International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards
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intermediate lessor accounting, Ch. 24, 7.2
exceptions to the general principles
presentation, Ch. 24, 7.4
hedging relationships, Ch. 46, 2.9.1
sublessee accounting, Ch. 24, 7.3
liabilities arising from ‘failed derecognition’
transactions, Ch. 46, 2.9.3
Sub-LIBOR issue, Ch. 49, 2.4
regular way transactions, Ch. 46, 2.9.2
Subordinated financial support, Ch. 13, 2.2.1.B
financial assets and financial liabilities at fair value through
Subordinated retained interests, Ch. 48, 4.3
profit/loss, Ch. 46, 2.4
Subrogation, Ch. 51, 7.2.6.E
financial guarantees and commitments to provide a loan at
Subsequent measurement, financial instruments, Ch. 46, 1–5.
a below-market interest rate, Ch. 46, 2.8
See also Impairments
financial liabilities measured at amortised cost, Ch. 46, 2.2
amortised cost and the effective interest method, Ch. 46, 3
reclassification of financial assets, Ch. 46, 2.7
effective interest rate, Ch 46, 3.1
unquoted equity instruments and related derivatives,
fixed interest rate instruments, Ch. 46, 3.2
Ch. 46, 2.6
floating interest rate instruments, Ch. 46, 3.3
unquoted equity instruments and related derivatives,
inflation-linked debt instruments, Ch. 46, 3.6
Ch. 46, 2.6
modified financial assets and liabilities, Ch. 46, 3.8
Subsidiaries, Ch. 7, 3; Ch. 13, 2.2.2.A. See also Ownership
accounting for modifications that do not result in
interests, changes in
derecognition, Ch. 46, 3.8.1
acquired in stages, cost of, Ch. 8, 2.1.1.C
treatment of modification fees, Ch. 46, 3.8.2
acquisition, Ch. 8, 4.4.2
more complex financial liabilities, Ch. 46, 3.7
deferred tax exemption, Ch. 29, 7.2.9
perpetual debt instruments, Ch. 46, 3.5
becoming a first-time adopter later than its parent, Ch. 5,
prepayment, call and similar options, Ch. 46, 3.4
5.9.1
revisions to estimated cash flows, Ch. 46, 3.4.1
dividends from, Ch. 8, 2.4.1
estimated cash flows, revisions to, Ch. 46, 3.4.1
former subsidiary
exceptions to the general principles
comparative information for, Ch. 7, 3.3.2.E
hedging relationships, Ch. 46, 2.9.1
interest retained in, Ch. 7, 3.3.1
liabilities arising from ‘failed derecognition’ transactions,
investments in, Ch. 5, 5.8; Ch. 20, 12.4
Ch. 46, 2.9.3
parent becoming a first-time adopter later than, Ch. 5, 5.9.2
regular way transactions, Ch. 46, 2.9.2
Substantive rights, Ch. 6, 4.2.1
financial assets and financial liabilities at fair value through
Substantively enacted tax legislation, Ch. 29, 5.1
profit/loss, Ch. 46, 2.4
Successful efforts method, E&E expenditure, Ch. 39, 3.2.3
financial guarantees and commitments to provide a loan at a
below-market interest rate, Ch. 46, 2.8
Super-deductible assets (tax), Ch. 29, 7.2.6
202 Index
Supply-chain finance, Ch. 48, 6.5
transactions that affect statement of financial position,
‘Synthetic’ instruments, Ch. 42, 8
Ch. 29, 6.2.2.B
Take-or-pay contracts, Ch. 39, 12.7.14, 17.2
definition, Ch. 29, 3
taxable, Ch. 29, 6.2.1
Tax bases, Ch. 29, 6.1
business combinations and consolidation, Ch. 29, 6.2.1.E
of assets, Ch. 29, 6.1.1
foreign currency differences, Ch. 29, 6.2.1.F
assets and liabilities whose tax base is not immediately
hyperinflation, Ch. 29, 6.2.1.G
apparent, Ch. 29, 6.1.3
revaluations, Ch. 29, 6.2.1.C
disclaimed or with no economic value, Ch. 29, 6.1.7
tax re-basing, Ch. 29, 6.2.1.D
equity items with, Ch. 29, 6.1.5
transactions that affect profit of loss, Ch. 29, 6.2.1.A
of items not recognised as assets/liabilities in financial
transactions that affect statement of financial position,
