10/25/2012. Today s Agenda. Objective. MHM Executive Education Series: IAS 40 - Investment Property

Save this PDF as:

Size: px
Start display at page:

Download "10/25/2012. Today s Agenda. Objective. MHM Executive Education Series: IAS 40 - Investment Property"

Transcription

1 MHM Executive Education Series: IAS 40 - Investment Property Presented by: Keith Peterka Shareholder, Mayer Hoffman McCann P.C. October 25, 2012 Today s Agenda IAS 40 Investment Properties U.S. GAAP Project Status on Investment Properties Objective IAS 40 identifies what an investment property is, how it differs from property, plant and equipment (owneroccupied property); and what recognition, measurement and disclosure standards apply to investment properties. 1

2 What is an Investment Property? Investment property is property (land or a building or part of a building or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for: A. Use in the production or supply of goods or services or for administrative purposes; or B. Sale in the ordinary course of business. What is an Investment Property? Operating Lease Option Property held by lessee under operating lease may be classified and accounted for as investment property if: Property otherwise meets the definition of investment property, and Lessee uses the fair value model This classification alternative is available on a property-by-property basis. Investment Property Investment property is held to earn rentals or for capital appreciation or both. Therefore, an investment property generates cash flows largely independently of the other assets held by an entity. This distinguishes investment property from owner-occupied property. The production or supply of goods or service,or the use of property for administrative purposes, generates cash flows that are attributable not only to property, but also to other assets used in the production or supply process. IAS 16 Property, Plant and Equipment applies to owner-occupied property. 2

3 Investment Property or Not? Land held for long-term capital appreciation rather than for short-term sale in the ordinary course of business? Property acquired exclusively with a view to subsequent disposal in the near future or for development and resale? Land held for a currently undetermined future use? Property that is leased to another entity under a finance lease? Investment Property or Not? Land held for long-term capital appreciation rather than for shortterm sale in the ordinary course of business? Investment Property. Property acquired exclusively l with a view to subsequent disposal in the near future or for development and resale? Not Investment Property. Land held for a currently undetermined future use? Investment Property*. Property that is leased to another entity under a finance lease? Not Investment Property. Definitions Carrying amount is the amount at which an asset is recognised in the balance sheet. Cost is the amount of cash or cash equivalents paid Cost is the amount of cash or cash equivalents paid or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction. 3

4 Definitions Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Owner-occupied property is property held (by the owner or by the lessee under a finance lease) for use in the production or supply of goods or services or for administrative purposes. Investment Property - Recognition Investment property shall be recognised as an asset when, and only when: 1) It is probable that the future economic benefits that are associated with the investment property will flow to the entity; and 2) The cost of the investment property can be measured reliably. Investment Property - Recognition Investment property is recognized initially at cost applying the cost model of IAS 16 Property, Plant and Equipment including what is capitalized in cost and the principles p for non-monetary transactions. Leased investment property is measured according to IAS 17 Leases. 4

5 Investment Property - Recognition After initial recognition, an entity has a choice of methods to account for investment property: 1. Fair Value Model (FVM), or 2. Cost Model (CM) Must apply one model to all of its investment property (Accounting Policy Decision). Subsequent Measurement Fair value model (FVM): Assets are measured at fair value. Changes in fair value are recognized in profit or loss in period of change. No depreciation is recorded. Fair values continue to be used even if difficult to measure reliably. - Fair value is determined in accordance with IFRS An entity is encouraged, but not required, to measure the fair value of investment property on the basis of a valuation by an independent valuation professional who holds a recognized and relevant professional qualification and has recent experience in the location and category of the investment property being valued. Fair Value Measurement - Illustration Property is acquired on September 24, 2009 for $400K. Fair Value December 31, 2009 $350K Fair Value December 31, 2010 $390K Fair Value December 31, 2011 $410K 5

6 Fair Value Measurement - Illustration 2009 Loss on Investment Property $50K Investment Property $50K (400K 50K = 350K) 2010 Investment Property $40K Gain on Investment Property $40K (350K+40K = 390K) 2011 Investment Property $20K Gain on Investment Property $20K (390K+20K = 410K) Fair Value Model There is a rebuttable presumption that an entity can reliably measure the fair value of an investment property on a continuing basis. However, in exceptional cases, there is clear evidence when an entity first acquires an investment property (or when an existing property p first becomes investment property p after a change in use) that the fair value of the investment property is not reliably measurable on a continuing basis. This arises when, and only when, the market for comparable properties is inactive (eg there are few recent transactions, price quotations are not current or observed transaction prices indicate that the seller was forced to sell) and alternative reliable measurements of fair value (for example, based on discounted cash flow projections) are not available. Fair Value Model If an entity determines that the fair value of an investment property under construction is not reliably measurable but expects the fair value of the property to be reliably measurable when construction is complete, it shall measure that investment property under construction at cost until either its fair value becomes reliably measurable or construction is completed (whichever is earlier). If an entity determines that the fair value of an investment property (other than an investment property under construction) is not reliably measurable on a continuing basis, the entity shall measure that investment property using the cost model in IAS 16. The residual value of the investment property shall be assumed to be zero. The entity shall apply IAS 16 until disposal of the investment property 6

