BC17) Scope (paras. Examples of material non-adjusting events include: disclosure checklist and IAS 34 application guidance. To give a definitive indication of the areas students will need to be aware of in relation to IAS for future CIE examinations. IAS 11 defines construction contract as: “… a contract specifically negotiated for the construction of an asset or a combination of assets …” Examples of construction contracts include those negotiated for the construction of highways, buildings, oil rigs, industrial units, pipelines, airlines and other similar assets. %PDF-1.6 %���� Early application is permitted. Practical Example - 1 The entity will record a sale and trade receivable of $6m. IAS 37: Implementation Guidance; IAS 37: Illustrative Examples; IAS 37: Basis for Conclusions. ; It defines both adjusting and non-adjusting events. 2. endstream endobj 174 0 obj <>/Metadata 11 0 R/Pages 171 0 R/StructTreeRoot 15 0 R/Type/Catalog>> endobj 175 0 obj <>/MediaBox[0 0 595.32 841.92]/Parent 171 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 176 0 obj <>stream IAS 10 BC International Accounting Standard 10 Events after the Reporting Period Objective 1 The objective of this Standard is to prescribe: (a) when an entity should adjust its financial statements for events after the reporting period; and (b) the disclosures that an entity should give about the date when the financial statements were IAS 37: Implementation Guidance; IAS 37: Illustrative Examples; IAS 37: Basis for Conclusions. BC2-BC13) Examples (paras. equity or as liabilities). Inline XBRL; ZIP; Example 12: Consolidated and Separate Statements of Financial Position. To give a definitive indication of the areas students will need to be aware of in relation to IAS for future CIE examinations. Solution Example 2 Per paragraph 11 of IAS 10, this is a non-adjusting event. %���� IFRS 15 Revenue from Contracts with Customers 2 Defined terms IFRS 15 defines the following terms that form an integral part of this IFRS. - Part II includes an illustrative example of a … All the paragraphs have equal authority. IAS 10 BC International Accounting Standard 10 Events after the Reporting Period Objective 1 The objective of this Standard is to prescribe: (a) when an entity should adjust its financial statements for events after the reporting period; and (b) the disclosures that an entity should give about the date when the financial statements were stream � ǵ�N�d�p��N�u+v2��B��- The decline in fair value does not /Contents 3 0 R h�ėmo�8���>n�z��w`��m�;��]��6nj M��=��~�l'��N�md)z!i�!E�g��,V�y��c4֞I�Ιrk���p�%3��s�j�&��ذԠDŽ�(@2�U)� ��AM � 'iHbC6�@T&���P��^��1��T`��g����`2�*��,ŤE�_Sz����*�xT�)z. ǻ�|�,qW��ZW��� �f�6� पG������V���˵��iߙ� ��*z�q����b X]�Lj�%��[���Pb�mr>r�(�٥�r�g�)���^��. View IAS 10 Examples 2020.pdf from FRK 221 at University of Pretoria. Issued: in 1978; re-issued in 1999 and 2003, followed by amendments Effective date: 1 January 2005 What it does: IAS 10 sets the rules when an entity should adjust its financial statements for events after the reporting period together with the necessary disclosures. IAS 1.10, 11, 38-38B, 40A-40D IAS 1.10 Key principles There is no prescribed format for the financial statements but there are minimum presentation and disclosure requirements. >> This publication is presented in two parts. year in which it adopts IFRS 16 with a date of initial application of 1 January 2019. used in IAS 36, Impairment of Assets when calculating the impairment of goodwill of a cash generating unit (CGU) where there is a non-controlling interest. eXample 2 Parent owns 80% of Subsidiary (a CGU). >> 3 0 obj Example III-1—An entity that is not a regulated financial institution 23 Example III-2—An entity that has not complied with externally imposed capital requirements 25 AMENDMENTS TO ILLUSTRATIVE EXAMPLES ACCOMPANYING IAS 7 STATEMENT OF CASH FLOWS 26 A COMPARISON OF PROPOSALS WITH REQUIREMENTS IN IAS 1 PRESENTATION OF FINANCIAL STATEMENTS 34. IE1 The objective of these examples … BC14-16) Interaction with requirements for impaired assets (para. The example disclosures in this supplement relate to a listed corporation in the . I /Filter /FlateDecode The table below outlines the overall requirements and guidance provided in IAS 7, as well as other related guidance: Table A.1 – IAS 7 at a glance: IAS 7 (or related IFRS) reference Scope (IAS 7.3) (IAS 1.10-11) Presentation (IAS 7.1) (IAS 7.21-24) Benefits of cash flow information (IAS 7.3-4) Requirements h�b```�%�\�� �����@N�b���Y� ۮ100V��s����֎�����dU(&A0�:� C��O� � �s������^{��zxgG����e�D/'K�!ؕ-pyXf�� Q"� Practical guide to Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 for interest rate benchmark (IBOR) reform The IASB has issued amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 that address issues arising during the reform of benchmark interest rates including the replacement of one benchmark rate with an alternative one. Onerous Contracts - Cost of Fulfilling a Contract (paragraph 68A) (BC1-BC21) BC1; The cost of fulfilling a contract (paras. This Standard provides guidance for the accounting treatment of the events, which take place after the reporting period, but before the date of authorization of financial statements for issue, related disclosur… << The decline in fair value does not Financial statements disclose corresponding information for the preceding period (comparatives), unless a standard or interpretation permits or requires otherwise. 