development of, Ch. 13, 1.1
accounting policy, Ch. 14, 20.2
interests disclosed under, Ch. 13, 2.2.2
objectives, Ch. 14, 20.1
interests not within the scope of, Ch. 13, 2.2.3
format of, Ch. 14, 20.1.1
joint arrangements and associates, Ch. 13, 5
level of disaggregation, Ch. 14, 20.1.2
nature, extent and financial effects, Ch. 13, 5.1
‘recurring’ vs. ‘non-recurring’, Ch. 14, 20.1.3
risks associated with, Ch. 13, 5.2
for recognised fair value measurements, Ch. 14, 20.3
commitments relating to joint ventures, Ch. 13, 5.2.1
fair value hierarchy categorisation, Ch. 14, 20.3.3
contingent liabilities relating to joint ventures and
highest and best use, Ch. 14, 20.3.9
associates, Ch. 13, 5.2.2
level 3 reconciliation, Ch. 14, 20.3.6
significant judgements and assumptions, Ch. 13, 3
non-recurring fair value measurements, Ch. 14, 20.3.2
objective, Ch. 13, 2.1
recurring fair value measurements, Ch. 14, 20.3.1
scope, Ch. 13, 2.2
sensitivity of level 3 measurements to changes in
subsidiaries, Ch. 13, 4
significant unobservable inputs, Ch. 14, 20.3.8
changes in ownership interests in subsidiaries, Ch. 13, 4.5
transfers between hierarchy levels for recurring fair
composition of the group, Ch. 13, 4.1
value measurements, Ch. 14, 20.3.4
consolidated structured entities, nature of risks, Ch. 13, 4.4
of valuation processes for level 3 measurements,
financial or other support to with no contractual
Ch. 14, 20.3.7
obligation, Ch. 13, 4.4.2
valuation techniques and inputs, Ch. 14, 20.3.5
terms of contractual arrangements, Ch. 13, 4.4.1
regarding liabilities issued with an inseparable third-party
nature and extent of significant restrictions, Ch. 13, 4.3
credit enhancement, Ch. 14, 20.5
non-controlling interests, Ch. 13, 4.2
for unrecognised fair value measurements, Ch. 14, 20.4
unconsolidated structured entities, Ch. 13, 6
effective date and transition, Ch. 14, 22
nature of interests, Ch. 13, 6.1
fair value framework, Ch. 14, 4
nature, purpose, size, activities and financing of
definition, Ch. 14, 4.1
structured entities, Ch. 13, 6.1.1
measurement, Ch. 14, 4.2
sponsored structured entities for which no interest is
financial assets and liabilities with offsetting positions, Ch. 14, 12
held at the reporting date, Ch. 13, 6.1.2
criteria for using the portfolio approach for offsetting
nature of risks, Ch. 13, 6.2–6.3
positions
actual and intended financial and other support to
accounting policy considerations, Ch. 14, 12.1.1
structured entities, Ch. 13, 6.2.2
level 1 instruments in, Ch. 14, 12.1.4
disclosure of funding difficulties, Ch. 13, 6.3.6
minimum level of offset, to use portfolio approach,
disclosure of liquidity arrangements, Ch. 13, 6.3.5
Ch. 14, 12.1.3
disclosure of losses, Ch. 13, 6.3.2
presentation considerations, Ch. 14, 12.1.2
disclosure of ranking and amounts of potential losses,
measuring fair value for offsetting positions
Ch. 13, 6.3.4
exposure to market risks, Ch. 14, 12.2.1
disclosure of support, Ch. 13, 6.3.1
exposure to the credit risk of a particular counterparty,
disclosure of the forms of funding of an
Ch. 14, 12.2.2
unconsolidated structured entity, Ch. 13, 6.3.7
hierarchy, Ch. 14, 16
disclosure of types of income received, Ch. 13, 6.3.3
categorisation within, Ch. 14, 16.2
maximum exposure to loss from those interests,
over-the-counter derivative instruments, Ch. 14, 16.2.4
Ch. 13, 6.2.1
significance of inputs, assessing, Ch. 14, 16.2.1
IFRS 13– Fair Value Measurement, Ch. 14, 1–23. See also Fair
third-party pricing services/brokers, Ch. 14, 16.2.3
value; Fair value measurement; Valuation techniques
transfers between levels within, Ch. 14, 16.2.2
asset/liability, Ch. 14, 5
