Standards Advisory Forum (ASAF)
meets with the IASB four times a year in a public
meeting to discuss technical topics It comprises
a standardsetter from Africa three from each
of the Americas AsiaOceania and Europe and
two from any area of the world at large subject to
maintaining an overall geographical balance
Standing
consultative
groups
Capital Markets Advisory Committee (users) Global
Preparers Forum (preparers) Emerging Economies
Group Islamic Finance Consultative Group IFRS
Taxonomy Consultative Group SME Implementation
Group World Standardsetters ConferenceIFRS in your pocket |2019
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Transition
Resource
Groups
Created for specific new Standards (Impairment
of Financial Instruments Insurance Contracts and
Revenue Recognition)
Project
consultative
groups
Rate Regulation Management Commentary
IFRS Foundation (and IASB)
7 Westferry Circus Canary Wharf London E14 4HD UK
Telephone +44 (0) 20 7246 6410
General email info@ifrsorg
Website wwwifrsorg
AsiaOceania office
Otemachi Financial City South Tower 5F 197 Otemachi
Chiyodaku Tokyo 1000004 Japan
Telephone +81 (0) 3 5205 7281
Fax +81 (0) 3 5205 7287
General email AsiaOceania@ifrsorgIFRS in your pocket |2019
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Monitoring Board
Oversees the
trustees and provides
a formal link between
the Trustees and
public authorities
IFRS Interpretations
Committee
Consider requests to
interpret how IFRS
Standards should be
applied – can develop
Interpretations or
minor amendments
for the IASB
Advises
Reports to
IASB
Responsible for
developing and
approving all Standards
and Interpretations
Trustees of the IFRS
Foundation
Responsible for the
governance and
oversight of the IASB
Governance
ASAF
Provide technical
support and advice to
the IASB
Project Consulative
Groups
Provide advice on major
projects to develop a
new Standard
Transition Resource
groups
Provide transition
support for major new
Standards
Standing Consultative
Groups
Provide advice from a
particuar sector or on a
special topic
IFRS
Advisory
council
A sounding
board for
the IASB
and the
Trustees
Monitoring Board
The Monitoring Board provides formal interaction between capital
markets authorities and the IFRS Foundation It provides public
accountability of the IFRS Foundation through a formal reporting line
from the Trustees of the Foundation to the Monitoring BoardIFRS in your pocket |2019
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Responsibilities •• Approves the appointment of the Trustees
•• Reviews the adequacy and appropriateness of
Trustee arrangements for financing the IASB
•• Reviews the Trustees’ oversight of the IASB’s
standardsetting process particularly with
respect to its due process arrangements
•• Confers with the Trustees regarding the
responsibilities pertinent to the IFRS
Foundation’s oversight to the IASB particularly
in relation to the regulatory legal and policy
developments
•• Can refer matters of broad public interest related
to financial reporting to the IASB through the
IFRS Foundation
Membership The Monitoring Board currently comprises
representatives of the International Organization
of Securities Commissions (IOSCO) the IOSCO
Growth and Emerging Markets Committee the
European Commission (EC) Financial Services
Agency of Japan (JFSA) US Securities and Exchange
Commission (SEC) Brazilian Securities Commission
(CVM) Financial Services Commission of Korea
(FSC) and the Ministry of Finance of the People’s
Republic of China The Basel Committee on Banking
Supervision is a nonvoting observerIFRS in your pocket |2019
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Trustees of the IFRS Foundation
The Foundation’s governing body is the Trustees of the IFRS Foundation
Responsibilities •• Appoint members of the IASB the IFRS
Interpretations Committee and the IFRS Advisory
Council
•• Establishing and amend the operating
procedures consultative arrangements and
due process for the IASB the Interpretations
Committee and the Advisory Council
•• Review annually the strategy of the IASB and
assess its effectiveness
•• Ensure the financing of the IFRS Foundation and
approve its budget annually
The Trustees ensure that the IASB develops IFRS
Standards in accordance with its due process
requirements through the Trustee Due Process
Oversight Committee
Membership There are 22 Trustees each being appointed for a
threeyear term renewable once The exception is
that a trustee can be appointed to serve as Chair
or ViceChair for a term of three years renewable
once provided that the total period of service does
not exceed nine years
Trustees are selected to provide a balance of
people from senior professional backgrounds who
have an interest in promoting and maintaining
transparency in corporate reporting globally To
maintain a geographical balance six trustees are
appointed from each of AsiaOceania Europe and
the Americas one Trustee is appointed from Africa
and three Trustees are appointed from any area
subject to maintaining the overall geographical
balanceIFRS in your pocket |2019
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The IASB was established in 2001 replacing the International Accounting
Standards Committee (IASC) The IASC which was established in 1973
was a consensus body and its purpose was to harmonise financial
reporting standards It produced Standards called International
Accounting Standards (IAS Standards) and its Interpretations were
called SIC Interpretations One of the first actions of the IASB was to
adopt all of the IASC’s IAS Standards and SIC Interpretations as its
own The IASB undertook a major project to improve 13 of these IAS
Standards finalising and issuing the revised IAS Standards in 2004
At the same time the IASB started to develop new Standards and
Interpretations calling each new Standard an IFRS Standard and each
Interpretation an IFRIC Interpretation
Standards and Interpretations
IFRS 1 Firsttime Adoption of International Financial Reporting
Standards defines the IASB’s full set of requirements as
IFRS Standards
IFRS Standards comprise the IAS Standards SIC
Interpretations IFRS Standards and IFRIC Interpretations
adopted or issued by the IASB All of these individual
requirements have equal authority
Transition overlap
When the IASB amends or issues new Standards it provides a period of
transition before the new requirements are mandatory but generally
allows entities to apply the new requirements before the mandatory
date The effect is that there is sometimes a choice of requirements
available to entities For example an entity could continue to apply
IFRS 4 Insurance Contracts in periods beginning 1 January 2019 or it could
elect to apply IFRS 17 Insurance Contracts
The IASB produces two volumes of Standards and Interpretations –
the Blue and Red Books
Blue Book The Standards and Interpretations that an entity
would apply if it elected not to apply any new
requirements before the mandatory date This
volume does not include the versions of Standards
or Interpretations that have an effective date
after 1 January of that year For example the 2019
volume includes IFRS 4 Insurance Contracts but not
IFRS 17 Insurance ContractsIFRS in your pocket |2019
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Red Book The Standards and Interpretations that an
entity would apply if they applied all of the new
requirements earlier than required This volume
does not include the versions of Standards or
Interpretations that those new requirements are
replacing For example the 2019 volume includes
IFRS 17 Insurance Contracts but not IFRS 4 Insurance
Contracts
The IASB also produces annotated versions of these volumes that
reproduce the agenda decisions issued by the IFRS Interpretations
Committee and crossreferences to the basis for conclusions and
related Standards or Interpretations
Unaccompanied Standards and Interpretations are available
on the IFRS Foundation website httpwwwifrsorgissued
standardslistofstandards The versions are a mixture of
extracts from the RED and BLUE Books and are updated at the
beginning of each calendar year
The nonmandatory implementation and illustrative guidance
and bases for conclusions that accompany the Standards and
Interpretations are not freely available IASB pronouncements
and publications can be purchased in printed and electronic
formats from the IFRS Foundation
IFRS Foundation Publications department orders and enquiries
Telephone +44 (0) 20 7332 2730 | Fax +44 (0) 20 7332 2749
Website httpshopifrsorg | email publications@ifrsorg
In the sections that follow we have summarised the requirements of
the Standards and Interpretations on issue at 1 January 2019 These
summaries are intended as general information and are not a substitute
for reading the entire Standard or Interpretation
Preface to International Financial Reporting Standards
Covers among other things the objectives of the IASB the scope
of IFRS Standards due process for developing Standards and
Interpretations equal status of bold type’ and plain type’ paragraphs
policy on effective dates and use of English as the official language
Adopted by the IASB in May 2002 amended in 2007 2008 and 2010IFRS in your pocket |2019
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Conceptual Framework for Financial Reporting
Overview Describes the objective of and the concepts for
general purpose financial reporting
Purpose and
status
Assists the IASB to develop Standards that are
based on consistent concepts preparers to
develop consistent accounting policies when no
Standard applies to a particular transaction or
other event or when a Standard allows a choice
of accounting policy and all parties to understand
and interpret the Standards
It is not a Standard and sits outside of IFRS
Standards Nothing in the Framework overrides any
Standard or any requirement in a Standard
The Objective
of General
Purpose
Financial
Reporting
The objective of general purpose financial
reporting is to provide financial information about
the reporting entity that is useful to existing and
potential investors lenders and other creditors in
making decisions relating to providing resources to
the entity
Those decisions include buying selling or holding
equity and debt instruments providing or settling
loans and other forms of credit exercising rights to
vote on or otherwise influence management
General purpose financial reports provide
information about the resources of and claims
against an entity and the effects of transactions
and other events on those resources and claims
Qualitative
Characteristics
of Useful
Financial
Information
For financial information to be useful it needs
to meet the qualitative characteristics set out
in the Framework The fundamental qualitative
characteristics are relevance and faithful
representation
Financial reports represent economic phenomena
in words and numbers To be useful financial
information must not only represent relevant
phenomena but it must also faithfully represent
the substance of the phenomena that it purports
to representIFRS in your pocket |2019
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Faithful representation means the information
must be complete neutral and free from error
Neutrality is supported by exercising caution
when making judgements under conditions of
uncertainty which is referred to in the Framework
as prudence Such prudence does not imply a
need for asymmetry for example a systematic
need for more persuasive evidence to support
the recognition of assets or income than the
recognition of liabilities or expenses Such
asymmetry is not a qualitative characteristic of
useful financial information
Financial information is also more useful if it is
comparable verifiable timely and understandable
Financial
Statements
and the
Reporting
Entity
Financial statements are prepared from the
perspective of an entity as a whole rather than
from the perspective of any particular group of
investors lenders or other creditors (the entity
perspective)
Financial statements are prepared on the
assumption that the reporting entity is a going
concern and will continue in operation for the
foreseeable future
A reporting entity is an entity that chooses or is
required to prepare financial statements Obvious
examples include a single legal structure such as
an incorporated company and a group comprising
a parent and its subsidiaries
A reporting entity need not be a legal entity
although this makes it more difficult to establish
clear boundaries when it is not a legal entity or a
parentsubsidiary group When a reporting entity
is not a legal entity the boundary should be set by
focusing on the information needs of the primary
users A reporting entity could also be a portion
of a legal entity such as a branch or the activities
within a defined region
The Framework acknowledges combined financial
statements These are financial statements
prepared by a reporting entity comprising two
or more entities that are not linked by a parent
subsidiary relationship However the Framework
does not discuss when or how to prepare themIFRS in your pocket |2019
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The Elements
of Financial
Statements
An asset is a present economic resource controlled
by the entity as a result of past events
An economic resource is a set of rights – the right
to use sell or pledge the object as well as other
undefined rights In principle each right could be
a separate asset However related rights will most
commonly be viewed collectively as a single asset
that forms a single unit of account
Control links a right to an entity and is the present
ability to direct how a resource is used so as to
obtain the economic benefits from that resource
(power and benefits) An economic resource can be
controlled by only one party at any point in time
A liability is a present obligation of the entity to
transfer an economic resource as a result of past
events An obligation is a duty or responsibility that
an entity has no practical ability to avoid
An entity may have no practical ability to avoid a
transfer if any action that it could take to avoid
the transfer would have economic consequences
significantly more adverse than the transfer itself
The goingconcern basis implies that an entity has
no practical ability to avoid a transfer that could be
avoided only by liquidating the entity or by ceasing
to trade
If new legislation is enacted a present obligation
arises only when an entity obtains economic
benefits or takes an action within the scope of that
legislation The enactment of legislation is not in
itself sufficient to give an entity a present obligation
The focus is on the existence of an asset or liability
It does not need to be certain or even likely that
the asset will produce (or the obligation will require
an entity to transfer) economic benefits It is only
necessary that in at least one circumstance it would
produce (or require an entity to transfer) economic
benefits however remote that occurrence might be
The unit of account is the right or the group of rights
the obligation or the group of obligations or the
group of rights and obligations to which recognition
criteria and measurement concepts are appliedIFRS in your pocket |2019
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The unit of account recognition and measurement
requirements for a particular item are linked and
the IASB will consider these aspects together when
developing Standards It is possible that the unit of
account for recognition will differ from that used
for measurement for a particular matter – eg a
Standard might require contracts to be recognised
individually but measured as part of a portfolio
Equity is the residual interest in the assets of the
entity after deducting all its liabilities
Income is increases in assets or decreases in
liabilities that result in increases in equity other
than those relating to contributions from holders of
equity claims
Expenses are decreases in assets or increases in
liabilities that result in decreases in equity other
than those relating to distributions to holders of
equity claims
Recognition
and
Derecognition
Recognition is the process of capturing for
inclusion in the statement of financial position or
the statement(s) of financial performance an item
that meets the definition of one of the elements of
financial statements – an asset a liability equity
income or expenses
The Framework requires recognition when this
provides users of financial statements with relevant
information and a faithful representation of the
underlying transaction
The recognition criteria do not include a probability
or a reliable measurement threshold Uncertainty
about the existence of an asset or liability or a
low probability of a flow of economic benefits are
circumstances when recognition of a particular asset
or liability might not provide relevant information
There is also a tradeoff between a more relevant
measure that has a high level of estimation
uncertainty and a less relevant measure that has
lower estimation uncertainty Some uncertainties
could lead to more supplementary information being
required In limited circumstances the measurement
uncertainty associated with all relevant measures
could lead to the IASB concluding that the asset or
liability should not be recognised IFRS in your pocket |2019
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Derecognition is the removal of all or part of
a recognised asset or liability from an entity’s
statement of financial position and normally occurs
when that item no longer meets the definition of an
asset or of a liability The derecognition principles
aim to represent faithfully any assets and liabilities
retained and any changes in the entity’s assets and
liabilities as a result of that transaction Sometimes
an entity will dispose of only part of an asset or a
liability or retain some exposure The Framework
sets out the factors that the IASB should consider
when assessing whether full derecognition is
achieved when derecognition supported by
disclosure is necessary and when it might be
necessary for an entity to continue to recognise the
transferred component
Measurement Describes two measurement bases historical cost
and current value It asserts that both bases can
provide predictive and confirmatory value to users
but one basis might provide more useful information
than the other under different circumstances
Historical cost reflects the price of the transaction
or other event that gave rise to the related
asset liability income or expense A current
value measurement reflects conditions at the
measurement date Current value includes fair
value value in use (for assets) and fulfilment value
(for liabilities) and current cost
In selecting a measurement basis it is important
to consider the nature of the information that
the measurement basis will produce in both the
statement of financial position and the statement of
financial performance The relative importance of
the information presented in these statements will
depend on facts and circumstances
The characteristics of the asset or liability and how
it contributes to future cash flows are two of the
factors that the IASB will consider when it decides
which measurement basis provides relevant
information For example if an asset is sensitive
to market factors fair value might provide more
relevant information than historical cost However
depending on the nature of the entity’s business
activities and thus how the asset is expected to
contribute to future cash flows fair value might
not provide relevant information This could be the
case if the entity holds the asset solely for use or to
collect contractual cash flows rather than for sale IFRS in your pocket |2019
22
A high level of measurement uncertainty does not
render a particular measurement basis irrelevant
However as explained in the recognition section
there can be a tradeoff between relevance and
faithful representation
The Framework does not preclude the use of
different measurement bases for an asset or a
liability in the statement of financial position and
the related income and expenses in the statement
of financial performance However it notes that in
most cases using the same measurement basis
in both statements would provide the most useful
information
It would be normal for the IASB to select the same
measurement basis for the initial measurement
of an asset or a liability that will be used for its
subsequent measurement to avoid recognising
a day2 gain or loss’ due solely to a change in
measurement basis
Presentation
and Disclosure
Presentation and disclosure objectives in
Standards can support effective communication
The Framework requires the IASB to consider the
balance between giving entities the flexibility
to provide relevant information and requiring
information that is comparable
The statement of profit or loss is the primary
source of information about an entity’s financial
performance for the reporting period The
Framework presumes that all income and expenses
are presented in profit or loss Only in exceptional
circumstances will the IASB decide to exclude an
item of income or expense from profit or loss and
include it in OCI (other comprehensive income)
and only for income or expenses that arise from a
change in the current value of an asset of liability
The Framework also presumes that items presented
in OCI will eventually be reclassified from OCI to
profit or loss but reclassification must provide
