International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards
Page 995
modified retrospective approach, Ch. 24, 10.3.2
right-of-use assets, Ch. 24, 5.3.1
lessor transition, Ch. 24, 10.4
lessee involvement with the underlying asset before the
subleases, Ch. 24, 10.4.1
commencement date, Ch. 24, 4.3
sale and leaseback transactions, Ch. 24, 10.5.1
lessor accounting, Ch. 24, 6
transition, Ch. 24, 10.2
disclosure, Ch. 24, 6.7
extractive industries, impact of IFRS 16 on, Ch. 39, 17.3
for all lessors, Ch. 24, 6.7.2
definition of a lease, Ch. 39, 17.3.2
for finance leases, Ch. 24, 6.7.3
identifying and separating lease and non-lease components
objective, Ch. 24, 6.7.1
and allocating contract consideration, Ch. 39, 17.3.4
for operating leases, Ch. 24, 6.7.4
joint arrangements, Ch. 39, 17.3.3
finance leases, Ch. 24, 6.2
scope and scope exclusions, Ch. 39, 17.3.1
initial measurement, Ch. 24, 6.2.1
fair value, Ch. 24, 4.9
manufacturer/dealer lessors, Ch. 24, 6.2.2
inception of a contract, Ch. 24, 4.1
remeasurement of the net investment in the lease,
initial direct costs, Ch. 24, 4.7
Ch. 24, 6.2.4
lease payments, Ch. 24, 4.5
subsequent measurement, Ch. 24, 6.2.3
amounts expected to be payable under residual value
lease classification, Ch. 24, 6.1
guarantees lessees only, Ch. 24, 4.5.6
criteria, Ch. 24, 6.1.1
lessors only, Ch. 24, 4.5.7
reassessment of, Ch. 24, 6.1.4
amounts not included in lease payments, Ch. 24, 4.5.8
residual value guarantees included in the lease
exercise price of a purchase option, Ch. 24, 4.5.4
classification test, Ch. 24, 6.1.3
in-substance fixed lease payments, Ch. 24, 4.5.1
test for land and buildings, Ch. 24, 6.1.2
lease incentives, Ch. 24, 4.5.2
lease modifications, Ch. 24, 6.4
payments for penalties for terminating a lease, Ch. 24,
determining whether a modification to a finance lease
4.5.5
results in a separate lease, Ch. 24, 6.4.1
reassessment of the lease liability, Ch. 24, 4.5.9
lessor accounting for a modification to a finance lease
remeasurement by lessors, Ch. 24, 4.5.10
that does not result in a separate lease, Ch. 24,
variable lease payments that depend on an index/rate,
6.4.2
Ch. 24, 4.5.3
modification to an operating lease, Ch. 24, 6.4.3
lease term and purchase options, Ch. 24, 4.4
lessor matters, Ch. 24, 6.5
cancellable leases, Ch. 24, 4.4.1
portfolio approach, Ch. 24, 6.5.1
reassessment of lease term and purchase options, lessees,
operating leases, Ch. 24, 6.3
Ch. 24, 4.4.2
presentation, Ch. 24, 6.6
lessors, Ch. 24, 4.4.3
sale and leaseback transactions, Ch. 24, 8
lessee accounting, Ch. 24, 5.8
determining whether the transfer of an asset is a sale,
disclosure, Ch. 24, 5.8
Ch. 24, 8.1
additional, Ch. 24, 5.8.3
disclosures, Ch. 24, 8.4
of assets, liabilities, expenses and cash flows, Ch. 24,
transactions in which the transfer of an asset is a sale,
5.8.2
Ch. 24, 8.2
objective, Ch. 24, 5.8.1
accounting for the leaseback, Ch. 24, 8.2.2
initial measurement, Ch. 24, 5.2
accounting for the sale, Ch. 24, 8.2.1
lease liabilities, Ch. 24, 5.2.2
adjustment for off-market terms, Ch. 24, 8.2.3
right-of-use assets, Ch. 24, 5.2.1
transactions in which the transfer of an asset is not a sale,
initial recognition, Ch. 24, 5.1
Ch. 24, 8.3
184 Index
Leases (IFRS 16) —contd
determining whether a modification to a finance lease
subleases, Ch. 24, 7
results in a separate lease, Ch. 24, 6.4.1
definition, Ch. 24, 7.1
lessor accounting for a modification to a finance lease that
disclosure, Ch. 24, 7.5
does not result in a separate lease, Ch. 24, 6.4.2
intermediate lessor accounting, Ch. 24, 7.2
