resulting in carrying amount of an investment exceeding
inputs, ingredients, substitutes and other proxy pricing
consolidated net assets, Ch. 8, 2.4.1.B
mechanisms, Ch. 42, 5.2.2
distributions of noncash assets to owners (IFRIC 17),
decision tree, Ch. 51, 4
Ch. 7, 3.7; Ch. 8, 2.4.2
derivative and, Ch. 42, 4
dividend exceeding total comprehensive income, Ch. 8,
exposures to market risk from, Ch. 51, 11.2.7
2.4.1
extractive industries, Ch. 39, 13.2
returns of capital, Ch. 8, 2.4.1.C
financial instrument hosts, Ch. 42, 5.1
from subsidiaries, joint ventures or associates, Ch. 8, 2.4.1
callable equity instruments, Ch. 42, 5.1.10
payable on shares classified as financial liabilities, Ch. 21, 5.5.4
commodity-and equity-linked interest and principal
payments, Ch. 42, 5.1.6
Divisions, foreign exchange, Ch. 15, 4.4
convertible and exchangeable debt instruments, Ch. 42, 5.1.8
Downstream activities, extractive industries, Ch. 39, 1.6
credit-linked notes, Ch. 42, 5.1.7
‘Downstream’ transactions elimination, equity accounted
foreign currency monetary items, Ch. 42, 5.1.1
investments, Ch. 11, 7.6.1
inflation-linked debt instruments, Ch. 42, 5.1.5
Downward valuations of property, plant and equipment,
interest rate floors and caps, Ch. 42, 5.1.4
reversals of, Ch. 18, 6.3
interest rate indices, Ch. 42, 5.1.2
DP. See under Discussion Paper
puttable instruments, Ch. 42, 5.1.9
DPF. See Discretionary participation feature (DPF)
term extension and similar call, put and prepayment
options in debt instruments, Ch. 42, 5.1.3
Due Process Handbook, Ch. 1, 2.6
foreign currency embedded derivatives, Ch. 39, 13.2.1
Dynamic hedging strategies, Ch. 49, 6.3.2
gains and losses recognised in profit/loss, Ch. 50, 7.1.5
Earnings-based contingencies (EPS), Ch. 33, 6.4.6.A
gas markets, development of, Ch. 39, 13.2.4
Earnings per share (EPS), Ch. 33, 1–8. See also Diluted EPS;
hedging instruments, Ch. 49, 3.2.3
IAS 33
and host contracts, identifying the terms, Ch. 42, 6
basic EPS, Ch. 33, 3
embedded non-option derivatives, Ch. 42, 6.1
earnings, Ch. 33, 3.1
embedded option-based derivative, Ch. 42, 6.2
number of shares, Ch. 33, 3.2
multiple embedded derivatives, Ch. 42, 6.3
definitions, Ch. 33, 1.1
initial measurement, Ch. 45, 3.5
disclosure, Ch. 33, 7.3
insurance contracts, Ch. 42, 5.4
interim financial reporting, Ch. 37, 9.8
leases, Ch. 42, 5.3
numerator, matters affecting, Ch. 33, 5
contingent rentals based on related sales, Ch. 42, 5.3.3
earnings, Ch. 33, 5.1
contingent rentals based on variable interest rates, Ch. 42,
other bases, Ch. 33, 5.5
5.3.4
participating equity instruments, Ch. 33, 5.4
foreign currency derivatives, Ch. 42, 5.3.1
tax deductible dividends on, Ch. 33, 5.4.1
inflation-linked features, Ch. 42, 5.3.2
preference dividends, Ch. 33, 5.2
long-term supply contracts, Ch. 39, 13.2.3
retrospective adjustments, Ch. 33, 5.3
provisionally priced contracts, Ch. 39, 13.2.2
outstanding ordinary shares, changes in, Ch. 33, 4
reassessment, Ch. 42, 7
presentation, Ch. 33, 7.1
acquisition of contracts, Ch. 42, 7.2
restatement, Ch. 33, 7.2
business combinations, Ch. 42, 7.3
reverse acquisitions, business combinations, Ch. 9, 14.5;
IFRIC 9, Ch. 42, 7.1
Ch. 33, 4.6.2
remeasurement issues arising from, Ch. 42, 7.4
EBTs. See Employee benefit trusts (EBTs)
unit-linked features, Ch. 51, 4.1
Economic relationship, hedge accounting, Ch. 49, 6.4.1
Embedded leases, extractive industries, Ch. 39, 17.1
EDs. See Exposure Drafts (EDs)
Embedded value (EV) of insurance contract, Ch. 51, 1.4.3
Effective interest method, Ch. 46, 3
Emerging Economies Group, Ch. 1, 2.9
Effective interest rate (EIR), Ch. 46, 3.1