IFRS 13, objective of, Ch. 14, 1.3
characteristics, Ch. 14, 5.2
IFRS 13, overview, Ch. 14, 1.2
condition and location, Ch. 14, 5.2.1
at initial recognition, Ch. 14, 13
restrictions on assets or liabilities, Ch. 14, 5.2.2
day one gains and losses, Ch. 14, 13.2
unit of account, Ch. 14, 5.1
losses for over-the-counter derivative transactions,
asset’s (or liability’s) components, Ch. 14, 5.1.4
Ch. 14, 13.2.1
and portfolio exception, Ch. 14, 5.1.2
when entry and exit markets are the same, Ch. 14,
13.2.2
166 Index
IFRS 13– Fair Value Measurement—contd
present value technique, Ch. 14, 21
at initial recognition —contd
components of, Ch. 14, 21.2
exit price vs. entry price, Ch. 14, 13.1
risk and uncertainty in, Ch. 14, 21.2.2
related party transactions, Ch. 14, 13.3
time value of money, Ch. 14, 21.2.1
inputs to valuation techniques, Ch. 14, 15
discount rate adjustment technique, Ch. 14, 21.3
broker quotes and pricing services, Ch. 14, 15.5
expected present value technique, Ch. 14, 21.4
general principles, Ch. 14, 15.1
general principles for use of, Ch. 14, 21.1
premiums and discounts, Ch. 14, 15.2
price, Ch. 14, 9
blockage factors (or block discounts), Ch. 14, 15.2.1
transaction costs, Ch. 14, 9.1
pricing within the bid-ask spread bid-ask spread, Ch. 14,
transportation costs, Ch. 14, 9.2
15.3
principal (or most advantageous) market, Ch. 14, 6
mid-market pricing, Ch. 14, 15.3.1
scope, Ch. 14, 2
risk premiums, Ch. 14, 15.4
exclusions, Ch. 14, 2.2
level 1 inputs, Ch. 14, 17
disclosure requirements of IFRS 13, exemptions from,
alternative pricing methods, Ch. 14, 17.2
Ch. 14, 2.2.4
quoted prices in active markets that are not representative
lease transactions, Ch. 14, 2.2.2
of, Ch. 14, 17.3
measurements similar to fair value, Ch. 14, 2.2.3
unit of account, Ch. 14, 17.4
share-based payments, Ch. 14, 2.2.1
use of, Ch. 14, 17.1
fair value measurement exceptions, Ch. 14, 2.4
level 2 inputs, Ch. 14, 18
IFRS 13, items in, Ch. 14, 2.1
examples of, Ch. 14, 18.2
fair value disclosures, Ch. 14, 2.1.1
making adjustments to, Ch. 14, 18.4
fair value measurements, Ch. 14, 2.1.2
market corroborated inputs, Ch. 14, 18.3
short-term receivables and payables, Ch. 14, 2.1.3
recently observed prices in an inactive market, Ch. 14,
practical expedient for impaired financial assets carried at
18.5
amortised cost, Ch. 14, 2.4.2
level 3 inputs, Ch. 14, 19
present value techniques, Ch. 14, 2.3
examples of, Ch. 14, 19.2
transaction, Ch. 14, 8
use of, Ch. 14, 19.1
estimation, Ch. 14, 8.3
liabilities and an entity’s own equity, application to, Ch. 14, 11
identification, Ch. 14, 8.2
financial liability with demand feature, Ch. 14, 11.5
volume and level of activity for an asset/liability, Ch. 14, 8.1
non-performance risk, Ch. 14, 11.3
unit of account, Ch. 14, 5
counterparty credit risk and its own credit risk, Ch. 14,
asset’s (or liability’s) components, Ch. 14, 5.1.4
11.3.2
level 1 assets and liabilities, Ch. 14, 17.4
derivative liabilities, Ch. 14, 11.3.4
and portfolio exception, Ch. 14, 5.1.2
entity incorporate credit risk into the valuation of its
and PxQ, Ch. 7, 3.3.2.D, 7.3; Ch. 14, 5.1.1
derivative contracts, Ch. 14, 11.3.3
vs. valuation premise, Ch. 14, 5.1.3
with third-party credit enhancements, Ch. 14, 11.3.1
valuation techniques, Ch. 14, 14
not held by other parties as assets, Ch. 14, 11.2.2
cost approach, Ch. 14, 14.3
principles, Ch. 14, 11.1
income approach, Ch. 14, 14.4
fair value of an entity’s own equity, Ch. 14, 11.1.2
market approach, Ch. 14, 14.2
fair value of a liability, Ch. 14, 11.1.1
selecting appropriate, Ch. 14, 14.1
settlement value vs. transfer value, Ch. 14, 11.1.3
