CPA112 (Author: Laikwan)

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Description 1:1-11; 2:12-16; 3:17-23; 4: 24-29; 5:30-34; 6:35-41; 7:42-

52;8:53-60 Subject IAS/FRAS Page#
Financial stat presentation: 1. fin stat components 2. Fin statements Presentations of fin
overall considerations 3. Fin stat structure & content of particular stat IAS01 1.05
Add'l inf encouraged to (but no required): e.g. 1. review by mgt of entity's
performance 2.details about employees, environmental issues 3. Value- Financial statements
added stat components IAS01.09-10 1.06
Components of fin stat: 1.BS 2.PL 3.stat of chg in equity 4. Cashflow Financial statements
state 5. Note with a/c policies & explanatory notes components IAS01.08 1.06
Definitions & recognition of assets, liabilities, income & exp & add'l
disclosure, results in if entity follows the conceptual framework & all Financial statements IAS01.13/IFR
applicable IFRS in fair presentation components Ss 1.06
Fair presentation of fin stat accordance with IFRSs disclose this fact, if IAS01.14/IFR
not, s/n described compliant Financial statements Ss 1.06
Accounting policies adequate disclosure to enable users make allowance IAS01.08/IAS
for diff in fin results of diff entities due to diff a/c policies Financial statements B 1.07
Accounting policies selection: int'l fin rept std (IFRSs) 2. Interpretations
of int'l fin rept interpretations committee (IFRIC) Financial statements IAS08.07 1.07
Departure fin state info: 1. Mgt state believes departure fin state present
fairly 2 .details of departure 3. Reason IFRS treatment is misled aging 4. IAS01.18/IFR
Fin impact of the departure on PL, financial position & cashflows Financial statements Ss 1.07
Disclosure not overcome non-compliance with IFRS, not accept to adopt

a/c policy that is not permitted by an IFRS & disclose details in note to Financial statement
a/c. Only departure fm IFRS permitted when result of using IFRS would not permit departure IAS01.16/IFR
in unfair presentation fm a/c std Ss/AASB101 1.07
Fair presentation permitted departure provided: 1. Regulatory framework IAS01.17/IFR
permits 2. Disclosed detailed info about departure Financial statements Ss 1.07
IFRIC/std not specific, ensure fin statement 1. Relevant 2. Reliable Financial statements IFRIC 1.07
Financial statements-
Reliable: 1. Represent faithfully 2. Reflect economic substance not merely no specific in
legal form 3.neutral 4.prudent 5.complete all material respects std/IFRIC IAS08.10 1.07-08
Guidance on selection a/c policies: 1. Similar and related issues 2. Financial statements-
Definition recognition criteria for AS, LI, IC & EX in IASB 3. Recent std no specific in
setting, a/c literature & practice and consistent . std/IFRIC IAS08.11-12 1.08
Accounting policies info concerning: 1. Measurement basis used in fin
state 2.details of a/c policies necessary to understand fin state Financial statements IAS01.108 1.08
Accounting policies requires summary 1. Fin rept is GPFR or special AASB101;AU
purpose fin rept 2.extent of compliance with AASB Financial statements S105.1 1.08
Accounting policies chg due to new std or IFRIC interpretation, must
apply transitional prov in std or interpretations Transitional prov IAS08.19a 1.09
Accounting policies chg no transitional provision in std, make a voluntary
chg in a/c policy, a/c policy chg must be retrospectively Transitional prov IAS08.19b 1.09
Accounting policies chg only: 1. required by a/c std or interpretation 2.
Chg result more relevant or reliable info about fin position, fin
performance or cashflow Financial statements IAS08.13 1.09
Accounting policies chg: not regards: 1. A/c policy differ in substance to

previous events/conditions 2. New a/c policy in previous rept period did
not exist or immaterial Financial statements IAS08.16 1.09
Accounting policy chg impracticable to determine cumulative effect in
chg, entity apply new a/c policy on prospective basis from earliest date Impracticable on a/c
that it is practical to do so. policy chg IAS08.25 1.09
Accounting policy chg. o/b of asset & liabilities must be adj for earliest Retrospective
period where retrospective restatement is practicable opening bal IAS08.24 1.09
Accounting policy chg: 1.o/b equity chg must adjusted earliest prior
period in fin state 2. Comparative amt in fin statements restated new
policy permanently applied by entity Financial statements IAS08.22 1.09
Impracticable on
Accounting policy chg: impracticable to determine either period-specific determine period
effects or cumulative effect of the chg. effect IAS08.23 1.09
Income tax - difference between income statement Income tax AASB1020 -
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Accounting policies no specific requirement, mgt dep policies ensures

info 1.relevant 2. Reliable a. represent faithfully the fin position, fin
performance & cashflows b. reflect economic substance & not merely
legal form c. neutral d.prudents e.complete in all material respects Financial statements IAS08.10 1.07-08
Reliable: 1. Represent faithfully 2. Reflect economic substance of events
and not merely the legal form 3.neutral 4.prudent 5. Complete in material
respects Financial statements IAS08.10 1.07-08
Accounting policy chg disclose: 1. Title of std or interpretation &
description of transitional prov 2. Nature of chg 3. Amt of adj of each fin
statement item 4. Adj relating to prior periods Financial statements IAS08.28 1.10
Accounting policy chg: prepare fin state not comply with new std or
interpretation when not effective until after the end of rept period, entity
should disclose situation & prov info the potential impact of new std New standard IAS08.30 1.10
Accounting policy voluntary chg disclose: 1.nature of chg 2.reasons 3.amt Voluntary change
of adj 4.adj relating to prior periods disclosure IAS08.29 1.10
Financial statements prepared on going concern basis unless intend to
liquidate Going concern IAS01.23 1.10-11
Financial statement may offset only: 1. Legal right of offset 2.entity
intends to settle on a net basis or realise the fin asset & settle the financial
liability simultaneously Offsetting IAS32.42 1.11
Financial statement prepare on consistent chg only: 1.significant chg
occurred that a/c policy is necessary to show more appropriate
presentation or classification 2. Chg is required by IFRS or IFRIC
interpretation Consistency IAS01.27 1.11
Financial statements prepared using accrual accounting. Accrual accounting IAS01.25 1.11
Financial statements require each material class/nature or function Materiality &
separately presented. IAS not apply to immaterial items aggregation IAS01.29-31 1.11
Rept asset net of valuation allowances (e.g. debtors net of allowance for
doubtful debts) is not offsetting Offsetting IAS01.33 1.11
Offsetting permitting: 1. Legal right 2. Settle on net basis Offsetting IAS32.42 1.11
Accounting & disclosure for error: e.g. mathematical mistakes,

misapplication of a/c policies, fraud to p&l. Fin state not comply with a/c
std if contain material errors or immaterial errors intentionally to achieve
particular presentation of PL Errors IAS08.41 1.12
Accounting policies chg: 1.Income & exp adj to recognised in current or
future period Estimation IAS08.36 1.12
Accounting policies chg: 2.relevant, adj to assets, liabilities & equity
items chg affects estimate Estimation IAS08.37 1.12
Accounting policies chg: 3.disclosure of nature & amt of revision in a/c
estimated affect the current & effect on future Estimation IAS08.39 1.12
Corresponding figure fm previous year for all item should rept each year
(.36), reclassified should reclassified previous period (.38), disclose
reasons why "nature of adj would have been made if amt had reclassified Comparative
(.39) information IAS01.36-39 1.12
Financial state retrospective corrected by: 1. restating comparative amt 2. Errors retrospective
Adj o/b of assets, liabilities & equity in earliest prior rept period correction IAS08.42 1.12
Corrected rept incl: 1. Nature of error 2 .amt of correction for affected
item 3.amt of correction to restate opening bal 4. Retrospective Errors exempted
restatement is impracticable, details why and how error corrected retrospective restate IAS08.49 1.13
Impracticable to determine cumulative effect of an error on prior periods, Errors exempted

restate the comparative info on prospective basis fm earliest practical date retrospective restate IAS08.45&.47 1.13
Impracticable to determine period-specific effect or cumulative effect of Errors exempted
error retrospective restate IAS08.43 1.13
Impracticable to determine period-specific effect, o/b asset, liability &
equity bal adj in earliest period where retrospective restatement is Errors exempted
practicable retrospective restate IAS08.44 1.13
Disclosure of a/c policies: 1. Measurement basis 2. A/c policies 3.
Material uncertainties exist if other than a going concern bases Financial statements IAS01 1.14
Accounting policy chg must retrospectively: 1. Adj o/b of equity affected
by chg for earliest period incl in fin statement 2. Restate comparative amt
in fin statement if new policy applied Financial statements IAS08 1.14
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Extraordinary items prohibits presentation either in income statement or in

the notes. Extraordinary item IAS01.85 1.15
All-inclusive or comprehensive income = all items of IC & EX for a
period fm all sources must be a/c in determining the net p&l for the
period. Reflect "net-equity chg or capital-maint' view of profit. Net p&l
must include regardless they out of ordinary operations or fm events Determination of
outside operations P&L IAS01 1.16
Change in equity fm non-owner sources not included in determination of
net PL must be separately disclosed in statement chg in equity Disclosure IAS01.96 1.16
IFRS/IFRIC permits: adj to opening retained earning initial adoption of
a/c std or IFRIC 2. Correction of error & chg 3. +/-in asset revaluation
reserve made accordance IAS16 4. Translation diff fm foreign operation All-inclusive
accordance with IAS21 approach exception IAS01.78 1.16
Income & exp included in net PL can't disclosed as extraordinary items Disclosure IAS01.85 1.16
Disclosure either in note or state 1. Capital transaction with owners &
distribution to them 2. Amt of opening & closing retained earnings &
movement s 3. Reconciliation of opening & closing of each class of Statement of chg in
equity capital & reserve separately disclosing equity or in notes IAS01.97 1.17
Financial stateless disclosed on face: 1. revenue 2. Finance costs 3. Share

of PL of associates & joint ventures for using the equity method 4. Tax
expenses 5. A post-tax gains or loss discontinued operative b post-tax
gain or loss recognised on measurement to fair value less costs to sell or
on the disposal or disposal groups constituting discontinued operation 6.
P&L 7. minority int Disclosure IAS01.81 1.17
Financial statement equity: 1. Period PL 2. Income & exp required by

IFRS/IFRIC 3. Total PL + income & exp recognised in equity allocated
between minority int & parent entity equity holder 4. Adj to component of Statement of chg in
equity as result of chg in a/c policies or corrections of error with IAS 8 equity IAS01.96,82 1.17
Minority interest: income statement disclosure of PL allocated & allocated Disclosure on face of
to parent's shareholders PL IAS01.82 1.17
Expenses classified by nature or by function: classify expenses by
function disclose info about nature of exp incl dept & amortization exp &
employee benefits expenses Disclosure IAS01.88 1.18
Revenues: 1. Sales of goods 2. Revenue fm rendering of services, int, Disclosure PL or
dividend notes IAS01.35 1.18
Material if it influence economic decision taken by users (.11). Write- Material Disclosure-
down to recoverable amount, restructuring, litigation settlements separate IAS01.86 1.19
Balance sheet 1. Traditional current/non-current categories 2. Presented in
liquidity basis. Liquidity basis only used prov reliable & relevant info Presentation of assets
than curr/non-cur basis & liabilities IAS01.51 1.20
Balance sheet-entities to disclose separately amt due to be settled or
recovered in <12M and >12M if an item combines such amt due or Presentation of assets
receivable & liabilities ISA01.52 1.20
Balance sheet-fin institution list asset & liability in liquidity as solvency Presentation of assets
of critical and no service within an operating cycle & liabilities IAS01.54 1.20
Non-current
Agreement that lender not demand repayment for more than 12M liabilities IAS01.66 1.21
Current assets: operating cycle of entity is between acquisition of assets
for processing & realization in cash or cash equivalent, no identifiable, Current
assumed 12M asset/liabilities IAS01.59 1.21
Current assets: realized in for intended for sale or consumption in normal
operating cycle 2. Trading purposes 3. Expected to be realized in 12M or Current
cash or equivalent asset/liabilities IAS01.57 1.21
Current
Current liabilities if breach loan conditions cause become due on demand asset/liabilities IAS01.65 1.21
Current liabilities include portion of long-term, interest-bearing liabilities
due for repayment within 12M as current liability even original loan or Current
agreement >12M asset/liabilities IAS01.63 1.21
Current liabilities: 1. Settled in normal operating cycle 2. Trading Current
purposes 3. Settled in 12M 4. No unconditional right asset/liabilities IAS01.60 1.21
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Current
Non-current assets-including tangible, intangible & long-term fin assets. asset/liabilities IAS01.58 1.21
Re-finance an obligation for after 12M , classified as not-current, if no re- Non-current
finance discretion, classified as current liabilities IAS01.64 1.21
Disclosure on face of
Add'l line items, headings & sub-ttl shall be presented on face of b/s b/s IAS01.69 1.22
Add'l disclosures & sub classification not only on requirement of IFRSs,
also on nature, function & size of amt involved Disclosure IAS01.75 1.22
Add'l sub classification & disclosures e.g. inventories only disclosed in
aggregate (.68) Disclosure IAS01.74 1.22
Balance sheet disclosures cash & cash equivalent, inventories, prov & Disclosure on face of
capital/reserves b/s IAS01.68-69 1.22
Current/Non-current classification is used deferred tax assets and Disclosure on face of
liabilities as non-curr b/s IAS01.70 1.22
Add'l disclosure for equity items 1. Shares issued, rights attached to
shares & details of reserves. E.g. authorised capital not for AU co. 2.
Inventory Disclosure IAS01.76-77 1.23
Add'l disclosure in note to fin statement of info relating to dividends not
recognised Disclosure IAS01.125 1.23
Cash flow together with other info in fin rept, Cash flow statement IAS07.04 1.24
Cash flows presented on net basis 1. Cash rec & pay on behalf of
customers e.g. acceptance & repayment of demand deposits by banks 2.
Turnover is quick amt are large & maturities are short. E.g. credit card
customers principal amt Cash flow statement IAS07.22&24 1.25
Cash inflows & outflows for rept period concerned. Cash flow statement IAS07.18-21 1.25
Cash flow 1. operating (receipt fm AR; pay't to supplier/employees/int
tax) 2. Investing (int/dividends rec'd; sales proceed; pay't for plant; cash Cash flow statement-
in investing) 3. Financial activities (Share proceeds; dividend paid) formula IAS07 1.29-30
Acquisitions &
Cash flow effect of acquisition not offset by cash flow effect of disposal disposal IAS07.39-42 1.32
Acquisitions &
Cash flow separate disclosure of info acquisitions & disposal of entities disposal IAS07.40 1.32
Parent entity prepare consolidated fin statement include cash flow
statement reported net of cash flows among entity comprising the group &
foreign currency translation is required and consolidated cash flow Consolidated fin
prepared statements IAS07.25-28 1.32
Business segments: 1. Segment revenues fm external customers 2.
Carrying amt of segment assets 3. Acquisition of segment assets Segment Reporting IAS14 1.34
Disclosure of info for segment rept and geographical segments Segment Reporting IAS14 1.34
Geographical segments, info disclosed 1. Segment revenue fm external