modification to an operating lease, Ch. 24, 6.4.3
presentation, Ch. 24, 7.4
lessor matters, Ch. 24, 6.5
sublessee accounting, Ch. 24, 7.3
portfolio approach, Ch. 24, 6.5.1
Leases of land, Ch. 23, 3.3; Ch. 24, 3.2
operating leases, Ch. 24, 6.3
investment properties, Ch. 23, 3.3.3
presentation, Ch. 24, 6.6
measurement and presentation, Ch. 23, 3.3.1
Level 1, 2 and 3 inputs, fair value measurement, Ch. 14, 17, 18,
separating land and buildings, Ch. 23, 3.3.2; Ch. 24, 6.1.2
19; Ch. 19, 12.1.1
Legal obligation, Ch. 27, 1.3, 3.1.1; Ch. 31, 7.1, 12.3.1
Levies, Ch. 29, 4.1.1
Legal right of set-off, enforceable, Ch. 50, 7.4.1.A
charged by public authorities, interim reports, Ch. 37, 9.7.5
Lessee accounting (IFRS 16), Ch. 24, 5
Liability adequacy testing, Ch. 51, 7.2.2
disclosure, Ch. 24, 5.8
under existing accounting policies, Ch. 51, 7.2.2.A
additional, Ch. 24, 5.8.3
requirements, Ch. 51, 7.2.1
of assets, liabilities, expenses and cash flows, Ch. 24, 5.8.2
and shadow accounting, interaction between, Ch. 51, 7.2.2.D
objective, Ch. 24, 5.8.1
specified in IFRS Ch. 51, 7.2.2.B
initial measurement, Ch. 24, 5.2
LIBOR
lease liabilities, Ch. 24, 5.2.2
LIBOR replacement, Ch. 49, 8.3.2.C
right-of-use assets, Ch. 24, 5.2.1
‘sub-LIBOR issue’, Ch. 49, 2.4
initial recognition, Ch. 24, 5.1
Life insurance, Ch. 51, 1.4.2
leases of low-value assets, Ch. 24, 5.1.2
‘Linked’ instruments, Ch. 43, 4.5.7
short-term leases, Ch. 24, 5.1.1
Liquidity risk, Ch. 50, 5, 5.5
lease modifications, Ch. 24, 5.5
associated liquidity risk, management of, Ch. 50, 5.4.3
determining whether a lease modification results in a
information provided to key management, Ch. 50, 5.4.1
separate lease, Ch. 24, 5.5.1
maturity analyses, Ch. 50, 5.4.2
lessee accounting for a modification that does not result in
cash flows: borrowings, Ch. 50, 5.4.2.C
a separate lease, Ch. 24, 5.5.2
cash flows: derivatives, Ch. 50, 5.4.2.D
lessee matters, Ch. 24, 5.6
cash flows: embedded derivatives, Ch. 50, 5.4.2.E
impairment of right-of-use assets, Ch. 24, 5.6.1
cash flows: financial guarantee contracts and written
income tax accounting, Ch. 24, 5.6.4
options, Ch. 50, 5.4.2.F
leases denominated in a foreign currency, Ch. 24, 5.6.2
cash flows: general requirements, Ch. 50, 5.4.2.B
portfolio approach, Ch. 24, 5.6.3
examples of disclosures in practice, Ch. 50, 5.4.2.G
presentation, Ch. 24, 5.7
time bands, Ch. 50, 5.4.2.A
remeasurement of lease liabilities and right-of-use assets,
puttable financial instruments c
lassified as equity, Ch. 50,
Ch. 24, 5.4
5.4.4
subsequent measurement, Ch. 24, 5.3
expense recognition, Ch. 24, 5.3.3
Litigation, provisions and contingencies, Ch. 27, 6.11
lease liabilities, Ch. 24, 5.3.2
Loan commitments, Ch. 44, 6.4.6
right-of-use assets, Ch. 24, 5.3.1
assets and liabilities from, Ch. 45, 3.7
Lessor accounting (IFRS 16), Ch. 24, 6
IFRS 9 impairment requirements, Ch. 47, 11
disclosure, Ch. 24, 6.7
off-market, Ch. 45, 3.3.3
for all lessors, Ch. 24, 6.7.2
outside the scope of and IFRS 9, Ch. 45, 3.7.1
for finance leases, Ch. 24, 6.7.3
within the scope of and IFRS 9, Ch. 45, 3.7.2
objective, Ch. 24, 6.7.1
Loans
for operating leases, Ch. 24, 6.4.3
acquired in business combination, Ch. 45, 3.3.4
finance leases, Ch. 24, 6.2
at a below-market interest rate, Ch. 46, 2.8
initial measurement, Ch. 24, 6.2.1
commitment, Ch. 41, 3.5
manufacturer/dealer lessors, Ch. 24, 6.2.2
intercompany loans, Ch. 47, 13
remeasurement of the net investment in the lease, Ch. 24,
low-interest long-term, Ch. 45, 3.3.1
6.2.4
payable, defaults and breaches of, Ch. 50, 4.4.8
