
COMMISSION REGULATION (EC) No 1725/2003 of 29 September 2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (Text with EEA relevance) (repealed) 

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Article 1 
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Article 2 
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ANNEX
INTERNATIONAL ACCOUNTING STANDARD 1 Presentation of Financial Statements 

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OBJECTIVE 

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SCOPE 

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PURPOSE OF FINANCIAL STATEMENTS 

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COMPONENTS OF FINANCIAL STATEMENTS 

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DEFINITIONS 

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OVERALL CONSIDERATIONS 
Fair Presentation and Compliance with IFRSs 

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Going Concern 

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Accrual Basis of Accounting 

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Consistency of Presentation 

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Materiality and Aggregation 

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Offsetting 

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Comparative Information 

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STRUCTURE AND CONTENT 
Introduction 

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Identification of the Financial Statements 

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Reporting Period 

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Balance Sheet 
Current/Non-current Distinction 

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Current Assets 

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Current Liabilities 

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Information to be Presented on the Face of the Balance Sheet 

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Information to be Presented either on the Face of the Balance Sheet or in the Notes 

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Income Statement 
Profit or Loss for the Period 

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Information to be Presented on the Face of the Income Statement 

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Information to be Presented either on the Face of the Income Statement or in the Notes 

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Statement of Changes in Equity 

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Cash Flow Statement 

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Notes 
Structure 

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Disclosure of Accounting Policies 

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Key Sources of Estimation Uncertainty 

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Capital 

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Other Disclosures 

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EFFECTIVE DATE 

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WITHDRAWAL OF IAS 1 (REVISED 1997) 

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APPENDIX Amendments to Other Pronouncements 

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A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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INTERNATIONAL ACCOUNTING STANDARD 2 Inventories 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS 

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MEASUREMENT OF INVENTORIES 

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Cost of Inventories 

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Costs of Purchase 

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Costs of Conversion 

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Other Costs 

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Cost of Inventories of a Service Provider 

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Cost of Agricultural Produce Harvested from Biological Assets 

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Techniques for the Measurement of Cost 

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Cost Formulas 

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Net Realisable Value 

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RECOGNITION AS AN EXPENSE 

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DISCLOSURE 

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EFFECTIVE DATE 

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WITHDRAWAL OF OTHER PRONOUNCEMENTS 

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APPENDIX Amendments to Other Pronouncements 

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A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERNATIONAL ACCOUNTING STANDARD IAS 7 (REVISED 1992) 
Cash flow statements 

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CONTENTS 

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OBJECTIVE 

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SCOPE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BENEFITS OF CASH FLOW INFORMATION 
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DEFINITIONS 
 6. The following terms are used in this Standard with the meanings specified: 

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Cash and cash equivalents 
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PRESENTATION OF A CASH FLOW STATEMENT 
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Operating activities 
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 14. Cash flows from operating activities are primarily derived from the principal revenue-producing activities of the enterprise. Therefore, they generally result from the transactions and other events that enter into the determination of net profit or loss. Examples of cash flows from operating activities are: 

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Investing activities 
 16. The separate disclosure of cash flows arising from investing activities is important because the cash flows represent the extent to which expenditures have been made for resources intended to generate future income and cash flows. Examples of cash flows arising from investing activities are: 

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Financing activities 
 17. The separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of capital to the enterprise. Examples of cash flows arising from financing activities are: 

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REPORTING CASH FLOWS FROM OPERATING ACTIVITIES 
 18. An enterprise should report cash flows from operating activities using either: 

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 19. Enterprises are encouraged to report cash flows from operating activities using the direct method. The direct method provides information which may be useful in estimating future cash flows and which is not available under the indirect method. Under the direct method, information about major classes of gross cash receipts and gross cash payments may be obtained either: 

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 20. Under the indirect method, the net cash flow from operating activities is determined by adjusting net profit or loss for the effects of: 

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REPORTING CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES 
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REPORTING CASH FLOWS ON A NET BASIS 
 22. Cash flows arising from the following operating, investing or financing activities may be reported on a net basis: 

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 23. Examples of cash receipts and payments referred to in paragraph 22(a) are: 

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 24. Cash flows arising from each of the following activities of a financial institution may be reported on a net basis: 

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FOREIGN CURRENCY CASH FLOWS 
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 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EXTRAORDINARY ITEMS 
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 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTEREST AND DIVIDENDS 
 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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TAXES ON INCOME 
 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES 
 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES AND OTHER BUSINESS UNITS 
 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 40. An enterprise should disclose, in aggregate, in respect of both acquisitions and disposals of subsidiaries or other business units during the period each of the following: 

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 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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NON-CASH TRANSACTIONS 
 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 44. Many investing and financing activities do not have a direct impact on current cash flows although they do affect the capital and asset structure of an enterprise. The exclusion of non-cash transactions from the cash flow statement is consistent with the objective of a cash flow statement as these items do not involve cash flows in the current period. Examples of non-cash transactions are: 

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COMPONENTS OF CASH AND CASH EQUIVALENTS 
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OTHER DISCLOSURES 
 48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 50. Additional information may be relevant to users in understanding the financial position and liquidity of an enterprise. Disclosure of this information, together with a commentary by management, is encouraged and may include: 

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 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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EFFECTIVE DATE 
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INTERNATIONAL ACCOUNTING STANDARD 8 Accounting Policies, Changes in Accounting Estimates and Errors 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS 

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ACCOUNTING POLICIES 
Selection and Application of Accounting Policies 

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Consistency of Accounting Policies 

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Changes in Accounting Policies 

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Applying Changes in Accounting Policies 

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Retrospective application 

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Limitations on retrospective application 

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Disclosure 

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CHANGES IN ACCOUNTING ESTIMATES 

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Disclosure 

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ERRORS 

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Limitations on Retrospective Restatement 

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Disclosure of Prior Period Errors 

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IMPRACTICABILITY IN RESPECT OF RETROSPECTIVE APPLICATION AND RETROSPECTIVE RESTATEMENT 

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EFFECTIVE DATE 

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WITHDRAWAL OF OTHER PRONOUNCEMENTS 

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APPENDIX Amendments to Other Pronouncements 

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A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERNATIONAL ACCOUNTING STANDARD 10 Events after the Balance Sheet Date 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS 

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RECOGNITION AND MEASUREMENT 
Adjusting Events after the Balance Sheet Date 

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Non-adjusting Events after the Balance Sheet Date 

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Dividends 

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GOING CONCERN 

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DISCLOSURE 
Date of Authorisation for Issue 

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Updating Disclosure about Conditions at the Balance Sheet Date 

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Non-adjusting Events after the Balance Sheet Date 

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EFFECTIVE DATE 

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WITHDRAWAL OF IAS 10 (REVISED 1999) 

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APPENDIX Amendments to Other Pronouncements 

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A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERNATIONAL ACCOUNTING STANDARD IAS 11 (REVISED 1993) 
Construction Contracts 

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CONTENTS 

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OBJECTIVE 

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SCOPE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 
 3. The following terms are used in this Standard with the meanings specified: 

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 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. For the purposes of this Standard, construction contracts include: 

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 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
COMBINING AND SEGMENTING CONSTRUCTION CONTRACTS 
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. When a contract covers a number of assets, the construction of each asset should be treated as a separate construction contract when: 

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 9. A group of contracts, whether with a single customer or with several customers, should be treated as a single construction contract when: 

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 10. A contract may provide for the construction of an additional asset at the option of the customer or may be amended to include the construction of an additional asset. The construction of the additional asset should be treated as a separate construction contract when: 

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CONTRACT REVENUE 
 11. Contract revenue should comprise: 

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 12. Contract revenue is measured at the fair value of the consideration received or receivable. The measurement of contract revenue is affected by a variety of uncertainties that depend on the outcome of future events. The estimates often need to be revised as events occur and uncertainties are resolved. Therefore, the amount of contract revenue may increase or decrease from one period to the next. For example: 

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 13. A variation is an instruction by the customer for a change in the scope of the work to be performed under the contract. A variation may lead to an increase or a decrease in contract revenue. Examples of variations are changes in the specifications or design of the asset and changes in the duration of the contract. A variation is included in contract revenue when: 

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 14. A claim is an amount that the contractor seeks to collect from the customer or another party as reimbursement for costs not included in the contract price. A claim may arise from, for example, customer caused delays, errors in specifications or design, and disputed variations in contract work. The measurement of the amounts of revenue arising from claims is subject to a high level of uncertainty and often depends on the outcome of negotiations. Therefore, claims are only included in contract revenue when: 

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 15. Incentive payments are additional amounts paid to the contractor if specified performance standards are met or exceeded. For example, a contract may allow for an incentive payment to the contractor for early completion of the contract. Incentive payments are included in contract revenue when: 

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CONTRACT COSTS 
 16. Contract costs should comprise: 

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 17. Costs that relate directly to a specific contract include: 

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 18. Costs that may be attributable to contract activity in general and can be allocated to specific contracts include: 

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 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20. Costs that cannot be attributed to contract activity or cannot be allocated to a contract are excluded from the costs of a construction contract. Such costs include: 

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 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RECOGNITION OF CONTRACT REVENUE AND EXPENSES 
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 23. In the case of a fixed price contract, the outcome of a construction contract can be estimated reliably when all the following conditions are satisfied: 

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 24. In the case of a cost plus contract, the outcome of a construction contract can be estimated reliably when all the following conditions are satisfied: 

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 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 29. An enterprise is generally able to make reliable estimates after it has agreed to a contract which establishes: 

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 30. The stage of completion of a contract may be determined in a variety of ways. The enterprise uses the method that measures reliably the work performed. Depending on the nature of the contract, the methods may include: 

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 31. When the stage of completion is determined by reference to the contract costs incurred to date, only those contract costs that reflect work performed are included in costs incurred to date. Examples of contract costs which are excluded are: 

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 32. When the outcome of a construction contract cannot be estimated reliably: 

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 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 34. Contract costs that are not probable of being recovered are recognised as an expense immediately. Examples of circumstances in which the recoverability of contract costs incurred may not be probable and in which contract costs may need to be recognised as an expense immediately include contracts: 

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 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RECOGNITION OF EXPECTED LOSSES 
 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 37. The amount of such a loss is determined irrespective of: 

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CHANGES IN ESTIMATES 
 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE 
 39. An enterprise should disclose: 

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 40. An enterprise should disclose each of the following for contracts in progress at the balance sheet date: 

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 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 42. An enterprise should present: 

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 43. The gross amount due from customers for contract work is the net amount of: 

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 44. The gross amount due to customers for contract work is the net amount of: 

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 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 
 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL ACCOUNTING STANDARD IAS 12 (REVISED 2000) 
Income taxes 

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INTRODUCTION 

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 1. The original IAS 12 required an enterprise to account for deferred tax using either the deferral method or a liability method which is sometimes known as the income statement liability method. IAS 12 (revised) prohibits the deferral method and requires another liability method which is sometimes known as the balance sheet liability method. 

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 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. The original IAS 12 required that: 

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 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. The original IAS 12 required that taxes payable on undistributed profits of subsidiaries and associates should be recognised unless it was reasonable to assume that those profits will not be distributed or that a distribution would not give rise to a tax liability. However, IAS 12 (revised) prohibits the recognition of such deferred tax liabilities (and those arising from any related cumulative translation adjustment) to the extent that: 

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 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. The tax consequences of recovering the carrying amount of certain assets or liabilities may depend on the manner of recovery or settlement, for example: 

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 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. The original IAS 12 required disclosure of an explanation of the relationship between tax expense and accounting profit if not explained by the tax rates effective in the reporting enterprise's country. IAS 12 (revised) requires this explanation to take either or both of the following forms: 

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 13. New disclosures required by IAS 12 (revised) include: 

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CONTENTS 

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OBJECTIVE 

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SCOPE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 
 5. The following terms are used in this Standard with the meanings specified: 

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 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax base 
 7. The tax base of an asset is the amount that will be deductible for tax purposes against any taxable economic benefits that will flow to an enterprise when it recovers the carrying amount of the asset. If those economic benefits will not be taxable, the tax base of the asset is equal to its carrying amount. 
Examples 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. The tax base of a liability is its carrying amount, less any amount that will be deductible for tax purposes in respect of that liability in future periods. In the case of revenue which is received in advance, the tax base of the resulting liability is its carrying amount, less any amount of the revenue that will not be taxable in future periods. 
Examples 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RECOGNITION OF CURRENT TAX LIABILITIES AND CURRENT TAX ASSETS 
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RECOGNITION OF DEFERRED TAX LIABILITIES AND DEFERRED TAX ASSETS 
Taxable temporary differences 
 15. A deferred tax liability should be recognised for all taxable temporary differences, unless the deferred tax liability arises from: 

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 16. It is inherent in the recognition of an asset that its carrying amount will be recovered in the form of economic benefits that flow to the enterprise in future periods. When the carrying amount of the asset exceeds its tax base, the amount of taxable economic benefits will exceed the amount that will be allowed as a deduction for tax purposes. This difference is a taxable temporary difference and the obligation to pay the resulting income taxes in future periods is a deferred tax liability. As the enterprise recovers the carrying amount of the asset, the taxable temporary difference will reverse and the enterprise will have taxable profit. This makes it probable that economic benefits will flow from the enterprise in the form of tax payments. Therefore, this Standard requires the recognition of all deferred tax liabilities, except in certain circumstances described in paragraphs 15 and 39. 
Example 

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 17. Some temporary differences arise when income or expense is included in accounting profit in one period but is included in taxable profit in a different period. Such temporary differences are often described as timing differences. The following are examples of temporary differences of this kind which are taxable temporary differences and which therefore result in deferred tax liabilities: 

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 18. Temporary differences also arise when: 

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Business combinations 
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets carried at fair value 
 20. International Accounting Standards permit certain assets to be carried at fair value or to be revalued (see, for example, IAS 16, property, plant and equipment, IAS 38, intangible assets, IAS 39, financial instruments: recognition and measurement, and IAS 40, investment property). In some jurisdictions, the revaluation or other restatement of an asset to fair value affects taxable profit (tax loss) for the current period. As a result, the tax base of the asset is adjusted and no temporary difference arises. In other jurisdictions, the revaluation or restatement of an asset does not affect taxable profit in the period of the revaluation or restatement and, consequently, the tax base of the asset is not adjusted. Nevertheless, the future recovery of the carrying amount will result in a taxable flow of economic benefits to the enterprise and the amount that will be deductible for tax purposes will differ from the amount of those economic benefits. The difference between the carrying amount of a revalued asset and its tax base is a temporary difference and gives rise to a deferred tax liability or asset. This is true even if: 

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Goodwill 
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Initial recognition of an asset or liability 
 22. A temporary difference may arise on initial recognition of an asset or liability, for example if part or all of the cost of an asset will not be deductible for tax purposes. The method of accounting for such a temporary difference depends on the nature of the transaction which led to the initial recognition of the asset: 

