International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards
Page 970
Ch. 30, 11
Ch. 21, 5.7.1
reverse acquisitions, Ch. 9, 14, 14.8, 14.9
qualifying assets held by joint arrangements, Ch. 21, 5.7.2
subsequent measurement and accounting, Ch. 9, 13
in hyperinflationary economies, Ch. 21, 5.6
tax deductions for acquisition costs, Ch. 29, 12.4
interim financial reporting, Ch. 37, 9.1.4
tax deductions for replacement share-based payment awards in
suspension of, Ch. 21, 6.2
a business combination, Ch. 29, 12.2
impairment considerations, Ch. 21, 6.2.1
‘Business model’ assessment, financial assets, Ch. 44, 5
Carried interests/party, extractive industries, Ch. 39, 6.1
anticipated capital expenditure, Ch. 44, 5.6
in E&E phase, Ch. 39, 6.1.2
applying in practice, Ch. 44, 5.6, 10.2.2
financing-type, Ch. 39, 6.1.3
consolidated and subsidiary accounts, Ch. 44, 5.5
purchase/sale-type, Ch. 39, 6.1.4
credit-impaired financial assets in a hold to collect business
Carve-out financial statements. See Combined financial statements
model, Ch. 44, 5.6
Cash and cash equivalents, Ch. 36, 3. See also IAS 7
credit risk management activities, Ch. 44, 5.6
components of, Ch. 36, 3.2
hedging activities in a hold to collect business model, Ch. 44, 5.6
bank overdrafts, Ch. 36, 3.2.4
hold to collect contractual cash flows, Ch. 44, 5.2
demand deposits, Ch. 36, 3.2.1
hold to collect contractual cash flows and selling financial
investments with maturities greater than three months,
assets, Ch. 44, 5.3
Ch. 36, 3.2.3
impact of sales on the assessment, Ch. 44, 5.2.1
money market funds (MMF), Ch. 36, 3.2.2
level at which the business model assessment should be
short-term investments, Ch. 36, 3.2.1
applied, Ch. 44, 5.1
restrictions on the use of, Ch. 36, 3.4
liquidity portfolio for every day liquidity needs, Ch. 44, 5.6
statement of financial position items, reconciliation with,
liquidity portfolio for stress case scenarios, Ch. 44, 5.6
Ch. 36, 3.3
loans that are to be sub-participated, Ch. 44, 5.6
Cash flow hedges, Ch. 49, 1.5, 5.2, 7.2; Ch. 50, 4.3.3
opportunistic portfolio management, Ch. 44, 5.6
acquisitions, Ch. 49, 7.2.4
other business models, Ch. 44, 5.4
all-in-one hedges, Ch. 49, 5.2.1
portfolio managed on a fair value basis, Ch. 44, 5.6
novations due to central clearing regulations, Ch. 49, 8.3.2.A
replication portfolios, Ch. 44, 5.6
acquisition or disposal of subsidiaries, Ch. 49, 7.2.4
sales to manage concentration risk, Ch. 44, 5.6
discontinuation, Ch. 49, 8.3.2
securitisation, Ch. 44, 5.6
entities applying IAS 39, Ch. 49, 14; Ch. 50, 4.2.4
splitting portfolios, Ch. 44, 5.6
of firm commitments, Ch. 49, 5.2.2
transferred financial assets that are not derecognised, Ch. 44,
of foreign currency monetary items, Ch. 49, 5.2.3
5.2.2
hypothetical derivatives, Ch. 49, 7.4.4.A
Buying reinsurance, gains/losses on, Ch. 51, 7.2.6.C
measuring ineffectiveness, Ch. 49, 7.4.4.E
By-products, extractive industries, Ch. 39, 14.2.1, 16.1.3.D
of a net position, Ch. 49, 2.5.3
Call options, Ch. 7, 6.1, 6.3, 6.4, 6.6; Ch. 30, 8.2.1; Ch. 43, 11.2
presentation, Ch. 49, 9.1
over non-controlling interests, Ch. 7, 6.1, 6.3, 6.4, 6.6;
reclassification of gains and losses, Ch. 49, 7.2.2
Ch. 9, 8.5
Cash-generating units (CGUs). See also Impairment of assets;
call options only, Ch 7, 6.1
Value in use (VIU)
call and put options entered into in relation to existing
active markets, identifying, Ch. 20, 3.2
non-controlling interests, Ch 7, 6.4
carrying amount of, identifying, Ch. 20, 4
combination of call and put options, Ch 7, 6.3
dividing the entity into, Ch. 20, 3
separate financial statements, Ch 7, 6.6
estimating the future pre-tax cash flows of, Ch. 20, 7.1
purchased call option, Ch. 43, 11.2.1
and goodwill impairment, Ch. 20, 8
share-based payment, Ch. 30, 8.2.1
impairment losses, Ch. 20, 11.2
intrinsic value and time value, Ch. 30, 8.2.2
reversal of impairments, Ch. 20, 11.4.
