ifrs slide2

Agenda

2 © 2014 IBM Corporation

9/4/2014

Section1

Introduction to IFRS

Adoption of IFRS in India

IFRS Roadmap

Hierarchy of IFRS

List of Standards to be followed

Section2

Elements of Financial statement

Section3

Presentation of additional disclosure

Segment reporting,EPS,Related party transaction

Snap shot of Financial report following these standards

What ?Who?How?Where?When………….

Follow me

What ?Who developed this? Where?When?

International Financial Reporting Standards (IFRS) - Global standard for the preparation of public

company financial statements.

Developed by IASB -The IASB is an independent accounting standard-setting body, based in London.

It consists of 15 members from multiple countries, including the United States. The IASB began

operations in 2001 when it succeeded the International Accounting Standards Committee.

Where is this used- Approximately 90 countries have fully conformed with IFRS as promulgated by the

IASB

IFRS History

The IFRS was formerly known as International Accounting Standards (IAS), but in 2001 the International

Accounting Standards Board (IASB) took over the responsibility for setting International Accounting

Standards. Since then, the IASB has continued to develop standards called IFRS


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Hierarchy of IFRS International Financial Reporting Standards v/s IAS


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IFRS History

The IFRS was formerly known as International Accounting Standards (IAS), but in 2001 the International

Accounting Standards Board (IASB) took over the responsibility for setting International Accounting

Standards. Since then, the IASB has continued to develop standards called IFRS

IASB Board requirements

Composition

The IASB currently has 14 board members, of whom one is appointed as Chair and up to two as Vice-

Chairs. Up to 3 members may be ‘part-time’ members. IASB members are appointed for an initial term of

five years, renewable for one extended term of three years (five years in the case of members appointed

before 2 July 2009). The Chair and Vice-Chairs may serve second terms of five years, subject to an

overall maximum term of ten years

Geographical balance


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4 Members from Asia/Oceania region:

4 members from Europe

:4 members from North America and

1 from Africa

And 1 from south America and

Adoption of IFRS in INDIA Currently while IFRSs are not permitted for primary reporting requirements in India, the Securities and

Exchange Board of India has provided an option to listed entities having subsidiaries to submit their

consolidated financial results either in accordance with the accounting standards specified in section

211(3C) of the Companies Act, 1956, or in accordance with IFRS. This option is permitted only for

consolidated financial results by listed entities and submission of stand-alone financial results to the

stock exchanges shall continue to be in accordance with Indian GAAP

IFRS converged Indian Accounting Standards (referred to as Ind AS) have been issued.


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IFRS Roadmap for India

Proposed roadmap for IFRS adoption in India (transition date is yet to be formally announced by

the Indian Ministry of Corporate Affairs (MCA))

The latest recommendations by the ICAI, which may or may not be accepted by the MCA, propose the

following:

Ind AS(35 Indian IFRS standards) will be applied by the following classes of companies in preparing

consolidated financial statements for accounting periods beginning on or after 1 April 2016, with

comparatives for the year ending 31 March 2016 or later

a) Entities with equity or debt securities listed, or in the process of listing, in or outside India

b)Companies having a net worth of Rs. 500 crore or more

Holding, subsidiary, joint venture or associate companies of the above two classes of entities


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Press Release by ICAI


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Important terms and principles

Different Methods of valuation of Financial Reporting:

Fair Market value- Fair market value is a specific type of market value. It is defined by a legal or regulatory jurisdiction and varies with individual jurisdictions

Market value- Market value is an opinion of the most probable buy-sell price. It reflects the probable amount of money a buyer would pay and a seller would accept for an item of property under specific conditions as noted in the following definition

Realizable value :

Above two usually applies in case of intellectual property, shares of stock.

Historical cost

Carrying amount

Principles

Cost

Accrual

Matching

Disclosure principle

Separate entity

Objective evidence

9

© 2014 IBM Corporation 9/4/2014

Brainstorm on valuation…………

if Sunny purchased an asset for $6,000 and estimated depreciation expense of $600 per year for 10

years, the cost of the asset after the first year less depreciation is $5,400. If the market value of the asset

were $5,800 after year one in the open market, Sunny would not write up the asset after the first year.

Rather, the asset would remain at original cost less any depreciation until the asset is sold. Pass JE if

asset is sold after a year.

if my stock investment, purchased for $2,000, falls in value to $1,400, then fair-value accounting would

show that investment on my financial statements at………?


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Underlying assumptions in IFRS

There are four underlying assumptions in IFRS:

Accrual basis

Going concern

Stable measuring unit assumption -(i.e. traditional historical cost accounting: assets and liabilities are

recorded at their originally acquired values; not generally restated for changes in values).

Units of constant purchasing power-The rejection of the stable measuring unit assumption in certain

situations:- it has other name as real value accounting or current cost accounting.

Formula=Book value X current month general price index/ average index of holding period


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http://www.e-conomic.co.uk/accountingsystem/glossary/assets

http://www.e-conomic.co.uk/accountingsystem/glossary/liabilities

CPPA Brainstorm……..

Nexus Ltd recorded administration expenses of $115 000 for the year ended 30 June 2012. Assume that

these costs were incurred evenly over the year. If the general price level index was 170 on 1 July 2011

and 190 on 30 June 2012 with an average of the year of 180, what amount would be recorded to

administration expenses for the year in accounts restated to a constant purchasing power basis?


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IBM Company had a closing balance of inventory at 30 June 2012 equal to $10000. This inventory had

been purchased in the last three months of the financial year. Assume the general price level index

was 140 on 1 July 2011, 144 on 31 December 2011, 150 on 30 June 2012, the average for the year (July

2011-June 2012) was 145 and the average for April 2012 - June 2012 was 147.

For showing updated inventory with CPPA, we will use following formula


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Sourit Ltd purchased a vehicle on 1 July 2011 for $140 000. The vehicle is depreciated on a straight-line

basis over a 4-year period, with nil residual value. The following general price level indices are available:

1 July 2011 130

30 June 2012 140

Average for year 135

What is the amount of depreciation shown in the income statement (restated to a constant

purchasing power basis) for the year ended 30 June 2012?


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Effect on Report

How it can effect?

Under IFRS, an entity is required to depreciate separately the significant parts of PPE if they have different

useful life (Component Approach-each part of item which is significant to the cost of an asset must

be depreciated separately).Change in the method of depreciation is treated as change in accounting

estimates and impact is prospective.

