International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards

example of individual assessment of changes in credit

  Decommissioning, Ch. 27, 6.3; Ch. 39, 10

  risk, Ch. 47, 6.5.3

  accounting for changes in costs, Ch. 18, 4.3

  determining the credit risk at initial recognition of an

  in extractive industries, Ch. 39, 10

  identical group of financial assets, Ch. 47, 6.6

  foreign exchange differences, treatment of, Ch. 39, 10.2

  factors/indicators of changes in credit risk, Ch. 47, 6.2

  indefinite life assets, Ch. 39, 10.3

  examples, Ch. 47, 6.2.1

  recognition and measurement issues, Ch. 39, 10.1

  illustrative examples when assessing significant

  provisions, Ch. 27, 6.3

  increases in credit risk, Ch. 47, 6.2.3

  Deductible temporary differences, Ch. 29, 6.2.2. See also

  past due status and more than 30 days past due

  Temporary differences

  presumption, Ch. 47, 6.2.2

  business combinations and consolidation, Ch. 29, 6.2.2.E

  use of behavioural factors, Ch. 47, 6.2.4

  definition, Ch. 29, 3

  operational simplifications, Ch. 47, 16.4

  foreign currency differences, Ch. 29, 6.2.2.F

  12-month risk as an approximation for change in

  recognition, Ch. 29, 7.1.2

  lifetime risk, Ch. 47, 6.4.4

  initial recognition of goodwill, Ch. 29, 7.2.2.B

  assessment at the counterparty level, Ch. 47, 6.4.4

  restrictions on recognition, Ch. 29, 7.4

  delinquency, Ch. 47, 6.4.2

  and future and ‘probable’ taxable profit, Ch. 29, 7.4.3

  determining maximum initial credit risk for a

  and unrealised losses, Ch. 29, 7.4.5

  portfolio, Ch. 47, 6.4.5

  revaluations, Ch. 29, 6.2.2.C

  low credit risk, Ch. 47, 6.4.1

  tax re-basing, Ch. 29, 6.2.2.D

  revolving credit facilities, Ch. 47, 12

  transactions that affect, Ch. 29, 6.2.2.A

  on transition, Ch. 47, 16.2.2

  profit/loss, Ch. 29, 6.2.2.A

  in the tranche held, Ch. 44, 6.6.2

  statement of financial position, Ch. 29, 6.2.2.B

  Cross-currency interest rate swaps (CCIRS), Ch. 49, 3.2.5,

  Deemed cost on first-time adoption, Ch. 5, 5.5

  7.3.3.B, 7.5.3

  for assets used in operations subject to rate regulation, Ch. 5,

  Crypto-assets

  5.5.4

  cost model, Ch. 17, 11.5.2.A

  disclosures regarding, Ch. 5, 6.5

  recognition and initial measurement, Ch. 17, 11.5.1

  event-driven fair value measurement as, Ch. 5, 5.5.2

  revaluation model, Ch. 17, 11.5.2.B

  exemption for event-driven revaluations after the date of

  standard setter activity, Ch. 17, 11.5.3

  transition, Ch. 5, 5.5.2.C

  subsequent measurement, Ch. 17, 11.5.2

  ‘fresh start’ accounting, Ch. 5, 5.5.2.B

  CSM. See Contractual service margin

  ‘push down’ accounting, Ch. 5, 5.5.2.A

  Cumulative preference shares, Ch. 11, 7.5.2

  fair value or revaluation as, Ch. 5, 5.5.1

  Cumulative translation differences, foreign operations, Ch. 5, 5.7

  determining deemed cost, Ch. 5, 5.5.1.A

  Current assets, Ch. 3, 3.1.3

  before the date of transition to IFRSs, Ch. 5, 5.5.1.B

  for oil and gas assets, Ch. 5, 5.5.3

  Current liabilities, Ch. 3, 3.1.4

  of subsidiary, on transition to IFRS, Ch. 8, 2.1.2

  Current service cost, employee benefits, Ch. 31, 5, 10.1

  use of

  Current tax, Ch. 29, 5. See also IAS 12

  after severe hyperinflation, Ch. 5, 6.5.5

  definition, Ch. 29, 3

  for assets used in operations subject to rate regulation,

  Customer, Ch. 28, 5.6

  Ch. 5, 6.5.4

  definition, Ch. 28, 3.2

  fair value as, Ch. 5, 6.5.1

  Customer relationship intangible assets, Ch. 9, 5.5.2.B

  for investments in subsidiaries, joint ventures and

  Customer-supplier relationship, Ch. 6, 7.1

  associates, Ch. 5, 6.5.2

  for oil and gas assets, Ch. 5, 6.5.3

  DAC. See Deferred acquisition costs

  Deemed disposals, Ch. 7, 3.6; Ch. 11, 7.12.5

  Date of transition to IFRSs, Ch. 5, 1.3

  Default

  ‘Day 1’ profits

  , Ch. 45, 3.3

  change in the risk of a default occurring, Ch. 47, 6.1

  De facto agents, Ch. 12, 4.2.5

  contractually linked instruments (CLIs) and subordinated