7 Cost Model of Measurement Applies cost model described in IAS 16 Assets reported at cost less accumulated depreciation and accumulated impairment losses Depreciation expense recognized each period Transfers Transfers to, or from, investment property shall be made when, and only when, there is a change in use, evidenced by: A. Commencement of owner-occupation, for a transfer from investment property to owner-occupiedoccupied property. B. Commencement of development with a view to sale, for a transfer from investment property to inventories. C. End of owner-occupation, for a transfer from owner-occupied property to investment property; or D. Commencement of an operating lease to another party, for a transfer from inventories to investment property. Transfers Cost Model Cost Model From To Treatment PPE IP No change in cost Inventory IP No change in cost IP PPE No change in cost IP Inventory No change in cost 7

8 Transfers Fair Value Model IP at fair value From To Treatment PPE at cost IP Value IP at date of transfer in accordance with IAS 16 (revaluation) Inventory IP Change to P & L IP PPE No change in value IP Inventory No change in value Derecognition Derecognize Investment Property On disposal when sold or transferred under a finance lease, or On retirement when permanently removed from use and no benefits are expected from its disposal. Gains and losses on disposal generally recognized in profit or loss. Disclosures 8

9 US GAAP Investment Property In October 2011, the FASB proposed guidance that would have required entities that meet certain criteria to measure their investment properties at fair value through net income. The primary objectives of the project were: a. Align U.S. GAAP with IFRS in connection with the FASB and IASB s joint lease accounting project b. Narrow the diversity in practice related to accounting and reporting by certain real estate entities US GAAP Investment Property At the FASB s meeting on August 8, 2012, the Board discussed the next steps on its project on investment property entities. The FASB did not make a final decision on the path forward, and tentatively decided not to continue developing an entity-based approach for investment property. Questions? 9

10 Speaker Biography Keith Peterka, CPA Shareholder Mayer Hoffman McCann P.C With more than 19 years of experience in public accounting, Keith performs national firm responsibilities for IFRS, fair value accounting and auditing, revenue recognition and business combinations. He has also developed national training programs for accounting pronouncements and complex accounting topics. Keith is a subject matter expert for IFRS, SEC reporting and fair value accounting in MHM s Professional Standards Group. He also is a member on the IFRS Foundation's Small & Medium-sized Entities (SMEs) Implementation Group. 10

IAS 40 - Investment Property

IAS 40 - Investment Property IAS 40 - Investment Property 1 Definition of investment property Investment property is property (land or a building or part of a building or both) held (by the owner or by the lessee under a finance lease)

More information

FUNDAMENTALS OF IFRS

FUNDAMENTALS OF IFRS INVESTMENT PROPERTY (IAS 40) FUNDAMENTALS OF IFRS 20.1 FUNDAMENTALS OF IFRS CHAPTER 20 Investment Property (IAS 40) 20.2 CHAPTER TWENTY INVESTMENT PROPERTY (IAS 40) 20 Introduction Investment Property

More information

International Accounting Standard 40 Investment Property

International Accounting Standard 40 Investment Property International Accounting Standard 40 Investment Property Objective 1 The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements.

More information

HKAS 40 Revised July 2012June 2014. Hong Kong Accounting Standard 40. Investment Property

HKAS 40 Revised July 2012June 2014. Hong Kong Accounting Standard 40. Investment Property HKAS 40 Revised July 2012June 2014 Hong Kong Accounting Standard 40 Investment Property HKAS 40 COPYRIGHT Copyright 2014 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial Reporting

More information

POLICY ASSET MANAGEMENT - INVESTMENT PROPERTY FINANCE

POLICY ASSET MANAGEMENT - INVESTMENT PROPERTY FINANCE Document #:5968866 POLICY CP ID: OS Date adopted: 18/09/2012 File no: 416945-1 Minute number: 274/2012 Policy title: Stream: Branch: ASSET MANAGEMENT - INVESTMENT PROPERTY ORGANISATIONAL SERVICES FINANCE

More information

AASB Standard AASB 140. August 2015. Investment Property. Federal Register of Legislative Instruments F2015L01611

AASB Standard AASB 140. August 2015. Investment Property. Federal Register of Legislative Instruments F2015L01611 AASB Standard AASB 140 August 2015 Investment Property Obtaining a copy of this Accounting Standard This Standard is available on the AASB website: www.aasb.gov.au. Australian Accounting Standards Board

More information

Investment Property. Indian Accounting Standard (Ind AS) 40. Investment Property

Investment Property. Indian Accounting Standard (Ind AS) 40. Investment Property Investment Property Indian Accounting Standard (Ind AS) 40 Investment Property Contents Paragraphs OBJECTIVE 1 SCOPE 2 4 DEFINITIONS 5 15 RECOGNITION 16 19 MEASUREMENT AT RECOGNITION 20-29 MEASUREMENT

More information

Indian Accounting Standard (Ind AS) 40 Investment Property

Indian Accounting Standard (Ind AS) 40 Investment Property Indian Accounting Standard (Ind AS) 40 Investment Property Contents Paragraphs OBJECTIVE 1 SCOPE 2 4 DEFINITIONS 5 15 RECOGNITION 16 19 MEASUREMENT AT RECOGNITION 20-29 MEASUREMENT AFTER RECOGNITION 30-56

More information

IPSAS 16 INVESTMENT PROPERTY

IPSAS 16 INVESTMENT PROPERTY IPSAS 16 INVESTMENT PROPERTY Acknowledgment This International Public Sector Accounting Standard (IPSAS) is drawn primarily from International Accounting Standard (IAS) 40 (Revised 2003), Investment Property,

More information

Sri Lanka Accounting Standard -LKAS 40. Investment Property

Sri Lanka Accounting Standard -LKAS 40. Investment Property Sri Lanka Accounting Standard -LKAS 40 Investment Property -1088- 85-1089- 4 This Standard does not apply to: biological assets related to agricultural activity (seelkas 41 Agriculture); and mineral rights

More information

International accounting. Introduction to IAS/IFRS a.a. 2015/2016. Overview of session. 1. Objective. 2. Definitions. 3. Recognition. 4.

