International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards
Page 982
drug production costs within the pharmaceutical
industry, Ch. 22, 3.1.3.F
Hybrid taxes, Ch. 29, 4.1.2
first-in, first-out (FIFO), Ch. 22, 3.2.1.A
Hyperinflation, Ch. 16, 1–12. See also IAS 29– Financial Reporting
forward contracts to purchase inventory, Ch. 22, 3.1.3.E
in Hyperinflationary Economies
general and administrative overheads, Ch. 22, 3.1.3.B
background, Ch. 16, 1.1
last-in, first-out (LIFO), Ch. 22, 3.2.1.C
capitalisation of borrowing costs, Ch. 21, 5.6
other cost, Ch. 22, 3.1.3
definition of, Ch. 16, 2.3
service providers, Ch. 22, 3.1.3.D
disclosures, Ch. 16, 12
storage and distribution costs, Ch. 22, 3.1.3.A
general price index, selection of, Ch. 16, 3.1
weighted average cost, Ch. 22, 3.2.1.B
hyperinflationary economies, Ch. 16, 1.2
cost measurement methods, Ch. 22, 3.2
capitalisation of borrowing costs in, Ch. 16, 4.1.4; Ch. 21,
crypto-assets, Ch. 22, 3.4
5.6
cost or lower net realisable value, Ch. 22, 3.4.1
interim financial reporting in, Ch. 16.9; Ch. 37, 9.6.2
fair value less costs to sell, Ch. 22, 3.4.2
restatement approach, Ch. 16, 1.3
net realisable value, Ch. 22, 3.4
restatement of comparative figures, Ch. 16, 8
transfers of rental assets to inventory, Ch. 22, 3.3
restatement of the statement of cash flows, Ch. 16, 7
net realisable value, Ch. 22, 3.4
restatement of the statement of changes in equity, Ch. 16, 5
transfers of rental assets to inventory, Ch. 22, 3.3
restatement of the statement of profit and loss and other
objective of IAS 2, Ch. 22, 2
comprehensive income, Ch. 16, 6
real estate inventory, Ch. 22, 4
restatement of the statement of financial position, Ch. 16, 4
classification, Ch. 22, 4.1
transition, Ch. 16, 10
costs of, Ch. 22, 4.2
translation to a different presentation currency, Ch. 16, 11
allocation to individual units in multi-unit
Hypothetical derivative, hedge accounting, Ch. 49, 7.4.4.A
developments, Ch. 22, 4.2.1
IAS 1– Presentation of Financial Statements, Ch. 3. See also
property demolition and operating lease, Ch. 22, 4.2.2
Financial Statements, presentation of
recognition in profit/loss, Ch. 22, 5
accrual basis of accounting, Ch. 3, 4.1.3
scope and recognition issues, IAS 2/another IFRS, Ch. 22, 2.3
amendment to, Ch. 3, 6.1.1.A
bitcoin and other crypto-currencies, Ch 22.2.3.1.D
capital disclosures, Ch. 3, 5.4.1
broadcast rights - IAS 2/IAS 38, Ch. 22, 2.1.3
consistency, Ch. 3, 4.1.4
Consignment stock and sale and repurchase agreements,
current assets criteria, Ch. 3, 3.1.3
Ch 22.2.3.1.F
current liabilities criteria, Ch. 3, 3.1.4
core inventories and spare parts - IAS 2/IAS 16, Ch. 22, 2.1.1
current versus non-current classification, Ch. 3, 3.1.1
emission rights - IAS 2/IAS 38, Ch. 22, 2.1.4
disclosures, Ch. 3, 5.1, 5.5; Ch. 50, 5.2.8
sales with a right of return, Ch.22, 2.3.1.G
capital disclosures, Ch. 3, 5.4.1; Ch. 50, 5.2.8
transfers of rental assets to inventory, Ch. 22, 2.1.2
going concern basis, Ch. 3, 4.1.2
IAS 7– Statement of Cash Flows, Ch. 36, 1–8. See also Statement
sources of estimation uncertainty, Ch. 3, 5.2.1
of cash flows
fair presentation and compliance with IFRS, Ch. 3, 4.1.1.A
additional IAS 7 considerations for financial institutions,
fair presentation override, Ch. 3, 4.1.1.B
Ch. 36, 7
future developments, Ch. 3, 6
operating cash flows, Ch. 36, 7.1
general principles, Ch. 3, 4.1
reporting cash flows on a net basis, Ch. 36, 7.2
going concern basis, Ch. 3, 4.1.2
additional IAS 7 considerations for groups, Ch. 36, 6
materiality concept, Ch. 3, 4.1.5; Ch. 50, 3.2
acquisitions and disposals, Ch. 36, 6.3
