premium allocation approach, Ch. 52, 9
external users of processing assets, Ch. 39, 11.2.2
criteria for use of, Ch. 52, 9.1
fields/mines operated on a portfolio basis, Ch. 39, 11.2.4
applying materiality for the premium allocation
markets for intermediate products, Ch. 39, 11.2.1
approach eligibility assessment, Ch. 52, 9.1.1
shared infrastructure, Ch. 39, 11.2.3
main sources of difference between the premium
impairment indicators, Ch. 20, 2.1, Ch. 39, 11.1
allocation approach and the general approach,
intangible assets with an indefinite useful life, Ch. 20, 10
Ch. 52, 9.1.2
low mine/field profitability near end of life, Ch. 39, 11.6
initial measurement, Ch. 52, 9.2
subsequent measurement, liability for
Impairment of goodwill, Ch. 20, 8
incurred claims, Ch. 52, 9.4
created by deferred tax, Ch. 29, 12.3
remaining coverage, Ch. 52, 9.3
disposal of operation within a cash-generating unit (CGU) to
reinsurance contracts held, Ch. 52, 10
which goodwill has been allocated, Ch. 20, 8.5
aggregation level, Ch. 52, 10.1
changes in composition of cash-generating units CGUs,
allocation of the CSM to profit or loss, Ch. 52, 10.4.1
Ch. 20, 8.5.1
boundary of, Ch. 52, 10.2
goodwill and its allocation to cash-generating unites, Ch. 20,
initial recognition, Ch. 52, 10.3, 10.4
8.1
premium allocation approach for, Ch. 52, 10.7
recognised on acquisition, Ch. 20, 8.3
subsequent measurement, Ch. 52, 10.5
deferred tax assets and losses of acquired businesses,
and the variable fee approach, Ch. 52, 10.8
Ch. 20, 8.3.2
modification and derecognition, Ch. 52, 12
testing goodwill ‘created’ by deferred tax for impairment,
accounting for derecognition, Ch. 52, 12.3
Ch. 20, 8.3.1
derecognition, Ch. 52, 12.2
impairment testing when a CGU crosses more than one
modification, Ch. 52, 12.1
operating segment, Ch. 20, 8.4
objective of IFRS 17, Ch. 52, 2.1
when to test CGUs with goodwill for impairment, Ch. 20, 8.2
presentation in the statement of financial performance,
carry forward of a previous impairment test calculation,
Ch. 52, 15
Ch. 20, 8.2.3
changes in accounting policies and accounting estimates,
reversal of impairment loss, Ch. 20, 5.8.2.4
Ch. 52, 15.5
sequence of tests, Ch. 20, 8.2.2
insurance finance income or expenses, Ch. 52, 15.3
timing of tests, Ch. 20, 8.2.1
insurance revenue, Ch. 52, 15.1
Impairments. See also IAS 36; Impairment of assets; Impairment
and expense from reinsurance contracts held, Ch. 52,
of goodwill
15.1.3
associates or joint ventures, Ch. 11, 8
related to the provision of services in a period, Ch. 52,
in separate financial statements, Ch. 11, 9.1
15.1.1
of capitalised costs, Ch. 28, 9.3.4
under the premium allocation approach, Ch. 52,
cost model, Ch. 18, 5; Ch. 19, 7.3
15.1.2
of fixed assets and goodwill, Ch. 20, 1–14
insurance service expenses, Ch. 52, 15.2
intangible assets, Ch. 17, 9.4
reporting the CSM in interim financial statements, Ch. 52,
impairment testing of emission rights, Ch. 39, 11.2.4
15.4
of insurance assets, hierarchy exemption, Ch. 51, 7.2.6.B
presentation in the statement of financial position, Ch. 52, 14
of reinsurance assets, hierarchy exemption, Ch. 51, 7.2.5
scope of IFRS 17, Ch. 52, 4
suspension of capitalisation, Ch. 21, 6.3
embedded derivatives from an insurance contract, Ch. 52,
Implicit interest rate (IIR), calculation of, Ch. 23, 3.4.9
4.1
Income, definition of, Ch. 28, 2.4
investment components from an insurance contract,
Income approach (fair value), Ch. 14, 14.4
Ch. 52, 4.2
property, plant and equipment, Ch. 18, 6.1.1.B
a promise to provide distinct goods and non-insurance
Income statement (statement of profit or loss), Ch. 3, 3.2.1. See