more relevant information than not reclassifying
the amounts
Concepts
of Capital
and Capital
Maintenance
Sets out some highlevel concepts of physical and
financial capital This chapter has been carried
forward unchanged from the 2010 Framework
(which in turn was carried forward from the
1989 Framework)IFRS in your pocket |2019
23
Changes
effective this
year
None
Pending
changes
The IASB has amended the definition of material
This amendment will be effective for annual periods
beginning on or after 1 January 2020
History Originally approved by the IASC in April 1989 the
Conceptual Framework for Financial Reporting was
adopted by the IASB in April 2001
In 2005 the IASB started working with the US
FASB to develop a common Framework This led
to the IASB issuing a revised Framework in 2010
that included two chapters that were also issued
by the FASB (Chapter 1 The objective of general
purpose financial reporting and Chapter 3 Qualitative
characteristics of useful financial information)
In 2018 the IASB issued a revised Framework which
came into effect immediately Five of the chapters
are new or have been revised substantially
Financial statements and the reporting entity The
elements of financial statements Recognition and
derecognition Measurement and Presentation
and disclosure It also reintroduces the terms
stewardship and prudence
The Framework adopted by the IASB in 2001 and
the Framework issued in 2010 are still referred to
by some Standards so remain in effect alongside
the new 2018 FrameworkIFRS in your pocket |2019
24
IAS 1 Presentation of Financial Statements
IAS 2 Inventories
IAS 7 Statement of Cash Flows
IAS 8 Accounting Policies Changes in Accounting Estimates and
Errors
IAS 10 Events after the Reporting Period
IAS 12 Income Taxes
IAS 16 Property Plant and Equipment
IAS 19 Employee Benefits
IAS 20 Accounting for Government Grants and Disclosure of
Government Assistance
IAS 21 The Effects of Changes in Foreign Exchange Rates
IAS 23 Borrowing Costs
IAS 24 Related Party Disclosures
IAS 26 Accounting and Reporting by Retirement Benefit Plans
IAS 27 Separate Financial Statements
IAS 28 Investments in Associates and Joint Ventures
IAS 29 Financial Reporting in Hyperinflationary Economies
IAS 32 Financial Instruments Presentation
IAS 33 Earnings per Share
IAS 34 Interim Financial Reporting
IAS 36 Impairment of Assets
IAS 37 Provisions Contingent Liabilities and Contingent Assets
IAS 38 Intangible Assets
IAS 39 Financial Instruments Recognition and Measurement
IAS 40 Investment Property
IAS 41 Agriculture
IFRS 1 Firsttime Adoption of International Financial Reporting
Standards
IFRS 2 Sharebased Payment
Standards and InterpretationsIFRS in your pocket |2019
25
IFRS 3 Business Combinations
IFRS 4 Insurance Contracts
IFRS 5 Noncurrent Assets Held for Sale and Discontinued
Operations
IFRS 6 Exploration for and Evaluation of Mineral Resources
IFRS 7 Financial Instruments Disclosures
IFRS 8 Operating Segments
IFRS 9 Financial Instruments
IFRS 10 Consolidated Financial Statements
IFRS 11 Joint Arrangements
IFRS 12 Disclosure of Interests in Other Entities
IFRS 13 Fair Value Measurement
IFRS 14 Regulatory Deferral Accounts
IFRS 15 Revenue from Contracts with Customers
IFRS 16 Leases
IFRS 17 Insurance ContractsIFRS in your pocket |2019
26
SIC7 Introduction of the Euro
SIC10 Government Assistance – No Specific Relation to Operating
Activities
SIC25 Income Taxes – Changes in the Tax Status of an Entity or its
Shareholders
SIC29 Service Concession Arrangements Disclosures
SIC32 Intangible Assets – Web Site Costs
IFRIC 1 Changes in Existing Decommissioning Restoration and
Similar Liabilities
IFRIC 2 Members’ Shares in Cooperative Entities and Similar
Instruments
IFRIC 5 Rights to Interests Arising from Decommissioning
Restoration and Environmental Rehabilitation Funds
IFRIC 6 Liabilities arising from Participating in a Specific Market –
Waste Electrical and Electronic Equipment
IFRIC 7 Applying the Restatement Approach under IAS 29 Financial
Reporting in Hyperinflationary Economies
IFRIC 10 Interim Financial Reporting and Impairment
IFRIC 12 Service Concession Arrangements
IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset Minimum
Funding Requirements and their Interaction
IFRIC 16 Hedges of a Net Investment in a Foreign Operation
IFRIC 17 Distributions of Noncash Assets to Owners
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
IFRIC 21 Levies
IFRIC 22 Foreign Currency Transactions and Advance Consideration
IFRIC 23 Uncertainty over Income Tax Treatments
InterpretationsIFRS in your pocket |2019
27
New requirements for 2019
Nine new requirements took effect for annual periods beginning on or
after 1 January 2019
Standards
IFRS 16 Leases
Interpretations
IFRIC 23 Uncertainty over Income Tax Treatments
Amendments
IAS 12 Income Tax Consequences of Payments on Financial
Instruments Classified as Equity (Annual Improvements
2015–2017 Cycle)
IAS 19 Plan Amendment Curtailment or Settlement
IAS 23 Borrowing Costs Eligible for Capitalisation
(Annual Improvements 2015–2017 Cycle)
IAS 28 Longterm Interests in Associates and Joint Ventures
IFRS 3 Previously Held Interest in a Joint Operation
(Annual Improvements 2015–2017 Cycle)
IFRS 9 Prepayment Features with Negative Compensation
IFRS 11 Previously Held Interest in a Joint Operation
(Annual Improvements 2015–2017 Cycle)
When an entity has applied a new IFRS Standard or an amendment
to an IFRS Standard IAS 8 Accounting Policies Changes in Accounting
Estimates and Errors requires the entity to disclose information about
that change if it is material
When an entity has not applied a new IFRS Standard or an amendment
to an IFRS Standard that has been issued but is not yet mandatory the
entity must state that fact and provide information it knows or can
reasonably estimate about the possible effect that application will have
on its financial statements in the period of initial applicationIFRS in your pocket |2019
28
Annual periods beginning on or after 1 January 2020
Conceptual Framework
Amendments to the Conceptual Framework for Financial Reporting
including amendments to references to the Conceptual Framework in IFRS
Standards
Amendments
IFRS 3 Definition of a Business
IAS 1 Definition of Material
IAS 8 Definition of Material
Annual periods beginning on or after 1 January 2021
Standard
IFRS 17 Insurance Contracts1
Further information on the effective dates of Standards amendments
to Standards and Interpretations can be found at httpwwwiasplus
comenstandardseffectivedateseffectiveifrs
1 In 2018 the IASB tentatively decided that the mandatory effective date of IFRS 17 should be
deferred by one year so that entities would be required to apply IFRS 17 for annual periods
beginning on or after 1 January 2022 and that the fixed expiry date for the temporary exemption
in IFRS 4 from applying IFRS 9 should be amended so that all entities would be required to apply
IFRS 9 for annual periods beginning on or after 1 January 2022 An ED proposing these changes is
expected in 2019IFRS in your pocket |2019
29
This section contains the Standards and Interpretations that an
entity preparing financial statements for annual periods beginning
on 1 January 2019 would apply if it elected not to apply any new
requirements before the mandatory date
New Standards often include consequential amendments to
other Standards In the summaries only significant consequential
amendments are identified as new or pending changes
IAS 1 Presentation of Financial Statements
Overview Sets out the overall framework for presenting general
purpose financial statements including guidelines
for their structure and the minimum content
Complete set
of financial
statements
A complete set of financial statements comprises
•• A statement of financial position
•• A statement of profit or loss and other
comprehensive income
•• A statement of changes in equity
•• A statement of cash flows
•• Notes
Entities may use titles for the individual financial
statements other than those used above
Comparative information for the prior period
is required for amounts shown in the financial
statements and the notes
Financial statements are generally prepared
annually If the end of the reporting period changes
and financial statements are presented for a period
other than one year additional disclosures are
required
A third statement of financial position is required
when an accounting policy has been applied
retrospectively or items in the financial statements
have been restated or reclassified
Summaries of Standards and
Interpretations in effect at
1 January 2019IFRS in your pocket |2019
30
Materiality IAS 1 defines what makes information material
to the primary users of the financial statements
It also sets out the line items to be presented in
each of the statements (with the exception of the
statement of cash flows for which IAS 7 sets out the
requirements) and has guidance for when an entity
presents additional line items or subtotals
The IASB issued a Practice Statement in 2017 that
provides guidance on making materiality judgements
when preparing general purpose financial
statements in accordance with IFRS Standards
Statement
of Financial
Position
In the statement of financial position assets and
liabilities are required to be classified as current
or noncurrent unless presenting them in order
of liquidity provides reliable and more relevant
information Assets and liabilities may not be offset
unless offsetting is permitted or required by another
IFRS Standard
Statement of
profit or loss
and other
comprehensive
income
The statement of profit or loss and other
comprehensive income includes all items of income
and expense It can be presented as either a single
statement with a subtotal for profit or loss or as
separate statements of profit or loss and other
comprehensive income Within the profit or loss
section expenses are presented either by their
nature (eg depreciation) or by function (eg cost of
sales) If they are presented by function additional
disclosures about their nature are required to be
presented in the notes Items can only be presented
in other comprehensive income if permitted by an
IFRS Standard and are grouped based on whether
or not they are potentially reclassifiable to profit or
loss at a later date Income and expenses may not be
offset unless offsetting is permitted or required by
another IFRS Standard
There are special presentation requirements for
discontinued activities and assets held for sale –
see IFRS 5
Statement of
changes in
equity
The statement of changes in equity is required
to show the total comprehensive income for the
period the effects on each component of equity
of retrospective application or retrospective
restatement in accordance with IAS 8 and for each
component of equity a reconciliation between
the opening and closing balances disclosing each
change separatelyIFRS in your pocket |2019
31
Notes The notes must include information about the
accounting policies followed the judgements that
management has made in the process of applying
the entity’s accounting policies that have the most
significant effect on the amounts recognised in
the financial statements sources of estimation
uncertainty and management of capital and
compliance with capital requirements
Fundamental
principles
IAS 1 also sets out the fundamental principles for
the preparation of financial statements including
the going concern assumption consistency in
presentation and classification and the accrual basis
of accounting
Interpretations None
Changes
effective
this year
None
Pending
changes
The IASB has amended the definition of material
This amendment is effective for annual periods
beginning on or after 1 January 2020 with earlier
application permitted
References to the Conceptual Framework have
been amended to refer to the new Framework
The amendment is effective for annual periods
beginning on or after 1 January 2020 with earlier
application permitted
IAS 1 is also being reviewed by the IASB as part
of the Disclosure Initiative and Primary Financial
Statement projects
History Issued in the set of improved Standards effective
for annual periods beginning on or after 1 January
2005 It was revised in 2007 to improve owner
equity disclosures and in 2011 to improve OCI
disclosure It was revised in 2014 as part of the
Disclosure InitiativeIFRS in your pocket |2019
32
IAS 2 Inventories
Overview Prescribes the accounting for inventories
Initial
measurement
of inventory
Inventories are stated at the lower of cost and net
realisable value (NRV)
Costs include purchase cost conversion cost
(materials labour and overheads) and other costs
to bring inventory to its present location and
condition but not foreign exchange differences
(see IAS 21)
For inventory that is not interchangeable specific
costs are attributed to the specific individual items
of inventory For interchangeable items cost is
determined on either a First In First Out (FIFO) or
weighted average basis Last In First Out (LIFO) is
not permitted
Cost of goods
sold
When inventory is sold the carrying amount is
recognised as an expense in the period in which the
related revenue is recognised
Impairment Writedowns to NRV are recognised as an expense
in the period the loss occurs Reversals arising from
an increase in NRV are recognised as a reduction of
the inventory expense in the period in which they
occur
Interpretations None
Changes
effective this
year
None
Pending
changes
None
History Issued in the set of improved Standards effective
for annual periods beginning on or after
1 January 2005IFRS in your pocket |2019
33
IAS 7 Statement of Cash Flows
Overview Requires a statement of cash flows to present
information about changes in cash and cash
equivalents classified as operating investing and
financing activities
Cash and cash
equivalents
Cash equivalents include investments that are
shortterm (less than three months from date of
acquisition) readily convertible to a known amount
of cash and subject to an insignificant risk of
changes in value
Operating
investing and
financing cash
flows
Operating activities are the principal revenue
producing activities of the entity and other activities
that are not investing or financing activities
Operating cash flows are reported using either
the direct (recommended) or the indirect method
Cash flows from taxes on income are classified as
operating unless they can be specifically identified
with financing or investing activities
Investing activities are the acquisition and disposal
of longterm assets and other investments not
included in cash equivalents
Financing activities are activities that result
in changes in the size and composition of the
contributed equity and borrowings of the entity
Aggregate cash flows from obtaining or losing
control of subsidiaries are presented separately
and classified as investing activities
Investing and financing transactions that do not
require the use of cash are excluded from the
statement of cash flows but need to be disclosed
Reconciliation
of financing
balances
Entities must reconcile the opening and closing
amounts in the statement of financial position for
items classified as financing activities
Interpretations None
Changes
effective this
year
None
Pending
changes
NoneIFRS in your pocket |2019
34
History Originally issued for periods beginning on or after
1 January 1994 it was adopted by the IASB and
included in the original set of Standards effective
for annual periods beginning on or after 1 January
2005 It was amended to require the disclosures of
changes in liabilities arising from financing activities
effective for annual periods beginning on or after
1 January 2017
IAS 8 Accounting Policies Changes in Accounting
Estimates and Errors
Overview Prescribes the criteria for selecting and changing
accounting policies together with the accounting
treatment and disclosure of changes in accounting
policies changes in estimates and correction of
errors
Selecting
accounting
policies
Entities must apply the Standards and
Interpretations issued by the IASB In the absence
of a directly applicable IFRS Standard entities must
look to the requirements in IFRS Standards that
deal with similar and related issues and failing
that to the Conceptual Framework Entities may
also consider the most recent pronouncements
of other standardsetting bodies that use a similar
conceptual framework other accounting literature
and accepted industry practice
Changes in
accounting
policies
Accounting policies must be applied consistently
to similar transactions Voluntary changes can be
made only if the change results in reliable and more
relevant information
When a change in accounting policy is required by
an IFRS Standard the pronouncement’s transitional
requirements are followed If the new requirement
is not yet mandatory and the entity has not
earlyapplied the change the entity must provide
information it knows or can reasonably estimate
about the possible effect that application will have
on its financial statements when it plans to apply
the new requirements
If the entity makes a change voluntarily the new
policy must be applied retrospectively and prior
periods are restated The Standard provides
relief from retrospective application when it is
impracticable to determine periodspecific effectsIFRS in your pocket |2019
35
Changes in
accounting
estimates
Changes in accounting estimates (eg change
in useful life of an asset) are accounted for
prospectively in the current year or future years or
both The comparative information is not restated
Prior period
errors
All material prior period errors are corrected by
restating comparative prior period amounts and
if the error occurred before the earliest period
presented by restating the opening statement of
financial position
Interpretations None
Changes
effective this
year
None
Pending
changes
The IASB has amended the definition of material
This amendment is effective for annual periods
beginning on or after 1 January 2020 with earlier
application permitted
References to the Conceptual Framework have
been amended to refer to the new Framework
The amendment is effective for annual periods
beginning on or after 1 January 2020 with earlier
application permitted
The IASB has exposed possible changes to
the definitions of an accounting policy and an
accounting estimate with the aim of clarifying the
distinction
The IASB has exposed possible changes to make
it easier to apply a change in an accounting policy
prospectively when they are motivated by an
Agenda Decision
History Issued in the set of improved Standards effective
for annual periods beginning on or after
1 January 2005IFRS in your pocket |2019
36
IAS 10 Events after the Reporting Period
Overview Prescribes when financial statements must be
adjusted for events after the end of the reporting
period and what information must be disclosed
Events after
the end of
the reporting
period
Events after the end of the reporting period are
those that occur between the end of the reporting
period and the date when the financial statements
are authorised for issue
Adjusting
events
The financial statements are adjusted for events
that provide evidence of conditions that existed
at the end of the reporting period (such as the
resolution of a court case after the end of the
reporting period)
Nonadjusting
events
The financial statements are not adjusted for
events that arose after the end of the reporting
period (such as a decline in market prices after
year end) The nature and effect of such events
are disclosed However if the events after the end
of the reporting period indicate that the going
concern assumption is not appropriate those
financial statements are not prepared on a going
concern basis
Dividends proposed or declared after the end of
the reporting period are not recognised as a liability
at the end of the reporting period
Interpretations None
Changes
effective this
year
None
Pending
changes
None
History Issued in the set of improved Standards effective
for annual periods beginning on or after
1 January 2005IFRS in your pocket |2019
37
IAS 12 Income Taxes
Overview Sets out the accounting for current and deferred tax
Current and
deferred tax
Current tax liabilities and assets are recognised
for current and prior period taxes measured at
the rates that have been enacted or substantively
enacted by the end of the reporting period
Deferred tax assets and liabilities are the income
taxes recoverable or payable in future periods
as a result of differences between the amounts
attributed to assets and liabilities from applying
IFRS Standards and the amounts those assets and
liabilities are attributed for tax purposes (called
temporary differences)
Deferred tax
liabilities
Deferred tax liabilities are recognised for the
future tax consequences of all taxable temporary
differences with three exceptions
A deferred tax liability is not recognised when
the temporary difference arises from the initial
recognition of goodwill when at the time of the
transaction the initial recognition of an asset or
liability does not affect either the accounting or the
taxable profit (unless it is a business combination)
and for differences arising from investments
in subsidiaries branches associates and joint
arrangements (eg due to undistributed profits)
when the entity is able to control the timing of the
reversal of the difference and it is probable that the
reversal will not occur in the foreseeable futureIFRS in your pocket |2019
38
Deferred tax
assets
A deferred tax asset is recognised for deductible
