International Financial Reporting Standards
Quiz:
Display related IFRSs
+ forex and IFRS 2
Joint World Bank and IFRS Foundation ‘train
the trainers’ workshop hosted by the ECCB,
30 April to 4 May 2012
The views expressed in this presentation are those of the
The views expressed in this presentation are those of the presenter,
presenter, not necessarily those of the IASB or IFRS Foundation.
not necessarily those of the IASB or IFRS Foundation.
K
© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Quiz:
Financial Statement Presentation
2
Question 1: Consolidated statement of
comprehensive income
How would the presentation of the consolidated
statement of comprehensive income change if
an entity had a discontinued operation in the
current reporting period?
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Quiz:
Financial Statement Presentation
3
Question 1:
•Separate line item in statement of
comprehensive income disclosing total of:
– the post-tax profit or loss of discontinued
op, plus
– the post-tax gain or loss on disposal or
write-down of the net assets of the
discontinued operation
•Presented above total profit or loss for year
•Separately from profit from continuing
operations
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Quiz:
Financial Statement Presentation
4
Question 2: Consolidated statement of
comprehensive income
How would the presentation of the consolidated
statement of comprehensive income change if
a group has a partly owned subsidiary?
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Quiz:
Financial Statement Presentation
5
Question 2: Consolidated statement of
comprehensive income
Disclose separately in the statement of
comprehensive income allocations of profit
or loss and comprehensive income
attributable to:
–non-controlling interest
–owners of the parent
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Quiz:
Financial Statement Presentation
6
Question 3: Consolidated statement of
financial position
Instead of presenting its current assets and
current liabilities separately from its non-current
assets and non-current liabilities, could the an
entity choose to present its assets and liabilities
in order of their liquidity
(ie, no current/non-current split)?
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Quiz:
Financial Statement Presentation
7
Question 3: Consolidated statement of
financial position
Could an entity choose to present its assets and
liabilities in order of their liquidity?
Entity must make a judgement and conclude
that a liquidity presentation provides reliable
and more relevant info than the current/noncurrent split.
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Quiz:
Financial Statement Presentation
8
Question 4: Consolidated statement of
financial position
When an entity presents its assets and
liabilities in order of their liquidity, is that order
ascending or descending?
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Quiz:
Financial Statement Presentation
9
Question 4: Consolidated statement of
financial position
When an entity presents its assets and
liabilities in order of their liquidity, is that order
ascending or descending?
Entity may choose either ascending or
descending order of liquidity.
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Quiz:
Financial Statement Presentation
10
Question 5: Gain on sale of equipment
An entity has never before disposed of any
property, plant and equipment. Could the entity
present this gain as a separate line item in the
consolidated statement of comprehensive
income described as ‘Extraordinary item—gain
on sale of equipment’?
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Quiz:
Financial Statement Presentation
11
Question 5: Gain on sale of equipment
‘Extraordinary item’?
No. Use of term ‘extraordinary item’ is
prohibited. But entity may highlight the
gain by presenting it as a separate line item
with appropriate description.
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Quiz:
Financial Statement Presentation
12
Question 6: Trade and other receivables
Instead of presenting a single line ‘Trade and
other receivables’ in the statement of financial
position and then disclosing ‘Trade debtors’
and ‘Prepayments’ separately in the notes,
could an entity present these two items as
separate line items in the balance sheet?
© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Quiz:
Financial Statement Presentation
Question 6: Trade and other receivables
Line items in statement of financial position?
Yes. Items that are sufficiently different in
nature or function may warrant separate
presentation in the statement of financial
position. Further subdivision of these line
items is not prohibited.
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13
Quiz:
Financial Statement Presentation
14
Question 7: Consolidated statement of
cash flows
In a reconciliation from profit to cash generated
from operations in the statement of cash flows
has a sub-heading “Cash flow included in
investing activities”.
Why is this sub-heading presented?
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Quiz:
Financial Statement Presentation
15
Question 7: Consolidated statement of cash
flows
Sub heading “Cash flow included in investing
activities”: Why?
This is neither required nor prohibited.
It explains why gain on sale of equipment
has been excluded from cash flows from
operating activities.
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Quiz:
Foreign exchange
16
Question 8:
If the presentation currency is different from the
functional currency, what additional information,
if any, would an entity disclose?