customers 2. Carrying amt of segment assets by geographical location of
asset 3. Acquisition of segment assets by geographical location of assets Segment Reporting IAS14 1.34
Segment includes: 1. Revenues 2. Result 3. Assets 4. Liabilities 5.
Acquisition of segment assets during rept period 6. Dept & amortization
exp in segment result Segment Reporting IAS14 1.34
Primary Segment information: segment revenue; result; assets; liabilities;

acquisition of assets and depr & amortisation exp in segment result Segment Reporting IAS14 1.35
Secondary segment info relates to business: 1.revenues from external Segment Reporting -
customers 2.total carrying amt of assets 3.acquisition of segment Business IAS14 1.35
Secondary segment info relates to geographical: 1.revenues from external
customers 2.total carrying amount of segment asset 3.acquisition of Segment Reporting -
segment asset Geographical IAS14 1.35
Difference revolve around AASB124 in defining related parties & Related party IAS24
containing more extensive disclosure requirement disclosure &AASB 1.36
Financial instruments: 1. Classification by issuers as liabilities or equity &
related income & exp 2. Separation of compound fin instrument into
liability & equity 3. Classification of int, dividend, loss & gains relating to
fin instruments 4. set-off of fin assets & fin liabilities Financial instruments IAS32 1.36
Related party disclosure: 1. Nature of relationship 2. Diff type of
transaction involved 3. Element (amt, amt o/s, terms & conditions) of type Related party
of transaction disclosure IAS24.17-18 1.36
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Related party maybe disclosed in aggregate except when separate Related party
disclosure is necessary for understanding of effect disclosure IAS24.22 1.36
Disclosure include: 1. Carrying amt 2. Detailed info at fair value 3.
Details of reclassified or derecognized 4. Collateral held or pledged in
relation to fin assets 5. Info relating items of income, exp, gains or losses
6. Fin for hedges 7. Fair value info 8. nature & extent of risk Financial instruments IFRS07 1.37
Financial instruments require: 1. Fin instrument b/s disclosure 2.
Disclosure in PL & statement of chg in equity 3. Other fin instrument
disclosure relating to a/c policies, hedge a/c & fair values Financial instruments IFRS07 1.37
Tax effect method bases on 'matching approach' Income Tax IAS12 2.03
Tax effect: 1. Matching income tax exp 2. Deferred DR & CR as AS & LI Income Tax IAS12 2.03
Tax effect: B/S LI method focus temporary diff - diff between tax base of
AS/LI and carrying amt in B/S 1. Deferred tax AS/LI 2. Sum of chg. in
BS for the period Income Tax IAS12 2.03
Tax effect: 1. Entity recognise deferred tax LI & AS for temporary diff,
set std for a. deferred tax AS & LI b. deferred tax AS fm unused tax
losses/CR c. income tax in fin statement d. disclosure income taxes info Income Tax IAS12 2.04
Tax-effect a/c: 1. Recognises assets when recovery carrying amt 2.
Recognises a LI when set of carrying amt 3. Deferred tax LI when
recovery or set of the carrying amt of AS or LI have tax consequences
cause future tax pay't to be larger than pay't 4. deferred tax asset when
recovery or set of carrying amt of AS or LI cause future tax pay't small Tax-effect
than pay't accounting IAS12 2.06
Deferred tax liability - Definition: 1. Sacrifice of economic benefits 2.
Present obligation 3. Past events Recognition criteria: 1. Probable 2. Deferred tax liability:
Reliable definition & criteria IAS12 2.07
Deferred tax asset s/b recognised set of carrying amt of the liability will
cause future tax pay't to small if transaction no tax consequences Deferred tax IAS12.10 2.08
Current tax - amt of income taxes payable for the period Income tax IAS12.05 2.10
Current tax exp (income) Income tax IAS12 2.10
Deferred tax = deferred tax assets - deferred tax liabilities (change during
the period) Income tax - BS IAS12 2.10
Deferred tax expenses (income) = income or exp in the income statement Income tax - PL IAS12 2.10
Tax expenses = current tax & deferred tax in P&L Income tax - PL IAS12 2.10
Deferred tax assets = deductible temporary diff x tax rate Income tax IAS12 2.13
Deferred tax liabilities = taxable temporary diff x tax rate Income tax IAS12 2.13
Temporary diff = carrying amt of assets or liabilities - tax bases of assets
or liabilities Income tax IAS12 2.13
Carrying amt < tax bases Assets = DTA Liability = DTL Income tax IAS12 2.15
Carrying amt > tax bases Assets = DTL Liability = DTA Income tax IAS12 2.15
Tax base for a liability (not revenue received in advance)

= carrying amt - future deductible amts + future assessable amt Income tax IAS12.08 2.17
Tax base for a liability that is revenue received in advance
= carrying amt - future non-assessable amount of revenue Income tax - liability IAS12.08 2.17
Tax base for an asset = carrying amt + future deductible amt - future
assessable amt Income tax IAS12 2.17
Tax base of a asset: tax base = carrying amt + future deductible amt -
future assessable amt Income tax - assets IAS12.10 2.20
Deferred tax asset when recovery or settlement of carrying amt of an asset

or liability will have tax consequences cause future tax pay't small than
would have been in absence of tax consequences. Definition of assets is
satisfied in situations, deferred tax asset is recognised if recognition
criteria for assets are satisfied Deferred tax asset IAS12 2.25
Deferred tax liability when recovery or set of carrying amt of an asset or

liability will have tax consequences cause future tax pay't to be larger than
they would have been in the absence of tax consequences. Definition of
liabilities is satisfied and a deferred tax liability is recognised if
recognition criteria for liabilities are satisfied Deferred tax liability IAS12 2.25
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Deferred tax: certain limited exception, recognised a deferred tax liability

(asset) whenever recovery or set of the carrying amt of an asset or liability
would make future tax pay't larger (smaller) than they would be is such
recovery or settlement have no tax consequences Deferred tax IAS12.10 2.25
Temporary diff: tax temporary diff is asso with future tax pay't larger than
they could be, deferred tax liability arises 2. Deductible temporary diff is
asso with future tax pay't than smaller, deferred tax asset arises Deferred tax IAS12 2.25
Deferred tax LI recovery or set of carrying amt of AS/LI cause future tax Tax-effect
pay't larger than tax consequences accounting IAS12 2.30
Deferred tax AS recovery or set of carrying amt of AS/LI cause future tax Tax-effect
pay't smaller than tax consequences accounting IAS12 2.30
Disclosure of info: 1. Deferred tax AS & LI-tax AS & LI separately fm Tax-effect
current tax AS/LI 2. Info about the components of tax exp accounting IAS12 2.31
Tax-effect
Tax pay't larger (smaller) than they would be recovery or settlement accounting IAS12 2.30
Income tax: diff between the carrying amt of a revalued asset and its tax
bases is a taxable or deductible temporary diff that gives rise to a deferred
tax liability or tax asset Income tax IAS12 3.05
Goodwill and negative goodwill: IFRS not permitted goodwill
amortisation. Negative goodwill IAS12.21&32 3.13
Deferred tax AS & LI exemption: initial recognition AS/LI other than
business combination , the tax base of AS/LI differ fm carrying amt 2. Temporary diff on
Initial recognition, transaction affect neither a/c porfit nor taxable profit initial AS/LI IAS12.15&24 3.13
Temporary diff arising: 1.AS at fair valueor revalured amt & tax base no
adj 2. Goodwill or negative goodwill 3. Tax base of AS/LI on initial
recognition, other than business combination, differs fm initial carry amt Income tax IAS12.22&59 3.14
Revaluation deferred tax: 1.current or deferred tax recognised as IC or EX
except tax related to items that CR or chg to equity 2. When tax relate to
item are CR or chg directly to equity, current and deferred tax is chg or
CR to equity Deferred tax IAS12.61 3.15
Deferred tax assets: 1.deductible temporary diff 2.unused tax losses &
unused tax credits Deferred tax assets IAS12.24 3.17
Deferred tax assets recognised when: 1.there will be taxable profit for
future utilize future deductible temporary diff 2. Taxable profit by using
tax planning opportunities Deferred tax asset IAS12.28-31 3.19
Tax losses recumbent: 1. Taxable temporary diff 2.other than taxable
temporary diff (1&2 reduction in deferred tax asset) 3.recognition Recumbent of tax
criterion not satisfied (recognised as current tax income) losses 3.25 T3.5
Tax losses 1.recoup for no deferred tax asset was previously recognised
2.recoup to deferred tax asset was previously recognised Deferred tax asset IAS12 3.26
Tax losses apply: 1. entities do not have losses: will have sufficient tax Deductible
profit in the future 2. Entities have losses: applies to deferred tax AS temporary diff IAS12 3.29
Tax loss entities would normally difficulty than non-loss entities in
establishing that the probability recognition criterion for AS has been
satisfied Deferred tax asset IAS12 3.29
Deferred tax AS/LI may chg: 1. in tax rate or tax laws 2. Chg in expected
manner of recovery of an asset Deferred tax IAS12.60 3.33
Temporary diff: 1. Temporary diff 2.non-temp diff e.g. fines & penalties Temporary
3. Excluded temp diff differences IAS12.24 3.36
Temporary & excluded temporary diff: 1. Dividend 2. Tax-exempt
income e.g. capital gains & int rec'd fm domestic fin institution or gov't 3.
Tax deduction in excess cost e.g. R&D 4. Tax deduction in excess of cost Temporary
for salaries & wages as training, apprentices differences IAS12 3.37
Disclosure: Tax losses/CR 1. Deferred tax AS/LI recognised in BS for
each period 2. Amt deferred tax IC/EX recognised in income statement, if
not fm chg in the amt recognised in BS Deferred tax assets IAS12.81 3.38
Disclosure: deferred tax AS and nature when 1. Utilisation the deferred
tax AS is future tax profit in excess of profit fm reversal of existing tax
temp diff 2. Entity suffered loss in current period in tax related deferred
tax AS Deferred tax assets IAS12.82 3.39
Functional currency: the currency of the primary economic environment
in which the entity operates Functional currency IAS21.08 4.03
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Accounting for FC transactions 1. Translation to record in FC at

transaction date 2. Adj monetary items in ex subsequent to transaction
date 3. Recording set of those monetary items 4. Adj carrying amt of non- Foreign currency
monetary in FC transaction IAS21.08 4.07
Foreign currency transaction initial AS, LI, IC & EX measured using spot
ex Foreign currency IAS21.21-22 4.07
Foreign currency transaction subsequent monetary items at closing rate,

non-monetary at historical cost 3. Non-monetary items at fair value in FC
at current rate Foreign currency IAS21.23 4.07
Functional currency: two entities share the same economic environment.
Guidance 09. Sales price & service Foreign currency IAS21.9-14 4.08
Foreign currency receipt using dealer's "buying rate" Foreign currency IAS27 4.09
Foreign currency pay't using dealer's "selling rate" Foreign currency IAS27 4.09
Fair value hedges "hedge of exposure to chg in fair value of recognised