Emission rights, Ch. 9, 5.5.2.E; Ch. 17, 11.2
Effective tax rate, Ch. 29, 14.2
acquired in a business combination, Ch. 9, 5.5.2.E; Ch. 17,
changes in during the year, Ch. 37, 9.5.2
11.2.5
Embedded derivatives, Ch. 42, 4–7; Ch. 51, 4
amortisation, Ch. 17, 11.2.4
cash flows, Ch. 50, 5.4.2.E
by brokers and traders, accounting for, Ch. 17, 11.2.7
characteristics, Ch. 51, 4
impairment testing, Ch. 17, 11.2.4
in commodity arrangements, Ch. 39, 12.8
sale of, Ch. 17, 11.2.6
compound financial instruments with multiple, Ch. 50, 4.4.7
Emissions trading schemes, intangible assets, Ch. 17, 11.2
compound instruments with, Ch. 43, 6.4.2
accounting for emission rights by brokers and traders, Ch. 17,
contracts for the sale of goods or services, Ch. 42, 5.2
11.2.7
Index
121
amortisation and impairment testing of emission rights,
‘End-user’ contracts, Ch. 41, 4.2.4
Ch. 17, 11.2.4
Enhanced Disclosure Task Force (EDTF), Ch. 50, 9.2
emission rights acquired in a business combination, Ch. 17,
Entitlements method, oil and gas sector, Ch. 39, 12.4.1
11.2.5
Entity’s functional currency determination, Ch. 15, 4
government grant approach, Ch. 17, 11.2.3
branches and divisions, Ch. 15, 4.4
green certificates compared to, Ch. 27, 6.6
documentation of judgements made, Ch. 15, 4.5
IFRIC 3, Ch. 17, 11.2.1
intermediate holding companies/finance subsidiaries, Ch. 15, 4.2
liabilities associated with, Ch. 27, 6.5
investment holding companies, Ch. 15, 4.3
net liability approaches, Ch. 17, 11.2.2
sale of emission rights, Ch. 17, 11.2.6
EPS. See Earnings per share
Employee benefit(s), Ch. 31, 1–16. See also Defined benefit
Equalisation provisions, Ch. 51, 7.2.1
plans; Defined contribution plans; IAS 19; Long-term
Equity instruments, Ch. 8, 2.1.1.A; Ch. 41, 2.2.7, 3.6
employee benefits, Multi-employer plans; Short-term
classification, Ch. 44, 2.2
employee benefits
contracts to issue equity instruments, Ch. 43, 4.4.2
costs of administering, Ch. 31, 11
contracts settled by delivery of the entity’s own equity
death-in-service benefits, Ch. 31, 3.6
instruments, Ch. 43, 5
defined benefit plans, Ch. 31, 5–11
contracts accounted for as equity instruments, Ch. 43, 5.1
defined contribution plans, Ch. 31, 4
comparison with IFRS 2–share-based payment,
disclosure requirements, Ch. 31, 15
Ch. 43, 5.1.1
defined benefit plans, Ch. 31, 15.2
contracts to acquire non-controlling interests, Ch. 43,
defined contribution plans, Ch. 31, 15.1
5.3.2
multi-employer plans, Ch. 31, 15.2.4
contracts to purchase own equity during ‘closed’ or
future developments, Ch. 31, 16
‘prohibited’ periods, Ch. 43, 5.3.1
insured benefits, Ch. 31, 3.2
exchange of fixed amounts of equity (equity for
interim financial reporting, Ch. 37, 9.3
equity), Ch. 43, 5.1.4
employer payroll taxes and insurance contributions,
number of equity instruments issued adjusted for
Ch. 37, 9.3.1
capital restructuring or other event, Ch. 43, 5.1.2
pensions, Ch. 37, 9.3.3
stepped up exercise price, Ch. 43, 5.1.3
vacations, holidays and other short-term paid absences,
contracts accounted for as financial assets/liabilities,
Ch. 37, 9.3.4
Ch. 43, 5.2
year-end bonuses, Ch. 37, 9.3.2
derivative financial instruments with settlement
long-term employee benefits, Ch. 31, 13
options, Ch. 43, 5.2.8
multi-employer plans, Ch. 31, 3.3
fixed amount of cash denominated in a currency other
objective of IAS 19, Ch. 31, 2.1
than entity’s functional currency, Ch. 43, 5.2.3
pensions, Ch. 31, 3
rights issues with a price fixed in a currency other
plans that would be defined contribution plans, Ch. 31, 3.5
than entity’s functional currency, Ch. 43, 5.2.3.A
post-employment benefits, Ch. 31, 3
