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Accounting Update 10
Amendments to IFRSs that potentially impact 31 December 2012 year end financial statements
There are a number of amendments to IFRSs that become effective or are available for early adoption for financial statements for years ending 31 December 2012. This update provides an overview of these amendments. The following IFRS amendments are effective for 31 December 2012 year end financial statements:
1. I FRS 1 First-time Adoption of International Financial Reporting Standards (Amendments) 2. I FRS 7 Financial Instruments: Disclosures (Amendments - Transfers of Financial Assets) 3. IAS 12 Income Taxes (Amendments) The amendments to IFRS 10, IFRS 12 and IAS 27 regarding investment entities are effective for 1 January 2014 with early adoption permitted.
AMENDMENTS AVAILABLE FOR EARLY ADOPTION FOR 31 DECEMBER 2012 YEAR END FINANCIAL STATEMENTS
IFRSs IFRS 10, IFRS 12 and IAS 27 Amendments The amendments apply to a particular class of business that qualify as investment entities. The IASB uses the term investment entity to refer to an entity whose business purpose is to invest funds solely for returns from capital appreciation, investment income or both. An investment entity must also evaluate the performance of its investments on a fair value basis. Such entities could include private equity organisations, venture capital organisations, pension funds, sovereign wealth funds and other investment funds. Under IFRS 10 Consolidated Financial Statements, reporting entities were required to consolidate all investees that they control (i.e. all subsidiaries). The Investment Entities amendments provide an exception to the consolidation requirements in IFRS 10 and require investment entities to measure particular subsidiaries at fair value through profit or loss, rather than consolidate them. The amendments also set out disclosure requirements for investment entities. Effective date
e) When applicable, the transitional provisions that might have an effect on future periods f) For the current period and each prior period presented, to the extent practicable, the amount of the adjustment: (i) For each financial statement line item affected (ii) If IAS 33 Earnings per Share applies to the entity, for basic and diluted earnings per share g) The amount of the adjustment relating to periods before those presented, to the extent practicable h) If retrospective application required is impracticable for a particular prior period, or for periods before those presented, the circumstances that led to the existence of that condition and a description of how and from when the change in accounting policy has been applied.
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