  De facto control, Ch. 6, 4.3.3

  interests, Ch. 47, 6.1.1

  Death-in-service benefits, Ch. 31, 3.6

  determining change in risk of a default under loss rate

  Debt, extinguishment of, Ch. 48, 6.1

  approach, Ch. 47, 6.1.3

  gains and losses on, Ch. 48, 6.3

  impact of collateral, credit enhancements and financial

  Debt instruments, Ch. 41, 3.4.1.B; Ch. 44, 2.1

  guarantee contracts, Ch. 47, 6.1.2

  convertible and exchangeable, Ch. 33, 6.4.1.A;

  definition of, Ch. 47, 5.1

  Ch. 42, 5.1.8

  exposure at default, revolving facilities, Ch. 47, 12.3

  Index

  115

  losses expected in the event of default, Ch. 47, 5.8

  recognition, Ch. 29, 7

  cash flows from the sale of a defaulted loan, Ch. 47, 5.8.2

  assets carried at fair value/revalued amount, Ch. 29, 7.3

  credit enhancements: collateral and financial guarantees,

  basic principles, Ch. 29, 7.1

  Ch. 47, 5.8.1

  deductible temporary differences (deferred tax assets),

  treatment of collection costs paid to an external debt

  Ch. 29, 7.1.2

  collection agency, Ch. 47, 5.8.3

  taxable temporary differences (deferred tax liabilities),

  probability of default (PD) and loss rate approaches, Ch. 47,

  Ch. 29, 7.1.1

  5.4

  deferred taxable gains, Ch. 29, 7.7

  loss rate approach, Ch. 47, 5.4.2

  initial recognition exception, Ch. 29, 7.2

  probability of default approach, Ch. 47, 5.4.1

  acquisition of subsidiary not accounted for as a

  Deferred acquisition costs (DAC), Ch. 51, 9.1.1.B

  business combination, Ch. 29, 7.2.9

  Deferred tax, Ch. 29, 6–8. See also IAS 12; Income taxes; Tax

  changes to temporary differences after initial

  bases; Temporary differences

  recognition, Ch. 29, 7.2.4

  assets, Ch. 29, 6.1.1; Ch. 29, 7.1.2

  change in carrying value due to revaluation,

  investment property held by a ‘single asset’ entity, Ch. 19, 6.10

  Ch. 29, 7.2.4.B

  liabilities, Ch. 29, 6.1.2, 7.1.1

  change in tax base due to deductions in tax return,

  measurement, Ch. 29, 8

  Ch. 29, 7.2.4.C

  different tax rates applicable to retained and distributed

  depreciation, amortisation/impairment of initial

  profits, Ch. 29, 8.5

  carrying value, Ch. 29, 7.2.4.A

  effectively tax-free entities, Ch. 29, 8.5.1

  temporary difference altered by legislative change,

  withholding tax/distribution tax?, Ch. 29, 8.5.2

  Ch. 29, 7.2.4.D

  discounting, Ch. 29, 8.6

  initial recognition of compound financial instruments

  expected manner of recovery of assets/settlement of

  by th
e issuer, Ch. 29, 7.2.8

  liabilities, Ch. 29, 8.4

  initial recognition of goodwill, Ch. 29, 7.2.2

  assets and liabilities with more than one tax base,

  initial recognition of other assets and liabilities,

  Ch. 29, 8.4.3

  Ch. 29, 7.2.3

  carrying amount, Ch. 29, 8.4.2

  intragroup transfers of assets with no change in tax

  change in expected manner of recovery of an

  base, Ch. 29, 7.2.5

  asset/settlement of a liability, Ch. 29, 8.4.11

  partially deductible and super-deductible assets,

  depreciable PP&E and intangible assets, Ch. 29, 8.4.5

  Ch. 29, 7.2.6

  determining the expected manner of recovery of assets,

  tax losses, acquisition of, Ch. 29, 7.2.1

  Ch. 29, 8.4.4

  transactions involving the initial recognition of an asset

  investment properties, Ch. 19, 6.10; Ch. 29, 8.4.7

  and liability, Ch. 29, 7.2.7

  non-depreciable PP&E and intangible assets, Ch. 29,

  decommissioning costs, Ch. 29, 7.2.7.A

  8.4.6

  finance leases taxed as operating leases, Ch. 29,

  non-amortised or indefinite life intangible assets,

  7.2.7.B

  Ch. 29, 8.4.6.B

  interpretation issues, Ch. 29, 7.1.3

  PP&E accounted for using the revaluation model,

  accounting profit, Ch. 29, 7.1.3.A

  Ch. 29, 8.4.6.A

  taxable profit ‘at the time of the transaction,’ Ch. 29,

  other assets and liabilities, Ch. 29, 8.4.8

  7.1.3.B

  ‘outside’ temporary differences relating to subsidiaries,

  ‘outside’ temporary differences relating to subsidiaries,

  branches, associates and joint arrangements, Ch.