services from insurance contracts, Ch. 52, 4.3
also Statement of comprehensive income
separating components from an insurance contract, Ch. 52, 4
172 Index
Income statement (statement of profit or loss) —contd
tax deductions for replacement share-based payment
classification of expenses recognised in profit/loss, Ch. 3, 3.2.3
awards in a business combination, Ch. 29, 12.2
analysis of expenses by function, Ch. 3, 3.2.3.B
temporary differences arising from the acquisition of a
analysis of expenses by nature, Ch. 3, 3.2.3.A
group of assets that is not a business, Ch. 29, 12.5
face of, information required on, Ch. 3, 3.2.2
consolidated tax returns and offset of taxable profits and losses
Income taxes, Ch. 29, 1–14. See also IAS 12
within groups, Ch. 29, 1
allocation between periods, Ch. 29, 1.2
examples of accounting by entities in a tax-consolidated
no provision for deferred tax (‘flow through’), Ch. 29, 1.2.1
group, Ch. 29, 11.1
provision for deferred tax (the temporary difference
payments for intragroup transfer of tax losses, Ch. 29, 11.2
approach), Ch. 29, 1.2.2
recognition of deferred tax assets where tax losses are
allocation of tax charge/credit, Ch. 29, 10
transferred in a group, Ch. 29, 11.3
change in tax status of entity/shareholders, Ch. 29, 10.9
current tax, Ch. 29, 5
defined benefit pension plans, Ch. 29, 10.7
discounting of current tax assets and liabilities, Ch. 29, 5.4
tax on refund of pension surplus, Ch. 29, 10.7.1
enacted/substantively enacted tax legislation, Ch. 29, 5.1
discontinued operations, Ch. 29, 10.6
changes to tax rates and laws enacted after the
disposal of an interest in a subsidiary that does not result in
reporting date, Ch. 29, 5.1.3
a loss of control, Ch. 29, 10.11
changes to tax rates and laws enacted before the
dividends and transaction costs of equity instruments,
reporting date, Ch. 29, 5.1.2
Ch. 29, 10.3
implications of the decision by the UK to withdraw
dividend subject to differential tax rate, Ch. 29, 10.3.1
from the EU, Ch. 29, 5.1.2
dividend subject to withholding tax, Ch. 29, 10.3.2
substantive enactment meaning, Ch. 29, 5.1.1
incoming dividends, Ch. 29, 10.3.4
intra-period allocation, presentation and disclosure,
intragroup dividend subject to withholding tax,
Ch. 29, 5.4
Ch. 29, 10.3.3
‘prior year adjustments’ of previously presented tax
tax benefits of distributions and transaction costs of
balances and expense, Ch. 29, 5.3
equity instruments, Ch. 29, 10.3.5
uncertain tax treatments, Ch. 29, 5.2
gain/loss in profit/loss and loss/gain outside profit/loss
&n
bsp; deferred tax, measurement, Ch. 29, 8
offset for tax purposes, Ch. 29, 10.5
different tax rates applicable to retained and distributed
gains and losses reclassified (‘recycled’) to profit/loss,
profits, Ch. 29, 8.5
Ch. 29, 10.4
effectively tax-free entities, Ch. 29, 8.5.1
debt instrument measured at fair value through OCI
withholding tax/distribution tax, Ch. 29, 8.5.2
under IFRS 9, Ch. 29, 10.4.1
discounting, Ch. 29, 8.6
recognition of expected credit losses with no change in
expected manner of recovery of assets/settlement of
fair value, Ch. 29, 10.4.2
liabilities, Ch. 29, 8.4
previous revaluation of PP&E treated as deemed cost on
assets and liabilities with more than one tax base,
transition to IFRS, Ch. 29, 10.10
Ch. 29, 8.4.3
retrospective restatements/applications, Ch. 29, 10.2
carrying amount, Ch. 29, 8.4.2
revalued and rebased assets, Ch. 29, 10.1
change in expected manner of recovery of an
non-monetary assets with a tax base determined in a
asset/settlement of a liability, Ch. 29, 8.4.11
foreign currency, Ch. 29, 10.1.1
depreciable PP&E and intangible assets, Ch. 29, 8.4.5