International accounting. Introduction to IAS/IFRS a.a. 2015/2016. Overview of session. 1. Objective. 2. Definitions. 3. Recognition. 4. UNIVERSITÀ DEGLI STUDI DI BERGAMO International accounting 910005 IAS 40 Investment Property Prof. Gervasio Daniele Introduction to IAS/IFRS a.a. 2015/2016 Overview of session 1. Objective 2. Definitions

More information

MPSAS 16 Investment Property

MPSAS 16 Investment Property MPSAS ED 1/2012 16 GOVERNMENT OF MALAYSIA MPSAS 16 Investment Property August 2013 April 2012 MPSAS 16 INVESTMENT PROPERTY Acknowledgment The Malaysian Public Sector Accounting Standard (MPSAS) is based

More information

IPSAS 16 INVESTMENT PROPERTY

IPSAS 16 INVESTMENT PROPERTY INVESTMENT PROPERTY Acknowledgment This International Public Sector Accounting Standard is drawn primarily from International Accounting Standard (IAS) 40 (Revised 2003), Investment Property published

More information

Module 16 Investment Property

Module 16 Investment Property IFRS for SMEs (2009) + Q&As IFRS Foundation: Training Material for the IFRS for SMEs Module 16 Investment Property IFRS Foundation: Training Material for the IFRS for SMEs including the full text of Section

More information

IPSAS 16 INVESTMENT PROPERTY

IPSAS 16 INVESTMENT PROPERTY IPSAS 16 INVESTMENT PROPERTY Acknowledgment This International Public Sector Accounting Standard is drawn primarily from International Accounting Standard (IAS) 40 (2000), Investment Property published

More information

SLFRS Baseline 2011 Investment Property. LKAS 40 - Investment Property. Harsha Rajan Director, KPMG. 24 th July 2012

SLFRS Baseline 2011 Investment Property. LKAS 40 - Investment Property. Harsha Rajan Director, KPMG. 24 th July 2012 1 LKAS 40 - Investment Property Harsha Rajan Director, KPMG 24 th July 2012 1 Agenda Definition and scope Accounting for investment property Disclosure The closing SLFRS Baseline 2011 3 Definition Property

More information

IASB/FASB Meeting Week commencing September 19, 2011. Education session for week commencing September 5, 2011

IASB/FASB Meeting Week commencing September 19, 2011. Education session for week commencing September 5, 2011 IASB/FASB Meeting Week commencing September 19, 2011 IASB Agenda reference 2A Staff Paper Education session for week commencing September 5, 2011 FASB Agenda reference Contact(s) Taylor Paul tjpaul@fasb.org

More information

1. The purpose of this paper is to discuss disclosure requirements for a lessor in the final leases standard.

1. The purpose of this paper is to discuss disclosure requirements for a lessor in the final leases standard. IASB Agenda ref 3B STAFF PAPER July 2014 REG FASB IASB Meeting Project Paper topic Leases Lessor disclosure requirements CONTACT(S) Roberta Ravelli rravelli@ifrs.org +44 (0) 20 7246 6935 Scott A. Muir

More information

IASB EMERGING ECONOMIES GROUP 8th MEETING December 11-12, 2014 ISSUES FOR DISCUSSON: OTHER NON-FINANSIAL ASSETS AND RELATED MATTERS

IASB EMERGING ECONOMIES GROUP 8th MEETING December 11-12, 2014 ISSUES FOR DISCUSSON: OTHER NON-FINANSIAL ASSETS AND RELATED MATTERS IASB EMERGING ECONOMIES GROUP 8th MEETING December 11-12, 2014 ISSUES FOR DISCUSSON: OTHER NON-FINANSIAL ASSETS AND RELATED MATTERS National Organization for Financial Accounting and Reporting Standards

More information

Chapter Twenty Investment property. Author: Shlomi Shuv

Chapter Twenty Investment property. Author: Shlomi Shuv Chapter Twenty Investment property January 2013 Contents General... 3 Scope... 4 Definition of Investment Property... 5 Recognition and Initial Measurement... 8 Measurement after Initial Recognition...

More information

IAS 38 Intangible Assets

IAS 38 Intangible Assets 2012 Technical Summary IAS 38 Intangible Assets as issued at 1 January 2012. Includes IFRSs with an effective date after 1 January 2012 but not the IFRSs they will replace. This extract has been prepared

More information

Leases (Topic 840) Proposed Accounting Standards Update. Issued: August 17, 2010 Comments Due: December 15, 2010

Leases (Topic 840) Proposed Accounting Standards Update. Issued: August 17, 2010 Comments Due: December 15, 2010 Proposed Accounting Standards Update Issued: August 17, 2010 Comments Due: December 15, 2010 Leases (Topic 840) This Exposure Draft of a proposed Accounting Standards Update of Topic 840 is issued by the

More information

Proposed Lease Accounting Changes: Impact on Asset Finance Deals

Proposed Lease Accounting Changes: Impact on Asset Finance Deals Proposed Lease Accounting Changes: Impact on Asset Finance Deals In August 2010, the International Accounting Standards Board ( IASB ) issued a proposal which, if adopted, will overhaul lease accounting