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 23. In accordance with IAS 32, financial instruments: disclosure and presentation, the issuer of a compound financial instrument (for example, a convertible bond) classifies the instrument's liability component as a liability and the equity component as equity. In some jurisdictions, the tax base of the liability component on initial recognition is equal to the initial carrying amount of the sum of the liability and equity components. The resulting taxable temporary difference arises from the initial recognition of the equity component separately from the liability component. Therefore, the exception set out in paragraph 15(b) does not apply. Consequently, an enterprise recognises the resulting deferred tax liability. In accordance with paragraph 61, the deferred tax is charged directly to the carrying amount of the equity component. In accordance with paragraph 58, subsequent changes in the deferred tax liability are recognised in the income statement as deferred tax expense (income). 
Example illustrating paragraph 22(c) 

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Deductible temporary differences 
 24. A deferred tax asset should be recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised, unless the deferred tax asset arises from: 

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 25. It is inherent in the recognition of a liability that the carrying amount will be settled in future periods through an outflow from the enterprise of resources embodying economic benefits. When resources flow from the enterprise, part or all of their amounts may be deductible in determining taxable profit of a period later than the period in which the liability is recognised. In such cases, a temporary difference exists between the carrying amount of the liability and its tax base. Accordingly, a deferred tax asset arises in respect of the income taxes that will be recoverable in the future periods when that part of the liability is allowed as a deduction in determining taxable profit. Similarly, if the carrying amount of an asset is less than its tax base, the difference gives rise to a deferred tax asset in respect of the income taxes that will be recoverable in future periods. 
Example 

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 26. The following are examples of deductible temporary differences which result in deferred tax assets: 

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 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 28. It is probable that taxable profit will be available against which a deductible temporary difference can be utilised when there are sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity which are expected to reverse: 

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 29. When there are insufficient taxable temporary differences relating to the same taxation authority and the same taxable entity, the deferred tax asset is recognised to the extent that: 

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 30. Tax planning opportunities are actions that the enterprise would take in order to create or increase taxable income in a particular period before the expiry of a tax loss or tax credit carryforward. For example, in some jurisdictions, taxable profit may be created or increased by: 

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 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Negative goodwill 
 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Initial recognition of an asset or liability 
 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unused tax losses and unused tax credits 
 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 36. An enterprise considers the following criteria in assessing the probability that taxable profit will be available against which the unused tax losses or unused tax credits can be utilised: 

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Reassessment of unrecognised deferred tax assets 
 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in subsidiaries, branches and associates and interests in joint ventures 
 38. Temporary differences arise when the carrying amount of investments in subsidiaries, branches and associates or interests in joint ventures (namely the parent or investor's share of the net assets of the subsidiary, branch, associate or investee, including the carrying amount of goodwill) becomes different from the tax base (which is often cost) of the investment or interest. Such differences may arise in a number of different circumstances, for example: 

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 39. An enterprise should recognise a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, branches and associates, and interests in joint ventures, except to the extent that both of the following conditions are satisfied: 

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 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 44. An enterprise should recognise a deferred tax asset for all deductible temporary differences arising from investments in subsidiaries, branches and associates, and interests in joint ventures, to the extent that, and only to the extent that, it is probable that: 

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 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MEASUREMENT 
 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 52. In some jurisdictions, the manner in which an enterprise recovers (settles) the carrying amount of an asset (liability) may affect either or both of: 

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Example A 

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Example B 

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Example C 

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 52A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 52B. In the circumstances described in paragraph 52A, the income tax consequences of dividends are recognised when a liability to pay the dividend is recognised. The income tax consequences of dividends are more directly linked to past transactions or events than to distributions to owners. Therefore, the income tax consequences of dividends are recognised in net profit or loss for the period as required by paragraph 58 except to the extent that the income tax consequences of dividends arise from the circumstances described in paragraph 58(a) and (b). 
Example illustrating paragraphs 52A and 52B 

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 53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RECOGNITION OF CURRENT AND DEFERRED TAX 
 57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income statement 
 58. Current and deferred tax should be recognised as income or an expense and included in the net profit or loss for the period, except to the extent that the tax arises from: 

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 59. Most deferred tax liabilities and deferred tax assets arise where income or expense is included in accounting profit in one period, but is included in taxable profit (tax loss) in a different period. The resulting deferred tax is recognised in the income statement. Examples are when: 

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 60. The carrying amount of deferred tax assets and liabilities may change even though there is no change in the amount of the related temporary differences. This can result, for example, from: 

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Items credited or charged directly to equity 
 61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 62. International Accounting Standards require or permit certain items to be credited or charged directly to equity. Examples of such items are: 

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 63. In exceptional circumstances it may be difficult to determine the amount of current and deferred tax that relates to items credited or charged to equity. This may be the case, for example, when: 

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 64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 65A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax arising from a business combination 
 66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 68. When an acquirer did not recognise a deferred tax asset of the acquiree as an identifiable asset at the date of a business combination and that deferred tax asset is subsequently recognised in the acquirer's consolidated financial statements, the resulting deferred tax income is recognised in the income statement. In addition, the acquirer: 

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Example 

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PRESENTATION 
Tax assets and tax liabilities 
 69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Offset 
 71. An enterprise should offset current tax assets and current tax liabilities if, and only if, the enterprise: 

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 72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 74. An enterprise should offset deferred tax assets and deferred tax liabilities if, and only if: 

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 75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax expense 
Tax expense (income) related to profit or loss from ordinary activities 
 77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exchange differences on deferred foreign tax liabilities or assets 
 78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE 
 79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 80. Components of tax expense (income) may include: 

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 81. The following should also be disclosed separately: 

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 82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 82A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 87A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 87B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 87C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 88. An enterprise discloses any tax-related contingent liabilities and contingent assets in accordance with IAS 37, provisions, contingent liabilities and contingent assets. Contingent liabilities and contingent assets may arise, for example, from unresolved disputes with the taxation authorities. Similarly, where changes in tax rates or tax laws are enacted or announced after the balance sheet date, an enterprise discloses any significant effect of those changes on its current and deferred tax assets and liabilities (see IAS 10, events after the balance sheet date). 
Example illustrating paragraph 85 

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EFFECTIVE DATE 
 89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 90. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL ACCOUNTING STANDARD IAS 14 (REVISED 1997) 
Segment reporting 

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INTRODUCTION 

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 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 9. The original IAS 14 required four principal items of information for both industry segments and geographical segments: 

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 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONTENTS 

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OBJECTIVE 

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SCOPE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 
Definitions from other international accounting standards 
 8. The following terms are used in this Standard with the meanings specified in IAS 7, cash flow statements; IAS 8, net profit or loss for the period, fundamental errors and changes in accounting policies; and IAS 18, revenue: 

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Definitions of business segment and geographical segment 
 9. The terms business segment and geographical segment are used in this Standard with the following meanings: 

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 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 13. The predominant sources of risks affect how most enterprises are organised and managed. Therefore, paragraph 27 of this Standard provides that an enterprise's organisational structure and its internal financial reporting system is the basis for identifying its segments. The risks and returns of an enterprise are influenced both by the geographical location of its operations (where its products are produced or where its service delivery activities are based) and also by the location of its markets (where its products are sold or services are rendered). The definition allows geographical segments to be based on either: 

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 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Definitions of segment revenue, expense, result, assets, and liabilities 
 16. The following additional terms are used in this Standard with the meanings specified: 

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 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IDENTIFYING REPORTABLE SEGMENTS 
Primary and secondary segment reporting formats 
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 27. An enterprise's internal organisational and management structure and its system of internal financial reporting to the board of directors and the chief executive officer should normally be the basis for identifying the predominant source and nature of risks and differing rates of return facing the enterprise and, therefore, for determining which reporting format is primary and which is secondary, except as provided in subparagraphs (a) and (b) below: 

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 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business and geographical segments 
 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 32. If an enterprise's internal organisational and management structure and its system of internal financial reporting to the board of directors and the chief executive officer are based neither on individual products or services or on groups of related products/services nor on geography, paragraph 27(b) requires that the directors and management of the enterprise should choose either business segments or geographical segments as the enterprise's primary segment reporting format based on their assessment of which reflects the primary source of the enterprise's risks and returns, with the other its secondary reporting format. In that case, the directors and management of the enterprise must determine its business segments and geographical segments for external reporting purposes based on the factors in the definitions in paragraph 9 of this Standard, rather than on the basis of its system of internal financial reporting to the board of directors and chief executive officer, consistent with the following: 

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 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reportable segments 
 34. Two or more internally reported business segments or geographical segments that are substantially similar may be combined as a single business segment or geographical segment. Two or more business segments or geographical segments are substantially similar only if: 

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 35. A business segment or geographical segment should be identified as a reportable segment if a majority of its revenue is earned from sales to external customers and: 

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 36. If an internally reported segment is below all of the thresholds of significance in paragraph 35: 

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 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SEGMENT ACCOUNTING POLICIES 
 44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE 
 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Primary reporting format 
 50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Secondary segment information 
 68. Paragraphs 50 to 67 identify the disclosure requirements to be applied to each reportable segment based on an enterprise's primary reporting format. Paragraphs 69 to 72 identify the disclosure requirements to be applied to each reportable segment based on an enterprise's secondary reporting format, as follows: 

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 69. If an enterprise's primary format for reporting segment information is business segments, it should also report the following information: 

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 70. If an enterprise's primary format for reporting segment information is geographical segments (whether based on location of assets or location of customers), it should also report the following segment information for each business segment whose revenue from sales to external customers is 10 % or more of total enterprise revenue from sales to all external customers or whose segment assets are 10 % or more of the total assets of all business segments: 

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 71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 72. If an enterprise's primary format for reporting segment information is geographical segments that are based on location of customers, and if the enterprise's assets are located in different geographical areas from its customers, then the enterprise should also report the following segment information for each asset-based geographical segment whose revenue from sales to external customers or segment assets are 10 % or more of related consolidated or total enterprise amounts: 

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Illustrative segment disclosures 
 73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other disclosure matters 
 74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 80. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 
 84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL ACCOUNTING STANDARD IAS 15 (REFORMATTED 1994) 
Information reflecting the effects of changing prices 

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CONTENTS 
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 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .EXPLANATION 
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .RESPONDING TO CHANGING PRICES 
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .General purchasing power approach 
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Current cost approach 
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Current status 
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MINIMUM DISCLOSURES 
 21. The items to be presented are: 
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 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .EFFECTIVE DATE 
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERNATIONAL ACCOUNTING STANDARD 16 Property, Plant and Equipment 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS 

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RECOGNITION 

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Initial Costs 

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Subsequent Costs 

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MEASUREMENT AT RECOGNITION 

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Elements of Cost 

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Measurement of Cost 

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MEASUREMENT AFTER RECOGNITION 

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Cost Model 

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Revaluation Model 

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Depreciation 

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Depreciable Amount and Depreciation Period 

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Depreciation Method 

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Impairment 

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Compensation for Impairment 

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DERECOGNITION 

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DISCLOSURE 

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TRANSITIONAL PROVISIONS 

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EFFECTIVE DATE 

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WITHDRAWAL OF OTHER PRONOUNCEMENTS 

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APPENDIX Amendments to Other Pronouncements 

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A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERNATIONAL ACCOUNTING STANDARD 17 Leases 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS 

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CLASSIFICATION OF LEASES 

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LEASES IN THE FINANCIAL STATEMENTS OF LESSEES 
Finance Leases 
Initial Recognition 

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Subsequent Measurement 

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Operating Leases 

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LEASES IN THE FINANCIAL STATEMENTS OF LESSORS 
Finance Leases 
Initial Recognition 

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Subsequent Measurement 

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Operating Leases 

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SALE AND LEASEBACK TRANSACTIONS 

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TRANSITIONAL PROVISIONS 

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EFFECTIVE DATE 

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WITHDRAWAL OF IAS 17 (REVISED 1997) 

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APPENDIX Amendments to Other Pronouncements 

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A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERNATIONAL ACCOUNTING STANDARD IAS 18 (REVISED 1993) 
Revenue 

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CONTENTS 

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OBJECTIVE 

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SCOPE 
 1. This Standard should be applied in accounting for revenue arising from the following transactions and events: 

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 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. The use by others of enterprise assets gives rise to revenue in the form of: 

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 6. This Standard does not deal with revenue arising from: 

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DEFINITIONS 
 7. The following terms are used in this Standard with the meanings specified: 

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 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MEASUREMENT OF REVENUE 
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. In most cases, the consideration is in the form of cash or cash equivalents and the amount of revenue is the amount of cash or cash equivalents received or receivable. However, when the inflow of cash or cash equivalents is deferred, the fair value of the consideration may be less than the nominal amount of cash received or receivable. For example, an enterprise may provide interest free credit to the buyer or accept a note receivable bearing a below-market interest rate from the buyer as consideration for the sale of goods. When the arrangement effectively constitutes a financing transaction, the fair value of the consideration is determined by discounting all future receipts using an imputed rate of interest. The imputed rate of interest is the more clearly determinable of either: 

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 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IDENTIFICATION OF THE TRANSACTION 
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SALE OF GOODS 
 14. Revenue from the sale of goods should be recognised when all the following conditions have been satisfied: 

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 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 16. If the enterprise retains significant risks of ownership, the transaction is not a sale and revenue is not recognised. An enterprise may retain a significant risk of ownership in a number of ways. Examples of situations in which the enterprise may retain the significant risks and rewards of ownership are: 

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 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RENDERING OF SERVICES 
 20. When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction should be recognised by reference to the stage of completion of the transaction at the balance sheet date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: 

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 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 23. An enterprise is generally able to make reliable estimates after it has agreed to the following with the other parties to the transaction: 

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 24. The stage of completion of a transaction may be determined by a variety of methods. An enterprise uses the method that measures reliably the services performed. Depending on the nature of the transaction, the methods may include: 

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 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTEREST, ROYALTIES AND DIVIDENDS 
 29. Revenue arising from the use by others of enterprise assets yielding interest, royalties and dividends should be recognised on the bases set out in paragraph 30 when: 

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 30. Revenue should be recognised on the following bases: 

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 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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DISCLOSURE 
 35. An enterprise should disclose: 

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 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 
 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL ACCOUNTING STANDARD IAS 19 (REVISED 2002) 
Employee Benefits 

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INTRODUCTION 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. The Standard identifies five categories of employee benefits: 

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 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. All other post-employment benefit plans are defined benefit plans. Defined benefit plans may be unfunded, or they may be wholly or partly funded. The Standard requires an enterprise to: 

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 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. Termination benefits are employee benefits payable as a result of either: an enterprise's decision to terminate an employee's employment before the normal retirement date; or an employee's decision to accept voluntary redundancy in exchange for those benefits. The event which gives rise to an obligation is the termination rather than employee service. Therefore, an enterprise should recognise termination benefits when, and only when, the enterprise is demonstrably committed to either: 

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 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONTENTS 

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OBJECTIVE 

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SCOPE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. This Standard applies to all employee benefits, including those provided: 

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 4. Employee benefits include: 