temporary differences unused tax losses and unused
tax credits but only to the extent that it is probable
that taxable profit will be available against which the
deductible temporary differences can be utilised
There are two exceptions a deferred tax asset is not
recognised for temporary differences related to the
initial recognition of an asset or liability other than
in a business combination which at the time of the
transaction does not affect the accounting or the
taxable profit and deferred tax assets arising from
deductible temporary differences associated with
investments in subsidiaries branches and associates
and interests in joint arrangements are recognised
only to the extent that it is probable that the
temporary difference will reverse in the foreseeable
future and taxable profit will be available to utilise the
difference
A reassessment of unrecognised deferred tax assets
must be made at the end of each reporting period
Measurement
of deferred tax
Deferred tax liabilities and assets are measured at
the tax rates expected to apply when the liability is
settled or the asset is realised based on tax rates
or laws that have been enacted or substantively
enacted by the end of the reporting period Deferred
tax assets and liabilities are not discounted
The measurement must reflect the tax consequences
that would follow from the manner in which the
entity expects to recover or settle the carrying
amount of its assets and liabilities There is a
rebuttable presumption that recovery of the carrying
amount of an investment property measured at fair
value will be through sale
Presentation
of current and
deferred tax
Current and deferred tax is recognised as income
or expense in profit or loss unless it relates to a
transaction or event that is recognised outside profit
or loss or to a business combination
Deferred tax assets and liabilities are classified as
noncurrent items IFRS in your pocket |2019
39
Interpretations SIC 25 Income Taxes – Changes in the Tax Status of
an Entity or its Shareholders clarifies that the current
and deferred tax consequences of changes in tax
status are included in profit or loss even when they
relate to transactions or events that were previously
recognised outside profit or loss
Changes
effective
this year
IFRIC 23 Uncertainty over Income Tax Treatments
clarifies that entities must assess whether it is
probable that a tax authority (with full knowledge of
all relevant information) will accept an uncertain tax
treatment used in tax filings If so tax accounting
should be consistent with that treatment If not the
effect of uncertainty should be reflected in the tax
accounting applied (using whichever of a most likely
amount’ or expected value’ approach is expected to
better predict the resolution of the uncertainty) IFRIC
23 is effective for annual reporting periods beginning
on or after 1 January 2019
An amendment included in the Annual Improvements
Cycle 2015–2017 clarifies that all income tax
consequences of dividends are classified in the same
way regardless of how the tax arises is effective for
annual reporting periods beginning on or after 1
January 2019
Pending
changes
The IASB is planning to issue an ED that proposes
a narrowscope amendment to IAS 12 The
amendment would narrow the initial recognition
exemption in IAS 12 so that it would not apply
to transactions that give rise to both taxable and
deductible temporary differences to the extent the
amounts recognised for the temporary differences
are the same
History Originally issued for periods beginning on or after
1 January 1998 it was adopted by the IASB and
included in the original set of Standards effective
for annual periods beginning on or after
1 January 2005 It was amended to change how to
measure temporary differences when investment
properties are measured at fair value The
amendments came into effect for annual periods
beginning on or after 1 January 2012 and replaced
SIC21 Income Taxes – Recovery of Revalued Non
Depreciable AssetsIFRS in your pocket |2019
40
IAS 16 Property Plant and Equipment
Overview Sets out the principles for accounting for property
plant and equipment (PP&E)
Initial
recognition and
measurement
PP&E is recognised as an asset when it is probable
that its future economic benefits will flow to the
entity and its cost can be measured reliably This
includes bearer plants used in the production or
supply of agricultural produce
Initial recognition is at cost which includes all costs
necessary to get the asset ready for its intended use
Interest on amounts borrowed for the purposes of
constructing an asset are included in its cost – see
IAS 23
Exchanges of PP&E are measured at fair value
including exchanges of similar items unless the
exchange transaction lacks commercial substance
or the fair value of neither the asset received nor the
asset given up can be measured reliably
Subsequent
measurement
After initial recognition PP&E is either carried at
cost less accumulated depreciation and impairment
(the cost model) or measured at fair value less
accumulated depreciation and impairment between
revaluations (the revaluation model) Any revaluation
surplus on disposal of an asset remains in equity and
is not reclassified to profit or loss
Impairment of PP&E is assessed under IAS 36
Depreciation Depreciation is charged systematically over the
useful life of the asset using a method that reflects
the pattern of benefit consumption to its residual
value Different depreciation methods are acceptable
(including straightline diminishing balance and units
of production) but not a method that is based on the
revenue the asset generates
Components of an asset with differing patterns of
benefits are depreciated separately
The residual value is the amount the entity would
receive currently if the asset were already of the
age and condition expected at the end of its useful
life Useful life and the residual value are reviewed
annuallyIFRS in your pocket |2019
41
Major
inspections
If operation of an item of PP&E (eg an aircraft)
requires regular major inspections the cost of
each major inspection is recognised in the carrying
amount of the asset if the recognition criteria are
satisfied
Previously
rented PP&E
Entities that routinely sell items of PP&E that they
have previously held to rent must transfer the PP&E
to inventory at its carrying amount when it becomes
held for sale The proceeds from the sale of such
assets are recognised in accordance with IFRS 15
Interpretations IFRIC 1 Changes in Existing Decommissioning
Restoration and Similar Liabilities clarifies that the
carrying amount of an asset is adjusted when there
is a change in the estimated decommissioning or
restoration liability related to that asset
IFRIC 20 Stripping Costs in the Production Phase of a
Surface Mine addresses recognition of production
stripping costs and measurement (initial and
subsequent) of that stripping activity asset
Changes
effective
this year
None
Pending
changes
An ED proposing that costs of testing an asset be
recognised as revenue and not a reduction of the
cost of the asset was issued in 2017
History Issued in the set of improved Standards effective for
annual periods beginning on or after 1 January 2005
IAS 19 Employee Benefits
Overview Sets out the accounting and disclosure
requirements for employee benefits including
shortterm benefits (wages annual leave sick leave
annual profitsharing bonuses and nonmonetary
benefits) pensions postemployment life insurance
and medical benefits other longterm employee
benefits (longservice leave disability deferred
compensation and longterm profitsharing and
bonuses) and termination benefitsIFRS in your pocket |2019
42
Basic principle The cost of providing employee benefits is
recognised in the period in which the entity
receives services from the employee rather than
when the benefits are paid or payable
Shortterm employee benefits (expected to be
settled wholly before 12 months after the annual
period in which the services were rendered) are
recognised as an expense in the period in which
the employee renders the service Unpaid benefit
liability is measured at an undiscounted amount
Profitsharing and bonus payments are recognised
only when the entity has a legal or constructive
obligation to pay them and the costs can be
estimated reliably
Post
employment
benefits
Postemployment benefit plans (such as pensions
and health care) are categorised as either defined
contribution plans or defined benefit plans
Defined
contribution
plans
Expenses are recognised in the period in which the
contribution is payable
Defined
benefit plans
A liability (or asset) is recognised equal to the net of
the present value of the obligations under the defined
benefit plan and the fair value of the plan assets at
the end of the reporting period The present value is
calculated using a rate determined with reference to
market yields on highquality corporate bonds
Plan assets include assets held by a longterm
employee benefit fund and qualifying insurance
policies
A defined benefit asset is limited to the lower of the
surplus in the defined benefit plan and present value
of any economic benefits available in the form
of refunds from the plan or reductions in future
contributions to the plan
The change in the defined benefit liability or asset
is separated into the service cost net interest and
remeasurements
The service cost is the increase in the present value of
the defined benefit obligation resulting from the service
of employees in the current period and any change in
the present value related to employee service in prior
periods that results from plan amendments
The service cost is recognised in profit or lossIFRS in your pocket |2019
43
Net interest is the change in the liability (asset)
caused by the passage of time and is recognised in
profit or loss
Remeasurements include actuarial gains or losses
(such as changes in actuarial assumptions) and the
return on plan assets and are recognised in OCI
For group plans the net cost is recognised in
the separate financial statements of the entity
that is legally the sponsoring employer unless
a contractual agreement or stated policy for
allocating the cost exists
Other long
term benefits
Other longterm employee benefits are
recognised and measured in the same way as
postemployment benefits under a defined benefit
plan However unlike defined benefit plans
remeasurements are recognised immediately in
profit or loss
Termination benefits are recognised at the earlier
of when the entity can no longer withdraw the offer
of the benefits and when the entity recognises
costs for a restructuring that is within the scope
of IAS 37 and involves the payment of termination
benefits
Interpretations IFRIC 14 IAS 19 – The Limit on a Defined Benefit
Asset Minimum Funding Requirements and their
Interaction addresses when refunds or reductions
in future contributions should be regarded as being
available’ how a minimum funding requirement
might affect the availability of reductions in future
contributions and when a minimum funding
requirement might give rise to a liability
Changes
effective
this year
IAS 19 is amended to require that when a plan
amendment or curtailment occurs the current
service cost and net interest for the remainder
of an annual period are calculated using updated
assumptions The amendments are effective for
annual periods beginning on or after 1 January 2019
Pending
changes
The IASB has proposed amending IFRIC 14 to clarify
the accounting when other parties have rights
to make particular decisions about a company’s
defined benefit plan
The IASB has also decided to review the
requirements for pension benefits that depend on
asset returnsIFRS in your pocket |2019
44
History The IASB adopted the 1993 version of IAS 19 as part
of the original set of standards in 2005 In 2011 the
IASB made several amendments to IAS 19 including
eliminating an option (the corridor method) that
allowed entities to defer the recognition of changes
in a defined benefit liability
IAS 20 Accounting for Government Grants and
Disclosure of Government Assistance
Overview Prescribes the accounting for and disclosure of
government grants and other forms of government
assistance
Recognition of
Government
Grants
A government grant is recognised only when there
is reasonable assurance that the entity will comply
with the conditions attached to the grant and it
will be received Nonmonetary grants are usually
recognised at fair value although recognition at
nominal value is permitted
The benefit of government loans with a below
market rate of interest is a government grant –
measured as the difference between the initial
carrying amount of the loan determined in
accordance with IFRS 9 and the proceeds received
Presentation Grants are recognised in profit or loss over the periods
necessary to match them with the related costs
Incomerelated grants are either presented
separately as income or as a reduction of the related
expense
Assetrelated grants are either presented as
deferred income in the statement of financial
position or deducted in arriving at the carrying
amount of the asset
Interpretations S I C10 Government Assistance – No Specific
Relation to Operating Activities clarifies that
government assistance to entities that is aimed at
encouragement or longterm support of business
activities either in specific regions or industry
sectors is a government grant
Changes
effective
this year
NoneIFRS in your pocket |2019
45
Pending
changes
None
History Originally issued for periods beginning on or after
1 January 1984 it was adopted by the IASB and
included in the original set of Standards effective
for annual periods beginning on or after
1 January 2005
IAS 21 The Effects of Changes in Foreign Exchange Rates
Overview Prescribes the accounting for foreign currency
transactions and foreign operations
Functional
currency
An entity’s functional currency is the currency of the
primary economic environment in which the entity
operates All foreign currency items are translated
into that currency
Exchange
differences on
transactions
Transactions are recognised on the date that they
occur using the exchange rate on that date for initial
recognition and measurement
Exchange
differences
on translation
at the end of
a reporting
period
At the end of a reporting period nonmonetary
items carried at historical amounts continue to be
measured using transactiondate exchange rates
monetary items are retranslated using the closing
rate and nonmonetary items carried at fair value are
measured at valuationdate exchange rates
Exchange differences arising on settlement or
translation of monetary items are included in profit
or loss with one exception Exchange differences
arising on monetary items that are part of the
reporting entity’s net investment in a foreign
operation are recognised in the consolidated
financial statements that include the foreign
operation in other comprehensive income Such
differences are reclassified from equity to profit or
loss on disposal of the net investmentIFRS in your pocket |2019
46
Translation of
the financial
statements
into the
presentation
currency
When an entity has a presentation currency that is
different from its functional currency the results
and financial position are translated into that
presentation currency
Assets (including goodwill arising on the acquisition
of a foreign operation) and liabilities for each
statement of financial position presented (including
comparatives) are translated at the closing rate at
the date of each statement
Income and expenses for each period presented
(including comparatives) are translated at exchange
rates at the dates of the transactions
All resulting exchange differences are recognised as
other comprehensive income and the cumulative
amount is presented in a separate component of
equity until disposal of the foreign operation
Special rules exist for translating the results and
financial position of an entity whose functional
currency is hyperinflationary
Interpretations SIC7 Introduction of the Euro explains how IAS 21
applied when the Euro was first introduced and
when new EU Members join the Eurozone
The IFRS 9 summary includes a summary of IFRIC 16
Hedges of a Net Investment in a Foreign Operation
IFRIC 22 Foreign Currency Transactions and Advance
Consideration clarifies that when consideration
denominated in a foreign currency is paid or received
in advance the exchange rate to use on initial
recognition is the rate on the date on which the
payment in advance is initially recognised
Changes
effective this
year
None
Pending
changes
None
History Issued in the set of improved Standards effective for
annual periods beginning on or after 1 January 2005IFRS in your pocket |2019
47
IAS 23 Borrowing Costs
Overview Prescribes the accounting when borrowings are
made to acquire or construct an asset
Recognition
of borrowing
costs as a cost
of construction
Borrowing costs directly attributable to the
acquisition or construction of a qualifying asset are
included in the cost of that asset All other borrowing
costs are expensed when incurred
A qualifying asset is one that takes a substantial
period of time to make it ready for its intended use
or sale
If funds are borrowed generally and used for
the purpose of obtaining a qualifying asset a
capitalisation rate (using a weighted average of
the borrowing costs over the period) is used The
borrowing costs eligible for capitalisation cannot
exceed the amount of borrowing costs incurred
Interpretations None
Changes
effective
this year
IAS 23 is amended to clarify that when a qualifying
asset is ready for its intended use or sale a company
treats any outstanding borrowing to obtain that
qualifying asset as part of general borrowings The
amendments are effective for annual periods
beginning on or after 1 January 2019
Pending
changes
None
History Issued in 1993 it was included in the initial set
of Standards adopted for 2005 The option of
immediate recognition of borrowing costs as an
expense was removed for annual periods beginning
on or after 1 January 2009
IAS 24 Related Party Disclosures
Overview Sets out disclosure requirements to make investors
aware that the financial position and results of
operations may have been affected by the existence
of related partiesIFRS in your pocket |2019
48
Related party A related party is a person or entity that is related to
the reporting entity
A related party includes a person who has or has
a close family member who has control or joint
control of or significant influence over the reporting
entity or is a member of its or its parent’s key
management personnel Entities that such a person
controls jointly controls has significant influence
over or of which they are a member of the key
management personnel are also related parties
Another entity is related to the reporting entity if it
is a member of the same group either entity is an
associate or a joint venture of the other they are
joint ventures of the same third party one entity is
a joint venture of a third entity and the other entity
is an associate of the third entity the other entity is
a postemployment benefit plan for the benefit of
employees of either the reporting entity or an entity
related to the reporting entity or the entity or any
member of a group of which it is a part provides key
management personnel services to the reporting
entity or to the parent of the reporting entity
Disclosure The Standard requires disclosure of relationships
involving control even when there have been no
transactions
For related party transactions disclosure is required
of the nature of the relationship and with sufficient
information to enable an understanding of the
potential effect on the transactions
There is a partial exemption for governmentrelated
entities
Interpretations None
Changes
effective this
year
None
Pending
changes
NoneIFRS in your pocket |2019
49
History The 1993 version was Included in the initial set
of Standards adopted for 2005 It was revised for
annual periods beginning on or after 1 January 2011
to give partial relief for governmentrelated entities
IAS 26 Accounting and Reporting by Retirement Benefit
Plans
Overview Specifies the measurement and disclosure principles
for the financial reports of retirement benefit plans
Summary Sets out the reporting requirements for the
reporting by defined contribution and defined
benefit plans including the need for actuarial
valuation of the benefits for defined benefits and the
use of fair values for plan investments
Interpretations None
Changes
effective
this year
None
Pending
changes
None
History Originally issued in 1987 it was included in the
original set of Standards effective for annual periods
beginning on or after 1 January 2005
IAS 27 Separate Financial Statements
Overview Prescribes the accounting for investments in
subsidiaries joint ventures and associates in
separate financial statements
Accounting In separate financial statements investments in
subsidiaries associates and joint ventures are
accounted for either at cost or as investments in
accordance with IFRS 9 or using the equity method
as described in IAS 28
Interpretations NoneIFRS in your pocket |2019
50
Changes
effective this
year
None
Pending
changes
None
History Included in the initial set of improved Standards
adopted for 2005
In 2011 IAS 27 was revised and renamed when the
requirements for consolidated financial statements
were moved from IAS 27 into IFRS 10 effective
