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International Financial Reporting Standards Pocket guide – 2010

International Financial Reporting Standards Pocket guide – 2010

This pocket guide provides a summary of the recognition and measurement requirements of International Financial Reporting Standards (IFRS) issued up to August 2010. It does not address in detail the disclosure requirements; these can be found in the PwCpublication IFRS disclosure checklist. The information in this guide is arranged in six sections: • • • • • • Accounting rules and principles Income statement and related notes Balance sheet and related notes Consolidated and separate financial statements Other subjects Industry-specific topics

More detailed guidance and information on these topics can be found in the IFRS Manual of Accounting 2010and other PwC publications. A list of PwC’s IFRS publications is provided on the inside front and back covers.

Contents
Accounting rules and principles 1. 2. 3. 4. 5. 6. 7. 8. Introduction Accounting principles and applicability of IFRS First-time adoption Presentation of financial statements Accounting policies, accounting estimates and errors Financial instruments Foreigncurrencies Insurance contracts 1 1 2 3 5 9 11 21 23 24 24 27 28 31 33 35 36 36 38 40 41 43 44 45 48 49

Income statement and related notes 9. 10. 11. 12. 13. 14. Revenue Segment reporting Employee benefits Share-based payment Taxation Earnings per share

Balance sheet and related notes 15. 16. 17. 18. 19. 20. 21. 22. 23. Intangible assets Property, plant and equipmentInvestment property Impairment of assets Leases Inventories Provisions and contingences Events after the reporting period and financial commitments Equity (share capital and reserves)

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IFRS pocket guide 2010

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Contents
Consolidated and separate financial statements 24. 25. 26. 27. 28. Consolidated and separate financial statements Businesscombinations Disposals of subsidiaries, business and non-current assets Associates Joint ventures 51 51 53 56 58 59 60 60 62 63 65 66 66 67 68 70

Other subjects 29. 30. 31. 32. Related-party disclosures Cash flow statements Interim reports Service concession arrangements

Industry-specific topics 33. Agriculture 34. Retirement benefit plans 35. Extractive industries Index bystandards and interpretation

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IFRS pocket guide 2010

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IFRS pocket guide 2009

Accounting rules and principles

Accounting rules and principles
1 Introduction

There have been major changes in financial reporting in recent years. Most obvious is the continuing adoption of IFRS worldwide. Many territories have been using IFRS for some years, and more areplanning to come on stream from 2011. The next wave of transitioning countries includes Korea, India, Japan, much of South and Central America and Canada. The key country in this regard is the US. The decision about adoption of IFRS in the US is still to be taken. Despite this, a likely adoption date is now more often quoted as 2016 rather than 2014. Convergence between IFRS and US GAAPcontinues in the meantime. An important recent development is the extent to which IFRS is affected by politics. The credit crunch, the problems in the banking sector and the attempts of politicians to resolve these questions have resulted in pressure on standard setters to amend their standards, primarily those on financial instruments. This pressure is unlikely to disappear, at least in the shortterm. The IASB is working hard to respond to this; we can therefore expect a continuous stream of changes to the standards in the next few months and years.

PricewaterhouseCoopers

IFRS pocket guide 2010

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Accounting rules and principles

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Accounting principles and applicability of IFRS

The IASB has the authority to set IFRS and to approve interpretations of those standards....