Measuring and presenting subsidiaries acquired with a view to sale and classified as held for sale Entity A acquires an entity H, which is a holding company with two subsidiaries, S1 and S2. S2 is acquired exclusively with a view to sale and meets the criteria to be classified as held for sale. Accordingly, S2 is also a discontinued operation .The fair value less costs […]

Items measured on a cost basis Entity A applies the business combination exemption under IFRS 1. In a business combination Entity A acquired property, plant and equipment, inventory and accounts receivable. Under its previous GAAP, Entity A initially measured these assets at cost (i.e. their fair value at the date of acquisition). Upon adoption of IFRSs, Entity A determines that its accounting policy for these […]

Allocation of impairment loss to the components of a disposal group [IFRS 5.IG10] An entity plans to dispose of a group of its assets (as an asset sale). The assets form a disposal group, and are measured as follows: Carrying amount at Carrying amount as the reporting date remeasured immediately  before classification before classification as  as held for sale held for sale Goodwill 1,500 1,500 […]

Items not measured at original cost Entity A acquired in a business combination a trading portfolio of equity securities and a number of investment properties. Under its previous GAAP, Entity A initially measured these assets at cost (i.e. their fair value at the date of acquisition). Upon adoption of IFRSs, Entity A measures the trading portfolio of equity securities and the investment properties (under the […]

First IFRS financial statements outside the annual report or statutory financial statements Entity E prepared financial statements under its previous GAAP for the period ending 31 December 2011. In connection with its initial public offering, Entity E published an offering document that includes IFRS financial statements that contain an unreserved statement of compliance with IFRSs. The date of transition to IFRSs for the purposes of […]

Repeated application of IFRS 1 when an entity does not apply IFRSs for one year Entity D prepared IFRS financial statements for 2010 and 2011 that contained an explicit and unreserved statement of compliance with IFRSs. However, in 2012 Entity D did not make an unreserved statement of compliance with IFRSs. Entity D may choose to apply IFRS as a first-time adopter or it may […]

Infosys Technologies Limited (2009) 2 Notes to the consolidated financial statements [extract] 2.1 Transition to IFRS reporting [extract] The financial statements of Infosys Technologies Limited and its subsidiaries have been prepared in accordance with IFRS. Infosys Technologies Limited and its subsidiaries adopted all IFRS standards and the adoption was carried out in accordance to IFRS 1, using April 1, 2007 as the transition date. The […]

Application of IFRS 1 to estimates Entity A”s first IFRS financial statements have a reporting date of 31 December 2013 and include comparative information for one year. In its previous GAAP financial statements for 31 December 2012, Entity A accounted for its pension plan on a cash basis. However, under IAS 19 the plan is classified as a defined benefit plan and actuarial estimates are […]

Pre-transition cash flow hedges Case 1: All hedge accounting conditions met from date of transition and thereafter In 2004 Entity A borrowed €10m from a bank. The terms of the loan provide that a coupon of 3 month LIBOR plus 2% is payable quarterly in arrears and the principal is repayable in 2019. In 2007, Entity A decided to ‘fix its coupon payments for the […]

The following was the balance sheet of L&M as on 31 December 2010: Liabilities Assets Bills Payable 1,00,000 Cash and Bank 60,000 Sundry Creditors 2,75,000 Bills Receivable 60,000 Capital Accounts: Sundry Debtors 3,00,000 L 7,00,000 Stock-in-Trade 3,30,000 M 3,00.000 10,00,000 Furniture 40,000 Plant & Machinery 2,35,000 Land & Building 3,50,000 13,75,000 13,75,000 On 1 January 2011, the above business was purchased by Gopal Ltd. for […]