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8/17/2019 New Microsoft PowerPoint Presentation [Autosaved]Gg

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Topic 3 Week 6Low Chui Fen 1112701885

Boong Lek Yang 1112702060

Kek Yik Joe 1112702574

Yap Kian Jin 1121116617


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Tuo!ia" #ue$ion$

% $ae&en on he o'(eci)e$ o* *inancia" $ae&en +i,e, he

concepua" *!a&ewo!k- ha$ a"wa.$ 'een !ecogni/e a$ u!gen ane$$enia" i* e'ae o)e! a"e!nai)e $ana!$ an !epo!ing

echniue$ i$ o 'e !e$o")e '. !ea$on an "ogic,

1, p"ain he pu!po$e o* a concepua" *!a&ewo!k,

2, Li$ *i)e 'ene*i$ o* a concepua" *!a&ewo!k,

3, Wha a!e he e$$enia" e"e&en$ i$c"o$e in CF

4, Li$ an ep"ain F accouning p!incip"e$,


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Question 1

T o a s s i s t I AS B

I n d e v e l o p

T o a s s i s t

I A S B

I n p r o m o

t e

T o a c t a

s

t h e

g u i d a

n c e

T

o

a s s

i s t

U s e r s Thepurpose of

aConceptualFramework

T o a s s i s t

A c c o u n t a n t

T o a s s i s t

S t a

n d a r d

s e t t i n

g

To assis t

Audi tors


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Thepurpose

a

ConceptuFramewo

T o a s s i

I AS B I n d e v e l o

•

Assist IASB indevelopment of thefuture accountingstandards

• Review of existing

accounting standard• Ensuring consistencyacross standards


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Thepurpose

a

ConceptuFramewo

I n p

•

Assist IASB inpromotingharmonisation ofregulations,accounting standardsand procedures

• Provide a basis forreducing the numberof alternativeaccounting treatmentpermitted by

accounting standards


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•

Assist standardsettingbodies such as the!ASB and the IASB indeveloping standardsof "nancial reporting

• Enable all interested

parties to gain a betterunderstanding of thereasons for standardsetters# conclusions

Thepurpose

a

ConceptuFramewo


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•

Assist auditors informing an opinion

• $hether "nancialstatements complywith internationalaccounting standards

To assis t

Audi tors

Thepurpose

a

ConceptuFramewo


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•

Assist preparers of"nancial statementssuch as accountant inapplying IASBapproved accountingstandards

Thepurpose

a

ConceptuFramewo

T o a s s i s t

A c c o u n t a n t


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•

Assist users of"nancial statementsin interpreting theinformation containedin "nancialstatements

• %onformity with IASBapproved accountingstandards

T o

a s s

i s t

U s e r s

Thepurpose

a

ConceptuFramewo


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•

&uidance to providemost consistent wayto prepare the"nancial statement

Thepurpose

a

ConceptuFramewo

T o a

c t a s

t h e

g u i d a

n c e


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e bene"ts of a %onceptual !r

Bene"ts(

Bene"ts)

Bene"ts

* Bene"ts+

Bene"ts


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Bene"ts( %onsistent, logical reporting

re-uirement


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Increased internationalcompatibility of Accounting

Standards

Bene"ts)


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Enhanced accountability

Bene"ts*


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Enhanced understanding ofreporting re-uirements

Bene"ts+


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.ore economical standardsettings

Bene"ts

SE/E0 1E2 %30%EP45A6 !RA.E


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SE/E0 1E2 %30%EP45A6 !RA.EE6E.E04S

C!"C#$TUA%F&A'#(!&)

#lements

The !*+ective ofFinancial Statement

QCha

S

UnderlAssump

The #lemeFinancial Sta

&ecognition of the #lementsof Financial Statements

'easurement of thelements of Financial

Statements

Concepts of Capital -Capital 'aintenance 1

.

/

0

2

3

SE/E0 1E2 %30%EP45A6 !RA.E


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1The !*+ective

Financial Statem

C!"C#$TUA%F&A'#(!&)

#lements

•

!inancial Posi• !inancial

Performance

• %hanges in!inancial Posi


SE/E0 1E2 %30%EP45A6 !RA.E


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.