More information

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. International Accounting Standard 16 Property, Plant and Equipment Objective 1 The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of

More information

A practical guide to accounting for properties under construction

A practical guide to accounting for properties under construction Asset Management A practical guide to accounting for properties under construction March 2010 update PricewaterhouseCoopers IFRS and corporate governance publications and tools 2010 IFRS technical publications

More information

Statutory Financial Statements

Statutory Financial Statements Statutory Financial Statements for the year ended December 31, 2007 by Kardan NV, Amsterdam, the Netherlands Consolidated IFRS Financial Statements Consolidated IFRS Balance Sheet 54 Consolidated IFRS

More information

International Accounting Standard 12 Income Taxes. Objective. Scope. Definitions IAS 12

International Accounting Standard 12 Income Taxes. Objective. Scope. Definitions IAS 12 International Accounting Standard 12 Income Taxes Objective The objective of this Standard is to prescribe the accounting treatment for income taxes. The principal issue in accounting for income taxes

More information

International Accounting Standard 38 (IAS 38), Intangible Assets

International Accounting Standard 38 (IAS 38), Intangible Assets International Accounting Standard 38 (IAS 38), Intangible Assets By BRIAN FRIEDRICH, MEd, CGA, FCCA(UK), CertIFR and LAURA FRIEDRICH, MSc, CGA, FCCA(UK), CertIFR Updated By STEPHEN SPECTOR, MA, FCGA This

More information

INTANGIBLE ASSETS IAS 38

INTANGIBLE ASSETS IAS 38 INTANGIBLE ASSETS IAS 38 Road Map on IAS 38 1. Definition of intangible asset 2. Recognition and measurement 3. Recognition of expense 4. Measurement after recognition 5. Useful life 6. Intangible assets

More information

(c) Are insurance contracts monetary items? (paragraphs 13-14)

(c) Are insurance contracts monetary items? (paragraphs 13-14) IASB/FASB Meeting June 2010 week beginning 14 June IASB agenda reference FASB memo reference 2D 50D Project Topic Insurance Contracts Foreign currency cash flows Purpose of this paper 1. This paper deals

More information

Volex Group plc. Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement. 1.

Volex Group plc. Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement. 1. Volex Group plc Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement 1. Introduction The consolidated financial statements of Volex Group plc

More information

Non-current Assets Held for Sale and Discontinued Operations

Non-current Assets Held for Sale and Discontinued Operations HKFRS 5 Revised June November 2014 Effective for annual periods beginning on or after 1 January 2005 Hong Kong Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations

More information

Accounting and Reporting Policy FRS 102. Staff Education Note 4 Investment properties

Accounting and Reporting Policy FRS 102. Staff Education Note 4 Investment properties Accounting and Reporting Policy FRS 102 Staff Education Note 4 Investment properties Disclaimer This Education Note has been prepared by FRC staff for the convenience of users of FRS 102 The Financial

More information

UNCONTROLLED IF PRINTED ACCOUNTING POLICY

UNCONTROLLED IF PRINTED ACCOUNTING POLICY UNCONTROLLED IF PRINTED NAVY CANTEENS ACCOUNTING POLICY Applicability: This procedure is applicable to all RANCCB directors and Navy Canteens, managers and staff in all Navy Canteens business units. Legislation:

More information

NEED TO KNOW. Leases The 2013 Exposure Draft

NEED TO KNOW. Leases The 2013 Exposure Draft NEED TO KNOW Leases The 2013 Exposure Draft 2 LEASES - THE 2013 EXPOSURE DRAFT TABLE OF CONTENTS Introduction 3 Existing guidance and the rationale for change 4 The IASB/FASB project to date 5 The main

More information

Acal plc. Accounting policies March 2006

Acal plc. Accounting policies March 2006 Acal plc Accounting policies March 2006 Basis of preparation The consolidated financial statements of Acal plc and all its subsidiaries have been prepared in accordance with International Financial Reporting

More information

International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations

International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations EC staff consolidated version as of 21/06/2012, FOR INFORMATION PURPOSES ONLY EN IFRS 5 International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations Objective

More information

Note 2 SIGNIFICANT ACCOUNTING

Note 2 SIGNIFICANT ACCOUNTING Note 2 SIGNIFICANT ACCOUNTING POLICIES BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS The consolidated financial statements have been prepared in accordance with International Financial Reporting

More information

Transition to International Financial Reporting Standards

Transition to International Financial Reporting Standards Transition to International Financial Reporting Standards Topps Tiles Plc In accordance with IFRS 1, First-time adoption of International Financial Reporting Standards ( IFRS ), Topps Tiles Plc, ( Topps

More information

Summary of IFRS Exposure Draft Leases

Summary of IFRS Exposure Draft Leases April 2014 The International Accounting Standards Board (IASB) recently issued a revised Exposure Draft (ED) relating to leases. Once these proposals are finalized the new guidance will replace IAS 17

More information

IASB Meeting Agenda reference 4 Week Date. the objective of a limited scope project to amend IAS 12 Income Taxes and

IASB Meeting Agenda reference 4 Week Date. the objective of a limited scope project to amend IAS 12 Income Taxes and IASB Meeting Agenda reference 4 Week Date Staff Paper beginning 15 March 2010 Project Topic Income Tax Scope Cover note Purpose of this paper 1. This paper discusses: the objective of a limited scope project

More information

ARABIAN SCANDINAVIAN INSURANCE COMPANY P.L.C.