written call option, Ch. 43, 11.2.2
Cash-settled share-based payment transaction, Ch. 30, 9; Ch. 32,
Callable equity instruments, Ch. 42, 5.1.10
2.2.1
Canada, IFRS adoption in, Ch. 1, 4.3.2
See also Equity-settled share-based payment transaction; IFRS
Capital commitments, Ch. 37, 4.3.5
2; Share-based payment transactions
Capital, disclosures about, Ch. 3, 5.4; Ch. 50, 5.6.3
accounting treatment, Ch. 30, 9.3
general capital disclosures, Ch. 3, 5.4.1
application of the accounting treatment, Ch. 30, 9.3.2
puttable financial instruments classified as equity, Ch. 3, 5.4.2
market conditions and non-vesting conditions, Ch. 30,
9.3.2.D
Capital Markets Advisory Committee, Ch. 1, 2.9
modification, cancellation and settlement, Ch. 30,
Capitalisation of borrowing costs, Ch. 21, 1–7. See also IAS 23
9.3.2.E
cessation of capitalisation, Ch. 21, 6.3
non-market vesting conditions, Ch. 30, 9.3.2.C
commencement, Ch. 21, 6.1
periodic allocation of cost, Ch. 30, 9.3.2.B
disclosure requirements, Ch. 21, 7
vesting period determination, Ch. 30, 9.3.2.A
Index
109
basic accounting treatment, Ch. 30, 9.3.1
Commodity broker-traders, Ch. 41, 4.2.2
modification to or from equity-settlement, Ch. 30, 9.4
Commodity, equity-linked interest and principal payments,
cash-settled award modified to equity-settled award,
Ch. 42, 5.1.6
Ch. 30, 9.4.2
Commodity price assumptions, Ch. 39, 11.4.3, 11.5.2
equity-settled award modified to cash-settled award,
Common control business combinations, Ch. 10, 1–6. See also
Ch. 30, 9.4.1
Group reorganisations
scope of requirements, Ch. 30, 9.1
accounting for, Ch. 10, 3, 5
transactions with equity and cash alternatives, Ch. 30, 10.1,
application of the acquisition method under IFRS 3,
10.2, 10.3
Ch. 10, 3.2
what constitutes a cash-settled award?, Ch. 30, 9.2
application of the pooling of interests method, Ch. 10, 3.3
arrangements to sell employees’ shares including ‘broker
acquisition of non-controlling interest as part of a
settlement,’ Ch. 30, 9.2.4
common control business combination, Ch. 10,
economic compulsion for cash settlement (including
3.3.5
unlisted company schemes), Ch. 30, 10.2.1.A
carrying amounts of assets and liabilities, Ch. 10, 3.3.2
formal and informal arrangements for the entity to
equity reserves and history of assets and liabilities
purchase illiquid shares or otherwise settle in cash,
Ch. 30, 9.2.1
general requirements, Ch. 10, 3.3.1
market purchases of own equity following equity-
restatement of financial information for periods prior
settlement of award, Ch. 30, 9.2.3
to the date of the combination, Ch. 10, 3.3.3
market purchases of own equity to satisfy awards, Ch. 30,
pooling of interests method/acquisition method, Ch. 10,
9.2.2
3, 3.1
Catastrophe provisions, Ch. 51, 7.2.1
transfers of associates/joint ventures, Ch. 10, 5
CCIRS. See Cross-currency interest rate swaps (CCIRS)
accounting for transactions under common control (or
CCP. See Central clearing party (CCP)
ownership), Newco, Ch. 10, 4
Cedant, Ch. 51, 2.2.1
inserting a new intermediate parent within an existing
Central Bank of the Russian Federation (CBR), Ch. 1, 4.2.2
group, Ch. 10, 4.3
setting up a new top holding company, Ch. 10, 4.2
Chief operating decision maker (CODM), Ch. 32, 1.3, 3.1
transactions effected through issuing equity interests,
China Accounting Standards Committee (CASC), Ch. 1, 4.4.1.A
Ch. 10, 4.2.1
China, IFRS adoption in, Ch. 1, 4.4.1
transactions involving consideration other than equity
Clawback conditions, share-based payment, Ch. 30, 3.1.1