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 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 
 7. The following terms are used in this Standard with the meanings specified: 

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SHORT-TERM EMPLOYEE BENEFITS 
 8. Short-term employee benefits include items such as: 

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 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition and measurement 
All short-term employee benefits 
 10. When an employee has rendered service to an enterprise during an accounting period, the enterprise should recognise the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service: 

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Short-term compensated absences 
 11. An enterprise should recognise the expected cost of short-term employee benefits in the form of compensated absences under paragraph 10 as follows: 

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 12. An enterprise may compensate employees for absence for various reasons including vacation, sickness and short-term disability, maternity or paternity, jury service and military service. Entitlement to compensated absences falls into two categories: 

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 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 15. The method specified in the previous paragraph measures the obligation at the amount of the additional payments that are expected to arise solely from the fact that the benefit accumulates. In many cases, an enterprise may not need to make detailed computations to estimate that there is no material obligation for unused compensated absences. For example, a sick leave obligation is likely to be material only if there is a formal or informal understanding that unused paid sick leave may be taken as paid vacation. 
Example illustrating paragraphs 14 and 15 

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 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Profit-sharing and bonus plans 
 17. An enterprise should recognise the expected cost of profit-sharing and bonus payments under paragraph 10 when, and only when: 

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 18. Under some profit-sharing plans, employees receive a share of the profit only if they remain with the enterprise for a specified period. Such plans create a constructive obligation as employees render service that increases the amount to be paid if they remain in service until the end of the specified period. The measurement of such constructive obligations reflects the possibility that some employees may leave without receiving profit-sharing payments. 
Example illustrating paragraph 18 

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 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20. An enterprise can make a reliable estimate of its legal or constructive obligation under a profit-sharing or bonus plan when, and only when: 

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 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure 
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
POST-EMPLOYMENT BENEFITS: DISTINCTION BETWEEN DEFINED CONTRIBUTION PLANS AND DEFINED BENEFIT PLANS 
 24. Post-employment benefits include, for example: 

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 25. Post-employment benefit plans are classified as either defined contribution plans or defined benefit plans, depending on the economic substance of the plan as derived from its principal terms and conditions. Under defined contribution plans: 

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 26. Examples of cases where an enterprise's obligation is not limited to the amount that it agrees to contribute to the fund are when the enterprise has a legal or constructive obligation through: 

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 27. Under defined benefit plans: 

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 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Multi-employer plans 
 29. An enterprise should classify a multi-employer plan as a defined contribution plan or a defined benefit plan under the terms of the plan (including any constructive obligation that goes beyond the formal terms). Where a multi-employer plan is a defined benefit plan, an enterprise should: 

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 30. When sufficient information is not available to use defined benefit accounting for a multi-employer plan that is a defined benefit plan, an enterprise should: 

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 31. One example of a defined benefit multi-employer plan is one where: 

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 32. Where sufficient information is available about a multi-employer plan which is a defined benefit plan, an enterprise accounts for its proportionate share of the defined benefit obligation, plan assets and post-employment benefit cost associated with the plan in the same way as for any other defined benefit plan. However, in some cases, an enterprise may not be able to identify its share of the underlying financial position and performance of the plan with sufficient reliability for accounting purposes. This may occur if: 

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 32A. There may be a contractual agreement between the multi-employer plan and its participants that determines how the surplus in the plan will be distributed to the participants (or the deficit funded). A participant in a multi-employer plan with such an agreement that accounts for the plan as a defined contribution plan in accordance with paragraph 30 shall recognise the asset or liability that arises from the contractual agreement and the resulting income or expense in profit or loss. 

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 32B. IAS 37 Provisions, contingent liabilities and contingent assets requires an entity to recognise, or disclose information about, certain contingent liabilities. In the context of a multi-employer plan, a contingent liability may arise from, for example: 

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 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defined benefit plans that share risks between various entities under common control 
 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 34A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 34B. Participation in such a plan is a related party transaction for each individual group entity. An entity shall therefore, in its separate or individual financial statements, make the following disclosures: 

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 35. IAS 37, provisions, contingent liabilities and contingent assets, requires an enterprise to recognise, or disclose information about, certain contingent liabilities. In the context of a multi-employer plan, a contingent liability may arise from, for example: 
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 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insured benefits 
 39. An enterprise may pay insurance premiums to fund a post-employment benefit plan. The enterprise should treat such a plan as a defined contribution plan unless the enterprise will have (either directly, or indirectly through the plan) a legal or constructive obligation to either: 

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 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 41. Where an enterprise funds a post-employment benefit obligation by contributing to an insurance policy under which the enterprise (either directly, indirectly through the plan, through the mechanism for setting future premiums or through a related party relationship with the insurer) retains a legal or constructive obligation, the payment of the premiums does not amount to a defined contribution arrangement. It follows that the enterprise: 

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 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
POST-EMPLOYMENT BENEFITS: DEFINED CONTRIBUTION PLANS 
 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition and measurement 
 44. When an employee has rendered service to an enterprise during a period, the enterprise should recognise the contribution payable to a defined contribution plan in exchange for that service: 

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 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure 
 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
POST-EMPLOYMENT BENEFITS: DEFINED BENEFIT PLANS 
 48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition and measurement 
 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 50. Accounting by an enterprise for defined benefit plans involves the following steps: 

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 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting for the constructive obligation 
 52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance sheet 
 54. The amount recognised as a defined benefit liability should be the net total of the following amounts: 

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 55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 58. The amount determined under paragraph 54 may be negative (an asset). An enterprise should measure the resulting asset at the lower of: 

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 58A. The application of paragraph 58 should not result in a gain being recognised solely as a result of an actuarial loss or past service cost in the current period or in a loss being recognised solely as a result of an actuarial gain in the current period. The enterprise should therefore recognise immediately under paragraph 54 the following, to the extent that they arise while the defined benefit asset is determined in accordance with paragraph 58(b): 

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 58B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 59. An asset may arise where a defined benefit plan has been overfunded or in certain cases where actuarial gains are recognised. An enterprise recognises an asset in such cases because: 

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 60. The limit in paragraph 58(b) does not over-ride the delayed recognition of certain actuarial losses (see paragraphs 92 and 93) and certain past service cost (see paragraph 96), other than as specified in paragraph 58A. However, that limit does over-ride the transitional option in paragraph 155(b). Paragraph 120A(f)(iii) requires an enterprise to disclose any amount not recognised as an asset because of the limit in paragraph 58(b). 
Example illustrating paragraph 60 

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Profit or loss 
 61. An entity shall recognise the net total of the following amounts in profit or loss, except to the extent that another Standard requires or permits their inclusion in the cost of an asset: 

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 62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition and measurement: present value of defined benefit obligations and current service cost 
 63. The ultimate cost of a defined benefit plan may be influenced by many variables, such as final salaries, employee turnover and mortality, medical cost trends and, for a funded plan, the investment earnings on the plan assets. The ultimate cost of the plan is uncertain and this uncertainty is likely to persist over a long period of time. In order to measure the present value of the post-employment benefit obligations and the related current service cost, it is necessary to: 

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Actuarial valuation method 
 64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 66. An enterprise discounts the whole of a post-employment benefit obligation, even if part of the obligation falls due within 12 months of the balance sheet date. 
Example illustrating paragraph 65 

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Attributing benefit to periods of service 
 67. In determining the present value of its defined benefit obligations and the related current service cost and, where applicable, past service cost, an enterprise should attribute benefit to periods of service under the plan's benefit formula. However, if an employee's service in later years will lead to a materially higher level of benefit than in earlier years, an enterprise should attribute benefit on a straight-line basis from: 

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 68. The projected unit credit method requires an enterprise to attribute benefit to the current period (in order to determine current service cost) and the current and prior periods (in order to determine the present value of defined benefit obligations). An enterprise attributes benefit to periods in which the obligation to provide post-employment benefits arises. That obligation arises as employees render services in return for post-employment benefits which an enterprise expects to pay in future reporting periods. Actuarial techniques allow an enterprise to measure that obligation with sufficient reliability to justify recognition of a liability. 
Examples illustrating paragraph 68 
 1. A defined benefit plan provides a lump-sum benefit of 100 payable on retirement for each year of service. 

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 2. A plan provides a monthly pension of 0,2 % of final salary for each year of service. The pension is payable from the age of 65. 

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 69. Employee service gives rise to an obligation under a defined benefit plan even if the benefits are conditional on future employment (in other words they are not vested). Employee service before the vesting date gives rise to a constructive obligation because, at each successive balance sheet date, the amount of future service that an employee will have to render before becoming entitled to the benefit is reduced. In measuring its defined benefit obligation, an enterprise considers the probability that some employees may not satisfy any vesting requirements. Similarly, although certain post-employment benefits, for example, post-employment medical benefits, become payable only if a specified event occurs when an employee is no longer employed, an obligation is created when the employee renders service that will provide entitlement to the benefit if the specified event occurs. The probability that the specified event will occur affects the measurement of the obligation, but does not determine whether the obligation exists. 
Examples illustrating paragraph 69 
 1. A plan pays a benefit of 100 for each year of service. The benefits vest after ten years of service. 

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 2. A plan pays a benefit of 100 for each year of service, excluding service before the age of 25. The benefits vest immediately. 

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 70. The obligation increases until the date when further service by the employee will lead to no material amount of further benefits. Therefore, all benefit is attributed to periods ending on or before that date. Benefit is attributed to individual accounting periods under the plan's benefit formula. However, if an employee's service in later years will lead to a materially higher level of benefit than in earlier years, an enterprise attributes benefit on a straight-line basis until the date when further service by the employee will lead to no material amount of further benefits. That is because the employee's service throughout the entire period will ultimately lead to benefit at that higher level. 
Examples illustrating paragraph 70 
 1. A plan pays a lump-sum benefit of 1 000 that vests after 10 years of service. The plan provides no further benefit for subsequent service. 

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 2. A plan pays a lump-sum retirement benefit of 2 000 to all employees who are still employed at the age of 55 after 20 years of service, or who are still employed at the age of 65, regardless of their length of service. 

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 3. A post-employment medical plan reimburses 40 % of an employee's post-employment medical costs if the employee leaves after more than 10 and less than 20 years of service and 50 % of those costs if the employee leaves after 20 or more years of service. 

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 4. A post-employment medical plan reimburses 10 % of an employee's post-employment medical costs if the employee leaves after more than 10 and less than 20 years of service and 50 % of those costs if the employee leaves after 20 or more years of service. 

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 71. Where the amount of a benefit is a constant proportion of final salary for each year of service, future salary increases will affect the amount required to settle the obligation that exists for service before the balance sheet date, but do not create an additional obligation. Therefore: 

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Example illustrating paragraph 71 

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Actuarial assumptions 
 72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 73. Actuarial assumptions are an enterprise's best estimates of the variables that will determine the ultimate cost of providing post-employment benefits. Actuarial assumptions comprise: 

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 74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial assumptions: discount rate 
 78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 80. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial assumptions: salaries, benefits and medical costs 
 83. Post-employment benefit obligations should be measured on a basis that reflects: 

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 84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 85. If the formal terms of a plan (or a constructive obligation that goes beyond those terms) require an enterprise to change benefits in future periods, the measurement of the obligation reflects those changes. This is the case when, for example: 

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 86. Actuarial assumptions do not reflect future benefit changes that are not set out in the formal terms of the plan (or a constructive obligation) at the balance sheet date. Such changes will result in: 

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 87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 88. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 90. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial gains and losses 
 92. In measuring its defined benefit liability in accordance with paragraph 54, an entity shall, subject to paragraph 58A, recognise a portion (as specified in paragraph 93) of its actuarial gains and losses as income or expense if the net cumulative unrecognised actuarial gains and losses at the end of the previous reporting period exceeded the greater of: 

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 93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 93A. If, as permitted by paragraph 93, an entity adopts a policy of recognising actuarial gains and losses in the period in which they occur, it may recognise them outside profit or loss, in accordance with paragraphs 93B-93D, providing it does so for: 

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 93B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 93C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 93D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 94. Actuarial gains and losses may result from increases or decreases in either the present value of a defined benefit obligation or the fair value of any related plan assets. Causes of actuarial gains and losses include, for example: 

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 95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Past service cost 
 96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 97. Past service cost arises when an enterprise introduces a defined benefit plan or changes the benefits payable under an existing defined benefit plan. Such changes are in return for employee service over the period until the benefits concerned are vested. Therefore, past service cost is recognised over that period, regardless of the fact that the cost refers to employee service in previous periods. Past service cost is measured as the change in the liability resulting from the amendment (see paragraph 64). 
Example illustrating paragraph 97 

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 98. Past service cost excludes: 

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 99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition and measurement: plan assets 
Fair value of plan assets 
 102. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 103. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 104. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reimbursements 
 104A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 104B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 104C. When an insurance policy is not a qualifying insurance policy, that insurance policy is not a plan asset. Paragraph 104A deals with such cases: the enterprise recognises its right to reimbursement under the insurance policy as a separate asset, rather than as a deduction in determining the defined benefit liability recognised under paragraph 54; in all other respects, the enterprise treats that asset in the same way as plan assets. In particular, the defined benefit liability recognised under paragraph 54 is increased (reduced) to the extent that net cumulative actuarial gains (losses) on the defined benefit obligation and on the related reimbursement right remain unrecognised under paragraphs 92 and 93. Paragraph 120A(f)(iv) requires the enterprise to disclose a brief description of the link between the reimbursement right and the related obligation. 
Example illustrating paragraphs 104A-C 

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 104D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return on plan assets 
 105. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 106. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 107. In determining the expected and actual return on plan assets, an enterprise deducts expected administration costs, other than those included in the actuarial assumptions used to measure the obligation. 
Example illustrating paragraph 106 

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Business combinations 
 108. In a business combination that is an acquisition, an enterprise recognises assets and liabilities arising from post-employment benefits at the present value of the obligation less the fair value of any plan assets (see IAS 22, business combinations). The present value of the obligation includes all of the following, even if the acquiree had not yet recognised them at the date of the acquisition: 

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Curtailments and settlements 
 109. An enterprise should recognise gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on a curtailment or settlement should comprise: 

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 110. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 111. A curtailment occurs when an enterprise either: 

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 112. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 113. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 114. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 115. Where a curtailment relates to only some of the employees covered by a plan, or where only part of an obligation is settled, the gain or loss includes a proportionate share of the previously unrecognised past service cost and actuarial gains and losses (and of transitional amounts remaining unrecognised under paragraph 155(b)). The proportionate share is determined on the basis of the present value of the obligations before and after the curtailment or settlement, unless another basis is more rational in the circumstances. For example, it may be appropriate to apply any gain arising on a curtailment or settlement of the same plan to first eliminate any unrecognised past service cost relating to the same plan. 
Example illustrating paragraph 115 

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Presentation 
Offset 
 116. An enterprise should offset an asset relating to one plan against a liability relating to another plan when, and only when, the enterprise: 