AS/LI or unrecognised firm commitment or identified portion of AS/LI or
firm commitment, that is attributable to a particular risk and affect P&L Hedging IAS39.86 4.17
Cashflow hedges in particular risk asso with AS/LI or future int pay't on
variable rate debt), or highly probably forecast transaction affect p&l.
Risk deal with FC Pur/sales 2. Forecasted transaction anticipated pur or
sales Hedging IAS39.86 4.17
Net investment foreign operation: hedge against upward ex diff stemming
from net inv in foreign operation. EX fluctuate, gain/loss offset on
liability Hedging IAS39.86 4.17
Hedged as AS, LI, firm commitment, highly probably forecast transaction
or net inv in foreign operation (a) exposes the entity to risk of chg in fir
value or future cashflows b. is designated as being hedged Hedging IAS39.09 4.18
Hedging instrument as: designated derivative, or (for a hedge of the risk
of chg in foreign currency ex only) a designated non-derivative fin AS or
non-derivative fin LI, whose fair value or cashflows are expected to offset
chg in the fair value or cashflows of a designated hedged item Hedging instrument IAS39.09 4.18
Fair value hedges on AR & AP. Recognised in P&L: "a binding
agreement for the ex of specified quantity of resources a specified price
on specified future date or dates" = firm commitment Hedging IAS39.89 4.20
Cashflow hedges on 1. forecasted AP & AR recognised directly in equity
in connection with hedge are recognised in p&l in the same period in
which the financial AS/LI affect P&L 2. Sales of goods or services
anticipated commitment Hedging IAS39.97 4.21
Disclosure: 1. In net p&l 2. Classified as equity (and reconciliation of
opening & closing ex diff included in equity) Exchange diff IAS21.52 4.28
Translation method: express the underlying amt, as measured in the
functinal currency, in a diff currency Foreign operation IAS21 BC 5.04
Translation method should " presenting the fin state in another currency
s/n chg the way in which the underlying items are measured Foreign operation IAS21.BC 5.05
Post-acquisition chg to equity in foreign entity: 1. IC & Ex at diff closing

rate 2. Other items (revaluation +/-) contributions of capital & distribution
of capital Foreign entity IAS21 5.10
Foreign operation considered: 1. Intragroup monetary items 2. Diff report

dates 3. Goodwill & adj fair value adj 4.disposal of foreign operationForeign operation IAS21.45-48 5.14
Current rate method: fixed CR translating the statement of overseas Foreign currency fin
operation, when fluctuate, choice is no longer obvious statement IAS21 5.16
Current non-current (CNC)-CR for current AS & LI; Non-current at Foreign currency fin
historic rate, no gains & loss recognised on fin statement statement IAS21 5.16
IAS21/ Taylor,
Monetary/non-monetary (MNM) - translation gains & losses to a reserve Foreign currency fin Tress &
a/c statement Johnson 5.16
IAS21/ Taylor,
Temporal methods - recognising ex gain & losses on monetary item in Foreign currency fin Tress &
p&l statement Johnson 5.16
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Current rate method-post-acquisition movement in equity other than

retained profits translated at ex rate current at the date of movements,
except movement represents translated between item within equity or a
return of equity, the movement is translated at ex rate current at the date
that the amt transferred or return was first include in equity Foreign currency AASB1012.10 R5.01
Business combinations: 1. Acquire 2. Gains control through pur of shares
3. Formation a new entity to acquire 4. ASX combined (stapled) together
5. Dual ASX listed on diff stock ex are combined and managed via Business
contractual arrangement combinations IFRS03 6.06
Purchase method of business combination: 1. Identifying an acquirer 2.

Measuring the cost of business combination 3. Allocating at the
acquisition date, the cost of business combination to assets acquired and Business
liabilities & contingent liabilities assumed combinations IFRS03.16 6.07
Combining entity identify acquirer: 1. Identify acquirer 2. Control "the

power to govern fin & operating policies to obtain benefit fm activities" 3.
Quantitative test "more than 50% voting rights" 4.control exist via statute
or other agreement or ability to appoint the majority of direct or votes at Acquirer-business
board meeting combinations IFRS03.18,19 6.08
Combining entity identify: 1. Significantly greater fair value than another

combining entity is acquirer 2. Ordinary voting shares are ex for cash,
entity giving up the cash or cash equivalents is probably the acquirer 3.
mgt can dominate mgt selection for combined entity, mgt can dominate Acquirer-business
selection process is probably the acquirer combinations IFRS03.17-19 6.08
Combining entity quantitative test: presumed to have obtained control of
another entity 'when it acquires more than 1/2 of other entity's voting
rights, unless it can be demonstrated that such ownership does not Acquirer-business
constitute control' combinations IFRS03.19 6.08
Control is defined as ' the power to govern the fin & operating policies of Acquirer-business
an entity or business so as to obtain benefits fm its activities' combinations IFRS03.19 6.08
Combination cost measure cost as: 1.fair value at date of ex of assets

given, liabilities incurred or assumed, & equity instruments issued by
acquirer, in ex for control of the acquire 2.costs directly attributable to Acquirer-business
business combination combinations IFRS03.24 6.09
Combination cost can't individually identified & recorded for not meet
recognition criteria in .37, it is an unidentifiable asset regarded as part of Acquirer-Identifiable
goodwill asset or liability IFRS03.37a&b 6.11
Combination cost shall at acquisition date allocate cost of business
combination by recognising the acquirer's identifiable AS, I & contingent
liabilities at fair values at that date, Only exception is non-current assets
is classified as held for sales in accordance Non-current Assets Held for Acquirer-business
Sales & Discontinued Operations, it is measure at fairs value less costs to combinations for
sell Non-current assets IFRS03.36 6.11
Combination cost shall identifiable asset or liability individually identified

& separately recognised in B/S: 1. Probable any asso future economic
benefits will flow to acquirer, or an outflow of resources embodying
economic benefits will be required to settle the liability 2.reliable measure Acquirer-Identifiable
is available of fair value asset or liability IFRS03.37a&b 6.11
Combination cost: identifiable assets incl inventory, receivable &
property, plant & equip. Identifiable liabilities incl A/P, loans & tax Acquirer-Identifiable
payable asset or liability IFRS03.37a&b 6.11
Combination concerning recognition of liabilities: 1. Future losses & Acquirer's

costs resulting fm the combination 2. Restructuring costs identifiable liabilities IFRS03 6.12
Combination IFRS3 prohibits recognition of liabilities involve 'future
losses or other costs expected to be incurred as a result of the business
combination'. Such items do not represent liabilities of the acquire at Acquirer's
acquisition date as no past transaction rise to present obligation identifiable liabilities IFRS03.41 6.12
Goodwill: future economic benefits arising fm assets that are not capable Acquirer-Identifiable
of being individually identified and separately recognised asset or liability IFRS03 APP A 6.12
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Restructuring cost for prov only: 1. Detailed formal plan for restructuring
2. Valid expectation that it will be carried out because of formal
announcements or implementation has begun (no future losses or other Acquirer's
costs may prov) identifiable liabilities IAS37.72 6.12
Restructuring cost is conditional upon the entity being acquired is not
restructuring liability which can recognised as allocating the cost of Acquirer's
combination identifiable liabilities IFRS03.41,43 6.12
Contractual payment (e.g. employees) in business combination occurring

would be contingent liabilities and not recognised until becomes probable Acquirer's IAS37.30/IFR
a pay't will be required. Contractual pay't recognised as a liability. identifiable liabilities S3 6.13
Intangible assets (non-monetary asset w/o physical substance can be
separately identified fm goodwill) regards an assets separately Acquirer's intangible
identifiable: 1. reparability criterion 2.contractual-legal criterion. assets IAS38 6.13
Contingent liability recognised as business combination if fair value can
reliably measured. Contingent liability not recognised prior to business
combination. Fair value reflect mkt expectations of mat settle the Acquirer's contingent
obligation liabilities IAS37/IFRS3 6.14
Intangible asset has a finite useful life and systematically amortized over
useful life. Impairment test indefinite live must carried out annually by Acquirer's intangible
comparing the carrying amt with recoverable amt.. assets IAS38.88 97 6.14
Goodwill is residual cost of business combination & reflect amt acquirer
pay for 'future economic benefit fm assets that are not capable of being
individually identified & separately recognised Acquirer's goodwill IFRS03 6.15
Goodwill & impairment of asset: 1. Ttl goodwill allocated to individual

cash generating 2. Cash generating is "smallest identifiable group of asset
that generate cash inflows that largely independent of cash inflow fm
other assets or groups of assets 3. cash general unit is tested for
impairment by comparing carrying amt of CGU with recoverable amt 4.
carrying amt of CGU exceed recoverable amt, impairment loss should be
recognised 5. impairment loss to reduce allocated goodwill then pro-rated
to each asset in CGU 6.impairment loss s/b recognised immediate in p&l
7.impairment loss can't reversed in a subsequent rept period Acquirer's goodwill IFRS03.54 6.16
CGU 'smallest identifiable group of AS that generates cash inflows that
are largely independent of the cash inflows from other assets or groups of Cash generating
AS" units-goodwill IAS36.06 6.16
Negative goodwill occur: 1. Error 2. Measurement not fair value 3. Seller
is weaker bargaining position than the acquirer due to cash flow Acquisitions negative
difficulties goodwill IFRS03.56 6.17
Goodwill or negative goodwill accounted for in the consolidated fin Acquisitions
statement goodwill IFRS03.06 6.18
Dividends pre-acquisition reduction carrying amt of inv. Post-acquisition Acquisitions
dividend treated as revenue by the investor dividends IAS27 6.20
Disclosure info: 1. Nature & fin effect 2. P&l 3. Chg in carrying amt of Acquisitions
goodwill disclosure IFRS03.66-74 6.21
Disclosure detail: 1. name & description of combining entities 2.

Acquisition date 3. % of voting shares 4. Cost of business combination &
description 5. Amt recognised for acquiree's AS,LI & contingent LI 6.
Description of recognition of goodwill incl intangible AS not recognised
and why intangible's fair value could not be measured 7. nature & amount Acquisitions
of negative goodwill recognised in p&l disclosure IFRS03.67 6.21
Income tax for
Business combinations rise to tax AS & LI must recognised as AS& LI at business
acquisition date combinations IAS12.66 6.21
Income tax for
Business combinations rev asset to fair value with no equivalent adj for business
tax purposes will lead to deferred tax liability combinations IAS12.19 6.21
Income tax for
Business combinations: recognition of tax AS & LI on acquisition will business
impact on goodwill or negative goodwill recognised combinations IAS12.66 6.21
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Business combinations: IAS12 prohibits recognition of deferred tax LI Income tax for
resulting fm tax temporary diff between carrying amt of goodwill and tax business
base combinations IAS12.15&21 6.21
Business combinations: acquirer recognise deferred tax AS it previously Income tax for
could not recognise. This from part of a/c for business combination or business
impact on amt of goodwill or negative goodwill combinations IAS12.67 6.21
Business combinations : acquirer did not recognise as identifiable asset at

acquisition date the benefits of tax losses carried forward, acquirer Income tax for
should: 1. Adj carrying amt of goodwill to recorded tax AS 2. Recognise business
exp for reduction goodwill carrying amt combinations IAS12.68 6.21
Business combinations disclosure: 1. Nature & fin effect during period or
after bs event 2. P&L, error corrections or adj result fm business Disclosures for
combinations in current or previous periods 3. Why carrying amt of business
goodwill scheduling period combinations IAS12.19 6.21
Business combination: 1. Tax AS & LI must recognised 2. Revaluation of