Under Indian GAAP, Generally component approach is not required or followed. Change in depreciation

method is treated as change in accounting policies and impact is determined by retrospectively


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Example of component approach


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Assume that EuroAsiaAirlines purchases an airplane for €100,000,000 on January

1, 2013. The airplane has a useful life of 20 years and a residual value of €0.

EuroAsia uses the straight-line method of depreciation for all its airplanes.

EuroAsia identifies the following components, amounts, and useful lives, as shown

below,calculate depreciation as per component approach.

List of International Accounting Standards


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1. IAS1 Presentation of Financial Statements

2. IAS 2 Inventories

3. IAS 7 Statement of Cash Flows

4. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

5. IAS10 Events After the Reporting Period

6. IAS 11 Construction Contract

7 . IAS 12 Income Tax

8. IAS 14 Segment Reporting

9. IAS 15 Information Reflecting the Effects of Changing Prices (Withdrawn)

10. IAS 16 Property, Plant and Equipment

11. IAS 17 Leases

Sl No

Std No Description

Note- Few Standards have been

withdrawn or Superseded by

new standard

List of International Accounting Standards continue…….


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12. IAS18 Revenue

13. IAS 19 Employee Benefits (2011)

14. IAS 20 Accounting for Government Grants and Disclosure of Government Assistance

15. IAS 21 The Effects of Changes in Foreign Exchange Rates

16. IAS 22 Business Combinations (Superseded)

17. IAS 23 Borrowing Cost

18. IAS 24 Related Party Disclosures

19. IAS 26 Accounting and Reporting by Retirement Benefit Plans

20. IAS 27 Consolidated and Separate Financial Statements (2008)

21. IAS 28 Investments in Associates (2003)

22. IAS 29 Financial Reporting in Hyperinflationary Economies

Sl No

Std No Description

List of International Accounting Standards continue…….


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23. IAS30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions

24. IAS 31 Interests In Joint Ventures

25. IAS 32 Financial Instruments: Presentation

26. IAS 33 Earnings Per Share

27. IAS 34 Interim Financial Reporting

28. IAS 35 Discontinuing Operations (Superseded)

29. IAS 36 Impairment of Assets

30. IAS 37 Provisions, Contingent Liabilities and Contingent Assets

31. IAS 38 Intangible Assets

32. IAS 39 Financial Instruments: Recognition and Measurement

33. IAS 40

34. IAS 41

Investment Property

Agriculture

Sl No

Std No Description

Section 1- Elements of financial statements

Chapter 1-Revenue IAS18

Chapter 2- Property, plant and equipment IAS16,

( Depreciation, Government grants,Borrowing cost, Asset held for sale, Investment Property)

Chapter 3 - Impairment of assets

Chapter 4 - Leases

Chapter 5- Intangible assets and goodwill

Chapter 6 - Inventories and construction contract

Chapter 7 - Liabilities-provisions, contingent assets and liabilities

*Note-Screen shots of slide about financial report belongs to Unilever Group.


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Chapter 1 IAS-18 Revenue

IAS-18 Revenue

Overview:

It outlines the accounting requirements for when to recognise revenue from the sale of goods,

rendering of services, and for interest, royalties and dividends.

Objective

accounting treatment for revenue arising from certain types of transactions and events.

Measurement of revenue

Revenue should be measured at the fair value of the consideration received or receivable.


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Term and criteria in case of Point Of Sale:

Term and criteria:

Recognisation should be when it is probable that future economic benefits will flow to the entity and these

can be measured. Source of revenue is sale of goods, fee from service, interest, dividend and royalties.

If revenue has already recognised but collectability of cash is brought in to doubt, the amount should be

recognised as an expenses, not an adjustment of the revenue previously recognised.

Four criteria should meet to recognise it. Basic requirement of point of sale is as follow:

Product has been provided to the buyer

Ownership passed to buyer

Buyer indicated his willingness to pay

Monetary value of goods/service has been established


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Recognition and Disclosure

Recognition of revenue

incorporating an item that meets the definition of revenue (above) in the income statement when it meets

the following criteria:

it is probable that any future economic benefit associated with the item of revenue will flow to the entity,

and

the amount of revenue can be measured with reliability

Disclosure

accounting policy for recognising revenue

amount of each of the following types of revenue:

– sale of goods

– rendering of services

– interest

– royalties

– dividends

– within each of the above categories, the amount of revenue from exchanges of goods or services


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Advance payment received

Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the

services have been rendered or products have been delivered.

For example, a company that receives an advance payment of $100,000 for delivery of a product would

book it as deferred revenue on its balance sheet. Once it delivers the product to the customer, the

company would transfer the $100,000 from the deferred revenue account to regular revenue on its income

statement.

Collection of tax is not a revenue.

Recognise revenue only if below criteria are satisfied.


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Sale of goods Rendering Service

Revenue can be measured reliably Revenue can be measured reliably

Economic benefit will flow to entity Economic benefit will flow to entity

Cost incurred can be measured Cost incurred can be measured

Transfer of risk and reward of ownership and

no continuing managerial involvement

Stage of completion can be measured

Warranty cost and service fee

Matching of revenue to warranty cost and service fee

The sale price of a product may include identifiable amount for subsequent servicing. In this case amount

will be deferred and recognise as revenue over the period during which the service is performed.

Warranty cost

Washing machine sells for $500 with a one year warranty. The dealer knows from experience that 15% of

these machines develop a fault in the first year and that the average cost of repair is $100.He sells 200

machines. How does he account for this sale?

Service fee

A Computerised accountancy package is sold with one years after sales support. Cost of providing

support to one customer for one year is calculated to be $50.The company has a mark-up on cost of 15%

on service fee.Product is sold for $350.How is sale accounted for?


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Interest, royalties, and dividends

For interest, royalties and dividends, provided that it is probable that the economic benefits will flow to the

enterprise and the amount of revenue can be measured reliably, revenue should be recognised as

follows:

interest: using the effective interest method, based on calculation of period

royalties: on an accruals basis in accordance with the substance of the relevant agreement

dividends: when the shareholder's right to receive payment is established


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Chapter 1 Roundup

Recognisation of revenue, Terms for point of sale and service performed.

Treatment of revenue in case of advance payment and cash collectability is in doubt.

Treatment in case of sale with cash on delivery, right of return exist, consignment goods etc.