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 117. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current/non-current distinction 
 118. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial components of post-employment benefit costs 
 119. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure 
 120. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 120A. An entity shall disclose the following information about defined benefit plans: 

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 121. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 122. When an enterprise has more than one defined benefit plan, disclosures may be made in total, separately for each plan, or in such groupings as are considered to be the most useful. It may be useful to distinguish groupings by criteria such as the following: 

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 123. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 124. Where required by IAS 24, related party disclosures, an enterprise discloses information about: 

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 125. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER LONG-TERM EMPLOYEE BENEFITS 
 126. Other long-term employee benefits include, for example: 

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 127. The measurement of other long-term employee benefits is not usually subject to the same degree of uncertainty as the measurement of post-employment benefits. Furthermore, the introduction of, or changes to, other long-term employee benefits rarely causes a material amount of past service cost. For these reasons, this Standard requires a simplified method of accounting for other long-term employee benefits. This method differs from the accounting required for post-employment benefits as follows: 

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Recognition and measurement 
 128. The amount recognised as a liability for other long-term employee benefits should be the net total of the following amounts: 

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 129. For other long-term employee benefits, an enterprise should recognise the net total of the following amounts as expense or (subject to paragraph 58) income, except to the extent that another International Accounting Standard requires or permits their inclusion in the cost of an asset: 

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 130. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure 
 131. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TERMINATION BENEFITS 
 132. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition 
 133. An enterprise should recognise termination benefits as a liability and an expense when, and only when, the enterprise is demonstrably committed to either: 

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 134. An enterprise is demonstrably committed to a termination when, and only when, the enterprise has a detailed formal plan for the termination and is without realistic possibility of withdrawal. The detailed plan should include, as a minimum: 

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 135. An enterprise may be committed, by legislation, by contractual or other agreements with employees or their representatives or by a constructive obligation based on business practice, custom or a desire to act equitably, to make payments (or provide other benefits) to employees when it terminates their employment. Such payments are termination benefits. Termination benefits are typically lump-sum payments, but sometimes also include: 

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 136. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 137. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 138. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Measurement 
 139. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 140. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure 
 141. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 142. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 143. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EQUITY COMPENSATION BENEFITS 
 144. Equity compensation benefits include benefits in such forms as: 

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Recognition and measurement 
 145. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure 
 146. The disclosures required below are intended to enable users of financial statements to assess the effect of equity compensation benefits on an enterprise's financial position, performance and cash flows. Equity compensation benefits may affect: 

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 147. An enterprise should disclose: 

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 148. An enterprise should also disclose: 

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 149. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 150. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 151. The disclosures required by paragraphs 147 and 148 are intended to meet the objectives of this Standard. Additional disclosure may be required to satisfy the requirements of IAS 24, related party disclosures, if an enterprise: 

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 152. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TRANSITIONAL PROVISIONS 
 153. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 154. On first adopting this Standard, an enterprise should determine its transitional liability for defined benefit plans at that date as: 

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 155. If the transitional liability is more than the liability that would have been recognised at the same date under the enterprise's previous accounting policy, the enterprise should make an irrevocable choice to recognise that increase as part of its defined benefit liability under paragraph 54: 

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 156. On the initial adoption of the Standard, the effect of the change in accounting policy includes all actuarial gains and losses that arose in earlier periods even if they fall inside the 10 % ‘corridor’ specified in paragraph 92. 
Example illustrating paragraphs 154 to 156 

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EFFECTIVE DATE 
 157. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 158. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 159. The following become operative for annual financial statements covering periods beginning on or after 1 January 2001: 

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 159A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 159B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 159C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 160. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 APPENDIX F Amendments to other Standards 

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 A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL ACCOUNTING STANDARD IAS 20 (REFORMATTED 1994) 
Accounting for government grants and disclosure of government assistance 

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CONTENTS 

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SCOPE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. This Standard does not deal with: 

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DEFINITIONS 
 3. The following terms are used in this Standard with the meanings specified: 

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 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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GOVERNMENT GRANTS 
 7. Government grants, including non-monetary grants at fair value, should not be recognised until there is reasonable assurance that: 

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 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 14. Those in support of the capital approach argue as follows: 

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 15. Arguments in support of the income approach are as follows: 

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 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-monetary government grants 
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Presentation of grants related to assets 
 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Presentation of grants related to income 
 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Repayment of government grants 
 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GOVERNMENT ASSISTANCE 
 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE 
 39. The following matters should be disclosed: 

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TRANSITIONAL PROVISIONS 
 40. An enterprise adopting the Standard for the first time should: 

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EFFECTIVE DATE 
 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL ACCOUNTING STANDARD 21 The Effects of Changes in Foreign Exchange Rates 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS 

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Elaboration on the Definitions 
Functional Currency 

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Net Investment in a Foreign Operation 

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Monetary Items 

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SUMMARY OF THE APPROACH REQUIRED BY THIS STANDARD 

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REPORTING FOREIGN CURRENCY TRANSACTIONS IN THE FUNCTIONAL CURRENCY 
Initial Recognition 

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Reporting at Subsequent Balance Sheet Dates 

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Recognition of Exchange Differences 

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Change in Functional Currency 

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USE OF A PRESENTATION CURRENCY OTHER THAN THE FUNCTIONAL CURRENCY 
Translation to the Presentation Currency 

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Translation of a Foreign Operation 

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Disposal of a Foreign Operation 

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TAX EFFECTS OF ALL EXCHANGE DIFFERENCES 

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DISCLOSURE 

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EFFECTIVE DATE AND TRANSITION 

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WITHDRAWAL OF OTHER PRONOUNCEMENTS 

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APPENDIX Amendments to Other Pronouncements 

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A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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INTERNATIONAL FINANCIAL REPORTING STANDARD 3 Business combinations 
OBJECTIVE 

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SCOPE 

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Identifying a business combination 

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Business combinations involving entities under common control 

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METHOD OF ACCOUNTING 

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APPLICATION OF THE PURCHASE METHOD 

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Identifying the acquirer 

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Cost of a business combination 

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Adjustments to the cost of a business combination contingent on future events 

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Allocating the cost of a business combination to the assets acquired and liabilities and contingent liabilities assumed 

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Acquiree’s identifiable assets and liabilities 

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Acquiree’s intangible assets 

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Acquiree’s contingent liabilities 

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Goodwill 

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Excess of acquirer’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost 

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Business combination achieved in stages 

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Initial accounting determined provisionally 

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Adjustments after the initial accounting is complete 

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Recognition of deferred tax assets after the initial accounting is complete 

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DISCLOSURE 

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TRANSITIONAL PROVISIONS AND EFFECTIVE DATE 

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Previously recognised goodwill 

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Previously recognised negative goodwill 

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Previously recognised intangible assets 

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Equity accounted investments 

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Limited retrospective application 

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WITHDRAWAL OF OTHER PRONOUNCEMENTS 

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APPENDIX A Defined terms 

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acquisition date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .agreement date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

((a)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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((b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .business combination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .business combination involving entities or businesses under common control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .contingent liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((a)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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((b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .control. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .date of exchange. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .fair value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .goodwill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .intangible asset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .joint venture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .minority interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .mutual entity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .parent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .probable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .reporting entity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .subsidiary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
APPENDIX B Application supplement 

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Reverse acquisitions 

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Cost of the business combination 

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Preparation and presentation of consolidated financial statements 

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Minority interest 

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Earnings per share 

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Allocating the cost of a business combination 

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APPENDIX C Amendments to other IFRSs 

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C1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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INTERNATIONAL FINANCIAL REPORTING STANDARD 4 Insurance contracts 
OBJECTIVE 

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SCOPE 

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Embedded derivatives 

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Unbundling of deposit components 

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RECOGNITION AND MEASUREMENT 
Temporary exemption from some other IFRSs 

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Liability adequacy test 

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Impairment of reinsurance assets 

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Changes in accounting policies 

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Current market interest rates 

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Continuation of existing practices 

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Prudence 

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Future investment margins 

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Shadow accounting 

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Insurance contracts acquired in a business combination or portfolio transfer 

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Discretionary participation features 
Discretionary participation features in insurance contracts 

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Discretionary participation features in financial instruments 

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DISCLOSURE 
Explanation of recognised amounts 

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Amount, timing and uncertainty of cash flows 

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EFFECTIVE DATE AND TRANSITION 

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Disclosure 

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Redesignation of financial assets 

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APPENDIX A Defined terms 

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cedant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .deposit component. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .direct insurance contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .discretionary participation feature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((a)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((c)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .fair value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .financial risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .guaranteed benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .guaranteed element. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .insurance asset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .insurance contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .insurance liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .insurance risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .insured event. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .insurer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .liability adequacy test. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .policyholder. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .reinsurance assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .reinsurance contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .reinsurer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .unbundle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .financial guarantee contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
APPENDIX B Definition of an insurance contract 

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Uncertain future event 

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Payments in kind 

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Distinction between insurance risk and other risks 

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Examples of insurance contracts 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Significant insurance risk 

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Changes in the level of insurance risk 

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APPENDIX C Amendments to other IFRSs 

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Amendments to IAS 32 and IAS 39 

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Amendments to other IFRSs 

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INTERNATIONAL ACCOUNTING STANDARD IAS 23 (REVISED 1993) 
Borrowing costs 

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONTENTS 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OBJECTIVE 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCOPE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 
 4. The following terms are used in this Standard with the meanings specified: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. Borrowing costs may include: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BORROWING COSTS — BENCHMARK TREATMENT 
Recognition 
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure 
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BORROWING COSTS — ALLOWED ALTERNATIVE TREATMENT 
Recognition 
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Borrowing costs eligible for capitalisation 
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess of the carrying amount of the qualifying asset over recoverable amount 
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commencement of capitalisation 
 20. The capitalisation of borrowing costs as part of the cost of a qualifying asset should commence when: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Suspension of capitalisation 
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cessation of capitalisation 
 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE 
 29. The financial statements should disclose: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TRANSITIONAL PROVISIONS 
 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 
 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL ACCOUNTING STANDARD 24 Related Party Disclosures 

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OBJECTIVE 

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SCOPE 

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PURPOSE OF RELATED PARTY DISCLOSURES 

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DEFINITIONS 

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DISCLOSURE 

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EFFECTIVE DATE 

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WITHDRAWAL OF IAS 24 (REFORMATTED 1994) 

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APPENDIX Amendment to IAS 30 

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A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERNATIONAL ACCOUNTING STANDARD IAS 26 (REFORMATTED 1994) 
Accounting and reporting by retirement benefit plans 

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CONTENTS 

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SCOPE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 
 8. The following terms are used in this Standard with the meanings specified: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINED CONTRIBUTION PLANS 
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 16. The objective of reporting by a defined contribution plan is periodically to provide information about the plan and the performance of its investments. That objective is usually achieved by providing a report including the following: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINED BENEFIT PLANS 
 17. The report of a defined benefit plan should contain either: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. The objective of reporting by a defined benefit plan is periodically to provide information about the financial resources and activities of the plan that is useful in assessing the relationships between the accumulation of resources and plan benefits over time. This objective is usually achieved by providing a report including the following: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial present value of promised retirement benefits 
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 24. The reasons given for adopting a current salary approach include: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 25. Reasons given for adopting a projected salary approach include: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Frequency of actuarial valuations 
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Report content 
 28. For defined benefit plans, information is presented in one of the following formats which reflect different practices in the disclosure and presentation of actuarial information: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ALL PLANS 
Valuation of plan assets 
 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure 
 34. The report of a retirement benefit plan, whether defined benefit or defined contribution, should also contain the following information: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 35. Reports provided by retirement benefit plans include the following, if applicable: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 36. The report of a retirement benefit plan contains a description of the plan, either as part of the financial information or in a separate report. It may contain the following: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 
 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL ACCOUNTING STANDARD 27 Consolidated and Separate Financial Statements 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCOPE 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCOPE OF CONSOLIDATED FINANCIAL STATEMENTS 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONSOLIDATION PROCEDURES 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ACCOUNTING FOR INVESTMENTS IN SUBSIDIARIES, JOINTLY CONTROLLED ENTITIES AND ASSOCIATES IN SEPARATE FINANCIAL STATEMENTS 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WITHDRAWAL OF OTHER PRONOUNCEMENTS 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

APPENDIX Amendments to Other Pronouncements 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERNATIONAL ACCOUNTING STANDARD 28 Investments in Associates 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCOPE 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Significant Influence 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity Method 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
APPLICATION OF THE EQUITY METHOD 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment Losses 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Separate Financial Statements 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 

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WITHDRAWAL OF OTHER PRONOUNCEMENTS 

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APPENDIX Amendments to Other Pronouncements 

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A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERNATIONAL ACCOUNTING STANDARD IAS 29 (REFORMATTED 1994) 
Financial reporting in hyperinflationary economies 

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CONTENTS 

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SCOPE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. This Standard does not establish an absolute rate at which hyperinflation is deemed to arise. It is a matter of judgement when restatement of financial statements in accordance with this Standard becomes necessary. Hyperinflation is indicated by characteristics of the economic environment of a country which include, but are not limited to, the following: 

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 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THE RESTATEMENT OF FINANCIAL STATEMENTS 
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Historical cost financial statements 
Balance sheet 
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income statement 
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain or loss on net monetary position 
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current cost financial statements 
Balance sheet 
 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income statement 
 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain or loss on net monetary position 
 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes 
 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash flow statement 
 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corresponding figures 
 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated financial statements 
 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selection and use of the general price index 
 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ECONOMIES CEASING TO BE HYPERINFLATIONARY 
 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURES 
 39. The following disclosures should be made: 

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 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 
 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL FINANCIAL REPORTING STANDARD 7 Financial Instruments: Disclosures 
OBJECTIVE 

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SCOPE 

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CLASSES OF FINANCIAL INSTRUMENTS AND LEVEL OF DISCLOSURE 

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SIGNIFICANCE OF FINANCIAL INSTRUMENTS FOR FINANCIAL POSITION AND PERFORMANCE 

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Balance sheet 
Categories of financial assets and financial liabilities 

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Financial assets or financial liabilities at fair value through profit or loss 

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Reclassification 

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Derecognition 

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Collateral 

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Allowance account for credit losses 

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Compound financial instruments with multiple embedded derivatives 

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Defaults and breaches 

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Income statement and equity 
Items of income, expense, gains or losses 

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Other disclosures 
Accounting policies 

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Hedge accounting 

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Fair value 

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NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS 

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Qualitative disclosures 

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Quantitative disclosures 

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Credit risk 

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Financial assets that are either past due or impaired 

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Collateral and other credit enhancements obtained 

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Liquidity risk 

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Market risk 
Sensitivity analysis 

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Other market risk disclosures 

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EFFECTIVE DATE AND TRANSITION 

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WITHDRAWAL OF IAS 30 

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 APPENDIX A Defined terms 

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credit risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .currency risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .interest rate risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .liquidity risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .loans payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .market risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .other price risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .past due. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPENDIX B Application guidance 