making changes to valuation techniques, Ch. 14, 14.1.4
restrictions preventing the transfer of, Ch. 14, 11.1
single vs. multiple valuation techniques, Ch. 14, 14.1.1
that are held by other parties as assets, Ch. 14, 11.2.1
using multiple valuation techniques to measure fair
market participants, Ch. 14, 7
value, Ch. 14, 14.1.2
assumptions, Ch. 14, 7.2
valuation adjustments, Ch. 14, 14.1.3
characteristics, Ch. 14, 7.1
IFRS 14– Regulatory Deferral Accounts, Ch. 5, 5.20; Ch. 27, 5.4
measurement exception to the fair value principles for financial
changes in accounting policies, Ch. 5, 5.20.5
instruments, Ch. 14, 2.5.2
continuation of previous GAAP accounting policies, Ch. 5,
non-financial assets, application to, Ch. 14, 10
5.20.3
highest and best use, Ch. 14, 10.1
defined terms, Ch. 5, 5.20.1
vs. current use, Ch. 14, 10.1.2
interaction with other standards, Ch. 5, 5.20.7
vs. intended use, Ch. 14, 10.1.3
presentation and disclosures, Ch. 5, 5.20.6
legally permissible, Ch. 14, 10.1.1
recognition as regulatory deferral account balances, Ch. 5,
valuation premise, Ch. 14, 10.2
5.20.4
in combination with other assets and/or liabilities,
scope, Ch. 5, 5.20.2
Ch. 14, 10.2.2
IFRS 15– Revenue recognition, Ch. 28, 1–12. See also Revenue
liabilities association, Ch. 14, 10.2.3
recognition
stand-alone basis, Ch. 14, 10.2.1
allocate the transaction price to the performance obligations,
unit of account vs., Ch. 14, 10.2.4
Ch. 28, 7
practical expedient in, Ch. 14, 2.5.1
Index
167
allocating a discount, Ch. 28, 7.4
contract enforceability and termination clauses, Ch. 28, 4.2
allocation of transaction price to components outside the
evaluating termination clauses, Ch. 28, 4.2.1.A
scope of IFRS 15, Ch. 28, 7.6
evaluating the contract term when an entity has a past
changes in transaction price after contract inception,
practice of not enforcing termination payments,
Ch. 28, 7.5
Ch. 28, 4.2.1.C
determining stand-alone selling prices, Ch. 28, 7.1
partial termination of a contract, accounting for,
additional considerations for determining, Ch. 28, 7.1.4
Ch. 28, 4.2.1.D
factors to consider when estimating, Ch. 28, 7.1.1
termination payments in determining the contract
measurement of options that are separate performance
term, Ch. 28, 4.2.1.A
obligations, Ch. 28, 7.1.5
contract modifications, Ch. 28, 4.4
possible estimation approaches, Ch. 28, 7.1.2
not a separate contract, Ch. 28, 4.4.2
updating estimated, Ch. 28, 7.1.3
reassessing criteria if contract modified, Ch. 28, 4.4.3
relative stand-alone selling price method, Ch. 28, 7.2
represents a separate contract, Ch. 28, 4.4.1
variable consideration allocation, Ch. 28, 7.3
identify the performance obligations in the contract, Ch. 28, 5
definitions, Ch. 28, 2.4
consignment arrangements, Ch. 28, 5.5
determine the transaction price, Ch. 28, 6
customer options for additional goods/services, Ch. 28, 5.6
accounting for specific types of variable consideration,
accounting for the exercise of a material right, Ch. 28,
Ch. 28, 6.4
5.6.1.H
rights of return, Ch. 28, 6.4.1
considering whether prospective volume discounts
sales-based and usage-based royalties on licences of
determined to be customer options are material
intellectual property, Ch. 28, 9.5
rights, Ch. 28, 5.6.1.G
changes in the transaction price, Ch. 28, 6.9
customer option as a separate performance obligation
consideration paid/payable to a customer, Ch. 28, 6.7
when there are no contractual penalties, Ch. 28,
classification of different types of, Ch. 28, 6.7.2
5.6.1.D
entity’s customer when applying the requirements for
customer options that provide a material right:
consideration payable to a customer, Ch. 28, 6.7.1