objective of, Ch. 3, 1.1
acquisition-related costs, Ch. 36, 6.3.1
offset, Ch. 3, 4.1.5.B
contingent consideration, Ch. 36, 6.3.3
profit or loss for the period, Ch. 3, 4.1.6
deferred and other non-cash consideration, Ch. 36, 6.3.2
purpose of, Ch. 3, 2, Ch. 3, 2.1
settlement of amounts owed by the acquired entity,
scope of, Ch. 3, 1.1
Ch. 36, 6.3.4
statement of comprehensive income, Ch. 3, 3.2
settlement of intra-group balances on a demerger,
IAS 2– Inventories, Ch. 22, 1–6
Ch. 36, 6.3.5
Index
145
cash flows in separate financial statements, Ch. 36, 6.5
IAS 8– Accounting Policies, Changes in Accounting Estimates and
cash flows of subsidiaries, associates and joint ventures,
Errors, Ch. 3, 4; Ch. 5, 7.2. See also Accounting policies;
Ch. 36, 6.5.1
Financial Statements
group treasury arrangements, Ch. 36, 6.5.2
accounting policies defined by, Ch. 3, 4.2
cash flows of subsidiaries, associates and joint ventures,
changes in accounting estimates, Ch. 3, 4.5, 5.2.2, 6.2.1.C
Ch. 36, 6.4
changes in accounting policies, Ch. 3, 4.4, 6.2.1.C
cash flows in investment entities, Ch. 36, 6.4.3
changes in estimates, Ch. 3, 5.2.2
cash flows of joint operations, Ch. 36, 6.4.2
consistency of accounting policies, Ch. 3, 4.1.4
investments in associates and joint ventures, Ch. 36,
correction of errors, Ch. 3, 4.6
6.4.1
disclosure of prior period errors, Ch. 3, 5.3
preparing a consolidated statement of cash flows, Ch. 36,
during the first IFRS reporting period, Ch. 5, 7.2.1
6.1
materiality defined by, Ch. 3, 4.1.5.A
transactions with non-controlling interests, Ch. 36, 6.2
objective of, Ch. 3, 1.2
cash and cash equivalents, Ch. 36, 3
scope of, Ch. 3, 1.2
components of cash and cash equivalents, Ch. 36, 3.2
IAS 10– Events after the Reporting Period, Ch. 34, 1–3. See also
bank overdrafts, Ch. 36, 3.2.4
Events after the reporting period.
demand deposits and short-term investments, Ch. 36,
adjusting events, Ch. 34, 2.1.2
3.2.1
treatment of, Ch. 34, 2.2
investments with maturities greater than three months,
date when financial statements are authorised for issue,
Ch. 36, 3.2.3
Ch. 34, 2.1.1
money market funds, Ch. 36, 3.2.2
re-issuing (dual dating) financial statements, Ch. 34, 2.1.1.A
policy for determining components of cash equivalents,
definitions, Ch. 34, 2.1
Ch. 36, 3.1
non-adjusting events, Ch. 34, 2.1.3
reconciliation with items in the statement of financial
treatment of, Ch. 34, 2.3
position, Ch. 36, 3.3
objective, Ch. 34, 2.1
restrictions on the use of cash and cash equivalents,
other disclosures, Ch. 34, 2.4
Ch. 36, 3.4
practical issues, Ch. 34, 3
cash flow presentation issues, Ch. 36, 5
changes to estimates of uncertain tax treatments, Ch. 34, 3.6
exceptional and other material cash flows, Ch. 36, 5.1
discovery of fraud after the reporting period, Ch. 34, 3.5
foreign currency cash flows, Ch. 36, 5.3
insolvency of a debtor, Ch. 34, 3.3
determining the value of non-operating cash flows,
percentage of completion estimates, Ch. 34, 3.2
Ch. 36, 5.3.2.C
valuation of inventory, Ch. 34, 3.1
entities applying the direct method, Ch. 36, 5.3.1
valuation of investment property at fair value and tenant
entities applying the indirect method, Ch. 36, 5.3.2
insolvency, Ch. 34, 3.4
foreign currency operating transactions settled in the
scope, Ch. 34, 2.1
period, Ch. 36, 5.3.2.A
treatment of adjusting events, Ch. 34, 2.2
indirect method and foreign subsidiaries, Ch. 36,
events indicating that the going concern basis is not
5.3.2.D
appropriate, Ch. 34, 2.2.2
unsettled foreign currency operating transactions,
events requiring adjustment to the amounts recognised, or
Ch. 36, 5.3.2.B