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CLASSES OF FINANCIAL INSTRUMENTS AND LEVEL OF DISCLOSURE (PARAGRAPH 6) 

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SIGNIFICANCE OF FINANCIAL INSTRUMENTS FOR FINANCIAL POSITION AND PERFORMANCE 
Financial liabilities at fair value through profit or loss (paragraphs 10 and 11) 

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Other disclosure — accounting policies (paragraph 21) 

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NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS (PARAGRAPHS 31-42) 

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Quantitative disclosures (paragraph 34) 

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Maximum credit risk exposure (paragraph 36(a)) 

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Contractual maturity analysis (paragraph 39(a)) 

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Market risk — sensitivity analysis (paragraphs 40 and 41) 

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Interest rate risk 

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Currency risk 

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Other price risk 

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 APPENDIX C Amendments to other IFRSs 

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C1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPENDIX D Amendments to IFRS 7 if the Amendments to IAS 39 Financial Instruments: Recognition and Measurement — The Fair Value Option have not been applied 

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INTERNATIONAL ACCOUNTING STANDARD 31 Interests in Joint Ventures 

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SCOPE 

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DEFINITIONS 

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Forms of Joint Venture 

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Joint Control 

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Contractual Arrangement 

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JOINTLY CONTROLLED OPERATIONS 

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JOINTLY CONTROLLED ASSETS 

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JOINTLY CONTROLLED ENTITIES 

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Financial Statements of a Venturer 
Proportionate Consolidation 

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Equity Method 

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Exceptions to Proportionate Consolidation and Equity Method 

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Separate Financial Statements of a Venturer 

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TRANSACTIONS BETWEEN A VENTURER AND A JOINT VENTURE 

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REPORTING INTERESTS IN JOINT VENTURES IN THE FINANCIAL STATEMENTS OF AN INVESTOR 

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OPERATORS OF JOINT VENTURES 

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DISCLOSURE 

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EFFECTIVE DATE 

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WITHDRAWAL OF IAS 31 (REVISED 2000) 

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APPENDIX Amendments to Other Pronouncements 

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A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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INTERNATIONAL ACCOUNTING STANDARD 32 Financial Instruments: Disclosure and Presentation 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS (see also paragraphs AG3-AG24) 

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PRESENTATION 
Liabilities and Equity (see also paragraphs AG25-AG29) 

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No Contractual Obligation to Deliver Cash or Another Financial Asset (paragraph 16(a)) 

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Settlement in the Entity’s Own Equity Instruments (paragraph 16(b)) 

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Contingent Settlement Provisions 

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Settlement Options 

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Compound Financial Instruments (see also paragraphs AG30-AG35 and Illustrative Examples 9-12) 

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Treasury Shares (see also paragraph AG36) 

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Interest, Dividends, Losses and Gains (see also paragraph AG37) 

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Offsetting a Financial Asset and a Financial Liability (see also paragraphs AG38 and AG39) 

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DISCLOSURE 

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Format, Location and Classes of Financial Instruments 

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Risk Management Policies and Hedging Activities 

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Terms, Conditions and Accounting Policies 

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Interest Rate Risk 

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Credit Risk 

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Fair Value 

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Other Disclosures 
Derecognition 

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Collateral 

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Compound financial instruments with multiple embedded derivatives 

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Financial assets and financial liabilities at fair value through profit or loss (see also paragraph AG40) 

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Reclassification 

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Income statement and equity 

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Impairment 

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Defaults and breaches 

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EFFECTIVE DATE 

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WITHDRAWAL OF OTHER PRONOUNCEMENTS 

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APPENDIX A Application Guidance IAS 32 Financial Instruments: Disclosure and Presentation 

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Definitions (paragraphs 11-14) 
Financial Assets and Financial Liabilities 

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Equity Instruments 

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Derivative Financial Instruments 

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Contracts to Buy or Sell Non-Financial Items (paragraphs 8-10) 

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Presentation 
Liabilities and Equity (paragraphs 15-27) 
No Contractual Obligation to Deliver Cash or Another Financial Asset (paragraphs 17-20) 

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Settlement in the Entity’s Own Equity Instruments (paragraphs 21-24) 

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Contingent Settlement Provisions (paragraph 25) 

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Treatment in Consolidated Financial Statements 

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Compound Financial Instruments (paragraphs 28-32) 

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Treasury Shares (paragraphs 33 and 34) 

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Interest, Dividends, Losses and Gains (paragraphs 35-41) 

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Offsetting a Financial Asset and a Financial Liability (paragraphs 42-50) 

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Disclosure 
Financial Assets and Financial Liabilities at Fair Value Through Profit or Loss (paragraph 94(f)) 

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INTERNATIONAL ACCOUNTING STANDARD 33 Earnings per Share 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS 

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MEASUREMENT 
Basic Earnings per Share 

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Earnings 

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Shares 

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Diluted Earnings per Share 

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Earnings 

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Shares 

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Dilutive Potential Ordinary Shares 

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Options, warrants and their equivalents 

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Convertible instruments 

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Contingently issuable shares 

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Contracts that may be settled in ordinary shares or cash 

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Purchased options 

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Written put options 

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RETROSPECTIVE ADJUSTMENTS 

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PRESENTATION 

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DISCLOSURE 

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EFFECTIVE DATE 

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WITHDRAWAL OF OTHER PRONOUNCEMENTS 

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APPENDIX A Application Guidance 

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Profit or Loss Attributable to the Parent Entity 

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Rights Issues 

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Control Number 

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Average Market Price of Ordinary Shares 

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Options, Warrants and Their Equivalents 

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Written Put Options 

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Instruments of Subsidiaries, Joint Ventures or Associates 

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 Participating Equity Instruments and Two-Class Ordinary Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 Partly Paid Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

APPENDIX B Amendments to Other Pronouncements 

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B1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .INTERNATIONAL ACCOUNTING STANDARD IAS 34 
Interim financial reporting 

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INTRODUCTION 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. This Standard: 

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 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONTENTS 

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OBJECTIVE 

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SCOPE 
 1. This Standard does not mandate which enterprises should be required to publish interim financial reports, how frequently, or how soon after the end of an interim period. However, governments, securities regulators, stock exchanges, and accountancy bodies often require enterprises whose debt or equity securities are publicly traded to publish interim financial reports. This Standard applies if an enterprise is required or elects to publish an interim financial report in accordance with International Accounting Standards. The International Accounting Standards Committee encourages publicly traded enterprises to provide interim financial reports that conform to the recognition, measurement, and disclosure principles set out in this Standard. Specifically, publicly traded enterprises are encouraged: 

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 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 
 4. The following terms are used in this Standard with the meanings specified: 

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CONTENT OF AN INTERIM FINANCIAL REPORT 
 5. IAS 1 defines a complete set of financial statements as including the following components: 

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 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minimum components of an interim financial report 
 8. An interim financial report should include, at a minimum, the following components: 

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Form and content of interim financial statements 
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selected explanatory notes 
 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 16. An enterprise should include the following information, as a minimum, in the notes to its interim financial statements, if material and if not disclosed elsewhere in the interim financial report. The information should normally be reported on a financial year-to-date basis. However, the enterprise should also disclose any events or transactions that are material to an understanding of the current interim period: 

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 17. Examples of the kinds of disclosures that are required by paragraph 16 are set out below. Individual International Accounting Standards provide guidance regarding disclosures for many of these items: 

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 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure of compliance with IAS 
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Periods for which interim financial statements are required to be presented 
 20. Interim reports should include interim financial statements (condensed or complete) for periods as follows: 

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 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Materiality 
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE IN ANNUAL FINANCIAL STATEMENTS 
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RECOGNITION AND MEASUREMENT 
Same accounting policies as annual 
 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 30. To illustrate: 

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 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revenues received seasonally, cyclically, or occasionally 
 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Costs incurred unevenly during the financial year 
 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applying the recognition and measurement principles 
 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Use of estimates 
 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RESTATEMENT OF PREVIOUSLY REPORTED INTERIM PERIODS 
 43. A change in accounting policy, other than one for which the transition is specified by a new International Accounting Standard, should be reflected by: 

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 44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 
 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL FINANCIAL REPORTING STANDARD 5 Non-current assets held for sale and discontinued operations 
OBJECTIVE 

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SCOPE 

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CLASSIFICATION OF NON-CURRENT ASSETS (OR DISPOSAL GROUPS) AS HELD FOR SALE 

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Non-current assets that are to be abandoned 

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MEASUREMENT OF NON-CURRENT ASSETS (OR DISPOSAL GROUPS) CLASSIFIED AS HELD FOR SALE 
Measurement of a non-current asset(or disposal group) 

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Recognition of impairment losses and reversals 

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Changes to a plan of sale 

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PRESENTATION AND DISCLOSURE 

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Presenting discontinued operations 

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Gains or losses relating to continuing operations 

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Presentation of a non-current asset or disposal group classified as held for sale 

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Additional disclosures 

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TRANSITIONAL PROVISIONS 

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EFFECTIVE DATE 

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WITHDRAWAL OF IAS 35 

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APPENDIX A Defined terms 

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cash-generating unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .component of an entity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .costs to sell. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .current asset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((a)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((c)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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((d)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .discontinued operation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((a)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((c)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .disposal group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .fair value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .firm purchase commitment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .highly probable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .non-current asset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .probable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .recoverable amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .value in use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
APPENDIX B Application supplement 

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EXTENSION OF THE PERIOD REQUIRED TO COMPLETE A SALE 

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APPENDIX C Amendments to other IFRSs 

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C1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERNATIONAL ACCOUNTING STANDARD 36 Impairment of assets 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS 

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IDENTIFYING AN ASSET THAT MAY BE IMPAIRED 

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MEASURING RECOVERABLE AMOUNT 

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Measuring the Recoverable Amount of an Intangible Asset with an Indefinite Useful Life 

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Fair Value less Costs to Sell 

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Value in Use 

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Basis for Estimates of Future Cash Flows 

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Composition of Estimates of Future Cash Flows 

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Foreign Currency Future Cash Flows 

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Discount Rate 

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RECOGNISING AND MEASURING AN IMPAIRMENT LOSS 

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CASH-GENERATING UNITS AND GOODWILL 

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identifying the cash-generating unit to which an asset belongs 

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Recoverable Amount and Carrying Amount of a Cash-generating Unit 

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Goodwill 
Allocating Goodwill to Cash-generating Units 

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Testing Cash-generating Units with Goodwill for Impairment 

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Minority Interest 

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Timing of Impairment Tests 

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Corporate Assets 

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Impairment Loss for a Cash-generating Unit 

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REVERSING AN IMPAIRMENT LOSS 

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Reversing an Impairment Loss for an Individual Asset 

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Reversing an Impairment Loss for a Cash-generating Unit 

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Reversing an Impairment Loss for Goodwill 

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DISCLOSURE 

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Estimates used to Measure Recoverable Amounts of Cash-generating Units Containing Goodwill or Intangible Assets with Indefinite Useful Lives 

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TRANSITIONAL PROVISIONS AND EFFECTIVE DATE 

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WITHDRAWAL OF IAS 36 (ISSUED 1998) 

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APPENDIX A Using PresentValue Techniques to Measure Value in Use 

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The Components of a Present Value Measurement 

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General Principles 

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Traditional and Expected Cash Flow Approaches to Present Value 
Traditional Approach 

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Expected Cash Flow Approach 

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Discount Rate 

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APPENDIX B Amendment to IAS 16 

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B1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .INTERNATIONAL ACCOUNTING STANDARD IAS 37 
Provisions, contingent liabilities and contingent assets 

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INTRODUCTION 
 1. IAS 37 prescribes the accounting and disclosure for all provisions, contingent liabilities and contingent assets, except: 

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Provisions 
 2. The Standard defines provisions as liabilities of uncertain timing or amount. A provision should be recognised when, and only when: 

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 3. The Standard defines a constructive obligation as an obligation that derives from an enterprise's actions where: 

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 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. The Standard requires that an enterprise should, in measuring a provision: 

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 7. An enterprise may expect reimbursement of some or all of the expenditure required to settle a provision (for example, through insurance contracts, indemnity clauses or suppliers' warranties). An enterprise should: 

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 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provisions — specific applications 
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 13. The Standard defines a restructuring as a programme that is planned and controlled by management, and materially changes either: 

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 14. A provision for restructuring costs is recognised only when the general recognition criteria for provisions are met. In this context, a constructive obligation to restructure arises only when an enterprise: 

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 15. A management or board decision to restructure does not give rise to a constructive obligation at the balance sheet date unless the enterprise has, before the balance sheet date: 

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 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 17. A restructuring provision should include only the direct expenditures arising from the restructuring, which are those that are both: 

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Contingent liabilities 
 18. The Standard supersedes the parts of IAS 10, contingencies and events occurring after the balance sheet date, that deal with contingencies. The Standard defines a contingent liability as: 

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 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contingent assets 
 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effective date 
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONTENTS 

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OBJECTIVE 

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SCOPE 
 1. This Standard should be applied by all enterprises in accounting for provisions, contingent liabilities and contingent assets, except: 

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 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. Where another International Accounting Standard deals with a specific type of provision, contingent liability or contingent asset, an enterprise applies that Standard instead of this Standard. For example, certain types of provisions are also addressed in Standards on: 

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 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 
 10. The following terms are used in this Standard with the meanings specified: 

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Provisions and other liabilities 
 11. Provisions can be distinguished from other liabilities such as trade payables and accruals because there is uncertainty about the timing or amount of the future expenditure required in settlement. By contrast: 

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Relationship between provisions and contingent liabilities 
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 13. This Standard distinguishes between: 

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RECOGNITION 
Provisions 
 14. A provision should be recognised when: 

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Present obligation 
 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 16. In almost all cases it will be clear whether a past event has given rise to a present obligation. In rare cases, for example in a law suit, it may be disputed either whether certain events have occurred or whether those events result in a present obligation. In such a case, an enterprise determines whether a present obligation exists at the balance sheet date by taking account of all available evidence, including, for example, the opinion of experts. The evidence considered includes any additional evidence provided by events after the balance sheet date. On the basis of such evidence: 

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Past event 
 17. A past event that leads to a present obligation is called an obligating event. For an event to be an obligating event, it is necessary that the enterprise has no realistic alternative to settling the obligation created by the event. This is the case only: 

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 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Probable outflow of resources embodying economic benefits 
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reliable estimate of the obligation 
 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contingent liabilities 
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contingent assets 
 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MEASUREMENT 
Best estimate 
 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Example 

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risks and uncertainties 
 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Present value 
 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Future events 
 48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected disposal of assets 
 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REIMBURSEMENTS 
 53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHANGES IN PROVISIONS 
 59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
USE OF PROVISIONS 
 61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
APPLICATION OF THE RECOGNITION AND MEASUREMENT RULES 
Future operating losses 
 63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Onerous contracts 
 66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restructuring 
 70. The following are examples of events that may fall under the definition of restructuring: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 72. A constructive obligation to restructure arises only when an enterprise: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 75. A management or board decision to restructure taken before the balance sheet date does not give rise to a constructive obligation at the balance sheet date unless the enterprise has, before the balance sheet date: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 80. A restructuring provision should include only the direct expenditures arising from the restructuring, which are those that are both: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 81. A restructuring provision does not include such costs as: 

