International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards
Page 981
measuring the goodwill allocated to CGUs/GCU
‘Graded’ vesting, Ch. 30, 6.2.2. See also Share-based payment
groups, Ch. 20, 8.1.3
transactions
disposal of operation within a CGU to which goodwill has
Grant date, share-based payment, Ch. 30, 5.3
been allocated, Ch. 20, 8.5
award of equity instruments to a fixed monetary value, Ch. 30,
changes in composition of CGUs, Ch. 20, 8.5.1
5.3.5
effect of IFRS 8 (operating segments) when allocating
awards over a fixed pool of shares (including ‘last man
goodwill to CGU’s in individual financial statements,
standing’ arrangements), Ch. 30, 5.3.6
Ch. 20, 12.2.2
awards subject to modification by entity after original grant
goodwill synergies arising outside of the reporting
date, Ch. 30, 5.3.8
entity/subgroup, Ch. 20, 12.2.1
discretion to make further awards, Ch. 30, 5.3.8.C
impairment of assets and goodwill recognised on
interpretation of general terms, Ch. 30, 5.3.8.B
acquisition, Ch. 20, 8.3
significant equity restructuring or transactions, Ch. 30,
deferred tax assets and losses of acquired businesses,
5.3.8.A
Ch. 20, 8.3.2
awards with multiple service and performance periods, Ch. 30,
testing goodwill ‘created’ by deferred tax for
5.3.7
impairment, Ch. 20, 8.3.1; Ch. 29, 12.3
awards vesting or exercisable on an exit event or change of
impairment testing when a CGU crosses more than one
control, Ch. 30, 15.4.1
operating segment, Ch. 20, 8.4
communication of awards to employees and services in
when to test CGUs with goodwill for impairment, Ch. 20,
advance of, Ch. 30, 5.3.2
8.2
determination of, Ch. 30, 5.3.1
in individual (or subgroup) financial statements and the
exercise price paid in shares (net settlement of award), Ch. 30,
interaction with the group financial statements,
5.3.5
Ch. 20, 12.2
exercise price/performance target dependent on a
internally generated, Ch. 17, 6.2
formula/future share price, Ch. 30, 5.3.3
measuring, Ch. 9, 6
‘good leaver’ arrangements, Ch. 30, 5.3.9
non-controlling interests (NCIs)
automatic full/pro rata entitlement on leaving
goodwill attributable to, Ch. 7, 4.2, 5.2.1
employment, Ch. 30, 5.3.9.C
impact of impairment testing on, Ch. 20, 9
discretionary awards to, Ch. 30, 5.3.9.B
presence of goodwill, Ch. 9, 3.2.5
provision for ‘good leavers’ made in original terms of
recognising and measuring, Ch. 9, 6
award, Ch. 30, 5.3.9.A
subsequent accounting for goodwill, Ch. 9, 6.1
special purpose acquisition companies (‘SPACs’), Ch. 30,
restatement of goodwill on first-time adoption, Ch. 5, 5.2.5
5.3.10
derecognition of negative goodwill, Ch. 5, 5.2.5.B
goodwill previously deducted from equity, Ch. 5, 5.2.5.C
Gross/net presentation of cash flows, Ch. 36, 5.2
prohibition of other adjustments of goodwill, Ch. 5,
Gross-settled contracts for entity’s own equity instruments,
5.2.5.A
Ch. 43, 5.4
tax deductible, Ch. 29, 7.2.2.C
Group reorganisations, Ch. 10, 1.2
tax on initial recognition of, Ch. 29, 7.2.2
and the carrying value of investments in subsidiaries, Ch. 20,
Government grants, Ch. 25, 1–6. See also IAS 20
12.3
acquisition of intangible assets by way of, Ch. 17, 4.6
Group share schemes, Ch. 30, 12. See also Employee benefit
acquisition of property, plant and equipment by way of,
trusts (EBTs) and similar arrangements; Share-based payment
Ch. 18, 4.6
transactions
agriculture, Ch. 38, 3.3
accounting treatment of group share schemes, summary,
definition, Ch. 25, 1.2
Ch. 30, 12.2
disclosures, Ch. 25, 6
awards settled in equity of the subsidiary, Ch. 30, 12.2.5.A
government assistance, Ch. 25, 6.1