ARABIAN SCANDINAVIAN INSURANCE COMPANY P.L.C. ARABIAN SCANDINAVIAN INSURANCE COMPANY P.L.C. Financial statements and independent auditor s report for the year ended 31 December 2012 ARABIAN SCANDINAVIAN INSURANCE COMPANY P.L.C. Contents Pages Independent

More information

Box Credit, LLC Mill Valley, CA

Box Credit, LLC Mill Valley, CA Anders Norlin Mill Valley, CA Financing i of Storage Containers and related equipment Business Consulting Business Brokerage Founded 2001 by Tes and Anders Norlin 1 New Lease Accounting Standards What

More information

Fixed Assets. Name: SudhirJain M. No.: 213157

Fixed Assets. Name: SudhirJain M. No.: 213157 Fixed Assets Name: SudhirJain M. No.: 213157 Agenda AS- 10 Accounting for Fixed Assets Introduction & Scope Definitions and other relevant provisions Relevant provisions of other Accounting Standards applicable

More information

Property, Plant and Equipment

Property, Plant and Equipment International Accounting Standard 16 Property, Plant and Equipment This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS 16 Property, Plant and Equipment was issued by

More information

EXPLANATORY NOTES. 1. Summary of accounting policies

EXPLANATORY NOTES. 1. Summary of accounting policies 1. Summary of accounting policies Reporting Entity Taranaki Regional Council is a regional local authority governed by the Local Government Act 2002. The Taranaki Regional Council group (TRC) consists

More information

1. Accounting policies for consolidated financial statements

1. Accounting policies for consolidated financial statements 1 1. Accounting policies for consolidated financial statements Corporate information The Sanoma Group comprises three reporting segments: Media, News and Learning. The Media segment consists of four strategic

More information

Chapter 21 The Statement of Cash Flows Revisited

Chapter 21 The Statement of Cash Flows Revisited Chapter 21 The Statement of Cash Flows Revisited AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools, departments,

More information

ACCOUNTING FOR AND AUDIT OF PROPERTY, PLANT AND EQUIPMENT

ACCOUNTING FOR AND AUDIT OF PROPERTY, PLANT AND EQUIPMENT ACCOUNTING FOR AND AUDIT OF PROPERTY, PLANT AND EQUIPMENT PRESENTED BY SOLOMON SIMEON MANAGER: PEAK PROFESSIONAL SERVICES IN HOUSE SEMINAR SERIES NO 2 PEAK PROFESSIONAL SERVICES (CHARTERED ACCOUNTANTS)

More information

ACCT 265 Chapter 10 Review

ACCT 265 Chapter 10 Review ACCT 265 Chapter 10 Review This chapter deals with the accounting for Property Plant & Equipment (PPE) or Capital Assets. When recording cost of PPE, the price of the asset is not the only cost recorded

More information

An Overview. September 2011

An Overview. September 2011 An Overview September 2011 September 2011 Insights into IFRS: An overview 1 INSIGHTS INTO IFRS: AN OVERVIEW Insights into IFRS: An overview brings together all of the individual overview sections from

More information

4.1 PROPERTY, PLANT AND EQUIPMENT

4.1 PROPERTY, PLANT AND EQUIPMENT 4.1 PROPERTY, PLANT AND EQUIPMENT 4.1.1 Introduction 4.1.1.1 Authorities shall account for tangible fixed assets in accordance with IAS 16 Property, Plant and Equipment, except where interpretations or

More information

Example Directors' Report, Auditor's Report and Illustrative Financial Statements for Private Entities prepared in accordance with the HKFRS for

Example Directors' Report, Auditor's Report and Illustrative Financial Statements for Private Entities prepared in accordance with the HKFRS for Example Directors' Report, Auditor's Report and Illustrative Financial Statements for Private Entities prepared in accordance with the HKFRS for Private Entities (with Hong Kong Companies Ordinance disclosures)

More information

Muhammad Asif Iqbal Technical Advisor, SOCPA. March 7, 2012

Muhammad Asif Iqbal Technical Advisor, SOCPA. March 7, 2012 Saudi Accounting Framework in comparison with Framework Muhammad Asif Iqbal Technical Advisor, SOCPA ICAP KSA Chapter, Khobar March 7, 2012 Agenda Status of Accounting Standards in Saudi Arabia SOCPA Convergence

More information

Professional Level Essentials Module, Paper P2 (UK)

Professional Level Essentials Module, Paper P2 (UK) Answers Professional Level Essentials Module, Paper P2 (UK) Corporate Reporting (United Kingdom) December 2013 Answers 1 (a) Angel Group Statement of cash flows for the year ended 30 November 2013 Profit

More information

ACCOUNTING POLICY 1.1 FINANCIAL REPORTING. Policy Statement. Definitions. Area covered. This Policy is University-wide.

ACCOUNTING POLICY 1.1 FINANCIAL REPORTING. Policy Statement. Definitions. Area covered. This Policy is University-wide. POLICY Area covered ACCOUNTING POLICY This Policy is University-wide Approval date 5 May 2016 Policy Statement Intent Scope Effective date 5 May 2016 Next review date 5 May 2019 To establish decisions,

More information

SAMPLE MANUFACTURING COMPANY LIMITED CONSOLIDATED FINANCIAL STATEMENTS. Year ended December 31, 2011

SAMPLE MANUFACTURING COMPANY LIMITED CONSOLIDATED FINANCIAL STATEMENTS. Year ended December 31, 2011 SAMPLE MANUFACTURING COMPANY LIMITED CONSOLIDATED FINANCIAL STATEMENTS Year ended SAMPLE MANUFACTURING COMPANY LIMITED CONSOLIDATED FINANCIAL STATEMENTS For the year ended The information contained in

More information

The statements are presented in pounds sterling and have been prepared under IFRS using the historical cost convention.

