Wiley IFRS 2015 E-Book

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Regulatory Reporting
• Sprache: Englisch

Seitenzahl: 2282

Veröffentlichungsjahr: 2015

Beschreibung

The globally-sourced guide to the latest IFRS, with practical application advice

Wiley IFRS 2015 is a complete guide to the latest International Financial Reporting Standards set forth by the International Accounting Standards Board. Written by an international team of experts in global accounting standards, this guide provides detailed information on the latest changes to the IFRS, with comprehensive coverage of IFRIC interpretations and the tools needed to maintain IFRS-compliance. Readers will find clear, concise explanations delineated by topic for easy navigation, designed for both quick reference in-depth study, with practical advice for implementing IFRS in real-life scenarios.

The goal of the IASB is to achieve global convergence of accounting standards, reducing preparation costs and facilitating the assessment of business outcomes. The IFRS are a key part of the strategy, simplifying reporting for multinational corporations and the analysts and investors tasked with evaluating results. Wiley IFRS 2015 details the most recent changes to the standards, with expert guidance toward implementation. Readers will:

• Grasp the underlying framework of the International Financial Reporting Standards
• Understand how to interpret the standards and apply them in the real world
• Follow the Disclosure Checklist to verify completeness and IFRS compliance
• Learn from the experts when implementing IFRS for the first time

More and more countries are either adopting IFRS or adapting local standards to align with those set by the IASB. The standards change annually, and failure to stay up to date can affect business strategy and outcomes, especially when working internationally. Wiley IFRS 2015 provides the latest information and expert guidance, helping practitioners match IFRS to real-world practice.

Leseprobe

Contents

Cover

Half Title page

Title page

Copyright page

About the Authors

Chapter 1: Introduction to International Financial Reporting Standards

Introduction

Origins and Early History of the IASB

The Current Structure

Process of IFRS Standard Setting

Convergence: The IASB and Financial Reporting in the US

The IASB and Europe

IFRS for SMEs

Appendix A: Current International Financial Reporting Standards (IAS/IFRS) and Interpretations (SIC/IFRIC)

Appendix B: Projects Completed Since Previous Issue (October 2013 to September 2014)

Appendix C: IFRS for SMEs

Chapter 2: Conceptual Framework

Introduction

Conceptual Framework for Financial Reporting 2010

Conceptual Framework Project

Hierarchy of Standards

IFRS Practice Statement Management Commentary

US GAAP Comparison

Chapter 3: Presentation of Financial Statements

Introduction

Scope

Definitions of Terms

Financial Statements

General Features

Structure and Content

Future Developments

Illustrative Financial Statements

US GAAP Comparison

Chapter 4: Statement of Financial Position

Introduction

Scope

Definitions of Terms

General Concepts, Structure and Content

Classification of Assets

Classification of Liabilities

Classification of Shareholders’ Equity

US GAAP Comparison

Chapter 5: Statements of Profit or Loss and Other Comprehensive Income, and Changes in Equity

Introduction

Amendments Effective During 2011

Future Developments

Scope

Definitions of Terms

Concepts of Income

Recognition and Measurement

Statement of Profit or Loss and Other Comprehensive Income

Presentation in the Profit or Loss Section

Other Comprehensive Income

Statement of Changes in Equity

US GAAP Comparison

Chapter 6: Statement of Cash Flows

Introduction

Scope

Definitions of Terms

Background

Presentation

Other Requirements

Disclosure and Examples

Consolidated Statement of Cash Flows

US GAAP Comparison

Chapter 7: Accounting Policies, Changes in Accounting Estimates, and Errors

Introduction

Scope

Definitions of Terms

Importance of Comparability and Consistency in Financial Reporting

Accounting Policy

Selecting Accounting Policies

Changes in Accounting Policies

Changes in Accounting Estimates

Correction of Errors

US GAAP Comparison

Chapter 8: Inventories

Introduction

Definitions of Terms

Recognition and Measurement

Methods of Inventory Costing Under IAS 2

US GAAP Comparison

Chapter 9: Property, Plant, and Equipment

Introduction

Definitions of Terms

Recognition and Measurement

Derecognition

Noncurrent Assets Held for Sale

Disclosures

Examples of Financial Statement Disclosures

Future Developments

US GAAP Comparison

Chapter 10: Borrowing Costs

Introduction

Definitions of Terms

Recognition and Measurement

US GAAP Comparison

Chapter 11: Intangible Assets

Introduction

Scope

Definitions of Terms

Recognition and Measurement

Disclosures

Examples of Financial Statement Disclosures

Future Developments

US GAAP Comparison

Chapter 12: Investment Property

Introduction

Definitions

Identification

Recognition and Measurement

Presentation and Disclosure

Examples of Financial Statement Disclosures

US GAAP Comparison

Chapter 13: Impairment and Noncurrent Assets Held for Sale

Introduction

Definitions of Terms

Impairment

Noncurrent Assets Held for Sale

Discontinued Operations

US GAAP Comparison

Chapter 14: Consolidations, Joint Arrangements, Associates, and Separate Financial Statements