for periods beginning on or after 1 January 2013
It was amended in 2012 to add disclosures about
investment entities and in 2014 to allow a parent
to use the equity method for its investments in
subsidiaries associates and joint ventures in its
separate financial statements
IAS 28 Investments in Associates and Joint Ventures
Overview Sets out the accounting when an entity has an
investment in an associate or joint venture
Definition of
an associate
An associate is an entity over which the investor
has significant influence There is a rebuttable
presumption that an investor that holds an
investment directly and indirectly of 20 per cent
or more of the voting power of the investee has
significant influence
The guidance for assessing joint control and whether
an entity has an investment in a joint venture is set
out in IFRS 11
Accounting
method
The equity method is used to account for
investments in associates and joint ventures
However if the investor is a venture capital firm
mutual fund unit trust or a similar entity it can elect
to measure such investments at fair value through
profit or loss in accordance with IFRS 9
When the investor is presenting its separate financial
statements it accounts for an investment in an
associate or a joint venture in accordance with IAS
27IFRS in your pocket |2019
51
The equity
method
The investment is recorded initially at cost and is
subsequently adjusted by the investor’s share of
changes in the investee’s net assets
The investor’s statement of comprehensive income
reflects its share of the investee’s postacquisition
profit or loss
The accounting policies of the associate and joint
venture need to be the same as those of the
investor for like transactions and events in similar
circumstances However if an entity that is not
itself an investment entity but has an interest in
an associate or joint venture that is an investment
entity the entity is permitted to retain the fair
value measurements applied by an investment
entity associate or joint venture to its interests in
subsidiaries
The end of the reporting period of an associate
or a joint venture cannot be more than three months
different from the investor’s end of the reporting
period
Impairmentt Equity method investments are assessed for
impairment in accordance with IAS 36 The
impairment indicators in IFRS 9 apply An investment
in an associate or joint venture is treated as a single
asset for impairment purposes
Changes in
ownership
interest
When an entity stops using the equity method (for
example as a result of a change in ownership) the
investment retained is remeasured to its fair value
with any gain or loss recognised in profit or loss
For transactions involving assets that constitute a
business (see IFRS 3) the gain or loss is recognised
in full Thereafter IFRS 9 is applied to the remaining
holding unless the investment becomes a subsidiary
in which case the investment is accounted for in
accordance with IFRS 3
Interpretations None
Changes
effective
this year
IAS 28 is amended to clarify that an entity’s interests
longterm interests in an associate or joint venture
that form part of its net investment in the associate
or joint venture are subject to the impairment
requirements in IFRS 9 This amendment is effective
for annual periods beginning on or after
1 January 2019IFRS in your pocket |2019
52
Pending
changes
Amendments issued in September 2014 clarify
that in a transaction involving an associate or joint
venture the extent of gain or loss recognition
depends on whether the assets sold or contributed
are a business However the IASB decided in
December 2015 to defer indefinitely the effective
date of the amendments although entities may elect
to apply them
The IASB is planning a research project to assess
whether practice problems that arise using the
equity method (for investments in associates and
joint ventures) could be addressed by amending
the equity method or whether a more fundamental
review is needed
History Included in the initial set of improved Standards
adopted for 2005 but revised when IFRS 10 was
issued with effect for annual periods beginning on or
after 1 January 2013
IAS 29 Financial Reporting in Hyperinflationary
Economies
Overview Sets out the requirements for entities reporting in
the currency of a hyperinflationary economy
Hyperinflation Generally an economy is hyperinflationary when
the cumulative inflation rate over three years is
approaching or exceeds 100 per cent
Change in
measurement
basis
When an entity’s functional currency is the currency
of a hyperinflationary economy its financial
statements are restated so that all amounts are
measured at current amounts at the end of the
reporting period The adjusting gain or loss on the
net monetary position is recognised in profit or loss
Comparative figures for prior period(s) are also
restated into the same current measuring unit
When an
economy is
no longer
hyperinflationary
When an economy ceases to be hyperinflationary
the amounts expressed in the measuring unit
current at the end of the previous reporting period
become the basis for the carrying amounts in
subsequent financial statementsIFRS in your pocket |2019
53
Interpretations IFRIC 7 Applying the Restatement Approach under
IAS 29 clarifies that when the economy of an entity’s
functional currency becomes hyperinflationary the
entity applies the requirements of IAS 29 as though
the economy had always been hyperinflationary
Changes
effective
this year
None
Pending
changes
The IASB plans to examine a scope extension of this
Standard to cover economies subject to only high
inflation
History Originally issued for periods beginning on or after
1 January 1990 it was adopted by the IASB and
included in the original set of Standards effective for
annual periods beginning on or after 1 January 2005
IAS 32 Financial Instruments Presentation
Overview Prescribes the accounting for classifying and
presenting financial instruments as liabilities or equity
and for offsetting financial assets and liabilities
Classification Classification of an instrument is based on its
substance rather than its form and the assessment
is made at the time of issue and is not altered
subsequently
An equity instrument is an instrument that evidences
a residual interest in the assets of the entity after
deducting all of its liabilities
A financial liability is an instrument that obligates an
entity to deliver cash or another financial asset or
the holder has a right to demand cash or another
financial asset Examples are bank loans and
trade payables but also mandatorily redeemable
preference shares
Puttable instruments and instruments that impose
on the entity an obligation to deliver a prorata
share of net assets only on liquidation that are
subordinate to all other classes of instruments and
meet additional criteria are classified as equity
instruments even though they would otherwise meet
the definition of a liabilityIFRS in your pocket |2019
54
An issuer classifies separately the debt and equity
components of a single compound instrument such
as convertible debt at the time of issue
The cost of treasury shares is deducted from equity
Resales of treasury shares are accounted for as
equity issuances
Cost Costs of issuing or reacquiring equity instruments
are accounted for as a deduction from equity
Offsetting Financial assets and liabilities can only be offset and
the net amount reported when an entity has a legally
enforceable right to set off the amounts and intends
either to settle on a net basis or simultaneously
Statement
of financial
performance
Interest dividends gains and losses relating to an
instrument classified as a liability are reported as
income or expense
Interpretations IFRIC 2 Members’ Shares in Cooperative Entities and
Similar Instruments clarifies that these are liabilities
unless the coop has the legal right not to redeem
on demand
Changes
effective
this year
None
Pending
changes
The IASB is exploring whether it can improve the
requirements in IAS 32 for classifying financial
instruments into equity and liabilities and issued a
DP in 2018
History Issued in the set of improved Standards effective for
annual periods beginning on or after 1 January 2005
In December 2005 all of the disclosure requirements
were moved to IFRS 7 The IASB also amended IAS 32
for puttable financial instruments in October 2009
IAS 33 Earnings per Share
Overview Sets out the principles for measuring and presenting
earnings per share (EPS)
Scope Applies to publiclytraded entities entities in the
process of issuing such shares and any other entity
voluntarily presenting EPSIFRS in your pocket |2019
55
EPS Requires the presentation of basic and diluted EPS
for each class of ordinary share that has a different
right to share in profit for the period The measures
must be presented with equal prominence
EPS is reported for profit or loss attributable to
equity holders of the parent entity for profit or
loss from continuing operations attributable to
equity holders of the parent entity and for any
discontinued operations EPS on discontinued
operations can be presented in the notes
Basic EPS
calculation
The numerator is earnings after deduction of all
expenses including tax and after deduction of non
controlling interests and preference dividends
The denominator is the weighted average number
of shares outstanding during the period
Diluted EPS
calculation
Dilution is a reduction in EPS on the assumption that
convertible instruments are converted that options
or warrants are exercised or that ordinary shares are
issued when specified conditions are met
The numerator is the profit for the period
attributable to ordinary shares increased by
the aftertax amount of dividends and interest
recognised in the period in respect of the dilutive
potential ordinary shares (such as options
warrants convertible securities and contingent
insurance agreements) and adjusted for any
other changes in income or expense that would
result from the conversion of the dilutive potential
ordinary shares
The denominator is adjusted for the number of
shares that would be issued on the conversion
of all of the dilutive potential ordinary shares into
ordinary shares
Antidilutive potential ordinary shares are excluded
from the calculation
Interpretations None
Changes
effective
this year
None
Pending
changes None
History Issued in the set of improved Standards effective for
annual periods beginning on or after 1 January 2005IFRS in your pocket |2019
56
IAS 34 Interim Financial Reporting
Overview Prescribes the minimum content of an interim
financial report and the recognition and
measurement principles for an interim financial
report
Scope An interim financial report is a complete or
condensed set of financial statements for a period
shorter than an entity’s full financial year
IAS 34 applies only when an entity is required by a
regulator or elects to publish an interim financial
report in accordance with IFRS Standards
Content The minimum components of an interim financial
report are condensed versions of the primary
financial statements
The notes in an interim financial report provide an
explanation of events and transactions significant
to understanding the changes since the last annual
financial statements IAS 34 lists specific items that
are presumed to be necessary in understanding
such changes
Principles Materiality is based on interim financial data not
forecast annual amounts
The accounting policies are the same as for the
annual report
Revenue and costs are recognised when they occur
not if they are anticipated or deferred
Interpretations IFRIC 10 Interim Financial Reporting and Impairment
clarifies that when an entity has recognised an
impairment loss in an interim period in respect
of goodwill or an investment in either an equity
instrument or a financial asset carried at cost that
impairment is neither reversed in subsequent
interim financial statements nor in annual financial
statements
Changes
effective
this year
None
Pending
changes
NoneIFRS in your pocket |2019
57
History Originally issued in 2000 it was adopted by the
IASB and included in the original set of Standards
effective for annual periods beginning on or after
1 January 2005
IAS 36 Impairment of Assets
Overview Sets out requirements to ensure that assets are
carried at no more than their recoverable amount
and to prescribe how recoverable amount and an
impairment loss or its reversal are calculated
Scope IAS 36 applies to assets that are not in the scope of
other Standards
Assets that have separate requirements are
inventories (IAS 2) contract assets and costs to fulfil a
contract (IFRS 15) deferred tax assets (IAS 12) assets
from employee benefits (IAS 19) financial assets
(IFRS 9) investment property measured at fair value
(IAS 40) biological assets measured at fair value less
costs to sell (IAS 41) contracts in the scope of IFRS
17 and noncurrent assets classified as held for sale
(IFRS 5)
Identifying
impairments
At the end of each reporting period assets are
reviewed to look for any indication that they may be
impaired
Intangible assets with an indefinite useful life and
goodwill must be tested annually irrespective of
whether there is any indication of impairment
Recognition An impairment loss is recognised when the carrying
amount of an asset exceeds its recoverable amount
An impairment loss is recognised in profit or loss for
assets carried at cost and treated as a revaluation
decrease for assets carried at the revalued amount
Reversal of prior years’ impairment losses is required
in some cases but is prohibited for goodwillIFRS in your pocket |2019
58
Recoverable
amount
Recoverable amount is the higher of an asset’s fair
value less costs of disposal and its valueinuse
Valueinuse is the present value of estimated future
cash flows expected to arise from the continuing use
of an asset and from its disposal at the end of its
useful life The discount rate used is the pretax rate
of return that investors would require if they were to
choose an investment that would generate cash flows
equivalent to those expected from the asset The
discount rate must not reflect risks for which future
cash flows have been adjusted
Fair value is defined in IFRS 13 Examples for costs of
disposal are set out in IAS 36 for example legal costs
costs of removing an asset and direct incremental
costs to bring an asset into condition for its sale
Cash
generating
units (CGUs)
If it is not possible to determine the recoverable
amount for an individual asset then the recoverable
amount of the CGU to which the asset belongs is
determined A CGU is the smallest identifiable group
of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or
groups of assets
Goodwill The impairment test for goodwill is performed at
the lowest level within the entity at which goodwill
is monitored for internal management purposes
provided that the unit or group of units to which
goodwill is allocated is not larger than an operating
segment as reported in accordance with IFRS 8
Interpretations Refer to IAS 34 for a summary of IFRIC 10 Interim
Financial Reporting and Impairment
Changes
effective
this year
None
Pending
changes
The IASB is exploring whether the existing
impairment test for goodwill can be improved or
simplified
History Originally issued to apply to goodwill and intangible
assets acquired in business combinations for which
the agreement date is on or after 31 March 2004
and to all other assets prospectively for periods
beginning on or after 31 March 2004 it was adopted
by the IASB and included in the original set of
Standards effective for annual periods beginning on
or after 1 January 2005IFRS in your pocket |2019
59
IAS 37 Provisions Contingent Liabilities and
Contingent Assets
Overview Sets out recognition criteria and measurement bases
for provisions contingent liabilities and assets and
the related disclosure requirements
Provisions A provision is recognised when a past event (the
obligation event) has created a legal or constructive
obligation an outflow of resources is probable and the
amount of the obligation can be estimated reliably
The amount recognised is the best estimate of the
settlement amount at the end of the reporting period
If the effect of the time value of money is material
such as might be the case for restoration or
decommissioning costs that must be settled well into
the future the provision is measured at the present
value of the expenditures expected to be required to
settle the obligation The unwinding of the discount is
recognised in profit or loss as a finance cost
Provisions are reviewed at the end of each reporting
period to adjust for changes in the estimate for other
than the timevalue of money
Planned future expenditure even when authorised by
the board of directors or equivalent governing body
is excluded from recognition as are accruals for self
insured losses general uncertainties and other events
that have not yet taken place
On a similar basis future operating losses cannot
be recognised as a provision because there is no
obligation at the end of the reporting period The
expectation of future operating losses will trigger the
need for an impairment review (see IAS 36)
Onerous
contracts
An executory contract is a contract (or a portion of a
contract) that is equally unperformed – neither party
has fulfilled any of its obligations or both parties
have partially fulfilled their obligations to an equal
extent Examples include maintenance or service
contracts and employee contracts The asset and
liability are combined so that no asset or liability is
recognised in the statement of financial position IFRS in your pocket |2019
60
An executory contract becomes onerous when the
unavoidable costs of meeting the obligations exceed
the expected economic benefits from it This would
be the case for example when an entity cannot
cancel and must continue to pay for a cleaning
contract even though it has vacated the premises to
which the contract relates An onerous contract gives
rise to a provision Care must be taken however not
to include in the provision future operating losses
Contingent
liabilities
Contingent liabilities are not recognised but are
disclosed unless the possibility of outflow is remote
They are not recognised because either it is only a
possible obligation that is contingent on a future
event that is outside the control of the entity or there
is a present obligation but it is not probable that an
outflow of resources will be required or the amount
cannot be measured with sufficient reliability (which
will be rare)
Contingent
assets
A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only by future events not wholly within the control of
the entity
Contingent assets require disclosure only If the
realisation of income is virtually certain the related
asset is not a contingent asset and recognition is
required
Interpretations IFRIC 1 Changes in Existing Decommissioning
Restoration and Similar Liabilities clarifies that
provisions are adjusted for changes in the amount
or timing of future costs and for changes in the
marketbased discount rate
IFRIC 5 Rights to Interests Arising from
Decommissioning Restoration and Environmental
Funds deals with the accounting in the financial
statements of the contributor for interests in
decommissioning restoration and environmental
rehabilitation funds established to fund some or
all of the costs of decommissioning assets or to
undertake environmental rehabilitation
IFRIC 6 Liabilities arising from Participating in a Specific
Market – Waste Electrical and Electronic Equipment
provides guidance on the accounting for liabilities
for waste management costs The event that triggers
liability recognition is participation in the market
during a measurement periodIFRS in your pocket |2019
61
IFRIC 21 Levies provides guidance on when to
recognise a liability for a levy imposed by a
government The obligating event is the activity that
triggers the payment of the levy If that event occurs
over a period of time the liability is recognised
progressively If the levy is triggered on reaching a
minimum threshold the liability is recognised when
that minimum is reached
Changes
effective
this year
One of the more common contracts that can
become onerous is an operating lease With
the effective date of IFRS 16 for annual periods
beginning on or after 1 January 2019 most leases
will require the recognition of a rightofuse
asset which would be subject to the impairment
requirements in IAS 36
Pending
changes
The IASB proposed to clarify the onerous contract
requirements in an ED issued in 2018
In 2018 the IASB decided to start a project in 2019
or 2020 to review the accounting for pollutant
pricing mechanisms (emission rights)
The IASB is undertaking a research project to
gather evidence around provisions Based on
the findings the IASB will decide whether to add
a standardsetting or maintenance project on
provisions
History Originally issued for periods beginning on or after
1 July 1999 it was adopted by the IASB and included
in the original set of Standards effective for annual
periods beginning on or after 1 January 2005
IAS 38 Intangible Assets
Overview Prescribes the accounting treatment for recognising
measuring and disclosing intangible assets that are
not dealt with in another IFRS Standard
Definition An intangible asset is an identifiable nonmonetary
asset without physical substance Examples
include software brands music and film rights and
development assetsIFRS in your pocket |2019
62