The statements are presented in pounds sterling and have been prepared under IFRS using the historical cost convention. Note 1 to the financial information Basis of accounting ITE Group Plc is a UK listed company and together with its subsidiary operations is hereafter referred to as the Company. The Company is required

More information

Paper P2 (INT) Corporate Reporting (International) Tuesday 19 June 2012. Professional Level Essentials Module

Paper P2 (INT) Corporate Reporting (International) Tuesday 19 June 2012. Professional Level Essentials Module Professional Level Essentials Module Corporate Reporting (International) Tuesday 19 June 2012 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section

More information

SHIRE OF CARNARVON POLICY

SHIRE OF CARNARVON POLICY SHIRE OF CARNARVON POLICY POLICY NO C010 POLICY SIGNIFICANT ACCOUNTING POLICIES RESPONSIBLE DIRECTORATE CORPORATE COUNCIL ADOPTION Date: 27.5.14 Resolution No. FC 5/5/14 REVIEWED/MODIFIED Date: Resolution

More information

Property, Plant and Equipment

Property, Plant and Equipment STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 16 Property, Plant and Equipment SB-FRS 16 Property, Plant and Equipment applies to Statutory Boards for annual periods beginning on or after 1 January

More information

KARDAN N.V. AMSTERDAM, THE NETHERLANDS. IFRS Financial Statements. For the year ended December 31, 2007

KARDAN N.V. AMSTERDAM, THE NETHERLANDS. IFRS Financial Statements. For the year ended December 31, 2007 KARDAN N.V. AMSTERDAM, THE NETHERLANDS IFRS Financial Statements For the year ended December 31, 2007 CONTENTS Consolidated financial statements Consolidated balance sheet 1-2 Consolidated profit and loss

More information

Intangible assets other than Goodwill, Business combinations and Goodwill

Intangible assets other than Goodwill, Business combinations and Goodwill Intangible assets other than Goodwill, Business combinations and Goodwill 1.1. Recognition An entity shall apply the recognition criteria stated in Section Concepts and Principles of IFRS for SMEs for

More information

Joint Capital Markets Advisory Committee and Global Preparers Forum meeting 20 June 2012, Agenda paper 4, Appendix D

Joint Capital Markets Advisory Committee and Global Preparers Forum meeting 20 June 2012, Agenda paper 4, Appendix D Joint Capital Markets Advisory Committee and Global Preparers Forum meeting 20 June 2012, Agenda paper 4, Appendix D IASB Agenda ref 3D STAFF PAPER 12 14 June, 2012 REG FASB IASB Meeting Project Leases

More information

Reporting under the IFRS for SMEs. Illustrative consolidated financial statements and guidance notes

Reporting under the IFRS for SMEs. Illustrative consolidated financial statements and guidance notes Reporting under the IFRS for SMEs Illustrative consolidated financial statements and guidance notes Important Disclaimer: This document has been developed as an information resource. It is intended as

More information

ED 4 DISPOSAL OF NON-CURRENT ASSETS AND PRESENTATION OF DISCONTINUED OPERATIONS

ED 4 DISPOSAL OF NON-CURRENT ASSETS AND PRESENTATION OF DISCONTINUED OPERATIONS Exposure Draft ED 4 DISPOSAL OF NON-CURRENT ASSETS AND PRESENTATION OF DISCONTINUED OPERATIONS Comments to be received by 24 October 2003 ED 4 DISPOSAL OF NON-CURRENT ASSETS AND PRESENTATION OF DISCONTINUED

More information

accounting policies for the year ended 31 march 2009

accounting policies for the year ended 31 march 2009 The annual financial statements are prepared on the historical cost basis, unless otherwise indicated, in accordance with International Financial Reporting Standards (IFRS), the requirements of the Companies

More information

COMMISSION OF THE EUROPEAN COMMUNITIES COMMISSION STAFF WORKING DOCUMENT. Accompanying document to the

COMMISSION OF THE EUROPEAN COMMUNITIES COMMISSION STAFF WORKING DOCUMENT. Accompanying document to the COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 6.7.2007 SEC(2007) 968 Ce document annule et remplace le document SEC(2007) 968 envoyé le 6.7.2007 COMMISSION STAFF WORKING DOCUMENT Accompanying document

More information

Audit Program for Fixed Assets

Audit Program for Fixed Assets Form AP 35 Index Audit Program for Fixed Assets Legal Company Name Client: Balance Sheet Date: Instructions: The auditor should refer to the audit planning documentation to gain an understanding of the

More information

GUIDELINES FOR INCOME TAX TREATMENT OF MALAYSIAN FINANCIAL REPORTING STANDARDS (MFRS) 140: INVESTMENT PROPERTY

GUIDELINES FOR INCOME TAX TREATMENT OF MALAYSIAN FINANCIAL REPORTING STANDARDS (MFRS) 140: INVESTMENT PROPERTY LHDN.01/35/42/51/84 GUIDELINES FOR INCOME TAX TREATMENT OF MALAYSIAN FINANCIAL REPORTING STANDARDS (MFRS) 140: INVESTMENT PROPERTY 1. INTRODUCTION MFRS 140 requires all entities to determine the fair value

