International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards
Page 980
Ch. 2.7.1.3
equity instruments, Ch. 43, 5.4
unit of account, Ch. 2.7.1.1
‘hedging’ of instruments classified as equity, Ch. 43, 10
date when financial statements are authorised for issue,
held for trading, Ch. 44, 4
Ch. 34, 2.1.1
interest, dividends, gains and losses, Ch. 43, 8
events requiring adjustment to the amounts
tax effects, Ch. 43, 8.2
recognised/disclosures in, Ch. 34, 2.2.1
transaction costs, Ch. 43, 8.1
first IFRS financial statements in scope of IFRS 1, Ch. 5, 2.1
liabilities arising from gross-settled contracts for the purchase
frequency of reporting and period covered, Ch. 3, 2.2
of the entity’s own equity instruments, Ch. 43, 5.3
identification of, Ch. 3, 2.5.1
contracts to acquire non-controlling interests, Ch. 43, 5.3.2
notes to, Ch. 3, 3.4
contracts to purchase own equity during ‘closed’ or
purpose of, Ch. 3, 2.1
‘prohibited’ periods, Ch. 43, 5.3.1
re-issuing (dual dating), Ch. 34, 2.1.1.A
non-controlling interests classified as, Ch. 7, 5.4, 6.2, 6.3, 6.4,
statement of changes in equity, Ch. 3, 3.3
6.5, 7.4, 7.5
statement of compliance with IFRS, Ch. 3, 2.5.2
objective, Ch. 43, 2.1
statement of comprehensive income and income statement,
offsetting, Ch. 50, 7.4.1
Ch. 3, 3.2
cash pooling arrangements, Ch. 50, 7.4.1.E
statement of financial position, Ch. 3, 3.1
disclosure, Ch. 50, 7.4.2
structure of, Ch. 3, 3
enforceable legal right of set-off, Ch. 50, 7.4.1.A
Financial statements, presentation of, Ch. 3, 2–3. See also IAS 1
intention to settle net, Ch. 50, 7.4.1.C
comparative information, Ch. 3, 2.4
master netting agreements, Ch. 50, 7.4.1.B
components of a complete set of financial statements, Ch. 3,
offsetting collateral amounts, Ch. 50, 7.4.1.F
2.3
situations where offset is not normally appropriate, Ch. 50,
frequency of reporting and period covered, Ch. 3, 2.2
7.4.1.D
IAS 1, Ch. 3, 1.1
unit of account, Ch. 50, 7.4.1.G
IAS 8, Ch. 3, 1.2
recognition, Ch. 45, 2.2.2
identification of, Ch. 3, 2.5.1
scope, Ch. 43, 2.2
purpose of, Ch. 3, 2.1
settlement of financial liability with equity instrument, Ch. 43, 7
statement of compliance with IFRS, Ch. 3, 2.5.2
debt for equity swaps with shareholders, Ch. 43, 7.3
structure of financial statements, Ch. 3, 3
requirements of IFRIC 19, Ch. 43, 7.2
notes to the financial statements, Ch. 3, 3.4
scope and effective date of IFRIC 19, Ch. 43, 7.1
statement of changes in equity, Ch. 3, 3.3
shares/warrants issued in connection with, Ch. 30, 2.2.4.I
statement of comprehensive income and the statement of
subsequent measurement (IFRS 9)
profit or loss, Ch. 3, 3.2
measured at amortised cost, Ch. 47, 14.1
classification of expenses recognised in profit or loss by
measured at fair value through profit/loss, Ch. 47, 14.3
nature or function, Ch. 3, 3.2.3
treasury shares, Ch. 43, 9
discontinued operations, Ch. 3, 3.2.5
IFRS 17 Treasury share election, Ch. 43, 9.2
information required on the face of the statement of
transactions in own shares not at fair value, Ch. 43, 9.1
profit or loss, Ch. 3, 3.2.2
Financial reporting in hyperinflationary economies, Ch. 16,
material and extraordinary items, Ch. 3, 3.2.6
1–12. See also Hyperinflation
operating profit, Ch. 3, 3.2.2.A
Financial Service Agency, Japan, Ch. 1, 2.3
profit and loss and comprehensive income, Ch. 3, 3.2.1
Financial Service Commission, Republic of Korea, Ch. 1, 2.3
statement of comprehensive income, Ch. 3, 3.2.4
Financial statements, Ch. 3, 2–3.4. See also IAS 1; IAS 8; IAS 10;
statement of financial position, Ch. 3, 3.1
Income statement; Statement of comprehensive income;
