International Financial Reporting Standards

Hennie Van Greuning

Description

Applying International Financial Reporting Standards (IFRS) in a business situation can have a signficant effect on the financial results and position of a division or an entire business enterprise. 'International Financial Reporting Standards: A Practical Guide' gives private or public sector executives, managers, and financial analysts without a strong background in accounting the tools they need to participate in discussions and decisions on the appropriateness or application of IFRS.
Each chapter summarizes an International Financial Reporting Standard, following a consistent structure:
▪ Objective of the Standard
▪ Scope of the Standard
▪ Key concepts
▪ Accounting treatment
▪ Presentation and disclosure
▪ Financial analysis and interpretation
Many chapters of the book also contain examples that illustrate the practical application of key concepts in a particular standard. The publication includes all of the standards issued by the International Accounting Standards Board (IASB) through December 2008.

Sujets

• Finance
• IFRS
• International Financial Reporting Standards
• Private sector development

Informations

• Publié par: world-bank-publications
• Publié le: 03 avril 2009
• Nombre de lectures: 48
• EAN13: 9780821378991
• Langue: English

Extrait

HENNIE VAN GREUNING
INTERNATIONAL
FINANCIAL
REPORTING STANDARDS
A PRACTICAL GUIDE
FIFTH EDITIONInternational Financial
Reporting Standards
A Practical Guide
Fifth Edition
Hennie van Greuning
Washington, D.C.© 2009 International Bank for Reconstruction and Development and the World Bank
1818 H Street, NW Washington, DC 20433
Telephone: [phone]
Internet: www.worldbank.org
E-mail: [e-mail]
All rights reserved.
1 2 3 4 5 13 12 11 10 09
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necessarily ref ect the views of the Board of Executive Directors of the World Bank or the governments
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ISBN: 978-0-8213-7727-7
eISBN: 978-0-8213-7899-1
DOI: 10.1596/978-0-8213-7727-7
Library of Congress Cataloging-in-Publication Data has been requested.Contents
PART & STANDARD
CHAPTER NUMBER TITLE PAGE
Foreword v
Acknowledgments vi
Introduction vii
About the Author ix
PART I FINANCIAL STATEMENT PRESENTATION
1 Framework Framework for the Preparation and Presentation of Financial Statements 2
2 IFRS 1 First-Time Adoption of IFRS 12
3 IAS 1 Presentation of Financial Statements 16
4 IAS 7 Cash Flow Statements 34
5 IAS 8 Accounting Policies, Changes in Accounting Estimates, and Errors 46
PART II GROUP STATEMENTS
6 IFRS 3 Business Combinations 56
7 IAS 27 Consolidated and Separate Financial Statements 68
8 IAS 28 Investments in Associates 76
9 IAS 31 Interests in Joint Ventures 82
PART III STATEMENT OF FINANCIAL POSITION / BALANCE SHEET
10 IAS 16 Property, Plant, and Equipment 92
11 IAS 40 Investment Property 106
12 IAS 41 Agriculture 112
13 IAS 38 Intangible Assets 120
14 IAS 17 Leases 126
15 IAS 12 Income Taxes 140
16 IAS 2 Inventories 150
17 IAS 39 Financial Instruments: Recognition and Measurement 160
18 IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations 176
19 IFRS 6 Exploration for and Evaluation of Mineral Resources 182
20 IAS 37 Provisions, Contingent Liabilities, and Contingent Assets 188
21 IAS 21 The Effects of Changes in Foreign Exchange Rates 194
PART IV STATEMENT OF COMPREHENSIVE INCOME / INCOME STATEMENT
22 IAS 18 Revenue 204
23 IAS 11 Construction Contracts 212
24 IAS 19 Employee Benefi ts 222
25 IAS 36 Impairment of Assets 232
26 IAS 23 Borrowing Costs 240
27 IAS 20 Accounting for Government Grants and Disclosure of Government Assistance 248
28 IFRS 2 Share-Based Payment 254
29 IAS 10 Events After the Balance Sheet Date 264
■A Practical Guide Contents iiiPART & STANDARD
CHAPTER NUMBER TITLE PAGE
PART V DISCLOSURE
30 IAS 24 Related-Party Disclosures 270
31 IAS 33 Earnings per Share 276
32 IAS 32 Financial Instruments: Presentation 284
33 IFRS 7 Financial Instruments: Disclosures 288
34 IFRS 8 Operating Segments 306
35 IAS 34 Interim Financial Reporting 312
36 IAS 26 Accounting and Reporting by Retirement Benefi t Plans 318
37 IFRS 4 Insurance Contracts 324
38 IAS 29 Financial Reporting in Hyperinfl ationary Economies 330
■iv International Financial Reporting Standards ContentsForeword
T e publication of this f f h edition coincides with the convergence in accounting standards
that has been a feature of the international landscape since the global f nancial crisis of 1998.
T e events of that year prompted several international organizations, including the World Bank