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Quiz:
Foreign exchange
17
Question 8:
If the presentation currency is different from the
functional currency, disclosures:
If presentation currency is different from the
functional currency, financial statements
would state that fact and disclose the
functional currency and the reason for
using a different presentation currency.
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Quiz:
Share-based payment
18
Question 9: An entity recognises the goods
or services received or acquired in a sharebased payment transaction when it
receives the goods or services:
a.only if the share-based payment is cashsettled
b.irrespective of whether it is cash-settled
or equity-settled
c.only if the share-based payment is equitysettled
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Quiz:
Share-based payment
19
Question 9: An entity recognises the goods
or services received or acquired in a sharebased payment transaction when it
receives the goods or services:
a.only if the share-based payment is cashsettled
b.irrespective of whether it is cash-settled
or equity-settled
c.only if the share-based payment is equitysettled
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Quiz:
Share-based payment
20
Question 10: The fair value of shares
granted unconditionally by an entity to its
employees are recognised as an expense:
a. on grant date (the entity presumes that
the employee services have been
received)
b. in the future periods (the entity
presumes that the employee services
will be received in the future)
c. either (a) or (b) accounting policy choice.
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Quiz:
Share-based payment
21
Question 10: The fair value of shares
granted unconditionally by an entity to its
employees are recognised as an expense:
a. on grant date (the entity presumes that
the employee services have been
received)
b. in the future periods (the entity
presumes that the employee services
will be received in the future)
c. either (a) or (b) accounting policy choice.
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Quiz:
Share-based payment
22
Question 11: For equity-settled share-based
payment transactions, an entity measures the
goods or services received
a. at the fair value of the goods and services
b. at the fair value of the equity instruments
c. at the fair value of the goods or services
received, unless that fair value cannot be
estimated reliably
© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Quiz:
Share-based payment
23
Question 11: For equity-settled share-based
payment transactions, an entity measures the
goods or services received
a. at the fair value of the goods and services
b. at the fair value of the equity instruments
c. at the fair value of the goods or services
received, unless that fair value cannot be
estimated reliably
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Quiz:
Share-based payment
24
Question 12: For equity-settled share-based
payment transactions with employees, the
fair value of the equity instruments is
measured:
a.
b.
c.
d.
at the grant date
at the exercise date
at the end of the vesting period
at the later of: (i) the end of the vesting
period; or (ii) the end of the exercise
period
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Quiz:
Share-based payment
25
Question 12: For equity-settled share-based
payment transactions with employees, the
fair value of the equity instruments is
measured:
a.
b.
c.
d.
at the grant date
at the exercise date
at the end of the vesting period
at the later of: (i) the end of the vesting
period; or (ii) the end of the exercise
period
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Quiz:
Share-based payment
26
Question 13: The measurement date for an
equity-settled share-based payment
transaction with a party that is not an
employee is:
a. grant date
b. exercise date
c. when the entity obtains the goods or
the counterparty renders service
d. when the warranty period for the
goods or services expires
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Quiz:
Share-based payment
27
Question 13: The measurement date for an
equity-settled share-based payment
transaction with a party that is not an
employee is:
a. grant date
b. exercise date
c. when the entity obtains the goods or
the counterparty renders service
d. when the warranty period for the
goods or services expires
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Quiz:
Share-based payment
28
Question 14: In estimating the number of
instruments expected to vest for an equitysettled share-based payment transaction:
a. no adjustments are made for non-market
performance conditions
b. adjustments are made for all vesting
conditions related solely to employee
service or to a non-market performance
condition
c. adjustments are made only when all vesting
conditions have been satisfied
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Quiz:
Share-based payment
29
Question 14: In estimating the number of
instruments expected to vest for an equitysettled share-based payment transaction:
a. no adjustments are made for non-market
performance conditions
b. adjustments are made for all vesting
conditions related solely to employee
service or to a non-market performance
condition
c. adjustments are made only when all vesting
conditions have been satisfied
© IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Quiz:
Share-based payment
Question 15: For cash-settled share-based
payment transactions, measure the goods or
services received and the liability:
a. at the fair value of the goods or services
b. at the fair value of the liability
c. at the fair value of the goods or services
received or the fair value of the liability
(accounting policy choice)
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30
Quiz:
Share-based payment
Question 15: For cash-settled share-based
payment transactions, measure the goods or
services received and the liability:
a. at the fair value of the goods or services
b. at the fair value of the liability
c. at the fair value of the goods or services
received or the fair value of the liability
(accounting policy choice)
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31
Quiz:
32
Share-based payment
Question 16: An entity granted 10 shares to
its employee. Grant date fair value = CU8.