current assets, Ch. 3, 3.1.3
Statement of financial position
current liabilities, Ch. 3, 3.1.4
comparative information, Ch. 3, 2.4
current/non-current assets and liabilities, distinction
components of, Ch. 3, 2.3
between, Ch. 3, 3.1.1
conceptual framework, IASB’s, Ch. 2.6.1
information required either on the face of the
assets, Ch. 2.7.2
statement of financial position or in the notes,
consolidated and unconsolidated, Ch. 2.6.2.1
Ch. 3, 3.1.6
elements, Ch. 2.7
information required on the face of statement of
equity, Ch. 2.7.4
financial position, Ch. 3, 3.1.5
executory contracts, Ch. 2.7.1.2
non-current assets and disposal groups held for
going concern assumption, Ch. 2.6.1.4
sale/distribution, Ch. 3, 3.1.2
income and expenses, Ch. 2.7.5
Financing activities, cash flows from, Ch. 36, 4.3
Index
139
Firm commitments
Foreign currency derivatives, Ch. 42, 5.2.1
to acquire a business, hedges of, Ch. 49, 7.6
commonly used currencies, Ch. 42, 5.2.1.C
to purchase or sell goods or services, Ch. 45, 2.1.2
functional currency of counterparty, Ch. 42, 5.2.1.A
hedges of, Ch. 49, 5.1.1, 5.2.2
oil contract, Ch. 42, 5.2.1.D
First-time adoption, Ch. 5, 1–8. See also IFRS 1
routinely denominated in commercial transactions, Ch. 42,
actuarial assumptions, Ch. 5, 7.7.3
5.2.1.B
authoritative literature, Ch. 5, 1.2
Foreign currency instruments, Ch. 46, 4.1
compound financial instruments, Ch. 5, 5.10
debt security measured at fair value through other
consolidated financial statements, Ch. 5, 5.8.1
comprehensive income, Ch. 47, 14.3
cumulative translation differences, Ch. 5, 5.7
Foreign currency translation, interim financial reporting, Ch. 37,
date of transition to IFRSs, Ch. 5, 5.5.1.B
9.6
deemed cost, Ch. 5, 5.5
Foreign entities, subsequent measurement of financial
defined terms, Ch. 5, 1.3
instruments Ch. 46, 4
embedded derivatives, Ch. 5, 4.11
IFRS 9, Ch. 47, 1.2
employee benefits, Ch. 5, 7.7
Foreign exchange, Ch. 15, 1–11. See also IAS 21
fair value, Ch. 5, 3.3, 5.5.1
background, Ch. 15, 1.1
first IFRS financial statements, Ch. 5, 2.1
change in functional currency, Ch. 15, 5.5
first IFRS reporting period, Ch. 5, 7.2.1
change of presentation currency, Ch. 15, 7
first-time adopter, identifying, Ch. 5, 2
disclosure requirements, Ch. 15, 10
application of IFRS 1, Ch. 5, 2.2
convenience translations of financial statements/other
dual reporting entity, Ch. 5, 2.3
financial information, Ch. 15, 10.3
first IFRS financial statements in scope of IFRS 1, Ch. 5, 2.1
exchange differ
ences, Ch. 15, 10.1
previous GAAP, determining, Ch. 5, 2.3
judgements made in applying IAS 21 and related
full actuarial valuations, Ch. 5, 7.7.2
disclosures, Ch. 15, 10.4
full retrospective application, Ch. 5, 3.5
presentation and functional currency, Ch. 15, 10.2
government loans, Ch. 5, 4.12
entity’s functional currency determination, Ch. 15, 4
hedge accounting, Ch. 5, 4.5
branches and divisions, Ch. 15, 4.4
insurance contracts, Ch. 5, 5.4
documentation of judgements made, Ch. 15, 4.5
line-by-line reconciliations, Ch. 5, 6.3.2
general, Ch. 15, 4.1
mandatory exceptions, Ch. 5, 3.5
intermediate holding companies/finance subsidiaries,
measurement, Ch. 5, 4.9
Ch. 15, 4.2
non-controlling interests, Ch. 5, 4.8
investment holding companies, Ch. 15, 4.3
objectives of, Ch. 5, 1.1
future developments, Ch. 15, 11
opening IFRS statement of financial position, Ch. 5, 3
introduction of euro, Ch. 15, 8
accounting policies, applying, Ch. 5, 3.2
presentation currency other than the functional currency,
timeline, Ch. 5, 3.1
Ch. 15, 6
optional exemptions, Ch. 5, 5
average rate calculation, Ch. 15, 6.1.4
regulatory issues