Underl,ingAssumption

C!"C#$TUA%F&A'#(!&)

#lements

•

Accrual Basis• &oing %oncer


SE/E0 1E2 %30%EP45A6 !RA.E


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/

QualitativeCharacteristic

Financial Statem

C!"C#$TUA%F&A'#(!&)

#lements

•

5nderstandab• Relevance

• Reliability

• %omparability

• %onstraints onrelevant 7 relinformation

• 4rue 7 !air vie!air Presentat


SE/E0 1E2 %30%EP45A6 !RA.E


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0

The #lementsFinancial Statem

C!"C#$TUA%F&A'#(!&)

#lements

•

!inancial Positio• Assets

• 6iabilities

• E-uity

• Performance

• Income

• Expenses

• %apitalmaintenancead9ustments


SE/E0 1E2 %30%EP45A6 !RA.E


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&ecognition of #lements of Fina

Statements

C!"C#$TUA%F&A'#(!&)

#lements

•

Reliability of.easurement

• Recognition oassets, liabilitincome expen


SE/E0 1E2 %30%EP45A6 !RA.E


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2

'easurement o#lements of Fina

Statements

C!"C#$TUA%F&A'#(!&)

#lements

•

.easurementtoward Asset6iabilities, E-Income 7Expenses


SE/E0 1E2 %30%EP45A6 !RA.E


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3

Concepts of CapCapital 'ainten

C!"C#$TUA%F&A'#(!&)

#lements

•

%oncepts of%apital

• %oncepts of%apital.aintenance the

determinationpro"t


!35R accounting princip


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:istorical%ost

!ull;isclosure

RevenueRecognition

.atching



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:istorical%ost

4istoricalCost

• Initialrecording

"nancialtransactiomust be attheir origincashe-uivalentcost<



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!ull

;isclosure

Full 5isclosur

• !inancialstatement

containenoughinformatiothat they anotmisleading



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.atching

'atching

• A companyrecords revein the accou

period whenservices arecompleted ogoods aredelivered tocustomer, nwhen thecustomer mpayment<



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RevenueRecognition

&evenu&ecognit

• A companyrecordsexpenses iaccountingperiod in wit helped crrevenue, nwhen paymwas made the expens


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Tuo!ia" %ci)iie$

p"ain he &ain change$ p!opo$e in he new po$u!e

!a* on Concepua" F!a&ewo!k '. 9%:B i$$ue on 28 ;a.2015, You nee o p!epa!e 20 &inue$ p!e$enaion


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;ain change$ +9n e!& o* chape!$-

'(eci)e


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'(eci)e

9n e$c!i'ing he o'(eci)e o* gene!a" pu!po$e *inancia"

!epo!ing< CF does not use the word ‘stewardship=, :o&e ha)eine!p!ee hi$ a$ &eaning ha he Concepua" F!a&ewo!k no

"onge! !ea$ in*o!&aion a'ou $ewa!$hip a$ pa! o* wha i$neee o &ee he o'(eci)e o* *inancia" !epo!ing,

Cu!!en o'(eci)e o* gene!a" pu!po$e *inancia" !epo!ing>

The objective of general purpose financial reporting is to

provide financial information about the reporting entity that

is useful to existing and potential investors, lenders andother creditors (users of financial statements) in making

decisions about providing resources to the entity.


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'(eci)e +con=-

?9n*o!&aion u$e*u" in (uging &anage&en@$ a'i"i. o ui"i/e

ene!p!i$e !e$ou!ce$ e**eci)e". in achie)ing he p!i&a!.

ene!p!i$e goa"A ?when in)e$ing in a co&pan.< .ou o no $i&p". 'u. $o&e

a$$e$ an "ia'i"iie$< .ou e$$enia"". !u$ he inenion$ o*

he co&pan., i,e, he &anage&en an he wa. he. inen

o $ewa! he capia" en!u$e o he&, he!wi$e< he

in)e$o! wou" ha)e 'ough ohe! a$$e$ o! $ha!e$A

?in no ha)ing $ewa!$hip a$ an o'(eci)e< he!e i$ a ange!

in he *uu!eA

Sources from the article “ommentary on phase ! of the revised conceptual frame"ork#

$mplications for global financial reporting% &ajni 'ala armod hand (*+-)