statements, Ch. 29, 6.1.4
Ch. 29, 6.2.1.B
items with more than one tax base, Ch. 29, 6.1.6
of liabilities, Ch. 29, 6.1.2
Termination benefits, employee benefits, Ch. 31, 14
measurement, Ch. 31, 14.3
Tax expense (tax income)
recognition, Ch. 31, 14.2
definition, Ch. 29, 3
statutory termination indemnities, Ch. 31, 14.1
Tax planning opportunities, Ch. 29, 7.4.4
Third-party credit enhancement, liabilities issued with
Taxable profit (tax loss)
by the issuer, Ch. 14, 11.3.1
definition, Ch. 29, 3
by a third-party, Ch. 14, 11.3.1.A
Taxable temporary differences
Time-period related hedged item, Ch. 49, 7.5.1
definition, Ch. 29, 3
Time value of money, Ch. 47, 5.7
Taxation, Ch. 29 14. See also Deferred tax; IAS 12– Income taxes;
hedge effectiveness, measurement of, Ch. 49, 7.4.2
Income taxes
Time value of options, Ch. 49, 3.6.4, 7.5.1
extractive industries, Ch. 39, 19
aligned time value, Ch. 49, 7.5.1.A
interim financial reporting, Ch. 37, 9.5
and effectiveness of options, Ch. 49, 7.4.8
changes in the effective tax rate during the year, Ch. 37,
hedged items with embedded optionality, Ch. 49, 3.6.4
9.5.2
retrospective application, Ch. 49, 13.3.1
difference in financial year and tax year, Ch. 37, 9.5.3
measuring interim income tax expense, Ch. 37, 9.5.1
Tolling arrangements, mining sector, Ch. 39, 18
tax credits, Ch. 37, 9.5.5
Total Distributable Income (TDI), Ch. 51, 6
tax loss and tax credit carrybacks and carryforwards,
Total return swaps, Ch. 48, 4.4.1
Ch. 37, 9.5.4
Trade date accounting, Ch. 45, 2.2.3; Ch. 47, 7.3.2
Taxes related to share-based payment transactions, Ch. 30, 14
exchange of non-cash financial assets, Ch. 45, 2.2.5.A
employment taxes of the employer, Ch. 30, 14.2
regular way purchase, Ch. 45, 2.2.5
applicable standards, Ch. 30, 14.2.1
regular way sale, Ch. 45, 2.2.5
holding of own shares to ‘hedge’ employment tax
‘Traded in a public market,’ meaning of, Ch. 32, 2.2.1
liabilities, Ch. 30, 14.2.3
Trade receivables. See Receivables
recovery of employer’s taxes from employees, Ch. 30,
Transaction-based taxes, Ch. 52, 8.2.1.I
14.2.2
income tax deductions for the entity, Ch. 30, 14.1
Transaction costs
sale or surrender of shares by employee to meet employee’s tax
changes in ownership interest, Ch. 7, 4.4
liability (‘sell to cover’ and net settlement), Ch. 30, 14.3
equity instruments, Ch. 29, 10.3.5
net settlement feature for withholding tax obligations,
equity transactions, Ch. 43, 8.1
Ch. 30, 14.3.1
fair value measurement, Ch. 14, 9.1
financial instruments, Ch. 45, 3.4
Temporal method, Ch. 15, 1.1
accounting treatment, Ch. 45, 3.4.1
identifying, Ch. 45, 3.4.2
Deferred tax
incurred by the reporting entity on acquisition, Ch. 19, 6.4
changes after initial recognition
Transaction price, IFRS 15, Ch. 28, 1.4
altered by legislative change, Ch. 29, 7.2.4.D
allocation of, Ch. 28, 6
amortisation, Ch. 29, 7.2.4.A
determination of, Ch. 28, 5
in carrying value due to revaluation, Ch. 29, 7.2.4.B
initial measurement, Ch. 45, 3.3
depreciation, Ch. 29, 7.2.4.A
in tax base due to deductions in tax return, Ch. 29,
Transaction related hedged item, Ch. 49, 7.5.1
7.2.4.C
Transferee’s put option, Ch. 48, 5.4.3.B
deductible, Ch. 29, 3, 6, 6.1, 6.2.2, 7.2.2.B, 7.5.3
Transferor’s call option, Ch. 48, 5.4.3.A
business combinations and consolidation, Ch. 29, 6.2.2.E
Transfers of financial assets, Ch. 50, 6
foreign currency differences, Ch. 29, 6.2.2.F
disclosure requirements, Ch. 50, 6.3.2
revaluations, Ch. 29, 6.2.2.C
meaning of continuing involvement, Ch. 50, 6.3.1
tax re-basing, Ch. 29, 6.2.2.D
meaning of ‘transfer,’ Ch. 50, 6.1
transactions that affect profit of loss, Ch. 29, 6.2.2.A