disposal of a foreign operation, Ch. 15, 6.6
foreign private issuers that are SEC registrants, Ch. 5, 8.1
partial disposal, Ch. 15, 6.6.2
International Practices Task Force (IPTF) guidance, Ch. 5,
step-by-step and direct methods of consolidation,
8.1.2
Ch. 15, 6.6.3
related hedges, gains and losses arising on, Ch. 5, 5.7.1
exchange differences on intragroup balances, Ch. 15, 6.3
restatement of goodwill, Ch. 5, 5.2.5
monetary items included as part of the net investment
separate financial statements, Ch. 5, 5.8.2
in a foreign operation, Ch. 15, 6.3.1
timeline, Ch. 5, 3.1
becoming part of the net investment in a foreign
unrecognised past service costs, Ch. 5, 7.7.4
operation, Ch. 15, 6.3.5
First-time presentation of interim reports, Ch. 37, 11.1
ceasing to be part of the net investment in a
Fixed fee service contracts, Ch. 51, 3.5.1
foreign operation, Ch. 15, 6.3.6
currency of monetary item, Ch. 15, 6.3.2
Fixed interest rate instruments, Ch. 46, 3.2
dividends, Ch. 15, 6.3.7
‘Fixed stated principal’ of a bond, Ch. 43, 6.3.2.A
transacted by other members of the group, Ch. 15,
Floating interest rate instruments, Ch. 46, 3.3
6.3.4
Foreign currency basis spreads, Ch. 49, 3.6.5, 7.4.4.D, 7.5.3
treatment in individual financial statements,
retrospective application, Ch. 49, 13.3.3
Ch. 15, 6.3.3
Foreign currency cash flows,
unrealised profits on intragroup transactions,
impairment, Ch. 20, 7.1.5,
Ch. 15, 6.3.8
statement of cash flows, Ch. 36, 5.3
foreign operations where sub-groups exist, accounting for,
Ch. 15, 6.1.5
Foreign currency convertible bond, Ch. 43, 6.6.4
goodwill and fair value adjustments, Ch. 15, 6.5
instrument issued by foreign subsidiary convertible into equity
non-coterminous period ends, Ch. 15, 6.4
of parent, Ch. 43, 6.6.4.A
partial disposal of a foreign operation, Ch. 15, 6.6.2
140 Index
Foreign exchange —contd
Full cost method, extractive industries, Ch. 39, 3.2.4
presentation currency other than the functional currency —contd
Functional currency, Ch. 5, 7.8.1; Ch. 15, 3–6; Ch. 39, 9. See also
translation of equity items, Ch. 15, 6.2
Foreign exchange
equity balances resulting from income and expenses
books and records not kept in, Ch. 15, 5.6
being recognised in other comprehensive income,
change in, Ch. 15, 5.5; Ch. 39, 9.2
Ch. 15, 6.2.3
definition of, Ch. 15, 2.3
equity balances resulting from transactions with equity
determining, Ch. 15, 4; Ch. 39, 9.1
holders, Ch. 15, 6.2.2
at ends of subsequent reporting periods, Ch. 15, 5.2
share capital, Ch. 15, 6.2.1
exchange differences, treatment of, Ch. 15, 5.3
translation to the presentation currency, Ch. 15, 6.1
monetary items, Ch. 15, 5.3.1
accounting for foreign operations where sub-groups
non-monetary items, Ch. 15, 5.3.2
exist, Ch. 15, 6.1.5
initial recognition, Ch. 15, 5.1
calculation of average rate, Ch. 15, 6.1.4
deposits and other consideration received or paid in
dual rates, suspension of rates and lack of
advance, Ch. 15, 5.1.2
exchangeability, Ch. 15, 6.1.3
dual rates, Ch. 15, 5.1.4.A
functional currency is not that of a hyperinflationary
identifying the date of transaction, Ch. 15, 5.1.1
economy, Ch. 15, 6.1.1
suspension of rates: longer term lack of exchangeability,
functional currency is that of a hyperinflationary
Ch. 15, 5.1.4.C
economy, Ch. 15, 6.1.2
practical difficulties in determining exchange rates, Ch. 15,
reporting foreign currency transactions in the functional
5.1.4
currency of an entity, Ch. 15, 5
suspension of rates: temporary lack of exchangeability,
books and records not kept in functional currency, Ch. 15,
Ch. 15, 5.1.4.B
5.6
using average rates, Ch. 15, 5.1.3