Service and warranty cost attached to revenue


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Chapter 2 IAS-16 property plant equipment

Depreciation accounting

IAS 20-Government grants

IAS 40 Investment property

IAS 23 Borrowing costs


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IAS-16 Property plant and equipment

Overview: Property, plant and equipment is initially measured at its cost, subsequently measured either

using a cost or revaluation model, and depreciated over its useful life.

Scope-Property, plant and equipment are tangible items that:

– are held for use in the production or supply of goods or services, for rental to others, or for

administrative purposes; and

– are expected to be used during more than one period.

The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if:

– it is probable that future economic benefits associated with the item will flow to the entity; and

– the cost of the item can be measured reliably.

Does not apply to biological assets related to agriculture activity, non-regenerative resources(oil, gas etc)

and exploration and evaluation assets.

Objective: recognition of assets, the determination of their carrying amounts, and the depreciation charges

and impairment losses related to assets


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Recognisation and Measurment

Recognition:

Items of property, plant, and equipment should be recognised as assets when it is probable that:

it is probable that the future economic benefits associated with the asset will flow to the entity, and

the cost of the asset can be measured reliably.

Measurment

Initial measurement:

Cost includes all costs necessary to bring the asset to working condition for its intended use.

Measurement subsequent to initial recognition

IAS 16 permits two accounting models: Cost and revaluation model (at fair value).


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In scope of PPE


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Measurement

After initial recognition:

An entity shall choose either the cost model or the revaluation model as its accounting

policy and shall apply that policy to an entire class of property, plant and equipment.

Historical Cost

-

Depreciation of historical

amount over useful life

-

Impairment losses

Model

Carr

yin

g A

mount Revalued amount

-

Depreciation of revalued

amount over useful life

-

Impairment losses

Regular valuations to ensure

that carrying amount does

not differ materially from fair

value at balance sheet date

Cost Revaluation

Revaluation Accounting

Market value usually represent its fair value.

When an item of PPE is revalued, the whole class of assets to be revalued at the same time.


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• Debit asset value(statement of financial position)

• Credit Profit or Loss(offset earlier decrease)

• Credit Revaluation reserve(B.F)

Increase in value

• Debit revaluation surplus(offset previous increase)

• Debit profit or loss(B.F)

• Credit Asset value(statement of financial position)

Decrease in value

Brainstorming………..

Revaluation surplus

ABC co has as item of land carried in its books @$13,000.Two years ago a slump in land values led the

company to reduce the carrying value from $15,000.This was taken as an expenses in profit or loss.

There has been a surge in land prices in the current year, however, and the land is now worth $20,000.

Account for revaluation in current year.

Revaluation Decrease

Swap round the example given above: The original cost was $15,000,revalued upward to $20,000 two

years ago. The value has now fallen to $13,000.Account for decrease in value.


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Important definition and terms

Depreciation:

is the systematic allocation of the depreciable amount of an asset over its useful life;

depreciation of an asset begins when it is available for use.

Depreciable amount:

is the cost of an asset, or other amount substituted for cost, less its residual value.

Useful life:

the period over which an asset is expected to be available for use by an entity; or

the number of production or similar units expected to be obtained from the asset by an

entity.

Residual value:

the estimated amount that an entity would currently obtain from disposal of the asset,

after deducting the estimated costs of disposal, if the asset were already of the age and

in the condition expected at the end of its useful life.

The carrying amount: amount at which assets is recognised in the financial statements(B/S)

after deducting any accumulated depreciation and accumulated impairment losses.

Impairment loss: Amount by which the carrying amount exceeds its recoverable amount.


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Depreciation

Define

A method of allocating the cost of a tangible asset over its useful life

Note-Land and building are dealt with separately even when they are acquired together because land

normally has an unlimited life and is therefore not depreciated. Any increase in the value of land on which

a building is standing will have no impact n the determination of the building’s useful life.

Review of useful life and depreciation method:

It should be carried out at least at each financial year end and the depreciation charge for the current

and future period should be adjusted. Change in accounting estimates for prospectively as

adjustment to future depreciation. Similar to US GAAP

Overhauls-Repairs and Maintenance:

Where an assets requires regular overhauls in order to continue to operate, the cost of the overhaul is

treated as an additional component and depreciated over the period to the next overhaul.

Retirement and disposal: When an assets is permanently withdrawn from use, sold or scrapped, and no

future economic benefits are expected from its disposal, it should be withdrawn from financial

statements.


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Brainstorm on PPE…………….

What will be asset value in books if one asset from the block has completely depreciated.

We Calculate depreciation for Leasehold land or freehold land, please explain?


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Disclosures

For PPE

Measurement base for determining the gross carrying amount

Recoverable amount

Revalued assets-basis used to revalue, effective date of revaluation, who was valuer, revaluation surplus

or deficit.

For Deprecation

Depreciation method

Useful lives or depreciation rates

Total depreciation allocated for the period

Gross amount of depreciable assets and the related accumulated depreciation


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Example of other non current assets line items


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IAS 20 — Accounting for Government Grants and Disclosure of Government Assistance

It is common for entity to receive grants for various purpose( subsidies, premium, etc..).We will cover below

topics.

Objective of IAS 20

Scope

Definition

Accounting treatment

Disclosure


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Scope, Accounting and disclosure

Scope

The benefit of a government loan at a below-market rate of interest is treated as a government grant.

Do not include:

Government acting as part owner

Government assistance: Government grants do not include government assistance whose value cannot be reasonably measured, such as technical or marketing advice. It also does not include if given in the form of ‘Tax breaks’(in the form of benefits in determining taxable income)

Accounting for grants

A government grant is recognised only when there is reasonable assurance that (a) the entity will comply with any conditions attached to the grant and (b) the grant will be received. The grant is recognised as income over the period necessary to match them with the related costs, for which they are intended to compensate, on a systematic basis.

A grant relating to assets may be presented in one of two ways:

as deferred income, or

by deducting the grant from the asset's carrying amount.

A grant relating to income may be reported separately as 'other income' or deducted from the related expense


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IAS 40 — Investment Property

Overview

IAS 40 Investment Property applies to the accounting for property (land and/or buildings) held to earn

rentals or for capital appreciation (or both). Investment properties are initially measured at cost and, with

some exceptions. may be subsequently measured using a cost model or fair value model.