subsequent measurement, Ch. 24, 6.2.3
Longevity swaps, Ch. 31, 6.6
lease classification, Ch. 24, 6.1
Long-term contracts and leases, extractive industries Ch. 39, 17
criteria, Ch. 24, 6.1.1
embedded leases, Ch. 39, 17.1
reassessment of, Ch. 24, 6.1.4
impact of IFRS 16, Ch. 39, 17.3
residual value guarantees included in the lease classification
take-or-pay contracts, Ch. 39, 17.2
test, Ch. 24, 6.1.3
make-up product and undertake, Ch. 39, 17.2.1
test for land and buildings, Ch. 24, 6.1.2
Long-term employee benefits, Ch. 31, 13
lease modifications, Ch. 24, 6.4
meaning of, Ch. 31, 13.1
Index
185
other than post-employment benefits, Ch. 31, 13.1
Measurements based on fair value. See Fair value measurements
recognition and measurement, Ch. 31, 13.2
Mineral reserves and resources, extractive industries
attribution to years of service, Ch. 31, 13.2.1
disclosure of mineral reserves and resources, Ch. 39, 2.4
long-term disability benefit, Ch. 31, 13.2.2
associates, joint arrangements and other investments,
long-term benefits contingent on a future event, Ch, 31,
Ch. 39, 2.4
13.2.3
commodity price, Ch. 39, 2.4
Long-term loans with repayment on demand terms, Ch. 50,
mining sector, Ch. 39, 2.4.2
7.4.4.C
non-controlling interests, Ch. 39, 2.4
Loss-making associates/joint ventures, Ch. 11, 7.9
oil and gas sector, Ch. 39, 2.4.1
Loss-making subsidiaries, Ch. 7, 5.5.1
production sharing contracts and risk service contracts,
Ch. 39, 2.4
Low-interest long-term loans, Ch. 45, 3.3.1
proven and probable reserves, Ch. 39, 2.4
Macro hedge accounting, Ch. 49, 11
royalties, Ch. 39, 2.4
‘Make-up’ oil, Ch. 39, 15.4.2.B
standardised measure of oil and gas, Ch. 39, 2.4.3.A
Make-up product and undertake, Ch. 39, 17.2.1
value of reserves, Ch. 39, 2.4.3
‘Malus’ clauses, share-based payments, Ch. 30, 3.1.1
international harmonisation of reserve reporting, Ch. 39, 2.1
Management commentary, Ch. 2, 12
legal rights to explore for, develop and produce mineral
Management Commentary Consultative Group,
properties, Ch. 39, 5
Ch. 1, 2.9
concessionary agreements (concessions), Ch. 39, 5.2
Mandatorily convertible bond, Ch. 43, 6.6.3
different types of royalty interests, Ch. 39, 5.7
convertible into a variable number of shares
evolving contractual arrangements, Ch. 39, 5.5
upon a contingent ‘non-viability’ event, Ch. 43, 6.6.3.B
joint operating agreements, Ch. 39, 5.6
with option for issuer to settle early for a maximum
mineral lease agreements, Ch. 39, 5.1
number of shares, Ch. 43, 6.6.3.A
pure-service contract, Ch. 39, 5.4
Market approach, valuation technique, Ch. 14, 14.2
traditional production sharing contracts, Ch. 39, 5.3
Market Consistent Embedded Value Principles (MCEV), Ch. 51,
mining resource and reserve reporting, Ch. 39, 2.3
1.4.3
petroleum reserve estimation and reporting, Ch. 39, 2.2
Market and non-market variables, insurance contracts, Ch. 52,
basic principles and definitions, Ch. 39, 2.2.1
8.2.3
classification and categorisation guidelines, Ch. 39, 2.2.2
Market participants, Ch. 14, 7
Mining sector disclosures, Ch. 39, 2.4.2. See also Extractive
assumptions, Ch. 14, 7.2
industries
characteristics, Ch. 14, 7.1
Ministry of Finance, People’s Republic of China, Ch. 1, 2.3,
Market risk, Ch. 50, 5.5
4.4.1.A
‘basic’ sensitivity analysis, Ch. 50, 5.5.1
Modifications in share-based payment, Ch. 30, 7.3
other market risk disclosures, Ch. 50, 5.5.3
cash-settled modified to equity-settled, Ch. 30, 9.4.2
value-at-risk and similar analyses, Ch. 50, 5.5.2
decrease the value of an award, Ch. 30, 7.3.2
Market vesting conditions, share-based payments, Ch. 30, 6.3.