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE 
 84. For each class of provision, an enterprise should disclose: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 85. An enterprise should disclose the following for each class of provision: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 86. Unless the possibility of any outflow in settlement is remote, an enterprise should disclose for each class of contingent liability at the balance sheet date a brief description of the nature of the contingent liability and, where practicable: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 88. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 90. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 92. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TRANSITIONAL PROVISIONS 
 93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 
 95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL ACCOUNTING STANDARD 38 Intangible assets 

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OBJECTIVE 

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SCOPE 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible Assets 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Identifiability 

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Control 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Future Economic Benefits 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RECOGNITION AND MEASUREMENT 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Separate Acquisition 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition as Part of a Business Combination 

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Measuring the Fair Value of an Intangible Asset Acquired in a Business Combination 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subsequent Expenditure on an Acquired In-process Research and Development Project 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition by way of a Government Grant 

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Exchanges of Assets 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Internally Generated Goodwill 

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Internally Generated Intangible Assets 

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Research Phase 

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Development Phase 

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Cost of an Internally Generated Intangible Asset 

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RECOGNITION OF AN EXPENSE 

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Past Expenses not to be Recognised as an Asset 

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MEASUREMENT AFTER RECOGNITION 

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Cost Model 

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Revaluation Model 

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USEFUL LIFE 

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INTANGIBLE ASSETS WITH FINITE USEFUL LIVES 
Amortisation Period and Amortisation Method 

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Residual Value 

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Review of Amortisation Period and Amortisation Method 

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INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES 

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Review of Useful Life Assessment 

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RECOVERABILITY OF THE CARRYING AMOUNT - IMPAIRMENT LOSSES 

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RETIREMENTS AND DISPOSALS 

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DISCLOSURE 
General 

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Intangible Assets Measured after Recognition using the Revaluation Model 

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Research and Development Expenditure 

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Other Information 

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TRANSITIONAL PROVISIONS AND EFFECTIVE DATE 

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Exchanges of Similar Assets 

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Early Application 

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WITHDRAWAL OF IAS 38 (ISSUED 1998) 

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INTERNATIONAL ACCOUNTING STANDARD 39 Financial Instruments: Recognition and Measurement 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS 

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EMBEDDED DERIVATIVES 

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RECOGNITION AND DERECOGNITION 
Initial Recognition 

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Derecognition of a Financial Asset 

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 Transfers that Qualify for Derecognition (see paragraph 20(a) and (c)(i)) 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 Transfers that Do Not Qualify for Derecognition (see paragraph 20(b)) 

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 Continuing Involvement in Transferred Assets (see paragraph 20(c)(ii)) 

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All Transfers 

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Regular Way Purchase or Sale of a Financial Asset 

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Derecognition of a Financial Liability 

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MEASUREMENT 
Initial Measurement of Financial Assets and Financial Liabilities 

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Subsequent Measurement of Financial Assets 

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Subsequent Measurement of Financial Liabilities 

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Fair Value Measurement Considerations 

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Reclassifications 

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Gains and Losses 

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Impairment and Uncollectibility of Financial Assets 

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Financial Assets Carried at Amortised Cost 

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Financial Assets Carried at Cost 

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Available-for-Sale Financial Assets 

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HEDGING 

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Hedging Instruments 
Qualifying Instruments 

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Designation of Hedging Instruments 

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Hedged Items 
Qualifying Items 

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Designation of Financial Items as Hedged Items 

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Designation of Non-Financial Items as Hedged Items 

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Designation of Groups of Items as Hedged Items 

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Hedge Accounting 

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Fair Value Hedges 

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Cash Flow Hedges 

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Hedges of a Net Investment 

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EFFECTIVE DATE AND TRANSITIONAL PROVISIONS 

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WITHDRAWAL OF OTHER PRONOUNCEMENTS 

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APPENDIX A Application Guidance 

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Scope (paragraphs 2-7) 

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Definitions (paragraphs 8-9) 
Effective Interest Rate 

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Derivatives 

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Transaction Costs 

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Financial Assets and Financial Liabilities Held for Trading 

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Held-to-Maturity Investments 

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Loans and Receivables 

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Embedded Derivatives (paragraphs 10-13) 

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Recognition and Derecognition (paragraphs 14-42) 
Initial Recognition (paragraph 14) 

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Derecognition of a Financial Asset (paragraphs 15-37) 

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Transfers that Qualify for Derecognition 

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Transfers that Do Not Qualify for Derecognition 

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Continuing Involvement in Transferred Assets 

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All Transfers 

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Examples 

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Regular Way Purchase or Sale of a Financial Asset (paragraph 38) 

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Derecognition of a Financial Liability (paragraphs 39-42) 

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Measurement (paragraphs 43-70) 
Initial Measurement of Financial Assets and Financial Liabilities (paragraph 43) 

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Subsequent Measurement of Financial Assets (paragraphs 45 and 46) 

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Fair Value Measurement Considerations (paragraphs 48 and 49) 

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Active Market: Quoted Price 

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No Active Market: Valuation Technique 

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No Active Market: Equity Instruments 

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Inputs to Valuation Techniques 

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Gains and Losses (paragraphs 55-57) 

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Impairment and Uncollectibility of Financial Assets (paragraphs 58-70) 
Financial Assets Carried at Amortised Cost (paragraphs 63-65) 

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Interest Income After Impairment Recognition 

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Hedging (paragraphs 71-102) 
Hedging Instruments (paragraphs 72-77) 
Qualifying Instruments (paragraphs 72 and 73) 

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Hedged Items (paragraphs 78-84) 
Qualifying Items (paragraphs 78-80) 

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Designation of Financial Items as Hedged Items (paragraphs 81 and 81A) 

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Designation of Non-Financial Items as Hedged Items (paragraph 82) 

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Designation of Groups of Items as Hedged Items (paragraphs 83 and 84) 

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Hedge Accounting (paragraphs 85-102) 

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Assessing Hedge Effectiveness 

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Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk 

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APPENDIX B Amendments to Other Pronouncements 

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Amendments to IFRS 1 

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APPENDIX A 

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Amendments to IAS 12 

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Amendments to IAS 18 

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Amendments to IAS 19 

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Amendments to IAS 30 

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Amendments to IAS 32 

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Amendments to IAS 36 

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Amendments to IAS 37 

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Amendments to SIC 27 

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AMENDMENTS TO INTERNATIONAL ACCOUNTING STANDARD 39 Financial Instruments: Recognition and Measurement 
THE FAIR VALUE OPTION
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DEFINITIONS 
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Definitions of Four Categories of Financial Instruments 

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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EMBEDDED DERIVATIVES 
 11A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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FAIR VALUE MEASUREMENT CONSIDERATIONS 
 48A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE AND TRANSITION 

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 105. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 105A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 105B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 105C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 105D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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APPENDIX A Application Guidance 
DEFINITIONS (paragraphs 8 and 9) 
Designation as at Fair Value through Profit or Loss 
 AG4B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 AG4C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Paragraph 9(b)(i): Designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise 
 AG4D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 AG4E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 AG4F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 AG4G. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Paragraph 9(b)(ii): A group of financial assets, financial liabilities or both is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy 
 AG4H. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 AG4I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 AG4J. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 AG4K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Instruments containing Embedded Derivatives 
 AG33A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 AG33B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL ACCOUNTING STANDARD 40 Investment Property 

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OBJECTIVE 

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SCOPE 

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DEFINITIONS 

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RECOGNITION 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MEASUREMENT AT RECOGNITION 

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MEASUREMENT AFTER RECOGNITION 
Accounting Policy 

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Fair Value Model 

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Inability to Determine Fair Value Reliably 

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Cost Model 

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TRANSFERS 

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DISPOSALS 

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DISCLOSURE 
Fair Value Model and Cost Model 

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Fair Value Model 

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Cost Model 

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TRANSITIONAL PROVISIONS 
Fair Value Model 

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Cost Model 

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EFFECTIVE DATE 

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WITHDRAWAL OF IAS 40 (2000) 

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INTERNATIONAL ACCOUNTING STANDARD IAS 41 
Agriculture 

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INTRODUCTION 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONTENTS 

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OBJECTIVE 

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SCOPE 
 1. This Standard should be applied to account for the following when they relate to agricultural activity: 

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 2. This Standard does not apply to: 

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 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFINITIONS 
Agriculture-related definitions 
 5. The following terms are used in this Standard with the meanings specified: 

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 6. Agricultural activity covers a diverse range of activities; for example, raising livestock, forestry, annual or perennial cropping, cultivating orchards and plantations, floriculture, and aquaculture (including fish farming). Certain common features exist within this diversity: 

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 7. Biological transformation results in the following types of outcomes: 

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General definitions 
 8. The following terms are used in this Standard with the meanings specified: 

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 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RECOGNITION AND MEASUREMENT 
 10. An enterprise should recognise a biological asset or agricultural produce when, and only when: 

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 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 18. If an active market does not exist, an enterprise uses one or more of the following, when available, in determining fair value: 

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 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 24. Cost may sometimes approximate fair value, particularly when: 

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 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gains and losses 
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inability to measure fair value reliably 
 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GOVERNMENT GRANTS 
 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PRESENTATION AND DISCLOSURE 
Presentation 
 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure 
General 
 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 46. If not disclosed elsewhere in information published with the financial statements, an enterprise should describe: 

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 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 49. An enterprise should disclose: 

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 50. An enterprise should present a reconciliation of changes in the carrying amount of biological assets between the beginning and the end of the current period. Comparative information is not required. The reconciliation should include: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional disclosures for biological assets where fair value cannot be measured reliably 
 54. If an enterprise measures biological assets at their cost less any accumulated depreciation and any accumulated impairment losses (see paragraph 30) at the end of the period, the enterprise should disclose for such biological assets: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 55. If, during the current period, an enterprise measures biological assets at their cost less any accumulated depreciation and any accumulated impairment losses (see paragraph 30), an enterprise should disclose any gain or loss recognised on disposal of such biological assets and the reconciliation required by paragraph 50 should disclose amounts related to such biological assets separately. In addition, the reconciliation should include the following amounts included in net profit or loss related to those biological assets: 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 56. If the fair value of biological assets previously measured at their cost less any accumulated depreciation and any accumulated impairment losses becomes reliably measurable during the current period, an enterprise should disclose for those biological assets: 

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Government grants 
 57. An enterprise should disclose the following related to agricultural activity covered by this Standard: 

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EFFECTIVE DATE AND TRANSITION 
 58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL FINANCIAL REPORTING STANDARD 2 Share-based Payment 
OBJECTIVE 

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SCOPE 

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RECOGNITION 

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EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS 
Overview 

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Transactions in which services are received 

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Transactions measured by reference to the fair value of the equity instruments granted 
Determining the fair value of equity instruments granted 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treatment of vesting conditions 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treatment of a reload feature 

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After vesting date 

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If the fair value of the equity instruments cannot be estimated reliably 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Modifications to the terms and conditions on which equity instruments were granted, including cancellations and settlements 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CASH-SETTLED SHARE-BASED PAYMENT TRANSACTIONS 

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SHARE-BASED PAYMENT TRANSACTIONS WITH CASH ALTERNATIVES 

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Share-based payment transactions in which the terms of the arrangement provide the counterparty with a choice of settlement 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based payment transactions in which the terms of the arrangement provide the entity with a choice of settlement 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURES 

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TRANSITIONAL PROVISIONS 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 

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 APPENDIX A Defined terms 

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cash-settled share-based payment transaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .employees and others providing similar services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .equity instrument. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .equity instrument granted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .equity-settled share-based payment transaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .fair value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .grant date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .intrinsic value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .market condition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .measurement date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .reload feature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .reload option. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .share-based payment arrangement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .share-based payment transaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .share option. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vesting conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vesting period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPENDIX B Application Guidance 

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Estimating the fair value of equity instruments granted 

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Shares 

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Share options 

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Inputs to option pricing models 

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Expected early exercise 

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Expected volatility 

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Newly listed entities 

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Unlisted entities 

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Expected dividends 

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Risk-free interest rate 

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Capital structure effects 

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Modifications to equity-settled share-based payment arrangements 

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 APPENDIX C Amendments to other IFRSs 

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C1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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C8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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INTERNATIONAL FINANCIAL REPORTING STANDARD 6 Exploration for and evaluation of mineral resources 
OBJECTIVE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. In particular, the IFRS requires: 

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SCOPE 
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. An entity shall not apply the IFRS to expenditures incurred: 

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 RECOGNITION OF EXPLORATION AND EVALUATION ASSETS Temporary exemption from IAS 8 paragraphs 11 and 12 
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 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MEASUREMENT OF EXPLORATION AND EVALUATION ASSETS 
Measurement at recognition 
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Elements of cost of exploration and evaluation assets 
 9. An entity shall determine a policy specifying which expenditures are recognised as exploration and evaluation assets and apply the policy consistently. In making this determination, an entity considers the degree to which the expenditure can be associated with finding specific mineral resources. The following are examples of expenditures that might be included in the initial measurement of exploration and evaluation assets (the list is not exhaustive): 

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 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Measurement after recognition 
 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in accounting policies 
 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PRESENTATION 
Classification of exploration and evaluation assets 
 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reclassification of exploration and evaluation assets 
 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IMPAIRMENT 
Recognition and measurement 
 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20. One or more of the following facts and circumstances indicate that an entity should test exploration and evaluation assets for impairment (the list is not exhaustive): 

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Specifying the level at which exploration and evaluation assets are assessed for impairment 
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE 
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 24. To comply with paragraph 23, an entity shall disclose: 

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 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TRANSITIONAL PROVISIONS 
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 APPENDIX A Defined terms 

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 APPENDIX B Amendments to other IFRSs 

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 B1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exemption from the requirement to provide comparative disclosures for IFRS 6 
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 B2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 B3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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INTERNATIONAL FINANCIAL REPORTING STANDARDS 8 Operating Segments 
CORE PRINCIPLE 
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SCOPE 
 2. This IFRS shall apply to: 

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OPERATING SEGMENTS 
 5. An operating segment is a component of an entity: 

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 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REPORTABLE SEGMENTS 
 11. An entity shall report separately information about each operating segment that: 

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Aggregation criteria 
 12. Operating segments often exhibit similar long-term financial performance if they have similar economic characteristics. For example, similar long-term average gross margins for two operating segments would be expected if their economic characteristics were similar. Two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the core principle of this IFRS, the segments have similar economic characteristics, and the segments are similar in each of the following respects: 

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Quantitative thresholds 
 13. An entity shall report separately information about an operating segment that meets any of the following quantitative thresholds: 

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 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DISCLOSURE 
 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 21. To give effect to the principle in paragraph 20, an entity shall disclose the following for each period for which an income statement is presented: 