transferred financial assets
Index
203
that are derecognised in their entirety, Ch. 50, 6.3
closure and decommissioning, Ch. 39, 1.6.1
that are not derecognised in their entirety, Ch. 50, 6.2
construction, Ch. 39, 1.6.1
Transition Resource Group for Impairment of Financial
development, Ch. 39, 1.6.1
Instruments, IFRS, Ch. 1, 2.9
exploration, Ch. 39, 1.6.1
Transition Resource Group for Insurance Contracts, Ch. 1, 2.9
production, Ch. 39, 1.6.1
prospecting, Ch. 39, 1.6.1
Transition Resource Group for Revenue Recognition, Ch. 1, 2.9
‘Upstream’ transactions elimination, equity accounted entities,
Transportation costs, Ch. 14, 9.2
Ch. 11, 7.6.1
Treasury shares, Ch. 43, 9
US GAAP, convergence with IFRS, Ch. 1, 3.2
cash flow statement, Ch. 36, 4.4.7
IFRS 17 Treasury share election, Ch. 43, 9.2
US, IFRS adoption in, Ch. 1, 3.2
transactions in own shares not at fair value, Ch. 43, 9.1
Useful life, intangible assets, Ch. 17, 9.1.1
Trustees, IFRS Foundation, Ch. 1, 2,2–2.8, 3.2, 5
with an indefinite useful life, Ch. 17, 9.3
contractual/other legal rights, Ch. 17, 9.1.2
Unanimous consent, joint control, Ch. 12,4.3; Ch. 39, 7.1.1.B
with a finite useful life, Ch. 17, 9.2
Unbundling of deposit components, Ch. 51, 5
Valuation techniques, fair value measurement, Ch. 14, 14
illustration, Ch. 51, 5.2
cost approach, Ch. 14, 14.3
practical difficulties, Ch. 51, 5.3
use of depreciated replacement cost to measure fair value,
requirements, Ch. 51, 5.1
Ch. 14, 14.3.1
Uncertain future events, insurance contracts, Ch. 51, 3.4; Ch. 52,
disclosure of, Ch. 14, 20.3.5
3.4
income approach, Ch. 14, 14.4
Uncertain tax treatments, Ch. 29, 5.2, 8.2, 9
inputs to, Ch. 14, 15
assumptions about the examination of tax treatments
broker quotes and pricing services, Ch. 14, 15.5
(‘detection risk’), Ch. 29, 9.3
central clearing organisations, values from, Ch. 14,
consideration of changes in facts and circumstances, Ch. 29,
15.5.1
9.5
general principles, Ch. 14, 15.1
considered separately (unit of account), Ch. 29, 9.2
premiums and discounts, Ch. 14, 15.2
determining effects of, Ch. 29, 9.4
blockage factors (or block discounts), Ch. 14, 15.2.1
disclosures relating to, Ch. 29, 9.6
pricing within the bid-ask spread, Ch. 14, 15.3
IFRC 23
bid-ask spread, Ch. 14, 15.3.2
changes in estimates, Ch. 34, 3.6
mid-market pricing, Ch. 14, 15.3.1
scope and definitions used, Ch. 29, 9.1
risk premiums, Ch. 14, 15.4
recognition of an asset for payments on account, Ch. 29, 9.7
market approach, Ch. 14, 14.2
Unconsolidated structured entities, Ch. 13, 2.2.2.D
property, plant and equipment, Ch. 18, 6.1.1.B
disclosure of interests, Ch. 13, 6
selecting appropriate, Ch. 14, 14.1
financial or other support to, Ch. 13, 4.4.3
making changes to valuation techniques, Ch. 14, 14.1.4
Undivided interests, Ch. 18, 7.3; Ch. 39, 7.2
single vs. multiple valuation techniques, Ch. 14, 14.1.1
Unit of account, Ch. 14, 5.1,
using multiple valuation techniques to measure fair value,
extractive industries, Ch. 39, 4
Ch. 14, 14.1.2
fair value measurement
valuation adjustments, Ch. 14, 14.1.3
asset’s (or liability’s) components, Ch. 14, 5.1.4
Value beyond proven and probable reserves (VBPP), Ch. 39,
and portfolio exception, Ch. 14, 5.1.2
8.2.3
and PxQ, Ch. 7, 3.3.2.D, 7.3; Ch. 14, 5.1.1
Value of business acquired (VOBA), Ch. 51, 9.1
vs. valuation premise, Ch. 14, 5.1.3
Value-at-risk and similar analyses, Ch. 50, 5.5.2
and FVLCD estimation, Ch. 20, 6.1.1
Value in use (VIU). See also IAS 36
Unit of production method, Ch. 18, 5.6.2
calculation of (extractive industries), Ch. 39, 11.4
Unitisations, mineral properties, Ch. 39, 15.4.1
commodity price assumptions, Ch. 39, 11.4.3