fixed amount of cash determined by reference to share
scope of IAS 19, Ch. 31, 2.2
price Ch. 43, 5.2.6
short-term employee benefits, Ch. 31, 12
fixed number of equity instruments for variable
state plans, Ch. 31, 3.4
consideration, Ch. 43, 5.2.2
termination benefits, Ch. 31, 14
fixed number of equity instruments with variable
Employee benefit plans, Ch. 6, 2.2.2; Ch. 13, 2.2.3.A
value, Ch. 43, 5.2.5
Employee benefit trusts (EBTs) and similar arrangements,
instrument with equity settlement alternative of
Ch. 30, 12.3
significantly higher value than cash settlement
accounting for, Ch. 30, 12.3.2
alternative, Ch. 43, 5.2.4
awards satisfied by shares purchased by, or issued to, an EBT,
net-settled contracts over own equity, Ch. 43, 5.2.7
Ch. 30, 12.3.3
variable number of equity instruments, Ch. 43, 5.2.1
background, Ch. 30, 12.3.1
gross-settled contracts for the sale or issue of the entity’s
EBT as extension of parent, Ch. 30, 12.4.2.B, 12.5.2.B
own equity instruments, Ch. 43, 5.4
financial statements of the EBT, Ch. 30, 12.3.5
liabilities arising from gross-settled contracts for the
financial statements of the parent, Ch. 30, 12.4.2, 12.5.2
purchase of the entity’s own equity instruments,
group share scheme illustrative examples
Ch. 43, 5.3
equity-settled award satisfied by fresh issue of shares,
contracts to acquire non-controlling interests, Ch. 43,
Ch. 30, 12.5
5.3.2
equity-settled award satisfied by market purchase of shares,
contracts to purchase own equity during ‘closed’ or
Ch. 30, 12.4
‘prohibited’ periods, Ch. 43, 5.3.1
separate financial statements of sponsoring entity, Ch. 30,
definition, Ch. 30, 2.2.1; Ch. 41, 2.1; Ch. 43, 3
12.3.4
determining fair value of, Ch. 14, 11.2; Ch. 30, 5.5
holder, Ch. 41, 3.6.2
Employee, definition, Ch. 30, 5.2.1
investments in, designated at fair value through OCI,
‘Empty’ subsidiaries, Ch. 48, 3.6.6
Ch. 47, 9
122 Index
Equity instruments —contd
transactions between the reporting entity and its
issued instruments, Ch. 41, 3.6.1; Ch. 43, 4.4.1
associates/joint ventures, Ch. 11, 7.6
unquoted equity instruments, transition provisions, Ch. 44,
contributions of non-monetary assets to an associate/a
10.2.7.C
joint venture, Ch. 11, 7.6.5
Equity method/accounting, Ch. 11, 7
commercial substance, Ch. 11, 7.6.5.A
application of the equity method, Ch. 11, 7
conflict between IAS 28 and IFRS 10, Ch. 11,
consistent accounting policies, Ch. 11, 7.8
7.6.5.C
date of commencement of equity accounting, Ch. 11, 7.3
practical application, Ch. 11, 7.6.5.B
discontinuing the use of the equity method, Ch. 11, 7.12
elimination of ‘upstream’ and ‘downstream’
deemed disposals, Ch. 11, 7.12.5
transactions, Ch. 11, 7.6.1
investment in associate becomes a joint venture (or
loans and borrowings between the reporting entity,
vice versa), Ch. 11, 7.12.3
Ch. 11, 7.6.3
investment in associate/joint venture becoming a
reciprocal interests, Ch. 11, 7.6.2
subsidiary, Ch. 11, 7.12.1
statement of cash flows, Ch. 11, 7.6.4
partial disposals of interests in associate/joint venture,
exemptions from applying the equity method, Ch. 11, 5.3
Ch. 11, 7.12.4
investments held in associates/joint ventures held by
retained investment in the former associate or joint
venture capital organisations, Ch. 11, 5.3
venture is a financial asset, Ch. 11, 7.12.2
application of IFRS 9 (or IAS 39) to exempt, Ch. 11,
distributions received in excess of the carrying amount,
5.3.2
Ch. 11, 7.10
designation of investments as ‘at fair value through
equity accounting and consolidation, comparison between,
profit or loss’, Ch. 11, 5.3.2.B
Ch. 11, 7.2
entities with a mix of activities, Ch. 11, 5.3.2.A