awards settled in equity of the parent, Ch. 30, 12.2.5.B
presentation of grants, Ch. 25, 4
cash-settled transactions not settled by the entity receiving
cash flows, Ch. 25, 4.1.1
goods/services, Ch. 30, 12.2.6, 12.6
related to assets, Ch. 25, 4.1
entity receiving goods or services, Ch. 30, 12.2.3
related to income, Ch. 25, 4.2
entity settling the transaction, Ch. 30, 12.2.4
recognition and measurement, Ch. 25, 3
intragroup recharges and management charges, Ch. 30,
in the income statement, Ch. 25, 3.5
12.2.7
forgivable loans, Ch. 25, 3.3
scope of IFRS 2 for group share schemes, Ch. 30, 12.2.2
142 Index
Group share schemes —contd
effective hedges, accounting for, Ch. 49, 7
cash-settled transactions not settled by the entity receiving
cash flow hedges, Ch. 49, 7.2
goods/services, illustrative example, Ch. 30, 12.6
acquisition or disposal of subsidiaries, Ch. 49, 7.2.4
consolidated financial statements, Ch. 30, 12.6.1
all-in-one hedges, Ch. 49, 5.2.1
employee benefit trusts (‘EBTs’) and similar arrangements,
novation of, due to central clearing regulations,
Ch. 30, 12.3
Ch. 49, 8.3.2.A
employee transferring between group entities, Ch. 30, 12.7
discontinuing, Ch. 49, 8.3.2
equity-settled award satisfied by market purchase of shares,
firm commitments, hedges of, Ch. 49, 5.2.2
illustrative example, Ch. 30, 12.4
foreign currency monetary items, Ch. 49, 5.2.3
equity-settled award satisfied by fresh issue of shares,
hypothetical derivatives, Ch. 49, 7.4.4.A
illustrative example, Ch. 30, 12.5
measuring ineffectiveness of, Ch. 49, 7.4.4.E
features of a group share scheme, Ch. 30, 12.1
of a net position, Ch. 49, 2.5.3
group reorganisations, Ch. 30, 12.8
ongoing accounting, Ch. 49, 7.2.1
joint ventures or associates, share-based payments to
presentation, Ch. 49, 9.1,
employees of, Ch. 30, 12.9
reclassification of gains and losses, Ch. 49, 7.2.2
scope of IFRS 2 for group share schemes, Ch. 30, 12.2.2
documented rollover hedging strategy, Ch. 49, 7.7
timing of recognition of intercompany recharges, Ch. 30,
fair value hedges, Ch. 49, 1.5, 5.1, 7.1
12.2.7.A
adjustments to the hedged item, Ch. 49, 7.1.2
Group transactions. See Common control/group transactions
discontinuing, Ch. 49, 8.3.1
Group treasury arrangements, Ch. 36, 6.5.2
ongoing accounting, Ch. 49, 7.1.1
firm commitments, Ch. 49, 5.1.1
Groups of items, hedge accounting, Ch. 49, 2.5
foreign currency monetary items, Ch. 49, 5.1.2
cash flow hedge of a net position, Ch. 49, 2.5.3
layer components for, Ch. 49, 2.3.2
general requirements, Ch. 49, 2.5.1
presen
tation, Ch. 49, 9.2
hedging a component of a group, Ch. 49, 2.5.2
hedges of a firm commitment to acquire a business,
layer component designation, Ch. 49, 2.3.2
Ch. 49, 7.6
macro hedging, Ch. 49, 11
hedges of a net investment in a foreign operation,
accounting for dynamic risk management, Ch. 49, 11.1
accounting for, Ch. 7, 2.3; Ch. 49, 1.5, 5.3, 7.3, 8.3.3
applying hedge accounting for macro hedging strategies
economic relationship, Ch. 49, 6.4.1
under IFRS 9, Ch. 49, 11.2
effective date and transition, Ch. 49, 13
nil net positions, Ch. 49, 2.5.4
limited retrospective application, Ch. 49, 13.3
Guarantees, transferred assets, Ch. 48, 5.3.1, 5.4.1
prospective application in general, Ch. 49, 13.2
parent guarantees issued on behalf of subsidiary, Ch. 8,
effectiveness assessment, Ch. 49, 8.1, 6.4
4.4.5.B
credit risk dominance, Ch.49, 6.4.2
Heap leaching, mining, Ch. 39, 14.6
economic relationship, Ch.49, 6.4.1
Hedge accounting
hedge ratio, Ch.49, 6.4.3
accounting for the costs of hedging, Ch. 49, 7.5
effectiveness measurement, Ch. 49, 7.4
