Overriding principle – continuation of Example 2(d) The situation is the same as in Example 2(d). However, E believes that the application of IAS 1.74 and the resulting classification of the liability as current would not lead to a fair presentation of its financial statements and would be so misleading that it would conflict with the objective of financial statements set out in the Conceptual […]

Going concern (a) On Dec 31, 01, it is intended to liquidate entity in A in 18 months. Nevertheless, A intends to prepare its financial statements on a going concern basis because IAS 1.26 mentions a period of 12 months from the end of the reporting period as a reference point. (b) With regard to entity B”s financial statements as at Dec 31, 01, there […]

Presentation of a deferred tax liability in the statement of financial position On Dec 31, 01, entity E recognizes a provision relating to a lawsuit. The carrying amount of the provision is CU 26 according to IFRS and CU 34 for tax purposes. According to IAS 12, E also recognizes a deferred tax liability in the amount of CU 2 relating to the provision (= […]

Statement of comprehensive income and statement of changes in equity – equity instruments measured at fair value through other comprehensive income according to IFRS 9 On Jan 01, 01, entity E acquires shares for CU 10 and elects irrevocably to present changes in their fair value in other comprehensive income (IFRS 9.5.7.1b and 9.5.7.5). On Dec 31, 01, fair value of these shares is CU […]

Statement of comprehensive income and statement of changes in equity – revaluation of property, plant, and equipment On Jan 01, 01, entity E acquires land for CU 10 which is held as property, plant, and equipment. On Dec 31, 01, the fair value of the land is CU 14. E sells the land on Aug 10, 02 for CU 14. Required Complete the same exercises […]

Costs of purchase – financing element Entity E purchases merchandise on Nov 01, 01. Delivery takes place on the same day. In the case of (normal) deferred settlement terms of one month, the purchase price would be CU 200. However, E and its supplier stipulate that payment has to be made on Nov 30, 02, but at an amount of CU 212 (CU 200 plus […]

Measurement of merchandise On Dec 31, 01, entity E owns 100 units of merchandise M. The purchase took place on Oct 15, 01. Settlement in cash and delivery took place on the same date. The costs of purchase were CU 1 per unit. On Dec 31, 01, the net realizable value amounts to CU 0.9 per unit. On Jul 10, 02, 90 units of M […]

Daimler AG (2011) Notes to the Consolidated Financial Statements [extract] 32. Segment reporting [extract] Reportable segments. The reportable segments of the Group are Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. The segments are largely organized and managed separately according to nature of products and services provided, brands, distribution channels and profile of customers. The vehicle segments develop and manufacture passenger […]

Daimler AG (2011) Notes to the Consolidated Financial Statements [extract] 32. Segment reporting [extract] Management reporting and controlling systems. The Group”s management reporting and controlling systems principally use accounting policies that are the same as those described in Note 1 in the summary of significant accounting policies under IFRS. The Group measures the performance of its operating segments through a measure of segment profit or […]

Roche Holding Limited (2008) Notes to the Roche Group Consolidated Financial Statements [extract] 1. Summary of significant accounting policies [extract] Segment reporting Within the Group”s consolidated financial statements, transactions and balances between consolidated subsidiaries, such as between Genentech, Chugai and other Roche Group subsidiaries, are eliminated on consolidation. Genentech and Chugai are considered separately reportable operating segments for the purposes of the Group”s operating segment […]