equity transactions in an associate’s/joint venture’s
investment entities exception, Ch. 11, 5.3.1
financial statements, Ch. 11, 7.11
former subsidiary that becomes an equity-accounted investee,
dividends/other forms of distributions, Ch. 11, 7.11.1
Ch. 7, 3.3.2, 7.1
effects of changes in parent/non-controlling interests in
conflict between IFRS 10 and IAS 28 (September 2014
subsidiaries, Ch. 11, 7.11.4
amendments not applied), Ch. 7, 3.3.2.A
equity-settled share-based payment transactions,
conflict between IFRS 10 and IAS 28 (September 2014
Ch. 11, 7.11.3
amendments applied), Ch. 7, 3.3.2.B, 7.1
issues of equity instruments, Ch. 11, 7.11, 7.11.2
determination of the fair value of the retained interest in a
impairment of investments in subsidiaries, associates and
former subsidiary that is an associate or joint venture,
joint ventures, Ch. 20, 12.4
Ch. 7, 3.3.2D
equity accounted investments and CGU’s, Ch. 20,
examples of accounting for sales or contributions to an
12.4.5
existing associate, Ch. 7, 3.3.2.C
equity accounted investments and goodwill for
presentation of comparative information for a former
impairment, Ch. 20, 12.4.6
subsidiary that becomes an investee for using the
indicators of impairment, Ch.
20, 12.4.3, 12.4.4
equity method, Ch. 7, 3.3.2.E
initial carrying amount of an associate/joint venture,
parents exempt from preparing consolidated financial
Ch. 11, 7.4
statements, Ch. 11, 5.1
cost-based approach, Ch. 11, 7.4.2.A
partial use of fair value measurement of associates, Ch. 11, 5.4
fair value (IFRS 3) approach, Ch. 11, 7.4.2.A
subsidiaries meeting certain criteria, Ch. 11, 5.2
following loss of control of an entity, Ch. 7, 3.3.2, 7.1,
Equity-settled share-based payment transactions, Ch. 30, 2.2.1,
3.2.1.B, 6.1; Ch. 11, 7.4.1, 7.6.5
4–8. See also Cash-settled share-based payment transactions;
piecemeal acquisition, Ch. 11, 7.4.2
IFRS 2; Share-based payment/transactions; Vesting, share-
existing associate that becomes a joint venture, or
based payment
vice versa, Ch. 11, 7.4.2.C
accounting treatment, summary, Ch. 30, 4.1
financial instrument becoming an associate/joint
allocation of expense, Ch. 30, 6
venture, Ch. 11, 7.4.2.A
overview, Ch. 30, 6.1
step increase in an existing associate/joint venture
accounting after vesting, Ch. 30, 6.1.3
without a change in status of the investee,
continuous estimation process of IFRS 2, Ch. 30, 6.1.1
Ch. 11, 7.4.2.B
vesting and forfeiture, Ch. 30, 6.1.2
loss-making associates/joint ventures, Ch. 11, 7.9
market conditions, Ch. 30, 6.3
non-coterminous accounting periods, Ch. 11, 7.7
non-vesting conditions, Ch. 30, 6.4
overview, Ch. 11, 7.1
vesting conditions other than market conditions, Ch. 30,
share of the investee, Ch. 11, 7.5
6.2
accounting for potential voting rights, Ch. 11, 7.5.1
‘graded’ vesting, Ch. 30, 6.2.2
cumulative preference shares held by parties other than
service conditions, Ch. 30, 6.2.1
the investor, Ch. 11, 7.5.2
variable exercise price, Ch. 30, 6.2.5
several classes of equity, Ch. 11, 7.5.3
variable number of equity instruments, Ch. 30, 6.2.4
where the investee is a group, Ch. 11, 7.5.5
variable vesting periods, Ch. 30, 6.2.3
where the reporting entity is a group, Ch. 11, 7.5.4
award modified to, or from, cash-settled, Ch. 30, 9.4
Index
123
cancellation, replacement and settlement, Ch. 30, 7.4
that reduces the number of equity instruments granted but
calculation of the expense on cancellation, Ch. 30, 7.4.3
maintains or increases the value of an award, Ch. 30,
cancellation and forfeiture, distinction between, Ch. 30,
International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards Page 974