E.g: Entity hold land and building as an investment for capital appreciation rather than for use in the

business.

land held for a currently undetermined future use

building leased out under an operating lease

vacant building held to be leased out under an operating lease

Property being constructed or developed for future use

Definition of investment property

Investment property is property (land or a building or part of a building or both) held (by the owner or by

the lessee under a finance lease) to earn rentals or for capital appreciation or both


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Brainstorming

Rich co has piece of land. The directors have not yet decided whether to build a factory on it for use in its

business or to keep it and sell when its value has risen. Would this be classified as investment property

under IAS40?


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Continue

Measurement

Initial measurement => Cost

Subsequent measurement => an accounting policy that must be applied to all investment property

– Fair Value Model; or

– Cost Model

Cannot choose to have some investment properties at cost and some at fair value

Where an entity chooses to classify a property held under an operating lease as an investment

property, there is no choice. The Fair value model must be used for all the entity’s investment

property, regardless of whether it is owned or leased.

What happens with dual-use property?

Dual-use purposes properties are those which are occupied by the owner to use in the production or

supply of goods and services; and also to earn rentals.

The entity shall give a different treatment to the portions held to earn rentals / capital appreciation vs.

those portions held for use in the production or supply of goods and services


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If the portions:

Accounting

Could be sold or leased out separately Each portion is accounted separately

Could not be sold or leased out separately Investment Property

– Only if owner-occupied portion is

insignificant

Disposal and Disclosure

Disposal

An investment property should be derecognised on disposal or when the investment property is

permanently withdrawn from use and no future economic benefits are expected from its disposal. The gain

or loss on disposal should be calculated as the difference between the net disposal proceeds and the

carrying amount of the asset and should be recognised as income or expense in the income statement.

Disclosure

whether the fair value or the cost model is used

if the fair value model is used, whether property interests held under operating leases are classified and

accounted for as investment property

if classification is difficult, the criteria to distinguish investment property from owner-occupied property and

from property held for sale

Rental income and expenses

Any restriction or obligations

Assumption in determining fair value.


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IAS 23 — Borrowing Costs

Overview

Interest and other costs that the entity incurs to borrow funds are considered borrowing costs.

Borrowing Costs directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset.

– Qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

Income on temporary investment of funds borrowed specifically for construction of an asset reduces borrowing cost eligible for capitalization.

Other borrowing costs are recognized as an expense.


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Capitalization conditions

Commencement Cessation

The entity meets all of the following conditions:

• expenditures for the asset are incurred;

• borrowing costs are incurred; and

• activities to prepare the asset for its use or sale are in

progress

The entity shall cease capitalizing he capitalization of

borrowing costs when the preparation activities are

complete and the asset is ready for use.

Borrowing Costs (cont.)

General Borrowing Costs:

– The entity shall apply a capitalization rate to the expenditures on the qualifying asset.

– Capitalization rate shall be the weighted average of the borrowing costs applicable to the period.

– Capitalized amount could not exceed the borrowing costs incurred in the period.

Example: What is the amount to be capitalized if the borrowing amount was expensed as intended?

– Borrowing = 1000

– Interest Rate = 1%

– Borrowing usage = 40% building construction, 50% vendors payments, 10% cash

Disclosure [IAS 23.26]

amount of borrowing cost capitalised during the period

capitalisation rate used


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% Total Interest 1%

building construction 40 400 4

Vendor payment 50 500 5

Cash 10 100 1

Borrowing(Total) 1000 10

Total amount to be capitalized in

the period is:

$ 404

Unilever Report


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Chapter Roundup

IAS 16 covers accounting of PPE which are tangible and non-current assets.

It is common for entities to receive grants from government for various purpose. Treatment of this is

covered under IAS 20 Accounting for Government Grants and Disclosure of Government

Assistance.

An entity may own land and building as an investment rather then for use in business. It may generate

cash flow largely independent of the other assets which the entity holds. The treatment of investment

property is covered by IAS40.

IAS 23 looks at the treatment of Borrowing Cost, where related borrowing are applied to the

construction of certain assets. These are what are usually called ‘self constructed assets’, where an entity

builds its own inventory or non-current assets.


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Chapter 3 IAS 36 — Impairment of Assets Overview

Impairment is determined by comparing the carrying amount of the assets with its recoverable amount. It

applies to all tangible, Intangible and financial assets with few exceptions listed below. It means fall in

value of assets.

inventories (see IAS 2)

assets arising from construction contracts (see IAS 11)

deferred tax assets (see IAS 12)

assets arising from employee benefits (see IAS 19)

financial assets (see IAS 39)

investment property carried at fair value (see IAS 40)

agricultural assets carried at fair value (see IAS 41)

insurance contract assets (see IFRS 4)

non-current assets held for sale (see IFRS 5)


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http://www.iasplus.com/en/standards/ias/ias2







http://www.iasplus.com/en/standards/ifrs/ifrs4


Scope and objective

Scope: When and how to test for impairment How to recognize impairments Determining cash generating units (CGUs) Determining the appropriate level to allocate goodwill and test for impairment How to record or reverse an impairment The principles of disclosure.

Objective

When to test for impairment-Indicators of impairment

Recoverable Amount (RA)

Cash Generating Units (CGU)

Calculation of Recoverable Amount

Goodwill: allocation and disposal

Reversal of prior losses

– Indicators of reversal of impairment losses


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When to test assets for impairment


9/4/2014 55 IFRS Policy & Implementation Team

Is asset goodwill or

indefinite-lived

Intangible asset?

YES

Test for impairment annually

whether or not there is an

Indication of impairment

NO

Any indication of

Impairment?

Test asset for

impairment YES

No impairment test needed

NO Annual testing may be performed at any time during the year, provided the same assets are tested at the same time each year. Different assets may be tested at different times.

All other assets (not excluded from the scope of IAS 36) should be tested only when an indicator of impairment exists.

An assessment of impairment indicators must be performed at the end of each reporting period.

When to test assets for impairment - Continued

Indicators of Impairment: Triggering Events


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External Significant decline in market value

Significant changes in the

technological, market, economic and

legal environment in which the entity

operates

Market interest rates or other market

rates of return on investments have

increased during the period

Carrying amount of the net assets of

the entity is more than its market

capitalization

Internal Evidence of obsolescence or

physical damage of an asset

Significant adverse changes on

the entity have taken place

during the period, or are to take

place in the near future

Internal reporting indicates that

the economic performance of an

asset is, or will be, worse than

expected

Recognisation and Measurment

Impairment Loss= Carrying Amount-Recoverable amount


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Recoverable Amount = higher of FVLCTS or VIU

Terminology:

•Fair value less costs to sell (FVLCTS) is the amount obtainable from the sale of an asset less the

costs of disposal.