5-9) Recognition and measurement (paras. H�O%�k,7��?�n���M�O��K�-��ț��U�����j��`���y����O�Y��>��)����\ ��z\�6��������ZM�kz!j�p#ܢT�ˋ�߿�߬;�Vpwb:��s�Һ�2z0��)H�� �R� %z���ewj replaces IAS 10 Events After the Balance Sheet Date (revised in 1999) and should be applied for annual periods beginning on or after 1 January 2005. h�bbd```b``��5 ��2�d��,�`�`��`6�|�f��Ƀ ��Dn�$�7�ȊP���a��:�������-f`��l;�0$�30U�0 �O� Contract – An agreement between two or more parties that creates enforceable rights and obligations. IAS 10 Events after the Reporting Period provides guidance as to which events after the balance sheet date should lead to adjustments in the financial statements and which events shall be disclosed in the notes to financial statements. IFRS 10 Consolidated Financial Statements 2 IFRS 10 - effective date IFRS 10 shall be applied for annual periods beginning on or after 1 January 2013. IAS 40 Investment Property Overview. Source: IFRS - IAS 36 Illustrative Examples Example 2 Calculation of value in use and recognition of an impairment los Background and calculation of value in use At the end of 20X0, entity T acquires entity M for CU 10,000. IAS 40 Investment Property, defines and sets out rules on accounting for Investment Property.In summary Investment Property differs from other property, which is used in the production or supply of goods or for administrative proposes or held for sale in ordinary course of business. Adjusting events are those providing evidence of conditions existing at the end of the reporting period, whereas non-adjusting events are indicative of conditions arising after the reporting period (the latter being disclosed where material). Onerous Contracts - Cost of Fulfilling a Contract (paragraph 68A) (BC1-BC21) BC1; The cost of fulfilling a contract (paras. This publication is presented in two parts. IAS 1.10 In these illustrative financial statements, the titles of the statements are consistent with the titles used in IAS 1 Presentation of Financial Statements (2007). - Part II includes an illustrative example of a … IAS 10 Events after the Reporting Period 2017 - 07 2 Recognition and measurement Presentation and disclosure An entity shall present and disclose information that enables users of the financial statements to evaluate the effects of events after reporting period: In the Notes to the financial statement: ICAEW guides and support Factsheets. The entity also sells goods to a foreign customer for 10.5m on 30 September 2008, when the exchange rate was 1.75 to $1. 27 IPSAS 1 IPSAS 1, “Presentation of Financial Statements” (IPSAS 1) is set out in paragraphs PUBLIC SECTOR 1−155 and Appendices A−B. Due to the continuing recession, the investment reduced in value to €900,000 by 15 January 2014. IAS 21 does not specify where exchange gains and losses should be shown in the statement of comprehensive income. IAS 10.21 Where non-adjusting events occurring after … The illustrative examples that are pertinent to you include IE 1 to IE 31 (examples 1 to 6). IAS 10 contains requirements for when events after the end of the reporting period should be adjusted in the financial statements. The ; There are 4 main types of material events after the reporting period: A produces a component that is assembled in either B or C. The combined capacity … Practical Example - 1 An entity, with the dollar as its functional currency, purchases plant from a foreign entity for 18m on 31 May 2008 when the exchange rate was 2 to $1. used in IAS 36, Impairment of Assets when calculating the impairment of goodwill of a cash generating unit (CGU) where there is a non-controlling interest. Its aims are: 1. Scenario 1 $ Net assets included in the consolidated statement of financial position 500 IAS 10 Events after the reporting period FRK 221: Learning Area 1 A quick recap Events after the reporting Accounting rules and principles %%EOF replaces IAS 10 Events After the Balance Sheet Date (revised in 1999) and should be applied for annual periods beginning on or after 1 January 2005. References: IAS 1.10, IAS 1.113, IAS 1.54, IAS 1.60, IAS 1.61, IAS 1.78, IFRS 4.36, IFRS 4.37 Reference: IAS 1.54 2011 2010 January 1, 2010 IAS 1.54 Assets Cash $ xxx xxx xxx Investments (Note 4) xxx xxx xxx Investment income accrued xxx xxx xxx Due from reinsurers (Note 7) … At the year-end, the trade receivable would be stated at $7m, which would give an exchange gain of $1m that would be reported in profit or loss. endstream endobj startxref This document is designed to help centres in their delivery of International Accounting Standards (IAS) to students. IAS 32 is followed by both an application guidance (AG’s) which is integral to the standard, as well as illustrative examples (IE). 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