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'(eci)e +con=-

9n 2015 po$u!e !a* p!opo$e$>

To gi)e &o!e p!o&inence< wihin he o'(eci)e o* *inancia"!epo!ing< o he i&po!ance o* p!o)iing in*o!&aion

neee o a$$e$$ &anage&en=$ $ewa!$hip o* he

eni.=$ !e$ou!ce$


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#ua"iai)e Cha!ace!i$ic$

:ince 2010< he Concepua" F!a&ewo!k ha$ no "onge! ieni*ie

wa$ !e"ia'i"i. i$ no "onge! ieni*ie a$ a ua"iai)e

cha!ace!i$ic o* u$e*u" *inancia" in*o!&aion, %n e$c!ipion o**aih*u" !ep!e$enaion wa$ oo gene!a", %$ a !e$u" i *ai"e o

ieni*. he kin o* in*o!&aion ha $hou" 'e p!e$ene in

*inancia" $ae&en$, Thei! &ain conce!n $ee&$ o 'e ha

&ea$u!e&en unce!ain. &ake$ *inancia" in*o!&aion "e$$

u$e*u", 9n !e$pon$e< he 9%:B p!opo$e$ o c"a!i*. ha

&ea$u!e&en unce!ain. i$ one *aco! ha can &ake *inancia"in*o!&aion "e$$ !e"e)an,


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#ua"iai)e Cha!ace!i$ic$

9n hi$ po$u!e !a* p!opo$e$>

+a- To c"a!i*. ha &ea$u!e&en unce!ain. i$ one *aco!ha can &ake *inancia" in*o!&aion "e$$ !e"e)an< an

ha he!e i$ a !aeo** 'eween he "e)e" o*

&ea$u!e&en unce!ain. an ohe! *aco!$ ha &ake

in*o!&aion !e"e)an an

+'- To coninue o ieni*. !e"e)ance an *aih*u"

!ep!e$enaion a$ he wo *una&ena" ua"iai)e

cha!ace!i$ic$ o* u$e*u" *inancia" in*o!&aion,

Change$> epo!ing ni.


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epo!ing ni.

1, D!o'"e& Face+i$ing

Concepua"F!a&ewo!k-

• Eo c"ea! guie"ine e$c!ipion an 'ouna!ie$ o*!epo!ing eni.

2,eco&&enaion$+po$u!e !a*28,5,2015-

(i) Description of reporting entity• ni. ha choo$e$G !eui!e o p!epa!e gene!a" pu!po*inancia" $ae&en$,• Eo nece$$a!i". "ega" eni.,• Do!ion o* eni. G H2 eniie$,

Change$> epo!ing ni.

epo!ing ni.


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epo!ing ni.

2,eco&&enaion$+po$u!e !a*28,5,2015-

(ii) Boundary of reporting entityee!&ine '. 2 wa.$>• i!ec Con!o"• 9ni!ec Con!o"

Differences Direct Control Indirect Control

1, Financia":ae&en o*!epo!ing eni.

ncon$o"iae*inancia"$ae&en$

Con$o"iae*inancia"$ae&en$

2, epo!e '.pa!en$

cono&ic!e$ou!ce$con!o""ei!ec".

cono&ic!e$ou!ce$con!o""eini!ec".

3, eu!n$ oin)e$o!,< "ene!$an ohe!c!eio!$

epen on he*uu!e ne ca$h*"ow$ o* hepa!en eni.

epen pa!". onhe *uu!e neca$h in*"ow$ an'ene*i$ *"ow ino$u'$iia!.,

4, $e*u"in*o!&aion

Le$$ u$e*u" ;o!e u$e*u"

Change$> "e&en$ o* Financia" :ae&en

bl / d ( i i l / k)


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D!o'"e&$ %$$e Lia'i"i. ui. 9nco&e pen$e$

MainProblem:

e*iniion i$$u'(eci)e<)ague an'!oa

+i- Con*u$ea'ou ?epece

*uu!e econo&ic'ene*iA-“xpected% "illbe interpreted asconveying

probability andnot provide

guideline on the

minimumthreshold ,+ii- &pha$i/e&o!e onieni*.ing he*uu!e econo&ic'ene*i$,

+i- Con*u$ea'ou ?epece

*uu!e econo&ic'ene*iA-“xpected% "illbe interpretedas conveying

probability andnot provide

guideline on the

minimumthreshold.+ii- Lack o*guie"ine on(u$i*. pa$$e)en $u**icieno c!eaep!e$en

o'"igaion,

Eo e**ec,

roblems /aced (xisting onceptual /rame"ork)