•Value in use (VIU) is the present value of the future cash flows expected to be derived from an

asset

•The recoverable amount shall be estimated for the individual asset

Recoverable Amount

Asset’s/CGU’s

carrying

amount

An asset/CGU is impaired if:



Allocating Impairment Loss

Is an asset/CGU impaired?

Process ends

Is the impairment loss

greater than the carrying

amount of goodwill?

YES NO

Reduce goodwill carrying

value by total impairment

loss

Allocate excess impairment

loss to other assets in the

CGU pro-rata using

their carrying amounts

NO YES

An asset’s carrying amount should not be

reduced below the highest of: – Its fair value less costs to sell (if

determinable);

– Value in use (if determinable); or

– Zero

A liability should be recognized for any

remaining amount of an impairment loss

for a CGU only if it is required by another

standard.

And it should be charged to p&l account

as an expenses

Allocation treatment of an impairment loss

Allocate between assets in following order:

A)Damaged stock, If any

B)Goodwill

All other assets on pro rata basis.

Any remaining amount will be recognised as liability.

The carrying amount of an asset should not be reduced below the highest of:

its fair value less costs of disposal (if measurable)

its value in use (if measurable)

zero.


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Brainstorming………

A company has acquired another business for $4.5m:Tangible assets are valued at $4.0m and goodwill at

$0.5m.

An assets with carrying value of $1m is destroyed in a terrorist attack. The assets was not insured. The loss

of the asset, without insurance, has prompted the company to assess whether there has been an

impairment of assets in the acquired business and what the amount of any such loss is.

The recoverable amount of the business is measured as $3.1m.

Calculate impairment loss, allocate it and determine new carrying value.


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Reversal of an impairment loss and Disclosure

Reversal of an impairment loss

Recoverable amount of an assets that has previously been impaired might turn out to be the higher then

the assets carrying value. It should be recognise as income in profit/loss and assets value should be

increased to its new recoverable amount.

Reversal of an impairment loss for goodwill is prohibited

Disclosure

Disclosure by class of assets: [IAS 36.126]

impairment losses recognised in profit or loss

impairment losses reversed in profit or loss

which line item(s) of the statement of comprehensive income

impairment losses on revalued assets recognised in other comprehensive income

impairment losses on revalued assets reversed in other comprehensive income


9/4/2014

Unilever report


9/4/2014

Chapter Roundup

IAS 36 consider:

Indication of impairment of assets

Measuring recoverable amount

Measuring value in use

Cash generating units

Accounting treatment of impairment of loss

Reversal of an impairment of assets.


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Chapter 4 IAS 17 — Leases Agenda

Characteristics of a lease

Determine lease type

Effect on incorrect treatment of lease in financial statement.

Account for operating lease in Financial statements of the lessor and the lessee

Account for Finance lease in Financial statements of the lessor and the lessee


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Continue…….

Overview:

IAS 17 Leases prescribes the accounting policies and disclosures applicable to leases, both for lessees

and lessors for Finance and operating lease.

Lease-A contract between a lessee for the hire of specific asset. Lessor retains ownership of assets but

conveys the right of the use of the asset to the lessee for an agreed period of time in return for the

payment of specified rentals.

Classification of leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incident to

ownership. Title may or may not eventually be transferred. All other leases are classified as operating

leases. Classification is made at the inception of lease

Question:

A businessman hire (lease)a car while his own is being repaired. A lease of this nature is for short period

of time. lessor is responsible for the maintenance. Agreement of this type is called?


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Leases of Land and Building

Both Land and Building elements included in a lease are classified separately:

- Land element (indefinite economic life) is normally classified as an operating lease, unless

title is expected to pass to the lessee by the end of the lease term;

- Building could be either finance or operating lease.

Minimum lease payments are allocated between land and building elements proportionally to their relative fair value at the inception of the lease.

Land and buildings are not separated when:

- The land element is immaterial at the inception of the lease; - The lease payments cannot be allocated reliably; - The lessee’s interest in both is classified as investment property.


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Section Summary

Is ownership transferred by the end of the lease term?

Does the lease contain a bargain purchase option?

Is the lease term for a major part of the asset’s useful life?

Is the present value of minimum lease payments substantially equal to the assets’s

fair value.


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Yes

Yes

Yes

Yes

F

I

N

A

N

C

E

L

E

A

S

E

No

No

No

Operating lease

Lessee Accounting

Lessee Accounting

Finance lease: Record as an asset in the statement of financial position and a liability to pay for it(lower

of FV or MLP(discounted at the interest rate implicit in the lease, if practicable, or else at the entity's

incremental borrowing rate)), finance charge and the reduction of the outstanding liability

.If there is no reasonable certainty that the lessee will obtain ownership at the end of the lease – the asset

should be depreciated over the shorter of the lease term or the life of the asset

Operating lease: Write of rental on a straight line basis.(the lease payments should be recognised as an

expense in the income statement over the lease term on a straight-line basis)

Lessor Accounting

Finance Leases at commencement of the lease term, the lessor should record a finance lease in the

balance sheet as a receivable, at an amount equal to the net investment in the lease

the lessor should recognise finance income based on a pattern reflecting a constant periodic rate of return

on the lessor's net investment outstanding in respect of the finance lease

Operating Leases Record as an long-term asset and depreciate over useful life, record on a straight line

basis over the lease term.


9/4/2014

Chapter Roundup

IAS 17 covers the accounting under lease transaction for both lessees and lessors.

There are 2 forms of lease

Lease accounting:


9/4/2014

Unilever report


9/4/2014

Chapter 5 IAS 38 — Intangible Assets Topic List

IAS 38 Intangible assets

Research and development costs

Goodwill (IFRS3)


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Objective and Definition of Intangible assets

The Objective of the standard:

A)To establish as standard when an intangible asset may or should be recognised

B)To specify how an intangible asset should be measured

C)To specify the disclosure requirement for intangible assets.

