07 ed acquisition of an interest · 2015-03-09 · entities; ias28 (2011) investments in associates...
TRANSCRIPT
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IFRS Monitoring Committee
Knowledge Sharing on [Draft] International
Financial Reporting Standards
Exposure Draft:Accounting
Proposed amendments to IFRS 11
1
Exposure Draft:
Acquisition of an Interest in
a Joint Operation
Accounting Framework: Qualitative
Characteristic of Accounting
Information –Reliability,
Relevance, and Comparability.
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Comment Letter
FAP
Thailand
Role of FAP in Global Arena
ED/2012/7 Acquisition of an Interest in a Joint Operation is a Proposed Amendment
to IFRS11 (2011) Joint Arrangements.
Thailand
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… 2009 2011 2013 2013+
Issuance Date: TAS31 (2009)
Interests in Joint Ventures
Effective Date: TAS31 (2009)
Interests in Joint Ventures
Dynamic in Accounting Profession
3
Issuance Date: IFRS11 (2011) Joint
Arrangements; IFRS12 (2011) Disclosure of
Interests in Other Entities; IAS28
(2011) Investments in Associates and
Joint Ventures
Effective Date: IFRS11 (2011) Joint
Arrangements; IFRS12 (2011) Disclosure of
Interests in Other Entities; IAS28
(2011) Investments in Associates and
Joint Ventures
ED/2012/7 Acquisition of an Interest in a Joint
Operation
Comment LetterDeadline
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IFRS Monitoring Committee
IAS27
(2011)
• Separate Financial Statements
•Subsidiaries•Associates•Joint Ventures
IAS28
(2011)
• Investments in Associates and Joint Ventures
•Associates•Joint Ventures
IFRS10
(2011)
• Consolidated Financial Statements
•Subsidiaries
IFRS11
(2011)
• Joint Arrangements
•Joint Operations
•Joint Ventures
IFRS12
(2011)
• Disclosure of Interests in Other Entities
•Subsidiaries•Associates•Joint Ventures
4
•Joint Ventures •Joint Ventures•Joint
Operations
Subsidiaries Subsidiaries Subsidiaries
Associates Associates Associates
Joint Ventures Joint Ventures Joint Ventures Joint Ventures
Joint
Operations
Joint
Operations
Joint
Operations
Joint
Operations
ED
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IFRS11 (2011)
Joint Arrangement s
Effective on 01-01-2013
2001
2003
2011
1 2
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IFRS11 (2011)
Joint ArrangementS
Effective on 01-01-2013
1. Joint Operation
Revised Classification
Scheme
2. Joint Venture
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IFRS Monitoring Committee
TAS 31 (2009) Interests in Joint Ventures:
Types of Joint Venture
IAS 31 defines a joint venture as a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control.
1• Jointly
Controlled Operations
2• Jointly
Controlled
7
A joint venture is a contractual arrangement whereby two or more parties undertakean economic activity that is subject to joint control. These are of three types:• Jointly controlled operations
• Jointly controlled assets
• Jointly controlled entities.
Joint control exists only when the strategic financial and operating decisions relating to the economic activity require the unanimous consent of the parties sharing control.
2 Controlled Assets
3• Jointly
Controlled Entities
Revised Classification
Scheme
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IFRS Monitoring Committee
PROPORTIONATE CONSOLIDATION – LINE-BY-LINE
• ASSETS• Current Assets
• Cash (CashJVR + �%CashJCE)• A/R (A/RJVR + �%A/RJCE)• Inventory (InventoryJVR + �%InventoryJCE)
PROPORTIONATE CONSOLIDATION – SEPARATE LINE
• ASSETS• Current Assets
• Cash (CashJVR)• A/R (A/RJVR)• Inventory (InventoryJVR)• Current assets in jointly controlled entities (�%CA )
� LINE-BY-LINE PRESENTATION � SEPARATE LINE PRESENTATION
IAS28 (2011) eliminates the proportionate consolidation option for investment in joint venture (jointly controlled entity for IAS31(2009).
8
• Noncurrent Assets• PPE (PPEJVR + �%PPEJCE)
• LIABILITIES• Current Liabilities
• A/P (A/PJVR + �%A/PJCE)• N/P (N/PJVR + �%N/PJCE)
• Noncurrent Liabilities• B/P (B/PJVR + �%B/PJCE)
• EQUITY• EJVR
• Current assets in jointly controlled entities (�%CAJCE)• Noncurrent Assets
• PPE (PPEJVR)• Noncurrent assets in jointly controlled entities
(�%NCAJCE)• LIABILITIES
• Current Liabilities• A/P (A/PJVR)• N/P (N/PJVR)• Current liabilities in jointly controlled entities (�%CLJCE)
• Noncurrent Liabilities• B/P (B/PJVR)• Noncurrent liabilities in jointly controlled entities
(�%NCLJCE)• EQUITY
• EJVR
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IFRS Monitoring Committee
Joint Operator
Joint Operation
Joint Venturer
Joint Venture
Accounting for Joint Operator
The objective of the proposed amendment is to introduce guidance
on the accounting, by a joint operator, for the acquisition of an interest in a joint operation, as defined in IFRS11
Joint Arrangements, in which the activity of the joint operation
constitutes a business, as defined in IFRS3 Business Combinations.
…the activity of the joint operation constitutes
a business….
IFRS3 Business Combinations
Limited Scope Project
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INPUTB
U
S
10
PROCESS
OUTPUT
S
I
N
E
S
S
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Basis for Conclusions
❶
❷
❸
Diversity in practices related to the acquisition of interest in a joint operations
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Basis for Conclusions
GoodwillGoodwill
CostsCosts
DTA & DTLDTA & DTL
IFRS3 vs. Others
Gain on bargain purchase
IAS12
Area omitted by both IAS31
and IFRS11.
Relevant principles in IFRS3
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Basis for Conclusions
Misstatement of assets and liabilities
Inconsistency in partial application of
IFRS3
Impairment of assets may result in the future.
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Basis for Conclusions
Limited scope project, not a major change in principle.
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Basis for Conclusions
Prospective (as opposed to retrospective) application is proposed to avoid hindsight bias.
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A
L
REV
REV
EXP
Details on relevant principles on business combinations accounting Details on relevant principles on business combinations accounting are discussed in B33A-B33B.
EXP
Amendment proposed:
IFRS3 application
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Fair value
measurement
IFRS13 (2011)
Acquisition-related
costs
Deferred tax assets
and liabilities
Goodwill
∆IFRS3 (2009)
Unidentifiable intangible assets
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Early adoption
is permitted
Prospective
application
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Fair value
measurement
Prospective
Application
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IFRS Monitoring Committee
IFRS3 application �
�
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IFRS Monitoring Committee
Application to the acquisition of an interest in a joint operation on its formation �
�
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IFRS Monitoring Committee
Prospective application �
�
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IFRS Monitoring Committee
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