The document outlines the key principles of IFRS 5 regarding the classification, measurement, and disclosure of non-current assets held for sale and discontinued operations. Some of the main points covered include:
- Non-current assets are classified as held for sale if their carrying amount will be recovered through a sale rather than continued use and the sale is expected to occur within one year.
- Assets held for sale are measured at the lower of carrying amount or fair value less costs to sell and are not depreciated.
- Discontinued operations are presented in the statement of comprehensive income as a single amount comprising the post-tax profit or loss and gain/loss on sale.
- Assets and liabilities of
Objective of today’s session:
What is a Fixed Asset ?
Objective of Audit
Documents to be obtained from client
Process of verification
-Acquisitions
-Disposals
-Depreciation/Amortization
-Disclosure requirements
Major differences between old AS 10,AS 6 and New AS 10
CA Varun Sethi Ind AS 20 - Accounting for Government GrantsVarun Sethi
Presentation by CA Varun Sethi: Indian Financial Reporting:
IndAS 20*: Accounting for Government Grants (GG) and disclosure for government assistance
Presentation includes comparison of Ind AS 20 issued by ICAI, (converged with IAS 20 issued by IASB), with AS 12, with IAS 20, and with ICDS (Income computation and accounting standards) on Government Grants
Sectors Impacted:
1. Corporates who enjoy Export related interest rate subvention on bank loans (Eg. Sugar/ Rice industries)
2. Non profit sector,
3. Companies enjoying government investment subsidies (Central investment subsidy scheme etc)
Objective of today’s session:
What is a Fixed Asset ?
Objective of Audit
Documents to be obtained from client
Process of verification
-Acquisitions
-Disposals
-Depreciation/Amortization
-Disclosure requirements
Major differences between old AS 10,AS 6 and New AS 10
CA Varun Sethi Ind AS 20 - Accounting for Government GrantsVarun Sethi
Presentation by CA Varun Sethi: Indian Financial Reporting:
IndAS 20*: Accounting for Government Grants (GG) and disclosure for government assistance
Presentation includes comparison of Ind AS 20 issued by ICAI, (converged with IAS 20 issued by IASB), with AS 12, with IAS 20, and with ICDS (Income computation and accounting standards) on Government Grants
Sectors Impacted:
1. Corporates who enjoy Export related interest rate subvention on bank loans (Eg. Sugar/ Rice industries)
2. Non profit sector,
3. Companies enjoying government investment subsidies (Central investment subsidy scheme etc)
Consolidation– Intragroup Transactions
WORKSHOP
Corporate Reporting
La Trobe Business School
La Trobe Business School
Ch 26 & 27.
1
Topic intended learning outcomes
explain the need for making adjustments for intragroup transactions
prepare worksheet entries for intragroup sales of inventory
prepare worksheet entries for intragroup sales of property, plant and equipment
prepare worksheet entries for intragroup services
prepare worksheet entries for intragroup dividends
prepare worksheet entries for intragroup borrowings
La Trobe Business School
La Trobe Business School
Consolidated financial statements are statements of the group presented as a single economic entity.
These financial statements show only transactions with external parties.
Adjustments are required to eliminate the effects of intragroup transactions so that financial position and performance are not under or overstated in the consolidated statements.
The need for intragroup adjustments
La Trobe Business School
La Trobe Business School
LO1
3
Intragroup transactions - transactions that occur between entities in the group.
The purpose of consolidated financials is to provide information on the group as a result of its dealings with external parties.
AASB 10/IFRS 10 requires:
Intragroup balances, transactions, income and expenses to be eliminated in full.
Tax effect accounting to be applied where temporary differences arise due to the elimination of profits and losses.
The adjustment process
La Trobe Business School
La Trobe Business School
LO2
4
The broad effect of intragroup sales and purchases of inventory can be illustrated by reference to the diagram below:
Sells inventory for $10000 on 1 Jan 2013
Parent
Subsidiary
All inventory still held by the parent at 30 June 2013
Purchases inventory for $8000
Transfers of inventory
La Trobe Business School
La Trobe Business School
LO3
5
Sales of inventories in the current period:
current period accounts will be affected in the worksheet adjustment entries
from group perspective, no sale made to external parties
tax effect adjustment required.
Realisation of profits:
profit will only be recognised by the group when inventory has been sold to external parties.
Inventories
La Trobe Business School
La Trobe Business School
LO3
6
Sales of inventories in the prior period:
opening retained earnings contains profit relating to inventories on hand at beginning of period
the group would report sales to external parties and COS adjustments
zero effect on retained earnings (closing balance) so no consolidated adjustment to inventories in future periods required
tax effect of the adjustment is recorded.
Inventories
La Trobe Business School
La Trobe Business School
LO3
7
Realisation of profits for sales of inventories in the prior period:
group’s retained earnings (op bal) less than retained earnings of legal entities (unrealised profit in beginning inventories eliminated from prior period profits)
group’s current .
A comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans.
Most individuals work in conjunction with an investment or tax professional and use current net worth, tax liabilities, asset allocation, and future retirement and estate plans in developing the plan. These will be used along with estimates of asset growth to determine if a person's financial goals can be met in the future, or what steps need to be taken to ensure that they are.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
2. Overview
OBJECTIVE
SCOPE
CLASSIFICATION OF NON-CURRENT ASSETS (OR DISPOSAL GROUPS) AS HELD FOR
SALE OR AS HELD FOR DISTRIBUTION TO OWNERS
MEASUREMENT OF NON-CURRENT ASSETS (OR DISPOSAL GROUPS) CLASSIFIED AS
HELD FOR SALE
Recognition of impairment losses
PRESENTATION AND DISCLOSURE
Presenting discontinued operations
Presentation of a non-current asset or disposal group classified as held for sale
Additional disclosures
3. OBJECTIVE
.