share-based payment transactions, Ch. 29, 10.8
determining the expected manner of recovery of assets,
allocation of tax deduction between profit/loss and
Ch. 29, 8.4.4
equity, Ch. 29, 10.8.1
investment properties, Ch. 29, 8.4.7
allocation when more than one award is outstanding,
non-depreciable PP&E and intangible assets, Ch. 29,
Ch. 29, 10.8.3
8.4.6
replacement awards in a business combination, Ch. 29,
non-amortised or indefinite life intangible assets,
10.8.5
Ch. 29, 8.4.6.B
share-based payment transactions subject to
PP&E accounted for using the revaluation model,
transitional provisions of IFRS 1 and IFRS 2,
Ch. 29, 8.4.6.A
Ch. 29, 10.8.6
other assets and liabilities, Ch. 29, 8.4.8
staggered exercise of awards, Ch. 29, 10.8.4
‘outside’ temporary differences relating to subsidiaries,
tax base, determining, Ch. 29, 10.8.2
branches, associates and joint arrangements,
business combinations, Ch. 29, 12
Ch. 29, 8.4.9
apparent immediate impairment of goodwill created by
‘single asset’ entities, Ch. 29, 8.4.10
deferred tax, Ch. 29, 12.3
tax planning strategies to reduce liabilities are not
measurement and recognition of deferred tax in, Ch. 29,
anticipated, Ch. 29, 8.4.1
12.1
legislation at the end of the reporting period, Ch. 29, 8.1
manner of recovery of assets and settlement of
changes to tax rates and laws enacted after the
liabilities, determining, Ch. 29, 12.1.1
reporting date, Ch. 29, 8.1.2
tax deductions for acquisition costs, Ch. 29, 12.4
changes to tax rates and laws enacted before the
reporting date, Ch. 29, 8.1.1
Index
173
backward tracing of changes in deferred taxation,
anticipated intragroup dividends in future periods,
Ch. 29, 8.1.1.B
Ch. 29, 7.5.4
disclosures relating to changes, Ch. 29, 8.1.1.C
consolidated financial statements of receiving
managing uncertainty in determining the effect of new tax
entity, Ch. 29, 7.5.4.A
legislation, Ch. 29, 8.1.1.A
separate financial statements of paying entity,
‘prior year adjustments’ of previously presented tax
Ch. 29, 7.5.4.B
balances and expense (income), Ch. 29, 8.3
calculation of, Ch. 29, 7.5.1
uncertain tax treatments, Ch. 29, 8.2
consolidated financial statements, Ch. 29, 7.5.1.A
unrealised intragroup profits and losses in consolidated
separate financial statements, Ch. 29, 7.5.1.B
financial, Ch. 29, 8.7
deductible temporary differences, Ch. 29, 7.5.3
intragroup transfers of goodwill and intangible assets,
other overseas income taxed only on remittance,
Ch. 29, 8.7.1
Ch. 29, 7.5.6
consolidated financial statements, Ch. 29, 8.7.1.C
taxable temporary differences, Ch. 29, 7.5.2
individual financial statements of buyer, Ch. 29,
unpaid intragroup interest, royalties, management
8.7.1.A
charges etc., Ch. 29, 7.5.5
individual financial statements of seller, Ch. 29,
restrictions on recognition of deferred tax assets, Ch. 29, 7.4
8.7.1.B
effect of disposals on recoverability of tax losses,
when the tax base of goodwill is retained by the
Ch. 29, 7.4.8
transferor entity, Ch. 29, 8.7.1.D
tax losses of retained entity recoverable against
deferred tax, recognition, Ch. 29, 7
profits of subsidiary, Ch. 29, 7.4.8.B
assets carried at fair value/revalued amount, Ch. 29, 7.3
tax losses of subsidiary disposed of recoverable
basic principles, Ch. 29, 7.1
against profits of retained entity, Ch. 29,
accounting profit, Ch. 29, 7.1.3.A
7.4.8.C
deductible temporary differences (deferred tax assets),
tax losses of subsidiary disposed of recoverable
Ch. 29, 7.1.2
against profits of that subsidiary, Ch. 29,
interpretation issues, Ch. 29, 7.1.3
7.4.8.A
taxable profit ‘at the time of the transaction,’ Ch. 29,
re-assessment of deferred tax assets, Ch. 29, 7.4.7
7.1.3.B