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General information 
 22. An entity shall disclose the following general information: 

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Information about profit or loss, assets and liabilities 
 23. An entity shall report a measure of profit or loss and total assets for each reportable segment. An entity shall report a measure of liabilities for each reportable segment if such an amount is regularly provided to the chief operating decision maker. An entity shall also disclose the following about each reportable segment if the specified amounts are included in the measure of segment profit or loss reviewed by the chief operating decision maker, or are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss: 

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 24. An entity shall disclose the following about each reportable segment if the specified amounts are included in the measure of segment assets reviewed by the chief operating decision maker or are otherwise regularly provided to the chief operating decision maker, even if not included in the measure of segment assets: 

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MEASUREMENT 
 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 27. An entity shall provide an explanation of the measurements of segment profit or loss, segment assets and segment liabilities for each reportable segment. At a minimum, an entity shall disclose the following: 

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Reconciliations 
 28. An entity shall provide reconciliations of all of the following: 

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Restatement of previously reported information 
 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ENTITY-WIDE DISCLOSURES 
 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information about products and services 
 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information about geographical areas 
 33. An entity shall report the following geographical information, unless the necessary information is not available and the cost to develop it would be excessive: 

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Information about major customers 
 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TRANSITION AND EFFECTIVE DATE 
 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WITHDRAWAL OF IAS 14 
 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 APPENDIX A Defined term 

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operating segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((a)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((b)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
((c)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPENDIX B Amendments to other IFRSs 

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 B1 References to IAS 14 Segment Reporting are amended to IFRS 8 Operating Segments in the following paragraphs: 

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 B2 In IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, paragraph 41 is amended as follows: 

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 B3 In IFRS 6 Exploration for and Evaluation of Mineral Resources, paragraph 21 is amended as follows: 

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 B4 In IAS 2 Inventories, paragraphs 26 and 29 are amended as follows: 

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 B5 In IAS 7 Cash Flow Statements, paragraph 50 is amended as follows: 

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 B6 In IAS 19 Employee Benefits, the example illustrating paragraph 115 is amended as follows: 

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 B7 In IAS 33 Earnings per Share, paragraph 2 is replaced as follows: 

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 B8 In IAS 34 Interim Financial Reporting, paragraph 16 is amended as follows: 

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 B9 IAS 36 Impairment of Assets is amended as described below. 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-1 
Consistency — different cost formulas for inventories 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 3. An enterprise should use the same cost formula for all inventories having similar nature and use to the enterprise. For inventories with a different nature or use (for example, certain commodities used in one business segment and the same type of commodities used in another business segment), different cost formulas may be justified. A difference in geographical location of inventories (and in the respective tax rules), by itself, is not sufficient to justify the use of different cost formulas. 
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Consistency — capitalisation of borrowing costs 

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Issue 
 1. IAS 23.07 and 23.11 allow the choice of either: 
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 3. Where an enterprise adopts the allowed alternative treatment, that treatment should be applied consistently to all borrowing costs that are directly attributable to the acquisition, construction or production of all qualifying assets of the enterprise. If all the conditions laid down in IAS 23.11 are met, an enterprise should continue to capitalise such borrowing costs even if the carrying amount of the asset exceeds its recoverable amount. However, IAS 23.19 explains that the carrying amount of the asset should be written down to recognise impairment losses in such cases. 
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Elimination of unrealised profits and losses on transactions with associates 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Unrealised losses should not be eliminated to the extent that the transaction provides evidence of an impairment of the asset transferred. 
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Costs of modifying existing software 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. The issues are: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Disclosure 
 5. A need for major software modifications may give rise to uncertainties. In accordance with IAS 1.08 (revised 1997), enterprises are encouraged to present, outside the financial statements, information about the principal uncertainties they face (for example, a description of the activities and expenditure both incurred and planned to be incurred in future periods, in respect of significant software modifications). 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-7 
Introduction of the euro 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consensus 
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. This means that, in particular: 

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IFRS 1 — FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARD 

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INTRODUCTION 
Reasons for issuing the IFRS 
 IN1. The IFRS replaces SIC-8 First-time Application of IASs as the Primary Basis of Accounting. The Board developed this IFRS to address concerns that: 

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Main features of the IFRS 
 IN2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 IN3. In general, the IFRS requires an entity to comply with each IFRS effective at the reporting date for its first IFRS financial statements. In particular, the IFRS requires an entity to do the following in the opening IFRS balance sheet that it prepares as a starting point for its accounting under IFRSs: 

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 IN4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 IN5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 IN6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes from previous requirements 
 IN7. Like SIC-8, the IFRS requires retrospective application in most areas. Unlike SIC-8, the IFRS: 

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INTERNATIONAL FINANCIAL REPORTING STANDARD 1 
First-time adoption of International Financial Reporting Standards 
OBJECTIVE 
 1. The objective of this IFRS is to ensure that an entity's first IFRS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that: 

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SCOPE 
 2. An entity shall apply this IFRS in: 

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 3. An entity's first IFRS financial statements are the first annual financial statements in which the entity adopts IFRSs, by an explicit and unreserved statement in those financial statements of compliance with IFRSs. Financial statements under IFRSs are an entity's first IFRS financial statements if, for example, the entity: 

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 4. This IFRS applies when an entity first adopts IFRSs. It does not apply when, for example, an entity: 

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 5. This IFRS does not apply to changes in accounting policies made by an entity that already applies IFRSs. Such changes are the subject of: 

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RECOGNITION AND MEASUREMENT 
Opening IFRS balance sheet 
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting policies 
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Example: Consistent application of latest version of IFRSs 
BACKGROUND 

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APPLICATION OF REQUIREMENTS 

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 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. Except as described in paragraphs 13 to 34, an entity shall, in its opening IFRS balance sheet: 

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 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 12. This IFRS establishes two categories of exceptions to the principle that an entity's opening IFRS balance sheet shall comply with each IFRS: 

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Exemptions from other IFRSs 
 13. An entity may elect to use one or more of the following exemptions: 

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 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business combinations 
 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value or revaluation as deemed cost 
 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 17. A first-time adopter may elect to use a previous GAAP revaluation of an item of property, plant and equipment at, or before, the date of transition to IFRSs as deemed cost at the date of the revaluation, if the revaluation was, at the date of the revaluation, broadly comparable to: 

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 18. The elections in paragraphs 16 and 17 are also available for: 

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 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employee benefits 
 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cumulative translation differences 
 21. IAS 21 The Effects of Changes in Foreign Exchange Rates requires an entity: 

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 22. However, a first-time adopter need not comply with these requirements for cumulative translation differences that existed at the date of transition to IFRSs. If a first-time adopter uses this exemption: 

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Compound financial instruments 
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets and liabilities of subsidiaries, associates and joint ventures 
 24. If a subsidiary becomes a first-time adopter later than its parent, the subsidiary shall, in its separate financial statements, measure its assets and liabilities at either: 

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 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LEASES 
IFRIC 4 Determining whether an arrangement contains a lease 
 25F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exceptions to retrospective application of other IFRSs 
 26. This IFRS prohibits retrospective application of some aspects of other IFRSs relating to: 

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Derecognition of financial assets and financial liabilities 
 27. A first-time adopter shall apply the derecognition requirements in IAS 39 Financial Instruments: Recognition and Measurement prospectively from the effective date of IAS 39. In other words, if a first-time adopter derecognised financial assets or financial liabilities under its previous GAAP in a financial year beginning before 1 January 2001, it shall not recognise those assets and liabilities under IFRSs (unless they qualify for recognition as a result of a later transaction or event). However, the first-time adopter shall: 

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Hedge accounting 
 28. As required by IAS 39 Financial Instruments: Recognition and Measurement, at the date of transition to IFRSs, an entity shall: 

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 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimates 
 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PRESENTATION AND DISCLOSURE 
 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Comparative information 
 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exemption from the requirement to present comparative information for IFRS 6 
 36B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 37. Some entities present historical summaries of selected data for periods before the first period for which they present full comparative information under IFRSs. This IFRS does not require such summaries to comply with the recognition and measurement requirements of IFRSs. Furthermore, some entities present comparative information under previous GAAP as well as the comparative information required by IAS 1. In any financial statements containing historical summaries or comparative information under previous GAAP, an entity shall: 

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Explanation of transition to IFRSs 
 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reconciliations 
 39. To comply with paragraph 38, an entity's first IFRS financial statements shall include: 

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 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Use of fair value as deemed cost 
 44. If an entity uses fair value in its opening IFRS balance sheet as deemed cost for an item of property, plant and equipment, an investment property or an intangible asset (see paragraphs 16 and 18), the entity's first IFRS financial statements shall disclose, for each line item in the opening IFRS balance sheet: 

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Interim financial reports 
 45. To comply with paragraph 38, if an entity presents an interim financial report under IAS 34 Interim Financial Reporting for part of the period covered by its first IFRS financial statements, the entity shall satisfy the following requirements in addition to the requirements of IAS 34: 

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 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EFFECTIVE DATE 
 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

APPENDIX A Defined terms 

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APPENDIX B Business combinations 

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 B1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 B2. If a first-time adopter does not apply IAS 22 retrospectively to a past business combination, this has the following consequences for that business combination: 

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 B3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 B4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

APPENDIX C Amendments to other IFRSs 

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 C1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 C2 This IFRS amends paragraph 172(h) of IAS 39 Financial Instruments: Recognition and Measurement to read as follows: 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-9 
Business combinations — classification either as acquisitions or unitings of interests 

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ISSUE 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. The issues are: 
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 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. All business combinations under IAS 22 are either an ‘acquisition’ or a ‘uniting of interests’. 
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Government assistance — no specific relation to operating activities 

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Issue 
 1. In some countries government assistance to enterprises may be aimed at encouragement or long-term support of business activities either in certain regions or industry sectors. Conditions to receive such assistance may not be specifically related to the operating activities of the enterprise. Examples of such assistance are transfers of resources by governments to enterprises which: 

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 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consensus 
 3. Government assistance to enterprises meets the definition of government grants in IAS 20, even if there are no conditions specifically relating to the operating activities of the enterprise other than the requirement to operate in certain regions or industry sectors. Such grants should therefore not be credited directly to equity. 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-11 
Foreign exchange — capitalisation of losses resulting from severe currency devaluations 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. The issues are: 
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 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. ‘Recent’ acquisitions of assets are acquisitions within 12 months prior to the severe devaluation or depreciation of the reporting currency. 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-12 
Consolidation — special purpose entities 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consensus 
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. In addition to the situations described in IAS 27.12, the following circumstances, for example, may indicate a relationship in which an enterprise controls an SPE and consequently should consolidate the SPE (additional guidance is provided in the appendix to this interpretation): 

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 11. Predetermination of the ongoing activities of an SPE by an enterprise (the sponsor or other party with a beneficial interest) would not represent the type of restrictions referred to in IAS 27.13(b). 

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 International Financial Reporting Interpretations Committee IFRIC 
IFRIC AMENDMENT TO SIC-12 
Scope of SIC-12 
Consolidation — Special Purpose Entities 
REFERENCES 

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BACKGROUND 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. IFRS 2 is effective for annual periods beginning on or after 1 January 2005. IFRS 2 will amend IAS 19 by: 

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 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ISSUES 
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AMENDMENT 
 6. Paragraph 6 of SIC-12 is amended as follows. 

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EFFECTIVE DATE 
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-13 
Jointly controlled entities — non-monetary contributions by venturers 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. The issues are: 

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 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consensus 
 5. In applying IAS 31.39 to non-monetary contributions to a JCE in exchange for an equity interest in the JCE, a venturer should recognise in the income statement for the period the portion of a gain or loss attributable to the equity interests of the other venturers except when: 

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 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 7. Unrealised gains or losses on non-monetary assets contributed to JCEs should be eliminated against the underlying assets under the proportionate consolidation method or against the investment under the equity method. Such unrealised gains or losses should not be presented as deferred gains or losses in the venturer's consolidated balance sheet. 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-14 
Property, plant and equipment — compensation for the impairment or loss of items 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Examples of such cases may include: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. The issue is how an enterprise should account for: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 4. Impairments or losses of items of property, plant and equipment, related claims for or payments of compensation from third parties and any subsequent purchase or construction of replacement assets are separate economic events and should be accounted for as such. The three economic events should be accounted for separately as follows: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Disclosure 
 5. Monetary or non-monetary compensation recognised for the impairment or loss of items of property, plant and equipment should be disclosed separately. 
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Operating leases — incentives 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consensus 
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. Costs incurred by the lessee, including costs in connection with a pre-existing lease (for example costs for termination, relocation or leasehold improvements), should be accounted for by the lessee in accordance with the International Accounting Standards applicable to those costs, including costs which are effectively reimbursed through an incentive arrangement. 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-18 
Consistency — alternative methods 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Once the appropriate initial policy has been selected under the requirements of paragraph 3, a change in accounting policy should only be made in accordance with IAS 8.42 and applied to all items or categories of items in the manner specified in paragraph 3. 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-19 
Reporting currency — measurement and presentation of financial statements under IAS 21 and IAS 29 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. The issues are: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. If the measurement currency, determined in accordance with paragraph 5 of this Interpretation, is the currency of a hyperinflationary economy, then: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Disclosure 
 10. The following should be disclosed: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-20 
Equity accounting method — recognition of losses 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. In applying the equity method, the issues are: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Disclosure 
 10. If an investor discontinues recognition of its share of losses of an investee, the investor should disclose in the notes to the financial statements the amount of its unrecognised share of losses of the investee, both during the period and cumulatively. 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-21 
Income taxes — recovery of revalued non-depreciable assets 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consensus 
 5. The deferred tax liability or asset that arises from the revaluation of a non-depreciable asset under IAS 16.29 should be measured based on the tax consequences that would follow from recovery of the carrying amount of that asset through sale, regardless of the basis of measuring the carrying amount of that asset. Accordingly, if the tax law specifies a tax rate applicable to the taxable amount derived from the sale of an asset that differs from the tax rate applicable to the taxable amount derived from using an asset, the former rate is applied in measuring the deferred tax liability or asset related to a non-depreciable asset. 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-22 
Business combinations — subsequent adjustment of fair values and goodwill initially reported 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. IAS 22.71 (revised 1998) indicates that in accounting for a business acquisition, identifiable assets and liabilities, which are acquired but do not satisfy the criteria … for separate recognition when the acquisition is initially accounted for, should be recognised subsequently as and when they satisfy the criteria. The carrying amounts of identifiable assets and liabilities acquired should be adjusted when, subsequent to acquisition, additional evidence becomes available to assist with the estimation of the amounts assigned to those identifiable assets and liabilities when the acquisition was initially accounted for. The amount assigned to goodwill or negative goodwill should also be adjusted, when necessary, to the extent that: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. The issues are, in making adjustments in the limited circumstances described by IAS 22.71: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. This interpretation does not apply to the following items as they are specifically addressed elsewhere in International Accounting Standards: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Disclosure 
 8. Adjustments to the carrying amounts of identifiable assets or liabilities or goodwill or negative goodwill should be disclosed and explained in the financial statements of the period in which the adjustment is made. The amount of an adjustment which relates to prior and comparative periods should also be disclosed. 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-23 
Property, plant and equipment — major inspection or overhaul costs 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 5. The cost of a major inspection or overhaul of an item of property, plant and equipment occurring at regular intervals over the useful life of an asset and made to allow the continued use of the asset should be recognised as an expense in the period in which it is incurred except when: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-24 
Earnings per share — financial instruments and other contracts that may be settled in shares 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 4. All financial instruments or other contracts that may result in the issuance of ordinary shares of the reporting enterprise to the holder of the financial instrument or other contract, at the option of the issuer or the holder, are potential ordinary shares of the enterprise. 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-25 
Income taxes — changes in the tax status of an enterprise or its shareholders 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consensus 
 4. A change in the tax status of an enterprise or its shareholders does not give rise to increases or decreases in amounts recognised directly in equity. The current and deferred tax consequences of a change in tax status should be included in net profit or loss for the period, unless those consequences relate to transactions and events that result, in the same or a different period, in a direct credit or charge to the recognised amount of equity. Those tax consequences that relate to changes in the recognised amount of equity, in the same or a different period (not included in net profit or loss), should be charged or credited directly to equity. 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-27 
Evaluating the substance of transactions involving the legal form of a lease 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. When an arrangement with an investor involves the legal form of a lease, the issues are: 