additional/more onerous non-market vesting conditions,
See also Cash-settled share-based payment transactions; Equity-
Ch. 30, 7.3.2.C
settled share-based payment transactions; IFRS 2; Share-based
decrease in fair value of equity instruments granted,
payment transactions
Ch. 30, 7.3.2.A
Master netting agreements, Ch. 50, 7.4.1.B
decrease in number of equity instruments granted, Ch. 30,
and non-performance risk, Ch. 14, 11.3.4
7.3.2.B
distinction between cancellation and modification, Ch. 30, 7.4.2
Materiality, Ch. 3, 4.1.5.A; Ch. 50, 3.2
entity’s plans for future, Ch. 30, 7.6
IASB practice statement, Ch. 3, 6.1.2
equity-settled modified to cash-settled, Ch. 30, 7.3.5, 9.4.1
interim financial reporting, Ch. 37, 6
‘give and take’, Ch. 30, 7.3.4
Maturity analyses, liquidity risk, Ch. 50, 5.4.2
increase the value of an award, Ch. 30, 7.3.1
cash flows
increase in fair value of equity instruments granted,
borrowings, Ch. 50, 5.4.2.C
Ch. 30, 7.3.1.A
derivatives, Ch. 50, 5.4.2.D
increase in number of equity instruments granted, Ch. 30,
embedded derivatives, Ch. 50, 5.4.2.E
7.3.1.B
examples of disclosures in practice, Ch. 50, 5.4.2.G
removal/mitigation of non-market vesting conditions,
financial guarantee contracts and written options, Ch. 50,
Ch. 30, 7.3.1.C
5.4.2.F
reduce the number of equity instruments granted but maintain
general requi
rements, Ch. 50, 5.4.2.B
or increase the value of an award, Ch. 30, 7.3.4
time bands, Ch. 50, 5.4.2.A
share splits and consolidations, Ch. 30, 7.8
Measurement period, business combinations, Ch. 9, 12
two awards running ‘in parallel’, Ch. 30, 7.7
adjustments made during, Ch. 9, 12.1
valuation requirements, Ch. 30, 7.2
to provisional amounts, Ch. 9, 12.1
‘value for value’, Ch. 30, 7.3.4
after end of measurement period, Ch. 9, 12.2
of vesting period, Ch. 30, 7.3.3
186 Index
Modified International Standards (JMIS), Japan, Ch. 1, 4.4.2
Net realisable value, inventories, Ch. 22, 3.3
Monetary/non-monetary determination, foreign exchange,
Net-settled contracts over own equity, Ch. 43, 5.2.7
Ch. 15, 5.4
Nominal amount components, Ch. 49, 2.3
deferred tax, Ch. 15, 5.4.4
general requirement, Ch. 49, 2.3.1
deposits/progress payments, Ch. 15, 5.4.1
layer components for fair value hedges, Ch. 49, 2.3.2
foreign currency share capital, Ch. 15, 5.4.3
Non insurance contracts, Ch. 51, 3.8; Ch. 52, 3.7.2
insurance contracts, Ch. 52, 7.1
Non-adjusting events, Ch. 34, 2.1.3, 2.3
investments in preference shares, Ch. 15, 5.4.2
post-employment benefit plans-foreign currency assets,
Non-cash assets to owners, Ch. 7, 3.7; Ch. 8, 2.4.2
Ch. 15, 5.4.5
declaration to distribute, Ch. 34, 2.3.1
post-employment benefit plans-foreign currency plans,
distributions of, Ch. 7, 3.7; Ch. 8, 2.4.2
Ch. 15, 5.4.6
Non-cash transactions and transactions on deferred terms,
Monetary/non-monetary distinction
Ch. 36, 5.4
hyperinflationary economies, Ch. 16, 4.1.1
Non-contractually specified risk components, Ch. 49, 2.2.3
Money market funds (MMF), Ch. 36, 3.2.2
Non-controlling interests (NCI), Ch. 7, 5.2.1, 6, 4; Ch. 39, 2.4
Monitoring Board, Ch. 1, 2.3
acquisition of, as part of a common control business
combination, Ch. 10, 3.3.5
Monte Carlo Simulation, Ch. 30, 8.3.3
associate holds an interest in a subsidiary, Ch.7, 5.2.3
Most advantageous market, Ch. 14, 6.2
business combinations, recognising and measuring NCIs,
Multi-employer plans, employee benefits, Ch. 31, 3.3
Ch. 7, 5.2.1; Ch. 9, 8
defined benefit plans sharing risks between entities under
call and put options over NCIs, Ch. 7, 6; Ch. 9, 8.5
common control, Ch. 31, 3.3.2
implications of method chosen for measuring NCIs, Ch. 9,
disclosure requirements
8.3
plans accounted for as defined benefit plans, Ch. 31,