No service condition or other vesting
conditions (ie vested at grant date).
a. Dr Expense CU80; Cr Equity CU80
b. Dr Expense CU80; Cr Liability CU80
c. No entries as there are no service or other
vesting conditions
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Quiz:
33
Share-based payment
Question 16: An entity granted 10 shares to
its employee. Grant date fair value = CU8.
No service condition or other vesting
conditions (ie vested at grant date).
a. Dr Expense CU80; Cr Equity CU80
b. Dr Expense CU80; Cr Liability CU80
c. No entries as there are no service or other
vesting conditions
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Quiz:
34
Share-based payment
Question 17: An entity granted 10 shares to its
employee. Grant date fair value = CU8.
Vests only if employee remains for 2 years.
Employee is expected to remain for +2 yrs.
The entity accounts for the transaction:
a.Year 1: Dr Expense CU40; Cr Equity CU40;
Year 2: Dr Expense CU40; Cr Equity CU40
b.Year 1: Dr Expense CU80; Cr Liability CU80
c.Year 2: Dr Expense CU80; Cr Liability CU80
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Quiz:
35
Share-based payment
Question 17: An entity granted 10 shares to its
employee. Grant date fair value = CU8.
Vests only if employee remains for 2 years.
Employee is expected to remain for +2 yrs.
The entity accounts for the transaction:
a.Year 1: Dr Expense CU40; Cr Equity CU40;
Year 2: Dr Expense CU40; Cr Equity CU40
b.Year 1: Dr Expense CU80; Cr Liability CU80
c.Year 2: Dr Expense CU80; Cr Liability CU80
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Quiz:
36
Share-based payment
Question 18: On 1/1/20X1 entity granted 10
cash-settled share appreciation rights
(SARs) to its employee.
Grant date fair value = CU10 per SAR.
31/12/20X1 fair value = CU12 per SAR.
31/12/20X2 settlement = CU150 (in total)
No service condition or other conditions (ie
vested at grant date).
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Quiz:
37
Share-based payment
Question 18: continued
The entity accounts for the transaction:
a. 1/1/20X1: Dr Expense CU100; Cr Liability CU100
31/12/20X1: Dr Expense CU20; Cr Liability CU20
31/12/20X2: Dr Expense CU30; Cr Liability CU30
b. 1/1/20X1: No entry
31/12/20X1: No entry
31/12/20X2: Dr Expense CU150; Cr Liability CU150
c. No entries in any year because the transaction
does not have commercial substance.
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Quiz:
38
Share-based payment
Question 18: continued
The entity accounts for the transaction:
a. 1/1/20X1: Dr Expense CU100; Cr Liability CU100
31/12/20X1: Dr Expense CU20; Cr Liability CU20
31/12/20X2: Dr Expense CU30; Cr Liability CU30
b. 1/1/20X1: No entry
31/12/20X1: No entry
31/12/20X2: Dr Expense CU150; Cr Liability CU150
c. No entries in any year because the transaction
does not have commercial substance.
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Questions or comments?
Expressions of individual views by
members of the IASB and its staff
are encouraged.
The views expressed in this
presentation are those of the
presenter.
Official positions of the IASB on
accounting matters are determined
only after extensive due process
and deliberation.
© IFRS
Foundation
30 Cannon Street
London EC4M
| UK. www.ifrs.org
© 2012
IFRS| Foundation
| 30 |Cannon
Street6XH
| London
EC4M 6XH | UK | www.ifrs.org
39
40
The requirements are set out in International Financial
Reporting Standards (IFRSs), as issued by the IASB at 1
January 2012 with an effective date after 1 January 2012
but not the IFRSs they will replace.
The IFRS Foundation, the authors, the presenters and the
publishers do not accept responsibility for loss caused to
any person who acts or refrains from acting in reliance on
the material in this PowerPoint presentation, whether such
loss is caused by negligence or otherwise.
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IFRS Foundation
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UK. www.ifrs.org
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IFRS Foundation
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