Recognition Intangible assets are recognised if it is probable that
the future economic benefits that are attributable to
the asset will flow to the entity and the cost of the asset
can be measured reliably
There are specific recognition criteria for internally
generated intangible assets
All research costs are charged to expense when
incurred Development costs are capitalised only after
technical and commercial feasibility of the resulting
product or service have been established
Internallygenerated goodwill brands mastheads
publishing titles customer lists startup costs training
costs advertising costs and relocation costs are never
recognised as assets
If an intangible item does not meet the definition and
the recognition criteria the costs are recognised as an
expense when incurred
If an entity recognises a prepayment asset for
advertising or promotional expenditure it is only
able to do so up to the point at which it has the right
to access the goods purchased or up to the point
of receipt of services Mail order catalogues are
specifically identified as a form of advertising and
promotional activities and are expensed when they
are received
Subsequent
measurement
Intangible assets are classified as having either a finite
or indefinite life Indefinite means that there is no
foreseeable limit to the period over which the asset
is expected to generate net cash inflows not infinite
Intangible assets may be accounted for using a cost
model or in limited cases a revaluation model
Cost model Assets are carried at cost less any accumulated
amortisation and any accumulated impairment losses
Normally subsequent expenditure on an intangible
asset after its purchase or completion is recognised as
an expense
The cost of an intangible asset with a finite useful life is
amortised over that life normally to a nil residual value
Impairment testing under IAS 36 is required whenever
there is an indication that the carrying amount exceeds
the recoverable amount of the intangible asset
Intangible assets with indefinite useful lives are not
amortised but are tested for impairment on an annual
basis If the recoverable amount is lower than the
carrying amount an impairment loss is recognised
The entity also considers whether the intangible
continues to have an indefinite lifeIFRS in your pocket |2019
63
Revaluation
model
If an intangible asset has a quoted market price in an
active market a revaluation model can be used The
asset is carried at fair value at revaluation date less
any subsequent amortisation or impairment
Revaluations must be carried out regularly When
the revaluation model is used all items of a given
class must be revalued However if there is no active
market for a particular asset within that class that
asset is measured using the cost model
Revaluation increases are recognised in other
comprehensive income and accumulated in equity
Revaluation decreases are charged first against the
revaluation surplus in equity related to the specific
asset and any excess against profit or loss When the
revalued asset is disposed of the revaluation surplus
remains in equity and is not reclassified to profit or
loss
Interpretations S I C32 Intangible Assets – Web Site Costs clarifies which
initial infrastructure development and graphic
design costs incurred in web site development are
capitalised
Changes
effective
this year
None
Pending
changes
None
History Originally issued to apply to intangible assets
acquired in business combinations for which the
agreement date is on or after 31 March 2004 and to
all other intangible assets prospectively for periods
beginning on or after 31 March 2004 It was adopted
by the IASB and included in the original set of
Standards effective for annual periods beginning on
or after 1 January 2005
IAS 39 Financial Instruments Recognition and
Measurement
Overview Sets out the requirements for hedge accounting
An entity can elect to apply these requirements or
those in IFRS 9IFRS in your pocket |2019
64
Hedge
accounting
Hedge accounting (recognising the offsetting effects
of both the hedging instrument and the hedged
item in the same period’s profit or loss) is permitted
if the hedging relationship is clearly designated and
documented measurable and effective
Because IFRS 9 includes only general hedge
accounting requirements the requirements on
portfolio hedges in IAS 39 remain applicable
Fair value
hedge
When there is a hedge of a change in fair value of a
recognised asset or liability or firm commitment the
change in fair values of both the hedging instrument
and the hedged item for the designated risk are
recognised in profit or loss when they occur and the
carrying amount of the hedged item is adjusted to
reflect changes in the hedged risk
Cash flow
hedge
When an entity hedges changes in the future cash
flows relating to a recognised asset or liability or a
highly probable forecast transaction that involves a
party external to the entity or a firm commitment
in some cases then the change in fair value of
the hedging instrument is recognised in other
comprehensive income to the extent that the hedge
is effective until such time as the hedged future cash
flows occur
Hedge of a net
investment in a
foreign entity
This relates to a net investment in a foreign
operation (as defined in IAS 21) including a hedge of
a monetary item that is accounted for as part of the
net investment The accounting for such a hedge is
similar to a cash flow hedge
Intragroup
hedges
The foreign currency risk of a highly probable
forecast intragroup transaction can qualify as the
hedged item in a cash flow hedge in the consolidated
financial statements provided that the transaction
is denominated in a currency other than the
functional currency of the entity entering into that
transaction and the foreign currency risk will affect
the consolidated profit or loss
If the hedge of a forecast intragroup transaction
qualifies for hedge accounting any gain or loss
that is recognised in other comprehensive income
in accordance with the hedging rules in IAS 39 is
reclassified from equity to profit or loss in the same
period or periods in which the foreign currency risk
of the hedged transaction affects profit or lossIFRS in your pocket |2019
65
Portfolio Hedge A portfolio hedge of interest rate risk (hedging an
amount rather than a specific asset or liability) can
qualify as a fair value hedge or a cash flow hedge if
specified conditions are met
Interpretations None
Changes
effective
this year
None
Pending
changes
IFRS 9 does not replace the requirements for
portfolio fair value hedge accounting for interest
rate risk (often referred to as the macro hedge
accounting’ requirements) The IASB expects to have
developed a core model n the second half of 2019
History Issued in the set of improved Standards effective
for annual periods beginning on or after 1 January
2005 It has been amended several times since then
and was largely superseded by IFRS 9 which came
into effect for annual periods beginning on or after 1
January 2018
When an entity first applies IFRS 9 it may choose
to continue to apply the hedge accounting
requirements of IAS 39 instead of the requirements
in IFRS 9 to all of its hedging relationships
However insurers may continue to apply the original
version of IAS 39 and defer application of IFRS 9 until
they apply IFRS 17 provided they have predominant
insurance activities as defined in the amendment to
IFRS 4
IAS 40 Investment Property
Overview Prescribes the accounting when property is held to
earn rentals or for capital appreciation rather than
being occupied by the owner for the production or
supply of goods or services or for administrative
purposesIFRS in your pocket |2019
66
Investment
property
An investment property is land or buildings (or part
thereof) or both held (whether by the owner or by a
lessee under a finance lease) to earn rentals or for
capital appreciation or both
IAS 40 does not apply to owneroccupied property
property that is being constructed or developed
on behalf of third parties property held for sale in
the ordinary course of business or property that is
leased to another entity under a finance lease
Mixeduse property (partly used by the owner and
partly held for rental or appreciation) must be split
with components accounted for separately if these
portions could be sold separately
A property interest held by a lessee under an
operating lease can qualify as investment property
if the lessee applies the fair value model The lessee
accounts for the lease as if it were a finance lease
Property can be transferred in or out of investment
property but only if the entity has actually changed
its use – intention to change is not sufficient
When an investment property carried at fair value
is transferred to owneroccupied property or
inventories the property’s fair value is the deemed
cost for subsequent accounting in accordance with
IAS 16 or IAS 2
Initial
measurement
An investment property is measured initially at
cost Transaction costs are included in the initial
measurement
Subsequent
measurement
An entity chooses either the fair value model or
the cost model after initial recognition The chosen
measurement model is applied to all of the entity’s
investment property
Change from one model to the other is permitted if it
will result in a more appropriate presentation (which
is highly unlikely for change from fair value to cost
model)IFRS in your pocket |2019
67
Fair value
model
Investment property is measured at fair value and
changes in fair value are recognised in profit or loss
If an entity using the fair value model acquires a
particular property for which there is clear evidence
that the entity will not be able to determine fair value
on a continuing basis the cost model is used for
that property – and it must continue to be used until
disposal of the property
Cost model Investment property is measured at depreciated cost
less any accumulated impairment losses unless it is
classified as a noncurrent asset held for sale under
IFRS 5 The fair value of the investment property
must be disclosed
Interpretations None
Changes
effective
this year
None
Pending
changes
None
History Issued in the set of improved Standards effective for
annual periods beginning on or after
1 January 2005
IAS 41 Agriculture
Overview Prescribes the accounting for agricultural activity
Agricultural
activity
Agricultural activity is the management of the
biological transformation and harvest of biological
assets for sale or for conversion into agricultural
produce or into additional biological assets
Bearer plants that are used in the production or
supply of agricultural produce and which will not be
sold as agricultural produce are accounted for as
PP&E applying IAS 16 These include fruit trees and
grape vines IFRS in your pocket |2019
68
Measurement All biological assets are measured at fair value less
costs to sell unless fair value cannot be measured
reliably
Agricultural produce is measured at fair value
less costs to sell at the point of harvest Because
harvested produce is a marketable commodity there
is no measurement reliability’ exception for produce
Fair value measurement stops at harvest after which
IAS 2 applies
Any change in the fair value of biological assets
during a period is reported in profit or loss
Interpretations None
Changes
effective
this year
None
Pending
changes
A proposal to remove the requirement to exclude
cash flows from taxation when measuring fair
value is planned for inclusion in the next Annual
Improvements ED
History Originally issued for periods beginning on or after
1 January 2003 it was adopted by the IASB and
included in the original set of Standards effective
for annual periods beginning on or after 1 January
2005 Amendments requiring bearer plants to be
accounted for as PP&E became effective on 1 January
2016IFRS in your pocket |2019
69
IFRS 1 Firsttime Adoption of International Financial
Reporting Standards
Overview Sets out the procedures when an entity adopts IFRS
Standards for the first time as the basis for preparing
its general purpose financial statements
Selection of
accounting
policies
An entity that adopts IFRS Standards for the first
time (by an explicit and unreserved statement
of compliance with IFRS Standards) in its annual
financial statements for the year ended 31 December
2019 would be required to select accounting policies
based on IFRS Standards effective at 31 December
2019 (with the early application of any new IFRS
Standard not yet mandatory being permitted)
Presentation
of financial
statements
The entity presents an opening statement of financial
position that is prepared at 1 January 2018 That
opening statement of financial position is the entity’s
first IFRS financial statements Therefore at least
three statements of financial position are presented
A first time adopter can report selected financial data
on an IFRS basis for periods prior to 2018 As long as
they do not purport to be full financial statements
the opening IFRS statement of financial position
would still be 1 January 2018
The opening statement of financial position the
financial statements for the 2019 financial year and
the comparative information for 2018 are prepared
as if the entity had always used the IFRS accounting
policies it has selected However IFRS 1 contains
some exceptions and relief from full retrospective
application that an entity can elect to apply
Interpretations None
Changes
effective
this year
None
Pending
changes
A proposal to simplify the firsttime application of
IFRS Standards by a subsidiary will be included in the
next Annual Improvements ED
History The original IFRS 1 was issued in 2003 It was
restructured and this version was issued in 2008
effective for first IFRS financial statements for periods
beginning on or after 1 July 2009IFRS in your pocket |2019
70
IFRS 2 Sharebased Payment
Overview Sets out the accounting for transactions in which an
entity receives or acquires goods or services either
as consideration for its equity instruments or by
incurring liabilities for amounts based on the price of
its shares or other equity instruments
Sharebased
payments
All sharebased payment transactions are recognised
in the financial statements using a fair value
measurement basis
An expense is recognised when the goods or services
received are consumed (including transactions for
which the entity cannot specifically identify some or
all of the goods or services received)
Fair value Transactions in which goods or services are received
are measured at the fair value of the goods or
services received However if the fair value of the
goods or services cannot be measured reliably the
fair value of the equity instruments is used
Transactions with employees and others providing
similar services are measured at the fair value of the
equity instruments granted because it is typically
not possible to estimate reliably the fair value of
employee services received
Fair value is defined as the amount for which an
asset could be exchanged a liability settled or an
equity instrument granted could be exchanged
between knowledgeable willing parties in an arm’s
length transaction Because this definition differs
from that in IFRS 13 the specific guidance in IFRS 2
is followed
Measurement
date
The fair value of the equity instruments granted
(such as transactions with employees) is estimated
at grant date being when the entity and the
counterparty have a shared understanding of the
terms and conditions of the arrangement
The fair value of the goods or services received is
estimated at the date of receipt of those goods or
services
Equitysettled
share based
payments
Equitysettled sharebased payment transactions
are recorded by recognising an increase in equity
and the corresponding goods or services received
at the measurement dateIFRS in your pocket |2019
71
Cashsettled
share based
payments
A cashsettled sharebased payment transaction is a
sharebased payment transaction in which the entity
acquires goods or services by incurring a liability
to transfer cash or other assets to the supplier
of those goods or services for amounts that are
based on the price (or value) of equity instruments
(including shares or share options) of the entity or
another group entity
Cashsettled sharebased payment transactions
are recorded by recognising a liability and the
corresponding goods or services received at fair
value at the measurement date Until the liability is
settled it is measured at the fair value at the end of
each reporting period and at the date of settlement
with any changes in fair value recognised in profit or
loss for the period
Vesting
conditions
IFRS 2 uses the notion of vesting conditions for
service conditions and performance conditions only
If a condition does not meet the definition of these
two types of conditions but nevertheless needs to
be satisfied for the counterparty to become entitled
to the equity instruments granted this condition is
called a nonvesting condition
A service condition requires the counterparty to
complete a specified period of service to the entity
Performance conditions require the completion
of a specified period of service and specified
performance targets to be met that are defined by
reference to the entity’s own operations or activities
(nonmarket conditions) or the price of the entity’s
equity instruments (market conditions) The period
for achieving the performance target must not
extend beyond the end of the service period
When determining the grant date fair value of the
equity instruments granted the vesting conditions
(other than market conditions) are not taken into
account However they are taken into account
subsequently by adjusting the number of equity
instruments included in the measurement of the
transaction
Marketbased vesting conditions and nonvesting
conditions are taken into account when estimating
the fair value of the shares or options at the
relevant measurement date with no subsequent
adjustments made in respect of such conditionsIFRS in your pocket |2019
72
Group
transactions
IFRS 2 includes specific guidance on the accounting
for sharebased payment transactions among group
entities
Interpretations None
Changes
effective
this year
None
Pending
changes None
History IFRS 2 was issued in 2004 effective for annual
periods beginning on or after 1 January 2005 It was
amended to incorporate the guidance contained in
two related Interpretations (IFRIC 8 Scope of
IFRS 2 and IFRIC 11 IFRS 2 – Group and Treasury Share
Transactions) The amendments applied for annual
periods beginning on or after 1 January 2010
IFRS 3 Business Combinations
Overview An acquirer of a business recognises the assets
acquired and liabilities assumed at their acquisition
date fair values and discloses information that
enables users to evaluate the nature and financial
effects of the acquisition
Business
combination
A business combination is a transaction or event in
which an acquirer obtains control of one or more
businesses
A business is defined as an integrated set of activities
and assets that is capable of being conducted and
managed for the purpose of providing a return
directly to investors or other owners members or
participantsIFRS in your pocket |2019
73
Recognition
of assets and
liabilities
The acquisition method is used for all business
combinations
The acquirer recognises the identifiable assets
acquired the liabilities assumed and any non
controlling interest (NCI) in the acquiree
Intangible assets including inprocess research and
development acquired in a business combination
are recognised separately from goodwill if they arise
as a result of contractual or legal rights or if they are
separable from the business In these circumstances
the recognition criteria are always considered to be
satisfied (see also IAS 38)
Measurement Assets and liabilities are measured at their fair values
(with a limited number of specified exceptions) at the
date the entity obtains control of the acquiree If the
initial accounting for a business combination can be
determined only provisionally by the end of the first
reporting period the combination is accounted for
using provisional values Adjustments to provisional
values relating to facts and circumstances that
existed at the acquisition date are permitted within
one year
The acquirer can elect to measure the components
of NCI in the acquiree that are present ownership
interests and entitle their holders to a proportionate
share of the entity’s net assets in liquidation either at
fair value or at the NCI’s proportionate share of the
net assets
Contingent
consideration
Among the items recognised will be the acquisition
date fair value of contingent consideration Changes
to contingent consideration resulting from events
after the acquisition date are recognised in profit or
loss
Goodwill
and bargain
purchases
If the consideration transferred exceeds the net
of the assets liabilities and NCI that excess is
recognised as goodwill If the consideration is lower
than the net assets acquired a bargain purchase is
recognised in profit or loss
Acquisition
costs
All acquisitionrelated costs (eg finder’s fees
professional or consulting fees costs of internal
acquisition department) are recognised in profit or
loss except for costs to issue debt or equity which
are recognised in accordance with IFRS 9 and IAS 32IFRS in your pocket |2019
74
Business
combinations
achieved in
stages
If the acquirer increases an existing equity interest so
as to achieve control of the acquiree the previously