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eco&&enaion 1, %::T

Mainecommendation:e)i$e he e*iniion

!"isting C#:%n a$$e i$ a !e$ou!ce which i$ con!o""e '. an enia !e$u" o* pa$ e)en an *uu!e econo&ic 'ene*i$ epece o *"ow ino he eni.,

Current !D:%n a$$e i$ he p!e$en econo&ic !e$ou!ce con!o""ean eni. a$ a !e$u" o* pa$ e)en$,• D!e$en I cono&ic !e$ou!ce$ an !igh o u$e hea$$e$ &u$ ei$ on 'a"ance $hee ae,•

cono&ic !e$ou!ce$ I !igh o p!ouce econo&ic'ene*i$,• cono&ic 'ene*i nee no 'e ce!ain 'u &u$ capo p!ouce econo&ic 'ene*i$,• %$$e i$ a !e$ou!ce< no u"i&ae ca$h in*"ow,

&ecommendation (xposure 0raft *1.-.*+-)



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eco&&enaion 2, L9%B9L9TY


!"isting C#:% "ia'i"i. i$ a p!e$en o'"igaion o* he eni. a!i$ing*!o& pa$ e)en$< he $e"e&en$ o* which i$ epeco !e$u" in an ou*"ow *!o& he eni. o* !e$ou!ce$e&'o.ing econo&ic 'ene*i$,

Current !D:% "ia'i"i. i$ a p!e$en o'"igaion o* he eni. o !aan econo&ic !e$ou!ce a$ a !e$u" o* pa$ e)en$,• D!e$en I cono&ic o'"igaion an eni. i$ he o'"&u$ ei$ on 'a"ance $hee ae,•

cono&ic o'"igaion I unconiiona" p!o&i$e$ o giecono&ic !e$ou!ce$,• D!e$en o'"igaion nee no 'e ce!ain 'u &u$capa'"e o !an$*e! he econo&ic !e$ou!ce$ in *uu!e




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eco&&enaion 3, #9TY 4, 9EC; 5, DE::


e&ain he $a&e G Eo $igni*ican change$




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9&pac onChange$ Ga&p"e

%$$e Lia'i"i. ui. 9nco&e p

9&pac$ Ga&p"e$>:o&e o* heie&$ a!e!ec"a$$i*ie,

+i- Ca"" pion• Ba$e on <ca"" opion wi""'e caego!i/e a$a$$e• Capa'i"i. op!ouce

econo&ic'ene*i$,

+i- :an!ea.o'"igaion• Ba$e on <$an!ea.o'"igaion wi""'e !ecogni/e a$"ia'i"i.,•

Capa'i"i. o!an$*e! heecono&ic!e$ou!ce$•,g> o'"igaionune! a p!oucwa!!an.

$mpact on hanges 2 xample


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ecogniion e!ecogniion

D!oce$$ o* capu!ing an a$$e$ an "ia'i"i. *o! inc"u$ion

o* he $ae&en o* *inancia" po$iion,

ecogniion


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i$ing !ecogniion !eui!e&en +p!o'a'i"i. an

!e"ia'"e &ea$u!e&en- ha)e cau$e i$$ue$ in he pa$, :o&e ei$ing :ana!$ o no app". a

p!o'a'i"i. !ecogniion c!ie!ion,

Fo! ea&p"e< 9F: Financia" 9n$!u&en$, Tho$e ha

o app". $uch a c!ie!ion u$e i**e!en p!o'a'i"i.

h!e$ho"$, The$e inc"ue Mp!o'a'"e=< M&o!e "ike". hanno=< M)i!ua"". ce!ain= an M!ea$ona'". po$$i'"e=,