change in functional currency, Ch. 15, 5.5
monetary/non-monetary determination, Ch. 15, 5.4
at ends of subsequent reporting periods, Ch. 15, 5.2
deferred tax, Ch. 15, 5.4.4
exchange differences, treatment of, Ch. 15, 5.3
deposits/progress payments, Ch. 15, 5.4.1
monetary items, Ch. 15, 5.3.1
foreign currency share capital, Ch. 15, 5.4.3
non-monetary items, Ch. 15, 5.3.2
investments in preference shares, Ch. 15, 5.4.2
initial recognition, Ch. 15, 5.1
post-employment benefit plans-foreign currency assets,
deposits and other consideration received or paid in
Ch. 15, 5.4.5
advance, Ch. 15, 5.1.2
post-employment benefit plans-foreign currency plans,
dual rates, Ch. 15, 5.1.4.A
Ch. 15, 5.4.6
identifying the date of transaction, Ch. 15, 5.1.1
Fund performance fees, Ch. 42, 5.2.5
suspension of rates: longer term lack of
FVTOCI. See Fair value through other comprehensive income
exchangeability, Ch. 15, 5.1.4.C
practical difficulties in determining exchange rates,
General price index, Ch. 16, 3
Ch. 15, 5.1.4
not available for all periods, Ch. 16, 3.2
suspension of rates: temporary lack of exchangeability,
selection of, Ch. 16, 3.1
Ch. 15, 5.1.4.B
General purpose financial reporting, Ch.2.4
using average rates, Ch. 15, 5.1.3
changes in economic resources and claims, Ch.2.4.2.2
monetary/non-monetary determination, Ch. 15, 5.4
economic resources and claims, Ch.2.4.2.1
deferred tax, Ch. 15, 5.4.4
information about the use of economic resources
deposits/progress payments, Ch. 15, 5.4.1
(stewardship), Ch.2.4.2.3
foreign currency share capital, Ch. 15, 5.4.3
objective and usefulness, Ch.2.4.1.1
investments in preference shares, Ch. 15, 5.4.2
limitations, Ch.2.4.1.2
post-employment benefit plans-foreign currency assets,
Global Preparers Forum, Ch. 1, 2.9
Ch. 15, 5.4.5
Global Public Policy Committee (GPPC) guidance, Ch. 47, 7.2
post-employment benefit plans-foreign currency plans,
Going concern, Ch. 2, 6.1.4; Ch. 3, 4.1.2; Ch. 34, 2.2.2
Ch. 15, 5.4.6
disclosure in relation to change in going concern assumption,
tax effects of all exchange differences, Ch. 15, 9
Ch. 37, 4.7
Forfeiture, share-based payments, Ch. 30, 6.1.2, 7.4.1
Gold bullion sales (mining), Ch. 39, 12.13
Forward contracts, Ch. 43, 11.1; Ch. 45, 2.1.3,
‘Good leaver’ arrangements, share-based payments,
‘back-to-back’ forward contracts, Ch. 43, 11.1.3
Ch. 30, 5.3.9
forward purchase, Ch. 43, 11.1.1
Goodwill, Ch. 9, 6
forward sale, Ch. 43, 11.1.2
and allocation to cash-generating units (CGUs), Ch. 20, 8.1
Forward currency contracts, Ch. 49, 3.6.5, 7.3.3.A, 7.4.5, 7.5.2,
attributable to non-controlling interests, changes in ownership
13.3.2
interest without loss of control, Ch. 7, 4.2; Ch.20, 9
Forward purchase agreements (EPS), Ch. 33, 6.4.2.C
in business combinations, Ch. 9, 6;
Forward rate method, Ch. 49, 7.4.5
and fair value adjustments, foreign operations, Ch. 15, 6.5
‘Fresh start’ accounting, Ch. 5, 5.5.2.B
impairment of goodwill, Ch. 20, 8
Index
141
acquisitions by subsidiaries and determining the level at
general requirements of IAS 20, Ch. 25, 3.1
which the group tests goodwill for impairment,
government assistance, Ch. 25, 3.7
Ch. 20, 12.2.3
loans at lower than market rates of interest, Ch. 25, 3.4
effect of IFRS 8 – Operating Segments – on
non-monetary grants, Ch. 25, 3.2
impairment tests, Ch. 20, 8.1.4
repayment of government grants, Ch. 25, 3.6
goodwill initially unallocated to CGUs, Ch. 20, 8.1.5
related to biological assets, IAS 41, Ch. 25, 5
identifying synergies and CGUs/CGU groups for
scope of IAS 20, Ch. 25, 2
allocating goodwill, Ch. 20, 8.1.2, 12.2
Government-related entities, Ch. 35, 2.2.10