Definition of Intangible assets:

Intangible asset: an identifiable non-monetary asset without physical substance. An asset is a resource

that is (a) controlled by the entity as a result of past events (for example, purchase or self-creation) and

from which future economic benefits (inflows of cash or other assets) are expected. [IAS 38.8] Thus, the

three critical attributes of an intangible asset are:

Identifiability

control (power to obtain benefits from the asset)

future economic benefits (such as revenues or reduced future costs)


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Recognition

Recognition criteria.

IAS 38 requires an entity to recognise an intangible asset, whether purchased or self-created (at cost) if,

and only if: [IAS 38.21]

it is probable that the future economic benefits that are attributable to the asset will flow to the entity; and

the cost of the asset can be measured reliably.

If recognition criteria not met. If an intangible item does not meet both the definition of and the criteria for

recognition as an intangible asset, IAS 38 requires the expenditure on this item to be recognised as an

expense when it is incurred.

Reinstatement. The Standard also prohibits an entity from subsequently reinstating as an intangible asset,

at a later date, an expenditure that was originally charged to expense


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Examples of intangible assets

Patented technology, computer software, databases and trade secrets

trademarks, trade dress, newspaper mastheads, internet domains

video and audiovisual material (e.g. motion pictures, television programmes)

customer lists

mortgage servicing rights

licensing, royalty and standstill agreements

import quotas

franchise agreements

customer and supplier relationships (including customer lists)

marketing rights

Intangibles can be acquired:

by separate purchase

as part of a business combination

by a government grant

by exchange of assets

by self-creation (internal generation)


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Key Categories of Intangible Assets

Intangible assets acquired separately :Cost can be measured reliably

Intangible assets acquired in a business combination : Cost = FMV at the date of

acquisation

Intangible assets generated internally – Note: Internally generated goodwill shall not be recognized as an intangible asset


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Research and Development costs - Initial recognition



Technical feasibility

Intention to complete and use or sell

Ability to use or sell

Probable future economic benefits

Adequate resources to complete development

Ability to measure expenditures

Research Phase Development Phase

Expense costs Capitalize costs when these criteria are met:

Brainstorming………

Doug co is developing a new production process. During 2013,expenditure incurred was $100000 of

which $90,000 was incurred before 2013 and $10,000 between 1 December 2013 and 31 December

2013. Doug co can demonstrate that, at 1 December 2013,the production process met the criteria for

recognisation as an intangible asset. The recoverable amount of the know-how embodied in the process

is estimated to be $50,000.

How should the expenditure be treated?


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Examples of spending considered to be part of the research phase:


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Development Phase expenditure example


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Measurement of Intangible Assets

Initial measurement

• Intangible assets are initially measured at cost.

Subsequent measurement

• An entity must choose either the cost model or the revaluation model for each class of intangible asset


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Brainstorming……

Downward revaluation

An intangible asset is measured by a company at fair value. The asset was revalued by $400 in 2013,and

there is a revaluation surplus of $400 in the statement of financial position. At the end of 2014,the asset is

valued again, and a downward valuation of $500 is required.


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Example of Internally generated intangibles



XYZ Ltd. is in the process of developing a new operating system software code that will

be integrated into its new mid-range servers targeted at medium size companies to

take market share in that space. XYZ Ltd has incurred and expensed the following

expenses.

Type of Cost Amount

Lab costs $6000

Personnel costs $7500

Material costs $10,000

Lab costs comprise allocated rent and utility costs. It is determined that 80% of the total

rental space in the lab is dedicated to development activities. 70% of the personnel

costs was incurred on people that directly worked on developing the new technology

and 90% of the material costs were incurred on developing the prototype. XYZ expects

the new technology to be ready by 4Q 2X10. How much of this expense should be

reclassified from expense and capitalize assuming the recognition criteria are met?

Facts/Question:

Example of Internally generated intangibles

Answer:



Research Phase Development Phase*

Lab costs $1,200 $4,800

Personnel costs $2,250 $5,250

Material costs $1,000 $9,000

Total $4,450 $19,050

The amount to be reclassified from expense and capitalize is $19,050 as that

represents the expense incurred in the development phase (*assuming 100% of

this spending was incurred upon achieving TF) and the recognition criteria are

met.

Useful Life and Amortization

Classification of intangible assets based on useful life

Intangible assets are classified as: [IAS 38.88]

Indefinite life: no foreseeable limit to the period over which the asset is expected to generate net cash

inflows for the entity.

Finite life: a limited period of benefit to the entity.


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Finite useful life Amortize over useful life

Indefinite useful life Test annually for impairment

Disclosure

useful life or amortisation rate

amortisation method

gross carrying amount

accumulated amortisation and impairment losses

line items in the income statement in which amortisation is included

reconciliation of the carrying amount at the beginning and the end of the period showing: – additions (business combinations separately) – assets held for sale – retirements and other disposals – revaluations – impairments – reversals of impairments – amortisation – foreign exchange differences – other changes

basis for determining that an intangible has an indefinite life

description and carrying amount of individually material intangible assets

certain special disclosures about intangible assets acquired by way of government grants,etc


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Section summary

An Intangible asset should be recognised if, and only if, it is probable that future economic benefits will

flow to the entity and the cost of the asset can be measured reliably.

An asset is the initially recognised at cost and subsequently carried at cost or revalued amount.

Cost that do not met the recognisation criteria should be expenses as incurred.

Finite useful life intangible asset should be amortised over its useful life.


9/4/2014

Unilever Group Report


9/4/2014

IFRS 3 — Business Combinations and Goodwill

Scope – It covers accounting treatment of goodwill acquired in business combination

but does not apply to:

The formation of a joint venture* [IFRS 3.2(a)]

The acquisition of an asset or group of assets that is not a business, although general guidance is

provided on how such transactions should be accounted for [IFRS 3.2(b)]

Combinations of entities or businesses under common control (the IASB has a separate agenda project

on common control transactions) [IFRS 3.2(c)]

Acquisitions by an investment entity of a subsidiary that is required to be measured at fair value through

profit or loss under IFRS 10 Consolidated Financial Statements. [IFRS 3.2A]


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http://www.iasplus.com/en/projects/research/short-term/common-control




Initial and subsequent measurement


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Cost = Cost of combination – NFV of assets,

liabilities and contingent liabilities

Subsequent measurement at cost less any accumulated impairment

losses,it is not amortised instead it is tested for impairment at least

anually

Initial measured at cost

No matter how goodwill is calculated within the total agreed purchase price,It will be always shown

as per his(purchaser) valuation .

Brainstorming…….