Introduction

Definitions of Terms

Consolidated Financial Statements

Joint Arrangements

Associates

Equity Method of Accounting

Separate Financial Statements

Disclosure Requirements

Transition Guidance

Future Developments

US GAAP Comparison

Chapter 15: Business Combinations

Introduction

Definitions of Terms

Business Combinations and Consolidations

Business Combinations

Disclosure Requirements

US GAAP Comparison

Chapter 16: Shareholders’ Equity

Introduction

Definitions of Terms

Recognition and Measurement

Presentation and Disclosure

Classification Between Liabilities and Equity

Share Issuances and Related Matters

Examples of Financial Statement Disclosures

Comparison with US GAAP

Chapter 17: Share-Based Payment

Introduction

Scope

Definitions of Terms

Overview

Recognition and Measurement

Equity-Settled Share-Based Payments

Cash-Settled Share-Based Payments

Share-Based Payment Transactions with Cash Alternatives

Share-Based Transactions Among Group Entities

Disclosure

Examples of Financial Statement Disclosures

Future Developments

US GAAP Comparison

Appendix: Employee Share Options Valuation Example

Chapter 18: Current Liabilities, Provisions, Contingencies, and Events After the Reporting Period

Introduction

Definitions of Terms

Recognition and Measurement

Disclosures

Practical Examples

Reporting Events Occurring After the Reporting Period

Future Developments

US GAAP Comparison

Chapter 19: Employee Benefits

Introduction

Definitions of Terms

Background

Basic Principles of IAS 19

Postemployment Benefit Plans

Employer’s Liability and Assets

Minimum Funding Requirement

Other Pension Considerations

Disclosures for Postemployment Benefit Plans

Other Employee Benefits

Future Developments

US GAAP Comparison

Chapter 20: Revenue Recognition, Including Construction Contracts

Revenue Recognition

Introduction

Definitions of Terms

Scope

Identification

Measurement

Recognition

Specific Transactions

Example of Financial Statement Disclosures

Construction Contract Accounting

Introduction

Definitions of Terms

Recognition and Measurement

Disclosure

Examples of Financial Statement Disclosures

Future Developments

US GAAP Comparison

Chapter 21: Government Grants

Introduction

Scope

Definitions of Terms

Recognition of Government Grants

Presentation and Disclosure

Other Issues

Service Concessions

US GAAP Comparison

Chapter 22: Leases

Introduction

Definitions of Terms

Classification of Leases

Recognition and Measurement

Disclosure Requirements Under IAS 17

Future Developments

US GAAP Comparison

Appendix A: Special Situations Not Addressed By IAS 17 But Which Have Been Interpreted Under US GAAP

Appendix B: Leveraged Leases Under US GAAP

Chapter 23: Foreign Currency

Introduction

Definitions of Terms

Scope, Objectives, and Discussion of Definitions

Foreign Currency Transactions

Translation of Foreign Currency Financial Statements

Guidance Applicable to Special Situations

Disclosure

Hedging

Examples of Financial Statement Disclosures

US GAAP Comparison

Chapter 24: Financial Instruments

Introduction

Future Developments and a Summary of IFRS 9

Definitions of Terms

Discussion of Certain Concepts

IAS 32: Financial Instruments—Presentation

IAS 39: Financial Instruments—Recognition and Measurement

Disclosure

Disclosures on Offsetting Financial Assets and Financial Liabilities

Financial Assets to Offsetting, Enforceable Master Netting Arrangements and Similar Agreements

Financial Liabilities Subject to Offsetting, Enforceable Master Netting Arrangements and Similar Agreements

Financial Assets Subject to Offsetting, Enforceable Master Netting Arrangements and Similar Agreements

Net Financial Assets Subject to Enforceable Master Netting Arrangements and Similar Agreements, By Counterparty