and the International Monetary Fund, to launch a cooperative initiative to strengthen the global
f nancial architecture and to seek a longer-term solution to the lack of transparency in f nancial
information. International convergence in accounting standards under the leadership of the In-
ternational Accounting Standards Board (IASB) and the Financial Accounting Standards Board
(FASB) in the United States has now progressed to the point where more than 100 countries
currently subscribe to the International Financial Reporting Standards (IFRS).
In the U.S., the August 2008 announcement that the SEC proposes that IFRS reporting be-
gin with 2014 f lings, subject to certain interim milestones being met, will no doubt accelerate
convergence. T e AICPA response was positive in stating that one set of master standards will
ultimately lead to investment comparisons on a worldwide basis as well as enable cross border
transactions to be more transparent and reliable. From December 2009 onwards one can there-
fore expect limited early use by entities in the U.S. By 2011 the SEC will determine whether to
require mandatory adoption of IFRS for all U.S. issuers by 2014.
T e rush toward convergence continues to produce a steady stream of revisions to accounting
standards by both the IASB and FASB. For accountants, f nancial an alysts, and other special-
ists, there is already a burgeoning technical literature explaining in detail the background and
intended application of these revisions. T is book provides a non-technical, yet comprehensive,
managerial overview of the underlying materials.
T e appearance of the f f h edition of this book—already translated into 15 languages in its ear-
lier editions—is therefore timely.
Each chapter brief y summarizes and explains a new or revised IFRS, the issue or issues the
standard addresses, the key underlying concepts, the appropriate accounting treatment, and the
associated requirements for presentation and disclosure. T e text also covers f nancial analysis
and interpretation issues to bet er demonstrate the potential ef ect of the accounting standards
on business decisions. Simple examples in most chapters help further clarify the material. It is
our hope that this approach, in addition to providing a handy reference for practitioners, will
help relieve some of the tension experienced by nonspecialists when faced with business deci-
sions inf uenced by the new rules. T e book should also assist national regulators in comparing
IFRS to country-specif c practices, thereby encouraging even wider local adoption of these al-
ready broadly accepted international standards. It also forms the basis of a securities accounting
workshop of ered several times each year to World Bank Treasury clients in central banks and
other public sector funds.
Kenneth G. Lay, CFA
Tre a s u re r
T e World Bank
Washington, D.C.
January 2009
■A Practical Guide Foreword vAcknowledgments
T e author is grateful to Ken Lay, vice president and treasurer of the World Bank, who has sup-
ported this f f h edition as a means to assist our client countries with a publication to facilitate
understanding the International Financial Reporting Standards (IFRS) and emphasize the im-
portance of f nancial analysis and interpretation of the information produced through applica-
tion of these standards.
Charles Hat ingh of PC Finance Research (South Africa) has provided invaluable insights into
the complexities and implementation problems of IFRS.
®T e Stalla Review for the CFA exam made a signif cant contribution to a previous edition by
providing copyright permission to adapt material and practice problems from its textbooks and
questions database.
I am grateful to the International Accounting Standards Commit ee Foundation for the use of
its examples in chapter 12 (IAS 41–Agriculture). In essence, this entire publication is a tribute
to the output of the International Accounting Standards Board. Deloit e Touche Tohmatsu also
allowed the use of two examples from its publications.
Colleagues in the World Bank Treasury shared their insights into the complexities of applying
certain standards to the treasury environment. I benef ted greatly from hours of conversation
with many colleagues, including Hamish Flet and Richard Williams.
Despite the extent and quality of the inputs that I have received, I am solely responsible for the
contents of this publication.
Hennie van Greuning
January 2009
THE WORLD BANK TREASURY
Washington, D.C.
■vi International Financial Reporting Standards AcknowledgmentsIntroduction
T is text, based on four earlier ed