AS to fair value no adj tax will lead to deferred tax LI 3. Tax AS & LI
will impact goodwill 4. IAS12 prohibit recognition deferred tax LI fm tax
temporary diff between carrying amt of goodwill and tax base 5. acquirer
may recognise deferred tax AS it previously not recognise fm goodwill 6. IAS12/IFRS3.
acquirer not recognise AS the benefit of income tax Income taxes 65 6.22
Business combination acquirer not recognise AS at acquisition, acquirer
should 1. Adj carrying amt of goodwill to amt have been recorded if the
deferred tax AS had recognised at acquisition date 2. Recognise an Ex for IAS12/IFRS3.
reduction in carrying amt of goodwill Income taxes 65 6.22
Control criterion: 1. legal form of member of economic entity is irrelevant Consolidated fin
2. Equal in public sector & private sectors 3. Broad concept of group statements 7.07
Control is "power to govern the fin & operating policies of an entity so as Consolidated fin
to obtain benefits from its activities. statements IAS27.04 7.07
Control exist the parent owns voting power fm the power: 1. More than
50% voting right 2. Govern fin & policies of an through statute or
agreement 3. Appoint or discharge the majority of directors or governing
member of another entity 4. Cast the majority of votes at a meeting of Consolidated fin
directors or governing body statements IAS27.13 7.08
SPE control by an entity: 1. Activities of SPE, obtain the benefit fm

operations 2. Entity has ability to obtain majority of benefits via autopilot
mechanism 3. Entity has right to majority of benefit of SPE and exposed
to the irks of such activities 4. entity retain the majority of residual or
ownership risk related to the SPE or its assets SPE IAS27 SIC12 7.09
Inventories must be measured at the lower of cost and net realisable value
not fair value Revaluation of assets IAS02.09 7.11
Intra-group transactions: A group P&L recognition 1. Sales of inventory
2. Sales of depr AS B. no P&L 1. Dividend 2. Inter-group int 3. Intra- Realisation group
group services p&l IAS27.24 7.16 T7.1
Parent concept (proprietary concept) classifies minority int as a LI entity
Equity concept &
concept classifies it as equity parent concept IAS27 7.19
Proprietary concept (parent concept) classifies minority int as a LI entity
Equity concept &
Minority interest:
Entity concept consolidation process modifications: 1. Pre-acquisition entity
equity consolidation adj 2. Dividends paid by subsidiary 3. Measurement concept=economic
& disclosure of minority int in the conso fin statement entity concept IAS27 7.20
Entity concept features: 1. asst, liabilities, revenues and expenses similar
nature combines; 2. minority int is an equity participant; 3. Minority int Minority interest:
measured as respective proportionate int in the equity subsidiary after adj entity
unrealized p&l of subsidiary 4. effect of transaction within the grope are concept=economic
eliminate in full entity concept IAS27 7.20
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Minority int in net assets consist: 1. Amt of minority int at the date of Minority interest
original combination calculated IRFS3 and 2. Minority share of chg in general measured as
equity since the date of combination. Not indicate how to measure portion of aggregate
minority int share of movement in equity. amt of equity IAS27.22 7.23
Acquisition of add'l int 1. Cost of business combination at each
transaction 2. Goodwill determined at each transaction 3. Fair value at Acquisition of add'l
each transaction int IFRS3 7.33
Loss of control: conso adj to 1. Reinstate the opening post-acquisition p&l

of sub 2. Reinstate the post-acquisition movement in reserves of the sub 3.
Record the net profit of subsidiary upto o date 4. Record a gain or loss in
the conso income statement to parent being deprived of control over the Subsidiary-loss of
equity of the subsidiary control AASB127 G13 7.35
Consolidation adj the gain or loss on sales of ownership int used to:
reinstate the closing post-acquisition retained profits included in the
consolidated fin statements in the rept period preceding the sales as the
o/b of the rept period in ownership int is sold 2. reinstate post-acquisition
movement in reserves 3. include in the conso a/c any p&l of the
subsidiary from the beginning of rept period in ownership int was sold up Subsidiary-post
to date of loss of control acquisition equity IAS27.30 7.37
Post-acquisition equity of a subsidiary include: 1.post-acquisition retained
profits 2. Chg to reserves 3. Net profit fm the start of the rept period in Subsidiary-post
ownership int is sold to the date of sales of ownership int acquisition equity IAS27 7.37
Consolidated fin state not require separate identification of minority int in

paid up capital, retained profits (surplus) or accumulate losses
(deficiency) and other reserves. Minority interest IAS27.33 7.38
Disclosure on consolidated fin state: 1. Consolidate b/s, income statement,

statement of chg in equity 4 cash flow statement 5. Notes incl a/c policies Consolidated fin
& explanatory notes statements IAS01.08 7.38
Consolidated income state disclose the minority int in net p&l. Chg in
group's equity during period disclosed in consolidate statement of chg in Consolidated fin
equity statements IAS27.33 7.39
Temporary diff: 1. Taxable temporary diff-results in +/- in income tax
payable (recoverable) in future period-rise to DTL 2.deductible temporary
diff-results +/- in income payable (recoverable) in future periods-rise to Temporary diff- Worksho
DTA Income tax Income tax p 41 p.14
Deferred tax asset arise: 1. Deductible temporary diff 2. Unused tax losses Worksho
and unused tax credits Deferred tax assets Income tax p 65 p.22
Tax loss recover by other evidence: 1. Sufficient taxable diff 2.probable
taxable profits 3.reason for tax loss unlikely to recur 4.tax planning Recognising tax Worksho
opportunities assets Income tax p 74 p.25
Fair value per share = (book value + asset reserve)*% of share in sub +/-
goodwill - cost /total shares of parent co Goodwill
Associates is an invested not a subsidiary nor joint venture but as Associate
significant influence investments IAS28 8.03
Associates investment s/b apply equity method results in investment being Associate
recorded at share of associate's net assets investments IAS28 8.03
Associates investment disclosure summarised info of asso (assets,
liabilities, revenues, p&l), carrying amt of inv in asso & investor's share Associate
of p&l fm investment investments IAS28 8.03
Corporate Joint Ventures involves formation of a co with extensive
documentation evidencing special commercial arrangement exist among
owners of co Joint Ventures IAS31 8.03
Unincorporated joint venture operations, partnerships or trusts.

Fundamental characteristic is joint control exercised by over decisions
affecting financing, dev & mgt operation of a commercial undertaking.
Disclosure details information Joint Ventures IAS31 8.03
Significant influence-power to participate in fin & operating policy
decision of the invested but is not control or joint control over those Associate
policies investments IAS28.02 8.03/05
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Significant influence fm voting power: 1. Representation on board of

directors 2. Participation in policy making 3. Material transactions
between investor & invested 4. Interchg of mgt personnel 5. Prov of Associate
essential IT investments IAS28.07 8.06
Significant influence by investor holds 20% voting power unless can be
clearly demonstrated this is not the case. 20& test s/b decided in all Associate
prevailing circumstances investments IAS28.06 8.06
Associate
Significant influence of potential voting rights need judgment 1. Mgt's investments-Potential
intention to exercise or convert fin instrument 2. Fin ability of the entity to voting right not take
exercise or convert the fin instrument into a/c IAS28.09 8.07
Significant influence for potential voting rights incl share options or Associate
instrument are convertible into ordinary shares that are presently investments-Potential
exercisable or presently convertible voting right a/c IAS28.08 8.07
Equity method on asso invest exception: 1. held for sales (IFRS 5 non-
current assets held for sales & discontinued operations (.14) 2. Parent
investment asso but to present consolidated a/c meets exemption
requirements of IAS27 Consolidated & separate fin statement (.14b) 3. Associate
investor satisfy certain restrictive conditions in .13c-identical to exempt
investments-Equity
parent consolidated fin state method IAS28.13 8.07
Associate
Equity method excluded: 1.PF 2.unit trust 3 inv held for trading'; investments-Equity
exemptions 1. Held for sales 2. Parent not pre cons 3. Investor exempted method IAS28 8.08 F8.1
Associates investment separate fin state where conditions .13b&c
satisfied. Associate investment IAS28.13b,c 8.08
Associates investment separate fin statement at cost when held for sales IAS28.35/27.3
Non-current Associate investment 7 8.08
Equity method-1. invest in mutual funds, unit trust 2. Invest 'held for
trading' fin asset Associate investment IAS28/39 8.08
Associates investment using Consolidated or fin statement prov equity a/c
info-invest in assoc a/c using equity method IAS28.13. Associate investment IAS28 8.08 F8.1
Associates investment using separate fin statement of parent/investor in
asso-invest a/c for either at cost or with IAS39(IAS28.35 & IAS27.37)
exception invest held for sales (IFRS 5) Associate investment IAS39/28/27 8.08 F8.1
Associates investment exemptions 1. Held for sales 2. Parent not prepare
consolidates IAS27.10 3. Investor in asso is exempted for similar parent
not have prepare consolidated a/c (.13c) (separate fin statement for item
2&3) Associate investment IAS28/27 8.08 F8.1
Associates investment not permit exemption of IAS28.13b, Associate investment AASB128 8.09
Equity method basis: method a/c invest initially recognised at cost & adj
post acquisition chg. P&L of investor incl investor's share of p&l of
invested Associate investment IAS28.02 8.09
Equity methods & cost method diff: 1. Cost method recognised only
dividend revenue, equity method is concerned share profit for the period
2. Equity method share of post-acquisition a, +/- in reserves b,retained
profit at the end of rept period Cost method IAS28.11-12 8.09
Associate inv-share
Equity method measured at cost of acquisition + investor's share of chg in & chg in equity/net
owner's equity/net assets of the associate. asset IAS28 8.09
Equity method principal: 1. P&l for rept period 2. Pay't dividend 3. Chg in
invitee's equity which have not included in invitee's p&l (e.g.reval in Associate
assets fm fair value) investment-Principal IAS28-11 8.10
Equity method features: 1. Initial invest at cost (goodwill not separately

disclosed) 2.investor p&l & invest carry amt adj for investor's post-
acquisition allowing dividend & effect of inter-entity transactions 3.
Investor's share of post-acquisition losses brought to a/c until carrying amt
of investment is '0' 4.dividend rec'd deducted fm carrying amt of
investment 5. investment a/c take into consideration post-acquisition chg Associate
in net assets of invested investment-features IAS28 8.11
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Associate share: ownership int by direct & indirect equity int in associate Associate share IAS28.21 8.11
Cost method: option or other instrument (e.g. non-participating,
cumulative preference shares) potential ownership int are convertible into
shares are not included Associate share IAS28.12 8.11
Associate has obligation for preference distribution will not available

other preference equity-holders mulct deducted fm net profit after tax
when calculation shares Associate share IAS28.28 8.11
Equity method recognised at cost equal to fair value of net assets -
negative goodwill Associate share IAS28.02 8.12
Goodwill must not amortized (28.23) s/b carrying amount assessed for
impairment 36. Initial investment IAS28/36 8.12
Negative goodwill recognised immediately in p&l IFRS3 Goodwill IAS28.23b 8.13
Post-acquisition reserve chg: 1. Reflected carrying amt 2. +/- fm revel of
assoc asset must a/c 3. Dr inv in asso Cr share of asso reserves.
Recognised in equity Associate share IAS28.39 8.15
Consolidated & separate fin state eliminate unrealized p&l fm upstream & Associate &
downstream subsidiaries IAS28.20 8.18
Consolidated subsidiaries: 1. Intra-group unrealized p&l elimination 2.

Tax effect on unrealized profit need recognised 3. Elimination in
proportion to investor's ownership int in asso 4. Elimination adj limited to Associate & IAS28.22&AA
'inv in asso' & share of profit of asso' subsidiaries SB128 8.19
Equity method reduction in equity-a/c amt of share of asso's loss, reserve -
in carrying amt of investment. Associate loss & reserve loss exceed
carrying amt, investor discontinues loss (.29). Add'l losses prov liability
recognised when investor obligation make pay't (.30). Investor's share of
associate profit recognised after offsetting loss not previously recognised
(.30) Associate loss IAS28.29-30 8.20
Equity method loss recognised to investment in ordinary shares and to

(loans, preference shares) of investors int in associate in reverse priority
in liquidation Dr Share of p&l of associates Cr Investment
in ordinary shares/Preference shares Associate loss IAS28.29-30 8.20
Recoverable amount test: recoverable amount is "the higher of its fair
value less costs to sell & its value in use" Associate loss IAS36.06 8.21
Disclosure: 1. Fair value of inv significant asso (for listed co) 2.

Summarised fin info of asso (AS/LI/revenues,P&L) 3. Restriction on
ability for asso that not using equity method 4. Details of unrecognized
losses 5. Summarised info for asso not a/c using equity method 6. carrying
amt of inv in asso as separate item in non-current assets in b/s 7. investor's
share of p&l 8. investor's share of chg recognised directly in asso equity 9. Investments in
contingent liabilities arising fm investor's inv in asso Associate disclosure IAS28.37-40 8.21
Disclosure add'l: (details of significant asso-name,principal activities,

ownership int) 1. Share of asso p&l before income tax 2. Shares of
associates' income tax expenses 3. Impairment losses (or reverses of) p&l
4. Share of asso capital & other expenditure commitments (excluding Investments in IAS28/AASB1
commitments for inventories) Associate disclosure 28 8.21
Disclosures: summarised fin info of asso (AS, LI, IC, P&L) 2. Carry amt Investments in
of inv in asso 3.investors share of p&l fm such investments Associate disclosure IAS28 8.22
Joint Ventures-3
Jointly Ventures: Jointly controlled 1. operation 2. assets 3. entities types IAS31 8.23
Jointly Ventures fundamental characteristics are contractual arrangement
1. Bind two or more ventures 2. Establish join control Joint Ventures IAS31.03 8.23
Joint venture is contractual arrangement to share of control, or power to
govern fin & operating policies of an economic activity, if no contractual
arrangement, not apply std Joint Ventures IAS31.09 8.24
Jointly controlled operations: contractual arrangement share of rev each
venture will rec'd fm sales of jointly produced prod & commonly incurred Jointly controlled
exp operations IAS31.13-14 8.24
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Jointly controlled assets: control assets produce benefits to ventures for

direct (rent bldg) or indirect (e.g. pipeline to transport each venture's Jointly controlled
product) assets IAS31.18-20 8.25
Jointly controlled entities: control economic activity e.g. fin contract & Jointly controlled
share profit or output of joint venture entity entities IAS31.24-25 8.25
Jointly ventures not required GPFR but special purpose fin rept Jointly Ventures IAS31.15-23 8.25
Jointly controlled operations: 1. Assets controls & liabilities incurs 2. Exp
incurs & share of income fm sales of goods or services Jointly Ventures IAS31.15-23 8.26
Jointly controlled assets (incl conso statement) 1. Income fm output of

join ventures 2. Exp incurred in joint ventures & shares of exp incur by
joint ventures 3. Share of joint venture assets (classified nature of assets)
4. Liabilities incurred in relation to joint ventures & venture's share of
jointly incurred venture liabilities Joint Ventures IAS31.21 8.29
Jointly controlled entities: 1. Earns revenues 2. Controls assets 3.
Obligation liabilities 4. Incurs expenses Joint Ventures IAS31.28-29 8.31
Joint venture keep own a/c record & prepare fin rept (.28). Contribution
by ventures to a jointly controlled entity are recognised in venture's fin
state 'as an investment in the jointly controlled entity' (.29) Joint Ventures IAS31.28-29 8.31
Joint venture rept: A. preferred method proportionate consolidation 1.
Line-by-line 2. Separate line items B. Alternative method equity method. IAS31/AASB1
(AASB not permit proportionate consolidation method) Joint Ventures 31 8.31
Joint venture exception: 1. Held for sales (in non-current assets) 2.