If A values his net assets at $40,000,goodwill is agreed at $21,000 and B agrees to pay $61,000 for the

business but values the net assets at only $38,000,then the goodwill in the B’s book will be?


9/4/2014

Chapter Roundup

Intangible asset are defined by IAS 38 as non-monetary assets, that must be identifiabale, controlled as

a result of past event and able to provide future economic benefits.

Development cost and research cost as an expenses or an assets.

Initially measured at cost, but subsequently at cost or a revalued amount

Goodwill purchased on arising on consolidation is retained in the statement of financial position as an

intangible assets under IFRS 3.

Anually impairment

Purchased goodwill is shown an intangible non-current assets but non-purchased is not shown as an

asset.


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Chapter 6 IAS 2 — Inventories and IAS 11 — Construction Contracts

IAS 2 — Inventories The objective of IAS 2 is to prescribe the accounting treatment for inventories. It

provides guidance for determining the cost of inventories and for subsequently recognising an expense,

including any write-down to net realisable value, It also provides guidance on the cost formulas

IAS 11 — Construction Contracts IAS 11 Construction Contracts provides requirements on the

allocation of contract revenue and contract costs to accounting periods in which construction work is

performed. Contract revenues and expenses are recognised by reference to the stage of completion of

contract activity where the outcome of the construction contract can be estimated reliably, otherwise

revenue is recognised only to the extent of recoverable contract costs incurred.


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IAS 2 — Inventories and short-term WIP

Define inventory and its scope:

a) held for sale in the ordinary course of the business (e.g. finished goods or merchandise purchased by a retailer held for sale)

b) in the process of production for such sale (e.g. unfinished goods); or

c) in the form of materials or supplies to be consumed in the production process or in the rendering of services (e.g. raw materials/ supplies awaiting use in the production process )

This Standard doesn’t apply to: Work in progress arising under construction contracts (IAS 11), i.e.

a contract specifically negotiated for the construction of an asset Financial instruments (IAS 32) Biological assets related to agricultural activity and agricultural produce at the point of the harvest (IAS

41) Inventory includes Raw material Finished goods WIP And Goods purchased and held for resale.


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Cost

Inventories are required to be stated at the lower of cost and net realisable value (NRV).

Where NRV =estimated selling price in the ordinary course of business- estimated costs of

completion and the estimated costs necessary to make the sale

Cost should include all:

costs of purchase (including taxes, transport, and handling) net of trade discounts received

costs of conversion (including fixed and variable manufacturing overheads) and

other costs incurred in bringing the inventories to their present location and condition


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Measurement of Inventories-Initial Measurement

Specific identification of costs is inappropriate when there are large numbers of items of inventory

that are ordinarily interchangeable. In such circumstances cost formulas deem appropriate in

determining the cost of inventories:

First-in, First-out formula [FIFO]: The FIFO formula assumes that the items of inventory that were purchased or produced first are sold first, and consequently the items remaining in inventory at the end of the period are those most recently purchased or produced.

Weighted average cost formula: Under the weighted average cost formula, the cost of each item is determined from the weighted average of the cost of similar items at the beginning of a period and the cost of similar items purchased or produced during the period.


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Assignment of cost


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• specific costs are attributed to the specific individual items of inventory Inventories that are not

interchangeable(identical or similar)

• IAS 2 allows the FIFO or weighted average cost formulas. [IAS 2.25] The LIFO formula, which had been allowed prior to the 2003 revision of IAS 2, is no longer allowed.

Inventories that are interchangeable

Measurement of Inventories

Subsquent measurment

Inventories shall be measured at the lower of cost and net realisable value (NRV).

The cost of inventories may not be recoverable

- if those inventories are damaged,

- if they have become wholly or partially obsolete,

- if their selling price have declined or

- if the estimated costs of completion or the estimated costs

to be incurred to make the sale have increased.

The practice of writing inventories down below cost to net realisable value is consistent with the

the view, that assets should not be carried in excess of amounts expected to be realised from their

sale or use.

NRV =estimated selling price in the ordinary course of business- estimated costs of completion

and the estimated costs necessary to make the sale


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Similarities and Differences to US GAAP


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a) Lower of Cost or net realisable Value (IFRS) vs. Lower of cost or Market/LCM (US GAAP)

US GAAP:

Cost ‘Market‘

(*)

Lower of cost or ‘market‘

IFRS:

NRV (upper limit)

Base principle:

replacement cost

NRV ./. normal profit

margin (lower limit)

NRV Cost

Lower of cost and NRV

(*) market is defined as the ‘median’

of the three presented values

III. Similarities and Differences to US GAAP

b) Illustrative Example


9/4/2014 99

QUESTION (A):

How should 100 monitors on stock [e.g. vendor equipment] be measured on the 30th of

September, 2010 under US GAAP and IFRS accounting policies ?

Price per unit in US $

Cost of

purchase

Replacement

cost

Est.

selling

price

Est. cost to

make the

sale

NRV Profit

margin

NRV ex

profit

margin

420 390 450 50 400 30 370

Answer


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ANSWER (A):

US GAAP =

IFRS =

Price per unit in US $

Cost of

purchase

Replacement

cost

Est.

selling

price

Est. cost to

make the

sale

NRV Profit

margin

NRV ex

profit

margin

420 390 450 50 400 30 370

39,000 USD [390 $ x 100 units]

40,000 USD [400 $ x 100 units]

Brainstorming as per IFRS

A company has inventory on hand at the end of the reporting period as follows: At what amount inventory

will be stated in financial statement.


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Units Raw

material

cost $

Production

overhead $

Selling

cost $

Expected

Selling

price

Item

A

300 160 15 12 185

Item

B

250 50 10 10 75

Units cost $ NRV Lower Total

Item

A

300 175 173 173 51,900

Item

B

250 60 65 60

15,000

Write down to NRV and expenses recognisation

Any write-down to NRV should be recognised as an expense in the period in which the write-down occurs.

Any reversal should be recognised in the income statement in the period in which the reversal occurs

Expense recognition

When inventories are sold and revenue is recognised, the carrying amount of those inventories is

recognised as an expense (often called cost-of-goods-sold).

Any write-down to NRV and any inventory losses are also recognised as an expense when they occur.