More information

Technical Factsheet 189 Intangible Fixed Assets

Technical Factsheet 189 Intangible Fixed Assets Technical Factsheet 189 Intangible Fixed Assets CONTENTS Page 1 Introduction 1 2 Legislative requirement 1 3 Accounting standards 2 4 Example 9 5 Checklist 10 6 Sources of information 12 This technical

More information

Investments and advances... 313,669

Investments and advances... 313,669 Consolidated Financial Statements of the Company The consolidated balance sheet, statement of income, and statement of equity of the Company are as follows. Please note the Company s consolidated financial

More information

CHAPTER 5 ACCOUNTING FOR MERCHANDISING OPERATIONS

CHAPTER 5 ACCOUNTING FOR MERCHANDISING OPERATIONS CHAPTER 5 ACCOUNTING FOR MERCHANDISING OPERATIONS LEARNING OBJECTIVES 1. IDENTIFY THE DIFFERENCES BETWEEN SERVICE AND MERCHANDISING COMPANIES. 2. EXPLAIN THE RECORDING OF PURCHASES UNDER A PERPETUAL INVENTORY

More information

Accounting for Health Care Organizations. Chapter 13

Accounting for Health Care Organizations. Chapter 13 Accounting for Health Care Organizations Chapter 13 Learning Objectives Account for unique hospital revenue sources Prepare journal entries for hospital transactions Prepare government hospital financial

More information

FINANCIAL STATEMENTS AS AT NOVEMBER 30, 2014

FINANCIAL STATEMENTS AS AT NOVEMBER 30, 2014 FINANCIAL STATEMENTS AS AT NOVEMBER 30, 2014 INDEPENDENT AUDITORS REPORT To the Shareholders of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) We have audited the accompanying financial statements

More information

Area Standard AIFRS impact Management action First time Adoption of Australian Equivalents to IFRS

Area Standard AIFRS impact Management action First time Adoption of Australian Equivalents to IFRS First time Adoption of Australian Equivalents to IFRS AASB 1 An entity s first Australian-equivalents-to-IFRS (AIFRS) financial report applies for reporting periods beginning on or after 1 January 2005

More information

MIA QUALIFYING EXAMINATION STUDY GUIDE ADVANCED FINANCIAL ACCOUNTING AND REPORTING NO CONTENT REFERENCE LEVEL OF KNOWLEDGE

MIA QUALIFYING EXAMINATION STUDY GUIDE ADVANCED FINANCIAL ACCOUNTING AND REPORTING NO CONTENT REFERENCE LEVEL OF KNOWLEDGE MI QULIFYING EXMINTION STUDY GUIDE DVNCED FINNCIL CCOUNTING ND REPORTING NO CONTENT REFERENCE LEVEL OF KNOWLEDGE 1.0 Financial accounting and reporting in Malaysia Discuss the development of financial

More information

Fair value reporting for investment properties under US GAAP. August 2010

Fair value reporting for investment properties under US GAAP. August 2010 Fair value reporting for investment properties under US GAAP August 2010 1 Table of contents Executive summary...1 History of the US investment property standard proposal...1 History of investment property

More information

KPMG Learning. Course Catalogue. November 2014 LEARNING KEY. is the

KPMG Learning. Course Catalogue. November 2014 LEARNING KEY. is the KPMG Learning Course Catalogue November 2014 LEARNING is the KEY About KPMG Learning How do you make sure your training program goes beyond simply providing continuing professional education (CPE) credits,

More information

PGE Polska Grupa Energetyczna S.A.

PGE Polska Grupa Energetyczna S.A. Separate Financial Statements prepared in accordance with International Financial Reporting Standards for the year ended 31 December 2012. TABLE OF CONTENTS SEPARATE STATEMENT OF COMPREHENSIVE INCOME...

More information

Summary of Significant Accounting Policies FOR THE FINANCIAL YEAR ENDED 31 MARCH 2014

Summary of Significant Accounting Policies FOR THE FINANCIAL YEAR ENDED 31 MARCH 2014 46 Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements. The Company and

More information

Diploma in International Financial Reporting Standards (IFRSs)

Diploma in International Financial Reporting Standards (IFRSs) Chartered Accountants Ireland Diploma in International Financial Reporting Standards (IFRSs) Objective This Diploma is designed to provide qualified Chartered Accountants with the opportunity to enhance

More information

Tax Implications of Significant PFRS Standards

Tax Implications of Significant PFRS Standards Tax Implications of Significant PFRS Standards Ma. Victoria C. Españo PICPA National Annual Convention Iloilo City, 2010 PFRS and Tax Laws Philippine Financial Reporting Standards (PFRS) set of rules to

More information

PKF International Limited administers a network of legally independent member firms which carry on separate businesses under the PKF Name.