D!o'"e&


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ecogniion C!ie!ia

ne! he < an eni. wou" !ecogni/e an a$$e o! a

"ia'i"i. i* $uch !ecogniion p!o)ie$ *inancia" $ae&en

u$e!$ wih>

i, e"e)an in*o!&aion a'ou he a$$e o! he "ia'i"i. an

a'ou an. inco&e< epen$e$ o! change$ in eui.,

ii, % *aih*u" !ep!e$enaion o* he a$$e o! he "ia'i"i. an

o* an. inco&e< epen$e$ o! change$ in eui.,

iii, 9n*o!&aion ha !e$u"$ 'ene*i$ eceeing he co$ o*

p!o)iing ha in*o!&aion,

Th i i " ' h


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Tho$e c!ie!ia &a. no a"wa.$ 'e &e when one o! &o!e

o* he *o""owing app"ie$>

i, 9 i$ unce!ain whehe! an a$$e o! "ia'i"i. ei$$

ii, The!e i$ on". a "ow p!o'a'i"i. o* *uu!e in*"ow$

+ou*"ow$- o* econo&ic 'ene*i$ *!o& he a$$e

+"ia'i"i.- o!

iii, The "e)e" o* &ea$u!e&en unce!ain. i$ $o high ha

he !e$u"ing in*o!&aion ha$ "i"e !e"e)ance,

9


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%n eni. $hou" !ecogni$e a"" i$ a$$e$ an "ia'i"iie$<

un"e$$ he 9%:B ecie$ ha>

i, ecogni$ing an a$$e o! a "ia'i"i. wou" p!o)ie u$e!$

o* *inancia" $ae&en$ wih in*o!&aion ha i$ no

!e"e)an< o! i$ no $u**icien". !e"e)an o (u$i*. he

co$ o!

ii, Eo &ea$u!e o* an a$$e o! a "ia'i"i. wou" !e$u" in a

$u**icien". *aih*u" !ep!e$enaion o* 'oh ha a$$eo! "ia'i"i. an he !e$u"ing inco&e o! epen$e,

9&pac

ii


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D!oce$$ o* !e&o)ing a"" o! a pa! o* an

a$$e$ o! "ia'i"i. *!o& he $ae&en

o* *inancia" po$iion,

e!ecogniion

Th i i C " F k i


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The ei$ing Concepua" F!a&ewo!k oe$ no p!o)ie

guiance on e!ecogniion, The po$u!e !a*

p!opo$e$ guiance ai&e a p!o)iing a *aih*u"

!ep!e$enaion o*>

i, The a$$e$ an "ia'i"iie$ !eaine a*e! a !an$acion

o! ohe! e)en ha "e o e!ecogniion an

ii, The change in he eni.=$ a$$e$ an "ia'i"iie$ a$ a

!e$u" o* ha !an$acion o! ohe! e)en,

The i$cu$$ion Dape! $ugge$e ha po$$i'"e


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The i$cu$$ion Dape! $ugge$e ha po$$i'"e

app!oache$ *o! hi$ cou" inc"ue>

+i- nhance i$c"o$u!e

+ii- D!e$ening an. !igh$ o! o'"igaion$ !eaine on a "ine

ie& i**e!en *!o& he "ine ie& ha wa$ u$e *o!

he o!igina" !igh$ o! o'"igaion$< o high"igh he

g!eae! concen!aion o* !i$k o!

+iii- Coninuing o !ecogni$e he o!igina" a$$e o! "ia'i"i.

an !eaing he p!ocee$ !ecei)e o! pai *o! he

!an$*e! a$ a "oan !ecei)e o! g!ane

The 9%:B noe ha i i$ po$$i'"e o !e$o")e $o&e< 'u


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The 9%:B noe ha i i$ po$$i'"e o !e$o")e $o&e< 'u

no a""< appa!en con*"ic$ 'eween he con!o"

app!oach an he !i$k$an!ewa!$ app!oach '.

con$ie!ing>

i, whehe! a !an$*e!ee acui!e$ an a$$e a$ a p!incipa"o! a$ an agen an

ii, he *ac ha< in $o&e ca$e$< coninuing epo$u!e o

)a!iaion$ in 'ene*i$ +$o&ei&e$ known a$ epo$u!e

o he $igni*ican !i$k$ an !ewa!$ o* owne!$hip- i$ an

inicao! o* coninuing con!o",

;ea$u!e&en


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;ea$u!e&en

D!o'"e&>

Li"e guiance i$ p!o)ie on &ea$u!e&en an when

pa!icu"a! &ea$u!e&en 'a$i$ $hou" 'e u$e

9&pac G ea&p"e$>


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9&pac G ea&p"e$>

;ea$u!e a"" he a$$e$ an "ia'i"iie$ on he $a&e o! one 'a$i$

;ea$u!e a *ai! )a"ue 'a$i$

:o&e o* he u$e!$ &a. con$ie! in*o!&aion a'ou cu!!en &a!k p!ice$ o 'e "e$$ !e"e)an han in*o!&aion a'ou &a!gin$ gene!a