Proportionate consolidate or equity method is a parent has an investment
in jointly controlled entity but not present consolidated a/c 3.
Proportionate consolidate or equity method to a/c for int a jointly
controlled entity can satisfy certain restrictive condition. exempt a parent IAS31 &
fm preparing conso fin statement Joint Ventures AASB131 8.32
Joint Ventures fin statement specifies int in jointly controlled using IAS31.30.38.4
proportionate consolidate or equity method (std not recommended) Joint Ventures 0 8.32
Joint Ventures requires consolidated shares: 1. assets 2. Liabilities 3
.income & exp Joint Ventures IAS31.32.40 8.32
Joint Ventures rept format: line-by-line: jointly controlled AS/LI/IC/EX in Joint Ventures
fin state format IAS31.34 8.33
Joint Ventures
Joint Ventures rept format separate line items of shares of AS/LI/IC/EX format IAS31.34 8.33
Joint Ventures recognised full loss on reduction in net realisable value of Joint Ventures
current AS or impairment loss format IAS31.48 8.36
Jointly controlled entity-non-monetary contribution by veneers: 1. Portion

of gain or loss s/b recognised as income 2. Rec equity int rec non-
monetary or monetary assets dissimilar to contributed, portion of gain or
loss can recognised in income statement 3. unrealized gains or loss on
non-monetary assets should eliminated against underlying assets in Joint Ventures IAS31.48 &
proportionate consolidation method or against inv used equity method format SIC13 8.36
Joint venture s/n recognise share of p&l until sells (.49) When pur
reduction in net realisable value of current asset or impairment loss, full Joint Ventures
amt share of loss would recognised immediately by venture purchases IAS31.49 8.37
Joint control entity chg, discontinue use proportionate consolidate ion Joint Ventures-chg
(.36), a/c treatment to new relationship control IAS31.36 8.38
Joint control loss, investor significant influence, should a/c int in joint
venture using equity method. If ceases to significant influence, Joint Ventures-loss
discontinue use equity method control IAS31.45 8.38
Joint control become a subsidiary of venture, should a/c int accordance Joint Venturers-
Consolidate subsidiar IAS31.45/27 8.38
Joint control w/o joint control or significant influence, a/c int in joint Joint Ventures-w/o
venture in financial instruments: recognition and measurement (.51) significant influence IAS39.51 8.38
Joint venture managers or operators services fee a/c for IAS 18 revenue. Joint Ventures-mgt
For Joint Venture, the fees as an expenses (.53) fee IAS31/18 8.38
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Disclosures: 1. Contingent liabilities 2. Capital commitments 3. Int in

significant join venture 4. Proportion of ownership int held in jointly
controlled entities 5. Aggregate amt of current assets, long-term assets,
current liabilities, long-term liabilities income & expenses (use line-by-
line rept for proportionate consolidation or equity method) 6. method used Joint Ventures-
to a/c for int in jointly controlled entities disclosures IAS31.54-57 8.38
Jointly controlled operations & assets - name & principal activities,
percentage int in output, each category assets the amt of jointly controlled Joint Venture-add'l AASB131
operations & assets disclosure AUS57.1 8.39
Jointly controlled entities - fair value of int in entities, summaries
information (AS/LI/Revenue/p&l), unrecognized losses, summarised info Joint Venture-add'l AASB131
for controlled entities not a/c for using the equity method disclosure AUS57.2 8.39
Jointly controlled entities significant (name & principal activities, Joint Venture-add'l AABS131
ownership interest) disc 57.3a 8.39
Joint Venture-add'l AABS131
Joint venture entity share of profit before tax & income tax exp disc 57.3b 8.39
Jointly controlled entities impairment losses & reversal of impairment Joint Venture-add'l AASB131
losses incl in income statement when equity method is applied disc AUS57.3c 8.39
Jointly controlled entities venture's share of non-capital commitments disc 57.3d 8.39
Jointly controlled entities separate disclosure of carrying amt of int & Joint Venture-add'l AASB131
venture's share of profits where the equity method is used disc AUS57.4 8.39
Disclosure: 1. Contingent LI 2 JV commitments 3. Info for int to JV
entities 4. Method used to a/c for jointly controlled entities Joint Venture IAS31 8.41
Jointly controlled entity venture's share of chg recognised directly in Joint Venture-add'l AASB131
equity (disclosed in chg of equity of venture) disc AUS57.5 8.39
第 15 頁，共 79 頁
p_
measurement basis and detail of a/c policies list in summary?
第 16 頁，共 79 頁
p_
entity have option on going concern fin statement
not permit offset
s/b consistency
should display material on face of fin statement unless impractical
第 17 頁，共 79 頁
p_
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p_
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p_
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p_
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p_
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p_
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p_
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p_
第 25 頁，共 79 頁
p_
exam
第 26 頁，共 79 頁
p_
significant influence voting power, interchg mgt personnel, material transactions it, potential convertible right except
convertible including in significant influence
第 27 頁，共 79 頁
p_
第 28 頁，共 79 頁
p_
第 29 頁，共 79 頁
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第 30 頁，共 79 頁
Description
Description 1:1-11; 2:12-16; 3:17-23; 4: 24-29; 5:30-34; 6:35-41; 7:42-



Accounting policy chg. o/b of asset & liabilities must be adj for earliest
period where retrospective restatement is practicable Retrospective opening bal IAS08.24 1.09
Accounting policy chg: impracticable to determine either period-specific Impracticable on
effects or cumulative effect of the chg. determine period effect IAS08.23 1.09
第 31 頁，共 79 頁
Description

transaction 2. Goodwill determined at each transaction 3. Fair value at
each transaction Acquisition of add'l int IFRS3 7.33
Add'l disclosure for equity items 1. Shares issued, rights attached to
Add'l line items, headings & sub-ttl shall be presented on face of b/s Disclosure on face of b/s IAS01.69 1.22
Agreement that lender not demand repayment for more than 12M Non-current liabilities IAS01.66 1.21
must include regardless they out of ordinary operations or fm events
outside operations Determination of P&L IAS01 1.16

liabilities, revenues, p&l), carrying amt of inv in asso & investor's share
of p&l fm investment Associate investments IAS28 8.03
Associates investment s/b apply equity method results in investment being
recorded at share of associate's net assets Associate investments IAS28 8.03
Associates is an invested not a subsidiary nor joint venture but as
significant influence Associate investments IAS28 8.03
liquidity basis. Liquidity basis only used prov reliable & relevant info Presentation of assets &
than curr/non-cur basis liabilities IAS01.51 1.20
Balance sheet disclosures cash & cash equivalent, inventories, prov &
capital/reserves Disclosure on face of b/s IAS01.68-69 1.22
recovered in <12M and >12M if an item combines such amt due or Presentation of assets &
receivable liabilities ISA01.52 1.20
Balance sheet-fin institution list asset & liability in liquidity as solvency Presentation of assets &
of critical and no service within an operating cycle liabilities IAS01.54 1.20
第 32 頁，共 79 頁
Description


acquisition date the benefits of tax losses carried forward, acquirer
should: 1. Adj carrying amt of goodwill to recorded tax AS 2. Recognise Income tax for business
after bs event 2. P&L, error corrections or adj result fm business
combinations in current or previous periods 3. Why carrying amt of Disclosures for business
Business combinations rev asset to fair value with no equivalent adj for Income tax for business
Business combinations rise to tax AS & LI must recognised as AS& LI at Income tax for business

5. Dual ASX listed on diff stock ex are combined and managed via
contractual arrangement Business combinations IFRS03 6.06
Business combinations: acquirer recognise deferred tax AS it previously
could not recognise. This from part of a/c for business combination or Income tax for business
Business combinations: IAS12 prohibits recognition of deferred tax LI

resulting fm tax temporary diff between carrying amt of goodwill and tax Income tax for business
Business combinations: recognition of tax AS & LI on acquisition will Income tax for business
Cash flow effect of acquisition not offset by cash flow effect of disposal Acquisitions & disposal IAS07.39-42 1.32
Cash flow separate disclosure of info acquisitions & disposal of entities Acquisitions & disposal IAS07.40 1.32

are largely independent of the cash inflows from other assets or groups of Cash generating units-
AS" goodwill IAS36.06 6.16
第 33 頁，共 79 頁
Description

Combination concerning recognition of liabilities: 1. Future losses & Acquirer's identifiable
costs resulting fm the combination 2. Restructuring costs liabilities IFRS03 6.12
recognition criteria in .37, it is an unidentifiable asset regarded as part of Acquirer-Identifiable asset
goodwill or liability IFRS03.37a&b 6.11

Sales & Discontinued Operations, it is measure at fairs value less costs to combinations for Non-
sell current assets IFRS03.36 6.11

economic benefits will be required to settle the liability 2.reliable measure Acquirer-Identifiable asset
is available of fair value or liability IFRS03.37a&b 6.11
property, plant & equip. Identifiable liabilities incl A/P, loans & tax Acquirer-Identifiable asset
payable or liability IFRS03.37a&b 6.11
combination'. Such items do not represent liabilities of the acquire at Acquirer's identifiable
acquisition date as no past transaction rise to present obligation liabilities IFRS03.41 6.12



Consolidated & separate fin state eliminate unrealized p&l fm upstream &
downstream Associate & subsidiaries IAS28.20 8.18

proportion to investor's ownership int in asso 4. Elimination adj limited to IAS28.22&AA
'inv in asso' & share of profit of asso' Associate & subsidiaries SB128 8.19
第 34 頁，共 79 頁
Description

would be contingent liabilities and not recognised until becomes probable Acquirer's identifiable IAS37.30/IFR
a pay't will be required. Contractual pay't recognised as a liability. liabilities S3 6.13
reasons why "nature of adj would have been made if amt had reclassified
(.39) Comparative information IAS01.36-39 1.12
for processing & realization in cash or cash equivalent, no identifiable,
assumed 12M Current asset/liabilities IAS01.59 1.21
operating cycle 2. Trading purposes 3. Expected to be realized in 12M or
cash or equivalent Current asset/liabilities IAS01.57 1.21
Current liabilities if breach loan conditions cause become due on demand Current asset/liabilities IAS01.65 1.21
due for repayment within 12M as current liability even original loan or
agreement >12M Current asset/liabilities IAS01.63 1.21
Current liabilities: 1. Settled in normal operating cycle 2. Trading
purposes 3. Settled in 12M 4. No unconditional right Current asset/liabilities IAS01.60 1.21
第 35 頁，共 79 頁
Description
Current/Non-current classification is used deferred tax assets and
liabilities as non-curr Disclosure on face of b/s IAS01.70 1.22
business combination , the tax base of AS/LI differ fm carrying amt 2. Temporary diff on initial
Initial recognition, transaction affect neither a/c porfit nor taxable profit AS/LI IAS12.15&24 3.13
Deferred tax AS recovery or set of carrying amt of AS/LI cause future tax
pay't smaller than tax consequences Tax-effect accounting IAS12 2.30

Deferred tax LI recovery or set of carrying amt of AS/LI cause future tax
pay't larger than tax consequences Tax-effect accounting IAS12 2.30

Difference revolve around AASB124 in defining related parties & IAS24
containing more extensive disclosure requirement Related party disclosure &AASB 1.36