interests, Ch. 10, 4.2.2
Clean-up call options, Ch. 48, 4.2.7
transferring businesses outside an existing group using a
Client money, Ch. 48, 3.7
Newco, Ch. 10, 4.4
future developments, Ch. 10, 6
‘Closely related,’ meaning of, Ch. 42, 5
group reorganisations, Ch. 10, 1.2
‘Collar’ put and call options, Ch. 48, 5.4.3.C
IFRS 3 scope exclusion, Ch. 10, 2
Collateral, Ch. 47, 5.8.1; Ch. 48, 5.5.2
common control by an individual/group of individuals,
Collectability, revenue IFRS 15, Ch. 28, 4.1.6
Ch. 10, 2.1.1
assessing for a portfolio of contracts, Ch. 28, 4.1.4.A
transitory control, Ch. 10, 2.1.2
determining when to reassess, Ch. 28, 4.1.6.B
scope of, Ch. 10, 1.3
Combined financial statements, Ch. 6, 2.2.6
Common control/group transactions, individual financial
common control, Ch. 6, 2.2.6.A
statements, Ch. 8, 4
preparation of, Ch. 6, 2.2.6.C
application of the principles in practice, Ch. 8, 4.4
purpose and users, Ch. 6, 2.2.6.B
acquiring and selling businesses–transfers between
reporting entity in, Ch. 6, 2.2.6.E
subsidiaries, Ch. 8, 4.4.2
‘special-purpose’ vs ‘general-purpose’, Ch. 6, 2.2.6.D
accounting for a business that has been acquired, Ch.
Comissão de Valores Mobiliários’ (CVM), Ch. 1, 4.3.3
8, 4.4.2.B
Commencement of lease (IAS 17), Ch. 23, 3.4.1
accounting for transactions if net assets are not a
Committee for Mineral Reserves International Reporting
business, Ch. 8, 4.4.2.D
Standards (CRIRSCO), Ch. 39, 1.3
purchase and sale of a business for cash/equity not
International Reporting Template, Ch. 39, 2.3.1
representative of fair value of business, Ch. 8, 4.4.2.C
reporting terminology, Ch. 39, 2.3.1.B
financial instruments within the scope of IFRS 9 (or IAS
scope, Ch. 39, 2.3.1.A
39), Ch. 8, 4.4.5
financial guarantee contracts, parent guarantee issued
Commodity-based contracts, extractive industries
on behalf of subsidiary, Ch. 8, 4.4.5.B
definition of commodity contract, Ch. 39, 12.6.1
interest-free or non-market interest rate loans, Ch. 8,
forward-selling to finance development, Ch. 39, 12.6
4.4.5.A
modifications to, Ch. 39, 12.10
incurring expenses and settling liabilities without
multi-period, Ch. 39, 12.15
recharges, Ch. 8, 4.4.4
principal vs. agent considerations in, Ch. 39, 12.11
transactions involving non-monetary assets, Ch. 8, 4.4.1
110 Index
Common control/group transactions, individual financial
through exercising an embedded call option, Ch. 43,
statements —contd
6.3.3.B
application of the principles in practice —contd
through negotiation with bondholders, Ch. 43, 6.3.3.A
transactions involving non-monetary assets —contd
modification, Ch. 43, 6.3.4
acquisition of assets for shares, Ch. 8, 4.4.1.C
with multiple embedded derivatives, statement of financial
contribution and distribution of assets, Ch. 8, 4.4.1.D
position, Ch. 50, 4.4.7
parent exchanges PP&E for a non-monetary asset of
‘split accounting’, Ch. 43, 6.2
the subsidiary, Ch. 8, 4.4.1.B
initial recognition of a compound instrument, Ch. 43, 6.2
sale of PP&E from parent to subsidiary for an amount
accounting for the equity component, Ch. 43, 6.2.1
of cash not representative of fair value of asset,
temporary differences arising from, Ch. 43, 6.2.2
Ch. 8, 4.4.1.A
treatment by holder and issuer contrasted, Ch. 43, 6.1.1
transfers between subsidiaries, Ch. 8, 4.4.1.E
Comprehensive income, Ch. 3, 3.2
transfers of businesses between parent and subsidiary,
Comprehensive income statement. See Statement of
Ch. 8, 4.4.3
comprehensive income
distributions of businesses without consideration,