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Disclosure

Disclosure

accounting policy for inventories

carrying amount, generally classified as merchandise, supplies, materials, work in progress, and finished

goods. The classifications depend on what is appropriate for the entity

carrying amount of any inventories carried at fair value less costs to sell

amount of any write-down of inventories recognised as an expense in the period

amount of any reversal of a write-down to NRV and the circumstances that led to such reversal

cost of inventories recognised as expense (cost of goods sold). etc


9/4/2014

Unilever Report


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Section 3 - Presentation of additional disclosure

Presentation of published financial statements

Reporting financial performance

EPS

Related party disclosures and segment reporting

Reporting for small and medium sized entities


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IAS 1 - Presentation of Financial Statements

Financial statements are a structured representation of the financial position and financial performance of an entity.

Scope and Objective

Entities shall apply this standard when preparing and presenting financial statements for general purposes in accordance with IFRS. The requirements from this standard shall be applied in both separate and consolidated financial statements

The objective of this standard is to enhance the quality and comparability of financial statements by: – Setting minimum requirements for the presentation of primary statements – Setting minimum requirements for the notes accompanying the financial statements

In order to meet the objective prescribed in the standard, financial statements shall include information

about the entity’s:

– Assets

– Liabilities

– Equity

– Income and Expenses, Gains and Losses

– Cash Flows

– Contributions by and distributions to owners (Shareholder equity.)


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Set of Financial Statements

Which Financial Statements are required to be prepared by the entity?

1. Statement of financial position as at the end of the period

2. Statement of Total comprehensive income for the period

3. Statement of changes in equity for the period

4. Statement of cash flows for the period

5. Notes, comprising a summary of significant accounting policies and other explanatory information

6. comparative information prescribed by the standard

* An entity may use titles for the statements other than those stated above


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Snap shot of Comprehensive income as a single statement


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OCI: Presentation in separate statements


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Other comphensive income


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General Features Explanation

Fair Presentation and

Compliance

An entity whose financial statements are compliant with IFRS shall explicitly state this situation in

the notes. Financial statements should not be describe as compliant if they do not comply with all

the requirements.

Going Concern

If management has significant concerns about the entity's ability to continue as a going concern,

the uncertainties must be disclosed.

If management concludes that the entity is not a going concern, the financial statements should

not be prepared on a going concern basis, in which case IAS 1 requires a series of disclosures.

Consistency

The presentation and classification of items in the financial statements shall be retained from one

period to the next unless a change is justified either by a change in circumstances or a

requirement of a new IFRS.

Materiality and

Aggregation

Each material class of similar items must be presented separately in the financial statements.

Dissimilar items may be aggregated only if the are individually immaterial and provide specific

disclosures required.

Offsetting

Assets and liabilities, and income and expenses, shall not be offset unless required or permitted

by an IFRS.

Measuring assets net of valuation allowances is not offsetting.

Reporting Period

An entity shall present a complete set of financial statements (including comparative

information) at least annually.

If the annual reporting period changes and financial statements are prepared for a different

period, the entity must disclose the reason for the change and a warning about problems of

comparability.

Requirements

Minimum line items

Minimum line items

The minimum line items to be included on the face of the statement of financial position are: [IAS 1.54]

(a)property, plant and equipment(b)investment property(c)intangible assets(d)financial assets (excluding

amounts shown under (e), (h), and (i))(e)investments accounted for using the equity method(f)biological

assets(g)inventories(h)trade and other receivables(i)cash and cash equivalents(j)assets held for

sale(k)trade and other payables(l)provisions(m)financial liabilities (excluding amounts shown under (k)

and (l))(n)current tax liabilities and current tax assets, as defined in IAS 12(o)deferred tax liabilities and

deferred tax assets, as defined in IAS 12(p)liabilities included in disposal groups(q)non-controlling

interests, presented within equity(r)issued capital and reserves attributable to owners of the parent.

Format of statement

IAS 1 does not prescribe the format of the statement of financial position. Assets can be presented

current then non-current, or vice versa, and liabilities and equity can be presented current then non-

current then equity, or vice versa. A net asset presentation (assets minus liabilities) is allowed


9/4/2014



IFRS 8 — Operating Segments

Overview

IFRS 8 Operating Segments requires particular classes of entities (essentially those with publicly traded

securities) to disclose information about their operating segments, products and services, the

geographical areas in which they operate, and their major customers.

Scope

IFRS 8 applies to the separate or individual financial statements of an entity (and to the consolidated

financial statements of a group with a parent):

whose debt or equity instruments are traded in a public market or

that files, or is in the process of filing, its (consolidated) financial statements with a securities commission

or other regulatory organisation for the purpose of issuing any class of instruments in a public market

[IFRS 8.2]

However, when both separate and consolidated financial statements for the parent are presented in a

single financial report, segment information need be presented only on the basis of the consolidated

financial statements


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Operating segments

IFRS 8 defines an operating segment as follows.

An operating segment is a component of an entity:

that engages in business activities from which it may earn revenues and incur expenses (including

revenues and expenses relating to transactions with other components of the same entity)

whose operating results are reviewed regularly by the entity's chief operating decision maker to make

decisions about resources to be allocated to the segment and assess its performance and

for which discrete financial information is available

Reportable segments

Reportable segments are operating segments or aggregations of operating segments that meet specified

criteria

its reported revenue, from both external customers and intersegment sales or transfers, is 10 per cent or

more of the combined revenue, internal and external, of all operating segments, or

the absolute measure of its reported profit or loss is 10 per cent or more of the greater, in absolute

amount, of (i) the combined reported profit of all operating segments that did not report a loss and (ii) the

combined reported loss of all operating segments that reported a loss, or

its assets are 10 per cent or more of the combined assets of all operating segments.


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Notes

Two or more operating segments may be aggregated into a single operating segment if aggregation is

consistent with the core principles of the the standard, the segments have similar economic characteristics

and are similar in various prescribed respects.

If the total external revenue reported by operating segments constitutes less than 75 per cent of the

entity's revenue, additional operating segments must be identified as reportable segments (even if they do

not meet the quantitative thresholds set out above) until at least 75 per cent of the entity's revenue is

included in reportable segments


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Unilever Group


9/4/2014

Unilever report


9/4/2014

Unilever Report


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Disclosure requirements

Required disclosures include:

general information about how the entity identified its operating segments and the types of products and

services from which each operating segment derives its revenues [IFRS 8.22]

judgements made by management in applying the aggregation criteria to allow two or more operating

segments to be aggregated


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EPS


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ifrs slide2

Education