4. Share of asso capital & other expenditure commitments (excluding Investments in Associate IAS28/AASB1
commitments for inventories) disclosure 28 8.21
第 36 頁，共 79 頁
Description

and why intangible's fair value could not be measured 7. nature & amount
of negative goodwill recognised in p&l Acquisitions disclosure IFRS03.67 6.21
movement s 3. Reconciliation of opening & closing of each class of Statement of chg in equity
equity capital & reserve separately disclosing or in notes IAS01.97 1.17
Disclosure info: 1. Nature & fin effect 2. P&l 3. Chg in carrying amt of
goodwill Acquisitions disclosure IFRS03.66-74 6.21

a/c policy that is not permitted by an IFRS & disclose details in note to
a/c. Only departure fm IFRS permitted when result of using IFRS would Financial statement not IAS01.16/IFR
in unfair presentation permit departure fm a/c std Ss/AASB101 1.07
Disclosure of info: 1. Deferred tax AS & LI-tax AS & LI separately fm
current tax AS/LI 2. Info about the components of tax exp Tax-effect accounting IAS12 2.31
Disclosure: 1. Fair used
entities 4. Method valuetoofa/c
invforsignificant asso (forentities
jointly controlled listed co) 2. Joint Venture IAS31 8.41
share of p&l 8. investor's share of chg recognised directly in asso equity 9. Investments in Associate
contingent liabilities arising fm investor's inv in asso disclosure IAS28.37-40 8.21

line rept for proportionate consolidation or equity method) 6. method used
to a/c for int in jointly controlled entities Joint Ventures-disclosures IAS31.54-57 8.38
Disclosures: summarised fin info of asso (AS, LI, IC, P&L) 2. Carry amt Investments in Associate
of inv in asso 3.investors share of p&l fm such investments disclosure IAS28 8.22
Dividends pre-acquisition reduction carrying amt of inv. Post-acquisition
dividend treated as revenue by the investor Acquisitions dividends IAS27 6.20
Entity concept consolidation process modifications: 1. Pre-acquisition Minority interest: entity
equity consolidation adj 2. Dividends paid by subsidiary 3. Measurement concept=economic entity
& disclosure of minority int in the conso fin statement concept IAS27 7.20
nature combines; 2. minority int is an equity participant; 3. Minority int
measured as respective proportionate int in the equity subsidiary after adj Minority interest: entity
unrealized p&l of subsidiary 4. effect of transaction within the grope are concept=economic entity
eliminate in full concept IAS27 7.20
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Description
Equity method excluded: 1.PF 2.unit trust 3 inv held for trading'; Associate investments-
exemptions 1. Held for sales 2. Parent not pre cons 3. Investor exempted Equity method IAS28 8.08 F8.1

investment 5. investment a/c take into consideration post-acquisition chg Associate investment-
in net assets of invested features IAS28 8.11
Equity method measured at cost of acquisition + investor's share of chg in Associate inv-share & chg
owner's equity/net assets of the associate. in equity/net asset IAS28 8.09
requirements of IAS27 Consolidated & separate fin statement (.14b) 3.
investor satisfy certain restrictive conditions in .13c-identical to exempt Associate investments-
parent consolidated fin state Equity method IAS28.13 8.07
invitee's equity which have not included in invitee's p&l (e.g.reval in Associate investment-
assets fm fair value) Principal IAS28-11 8.10

第 38 頁，共 79 頁
Description

Financial stat presentation: 1. fin stat components 2. Fin statements
overall considerations 3. Fin stat structure & content of particular Presentations of fin stat IAS01 1.05


between minority int & parent entity equity holder 4. Adj to component of
equity as result of chg in a/c policies or corrections of error with IAS 8 Statement of chg in equity IAS01.96,82 1.17
Financial statements require each material class/nature or function
separately presented. IAS not apply to immaterial items Materiality & aggregation IAS01.29-31 1.11

dates 3. Goodwill & adj fair value adj 4.disposal of foreign operation Foreign operation IAS21.45-48 5.14


第 39 頁，共 79 頁
Description

Goodwill or negative goodwill accounted for in the consolidated fin
statement Acquisitions goodwill IFRS03.06 6.18
Goodwill: future economic benefits arising fm assets that are not capable Acquirer-Identifiable asset
of being individually identified and separately recognised or liability IFRS03 APP A 6.12
Guidance on selection a/c policies: 1. Similar and related issues 2.
Definition recognition criteria for AS, LI, IC & EX in IASB 3. Recent std Financial statements-no
setting, a/c literature & practice and consistent . specific in std/IFRIC IAS08.11-12 1.08

reserve made accordance IAS16 4. Translation diff fm foreign operation All-inclusive approach
accordance with IAS21 exception IAS01.78 1.16

2. Sales of depr AS B. no P&L 1. Dividend 2. Inter-group int 3. Intra-
group services Realisation group p&l IAS27.24 7.16 T7.1
Joint control become a subsidiary of venture, should a/c int accordance
Consolidate Joint Venturers-subsidiar IAS31.45/27 8.38
Joint control entity chg, discontinue use proportionate consolidate ion
(.36), a/c treatment to new relationship Joint Ventures-chg control IAS31.36 8.38
venture using equity method. If ceases to significant influence,
discontinue use equity method Joint Ventures-loss control IAS31.45 8.38
第 40 頁，共 79 頁
Description
AABS131
Joint venture entity share of profit before tax & income tax exp Joint Venture-add'l disc 57.3b 8.39

Joint venture managers or operators services fee a/c for IAS 18 revenue.
For Joint Venture, the fees as an expenses (.53) Joint Ventures-mgt fee IAS31/18 8.38
reduction in net realisable value of current asset or impairment loss, full
amt share of loss would recognised immediately by venture Joint Ventures purchases IAS31.49 8.37
Joint Ventures recognised full loss on reduction in net realisable value of
current AS or impairment loss Joint Ventures format IAS31.48 8.36
Joint Ventures rept format separate line items of shares of AS/LI/IC/EX Joint Ventures format IAS31.34 8.33
Joint Ventures rept format: line-by-line: jointly controlled AS/LI/IC/EX in
fin state Joint Ventures format IAS31.34 8.33

direct (rent bldg) or indirect (e.g. pipeline to transport each venture's
product) Jointly controlled assets IAS31.18-20 8.25
Jointly controlled entities impairment losses & reversal of impairment AASB131
losses incl in income statement when equity method is applied Joint Venture-add'l disc AUS57.3c 8.39
Jointly controlled entities separate disclosure of carrying amt of int & AASB131
venture's share of profits where the equity method is used Joint Venture-add'l disc AUS57.4 8.39
Jointly controlled entities significant (name & principal activities, AABS131
ownership interest) Joint Venture-add'l disc 57.3a 8.39
AABS131
Jointly controlled entities venture's share of non-capital commitments Joint Venture-add'l disc 57.3d 8.39
Jointly controlled entities: control economic activity e.g. fin contract &
share profit or output of joint venture entity Jointly controlled entities IAS31.24-25 8.25
Jointly controlled entity venture's share of chg recognised directly in AASB131
equity (disclosed in chg of equity of venture) Joint Venture-add'l disc AUS57.5 8.39
第 41 頁，共 79 頁
Description

non-monetary assets should eliminated against underlying assets in IAS31.48 &
proportionate consolidation method or against inv used equity method Joint Ventures format SIC13 8.36
Jointly Ventures: Jointly controlled 1. operation 2. assets 3. entities Joint Ventures-3 types IAS31 8.23

the conso income statement to parent being deprived of control over the
equity of the subsidiary Subsidiary-loss of control AASB127 G13 7.35
Minority int in net assets consist: 1. Amt of minority int at the date of
original combination calculated IRFS3 and 2. Minority share of chg in Minority interest general
equity since the date of combination. Not indicate how to measure measured as portion of
minority int share of movement in equity. aggregate amt of equity IAS27.22 7.23
Minority interest: income statement disclosure of PL allocated & allocated
to parent's shareholders Disclosure on face of PL IAS01.82 1.17
IAS21/ Taylor,
Non-current assets-including tangible, intangible & long-term fin assets. Current asset/liabilities IAS01.58 1.21
Parent concept (proprietary concept) classifies minority int as a LI entity Equity concept & parent
concept classifies it as equity concept IAS27 7.19

第 42 頁，共 79 頁
Description

Proprietary concept (parent concept) classifies minority int as a LI entity Equity concept & parent
concept classifies it as equity concept IAS27 7.19

acquisition date, the cost of business combination to assets acquired and
liabilities & contingent liabilities assumed Business combinations IFRS03.16 6.07
Re-finance an obligation for after 12M , classified as not-current, if no re-
finance discretion, classified as current Non-current liabilities IAS01.64 1.21
transaction involved 3. Element (amt, amt o/s, terms & conditions) of type
of transaction Related party disclosure IAS24.17-18 1.36
Related party maybe disclosed in aggregate except when separate
disclosure is necessary for understanding of effect Related party disclosure IAS24.22 1.36
Reliable: 1. Represent faithfully 2. Reflect economic substance not merely Financial statements-no
legal form 3.neutral 4.prudent 5.complete all material respects specific in std/IFRIC IAS08.10 1.07-08
announcements or implementation has begun (no future losses or other Acquirer's identifiable
costs may prov) liabilities IAS37.72 6.12
restructuring liability which can recognised as allocating the cost of Acquirer's identifiable
combination liabilities IFRS03.41,43 6.12
Revenues: 1. Sales of goods 2. Revenue fm rendering of services, int,
dividend Disclosure PL or notes IAS01.35 1.18

clearly demonstrated this is not the case. 20& test s/b decided in all
prevailing circumstances Associate investments IAS28.06 8.06
between investor & invested 4. Interchg of mgt personnel 5. Prov of
essential IT Associate investments IAS28.07 8.06
Significant influence for potential voting rights incl share options or
instrument are convertible into ordinary shares that are presently Associate investments-
exercisable or presently convertible Potential voting right a/c IAS28.08 8.07
Significant influence of potential voting rights need judgment 1. Mgt's Associate investments-
intention to exercise or convert fin instrument 2. Fin ability of the entity to Potential voting right not
exercise or convert the fin instrument take into a/c IAS28.09 8.07
第 43 頁，共 79 頁
Description

decision of the invested but is not control or joint control over those
policies Associate investments IAS28.02 8.03/05

taxable profits 3.reason for tax loss unlikely to recur 4.tax planning Worksho
opportunities Recognising tax assets Income tax p 74 p.25
Tax losses apply: 1. entities do not have losses: will have sufficient tax
profit in the future 2. Entities have losses: applies to deferred tax AS Deductible temporary diff IAS12 3.29
temporary diff (1&2 reduction in deferred tax asset) 3.recognition
criterion not satisfied (recognised as current tax income) Recumbent of tax losses 3.25 T3.5
Tax pay't larger (smaller) than they would be recovery or settlement Tax-effect accounting IAS12 2.30
recovery or set of carrying amt of AS or LI cause future tax pay't small
than pay't Tax-effect accounting IAS12 2.06
IAS21/ Taylor,
Tax deduction in excess cost e.g. R&D 4. Tax deduction in excess of cost
for salaries & wages as training, apprentices Temporary differences IAS12 3.37
第 44 頁，共 79 頁
Description

diff-results +/- in income payable (recoverable) in future periods-rise to Temporary diff-Income Worksho
DTA tax Income tax p 41 p.14
Temporary diff: 1. Temporary diff 2.non-temp diff e.g. fines & penalties
3. Excluded temp diff Temporary differences IAS12.24 3.36
第 45 頁，共 79 頁
subject
Description 1:1-11; 2:12-16; 3:17-23; 4: 24-29; 5:30-34; 6:35-41; 7:42-



Sales & Discontinued Operations, it is measure at fairs value less costs to combinations for
sell Non-current assets IFRS03.36 6.11


第 46 頁，共 79 頁
subject
Combination concerning recognition of liabilities: 1. Future losses & Acquirer's

costs resulting fm the combination 2. Restructuring costs identifiable liabilities IFRS03 6.12
combination'. Such items do not represent liabilities of the acquire at Acquirer's
acquisition date as no past transaction rise to present obligation identifiable liabilities IFRS03.41 6.12

would be contingent liabilities and not recognised until becomes probable Acquirer's IAS37.30/IFR
a pay't will be required. Contractual pay't recognised as a liability. identifiable liabilities S3 6.13
announcements or implementation has begun (no future losses or other Acquirer's
costs may prov) identifiable liabilities IAS37.72 6.12
restructuring liability which can recognised as allocating the cost of Acquirer's
combination identifiable liabilities IFRS03.41,43 6.12
comparing the carrying amt with recoverable amt. assets IAS38.88 97 6.14
transaction 2. Goodwill determined at each transaction 3. Fair value at Acquisition of add'l
each transaction int IFRS3 7.33
Acquisitions &
Acquisitions &

and why intangible's fair value could not be measured 7. nature & amount Acquisitions
of negative goodwill recognised in p&l disclosure IFRS03.67 6.21
Disclosure info: 1. Nature & fin effect 2. P&l 3. Chg in carrying amt of Acquisitions
goodwill disclosure IFRS03.66-74 6.21
Dividends pre-acquisition reduction carrying amt of inv. Post-acquisition Acquisitions
dividend treated as revenue by the investor dividends IAS27 6.20
Goodwill or negative goodwill accounted for in the consolidated fin Acquisitions
statement goodwill IFRS03.06 6.18
reserve made accordance IAS16 4. Translation diff fm foreign operation All-inclusive
accordance with IAS21 approach exception IAS01.78 1.16