held equity interest is remeasured at acquisitiondate
fair value and any resulting gain or loss is recognised
in profit or loss
Other guidance IFRS 3 includes guidance on business combinations
achieved without the transfer of consideration
reverse acquisitions identifying intangible assets
acquired unreplaced and voluntarily replaced
sharebased payment awards preexisting
relationships between the acquirer and the acquiree
(eg reacquired rights) and the reassessment of
the acquiree’s contractual arrangements at the
acquisition date
Interpretations None
Changes
effective
this year
Amendments to clarify that when an entity gets
control of a joint operation that is a business any
previously held interest is remeasured Those
amendments are effective for annual periods
beginning on or after 1 January 2019
Pending
changes
As a result of the PIR of IFRS 3 the Standard has
been amended for a revised definition of a business
This amendment will be effective for annual periods
beginning on or after 1 January 2020 with earlier
application permitted
In addition the IASB currently has a project on
business combinations under common control
History The IASB issued the original version of IFRS 3 in 2004
effective for periods beginning on or after
1 January 2005
That version of IFRS 3 was replaced in 2008 by a
version developed jointly with the FASB and applies
to business combinations in periods beginning on or
after 1 July 2009
IFRS 4 Insurance Contracts
Overview Prescribes the financial reporting for insurance contracts
put in place pending the application of IFRS 17IFRS in your pocket |2019
75
Recognition
and
measurement
This Standard applies to insurance contracts that an
entity issues
Insurers are exempted from applying the IASB
Framework and some Standards
Catastrophe reserves and equalisation provisions are
prohibited
The Standard requires a test for the adequacy of
recognised insurance liabilities and an impairment test
for reinsurance assets
Insurance liabilities may not be offset against related
reinsurance assets
Accounting policy changes are restricted Some
disclosures are required
Financial
guarantees
Financial guarantee contracts are outside the scope of
IFRS 4 unless the issuer had previously (prior to initial
adoption of IFRS 4) asserted explicitly that it regards
such contracts as insurance contracts and has used
accounting applicable to insurance contracts In such
circumstances the issuer may elect to apply either
IAS 32 IFRS 7 and IFRS 9 or IFRS 4 on a contractby
contract basis The election is irrevocable
Interpretations None
Changes
effective
this year
None
Pending
changes
IFRS 4 will be superseded upon application of IFRS
17 which is effective for annual periods beginning
on or after 1 January 20212 Until IFRS 17 comes into
effect IFRS 4 provides special concessions in relation
to the application of IFRS 9
History The IASB issued IFRS 4 in 2004 for inclusion in the
original set of Standards effective for annual periods
beginning on or after 1 January 2005
2 In 2018 the IASB tentatively decided that the mandatory effective date of IFRS 17 should be deferred
by one year so that entities would be required to apply IFRS 17 for annual periods beginning on
or after 1 January 2022 and that the fixed expiry date for the temporary exemption in IFRS 4 from
applying IFRS 9 should be amended so that all entities would be required to apply IFRS 9 for annual
periods beginning on or after 1 January 2022 An ED proposing these changes is expected in 2019IFRS in your pocket |2019
76
IFRS 5 Noncurrent Assets Held for Sale and
Discontinued Operations
Overview Sets out the accounting for noncurrent assets held
for sale and the presentation and disclosure of
discontinued operations
Noncurrent
assets held for
sale
Noncurrent assets are held for sale’ either individually
or as part of a disposal group when the entity has the
intention to sell them they are available for immediate
sale and disposal within 12 months is highly probable
A disposal group is a group of assets to be disposed of
in a single transaction including any related liabilities
that will also be transferred
Assets and liabilities of a subsidiary are classified
as held for sale if the parent is committed to a plan
involving loss of control of the subsidiary regardless of
whether the entity will retain a noncontrolling interest
after the sale
IFRS 5 applies to a noncurrent asset (or disposal group)
that is classified as held for distribution to owners
Discontinued
operations
A discontinued operation is a component of an entity
that has either been disposed of or is classified as
held for sale It must represent a separate major line
of business or major geographical area of operations
be part of a single coordinated plan to dispose of a
separate major line of business or geographical area
of operations
Measurement Noncurrent assets held for sale’ are measured at the
lower of the carrying amount and fair value less costs
to sell (or costs to distribute) The noncurrent assets
are no longer depreciated
Immediately before the initial classification of the
asset (or disposal group) as held for sale the carrying
amounts of the assets (or all the assets and liabilities
in the group) are measured in accordance with
applicable IFRS StandardsIFRS in your pocket |2019
77
Statement of
comprehensive
income
When there are discontinued operations the
statement of comprehensive income is divided into
continuing and discontinued operations
The sum of the posttax profit or loss from
discontinued operations for the period and the post
tax gain or loss arising on the disposal of discontinued
operations (or on their reclassification as held for sale)
is presented as a single amount
Statement
of financial
position
Noncurrent assets and the assets and liabilities in
a disposal group are presented separately in the
statement of financial position
Relationship
with other
Standards
IFRS 5 has its own disclosure requirements
Consequently disclosures in other Standards do
not apply to such assets (or disposal groups) unless
those Standards specifically require disclosures or the
disclosures relate to the measurement of assets or
liabilities within a disposal group that are outside the
scope of the measurement requirements of IFRS 5
Interpretations None
Changes
effective
this year
None
Pending
changes
The IASB has announced that it plans to undertake a
PIR of IFRS 5
History The IASB adopted the 1998 version of IAS 35
Discontinuing Operations as part of its original set
of Standards The IASB replaced IAS 35 with IFRS 5 in
2004 for annual periods beginning on or after
1 January 2005
IFRS 6 Exploration for and Evaluation of Mineral
Resources
Overview Prescribes the financial reporting for the exploration
for and evaluation of mineral resources until the IASB
completes a comprehensive project in this areaIFRS in your pocket |2019
78
Continued
use of existing
policies
An entity can continue to use its existing accounting
policies provided that they result in information that
is reliable and is relevant to the economic decision
making needs of users It does not require or prohibit
any specific accounting policies for the recognition and
measurement of exploration and evaluation assets
The Standard gives a temporary exemption from
applying IAS 811–12— which specify a hierarchy of
sources of authoritative guidance in the absence of a
specific IFRS Standard
Impairment Exploration and evaluation assets must be assessed
for impairment when there is an indication that their
carrying amount exceeds their recoverable amount
Exploration and evaluation assets must also be
tested for impairment before they are reclassified as
development assets
IFRS 6 allows impairment to be assessed at a level
higher than the cashgenerating unit’ under IAS 36
but requires measurement of the impairment in
accordance with IAS 36 once it is assessed
Disclosure IFRS 6 requires disclosure of information that
identifies and explains amounts arising from
exploration and evaluation of mineral resources
Interpretations None
Changes
effective
this year
None
Pending
changes
In 2018 the IASB started a project on Extractive
Activities with the objective of replacing IFRS 6
This is a longterm project
History Issued for annual periods beginning on or after
1 January 2006
IFRS 7 Financial Instruments Disclosures
Overview Prescribes disclosures to help the primary users of the
financial statements evaluate the significance of financial
instruments to the entity the nature and extent of their
risks and how the entity manages those risksIFRS in your pocket |2019
79
Significance
of financial
instruments
Requires disclosure of information about the
significance of financial instruments to an entity’s
financial position and performance including
its accounting policies and application of hedge
accounting
Financial
position
Entities must disclose information about financial
assets and financial liabilities by category special
disclosures when the fair value option or fair
value through OCI option is used reclassifications
offsetting of financial assets and liabilities collateral
allowance accounts compound financial instruments
with embedded derivatives defaults and breaches
and transfers of financial assets
Financial
performance
Information must be disclosed about financial
instrumentsrelated recognised income expenses
gains and losses interest income and expense fee
income and impairment losses
Other
disclosures
The significant accounting policies on financial
instruments must be disclosed When hedge
accounting is applied extensive information about
the risk management strategy the amount timing
and uncertainty of future cash flows and the effects
of hedge accounting on financial position and
performance must be disclosed This information is
required regardless of whether an entity has applied
hedge accounting in accordance with IAS 39 or
IFRS 9 Fair values must be disclosed for each class
of financial instrument and IFRS 13 also requires
information to be disclosed about the fair values
Risk Entities must disclose the nature and extent of risks
arising from financial instruments This includes
qualitative information about exposures to each
class of risk and how those risks are managed and
quantitative information about exposures to each
class of risk Extensive disclosures are required for
credit risk to assess expected credit losses This
includes reconciliations of the loss allowance and
gross carrying amounts and information about credit
quality Additional disclosure requirements relate
to liquidity risk and market risk (including sensitivity
analyses for market risk)
Interpretations NoneIFRS in your pocket |2019
80
Changes
effective
this year
None
Pending
changes
None
History The IASB adopted the 1990 version of IAS 30
Disclosures in the Financial Statements of Banks and
Similar Financial Institutions as part of the original set
of Standards effective for periods beginning on or
after 1 January 2005
IFRS 7 replaced IAS 30 and brought together all
financial instrument disclosures (from IAS 32)
creating a general financial instrument disclosure
Standard for annual periods beginning on or after
1 January 2007
IFRS 8 Operating Segments
Overview Requires entities to disclose segmental information
that is consistent with how it is reported internally to
the chief operating decision maker
Scope This Standard applies only to entities with debt or
equity instruments traded in a public market or is in
the process of issuing instruments in a public market
Operating
segments
An operating segment is a component of an entity
that engages in business activities from which it may
earn revenues and incur expenses whose operating
results are regularly reviewed by the entity’s chief
operating decision maker and for which discrete
financial information is available
Generally separate information is required if the
revenue profit or loss or assets of a segment are 10
per cent or more of the equivalent total for all of the
operating segments
At least 75 per cent of the entity’s revenue must be
included in reportable segmentsIFRS in your pocket |2019
81
Disclosure A measure of profit or loss and a measure of total
assets and liabilities must be presented for each
reportable segment Additional measures such as
revenue from external customers interest revenue
and expense depreciation and amortisation expense
and tax is required to be presented if they are
included in the measure of profit or loss reviewed
by the chief operating decision maker or provided to
them separately
The segment information need not be prepared in
conformity with the accounting policies adopted for
the entity’s financial statements
Entitywide
disclosures
Some entitywide disclosures are required even
when an entity has only one reportable segment
These include information about each product
and service or groups of products and services
geographical areas major customers (10 per cent or
more of the entity’s revenue) and judgements made
by management in applying the aggregation criteria
for operating segments
Analyses of revenues and some noncurrent assets
by geographical area are required from all entities—
with an expanded requirement to disclose revenues
noncurrent assets by individual foreign country (if
material) irrespective of how the entity is organised
Reconciliation A reconciliation of the total assets to the entity’s
assets should only be provided if the segment assets
are regularly provided to the chief operating decision
maker
Interpretations None
Changes
effective
this year
None
Pending
changes
None The IASB completed its PIR of IFRS 8 in 2018 and
decided that the Standard is operating as intended
History The IASB adopted the 1997 version of IAS 14
Segment Reporting as part of the original set of
Standards effective for periods beginning on or after
1 January 2005
IAS 14 was replaced by IFRS 8 in 2006 for annual
periods beginning on or after 1 January 2009IFRS in your pocket |2019
82
IFRS 9 Financial Instruments
Overview Sets out requirements for recognition and
measurement of financial instruments including
impairment derecognition and general hedge
accounting
Initial
measurement
All financial instruments are initially measured at fair
value plus or minus in the case of a financial asset or
financial liability not at fair value through profit or loss
transaction costs
Equity
investments
Equity investments held are measured at fair value
Changes in the fair value are recognised in profit or
loss (FVTPL) However if an equity investment is not
held for trading an entity can make an irrevocable
election at initial recognition to recognise the fair value
changes in OCI (FVTOCI) with only dividend income
recognised in profit or loss There is no reclassification
to profit or loss on disposal
The impairment requirements do not apply to equity
instruments
Classification of
financial assets
Financial assets with contractual terms that give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding (the contractual cash flows
test) are classified according to the objective of the
business model of the entity
If the objective is to hold the financial assets to collect
the contractual cash flows they are measured at
amortised cost unless the entity applies the fair value
option Interest revenue is calculated by applying the
effective interest rate to the amortised cost (which is
the gross carrying amount minus any loss allowance)
for creditimpaired financial assets while for all other
instruments it is calculated based on the gross
carrying amount
If the objective is to both collect contractual cash flows
and sell financial assets they are measured at FVTOCI
(with reclassification to profit or loss on disposal)
unless the entity applies the fair value option
All other financial assets must be measured at fair
value through profit or loss (FVTPL)IFRS in your pocket |2019
83
Fair value
option
An entity may at initial recognition irrevocably
designate a financial asset as measured at FVTPL
if doing so eliminates or significantly reduces
a measurement or recognition inconsistency
(accounting mismatch) that would otherwise arise
from measuring assets or liabilities or recognising the
gains and losses on them on different bases
Financial
liabilities
Financial liabilities held for trading are measured
at FVTPL
All other financial liabilities are measured at amortised
cost unless the fair value option is applied The fair
value option can be elected at initial recognition
if doing so eliminates or significantly reduces an
accounting mismatch In addition financial liabilities
can be designated as at FVTPL if a group of financial
instruments is managed on a fair value basis or if
the designation is made in relation to embedded
derivatives that would otherwise be bifurcated from
the liability host
Changes in fair value attributable to changes in
credit risk of the liability designated as at FVTPL are
presented in OCI (and there is no reclassification to
profit or loss)
Derivatives All derivatives in the scope of IFRS 9 including those
linked to unquoted equity investments are measured
at fair value Value changes are recognised in profit
or loss unless the entity has elected to apply hedge
accounting by designating the derivative as a hedging
instrument in an eligible hedging relationship
Embedded
derivatives
The contractual cash flows of a financial asset are
assessed in their entirety including those of an
embedded derivative that is not closely related to its
host The financial asset as a whole is measured at
FVTPL if the contractual cash flow characteristics test
is not passed
For financial liabilities an embedded derivative not
closely related to its host is accounted for separately
at fair value in the case of financial liabilities not
designated at FVTPL
For other nonfinancial asset host contracts an
embedded derivative not closely related to its host is
accounted for separately at fair valueIFRS in your pocket |2019
84
Hedge
accounting
The hedge accounting requirements in IFRS 9 are
optional If the eligibility and qualification criteria are
met hedge accounting allows an entity to reflect risk
management activities in the financial statements by
matching gains or losses on hedging instruments with
losses or gains on the risk exposures they hedge
There are three types of hedging relationships (i) fair
value hedge (ii) cash flow hedge and (iii) hedge of a
net investment in a foreign operation
A hedging relationship qualifies for hedge accounting
only if the hedging relationship consists only of eligible
hedging instruments and eligible hedged items
the hedging relationship is formally designated and
documented (including the entity’s risk management
objective and strategy for undertaking the hedge) at
inception and the hedging relationship is effective
To be effective there must be an economic
relationship between the hedged item and the
hedging instrument the effect of credit risk must not
dominate the value changes that result from that
economic relationship and the hedge ratio of the
hedging relationship must be the same as that actually
used in the economic hedge
Impairment The impairment model in IFRS 9 is based on expected
credit losses It applies to financial assets measured at
amortised cost or FVTOCI lease receivables contract
assets within the scope of IFRS 15 and specified
written loan commitments (unless measured at FVTPL)
and financial guarantee contracts (unless they are
accounted for in accordance with IFRS 4 or IFRS 17)
Expected credit losses (with the exception of
purchased or original creditimpaired financial assets)
are required to be measured through a loss allowance
at an amount equal to the 12month expected credit
losses If the credit risk has increased significantly
since initial recognition of the financial instrument full
lifetime expected credit losses are recognised This
is equally true for creditimpaired financial assets for
which interest income is based on amortised cost
rather than gross carrying amount
IFRS 9 requires expected credit losses to reflect an
unbiased and probabilityweighted amount the time
value of money and reasonable and supportable
information about past events current conditions and
forecasts of future economic conditionsIFRS in your pocket |2019
85
Interpretations IFRIC 16 Hedges of a Net Investment in a Foreign
Operation clarifies that the presentation currency does
not create an exposure to which an entity may apply
hedge accounting A parent entity may designate as
a hedged risk only the foreign exchange differences
arising from a difference between its own functional
currency and that of its foreign operation
The hedging instrument(s) can be held by any
entity within the group as long as the designation
effectiveness and documentation requirements are
satisfied
On derecognition of a foreign operation IFRS 9 must
be applied to determine the amount that needs
to be reclassified to profit or loss from the foreign
currency translation reserve in respect of the hedging
instrument while IAS 21 must be applied in respect of
the hedged item
IFRIC 19 Extinguishing Financial Liabilities with Equity
Instruments clarifies that when a borrower agrees with
a lender to issue equity instruments to the lender to
extinguish all or part of a financial liability the issue of
equity instruments is the consideration paid Those
equity instruments issued must be measured at
their fair value on the date of extinguishment of the
liability If that fair value is not reliably measurable
they are measured using the fair value of the liability