evaluating whether there is a significant financing
forms, Ch. 28, 6.7.3
component, Ch. 28, 5.6.1.I
timing of recognition of, Ch. 28, 6.7.4
customer options that provide a material right:
non-cash consideration, Ch. 28, 6.6
recognising revenue when there is no expiration
non-refundable upfront fees, Ch. 28, 6.8
date, Ch. 28, 5.6.1.J
presentation of sales taxes, Ch. 28, 6.1
distinguishing between a customer option and variable
refund liabilities, Ch. 28, 6.3
consideration, Ch. 28, 5.6.1.C
significant financing component, Ch. 28, 6.5
nature of evaluation of customer options: quantitative
examples, Ch. 28, 6.5.1
versus qualitative, Ch. 28, 5.6.1.B
financial statement presentation of financing
prospective volume discounts determined to be
component, Ch. 28, 6.5.3
customer options are material rights, Ch. 28,
implementation questions on identifying and
5.6.1.F
accounting for, Ch. 28, 6.5.2
transactions to consider when assessing customer
variable consideration, Ch. 28, 6.2
options for additional goods/services, Ch. 28,
constraining estimates, Ch. 28, 6.2.3
5.6.1.A
estimating, Ch. 28, 6.2.2
volume rebates and/or discounts on goods or services:
forms, Ch. 28, 6.2.1
&nbs
p; customer options versus variable consideration,
reassessment, Ch. 28, 6.2.4
Ch. 28, 5.6.1.E
disclosures, Ch. 28, 11
determining when promises are performance obligations,
effective date, Ch. 28, 2.2
Ch. 28, 5.2
extractive industries, Ch. 39, 12.4.3
determination of ‘distinct,’ Ch. 28, 5.2.1
first-time adopter, Ch. 5, 5.21
examples, Ch. 28, 5.2.3
identify the contract with the customer, Ch. 28, 4
series of distinct goods and services that are
arrangements not meeting the definition of a contract
substantially the same and have the same pattern of
under the standard, Ch. 28, 4.5
transfer, Ch. 28, 5.2.2
attributes of a contract, Ch. 28, 4.1
identifying the promised goods and services in the
collectability, Ch. 28, 4.1.5
contract, Ch. 28, 5.1
commercial substance, Ch. 28, 4.1.4
deliverables under current revenue requirements,
each party’s rights regarding the goods/services to be
Ch. 28, 5.1.1
transferred can be identified, Ch. 28, 4.1.2
principal versus agent considerations, Ch. 28, 5.4
parties have approved the contract and are committed
control of the specified good/service, Ch. 28, 5.4.2
to perform their respective obligations, Ch. 28,
examples, Ch. 28, 5.4.4
4.1.1
identifying the specified good/service, Ch. 28, 5.4.1
payment terms can be identified, Ch. 28, 4.1.3
recognising revenue as principal/agent, Ch. 28, 5.4.3
combining contracts, Ch. 28, 4.3
promised goods and services that are not distinct, Ch. 28, 5.3
portfolio approach practical expedient, Ch. 28, 4.3.1
sale of products with a right of return, Ch. 28, 5.7
168 Index
IFRS 15– Revenue recognition—contd
transition disclosure requirements, Ch. 28, 11.5
interaction with IFRIC 12, Ch. 26, 5.4
satisfaction of performance obligations, Ch. 28, 8
licences of intellectual property, Ch. 28, 9
bill-and-hold arrangements, Ch. 28, 8.6
identifying performance obligations in a licensing
breakage and prepayments for future goods/services,
arrangement, Ch. 28, 9.1
Ch. 28, 8.10
contractual restrictions, Ch. 28, 9.1.3
consignment arrangements, Ch. 28, 8.5
guarantees to defend or maintain a patent, Ch. 28, 9.1.4
control transferred at a point in time, Ch. 28, 8.3
implementation questions, Ch. 28, 9.1.5
customer acceptance, Ch. 28, 8.3.1
licences of intellectual property that are distinct,
over time, Ch. 28, 8.1
Ch. 28, 9.1.1
asset with no alternative use and right to payment,
International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards Page 989