Unit-linked features, Ch. 51, 4.1
consistency in cash flows and book values attributed to the
Units of production method, assets depreciated using, Ch. 39,
CGU, Ch. 39, 11.4.1
16.1.3
environmental provisions and similar provisions and
joint and by-products, Ch. 39, 16.1.3.D
liabilities, Ch. 39, 11.4.1.A
reserves base, Ch. 39, 16.1.3.B
foreign currency cash flows, Ch. 39, 11.4.5
unit of measure, Ch. 39, 16.1.3.C
future capital expenditure, Ch. 39, 11.4.4
units of production formula, Ch. 39, 16.1.3.A
projections of cash flows, Ch. 39, 11.4.2
cash flows from mineral reserves and resources and the
Unquoted equity instruments
appropriate discount rate, Ch. 39, 11.4.2.A
and related derivatives, Ch. 46, 2.6
differences between fair value and VIU, Ch. 20, 7.3
transition provisions, Ch. 44, 10.2.7.C; Ch. 47, 5.7
estimating the future pre-tax cash flows of the CGU under
Upstream activity phases, extractive industries, Ch. 39, 1.6.1
review, Ch. 20, 7.1
acquisition of mineral rights, Ch. 39, 1.6.1
budgets and cash flows, Ch. 20, 7.1.1
appraisal/evaluation, Ch. 41, 1.6.1
204 Index
Value in use (VIU) —contd
vesting period, Ch. 30, 3.3
estimating the future pre-tax cash flows of the CGU under
awards entitled to dividends during, Ch. 30, 15.3
review —contd
determining
, Ch. 30, 9.3.2.A
cash inflows and outflows from improvements and
market conditions and known vesting periods, Ch. 30,
enhancements, Ch. 20, 7.1.2
6.3.3
events after the reporting period, Ch. 20, 7.1.8
modifications with altered vesting period, Ch. 30, 7.3.3
foreign currency cash flows, Ch. 20, 7.1.5
non-vesting conditions and, Ch. 30, 6.4.2
internal transfer pricing, Ch. 20, 7.1.6
variable vesting periods due to market conditions, Ch. 30,
overheads and share-based payments, Ch. 20, 7.1.7
6.3.4
restructuring, Ch. 20, 7.1.3
variable vesting periods due to non-market vesting
terminal values, Ch. 20, 7.1.4
conditions, Ch. 30, 6.2.3
identifying appropriate discount rate and discounting future
vesting in instalments (‘graded vesting’), Ch. 30, 6.2.2
cash flows, Ch. 20, 7.2
Veto rights, Ch. 6, 4.2.2.A
approximations and short cuts, Ch. 20, 7.2.4
Voluntary changes of accounting policy, Ch. 3, 4.4; Ch. 37,
calculating VIU using post-tax cash flows, Ch. 20, 7.2.3
8.1.2.B
determining pre-tax rates taking account of tax losses,
disclosures relating to, Ch. 3, 5.1.2
Ch. 20, 7.2.6
Voting power, Ch. 11, 4.2
disclosing pre-tax discount rates when using a post-tax
methodology, Ch. 20, 7.2.5
Voting rights
discount rates and the weighted average cost of capital,
held in fiduciary capacity, Ch. 11, 4.4
Ch. 20, 7.2.1
significant influence, potential, Ch. 11, 4.3
entity-specific WACCs and capital structure, Ch. 20, 7.2.8
Voting rights, investee
entity-specific WACCs and different project risks within
additional rights from other contractual arrangements, Ch. 6,
the entity, Ch. 20, 7.2.7
4.3.6
pre-tax discount rate, calculating, Ch. 20, 7.2.2
contractual arrangement with other vote holders, Ch. 6, 4.3.5
use of discount rates other than the WACC, Ch. 20, 7.2.9
de facto control, Ch. 6, 4.3.3
for investment in subsidiaries, associates and joint ventures,
majority without power, Ch. 6, 4.3.3
Ch. 20, 12.4.2
potential voting rights, Ch. 6, 4.3.4
based on cash flows generated by underlying assets,
power with a majority, Ch. 6, 4.3.1
Ch. 20, 12.4.2.B
Warranties, Ch. 28, 10.1
using dividend discount models, Ch. 20, 12.4.2.A
assurance-type warranties, Ch. 28, 10.1.3
relevant cash flows and non-arm’s length prices (transfer
contracts that contain both assurance and service-type
pricing), Ch. 20, 12.1
warranties, Ch. 28, 10.1.4