The objective of this IFRS is to
specify the accounting for assets
held for sale, and the
presentation and disclosure of
discontinued operations.
4. SCOPE
For all IFRS 5 issues except for
(a) deferred tax assets (IAS 12 Income Taxes).
(b) assets arising from employee benefits (IAS 19 Employee Benefits).
(c) financial assets within the scope of IFRS 9 Financial Instruments
(d) non-current assets that are accounted for in accordance with the fair value
model in IAS 40 Investment Property.
(e) non-current assets that are measured at fair value less costs to sell in
accordance with IAS 41 Agriculture.
(f) contractual rights under insurance contracts as defined in IFRS 4 Insurance
Contracts.
5. CLASSIFICATION OF NON-CURRENT ASSETS (OR DISPOSAL
GROUPS) AS
HELD FOR SALE OR AS HELD FOR DISTRIBUTION TO OWNERS
An entity shall classify a non
current asset (or disposal
group) as held for sale if its
carrying amount will be
recovered principally through a
sale transaction rather than
through continuing use.
•.
•.
•.
•.
6. Continued
. Asset can
only be
classified
as ‘’Held
for sale’’
the asset (or disposal group) must be available for immediate sale in its
present condition.
an active program to locate a buyer and complete the plan must have
been initiated
the sale should be expected to qualify For recognition as a completed
sale within one year from the date of classification
The management must be committed to a plan to sell the asset (or
disposal group),
the asset (or disposal group) must be actively marketed for sale at a
price that is reasonable in relation to its current fair value
it is unlikely that significant changes to the plan will be made or that the
plan will be withdrawn
7. Continued
If the criteria are met after the reporting period, an entity shall not
classify a non current asset (or disposal group) as held for sale.
However, when those criteria are met after the reporting period but
before the authorization of the financial statements for issue, the
entity shall disclose the information in the notes
9. Continued
.
Non-current asset
held for sale should
not be depreciated,
even if they are still
being used
A non-current asset
(or disposal group)
that is no longer
classified as held for
sale is measured at a
lower of its carrying
amount and
recoverable amount
12. PRESENTATION AND DISCLOSURE
Presenting discontinued operations
We shall disclose:
(a) a single amount in the statement of comprehensive income comprising the
total of:
(i) the post-tax profit or loss of discontinued operations and
(ii) the post-tax gain or loss recognized on the measurement to fair value less
costs to sell
13. Continued
(a) an analysis of the single amount in into:
(b) the net cash flows attributable to the operating, investing and
financing activities of discontinued operations.
(c) the amount of income from continuing operations and from
discontinued operations attributable to owners of the parent
the revenue, expenses and pre-tax profit or loss of discontinued operations;
the related income tax expense
the gain or loss recognized on the measurement to fair value less costs to sell
and
the related income tax expense
14. Continued
Presentation of a non-current asset or disposal group
classified as held for sale
We shall present a non-current asset classified as held for sale
and the assets of a disposal group classified as held for sale
separately from other assets in the statement of financial position.
15. Continued
The liabilities of a disposal group classified as held for sale shall be
presented separately from other liabilities in the statement of
financial position.
Those assets and liabilities shall not be offset and presented as a
single amount.
16. Continued
Additional disclosures
(a) a description of the non-current asset (or disposal group);
(b) a description of the facts and circumstances of the sale, or
leading to the expected disposal, and the expected manner and
timing of that disposal;
17. Continued
(c) the gain or loss recognized
(d) if applicable, the reportable segment in which the non-current
asset (or disposal group) is presented in accordance with IFRS 8
Operating Segments.
20. Case Study 1
Facts
ethio telecom is committed to a plan to sell a building and has
started looking for a buyer for that building. ethio telecom will
continue to use the building until another building is completed to
house the office staff located in the building. There is no intention
to relocate the office staff until the new building is completed.
Required
Would the building be classified as held for sale?
21. Case Study 2
Facts
ethio telecom is planning to sell part of its business that is
deemed to be a disposal group. The entity is in a business
environment that is heavily regulated, and any sale requires
government approval. This means that the sale time is
difficult to determine. Government approval cannot be
obtained until a buyer is found and known for the disposal
group and a firm purchase contract has been signed.
However, it is likely that the entity will be able to sell the
disposal group within one year.
Required
Would the disposal group be classified as held for sale?
22. Case Study 3
Facts
ethio telecom has an asset that has been designated as held
for sale in the financial year to December 31, 2015. During
the financial year to December 31, 2016, the asset still
remains unsold, but the market conditions for the asset have
deteriorated significantly. The entity believes that market
conditions will improve and has not reduced the price of the
asset, which continues to be classified as held for sale. The
fair value of the asset is 5 million, and the asset is being
marketed at 7 million.
Required
Should the asset be classified as held for sale in the financial
statements for the year ending December 31, 2016?
23. Case Study 4
Facts
ethio telecom entity is reorganizing its business activities. In
one location, it is stopping the usage of certain equipment
because the demand for the product produced by that
equipment has reduced significantly. The equipment is to be
maintained in good working order, and it is expected that it will
be brought back into use if the demand increases. Additionally,
ethio telecom intends to close three out of five network units.
The network units constitute a major activity of the entity. All the
work within the three units will end during the current year, and
as of the year-end all work will have ceased.
Required
How will the piece of equipment and the closure of the network
units be treated in the financial statement in the current year
Editor's Notes
Format like IAS 2
Some exception need to included.(corrected)
Para 15 (a) better to include (This is out of ethio telecom scope. But can be discussed during the training session)
. Better to include impairment reversal.
.
. Better to include impairment reversal.(corrected)
.