'. pa$ !an$acion$

;ea$u!e a hi$o!ica" co$ 'a$i$

Fai" o p!o)ie !e"e)an in*o!&aion o he u$e!$ o* *inancia"

$ae&en

Na! o ee!&ine he 'a$i$ u$e $ince he !e"e)ance o* a pa!icu"a!


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&ea$u!e&en epen on how he u$e!$ a!e "ike". o a$$e$$ how an

a$$e o! a "ia'i"i. con!i'ue o he eni.=$ *uu!e ca$h *"ow

Fai! )a"ue 'a$i$

O i$po$a" o* a$$e$ con!i'ue o he eni.=$ *uu!e ca$h *"ow O e!i)ai)e$ $uch a$ *inancia" a$$e$ o! "ia'i"iie$ ha !api".

change$ in )a"ue

Ni$o!ica" co$ 'a$i$

O $e!$ wi"" o*en a$$e$$ how $uch a$$e$ wi"" con!i'ue o *uu!e

ca$h *"ow$ a'ou !an$acion$ an he con$u&pion o* a$$e$ o

ieni*. pa$ &a!gin$ an e$i&ae *uu!e &a!gin$

Faih*u" !ep!e$enaion oe$ ha)e $o&e i&p"icaion$ in e!&$ o* he

" i * ' i


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$e"ecion o* &ea$u!e&en 'a$i$

9%:B &a. nee o con$ie! how 'e$ o po!!a. an. "ink 'eween

ie&$ when eciing whehe! a pa!icu"a! &ea$u!e&en *aih*u"".

!ep!e$en$ an eni.=$ *inancia" po$iion an pe!*o!&ance

:a&e &ea$u!e&en app!oach i$ encou!age o u$e *o! !e"ae

a$$e$ o! "ia'i"iie$ $ince he u$e o* i**e!en &ea$u!e&en$ &a.

"ea o &ea$u!e&en incon$i$enc. p!o'"e&

Con*"ic wa$ c!eae in e!&$ o* he u$e o* &ea$u!e&en 'a$i$ $inci wa$ una'"e o $ai$*. 'oh ua"iai)e cha!ace!i$ic$ o* he u$e*

*inancia" in*o!&aion

eco&&enaion G $ugge$ion>


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The app"icaion o* $ing"e &ea$u!e&en 'a$i$ *o! a"" a$$e$ an

"ia'i"iie$ i$ no encou!age

:ugge$ion on he u$e o* &ea$u!e&en 'a$i$ *o! a pa!icu"a! a$$e o

"ia'i"i. $hou" con$ie! he *o""owing e"e&en$> Now he a$$e$ con!i'ue o he *uu!e ca$h *"ow$ o! how he en

wi"" *u"*i" o! $e"e he "ia'i"i.

Wha in*o!&aion ha &ea$u!e&en 'a$i$ wi"" p!ouce in he

$ae&en o* *inancia" po$iion an he $ae&en o* co&p!ehen$i

inco&e

The nu&'e! o* i**e!en &ea$u!e&en$ u$e $hou" 'e he $&a""e$

nu&'e! nece$$a!. o p!o)ie !e"e)an in*o!&aion

D!e$enaion an i$c"o$u!e


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D!e$enaion an i$c"o$u!e

D!o'"e&>

Eo p!incip"e$ p!o)ie in he ei$ing concepua"*!a&ewo!k o ee!&ine +a- which ie&$ o* inco&e o!

epen$e $hou" 'e p!e$ene in D!o*i an Lo$$ +'- which

ie&$ $hou" 'e p!e$ene in he! Co&p!ehen$i)e 9nco&e

+C9-

% $ecion on i$c"o$u!e$ in= p!o)ie which "ea o'u!en on p!epa!e!$ an *ai" o i$c"o$e &o!e !e"e)an

in*o!&aion o in)e$o!$

9&pac G ea&p"e$>


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p p

%cco!ing o P%%D< !ea"i/e gain$ a!e inc"ue in D!o*i

an Lo$$ +DGL- whi"e un!ea"i/e gain$ $hou" 'e i$c"o$e in

he! Co&p!ehen$i)e 9nco&e +C9-

i**e!en !ea&en$ a!e aope in e!&$ o* un!ea"i/egain$ *o!