PKF International Limited administers a network of legally independent member firms which carry on separate businesses under the PKF Name. IFRS Summary 2010 PKF International Limited administers a network of legally independent member firms which carry on separate businesses under the PKF Name. PKF International Limited is not responsible

More information

FINANCIAL STATEMENTS AS AT MAY 31, 2015

FINANCIAL STATEMENTS AS AT MAY 31, 2015 FINANCIAL STATEMENTS AS AT MAY 31, 2015 INDEPENDENT AUDITORS REPORT To the Shareholders of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) We have audited the accompanying financial statements

More information

STAFF PAPER. IASB Agenda ref. FASB Agenda ref 286. June 2014. REG FASB IASB Meeting. Purpose

STAFF PAPER. IASB Agenda ref. FASB Agenda ref 286. June 2014. REG FASB IASB Meeting. Purpose IASB Agenda ref 3A STAFF PAPER June 2014 REG FASB IASB Meeting Project Paper topic Leases Subleases CONTACT(S) Roberta Ravelli rravelli@ifrs.org +44 (0) 20 7246 6935 Danielle Zeyher dtzeyher@fasb.org +1

More information

Fortis Financial Statements 2006

Fortis Financial Statements 2006 Fortis Financial Statements 2006 Fortis Financial Statements 2006 Fortis Consolidated Financial Statements Report of the Board of Directors of Fortis SA/NV and Fortis N.V. Fortis SA/NV Financial Statements

More information

Consolidated financial statements of MTY Food Group Inc. November 30, 2015 and 2014

Consolidated financial statements of MTY Food Group Inc. November 30, 2015 and 2014 Consolidated financial statements of MTY Food Group Inc. Independent auditor s report...1 2 Consolidated statements of income... 3 Consolidated statements of comprehensive income... 4 Consolidated statements

More information

TURKISH BANK A.Ş. CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008

TURKISH BANK A.Ş. CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008 To the Board of Directors of Turkish Bank A.Ş. Đstanbul INDEPENDENT AUDITOR S REPORT We have audited the accompanying consolidated

More information

Defining Issues. FASB and IASB Take Divergent Paths on Key Aspects of Lease Accounting. March 2014, No. 14-17. Key Facts

Defining Issues. FASB and IASB Take Divergent Paths on Key Aspects of Lease Accounting. March 2014, No. 14-17. Key Facts Defining Issues March 2014, No. 14-17 FASB and IASB Take Divergent Paths on Key Aspects of Lease Accounting At their March 18-19 meeting to redeliberate the proposals in their 2013 exposure drafts (EDs)

More information

Türkiye İş Bankası A.Ş. Separate Financial Statements As at and for the Year Ended 31 December 2015

Türkiye İş Bankası A.Ş. Separate Financial Statements As at and for the Year Ended 31 December 2015 Türkiye İş Bankası A.Ş. Separate Financial Statements As at and for the Year Ended 2015 29 April 2016 This report includes 93 pages of separate financial statements together with their explanatory notes.

More information

RELEVANT TO ACCA QUALIFICATION PAPER F7 AND P2. Studying Paper F7 or P2? Performance objectives 10 and 11 are relevant to this exam

RELEVANT TO ACCA QUALIFICATION PAPER F7 AND P2. Studying Paper F7 or P2? Performance objectives 10 and 11 are relevant to this exam RELEVANT TO ACCA QUALIFICATION PAPER F7 AND P2 Studying Paper F7 or P2? Performance objectives 10 and 11 are relevant to this exam The IASB s Conceptual Framework for Financial Reporting I am from England,

More information

G8 Education Limited ABN: 95 123 828 553. Accounting Policies

G8 Education Limited ABN: 95 123 828 553. Accounting Policies G8 Education Limited ABN: 95 123 828 553 Accounting Policies Table of Contents Note 1: Summary of significant accounting policies... 3 (a) Basis of preparation... 3 (b) Principles of consolidation... 3

More information

Summary of Certain Differences between SFRS and US GAAP

Summary of Certain Differences between SFRS and US GAAP Summary of Certain Differences between and SUMMARY OF CERTAIN DIFFERENCES BETWEEN AND The combined financial statements and the pro forma consolidated financial information of our Group included in this

More information

Getting a Better Framework PROFIT OR LOSS VERSUS OCI Bulletin

Getting a Better Framework PROFIT OR LOSS VERSUS OCI Bulletin Getting a Better Framework PROFIT OR LOSS VERSUS OCI Bulletin JULY 2015 2015 European Financial Reporting Advisory Group. This Bulletin is issued by the European Financial Reporting Advisory Group (EFRAG).

More information

ACCOUNTING POLICIES. for the year ended 30 June 2014

ACCOUNTING POLICIES. for the year ended 30 June 2014 ACCOUNTING POLICIES REPORTING ENTITIES City Lodge Hotels Limited (the company) is a company domiciled in South Africa. The group financial statements of the company as at and comprise the company and its

More information

Sri Lanka Accounting Standard for Smaller Enterprises

Sri Lanka Accounting Standard for Smaller Enterprises Sri Lanka Accounting Standard for Smaller Enterprises The Sri Lanka Accounting Standards for Smaller Enterprises (SLASSE) was published in Year 2003. This needs to be revised to be in line with the revisions

More information

IFRS Practice Issues: Leases of land

IFRS Practice Issues: Leases of land IFRS Practice Issues: Leases of land December 2010 kpmg.com/ifrs Contents 1. Overview of major changes 1 2. Introduction and background 2 3. Why does lease classification matter? 3 3.1 Impacts on lessees

More information

IASB meeting. Business combinations (phase II) October 2004

IASB meeting. Business combinations (phase II) October 2004 October 2004 The International Accounting Standards Board met in Norwalk, Connecticut, USA on 18 and 19 October and met the US Financial Accounting Standards Board on 19 and 20 October. The following matters

More information

NEED TO KNOW. Leases A Project Update

NEED TO KNOW. Leases A Project Update NEED TO KNOW Leases A Project Update 2 LEASES - A PROJECT UPDATE TABLE OF CONTENTS Introduction 3 Existing guidance and the rationale for change 4 The IASB/FASB project to date 5 The main proposals 6 Definition

More information