extinguished
Any difference between the carrying amount of the
liability (or the part) extinguished and the fair value
of equity instruments issued is recognised in profit
or loss When consideration is partly allocated to the
portion of a liability which remains outstanding that
part is included in the assessment as to whether there
has been an extinguishment or a modification of that
portion of the liability If the remaining liability has
been substantially modified the entity should account
for the modification as the extinguishment of the
original liability and the recognition of a new liability as
required by IFRS 9
Changes
effective
this year
An amendment to IFRS 9 that extends the
measurement at amortised cost to some prepayable
financial assets with socalled negative compensation
is effective for annual periods beginning on or after
1 January 2019IFRS in your pocket |2019
86
Pending
changes
A proposal to clarify which fees and costs to include
when assessing derecognition (the 10 per cent test)
will be included in the next Annual Improvements ED
IFRS 9 did not replace the requirements for portfolio
fair value hedge accounting for interest rate risk
(often referred to as the macro hedge accounting’
requirements) The IASB is continuing to work on that
project
History Issued in July 2014 IFRS 9 is the replacement of
IAS 39 Financial Instruments Recognition and
Measurement The IASB developed IFRS 9 in phases
adding to the Standard as it completed each phase
The version of IFRS 9 issued in 2014 superseded all
previous versions and became effective for annual
periods beginning on or after 1 January 2018IFRS in your pocket |2019
87
IFRS 10 Consolidated Financial Statements
Overview Sets out the requirements for determining whether an
entity (a parent) controls another entity (a subsidiary)
Control An investor controls an investee when it has power
over the investee exposure or rights to variable
returns from its involvement with the investee and the
ability to use its power over the investee to affect the
amount of the returns
An investor has power when it has existing rights that
give it the current ability to direct the relevant activities
of the investee—the activities that significantly affect
the investee’s returns
Sometimes assessing power is straightforward
such as when power over an investee is obtained
directly and solely from the voting rights granted
by equity instruments such as shares and can be
assessed by considering the voting rights from those
shareholdings It is possible to have control with less
than half the voting rights (sometimes referred to as
defacto control)
In other cases the assessment will be more complex
and require more than one factor to be considered
for example when power results from one or more
contractual arrangements
The Standard includes guidance on distinguishing
between rights that give the holder power and rights
that are intended to protect the investor’s interest
in the entity Protective rights might include a right
to vote on major transactions such as significant
asset purchases or to approve borrowings above a
specified level Distinguishing between rights that
give power and rights that are protective requires an
understanding of the relevant activities of the entity
Sometimes an entity will delegate its power to an
agent The Standard emphasises the importance of
identifying when a party that appears to have control
over an entity is only exercising power as an agent of
a principal IFRS in your pocket |2019
88
Consolidated
financial
statements
When a parentsubsidiary relationship exists
consolidated financial statements are required
These are financial statements of a group (parent and
subsidiaries) presented as those of a single economic
entity
There are two exceptions to this requirement If
on acquisition a subsidiary meets the criteria to be
classified as held for sale in accordance with IFRS 5
it is accounted for under that Standard The other
exception is for investment entities
Investment
entities
An entity that obtains funds from one or more
investors for the purpose of providing those
investor(s) with investment management services
commits to its investor(s) that its business purpose
is to invest funds solely for returns from capital
appreciation investment income or both and
measures and evaluates the performance of
substantially all of its investments on a fair value basis
is an investment entity
An investment entity does not consolidate its
subsidiaries Instead it measures the investment at fair
value through profit or loss in accordance with IFRS 9
Consolidation
procedures
Intragroup balances transactions income and
expenses are eliminated
All entities in the group use the same accounting
policies and if practicable the same reporting date
Noncontrolling interests (NCI) are reported in equity
separately from the equity of the owners of the
parent Total comprehensive income is allocated
between NCI and the owners of the parent even if this
results in the NCI having a deficit balance
Changes in
the ownership
interest
A change in the ownership interest of a subsidiary
when control is retained is accounted for as an equity
transaction and no gain or loss is recognised
Partial disposal of an investment in a subsidiary that
results in loss of control triggers remeasurement of
the residual holding to fair value at the date control
is lost Any difference between fair value and carrying
amount is a gain or loss on the disposal recognised in
profit or loss
Interpretations NoneIFRS in your pocket |2019
89
Changes
effective
this year
None
Pending
changes
Amendments issued in September 2014 were
intended to clarify that in a transaction involving an
associate or joint venture the extent of gain or loss
recognition depends on whether the assets sold
or contributed are a business The IASB decided in
December 2015 to defer indefinitely the effective date
of the amendments although entities may elect to
apply them
The IASB will undertake a PIR of IFRS 10
History The IASB included IAS 27 Consolidated Financial
Statements and Accounting for Investments in
Subsidiaries in the set of improved Standards effective
for annual periods beginning on or after 1 January
2005 IFRS 10 replaced most of IAS 27 and was
effective for annual periods beginning on or after
1 January 2013 For periods beginning on or after
1 January 2014 an exemption from consolidating
investment entities was introduced
IFRS 11 Joint Arrangements
Overview Sets out principles for identifying whether an entity
has a joint arrangement and if it does whether it is a
joint venture or joint operation
Definitions A joint arrangement is one in which two or more
parties have joint control over activities
A joint venture is a joint arrangement in which the
venturers have rights to the net assets of the venture
A joint operation is a joint arrangement whereby each
joint operator has rights to assets and obligations for
the liabilities of the operation
The distinction between a joint operation and a joint
venture requires assessment of the structure of the
joint arrangement the legal form of any separate
vehicle the terms of the contractual arrangement and
any other relevant facts and circumstancesIFRS in your pocket |2019
90
Accounting A joint venturer applies the equity method as
described in IAS 28 except joint ventures where the
investor is a venture capital firm mutual fund or unit
trust and it elects or is required to measure such
investments at fair value through profit or loss in
accordance with IFRS 9
A joint operator accounts for the assets liabilities
revenues and expenses relating to its interest in a
joint operation in accordance with the IFRS applicable
to the particular asset liability revenue and expense
The acquisition of an interest in a joint operation in
which the activity constitutes a business should be
accounted for using the principles of IFRS 3
Interpretations None
Changes
effective
this year
Amendments to clarify that when an entity obtains
joint control of a joint operation that is a business
any previously held interest in that operation is not
remeasured are effective for annual periods beginning
on or after 1 January 2019
Pending
changes The IASB will undertake a PIR of IFRS 11
History The IASB included IAS 31 Interests in Joint Ventures
in the set of improved Standards effective for annual
periods beginning on or after 1 January 2005
IFRS 11 replaced IAS 31 and was effective for annual
periods beginning on or after 1 January 2013
IFRS 12 Disclosure of Interests in Other Entities
Overview Requires an entity to disclose information to help users
of its financial statements evaluate the nature of and
risks associated with its interests in other entities as
well as the effects of those interests on its financial
position financial performance and cash flows
Judgement Significant judgements and assumptions such as how
control joint control and significant influence has
been determinedIFRS in your pocket |2019
91
Subsidiaries Details of the structure of the group the risks
associated with consolidated entities such as
restrictions on the use of assets and settlement of
liabilities
Some summarised financial information is required
to be presented for each subsidiary that has non
controlling interests that are material to the group
Joint
arrangements
and associates
Details of the nature extent and financial effects of
interests in joint arrangements and associates
The name and summarised financial information is
required for each joint arrangement associate that is
material to the group
Structured
entities
The nature and extent of interests in structured
entities particularly the extent of potential support
the parent might be required to provide
Investment
entities
Information about significant judgements and
assumptions it has made in determining that it is an
investment entity and information when an entity
becomes or ceases to be an investment entity
Interpretations None
Changes
effective
this year
None
Pending
changes The IASB will undertake a PIR of IFRS 12
History Issued for annual periods beginning on or after
1 January 2013 as part of the package of Standards
revising control (consolidation) and joint control (joint
arrangements)
IFRS 13 Fair Value Measurement
Overview Defines fair value and provides guidance how to
estimate it and the required disclosures about fair
value measurements IFRS in your pocket |2019
92
IFRS 13 applies when another Standard requires or
permits fair value measurements or disclosures about
fair value measurements (and measurements such
as fair value less costs to sell) but does not stipulate
which items should be measured or disclosed at fair
value
Fair value Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date
A fair value measurement assumes that the asset
or liability is exchanged in an orderly transaction
between market participants under current market
conditions
Fair value
hierarchy
When an entity estimates fair value the estimate is
classified on the basis of the nature of the inputs the
entity has used
Level 1 inputs are quoted prices in active markets for
identical assets and liabilities that the entity can access
at the measurement date
Level 2 inputs are those other than quoted market
prices included within Level 1 that are observable
for the asset or liability either directly or indirectly
Level 2 inputs include quoted prices for similar assets
and interest rates and yield curves observable at
commonly quoted intervals
Level 3 inputs are unobservable for the asset or
liability Examples include an entity using its own data
to forecast the cash flows of a cashgenerating unit
(CGU) or estimating future volatility on the basis of
historical volatility
Entities are required to use valuation techniques that
maximise the use of relevant observable inputs and
minimise the use of unobservable inputs However
the objective of estimating the exit price at the
measurement date remains the same regardless of
the extent to which unobservable inputs are used
Disclosure The disclosures depend on the nature of the fair value
measurement (eg whether it is recognised in the
financial statements or merely disclosed) and the level
in which it is classified
The disclosure requirements are most extensive when
level 3 inputs are used including sensitivity analysis IFRS in your pocket |2019
93
Interpretations None
Changes
effective
this year
None
Pending
changes
None The IASB completed its postimplementation
review of IFRS 13 in 2018 and decided that the
Standard is operating as intended
History Issued for annual periods beginning on or after
1 January 2013 It was developed to be aligned with
the FASB’s equivalent guidance
IFRS 14 Regulatory Deferral Accounts
Overview The Standard permits an entity that adopts IFRS
Standards after IFRS 14 was issued to continue to
account with some limited changes for regulatory
deferral account balances’ in accordance with its
previous GAAP
IFRS 14 was issued as a temporary solution pending a
more comprehensive review of rate regulation by the
IASB (see the IASB project summary)
Regulatory
deferral
account
balances
Regulatory deferral account balances relate to the
provision of goods or services to customers at a price
or rate that is subject to rate regulation
Regulatory deferral account balances are presented
separately in the statement of financial position and
movements in these account balances must also be
presented separately in the statement of profit or loss
and other comprehensive income Specific disclosures
are also required
The requirements of other IFRS Standards are required
to be applied to regulatory deferral account balances
subject to specific exceptions exemptions and
additional requirements as noted in the Standard
Interpretations NoneIFRS in your pocket |2019
94
Changes
effective
this year
None
Pending
changes
The IASB is developing a new accounting model to give
users of financial statements better information about
a company’s incremental rights and obligations arising
from its rateregulated activities with the objective
of either publishing a second Discussion Paper or an
Exposure Draft
History Issued to be available for the first annual IFRS financial
statements beginning on or after
1 January 2016 with earlier application permitted
IFRS 15 Revenue from Contracts with Customers
Overview Prescribes the accounting for revenue from sales of
goods and rendering of services to a customer
The Standard applies only to revenue that arises
from a contract with a customer Other revenue such
as from dividends received would be recognised in
accordance with other Standards
Contract with a
customer
A contract with a customer is within the scope of
this Standard when it has commercial substance
the parties have approved it the rights of the parties
regarding the goods or services to be transferred
and the payment terms can be identified the parties
are committed to perform their obligations and
enforce their rights and it is probable that the entity
will collect the consideration to which it is entitled
Core principle The Standard uses a control model
An entity recognises revenue to depict the transfer
of promised goods or services to customers in an
amount that reflects the consideration to which the
entity expects to be entitled in exchange for those
goods or servicesIFRS in your pocket |2019
95
Five steps The Standard sets out five steps an entity applies to
meet the core principle
Step 1 Identify the contract with a customer It is
the contract that creates enforceable rights and
obligations between the entity and its customer
Step 2 Identify the performance obligations in the
contract Each promise to transfer to a customer
a good or service that is distinct is a performance
obligation and is accounted for separately
Step 3 Determine the transaction price The
transaction price is the amount of consideration to
which the entity expects to be entitled in exchange
for transferring promised goods or services to the
customer It could be a fixed or variable amount
or in a form other than cash If the consideration
is variable the entity must estimate the amount
to which it expects to be entitled but recognises
it only to the extent that it is highly probable that
a significant reversal will not occur when the
uncertainty is resolved The transaction price is
adjusted for the effects of the time value of money
if the contract includes a significant financing
component
Step 4 Allocate the transaction price to the
performance obligations in the contract The
transaction price is allocated to each performance
obligation on the basis of the relative standalone
selling prices of each distinct good or service
promised in the contract If a standalone selling
price is not observable an entity estimates it
Step 5 Recognise revenue when (or as) the entity
satisfies a performance obligation Revenue is
recognised when (or as) the performance obligation
is satisfied and the customer obtains control of
that good or service This can be at a point in
time (typically for goods) or over time (typically for
services) The revenue recognised is the amount
allocated to the satisfied performance obligation IFRS in your pocket |2019
96
Application
guidance
The Standard includes application guidance
for specific transactions such as performance
obligations satisfied over time methods for
measuring progress of performance obligations
sales with a right of return warranties principal
versus agent considerations customer options
for additional goods or services nonrefundable
upfront fees bill and hold arrangements and
customers unexercised rights licensing repurchase
agreements consignment arrangements and
customer acceptance
The Standard also includes guidance on variable
consideration and time value of money and specific
disclosure requirements
Interpretations None
Changes
effective
this year
None
Pending
changes
None
History Issued in 2014 for annual periods beginning on
or after 1 January 2018 IFRS 15 replaced IAS 11
Construction Contracts and IAS 18 Revenue and
related Interpretations including IFRIC 13 Customer
Loyalty Programmes IFRIC 15 Agreements for the
Construction of Real Estate IFRIC 18 Transfers of
Assets from Customers and SIC 31 Revenue – Barter
Transactions Involving Advertising Services
Some clarifications were issued in April 2016 with
the same effective date
IFRS 16 Leases
Overview Sets out the recognition measurement presentation
and disclosure requirements for leases
A lessee recognises a leased asset and lease
obligation for all leases Lessors continue to
distinguish between operating and finance leasesIFRS in your pocket |2019
97
Summary A contract is or contains a lease if it conveys the right
to control the use of an identified asset for a period
of time in exchange for consideration Control is
conveyed when the customer has the right to direct
the identified asset’s use and to obtain substantially its
economic benefits from that use
Accounting by a
lessee
The Standard has a single lessee accounting model
requiring lessees to recognise a rightofuse asset and
a lease liability The rightofuse asset is measured
initially at the amount of the lease liability plus any
initial direct costs incurred by the lessee
After lease commencement the rightofuse asset
is accounted for in accordance with IAS 16 (unless
specific conditions apply)
The lease liability is measured initially at the present
value of the lease payments payable over the lease
term discounted at the rate implicit in the lease if
that can be readily determined If that rate cannot be
readily determined the lessee uses its incremental
borrowing rate Lease payments are allocated
between interest expense and repayment of the lease
liability
When the lease payments are variable the lessee does
not include those when measuring the rightofuse
asset and the lease liability but instead recognises
the amounts payable as they fall due The exception is
variable payments that depend on an index or a rate
which are included in the initial measurement of a
lease liability and the rightofuse asset
There are optional recognition exemptions when
the lease term is 12 months or less or when the
underlying asset has a low value when new If applied
the lease payments are recognised on a basis that
represents the pattern of the lessee’s benefit (eg
straightline over the lease term)IFRS in your pocket |2019
98
Accounting by a
lessor
The IFRS 16 approach to lessor accounting is
substantially unchanged from its predecessor IAS 17
Lessors classify each lease as an operating lease or a
finance lease
A lease is classified as a finance lease if it transfers
substantially all the risks and rewards incidental to
ownership of an underlying asset Otherwise a lease is
classified as an operating lease
A lessor recognises assets held under a finance
lease as a receivable at an amount equal to the net
investment in the lease upon lease commencement
For sale and leaseback transactions the seller is
required to determine whether the transfer of an
asset is a sale by applying the requirements of IFRS 15
If it is a sale the seller measures the rightofuse asset
at the proportion of the previous carrying amount that
relates to the right of use retained As a result the
seller only recognises the amount of gain or loss that
relates to the rights transferred to the buyer
Interpretations None
Changes
effective
this year
This is a new Standard It replaces IAS 17 Leases and
related Interpretations including IFRIC 4 Determining