restrictions imposed by relevant tax laws, Ch. 29, 7.4.1
taxable temporary differences (deferred tax liabilities),
sources of ‘probable’ taxable profit, estimates of future
Ch. 29, 7.1.1
taxable profits, Ch. 29, 7.4.3
gains, Ch. 29, 7.7
sources of ‘probable’ taxable profit, taxable temporary
initial recognition exception, Ch. 29, 7.2
differences, Ch. 29, 7.4.2
acquisition of subsidiary not accounted for as a
tax planning opportunities, Ch. 29, 7.4.4
business combination, Ch. 29, 7.2.9
unrealised losses on debt securities measured at fair
acquisition of tax losses, Ch. 29, 7.2.1
value, Ch. 29, 7.4.5
changes to temporary differences after initial
unused tax losses and unused tax credits, Ch. 29, 7.4.6
recognition, Ch. 29, 7.2.4
‘tax-transparent’ (‘flow-through’) entities, Ch. 29, 7.6
change in carrying value due to revaluation,
deferred tax–tax bases and temporary differences, Ch. 29, 6
Ch. 29, 7.2.4.B
tax base, Ch. 29, 6.1
change in tax base due to deductions in tax return,
of assets, Ch. 29, 6.1.1
Ch. 29, 7.2.4.C
assets and liabilities whose tax base is not immediately
depreciation, amortisation/impairment of initial
apparent, Ch. 29, 6.1.3
carrying value, Ch. 29, 7.2.4.A
disclaimed/with no economic value, Ch. 29, 6.1.7
temporary difference altered by legislative change,
equity items with a tax base, Ch. 29, 6.1.5
Ch. 29, 7.2.4.D
of items not recognised as assets/liabilities in financial
initial recognition of compound financial instruments
statements, Ch. 29, 6.1.4
by the issuer, Ch. 29, 7.2.8
items with more than one tax base, Ch. 29, 6.1.6
initial recognition of goodwill, Ch. 29, 7.2.2
of liabilities, Ch. 29, 6.1.2
initial recognition of other assets and liabilities,
temporary differences, examples, Ch. 29, 6.2
Ch. 29, 7.2.3
assets and liabilities with no temporary difference,
intragroup transfers of assets with no change in tax
Ch. 29, 6.2.3
base, Ch. 29, 7.2.5
business combinations and consolidation, Ch. 29,
partially deductible and super-deductible assets,
6.2.1.E, 6.2.2.E
Ch. 29, 7.2.6
deductible, Ch. 29, 6.2.2
transactions involving the initial recognition of an asset
foreign currency differences, Ch. 29, 6.2.1.F, 6.2.2.F
and liability, Ch. 29, 7.2.7
hyperinflation, Ch. 29, 6.2.1.G
decommissioning costs, Ch. 29, 7.2.7.A
revaluations, Ch. 29, 6.2.1.C, 6.2.2.C
leases under IFRS 16 taxed as operating leases,
tax re-basing, Ch. 29, 6.2.2.D
Ch. 29, 7.2.7.B
taxable, Ch. 29, 6.2.1
‘outside’ temporary differences relating to subsidiaries,
transactions that affect profit of loss, Ch. 29, 6.2.1.A,
branches, associates and joint arrangements, Ch. 29, 7.5
6.2.2.A
174 Index
Income taxes —contd
legal merger of parent and subsidiary, Ch. 8, 4.4.3.B
deferred tax–tax bases and temporary differences —contd
parent exchanges PP&E for a non-monetary asset of
temporary differences, examples —contd
the subsidiary, Ch. 8, 4.4.1.B
transactions that affect statement of financial position,
sale of PP&E from the parent to the subsidiary for an
Ch. 29, 6.2.1.B, 6.2.2.B
amount of cash not representative of the fair value
definitions, Ch. 29, 3, 4.1
of the asset, Ch. 8, 4.4.1.A
effectively tax-free entities, Ch. 29, 4.5
subsidiary transferring business to the parent, Ch. 8,
hybrid taxes (including minimum taxes), Ch. 29, 4.1.2
4.4.3.A
interest and penalties, Ch. 29, 4.4
transactions involving non-monetary assets, Ch. 8,
investment tax credits, Ch. 29, 4.3
4.4.1
levies, Ch. 29, 4.1.1
transfers between subsidiaries, Ch. 8, 4.4.1.E
withholding and similar taxes, Ch. 29, 4.2
transfers of businesses between parent and subsidiary,
International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards Page 991