Concentrations of risk, Ch. 50, 5.6.1; Ch. 51, 1.12.4
Ch. 8, 4.4.3.A
legal merger of parent and subsidiary, Ch. 8, 4.4.3.B
Conceptual Framework for Financial Reporting 2010, Ch. 2, 2
subsidiary as a surviving entity, Ch. 8, 4.4.3.B
Conceptual framework, IASB’s, Ch. 1, 2.5, 4.5; Ch. 2, 1–12. See
cost of investments acquired in, Ch. 8, 2.1.1.B
also General purpose financial reporting
disclosures, Ch. 8, 4.5
contents, Ch. 2, 3.1
measurement, Ch. 8, 4.3
derecognition, Ch. 2, 8.3
fair value in intra-group transactions, Ch. 8, 4.3.1
development, Ch. 2, 2
recognition, Ch. 8, 4.2
discussion paper on, Ch. 2, 1
Comparative information, Ch. 3, 2.4; Ch. 4, 4; Ch. 5, 6.1
enhancing qualitative characteristics, Ch. 2, 5.2
interim financial statements, Ch. 37, 5.1
applying, Ch. 2, 5.2.5
short-term exemptions from restatement of (IFRS 9), Ch. 5,
comparability, Ch. 2, 5.2.1
5.23
timeliness, Ch. 2, 5.2.3
treatment on cessation of classification as held for sale, Ch. 4,
understandability, Ch. 2, 5.2.4
4.2
verifiability, Ch. 2, 5.2.2
treatment on initial classification as held for sale
effective date, Ch. 2, 2
statement of comprehensive income, Ch. 4, 4.1.1
financial capital maintenance, Ch. 2.11.1
financial statements, Ch. 2.6.1
Compensation, related-party disclosures, Ch. 35. 2.6.1
assets, Ch. 2.7.2
Compound financial instruments, Ch. 43, 6
consolidated
and unconsolidated, Ch. 2.6.2.1
background, Ch. 43, 6.1
elements, Ch. 2.7
common forms of convertible bonds, Ch. 43, 6.6
equity, Ch. 2.7.4
bond convertible into fixed percentage of equity, Ch. 43,
executory contracts, Ch. 2.7.1.2
6.6.6
going concern assumption, Ch. 2.6.1.4
contingent convertible bond, Ch. 43, 6.6.2
income and expenses, Ch. 2.7.5
convertible bonds with down round or ratchet features,
liabilities, Ch. 2.7.3
Ch. 43, 6.6.7
objective and scope, Ch. 2.6.1.1
convertibles with cash settlement at the option of the
perspective adopted in financial statements, Ch. 2.6.1.3
issuer, Ch. 43, 6.6.5
reporting period and comparative information,
foreign currency convertible bond, Ch. 43, 6.6.4
Ch. 2.6.1.2
functional currency bond convertible into a fixed number
substance of contractual rights and contractual obligations,
of shares, Ch. 43, 6.6.1
Ch. 2.7.1.3
mandatorily convertible bond, Ch. 43, 6.6.3
unit of account, Ch. 2.7.1.1
components of a compound instrument, Ch. 43, 6.4
fundamental qualitative characteristics, Ch. 2, 5.1
compound instruments with embedded derivatives,
applying, Ch. 2, 5.1.3
Ch. 43, 6.4.2
cost constraint, Ch. 2, 5.3
issuer call option-‘closely related’ embedded
faithful representation, Ch. 2, 5.1.2
derivatives, Ch. 43, 6.4.2.A
relevance (including materiality), Ch. 2, 5.1.1
determining, Ch. 43, 6.4.1
general purpose financial reporting, Ch.2.4
conversion
economic resources, Ch.2.4.2
at maturity, Ch. 43, 6.3.1
objective and usefulness, Ch.2.4.1.1
before maturity, Ch. 43, 6.3.2
limitations, Ch.2.4.1.2
accounting treatment, Ch. 43, 6.3.2.B
management commentary, Ch. 2, 12
‘fixed stated principal’ of a bond, Ch. 43, 6.3.2.A
measurement, Ch. 2, 9
embedded derivatives, Ch. 43, 6.3.2.C
bases, Ch. 2, 9.1
deferred tax, initial recognition exception, Ch. 29, 7.2.8
cash-flow-based measurement techniques, Ch. 2, 9.5
early redemption/repurchase, Ch. 43, 6.3.3
equity, Ch. 2, 9.4
Index
111
factors to consider in selecting measurement bases, Ch. 2,
Consignment stock and sale and repurchase agreements, Ch. 22,
9.3
2.3.1F
information provided by different measurement bases,
Consistency in application of IFRS, Ch. 1, 5
Ch. 2, 9.2