  branches, associates and joint arrangements, Ch. 29,

  29, 8.4.9

  7.5

  ‘single asset’ entities, Ch. 19, 4.1.2, 6.10; Ch. 29, 8.4.10

  anticipated intragroup dividends in future periods,

  tax planning strategies, Ch. 29, 8.4.1

  Ch. 29, 7.5.4

  legislation at the end of the reporting period, Ch. 29, 8.1

  consolidated financial statements of receiving

  ‘prior year adjustments’ of previously presented tax

  entity, Ch. 29, 7.5.4.A

  balances and expense (income), Ch. 29, 8.3

  separate financial statements of paying entity,

  uncertain tax treatments, Ch. 29, 8.2

  Ch. 29, 7.5.4.B

  unrealised intragroup profits and losses in consolidated

  calculation of, Ch. 29, 7.5.1

  financial, Ch. 29, 8.7

  consolidated financial statements, Ch. 29, 7.5.1.A

  intragroup transfers of goodwill and intangible assets,

  separate financial statements, Ch. 29, 7.5.1.B

  Ch. 29, 8.7.1

  deductible temporary differences, Ch. 29, 7.5.3

  consolidated financial statements, Ch. 7, 2.4

  other overseas income taxed only on remittance,

  individual financial statements of buyer, Ch. 29,

  Ch. 29, 7.5.6

  8.7.1.A

  taxable temporary differences, Ch. 29, 7.5.2

  individual financial statements of seller, Ch. 29,

  unpaid intragroup interest, royalties, management

  8.7.1.B

  charges etc., Ch. 29, 7.5.5

  when the tax base of goodwill is retained by the

  restrictions on recognition of deferred tax assets, Ch. 29,

  transferor entity, Ch. 29, 8.7.1.D

  7.4

  116 Index

  Deferred tax —contd

  economic benefits available as reduced future

  recognition —contd

  contributions when no minimum funding

  restrictions on recognition of deferred tax assets —contd

  requirements for future service, Ch. 31, 8.2.2

  effect of disposals on recoverability of tax losses,

  IFRIC 14 requirements concerning limit on defined

  Ch. 29, 7.4.8

  benefit asset, Ch. 31, 8.2.1

  tax losses of retained entity recoverable against

  minimum funding requirements, IFRIC interpretation

  profits of subsidiary, Ch. 29, 7.4.8.B

  effect on economic benefit available as a reduction

  tax losses of subsidiary disposed of recoverable

  in future contributions, Ch. 31, 8.2.3

  against profits of retained entity, Ch. 29, 7.4.8.C

  when the requirement may give rise to a liability,

  tax losses of subsidiary disposed of recoverable against

  Ch. 31, 8.2.4

  profits of that subsidiary, Ch. 29, 7.4.8.A

  pension funding payments contingent on future events

  re-assessment of deferred tax assets, Ch. 29, 7.4.7

  within the control of the entity, Ch. 31, 8.2.5

  restrictions imposed by relevant tax laws, Ch. 29, 7.4.1

  net defined benefit liability (asset), Ch. 31, 8.1

  sources of ‘probable’ taxable profit, estimates of future

  treatment in profit/loss and other comprehensive income,

  taxable profits, Ch. 29, 7.4.3

  Ch. 31, 10

  sources of ‘probable’ taxable profit, taxable temporary

  net interest on the net defined benefit liability (asset),

  differences, Ch. 29, 7.4.2

  Ch. 31, 10.2

  tax planning opportunities, Ch. 29, 7.4.4

  past service cost, Ch. 31, 10.1.1

  unrealised losses on debt securities measured at fair

  remeasurements, Ch. 31, 10.3

  value, Ch. 29, 7.4.5

  service cost, Ch. 31, 10.1

  unused tax losses and unused tax credits, Ch. 29, 7.4.6

  settlements, Ch. 31, 10.2.2

  ‘tax-transparent’ (‘flow-through’) entities, Ch. 29, 7.6

  vs. defined contribution plans, Ch. 31, 3.1

  tax bases and temporary differences, Ch. 29, 6

  Defined contribution plans, Ch. 31, 4

  Deferred tax assets, Ch. 29, 3

  accounting requirements, Ch. 31, 4.1

  Deferred tax liabilities, Ch. 29, 3

  disclosure requirements, Ch. 31, 15