'inv in asso'investment
Associates & share of exemptions
profit of asso'
1. Held for sales 2. Parent not prepare subsidiaries SB128 8.19
第 47 頁，共 79 頁
subject

investment 5. investment a/c take into consideration post-acquisition chg Associate
in net assets of invested investment-features IAS28 8.11
invitee's equity which have not included in invitee's p&l (e.g.reval in Associate
assets fm fair value) investment-Principal IAS28-11 8.10
liabilities, revenues, p&l), carrying amt of inv in asso & investor's share Associate
of p&l fm investment investments IAS28 8.03
Associates investment s/b apply equity method results in investment being Associate
recorded at share of associate's net assets investments IAS28 8.03
Associates is an invested not a subsidiary nor joint venture but as Associate
significant influence investments IAS28 8.03
clearly demonstrated this is not the case. 20& test s/b decided in all Associate
prevailing circumstances investments IAS28.06 8.06
between investor & invested 4. Interchg of mgt personnel 5. Prov of Associate
essential IT investments IAS28.07 8.06
decision of the invested but is not control or joint control over those Associate
policies investments IAS28.02 8.03/05
Associate
Equity method excluded: 1.PF 2.unit trust 3 inv held for trading'; investments-Equity
exemptions 1. Held for sales 2. Parent not pre cons 3. Investor exempted method IAS28 8.08 F8.1
requirements of IAS27 Consolidated & separate fin statement (.14b) 3. Associate
investor satisfy certain restrictive conditions in .13c-identical to exempt investments-Equity
parent consolidated fin state method IAS28.13 8.07
Significant influence for potential voting rights incl share options or Associate
instrument are convertible into ordinary shares that are presently investments-Potential
exercisable or presently convertible voting right a/c IAS28.08 8.07
Associate
Significant influence of potential voting rights need judgment 1. Mgt's investments-Potential
intention to exercise or convert fin instrument 2. Fin ability of the entity to voting right not take
exercise or convert the fin instrument into a/c IAS28.09 8.07
第 48 頁，共 79 頁
subject
Associate inv-share
Equity method measured at cost of acquisition + investor's share of chg in & chg in equity/net
owner's equity/net assets of the associate. asset IAS28 8.09


5. Dual ASX listed on diff stock ex are combined and managed via Business
contractual arrangement combinations IFRS03 6.06
acquisition date, the cost of business combination to assets acquired and Business
liabilities & contingent liabilities assumed combinations IFRS03.16 6.07
are largely independent of the cash inflows from other assets or groups of Cash generating
AS" units-goodwill IAS36.06 6.16
第 49 頁，共 79 頁
subject


for processing & realization in cash or cash equivalent, no identifiable, Current
assumed 12M asset/liabilities IAS01.59 1.21
operating cycle 2. Trading purposes 3. Expected to be realized in 12M or Current
cash or equivalent asset/liabilities IAS01.57 1.21
Current
Current liabilities if breach loan conditions cause become due on demand asset/liabilities IAS01.65 1.21
due for repayment within 12M as current liability even original loan or Current
agreement >12M asset/liabilities IAS01.63 1.21
Current liabilities: 1. Settled in normal operating cycle 2. Trading Current
purposes 3. Settled in 12M 4. No unconditional right asset/liabilities IAS01.60 1.21
Current
Non-current assets-including tangible, intangible & long-term fin assets. asset/liabilities IAS01.58 1.21
Tax losses apply: 1. entities do not have losses: will have sufficient tax Deductible
profit in the future 2. Entities have losses: applies to deferred tax AS temporary diff IAS12 3.29


第 50 頁，共 79 頁
subject


must include regardless they out of ordinary operations or fm events Determination of
outside operations
Add'l disclosure for equity items 1. Shares issued, rights attached to P&L IAS01 1.16


Disclosure on face of
Add'l line items, headings & sub-ttl shall be presented on face of b/s b/s IAS01.69 1.22
Balance sheet disclosures cash & cash equivalent, inventories, prov & Disclosure on face of
capital/reserves b/s IAS01.68-69 1.22
Current/Non-current classification is used deferred tax assets and Disclosure on face of
liabilities as non-curr b/s IAS01.70 1.22
Revenues: 1. Sales of goods 2. Revenue fm rendering of services, int, Disclosure PL or
dividend notes IAS01.35 1.18
第 51 頁，共 79 頁
subject

after bs event 2. P&L, error corrections or adj result fm business Disclosures for
combinations in current or previous periods 3. Why carrying amt of business
Parent concept (proprietary concept) classifies minority int as a LI entity Equity concept &
Proprietary concept (parent concept) classifies minority int as a LI entity Equity concept &

error
Impracticable to determine period-specific effect, o/b asset, liability & retrospective restate IAS08.43 1.13

a/c policy that is not permitted by an IFRS & disclose details in note to Financial statement
a/c. Only departure fm IFRS permitted when result of using IFRS would not permit departure IAS01.16/IFR
in unfair presentation fm a/c std Ss/AASB101 1.07

第 52 頁，共 79 頁
subject

IAS21/ Taylor,
第 53 頁，共 79 頁
subject
IAS21/ Taylor,



Impracticable on
Accounting policy chg: impracticable to determine either period-specific determine period
effects or cumulative effect of the chg. effect IAS08.23 1.09
第 54 頁，共 79 頁
subject

acquisition date the benefits of tax losses carried forward, acquirer Income tax for
should: 1. Adj carrying amt of goodwill to recorded tax AS 2. Recognise business
Income tax for
Business combinations rev asset to fair value with no equivalent adj for business
Income tax for
Business combinations rise to tax AS & LI must recognised as AS& LI at business
Business combinations: acquirer recognise deferred tax AS it previously Income tax for
could not recognise. This from part of a/c for business combination or business
Business combinations: IAS12 prohibits recognition of deferred tax LI Income tax for
resulting fm tax temporary diff between carrying amt of goodwill and tax business
Income tax for
Business combinations: recognition of tax AS & LI on acquisition will business
第 55 頁，共 79 頁
subject




第 56 頁，共 79 頁
subject


Joint Ventures recognised full loss on reduction in net realisable value of Joint Ventures
current AS or impairment loss format IAS31.48 8.36
Joint Ventures
Joint Ventures rept format separate line items of shares of AS/LI/IC/EX format IAS31.34 8.33
Joint Ventures rept format: line-by-line: jointly controlled AS/LI/IC/EX in Joint Ventures
fin state format IAS31.34 8.33

non-monetary assets should eliminated against underlying assets in Joint Ventures IAS31.48 &
proportionate consolidation method or against inv used equity method format SIC13 8.36
Joint Ventures-3
Jointly Ventures: Jointly controlled 1. operation 2. assets 3. entities types IAS31 8.23

Joint venture managers or operators services fee a/c for IAS 18 revenue. Joint Ventures-mgt
For Joint Venture, the fees as an expenses (.53) fee IAS31/18 8.38

第 57 頁，共 79 頁
subject

Minority int in net assets consist: 1. Amt of minority int at the date of
Minority interest
Minority interest:

should disclose situation & prov info the potential impact of new std New standard
Non-current IAS08.30 1.10
Agreement that lender not demand repayment for more than 12M liabilities IAS01.66 1.21
Re-finance an obligation for after 12M , classified as not-current, if no re- Non-current
finance discretion, classified as current liabilities IAS01.64 1.21
Financial stat presentation: 1. fin stat components 2. Fin statements Presentations of fin
overall considerations 3. Fin stat structure & content of particular stat IAS01 1.05

2. Sales of depr AS B. no P&L 1. Dividend 2. Inter-group int 3. Intra- Realisation group
group services p&l IAS27.24 7.16 T7.1
taxable profits 3.reason for tax loss unlikely to recur 4.tax planning Recognising tax Worksho
opportunities assets Income tax p 74 p.25
第 58 頁，共 79 頁
subject
Accounting policy chg. o/b of asset & liabilities must be adj for earliest Retrospective
period where retrospective restatement is practicable opening bal IAS08.24 1.09






Deferred tax AS recovery or set of carrying amt of AS/LI cause future tax Tax-effect
pay't smaller than tax consequences accounting IAS12 2.30
Deferred tax LI recovery or set of carrying amt of AS/LI cause future tax Tax-effect
pay't larger than tax consequences accounting IAS12 2.30
Disclosure of info: 1. Deferred tax AS & LI-tax AS & LI separately fm Tax-effect
current tax AS/LI 2. Info about the components of tax exp accounting IAS12 2.31
Tax-effect
Tax pay't larger (smaller) than they would be recovery or settlement accounting IAS12 2.30
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recovery or set of carrying amt of AS or LI cause future tax pay't small Tax-effect
than pay't accounting IAS12 2.06
Tax deduction in excess cost e.g. R&D 4. Tax deduction in excess of cost Temporary
for salaries & wages as training, apprentices differences IAS12 3.37
Temporary diff: 1. Temporary diff 2.non-temp diff e.g. fines & penalties Temporary
3. Excluded temp diff differences IAS12.24 3.36
diff-results +/- in income payable (recoverable) in future periods-rise to Temporary diff- Worksho
DTA Income tax Income tax p 41 p.14
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Description 1:1-11; 2:12-16; 3:17-23; 4: 24-29; 5:30-34; 6:35-41; 7:42-


must include regardless they out of ordinary operations or fm events
outside operations Determination of P&L IAS01 1.16
Financial stat presentation: 1. fin stat components 2. Fin statements
overall considerations 3. Fin stat structure & content of particular Presentations of fin stat IAS01 1.05
第 61 頁，共 79 頁
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a/c policy that is not permitted by an IFRS & disclose details in note to Financial statement not
a/c. Only departure fm IFRS permitted when result of using IFRS would permit departure fm a/c IAS01.16/IFR
in unfair presentation std Ss/AASB101 1.07
Revenues: 1. Sales of goods 2. Revenue fm rendering of services, int,
dividend Disclosure PL or notes IAS01.35 1.18
operating cycle 2. Trading purposes 3. Expected to be realized in 12M or
cash or equivalent Current asset/liabilities IAS01.57 1.21
Non-current assets-including tangible, intangible & long-term fin assets. Current asset/liabilities IAS01.58 1.21
for processing & realization in cash or cash equivalent, no identifiable,
assumed 12M Current asset/liabilities IAS01.59 1.21
Current liabilities: 1. Settled in normal operating cycle 2. Trading
purposes 3. Settled in 12M 4. No unconditional right Current asset/liabilities IAS01.60 1.21
due for repayment within 12M as current liability even original loan or
agreement >12M Current asset/liabilities IAS01.63 1.21
Re-finance an obligation for after 12M , classified as not-current, if no re-
finance discretion, classified as current Non-current liabilities IAS01.64 1.21
Current liabilities if breach loan conditions cause become due on demand Current asset/liabilities IAS01.65 1.21
Agreement that lender not demand repayment for more than 12M Non-current liabilities IAS01.66 1.21
Balance sheet disclosures cash & cash equivalent, inventories, prov &
capital/reserves Disclosure face of b/s IAS01.68-69 1.22
Add'l line items, headings & sub-ttl shall be presented on face of b/s Disclosure face of b/s IAS01.69 1.22
Current/Non-current classification is used deferred tax assets and
liabilities as non-curr Disclosure face of b/s IAS01.70 1.22
also
Add'londisclosure
nature, function & size
for equity of1.amt
items involved
Shares issued, rights attached to Disclosure IAS01.75 1.22
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reserve made accordance IAS16 4. Translation diff fm foreign operation All-inclusive approach
accordance with IAS21 exception IAS01.78 1.16


Acquisitions &
Acquisitions &

第 63 頁，共 79 頁
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Accounting policy chg: impracticable to determine either period-specific Impracticable on
effects or cumulative effect of the chg. determine period effect IAS08.23 1.09
Accounting policy chg. o/b of asset & liabilities must be adj for earliest Retrospective opening
period where retrospective restatement is practicable bal IAS08.24 1.09


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Deferred tax AS recovery or set of carrying amt of AS/LI cause future tax
pay't smaller than tax consequences Tax-effect accounting IAS12 2.30

Deferred tax LI recovery or set of carrying amt of AS/LI cause future tax
pay't larger than tax consequences Tax-effect accounting IAS12 2.30

Disclosure of info: 1. Deferred tax AS & LI-tax AS & LI separately fm
current tax AS/LI 2. Info about the components of tax exp Tax-effect accounting IAS12 2.31
Tax losses apply: 1. entities do not have losses: will have sufficient tax Deductible temporary
profit in the future 2. Entities have losses: applies to deferred tax AS diff IAS12 3.29
Tax pay't larger (smaller) than they would be recovery or settlement Tax-effect accounting IAS12 2.30
recovery or set of carrying amt of AS or LI cause future tax pay't small
than pay't Tax-effect accounting IAS12 2.06
Tax deduction in excess cost e.g. R&D 4. Tax deduction in excess of cost
for salaries & wages as training, apprentices Temporary differences IAS12 3.37
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Business combinations: IAS12 prohibits recognition of deferred tax LI
resulting fm tax temporary diff between carrying amt of goodwill and tax Income tax for
base business combinations IAS12.15&21 6.21

after bs event 2. P&L, error corrections or adj result fm business
combinations in current or previous periods 3. Why carrying amt of Disclosures for
goodwill scheduling period business combinations IAS12.19 6.21
Business combinations rev asset to fair value with no equivalent adj for Income tax for
tax purposes will lead to deferred tax liability business combinations IAS12.19 6.21
Temporary diff: 1. Temporary diff 2.non-temp diff e.g. fines & penalties
3. Excluded temp diff Temporary differences IAS12.24 3.36