disclosures, in the financial statements, Ch. 34, 2.2.1
gross/net presentation of cash flows, Ch. 36, 5.2
treatment of non-adjusting events, Ch. 34, 2.3
non-cash transactions and transactions on deferred terms,
breach of a long-term loan covenant and its subsequent
Ch. 36, 5.4
rectification, Ch. 34, 2.3.2
asset disposals on deferred terms, Ch. 36, 5.4.2
declaration to distribute non-cash assets to owners, Ch. 34,
asset purchases on deferred terms, Ch. 36, 5.4.1
2.3.1
voluntary disclosures, Ch. 36, 5.6
IAS 12– Income Taxes, Ch. 29, 1–14. See also Deferred tax;
cash flows to increase and maintain operating capacity,
Income taxes
Ch. 36, 5.6.1
allocation of tax charge or credit, Ch. 29, 10
segment cash flow disclosures, Ch. 36, 5.6.2
business combinations, Ch. 29, 12
liabilities arising from financing activities, changes in, Ch. 36,
current tax, Ch. 29, 5
5.5
deferred tax
objective, Ch. 36, 2.1
measurement, Ch. 29, 8
requirements of other standards, Ch. 36, 8
discounting, Ch. 29, 8.6
cash flows arising from insurance contracts, Ch. 36, 8.2
expected manner of recovery, Ch. 29, 8.4
cash flows arising from interests in subsidiaries, joint
recognition, Ch. 29, 7
ventures and associates, Ch. 36, 8.4
assets carried at fair value or revalued amount, Ch. 29,
cash flows arising from the exploration of mineral
7.3
resources, Ch. 36, 8.3
basic principles, Ch. 29, 7.2
cash flows of discontinued operations, Ch. 36, 8.1
initial recognition exception, Ch. 29, 7.2
scope, Ch. 36, 2.2
restriction on recognition of deferred tax assets, Ch. 29,
terms used in, Ch. 36, 1.1
7.4
146 Index
IAS 12– Income Taxes—contd
transfers of assets from customers (IFRIC 18), Ch. 18,
deferred tax —contd
4.1.8
tax bases and temporary differences, Ch. 29, 6
variable pricing, Ch. 18, 4.1.9
definitions, Ch. 29, 3
exchanges of assets, Ch. 18, 4.4
development of IAS 12, Ch. 29, 1.3
commercial substance, Ch. 18, 4.4.1
disclosure, Ch. 29, 14
reliably measurable, Ch. 18, 4.4.2
first-time adoption, Ch. 5, 7.3
incidental and non-incidental income, Ch. 18, 4.2
objective, Ch. 29, 2.1.1
income earned while bringing the asset to the intended
overview, Ch. 29, 2.2
location and condition, Ch. 18, 4.2.1
presentation, Ch. 29, 13
income received during the construction of property,
scope, Ch. 29, 4
Ch. 18, 4.2.2
uncertain tax treatments, Ch. 29, 9
liquidated damages during construction, Ch. 18, 4.2.3
IAS 16– Property, Plant and Equipment, Ch. 18, 1–8. See also
recognition, Ch. 18, 3
Property, plant and equipment (PP&E)
accounting for parts (‘components’) of assets, Ch. 18, 3.2
definitions used in IAS 16, Ch. 18, 2.2
aspects of recognition, Ch. 18, 3.1
depreciation, Ch. 18, 5
bearer plants, Ch. 18, 3.1.7
derecognition and disposal, Ch. 18, 7
classification of items as inventory or PP&E when
partial disposals and undivided interests, Ch. 18, 7.3
minimum levels are maintained, Ch. 18, 3.1.5
subsidiary that is a single asset entity, Ch. 19, 6.10
classification as PP&E/intangible asset, Ch. 18, 3.1.4
sale of assets held for rental, Ch. 18, 7.2
environmental and safety equipment, Ch. 18, 3.1.2
disclosure requirements, Ch. 18, 8–8.3
production stripping costs of surface mines, Ch. 18, 3.1.6
additional disclosures for revalued assets, Ch. 18, 8.2
property economic benefits and property
first-time adopter, Ch. 5, 7.4
developments, Ch. 18, 3.1.3
general disclosures, Ch. 18, 8.1
spare parts and minor items, Ch. 18, 3.1.1
other disclosures, Ch. 18, 8.3
initial and subsequent expenditure, Ch. 18, 3.3
measurement after recognition, cost model, Ch. 18, 5
major inspections, Ch. 18, 3.3.2
depreciable amount and residual values, Ch. 18, 5.2