US GAAP Comparison

Chapter 25: Fair Value

Introduction

Scope

Definitions of Terms

Fair Value Measurement Principles and Methodologies

Fair Value Disclosure

Education Material

Future Developments

US GAAP Comparison

Chapter 26: Income Taxes

Introduction

Scope

Definitions of Terms

Identification

Recognition and Measurement of Current Tax

Recognition and Measurement of Deferred Tax

Recognition in Profit or Loss

Calculation of Deferred Tax Asset or Liability

Effect of Changed Circumstances

Specific Transactions

Presentation and Disclosure

Examples of Financial Statement Disclosures

US GAAP Comparison

Chapter 27: Earnings Per Share

Introduction

Scope

Definitions of Terms

Concepts, Rules, and Examples

Examples of Financial Statement Disclosures

US GAAP Comparison

Chapter 28: Operating Segments

Introduction

Scope

Definitions of Terms

Identification

Concepts and Requirements Under IFRS 8

Disclosure Requirements

Example of Financial Statement Disclosures Under IFRS 8

New Developments

US GAAP Comparison

Chapter 29: Related-Party Disclosures

Introduction

Definitions of Terms

Identification

Disclosures

Examples of Financial Statement Disclosures

US GAAP Comparison

Chapter 30: Accounting and Reporting by Retirement Benefit Plans

Introduction

Definitions of Terms

Scope

Defined Contribution Plans

Defined Benefit Plans

Disclosures

US GAAP Comparison

Chapter 31: Agriculture

Introduction

Scope

Definitions of Terms

Identification

Recognition and Measurement

Presentation and Disclosures

Examples of Financial Statement Disclosures

Other Issues

Future Development

US GAAP Comparison

Chapter 32: Extractive Industries

Introduction

Definitions of Terms

Exploration and Evaluation of Mineral Resources

Example of Financial Statement Disclosures

Future Developments

US GAAP Comparison

Chapter 33: Accounting for Insurance Contracts

Introduction

Definitions of Terms

Insurance Contracts

Recognition and Measurement Guidance

Disclosure

Future Developments

US GAAP Comparison

Chapter 34: Interim Financial Reporting

Introduction

Definitions of Terms

Alternative Concepts of Interim Reporting

Objectives of Interim Financial Reporting

Application of Accounting Policies

Presentation

Recognition Issues

US GAAP Comparison

Chapter 35: Inflation and Hyperinflation

Introduction

Definitions of Terms

Recognition and Measurement

Financial Reporting in Hyperinflationary Economies

US GAAP Comparison

Appendix: Monetary vs. Nonmonetary Items

Chapter 36: First-Time Adoption of International Financial Reporting Standards

Introduction

Definitions of Terms

First-Time Adoption Guidance

Optional Exemptions

Presentation and Disclosure

Index

2015 Interpretation and Application of International Financial Reporting Standards

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ISBN: 978-1-118-88955-8 (pbk); ISBN: 978-1-118-88953-4 (ebk); ISBN: 978-1-118-88952-7 (ebk); ISBN: 978-1-118-88954-1 (ebk);

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ABOUT THE AUTHORS

Asif Chaudhry, FCCA, CPA (K), MBA, is an audit and technical partner at PKF Kenya and is on the Kenyan Institute’s Professional Standards Committee. He has 17 years of experience including 8 years with Deloitte LLP, London. He was assisted by fellow partners Darshan Shah, Salim Alibhai and Patrick Kuria.

Craig Fuller, CA (SA), is a technical manager at PKF International Ltd and serves on PKFI’s International Professional Standards Committee. He qualified at PKF Durban before moving to the technical division of PKF (UK) LLP.

Danie Coetsee, CA (SA), is Professor of Accounting at the University of Johannesburg, specializing in financial accounting.

Edward Rands, FCA, is the Risk and Professional Standards partner at PKF Cooper Parry. He leads the firm’s technical team, which is responsible for maintaining and updating accounting knowledge and for dealing with complex problems and queries as they arise.

Erwin Bakker, RA, is an audit partner, responsible for national and international audits. He serves as chairman of the IFRS working group of PKF Wallast and is a member of the Technical Bureau of PKF Wallast in the Netherlands.

Nees de Vos, RA (NL), is an auditor at PKF Wallast in the Netherlands. He has worked as an audit manager at PwC where he has gained eight years’ public practice experience on audits for large listed companies and large privately owned groups. At PKF Wallast he is responsible for (IFRS) audits and (IFRS) accounting advisory.

Santosh Varughese, CA (Germany), Tax Advisor (Germany), CPA (US), is one of the partners at PKF Germany (www.pkf.de). He is the head of the IFRS Center of Excellence of PKF in Germany. One of his operative focuses is on audits for large listed companies.

Stephen Longmore, FCCA, is an audit senior manager and IFRS specialist at PKF Cooper Parry. He has led a number of local GAAP to IFRS conversions and previously worked as an audit manager for KPMG.