Business combinations rise to tax AS & LI must recognised as AS& LI at Income tax for
acquisition date business combinations IAS12.66 6.21
Business combinations: recognition of tax AS & LI on acquisition will Income tax for
impact on goodwill or negative goodwill recognised business combinations IAS12.66 6.21
Business combinations: acquirer recognise deferred tax AS it previously
could not recognise. This from part of a/c for business combination or Income tax for
impact on amt of goodwill or negative goodwill business combinations IAS12.67 6.21

acquisition date the benefits of tax losses carried forward, acquirer
should: 1. Adj carrying amt of goodwill to recorded tax AS 2. Recognise Income tax for
exp for reduction goodwill carrying amt business combinations IAS12.68 6.21
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第 67 頁，共 79 頁
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IAS21/ Taylor,
a/c statement JohnsonTaylor, 5.16
IAS21/

Dividends pre-acquisition reduction carrying amt of inv. Post-acquisition
dividend treated as revenue by the investor Acquisitions dividends IAS27 6.20
Minority interest:

Parent concept (proprietary concept) classifies minority int as a LI entity Equity concept &
Proprietary concept (parent concept) classifies minority int as a LI entity Equity concept &

Minority int in net assets consist: 1. Amt of minority int at the date of Minority interest
2. Sales of depr AS B. no P&L 1. Dividend 2. Inter-group int 3. Intra-
group services Realisation group p&l IAS27.24 7.16 T7.1
第 68 頁，共 79 頁
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liabilities, revenues, p&l), carrying amt of inv in asso & investor's share
of p&l fm investment Associate investments IAS28 8.03
Associates investment s/b apply equity method results in investment being
recorded at share of associate's net assets Associate investments IAS28 8.03
Associates is an invested not a subsidiary nor joint venture but as
significant influence Associate investments IAS28 8.03
Equity method excluded: 1.PF 2.unit trust 3 inv held for trading'; Associate investments-
exemptions 1. Held for sales 2. Parent not pre cons 3. Investor exempted Equity method IAS28 8.08 F8.1

investment 5. investment a/c take into consideration post-acquisition chg Associate investment-
in net assets of invested features IAS28 8.11
Equity method measured at cost of acquisition + investor's share of chg in Associate inv-share &
owner's equity/net assets of the associate. chg in equity/net asset IAS28 8.09
decision of the invested but is not control or joint control over those
policies Associate investments IAS28.02 8.03/05
clearly demonstrated this is not the case. 20& test s/b decided in all
prevailing circumstances Associate investments IAS28.06 8.06
between investor & invested 4. Interchg of mgt personnel 5. Prov of
essential IT Associate investments IAS28.07 8.06
Significant influence for potential voting rights incl share options or Associate investments-
instrument are convertible into ordinary shares that are presently Potential voting right
exercisable or presently convertible a/c IAS28.08 8.07
Significant influence of potential voting rights need judgment 1. Mgt's Associate investments-
intention to exercise or convert fin instrument 2. Fin ability of the entity to Potential voting right
exercise or convert the fin instrument not take into a/c IAS28.09 8.07
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requirements of IAS27 Consolidated & separate fin statement (.14b) 3.
investor satisfy certain restrictive conditions in .13c-identical to exempt Associate investments-
parent consolidated fin state Equity method IAS28.13 8.07

'inv in asso' & share of profit of asso' subsidiaries SB128 8.19



invitee's equity which have not included in invitee's p&l (e.g.reval in Associate investment-
assets fm fair value) Principal IAS28-11 8.10
第 70 頁，共 79 頁
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Jointly Ventures: Jointly controlled 1. operation 2. assets 3. entities Joint Ventures-3 types IAS31 8.23





Joint Ventures rept format separate line items of shares of AS/LI/IC/EX Joint Ventures format IAS31.34 8.33
Joint Ventures rept format: line-by-line: jointly controlled AS/LI/IC/EX in
fin state Joint Ventures format IAS31.34 8.33
Joint Ventures recognised full loss on reduction in net realisable value of
current AS or impairment loss Joint Ventures format IAS31.48 8.36
第 71 頁，共 79 頁
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non-monetary assets should eliminated against underlying assets in IAS31.48 &
proportionate consolidation method or against inv used equity method Joint Ventures format SIC13 8.36

Joint venture managers or operators services fee a/c for IAS 18 revenue.
For Joint Venture, the fees as an expenses (.53) Joint Ventures-mgt fee IAS31/18 8.38

are largely independent of the cash inflows from other assets or groups of Cash generating units-
AS" goodwill IAS36.06 6.16
would be contingent liabilities and not recognised until becomes probable Acquirer's identifiable IAS37.30/IFR
a pay't will be required. Contractual pay't recognised as a liability. liabilities S3 6.13
announcements or implementation has begun (no future losses or other Acquirer's identifiable
costs may prov) liabilities IAS37.72 6.12

第 72 頁，共 79 頁
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5. Dual ASX listed on diff stock ex are combined and managed via
contractual arrangement Business combinations IFRS03 6.06
Combination concerning recognition of liabilities: 1. Future losses & Acquirer's identifiable
costs resulting fm the combination 2. Restructuring costs liabilities IFRS03 6.12
Goodwill or negative goodwill accounted for in the consolidated fin
statement Acquisitions goodwill IFRS03.06 6.18
acquisition date, the cost of business combination to assets acquired and
liabilities & contingent liabilities assumed Business combinations IFRS03.16 6.07



第 73 頁，共 79 頁
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Sales & Discontinued Operations, it is measure at fairs value less costs to combinations for Non-
sell current assets IFRS03.36 6.11

combination'. Such items do not represent liabilities of the acquire at Acquirer's identifiable
acquisition date as no past transaction rise to present obligation liabilities IFRS03.41 6.12
restructuring liability which can recognised as allocating the cost of Acquirer's identifiable
combination liabilities IFRS03.41,43 6.12

Disclosure info: 1. Nature & fin effect 2. P&l 3. Chg in carrying amt of
goodwill Acquisitions disclosure IFRS03.66-74 6.21

and why intangible's fair value could not be measured 7. nature & amount
of negative goodwill recognised in p&l Acquisitions disclosure IFRS03.67 6.21
disclosure
Acquisitionrelating
of add'ltoint
a/c1.policies, hedge a/ccombination
Cost of business & fair valuesat each Financial instruments IFRS07 1.37
transaction 2. Goodwill determined at each transaction 3. Fair value at
each transaction Acquisition of add'l int IFRS3 7.33
taxable profits 3.reason for tax loss unlikely to recur 4.tax planning Worksho
opportunities Recognising tax assets Income tax p 74 p.25
diff-results +/- in income payable (recoverable) in future periods-rise to Temporary diff-Income Worksho
DTA tax Income tax p 41 p.14
第 74 頁，共 79 頁
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第 75 頁，共 79 頁
1 prov for wage payment 180
tax base 0 deductible amt 180
2 Ar 150 prov for bd $50

tax base 150 deductible amt 50
3-6 dtl o/b 3000 dta o/b 500 current period increase dtl 210 dta 90 taxabale income
3 q 500
7 cashflow: operation profit 140

increase in ap
increase in inventroy
decrease in ar
decrease in prepayment
8 cashflow in ar
sales cr 6000
sales cash 300
ar increase 50
prov for all on bad debt 30
bad debt 20
9 cashflow on fin operation int paid …
cashflow on investing operation sales fa - pur fa
cashflow on operatiing
10-11 fc at diff ex rate 2 question

12 fc at ap period 1.1; 1.2 ; 1.3, 1.4 , 1.5 period 4 and period
Dr inventory at 150
Dr FC contrct 30
CR Hedge 180 ????
DR reserve 20 ???
13 paid ???? Period 5

DR hedge 200
CR reserve 30
Cr bank
14 intestment in asso use equity method
15 loan for JV
DR fa Cr bank or DR fa Cr loan
16 prov for restructure cost permit ias37 permit
17 goodwill - contingence LI for employee payment

18 revalue fair value reserve to p&l
19-20 hedge of effective portion in p&l or ineffective portion2qin equity
21 goodwill test impairment loss every year ?
22 significant influence: interchg mgt; 20% voting; future convertible right
23 Equity method only dividend not FA reserve
24 Tax loss recognised as DTA and income tax if future may recover
25 tax loss recognised as income tax if future no profit
26 asso profit 30000 parent 100000, asso sales 20000 porfit 26000 1/2 on hand
parent sent 30000 for 36000 1/3 on hand
consolidate profit
minority int 20%
27 asso sales FA profit 10000 for 5year on x4, profit on x6 how much asso closing retain earning
dr depr only
dr profit & retain earning
28 computer service affect p&l: 1. Revalue FA reserve 2. Fc in other courntry 3. Unrealise gain 4. Adj per
29 measurement basis and detail of a/c policies list in summary?
30 entity have option on going concern fin statement

not permit offset
s/b consistency
32 should display material on face of fin statement unless impractical
33 realised conintue on goodwill

closing retain earning
ry 3. Unrealise gain 4. Adj pervious period p&l 5.

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Description 1:1-11; 2:12-16; 3:17-23; 4: 24-29; 5:30-34; 6:35-41; 7:42-

Disclosure not overcome non-compliance with IFRS, not accept to adopt

Accounting policies chg: not regards: 1. A/c policy differ in substance to

Accounting policies no specific requirement, mgt dep policies ensures

Accounting & disclosure for error: e.g. mathematical mistakes,

Impracticable to determine cumulative effect of an error on prior periods, Errors exempted

Extraordinary items prohibits presentation either in income statement or in

Financial stateless disclosed on face: 1. revenue 2. Finance costs 3. Share

Financial statement equity: 1. Period PL 2. Income & exp required by

Geographical segments, info disclosed 1. Segment revenue fm external

Primary Segment information: segment revenue; result; assets; liabilities;

Tax base for a liability (not revenue received in advance)

Deferred tax asset when recovery or settlement of carrying amt of an asset

Deferred tax liability when recovery or set of carrying amt of an asset or

Deferred tax: certain limited exception, recognised a deferred tax liability

Accounting for FC transactions 1. Translation to record in FC at

Foreign currency transaction subsequent monetary items at closing rate,

Fair value hedges "hedge of exposure to chg in fair value of recognised

Post-acquisition chg to equity in foreign entity: 1. IC & Ex at diff closing

Foreign operation considered: 1. Intragroup monetary items 2. Diff report

Current rate method-post-acquisition movement in equity other than

Purchase method of business combination: 1. Identifying an acquirer 2.

Combining entity identify acquirer: 1. Identify acquirer 2. Control "the

Combining entity identify: 1. Significantly greater fair value than another

Combination cost measure cost as: 1.fair value at date of ex of assets

Combination cost shall identifiable asset or liability individually identified

Combination concerning recognition of liabilities: 1. Future losses & Acquirer's

Contractual payment (e.g. employees) in business combination occurring

Goodwill & impairment of asset: 1. Ttl goodwill allocated to individual

Disclosure detail: 1. name & description of combining entities 2.

Business combinations : acquirer did not recognise as identifiable asset at

Business combination: 1. Tax AS & LI must recognised 2. Revaluation of

SPE control by an entity: 1. Activities of SPE, obtain the benefit fm

Loss of control: conso adj to 1. Reinstate the opening post-acquisition p&l

Consolidated fin state not require separate identification of minority int in

Disclosure on consolidated fin state: 1. Consolidate b/s, income statement,

Unincorporated joint venture operations, partnerships or trusts.

Significant influence fm voting power: 1. Representation on board of

Equity method features: 1. Initial invest at cost (goodwill not separately

Associate has obligation for preference distribution will not available

Consolidated subsidiaries: 1. Intra-group unrealized p&l elimination 2.

Equity method loss recognised to investment in ordinary shares and to

Disclosure: 1. Fair value of inv significant asso (for listed co) 2.

Disclosure add'l: (details of significant asso-name,principal activities,

Jointly controlled assets: control assets produce benefits to ventures for

Jointly controlled assets (incl conso statement) 1. Income fm output of

Joint venture exception: 1. Held for sales (in non-current assets) 2.

Jointly controlled entity-non-monetary contribution by veneers: 1. Portion

Disclosures: 1. Contingent liabilities 2. Capital commitments 3. Int in

measurement basis and detail of a/c policies list in summary?

entity have option on going concern fin statement

not permit offset

should display material on face of fin statement unless impractical

convertible including in significant influence

Description 1:1-11; 2:12-16; 3:17-23; 4: 24-29; 5:30-34; 6:35-41; 7:42-

Accounting & disclosure for error: e.g. mathematical mistakes,

Accounting policy chg impracticable to determine cumulative effect in

Acquisition of add'l int 1. Cost of business combination at each

Associates investment disclosure summarised info of asso (assets,

Business combination acquirer not recognise AS at acquisition, acquirer

Business combination: 1. Tax AS & LI must recognised 2. Revaluation of

Business combinations: 1. Acquire 2. Gains control through pur of shares

Business combinations: IAS12 prohibits recognition of deferred tax LI