  Defined benefit plans, Ch. 31, 5–11. See also IAS 19; IFRIC 14

  vs. defined benefit plans, Ch. 31, 3.1

  costs of administering, Ch. 31, 11

  with vesting conditions, Ch. 31, 4.1.2

  disclosure requirements, Ch. 31, 15.2

  Delegated decision making, Ch. 12, 4.2.4

  amounts in financial statements, Ch. 31, 15.2.2

  Delegated power, Ch. 6, 6.1

  characteristics and risks associated with, Ch. 31, 15.2.1

  Demand deposits, Ch. 36, 3.2.1

  future cash flows, amount, timing and uncertainty of,

  Deposit components unbundling, Ch. 51, 5

  Ch. 31, 15.2.3

  illustration, Ch. 51, 5.2

  multi-employer plans, Ch. 31, 15.2.4

  practical difficulties, Ch. 51, 5.3

  in other IFRSs, Ch. 31, 15.2.6

  requirements, Ch. 51, 5.1

  sharing risks between entities under common control,

  Depreciated replacement cost (DRC), Ch. 18, 6.1.1.C

  Ch. 31, 15.2.5

  Depreciation, depletion and amortisation (DD&A), extractive

  and insured benefits, Ch. 31, 3.2

  industries, Ch. 39, 16

  and multi-employer plans, Ch. 31, 3.3

  block caving, Ch. 39, 16.2

  net defined benefit liability (asset), presentation of, Ch. 31, 9

  requirements under IAS 16 and IAS 38, Ch. 39, 16.1

  plan assets, Ch. 31, 6

  a
ssets depreciated using the straight-line method, Ch. 39,

  contributions to defined benefit funds, Ch. 31, 6.5

  16.1.2

  definition of, Ch. 31, 6.1

  assets depreciated using the units of production method,

  longevity swaps, Ch. 31, 6.6

  Ch. 39, 16.1.3

  measurement of, Ch. 31, 6.2

  joint and by-products, Ch. 39, 16.1.3.D

  qualifying insurance policies, Ch. 31, 6.3

  reserves base, Ch. 39, 16.1.3.B

  reimbursement rights, Ch. 31, 6.4

  unit of measure, Ch. 39, 16.1.3.C

  plan liabilities, Ch. 31, 7

  units of production formula, Ch. 39, 16.1.3.A

  actuarial assumptions, Ch. 31, 7.5

  mineral reserves, Ch. 39, 16.1.1

  actuarial methodology, Ch. 31, 7.3

  Depreciation, property, plant and equipment (PP&E), Ch. 18, 5

  attributing benefit to years of service, Ch. 31, 7.4

  charge, Ch. 18, 5.3

  contributions by employees and third parties, Ch. 31, 7.2

  depreciable amount and residual values, Ch. 18, 5.2

  discount rate, Ch. 31, 7.6

  methods, Ch. 18, 5.6

  frequency of valuations, Ch. 31, 7.7

  diminishing balance methods, Ch. 18, 5.6.1

  legal and constructive obligations, Ch. 31, 7.1

  sum of the digits method, Ch. 18, 5.6.1

  refund from, Ch. 31, 16.2.1

  unit-of-production method, Ch. 18, 5.6.2

  sharing risks between entities under common control, Ch. 31,

  and useful life of asset, Ch. 18, 5.4

  3.3.2

  treatment of the plan surplus/deficit in the statement of

  Derecognition, financial instruments, Ch. 48, 1–7

  financial position, Ch. 31, 8

  accounting treatment, Ch. 48, 5

  assets restriction to their recoverable amounts, Ch. 31, 8.2

  collateral, Ch. 48, 5.5.2

  offset, Ch. 48, 5.5.1

  Index

  117

  reassessing derecognition, Ch. 48, 5.6

  short-term loan facilities, Ch. 48, 3.6.2

  reassessment of consolidation of subsidiaries and SPEs,

  treatment of collection proceeds, Ch. 48, 3.6.4

  Ch. 48, 5.6.1

  transfer/retention of substantially all the risks and rewards

  rights/obligations over transferred assets that continue to

  of ownership, Ch. 48, 3.8

  be recognised, Ch. 48, 5.5.3

  evaluating extent to which risks and rewards are

  transfers that do not qualify for derecognition through

  transferred, Ch. 48, 3.8.4

  retention of risks and rewards, Ch. 48, 5.2

  transfers resulting in neither transfer nor retention of

  transfers that qualify for derecognition, Ch. 48, 5.1

  substantially all risks and rewards, Ch. 48, 3.8.3

  servicing assets and liabilities, Ch. 48, 5.1.2