types of parts, Ch. 18, 3.3.1
depreciation charge, Ch. 18, 5.3
requirements of IAS 16, Ch. 18, 2
depreciation methods, Ch. 18, 5.6
scope, Ch. 18, 2.1
diminishing balance methods, Ch. 18, 5.6.1
IAS 17– Leases, Ch. 23, 1–9. See also Leases
unit-of-production method, Ch. 18, 5.6.2
classification of leases, Ch. 23, 3.2
impairment, Ch. 18, 5.7
determining the substance of transactions, Ch. 23, 3.2.2
significant parts of assets, Ch. 18, 5.1
finance and operating leases, Ch. 23, 3.2.1
useful lives, Ch. 18, 5.4
definitions, Ch. 23, 3.4
land, Ch. 18, 5.4.2
disclosures required by, Ch. 23, 9
repairs and maintenance, Ch. 18, 5.4.1
financial assets and liabilities, Ch. 23, 9.1
technological change, Ch. 18, 5.4.3
lessees, Ch. 23, 9.2
when depreciation starts, Ch. 18, 5.5
finance leases, Ch. 23, 9.2.1
measurement after recognition, revaluation model,
operating leases, Ch. 23, 9.2.2
Ch. 18, 6–6.5
lessors, Ch. 23, 9.3
accounting for valuation surpluses and deficits,
finance leases, Ch. 23, 9.3.1
Ch. 18, 6.2
operating leases, Ch. 23, 9.3.2
adopting a policy of revaluation, Ch. 18, 6.4
finance leases, accounting for, Ch. 23, 4
assets held under finance leases, Ch. 18, 6.5
by lessees, Ch. 23, 4.1
meaning of fair value, Ch. 18, 6.1
by lessors, Ch. 23, 4.2
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reversals of downward valuations, Ch. 18, 6.3
manufacturer/dealer lessors, Ch. 23, 4.4
measurement at recognition, Ch. 18, 4
termination of finance leases, Ch. 23, 4.3
accounting for changes in decommissioning and
first-time adopter, Ch. 5, 7.5
restoration costs, Ch. 18, 4.3
leases as financial instruments, Ch. 23, 3.5
assets acquired with the assistance of government grants,
leases of land – finance or operating leases?, Ch. 23, 3.3
Ch. 18, 4.6
modifying the terms of leases, Ch. 23, 6.1
assets held under finance leases, Ch. 18, 4.5
operating leases, accounting for, Ch. 23, 5
elements of cost and cost measurement, Ch. 18, 4.1
in the financial statements of lessees, Ch. 23, 5.1
administration and other general overheads, Ch. 18,
in the financial statements of lessors, Ch. 23, 5.2
4.1.3
payments made in connection with termination of
borrowing costs, Ch. 18, 4.1.2
operating leases, Ch. 23, 5.3
cessation of capitalisation, Ch. 18, 4.1.4
sale and leaseback transactions, Ch. 23, 7
deferred payment, Ch. 18, 4.1.6
including repurchase agreements and options, Ch. 23, 7.3
‘directly attributable’ costs, Ch. 18, 4.1.1
operating leaseback, Ch. 23, 7.2
land and buildings to be redeveloped, Ch. 18, 4.1.7
sale and finance leaseback, Ch. 23, 7.1
self-built assets, Ch. 18, 4.1.5
scope of, Ch. 23, 3.1
Index
147
arrangements over intangible assets, Ch. 23, 3.1.2
definitions, Ch. 25, 1.2
leases and licensing agreements, Ch. 23, 3.1.1
disclosures, Ch. 25, 6
sub-leases and back- to- back leases, Ch. 23, 8.1–8.1.2
government assistance, Ch. 5, 6.1
IAS 19–Employee Benefits, Ch. 31, 1–16. See also Defined
government grants related to biological assets in the scope of
benefit plans; Defined contribution plans; Employee benefits;
IAS 41, Ch. 25, 5
Long-term employee benefits; short-term employee benefits
overview of IAS 20, Ch. 25, 1.1
defined contribution plans, Ch. 31, 4
presentation of grants, Ch. 25, 4
accounting requirements, Ch. 31, 4.1
related to assets, Ch. 25, 4.1
with minimum return guarantee, Ch. 31, 3.5
cash flows, Ch. 25, 4.1.1
with vesting conditions, Ch. 31, 4.1.2
impairment testing of assets that qualified for
disclosure requirements, Ch. 31, 15
government grants, Ch. 25, 4.1.2
defined benefit plans, Ch. 31, 15.2
related to income, Ch. 25, 4.2
amount, timing and uncertainty of future cash flows,