!e$peci)e $ana!$

9%: 16 D!ope!. D"an an uip&en

9%: 40 9n)e$&en D!ope!ie$

Th " i*i i * * i DGL + "i -


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The !ec"a$$i*icaion o* *!o& eui. o DGL +!ec.c"ing-

i**e!en !ea&en$ a!e aope in e!&$ o* whe!e gain$ o! "o$$e$

a!e !ec"a$$i*ie *!o& eui. o DGL a$ a !ec"a$$i*icaion a(u$&en

9%: 21 The **ec$ o* Change$ in Fo!eign change ae$

9%: 16 D!ope!. D"an an uip&en

Eo !ec"a$$i*icaion !u"e i$ p!o)ie

Pain$ ha ha)e 'eco&e !ea"i/e *!o& !an$acion$ in he

accouning pe!io a!e no *u"". !epo!e in he D!o*i an Lo$$ +DGL-

The recording of asset purchases, revaluation, disposal and the transferto RE (IAS 116 - Property, Plant and Equipment)


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On purchase $m $m

Dr Land PPE 10

Cr Cash 10

On revaluation $m $m

Dr Land PPE 2

Cr OCE and

recognized

in OCI

2

Sources from the article “34TS 3/ &3/$T 3& 53SS !40 3T6&

3'&64S$7 $43' (*+-)%

On disposal $m $m


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Dr Cash 13

Cr Land PPE 12

Cr P/L 1

On transfer$m $m

Dr OCE 2

Cr Retained earnings 2

Sources from the article “34TS 3/ &3/$T 3& 53SS !40 3T6&

3'&64S$7 $43' (*+-)%

eco&&enaion G $ugge$ion >

Two app!oache$ a!e !eco&&ene ha a!e u$e o e$c!i'e which


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Two app!oache$ a!e !eco&&ene ha a!e u$e o e$c!i'e which

ie&$ cou" 'e inc"ue in he! Co&p!ehen$i)e 9nco&e +C9-

?na!!owA app!oach an

?'!oaA app!oach The app!oache$ !eco&&ene in g!ouping C9 ie&$ ha$ e)o")e in

h!ee caego!ie$

'!iging ie&$

&i$&ache !e&ea$u!e&en$

!an$io!. !e&ea$u!e&en$

B!iging ie&$ $a&e a$$e o! "ia'i"i. i$ !ep!e$ene in he

$ae&en o* *inancia" po$iion an i&pac$ p!o*i

"o$$ u$ing wo i**e!en &ea$u!e&en$

;i$&ache !e&ea$u!e&en$


64/66

a!i$e$ when o**$eing i&pac o* "inke !an$acion$ o! ohe! e)en

i$ no .e !ecogni/e

T!an$io!. !e&ea$u!e&en$ a!i$e when an ie& &ee a"" he

coniion$>

a$$e$ ui"i/e G "ia'i"iie$ $e"e o)e! he "ong e!&

cu!!en pe!io !e&ea$u!e&en i$ epece o !e)e!$e *u"".< o!

change $igni*ican".< o)e! he ho"ing pe!io o* he a$$e o! "ia'i"

cu!!en pe!io !e&ea$u!e&en enhance$ he !e"e)ance o* p!o*i o

"o$$

When he ie&$ !ecogni/e in C9 $hou" 'e !ec"a$$i*ie ino p!o*i


65/66

o! "o$$

B!iging ie&$

ec.c"e a$ a con$euence o* he &ea$u!e&en 'a$i$ p!e$ene i p!o*i o! "o$$ +DGL-

;i$&ache !e&ea$u!e&en$

ec.c"e when he ie& can 'e p!e$ene wih he &ache ie&

T!an$io!. !e&ea$u!e&en$

ec.c"e *o! $o&e .pe$ o* C9 ie&$ i* an when i p!o)ie$

!e"e)an in*o!&aion in p!o*i an "o$$ +DGL-


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