whether an Arrangement Contains a Lease SIC15
Operating Leases – Incentives and SIC27 Evaluating the
Substance of Transactions Involving the Legal Form of
a Lease
Pending
changes
The IASB is planning to include an amendment to
an Illustrative Example in IFRS 16 in the next Annual
Improvements Cycle The example relates to lease
incentives
History Issued in 2016 and effective for annual periods
beginning on or after 1 January 2019 Earlier
application is permitted It was developed with the
FASB but the IASB and FASB diverged on some
aspects of their new standardsIFRS in your pocket |2019
99
Additional Interpretations
IFRIC 12 and IFRIC 17 are summarised separately because they
draw from several Standards and are more complex than most
Interpretations
IFRIC 12 Service Concession Arrangements
Overview To address the accounting by private sector
operators involved in the provision of public sector
infrastructure assets and services The Interpretation
does not address the accounting for the government
(grantor) side of such arrangements
Infrastructure
assets
Infrastructure assets that are not controlled by an
operator are not recognised as property plant and
equipment of the operator
Instead the operator recognises a financial asset
when the operator has an unconditional right to
receive a specified amount of cash or other financial
asset over the life of the arrangement an intangible
asset – when the operator’s future cash flows are not
specified (eg when they will vary according to usage
of the infrastructure asset) or both a financial asset
and an intangible asset when the operator’s return is
provided partially by a financial asset and partially by
an intangible asset
Interpretations SIC29 Service Concession Arrangements Disclosures
sets out disclosure requirements for service
concession arrangements
Changes
effective
this year
None
Pending
changes
None
History Issued in November 2006 and effective for periods
beginning on or after 1 January 2008
IFRIC 17 Distributions of Noncash Assets to Owners
Overview To address the accounting when noncash assets are
distributed to ownersIFRS in your pocket |2019
100
Dividends A dividend payable must be recognised when the
dividend is appropriately authorised and is no
longer at the discretion of the entity
An entity measures the noncash dividend payable
at the fair value of the assets to be distributed The
liability is measured at each reporting date with
changes recognised directly in equity
The difference between the dividend paid and
the carrying amount of the assets distributed is
recognised in profit or loss
Changes
effective
this year
None
Pending
changes
None
History Issued in November 2006 and effective for annual
periods beginning on or after 1 July 2009
Requirements that are not yet mandatory
IFRS 17 Insurance Contracts
Overview Establishes the principles for the recognition
measurement presentation and disclosure of
insurance contracts
Insurance and
reinsurance
contracts
IFRS 17 specifies how an entity recognises
measures presents and discloses insurance
contracts reinsurance contracts and investment
contracts with discretionary participation features
An insurance contract is one in which the issuer
accepts significant insurance risk by agreeing to
compensate the policyholder for the insured event
A reinsurance contract is an insurance contract
issued by the reinsurer to compensate another
entity for claims arising from one or more insurance
contracts it holds as an issuer IFRS in your pocket |2019
101
Aggregation
of insurance
contracts
Entities must identify portfolios of insurance
contracts being those contracts that have similar
risks and are managed together such as within a
product line
Each portfolio is divided into groups of insurance
contracts on the basis of at a minimum those that
at initial recognition are onerous have no significant
possibility of becoming onerous subsequently or do
not fall into either category
Recognition A group of insurance contracts is recognised from
the earlier of the beginning of its coverage period or
the date when the first payment from a policyholder
in the group becomes due or for a group of
onerous contracts when the group becomes
onerous
Initial
measurement
On initial recognition an entity measures a group
of insurance contracts at the total of the group’s
fulfilment cash flows (FCF) and the contractual
service margin (CSM)
The FCF comprises an estimate of future cash flows
an adjustment to reflect the time value of money
and the financial risks associated with the future
cash flows and an adjustment for nonfinancial risk
The CSM is the unearned profit of the group of
insurance contracts that the entity will recognise
as it provides services in the future It is measured
on initial recognition at an amount that unless the
group of contracts is onerous results in no income
or expenses arising from the initial recognition of
the FCF the derecognition at that date of any asset
or liability recognised for insurance acquisition cash
flows and any cash flows arising from the contracts
in the group at that dateIFRS in your pocket |2019
102
Subsequent
measurement
The carrying amount of a group of insurance
contracts at the end of each reporting period is
the sum of the liability for remaining coverage
(comprising the FCF related to future services and
the CSM at that date) and the liability for incurred
claims
The CSM is adjusted at the end of each reporting
period to reflect the profit on a group of insurance
contracts that relates to the future service to be
provided
For groups of contracts with a coverage period
of less than one year or where it is reasonably
expected to produce a liability measurement
that would not differ materially from the general
approach under IFRS 17 a simplified Premium
Allocation Approach can be applied
Specific measurement requirements apply to
onerous insurance contracts reinsurance contracts
and investment contracts with discretionary
participation features
Presentation
in the
statement
of financial
performance
Amounts recognised in the statement of financial
performance are disaggregated into an insurance
service result and insurance finance income or
expenses
The insurance service result is presented in profit or
loss and comprises revenue from the provision of
coverage and other services and the incurred claims
and other incurred expenses
Insurance finance income or expenses reflects
changes from the effect of the time value of
money and financial risk (excluding any such
changes for groups of insurance contracts with
direct participating insurance contracts that would
instead adjust the CSM) Entities can choose to
present all insurance finance income or expenses
in profit or loss or to present in profit or loss only
an amount determined by a systematic allocation
of the expected total insurance finance income or
expenses over the duration of a group of contracts
If the latter option is taken the remaining insurance
finance income or expense is presented in other
comprehensive incomeIFRS in your pocket |2019
103
Presentation
in the
statement
of financial
position
Separate presentation is required of insurance and
reinsurance contracts issued further separated into
those that are assets and those that are liabilities
Disclosure Quantitative and qualitative information is required
about the amounts recognised in the financial
statements that arise from insurance contracts
the significant judgements and changes in those
judgements made when applying IFRS 17 and the
nature and extent of risks arising from insurance
contracts
Pending
changes
The IASB is discussing stakeholder concerns and
implementation challenges raised since IFRS 17 was
issued and is considering whether there is a need
to amend the Standard This includes the effective
date of the Standard
History Issued in 2017 it is effective for annual periods
beginning on or after 1 January 20213 and replaces
IFRS 4 Insurance Contracts Earlier application is
permitted
3 In 2018 the IASB tentatively decided that the mandatory effective date of IFRS 17 should be deferred
by one year so that entities would be required to apply IFRS 17 for annual periods beginning on
or after 1 January 2022 and that the fixed expiry date for the temporary exemption in IFRS 4 from
applying IFRS 9 should be amended so that all entities would be required to apply IFRS 9 for annual
periods beginning on or after 1 January 2022 An ED proposing these changes is expected in 2019IFRS in your pocket |2019
104
IASB projects
The IASB updates its work plan each month which can be viewed
at httpwwwifrsorgprojectsworkplan
You can follow progress on these projects on IAS Plus Previews
of the IASB staff papers are available on IAS Plus about a week
before each IASB meeting and summaries of the discussions and
decisions reached are available shortly after each meeting
httpswwwiaspluscomenmeetingtypesiasb
The information in the following tables reflects the IASB’s work plan
at 31 December 2018
IASB
requirement Topic Description
IAS 1 Classification of
liabilities
An ED proposing amendments
related to how to classify debt
when there is a right to renew the
debt was published in February
2015 The IASB is currently
reviewing the comments received
Primary financial
statements
The IASB is exploring potential
changes to the structure and
content of the primary financial
statements with a focus on
the statement(s) of financial
performance A DP or ED is
expected in the second half of
2019
Accounting
policies
In 2018 the IASB decided to
develop guidance and examples
to help entities apply materiality
judgements to the disclosure of
accounting policies
IAS 8 Accounting
policies and
accounting
estimates
In September 2017 the IASB
proposed amendments to IAS 8
to the definitions of an accounting
policy and an accounting estimate
The IASB is considering the
comments received and expects to
decide the project direction in the
second quarter of 2019IFRS in your pocket |2019
105
IASB
requirement Topic Description
Accounting
policy changes
The IASB has proposed changes
that would result in more voluntary
changes in accounting policies
that respond to agenda decisions
made by the IFRS Interpretations
Committee being accounted for
prospectively An ED was issued in
2018 and the IASB is considering
the comments received
IAS 12 Deferred tax
related to
assets and
liabilities arising
from a single
transaction
In 2018 the IASB decided
to propose a narrowscope
amendment that would narrow
the initial recognition exemption
in IAS 12 so that it would not
apply to transactions that give rise
to both taxable and deductible
temporary differences to the
extent the amounts recognised for
the temporary differences are the
same An ED is expected in the first
half of 2019
IAS 16 Proceeds before
intended use
An ED proposing that proceeds
from testing an asset be
recognised as revenue was
published in June 2017 The IASB
has reviewed the comments
received on the ED and is
now planning to finalise the
amendments
IAS 19 Pension benefits
that depend on
asset returns
The IASB is gathering evidence to
help decide whether to develop
proposals to make a narrowscope
amendment to IAS 19 for pension
benefits that depend on asset
returns
To gather evidence for this
research project the IASB is
planning to conduct outreach
activities during the first half of
2019IFRS in your pocket |2019
106
IASB
requirement Topic Description
IAS 28 Equity method This project is in the research
pipeline The IASB plans no further
work until the PIR of IFRS 11 is
undertaken
IAS 29 Scope This project is in the research
pipeline If the research establishes
that it would not be feasible to
extend the scope of IAS 29 in
this way the IASB expects to
recommend no work on IAS 29
IAS 32 Financial
instruments with
characteristics of
equity
The IASB is exploring whether
it can improve the existing
requirements in IAS 32 for
classifying financial instruments
that have characteristics of both
a liability and equity A DP was
published in 2018 with a sixmonth
comment period
IAS 36 Goodwill and
impairment
The IASB is exploring whether
the existing impairment test
for goodwill can be improved
or simplified The IASB plans
to publish a DP or an ED in the
second half of 2019
IAS 37 Provisions The IASB has recommenced
work on a project to review the
implications of the new Conceptual
Framework on the accounting for
provisions The IASB is currently
reviewing the research
Onerous
contracts
The IASB proposed to clarify the
onerous contract requirements in
an ED issued in 2018
Pollutant pricing
mechanisms
This project is in the research
pipelineIFRS in your pocket |2019
107
IASB
requirement Topic Description
IAS 39 Dynamic risk
management
The IASB is assessing how to
replace the remaining sections
of IAS 39 that deal with macro
hedging A DP was issued in
2014 The IASB expects to have
developed a core model sometime
in the first half of 2019
IAS 41 Cash flows from
taxation
A proposal to remove the
requirement to exclude cash flows
from taxation when measuring
fair value of agricultural assets will
be included in the next Annual
Improvements ED
IFRS 1 Adoption by a
subsidiary
A proposal to amend IFRS 1 to
require a subsidiary that applies
IFRS 1 to measure its cumulative
translation differences using the
amounts reported by its parent
This amendment will be included in
the next Annual Improvements ED
IFRS 3 Intangible
assets goodwill
and impairment
The IASB is exploring whether the
initial measurement of intangible
assets and therefore goodwill can
be improved or simplified A DP or
ED is expected in the second half
of 2019
Business
combinations
under common
control
The IASB is examining how
companies should account for
combinations of businesses
under common control which are
currently outside the scope of IFRS
3 A DP is expected in 2020
Updating a
Reference to
the Conceptual
Framework
The IASB is developing proposals
to update a reference to the
Conceptual Framework in IFRS 3
in a way that avoid conflicts with
other IFRS Standards
IFRS 5 Post
implementation
review
In 2018 the IASB decided to
undertake a postimplementation
review of IFRS 5 in 2019 or 2020 IFRS in your pocket |2019
108
IASB
requirement Topic Description
IFRS 6 Extractive
activities
In 2018 the IASB started a project
to replace IFRS 6
IFRS 8 Post
implementation
Review
Having completed the review a
Feedback Statement is expected to
be published in February 2019
IFRS 9 Dynamic risk
management
The IASB is assessing how to
replace the remaining sections
of IAS 39 that deal with macro
hedging A DP was issued in
2014 The IASB expects to have
developed a core model in the
second half of 2019
10 per cent test A proposal to clarify which fees
and costs are included in the
quantitative 10 per cent’ test for
assessing whether to derecognise
a financial liability is expected to
be included in the next Annual
Improvements ED
IFRS 10 11
and 12
Post
implementation
review
The IASB will undertake a post
implementation review of IFRS 10
11 and 12
IFRS 14 Rateregulated
Activities
IFRS 14 is a temporary Standard
The IASB has been considering
whether entities that operate
in rateregulated environments
should recognise assets and
liabilities arising from the effects of
rate regulation A DP was published
in 2014 A second DP or an ED
is expected in the second half of
2019
IFRS 16 Lease Incentives A proposal to amend Example
13 of the illustrative examples
accompanying IFRS 16 is expected
to be included in the next Annual
Improvements ED IFRS in your pocket |2019
109
IASB
requirement Topic Description
IFRS 17 Stakeholder
concerns and
implementation
challenges
The IASB is discussing stakeholder
concerns and implementation
challenges raised since IFRS 17
was issued and is considering
whether there is a need to amend
the Standard This includes the
effective date of the Standard
An ED is expected in 2019
IFRIC 14 Availability of a
refund
An ED was published in June
2015 to clarify the accounting
when other parties have rights to
make particular decisions about
a company＇s defined benefit plan
The IASB is undertaking additional
analysis before deciding what steps
to take next
Crosscutting Discount rates The IASB has been examining
why different standards require
different discount rates and
identifying ways to be more
consistent in how discount
rates are used and described
A summary of this research is
expected in February 2019
Disclosure
Initiative –
Principles of
disclosure
This research project is focused on
broader challenges associated with
disclosure effectiveness The IASB
plans to publish a summary of the
research findings in due course
Variable and
contingent
consideration
This project is in the research
pipeline The IFRS IC has
considered this topic but has been
unable to conclude on all of the
issues because of interactions
between several Standards
IBOR reform The IASB is exploring the possible
effects on financial reporting of
interbank offered rate (IBOR)
reform An ED is expected in the
first half of 2019IFRS in your pocket |2019
110
IASB
requirement Topic Description
Targeted
Standards
level review
of disclosure
requirements
In 2018 the IASB decided to
perform a targeted Standardslevel
review of disclosure requirements
Management
Commentary
Wider corporate
reporting
The IASB is reviewing its Practice
Statement on Management
Commentary as part of a project
on wider corporate reporting
An ED is planned for the first half
of 2020
IFRS Taxonomy Updates The IASB is proposing a general
update to the taxonomy It
is also developing common
practice elements for fair value
measurement (IFRS 13)IFRS in your pocket |2019
111
Deloitte IFRS resources
In addition to this publication we have a range of tools and publications
to assist in implementing and reporting under IFRS Standards
Websites
wwwdeloittecom
wwwiaspluscom
Publications
iGAAP Deloitte iGAAP publications set out comprehensive
guidance for entities reporting under IFRS Standards
and for entities considering whether to move to
IFRS Standards in the near future The publications
are available in print books or online at httpsdart
deloittecomiGAAP
IFRS in Focus Published at the time of release of new and revised
Standards and Interpretations EDs and discussion
documents including summaries of the documents
and consideration of the principal amendments
proposals
IFRS Project
Insights
A quick overview of the key projects of the IASB
with a summary of the current status key decisions
and proposals key considerations for entities given
the status of the project and the next steps in the
project
IFRS Industry
Insights
These concise and informative publications provide
insights into the potential impacts of recent
pronouncements in particular industries focusing
on the key practical implications to be considered
IFRS on Point A monthly summary of financial reporting
developments
Model financial
statements
and checklists
Model IFRS financial statements illustrate the
application of the presentation and disclosure
requirements of IFRS Standards
IFRS compliance presentation and disclosure
checklists assist in ensuring compliance with IFRS
requirementsIFRS in your pocket |2019
112
Translated
material
This IFRS in your pocket guide is available in a
number of languages here wwwiaspluscom
pocket
You will also find other Deloitte IFRS resources in
various languages here httpswwwiaspluscom
entagtypesnonenglish
Publication series available for individual
jurisdictions can be found here
httpwwwiaspluscomentagtypesmemberfirms
Electronic editions of our IFRS related publications are available at
wwwiaspluscompubs
Our IAS Plus website also allows visitors to register and subscribe
to various publications to receive emails as new editions are
released Simply visit wwwiaspluscom and select the login or
register’ option at the top of the screen
You can also keep uptodate with the latest publications and
financial reporting developments in general through RSS (links
are available on wwwiaspluscom) and Twitter (wwwtwittercom
iasplus)
Deloitte IFRS elearning
Deloitte is pleased to make available in the public interest and without
charge our elearning training materials for IFRS Standards Modules are
available for virtually all IAS StandardsIFRS Standards They are kept up
to date regularly
Deloitte eLearning modules can be found at
httpwwwiaspluscomentagtypeselearning IFRS in your pocket |2019
113
Contacts
Veronica Poole
Global IFRS Leader
+44 20 7007 0884
vepoole@deloittecouk
IFRS centres of excellence
Americas
Argentina Fernando Lattuca arifrscoe@deloittecom
Canada Karen Higgins ifrsca@deloitteca
LATCO Miguel Millan mxifrscoe@deloittemxcom
United States Robert Uhl iasplusus@deloittecom
Asia–Pacific
Australia Anna Crawford ifrs@deloittecomau
China Stephen Taylor ifrs@deloittecomcn
Japan Shinya Iwasaki ifrs@tohmatsucojp
Singapore James Xu ifrssg@deloittecom
Europe–Africa
Belgium Thomas Carlier ifrsbelgium@deloittecom
Denmark Jan Peter Larsen ifrs@deloittedk
France Laurence Rivat ifrs@deloittefr
Germany Jens Berger ifrs@deloittede
Italy Massimiliano Semprini ifrsit@deloitteit
Luxembourg Eddy Termaten ifrs@deloittelu
Netherlands Ralph Ter Hoeven ifrs@deloittenl
Russia Maria Proshina ifrs@deloitteru
South Africa Nita Ranchod ifrs@deloittecoza
Spain Cleber Custodio ifrs@deloittees
Switzerland Nadine Kusche ifrsdesk@deloittech
United Kingdom Elizabeth Chrispin deloitteifrs@deloittecoukDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited
(DTTL) its global network of member firms and their related entities
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