foreign currency basis spreads in financial instruments,
calculation of, Ch. 49, 7.4.3
Ch. 49, 7.5.3
‘clean’ vs. ‘dirty’ values, Ch. 49, 7.4.7
forward element of forward contracts, Ch. 49, 7.5.2
comparison of spot rate and forward rate methods,
time value of options, Ch. 49, 7.5.1
Ch. 49, 7.4.5
aggregated exposures, Ch. 49, 2.7
detailed example of calculation of ineffectiveness for a
accounting for, Ch. 49, 2.7.3
cash flow hedge, Ch. 7.4.4.E
alternatives to hedge accounting, Ch. 49, 12
discount rates for calculating fair value of actual and
credit risk exposures, Ch. 49, 12.1
hypothetical derivatives, Ch. 49, 7.4.4.C
own use contracts, Ch. 49, 12.2
effectiveness of options, Ch. 49, 7.4.8
background, Ch. 49, 1.1
foreign currency basis spreads, Ch. 49, 7.4.4.D
development of, Ch. 49, 1.3
general requirements, Ch. 7.4.1
disclosure, Ch. 49, 10
hedged items with embedded optionality, Ch. 49,
amount, timing and uncertainty of future cash flows,
7.4.9
Ch. 49, 10.3
hedging instrument’s impact on credit quality, Ch. 49,
background and general requirements, Ch. 49, 10.1
7.4.6
effects of hedge accounting on the financial position and
hedging using instruments with a non-zero fair value,
performance, Ch. 49, 10.4
Ch. 49, 7.4.4.B
risk management strategy, Ch. 49, 10.2
hypothetical derivative, Ch. 49, 7.4.4.A
discontinuation, Ch. 49, 8.3, 14.5,
time value of money, Ch. 49, 7.4.2
of cash flow hedges, Ch. 49, 8.3.2
hedged items, Ch. 49, 2
of fair value hedges, Ch. 49, 8.3.1
core deposits, Ch. 49, 2.6.7
novation to central clearing parties, Ch. 49, 8.3.2.A
held at fair value through profit or loss, Ch. 49, 2.6.2
replacement of IBOR, Ch. 49, 8.3.2.C
held at fair value through OCI, Ch. 49, 2.6.3
settle to market derivatives, Ch. 49, 8.3.2.B
firm commitment to acquire a business, Ch. 49, 7.64
Index
143
forecast acquisition/issuance of foreign currency monetary
ineffectiveness, measuring, Ch. 49, 7.4.3
items, Ch. 49, 2.6.5
internal hedges and other group accounting issues,
general requirements, Ch. 49, 2.1
Ch. 49, 4
groups of items, Ch. 49, 2.5
central clearing parties, Ch. 49, 4.1.1
cash flow hedge of a net position, Ch. 49, 2.5.3
external hedging instruments, offsetting, Ch. 49, 4.2
general requirements, Ch. 49, 2.5.1
hedged item and hedging instrument held by different
hedging a component of a group, Ch. 49, 2.5.2
group entities, Ch. 49, 4.4
nil net positions, Ch. 49, 2.5.4
internal hedged items, Ch. 49, 4.3
highly probable, Ch. 49, 2.6.1
internal hedging instruments, Ch. 49, 4.1
internal, Ch. 49, 4.3
offsetting internal hedges instruments, Ch. 49, 4.2
nominal components. Ch. 49, 2.3
macro hedging, Ch. 49, 11
general requirement, Ch. 49, 2.3.1
accounting for dynamic risk management, Ch. 49, 11.1
layer component for fair value hedge, Ch. 49, 2.3.2
macro hedging strategies under IFRS 9, Ch. 49, 11.2
own equity instruments, Ch. 49, 2.6.6
main differences between IFRS 9 and IAS 39 hedge
risk components, Ch. 49, 2.2
accounting requirements, Ch. 49, 14
contractually specified, Ch. 49, 2.2.2
discontinuation, Ch. 49, 14.5
foreign currency as, Ch. 49, 2.2.5
effectiveness criteria, Ch. 49, 14.4
general requirements, Ch. 49, 2.2.1
eligible hedged items, Ch. 49, 14.2
inflation as, Ch. 49, 2.2.6
eligible hedging instruments, Ch. 49, 14.3
non-contractually specified, Ch. 49, 2.2.3
hedge accounting mechanisms, Ch. 49, 14.5
partial term hedging, Ch. 49, 2.2.4
objective of hedge accounting, Ch. 49, 14.1
sub-LIBOR issue, Ch. 49, 2.4
portfolio/macro hedging, Ch. 49, 11
negative interest rates, Ch. 49, 2.4.2
objective of, Ch. 49, 1.4
hedge ratio, Ch. 49, 6.4.3
overview, Ch. 49, 1.5