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Consensus 
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. IAS 17 applies when the substance of an arrangement includes the conveyance of the right to use an asset for an agreed period of time. Indicators that individually demonstrate that an arrangement may not, in substance, involve a lease under IAS 17 include (Appendix B provides illustrations of application of this interpretation): 

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 6. The definitions and guidance in paragraphs 49 to 64 of the framework should be applied in determining whether, in substance, a separate investment account and lease payment obligations represent assets and liabilities of the enterprise. Indicators that collectively demonstrate that, in substance, a separate investment account and lease payment obligations do not meet the definitions of an asset and a liability and should not be recognised by the enterprise include: 

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 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. The criteria in paragraph 20 of IAS 18 should be applied to the facts and circumstances of each arrangement in determining when to recognise a fee as income that an enterprise might receive. Factors such as whether there is continuing involvement in the form of significant future performance obligations necessary to earn the fee, whether there are retained risks, the terms of any guarantee arrangements, and the risk of repayment of the fee, should be considered. Indicators that individually demonstrate that recognition of the entire fee as income when received, if received at the beginning of the arrangement, is inappropriate include: 

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 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure 
 10. All aspects of an arrangement that does not, in substance, involve a lease under IAS 17 should be considered in determining the appropriate disclosures that are necessary to understand the arrangement and the accounting treatment adopted. An enterprise should disclose the following in each period that an arrangement exists: 

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 11. The disclosures required in accordance with paragraph 10 of this interpretation should be provided individually for each arrangement or in aggregate for each class of arrangement. A class is a grouping of arrangements with underlying assets of a similar nature (e.g. power plants). 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-28 
Business combinations — ‘date of exchange’ and fair value of equity instruments 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. The issues are: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Disclosure 
 7. When a published price of an equity instrument issued as purchase consideration exists at the date of exchange, but has not been used as the instruments' fair value, an enterprise should disclose: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. When an equity instrument issued as purchase consideration does not have a published price at the date of exchange, an enterprise should disclose that fact and the method and significant assumptions applied in determining the fair value. 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-29 
Disclosure — service concession arrangements 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. A service concession arrangement generally involves the concession provider conveying for the period of the concession to the concession operator: 

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 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consensus 
 6. All aspects of a service concession arrangement should be considered in determining the appropriate disclosures in the notes to the financial statements. A concession operator and a concession provider should disclose the following in each period: 

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 7. The disclosures required in accordance with paragraph 6 of this interpretation should be provided individually for each service concession arrangement or in aggregate for each class of service concession arrangements. A class is a grouping of service concession arrangements involving services of a similar nature (e.g. toll collections, telecommunications and water treatment services). 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-30 
Reporting currency — translation from measurement currency to presentation currency 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. The issues are: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 6. When financial statements are presented in a currency other than the measurement currency determined under SIC-19, and the measurement currency is not the currency of a hyperinflationary economy, the requirements of SIC-19.9 should be applied as follows: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. When financial statements are presented in a currency other than the measurement currency determined under SIC-19, and the measurement currency is the currency of a hyperinflationary economy, the requirements of SIC-19.9 should be applied as follows: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Disclosure 
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. When additional information not required by International Accounting Standards is displayed in financial statements and in a currency, other than the currency used in presenting the financial statements, as a convenience to certain users, an enterprise should, 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-31 
Revenue — barter transactions involving advertising services 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consensus 
 5. Revenue from a barter transaction involving advertising cannot be measured reliably at the fair value of advertising services received. However, a seller can reliably measure revenue at the fair value of the advertising services it provides in a barter transaction, by reference only to non-barter transactions that: 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-32 
Intangible assets — web site costs 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. The stages of a web site's development can be described as follows: 

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 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. When accounting for internal expenditure on the development and operation of an enterprise's own web site for internal or external access, the issues are: 

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 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consensus 
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 9. Any internal expenditure on the development and operation of an enterprise's own web site should be accounted for in accordance with IAS 38. The nature of each activity for which expenditure is incurred (eg training employees and maintaining the web site) and the web site's stage of development or post-development should be evaluated to determine the appropriate accounting treatment (additional guidance is provided in the appendix to this interpretation). For example: 

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 10. A web site that is recognised as an intangible asset under paragraph 8 of this interpretation should be measured after initial recognition by applying the requirements of IAS 38.63 to 78. The best estimate of a web site's useful life should be short. 

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STANDING INTERPRETATIONS COMMITTEE INTERPRETATION SIC-33 
Consolidation and equity method — potential voting rights and allocation of ownership interests 

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Issue 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. The issues are: 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Consensus 
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. When applying the consolidation and the equity method of accounting, instruments containing potential voting rights should be accounted for as part of the investment in a subsidiary and the investment in an associate respectively only when the proportion of ownership interests is allocated by taking into account the eventual exercise of those potential voting rights in accordance with paragraph 5 of this interpretation. In all other circumstances, instruments containing potential voting rights should be accounted for in accordance with IAS 39. 
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IFRIC INTERPRETATION 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities 
REFERENCES 

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BACKGROUND 

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SCOPE 

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ISSUE 

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CONSENSUS 

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EFFECTIVE DATE 

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TRANSITION 

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APPENDIX Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards 

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Changes in existing decommissioning, restoration and similar liabilities included in the cost of property, plant and equipment 

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IFRIC INTERPRETATION 2 Members’ Shares in Cooperative Entities and Similar Instruments 
REFERENCES 

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BACKGROUND 
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SCOPE 
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ISSUE 
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CONSENSUS 
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DISCLOSURE 
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EFFECTIVE DATE 
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APPENDIX 
EXAMPLES OF APPLICATION OF THE CONSENSUS 
This appendix is an integral part of the Interpretation. 
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UNCONDITIONAL RIGHT TO REFUSE REDEMPTION (paragraph 7) 
Example 1 
Facts 
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Classification 
 A3 The entity has the unconditional right to refuse redemption and the members’ shares are equity. IAS 32 establishes principles for classification that are based on the terms of the financial instrument and notes that a history of, or intention to make, discretionary payments does not trigger liability classification. Paragraph AG26 of IAS 32 states: 

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Example 2 
Facts 
 A4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Classification 
 A5 The entity does not have the unconditional right to refuse redemption and the members’ shares are a financial liability. The restrictions described above are based on the entity’s ability to settle its liability. They restrict redemptions only if the liquidity or reserve requirements are not met and then only until such time as they are met. Hence, they do not, under the principles established in IAS 32, result in the classification of the financial instrument as equity. Paragraph AG25 of IAS 32 states: 

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PROHIBITIONS AGAINST REDEMPTION (paragraphs 8 and 9) 
Example 3 
Facts 
 A6 A cooperative entity has issued shares to its members at different dates and for different amounts in the past as follows: 

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Classification 
Before the governing charter is amended 
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After the governing charter is amended 
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Example 4 
Facts 
 A11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Classification 
 A12 In this case, CU 750 000 would be classified as equity and CU 150 000 would be classified as financial liabilities. In addition to the paragraphs already cited, paragraph 18(b) of IAS 32 states in part: 

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Example 5 
Facts 
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Classification 
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Example 6 
Facts 
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Classification 
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Example 7 
Facts 
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Classification 
 A19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRIC INTERPRETATION 4 Determining whether an arrangement contains a lease 
REFERENCES 

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BACKGROUND 
 1. An entity may enter into an arrangement, comprising a transaction or a series of related transactions, that does not take the legal form of a lease but conveys a right to use an asset (e.g. an item of property, plant or equipment) in return for a payment or series of payments. Examples of arrangements in which one entity (the supplier) may convey such a right to use an asset to another entity (the purchaser), often together with related services, include: 

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SCOPE 
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ISSUES 
 5. The issues addressed in this Interpretation are: 

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CONSENSUS 
Determining whether an arrangement is, or contains, a lease 
 6. Determining whether an arrangement is, or contains, a lease shall be based on the substance of the arrangement and requires an assessment of whether: 

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Fulfilment of the arrangement is dependent on the use of a specific asset 
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Arrangement conveys a right to use the asset 
 9. An arrangement conveys the right to use the asset if the arrangement conveys to the purchaser (lessee) the right to control the use of the underlying asset. The right to control the use of the underlying asset is conveyed if any one of the following conditions is met: 

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Assessing or reassessing whether an arrangement is, or contains, a lease 
 10. The assessment of whether an arrangement contains a lease shall be made at the inception of the arrangement, being the earlier of the date of the arrangement and the date of commitment by the parties to the principal terms of the arrangement, on the basis of all of the facts and circumstances. A reassessment of whether the arrangement contains a lease after the inception of the arrangement shall be made only if any one of the following conditions is met: 

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 11. A reassessment of an arrangement shall be based on the facts and circumstances as of the date of reassessment, including the remaining term of the arrangement. Changes in estimate (for example, the estimated amount of output to be delivered to the purchaser or other potential purchasers) would not trigger a reassessment. If an arrangement is reassessed and is determined to contain a lease (or not to contain a lease), lease accounting shall be applied (or cease to apply) from: 

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Separating payments for the lease from other payments 
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 15. If a purchaser concludes that it is impracticable to separate the payments reliably, it shall: 

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EFFECTIVE DATE 
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TRANSITION 
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 APPENDIX Amendments to IFRS 1 first-time adoption of International Financial Reporting Standards 

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LEASES 
IFRIC 4 Determining whether an arrangement contains a lease 
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IFRIC INTERPRETATION 5 (incorporating an Amendment to IAS 39) Rights to Interests arising from decommissioning, restoration and environmental rehabilitation funds 
REFERENCES 

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BACKGROUND 
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 2. Contributions to these funds may be voluntary or required by regulation or law. The funds may have one of the following structures: 

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 3. Such funds generally have the following features: 

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SCOPE 
 4. This Interpretation applies to accounting in the financial statements of a contributor for interests arising from decommissioning funds that have both of the following features: 

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ISSUES 
 6. The issues addressed in this interpretation are: 

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CONSENSUS 
Accounting for an interest in a fund 
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 9. If a contributor does not have control, joint control or significant influence over the fund, the contributor shall recognise the right to receive reimbursement from the fund as a reimbursement in accordance with IAS 37. This reimbursement shall be measured at the lower of: 

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Accounting for obligations to make additional contributions 
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Disclosure 
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EFFECTIVE DATE 
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TRANSITION 
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 APPENDIX Amendment to IAS 39 Financial instruments: recognition and measurement 

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IFRIC INTERPRETATION 6 Liabilities arising from Participating in a Specific Market — Waste Electrical and Electronic Equipment 
REFERENCES 

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BACKGROUND 

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SCOPE 

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ISSUE 

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CONSENSUS 

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EFFECTIVE DATE 

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TRANSITION 

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IFRIC INTERPRETATION 7 
 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies 
REFERENCES 

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BACKGROUND 
 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ISSUES 
 2 The questions addressed in this Interpretation are: 

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CONSENSUS 
 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4 At the closing balance sheet date, deferred tax items are recognised and measured in accordance with IAS 12. However, the deferred tax figures in the opening balance sheet for the reporting period shall be determined as follows: 

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EFFECTIVE DATE 
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IFRIC INTERPRETATION 8 Scope of IFRS 2 
REFERENCES 

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BACKGROUND 
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SCOPE 
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ISSUE 
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CONSENSUS 
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EFFECTIVE DATE 
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TRANSITION 
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IFRIC INTERPRETATION 9 Reassessment of Embedded Derivatives 
REFERENCES 

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BACKGROUND 
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 2. IAS 39 paragraph 11 requires an embedded derivative to be separated from the host contract and accounted for as a derivative if, and only if: 

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SCOPE 
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ISSUE 
 6. IAS 39 requires an entity, when it first becomes a party to a contract, to assess whether any embedded derivatives contained in the contract are required to be separated from the host contract and accounted for as derivatives under the Standard. This Interpretation addresses the following issues: 

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CONSENSUS 
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EFFECTIVE DATE AND TRANSITION 
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IFRIC INTERPRETATION 10 Interim Financial Reporting and Impairment 
REFERENCES 

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BACKGROUND 
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ISSUE 
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 7. The Interpretation addresses the following issue: 

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CONSENSUS 
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EFFECTIVE DATE AND TRANSITION 
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IFRIC INTERPRETATION 11 IFRS 2 — Group and Treasury Share Transactions 
REFERENCES 

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ISSUES 
 1. This Interpretation addresses two issues. The first is whether the following transactions should be accounted for as equity-settled or as cash-settled under the requirements of IFRS 2: 

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 2. The second issue concerns share-based payment arrangements that involve two or more entities within the same group. For example, employees of a subsidiary are granted rights to equity instruments of its parent as consideration for the services provided to the subsidiary. IFRS 2 paragraph 3 states that: 

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 3. Therefore, the second issue addresses the following share-based payment arrangements: 

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CONSENSUS 
Share-based payment arrangements involving an entity’s own equity instruments (paragraph 1) 
 7. Share-based payment transactions in which an entity receives services as consideration for its own equity instruments shall be accounted for as equity-settled. This applies regardless of whether the entity chooses or is required to buy those equity instruments from another party to satisfy its obligations to its employees under the share-based payment arrangement. It also applies regardless of whether: 

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SHARE-BASED PAYMENT ARRANGEMENTS INVOLVING EQUITY INSTRUMENTS OF THE PARENT 
A parent grants rights to its equity instruments to the employees of its subsidiary (paragraph 3(a)) 
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A subsidiary grants rights to equity instruments of its parent to its employees (paragraph 3(b)) 
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EFFECTIVE DATE 
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TRANSITION 
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