Stephen McIlwaine, ACA (Chartered Accountants Ireland) is a senior audit manager with Johnston Carmichael LLP (PKF member firm in Scotland). As well as being responsible for the provision of audit, accountancy and advisory services to clients across a range of sectors, he is also a member of the firm’s financial reporting technical team, responsible for providing guidance and training on current financial reporting issues across the firm, with a focus on IFRS.

T V Balasubramanian, FCA, CFE, CFIP, is a partner in PKF Sridhar & Santhanam, Chartered Accountants, India and previously served as a member of the Auditing and Assurance Standards Board of the ICAI, India.

Chapter 1

INTRODUCTION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS

Introduction

Origins and Early History of the IASB

The Current Structure

Process of IFRS Standard Setting

Convergence: The IASB and Financial Reporting in the US

The IASB and Europe

IFRS for SMEs

Appendix A: Current International Financial Reporting Standards (IAS/IFRS) and Interpretations (SIC/IFRIC)

Appendix B: Projects Completed the Previous Year

Appendix C: IFRS for SMEs

INTRODUCTION

The stated goal of the IFRS Foundation and the International Accounting Standards Board (IASB) is to develop, in the public interest, a single set of high-quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles.

There were once scores of unique sets of financial reporting standards among the more developed nations (“national GAAP”). The year 2005 marked the beginning of a new era in global conduct of business, and the fulfillment of a thirty-year effort to create the financial reporting rules for a worldwide capital market. For during that year’s financial reporting cycle, the 27 European Union (EU) member states, plus many others in countries such as Australia, New Zealand, Russia, and South Africa adopted International Financial Reporting Standards (IFRS).

Since then, many countries, such as Argentina, Brazil, Korea, Canada, Mexico, and Russia have adopted IFRS. China has substantially converted its national standards in line with IFRS. All other major economies, such as Japan and the United States, have established time lines to converge with or adopt IFRS in the near future.

2007 and 2008 proved to be watershed years for the growing acceptability of IFRS. In 2007, one of the most important developments was that the SEC dropped the reconciliation (to US GAAP) requirement that had formerly applied to foreign private registrants; thereafter, those reporting in a manner fully compliant with IFRS (i.e., without any exceptions to the complete set of standards imposed by IASB) do not have to reconcile net income and shareholders’ equity to that which would have been presented under US GAAP. In effect, the US SEC was acknowledging that IFRS was fully acceptable as a basis for accurate, transparent, meaningful financial reporting.

This easing of US registration requirements for foreign companies seeking to enjoy the benefits of listing their equity or debt securities in the US led, quite naturally, to a call by domestic companies to permit them to also freely choose between financial reporting under US GAAP and IFRS. By late 2008 the SEC appeared to have begun the process of acquiescence, first for the largest companies in those industries having (worldwide) the preponderance of IFRS adopters, and later for all publicly held companies. However, a new SEC chair took office in 2009, expressing a concern that the move to IFRS, if it were to occur, should perhaps move more slowly than had previously been indicated.

It had been highly probable that nonpublicly held US entities would have remained bound to only US GAAP for the foreseeable future, both from habit and because no other set of standards would be viewed as being acceptable. However, the body that oversees the private-sector auditing profession’s standards in the US amended its rules in 2008 to fully recognize IASB as an accounting standard-setting body (giving it equal status with the FASB), meaning that auditors and other service providers in the US could now issue opinions (or provide other levels of assurance, as specified under pertinent guidelines) on IFRS-based financial statements. This change, coupled with the promulgation by IASB of a long-sought standard providing simplified financial reporting rules for privately held entities (described later in this chapter), has probably increased the likelihood that a broad-based move to IFRS will occur in the US within the next several years.

The impetus for the convergence of historically disparate financial reporting standards has been, in the main, to facilitate the free flow of capital so that, for example, investors in the United States will become more willing to finance business in, say, China or the Czech Republic. Having access to financial statements that are written in the same “language” would eliminate what has historically been a major impediment to engendering investor confidence, which is sometimes referred to as “accounting risk,” which adds to the already existing risks of making such cross-border investments. Additionally, the permission to list a company’s equity or debt securities on an exchange has generally been conditional on making filings with national regulatory authorities, which have historically insisted either on conformity with local GAAP or on a formal reconciliation to local GAAP. Since either of these procedures was tedious and time-consuming, and the human resources and technical knowledge to do so were not always widely available, many otherwise anxious would-be registrants forwent the opportunity to broaden their investor bases and potentially lower their costs of capital.