hedging instruments, Ch. 49, 3
own use contracts, Ch. 49, 12.2
combinations of instruments, Ch. 49, 3.5
presentation, Ch. 49, 9
derivatives, Ch. 49, 3.2
cash flow hedges, Ch. 49, 9.1
basis swaps, Ch. 49, 3.2.5
cost of hedging, Ch. 49, 9.4
credit break clauses, Ch. 49, 3.2.4
fair value hedges, Ch. 49, 9.2
embedded derivatives, Ch. 49, 3.2.3
hedges of groups of items, Ch. 49, 9.3
net written options, Ch. 49, 3.2.2
proxy hedges, Ch. 49, 6.2.1
offsetting external derivatives, Ch. 49, 3.2.1
qualifying criteria, Ch. 49, 6
embedded derivatives, Ch. 49, 3.2.3
credit risk dominance, Ch. 49, 6.4.2
general requirements, Ch. 49, 3.1
on the hedged item, Ch. 49, 6.4.2.B
hedging different risks with one instrument, Ch. 49, 3.7
on the hedging instrument, Ch. 49, 6.4.2.A
non-derivative financial instruments, Ch. 49, 3.3
designating ‘proxy hedges’, Ch. 49, 6.2.1
of foreign currency risk, Ch. 49, 3.3.1
documentation and designation, Ch. 49, 6.3
non-derivative liabilities, Ch. 49, 3.3
business combinations, Ch. 49, 6.3.1
own equity instruments, Ch. 49, 3.4
dynamic hedging strategies, Ch. 49, 6.3.2
portions and proportions of, Ch. 49, 3.6
forecast transactions, Ch. 49, 6.3.3
foreign currency basis spread, Ch. 49, 3.6.5
economic relationship, Ch. 49, 6.4.1
interest elements of forwards, Ch. 49, 3.6.5
>
general requirements, Ch. 49, 6.1
notional decomposition, Ch. 49, 3.6.2
hedge effectiveness requirements, Ch.49, 6.4
portion of a time period, Ch. 49, 3.6.6
credit risk dominance, Ch.49, 6.4.2
proportions of instruments, Ch. 49, 3.6.1
economic relationship, Ch.49, 6.4.1
restructuring of derivatives, Ch. 49, 3.6.3
hedge ratio, Ch.49, 6.4.3
time value of options, Ch. 49, 3.6.4
proxy hedging, Ch.49, 6.2.1
hedging relationships, types of, Ch. 49, 5
risk management strategy, Ch. 49, 6.2
cash flow hedges, Ch. 49, 5.2
risk management objective, Ch. 49, 6.2
all-in-one hedges, Ch. 49, 5.2.1
setting the hedge ratio, Ch. 49, 6.4.3
firm commitments hedges, Ch. 49, 5.2.2
rebalancing, Ch. 49, 8.2
foreign currency monetary items, Ch. 49, 5.2.3
definition, Ch. 49, 8.2.1
fair value hedges, Ch. 49, 5.1
mechanics of, Ch. 49, 8.2.3
firm commitments, hedges of, Ch. 49, 5.1.1
requirement to rebalance, Ch. 49, 8.2.2
foreign currency monetary items, hedges of, Ch. 49,
risk management, Ch. 49, 6.2, 6.3
5.1.2
proxy hedges, Ch. 49, 6.2.1
hedges of net investments in foreign operations, Ch. 49, 5.3
risk management objective, Ch. 49, 6.2
amount of the hedged item for which a hedging
change in, Ch. 49, 8.3
relationship may be designated, Ch. 49, 5.3.2
risk management strategy, Ch. 49, 6.2
nature of the hedged risk, Ch. 49, 5.3.1
standards, development of, Ch. 49, 1.3
where the hedging instrument can be held, Ch. 49, 5.3.3
Hedge ratio, setting, Ch. 49, 6.4.3
144 Index
‘Hedging’ of instruments classified as equity, Ch. 43, 10
definitions, Ch. 22, 2
Hedging sales of metal concentrate (mining sector), Ch. 39, 13.4
disclosure requirements of IAS 2, Ch. 22, 6
High-Level Expert Group (HLEG), Ch. 1, 4.2.1
measurement, Ch. 24, 3
consignment stock and sale and repurchase agreements,
Hong Kong Accounting Standards (HKAS), Ch. 1, 4.4.1.B
Ch. 22, 3.4
Hong Kong Financial Reporting Standards (HKFRS), Ch. 1,
cost criteria, Ch. 22, 3.1
4.4.1.B
borrowing costs and purchases on deferred terms,
Hong Kong, IFRS adoption in, Ch. 1, 4.4.1.B
Ch. 22, 3.1.3
Hong Kong Institute of Certified Public Accountants
costs of purchase, Ch. 22, 3.1.1
(HKICPA), Ch. 1, 4.4.1.B
costs of conversion, Ch. 22, 3.1.2
Hoogervorst, Hans, Ch. 1, 3.2, 5
cost formulas, Ch. 22, 3.2.1
Hybrid financial assets, Ch. 44, 10.2.7.A