This publication explains IFRS 5's key implementation issues, common approaches to practical application and also includes several examples illustrating the Standard's disclosure and presentation requirements. The ineffectiveness recognised in P/L is based on comparing the actual hedging instrument with hypothetical derivative (IFRS 9.B6.5.5). A discontinued operation is a component of an entity that (IFRS 5.32): has been disposed of, or is classified as held for sale, represents a separate major line of business or geographical area of operations, is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or IFRS 15 Thematic (September 2020) Financial Reporting Council 2 Page 1. Click to Download. GTIL and the member firms are not a worldwide partnership. Examples of better disclosure… IFRS 16 Thematic Review (September 2020) Executive summary Descriptions of judgements made by management in the application of the company’s accounting policy were absent or inadequate. IFRS 5 makes it clear that itesms should only be classified as held for sale once they have met all the criteria as set out in IFRS 5.07-5.11: Asset (or disposal group) must be available for immediate sale in its current condition, subject only to terms that are usual and customary for sale of such assets AND its sale must be highly probable. EY Asia Pacific IFRS Leader. IFRS 5 sets out criteria for the sale to be highly probable: Immediately before the asset is classified as held for sale, it should be measured under its applicable IFRS. IFRS 5: Non-current assets held-for-sale and discontinued operations G. Holt, Accounting and Business, Vol. The entity will continue to use the building until another building has been found with equivalent facilities, and in a suitable location for the office staff, who will not be relocated until the new building has been found. The same applies for liabilities of a disposal group classified as held for sale. Let’s take a closer look to the main IFRS 5 rules. Scope and sample 4 3. Leo van der Tas. Represents a separate major line of business or geographical area of operations. IFRS 5 specifies the accounting for assets held for sale and the presentation and disclosure of discontinued operations. These illustrative IFRS financial statements are intended to be used as a source of general technical reference, as they show suggested disclosures together with their sources. These illustrative IFRS financial statements are intended to be used as a source of general technical reference, as they show suggested disclosures together with their sources. At the next reporting date, 31 December 2013, the FVL CS is . Illustrative disclosure. Disposal of subsidiaries, businesses and non-current assets – IFRS 5 44 Equity accounting – IAS 28 45 Joint arrangements – IFRS 11 46 Other subjects 47 Related-party disclosures – IAS 24 48 . Inline XBRL; ZIP; Example 6: First-time adoption of IFRSs, reconciliation of equity and total comprehensive income. Is a subsidiary acquired solely with a view to resale. Non-current assets classified as held for sale must be disclosed separately from other assets in the statement of financial position. Link copied The team. Shs2 50,000. Guidelines on Preventative Measures Against... SEC Memorandum Circular 2018-14 – PFRS 15 Implementation Issues Affecting Real Estate Industry. reassessed at Shs265,000. These are illustrative IFRS financial statements of a listed company, prepared in accordance with International Financial Reporting Standards. IFRS Taxonomy 2017 – Illustrative examples. Our IFRS content collection includes blogs, publications, podcasts, videos and monthly IFRS news. Subsequently, after it has been classified as held for sale it must be measured at the lower of its carrying amount or fair value less costs to sell. IFRS e-learning (Deloitte) ... Review: This course gives a very good overview and fairly comprehensive examples of IFRS and GAAP to IFRS differences. Management must be committed to a plan to sell the asset; An active program to find a buyer must be initiated; The asset must be actively marketed for sale at a price that is reasonable to its current fair value; The sale must be completed within one year from the date of classification; Significant changes to be made to the plan must be unlikely. IFRS 5 summary with disclosure examples pdf is available. No responsibility for any errors or omissions nor loss occasioned to any person or organisation acting or refraining from acting as a result of any material in this website can, however, be accepted by the author(s) or RSM International. Welcome to EY.com. IFRS 5 will not apply to a non-current asset that is going to be abandoned, as the carrying amount of an abandoned asset will be recovered through future use. Hedge ratio of the hedging relationship. Assets or disposal groups acquired exclusively with a view to resale Key findings • Timing of revenue recognition 5 • Variable consideration 9 • Revenue disaggregation 12 • Contract balances 13 • Significant judgements 14 • Costs to obtain or fulfil a contract 16 4. Each member of the RSM network is an independent accounting and advisory firm each of which practices in its own right. Sort by . Deferral of IFRIC Agenda Decision on Over Time Transfer of Constructed Goods (PAS 23) for Real Estate Industry, Implementation of IFRS 17, Insurance Contracts, Amendments to Regulations on Financial Audit of Banks and Non-Bank Financial Institutions, SEC Memorandum Circular No. 32 series of 2020, SEC Memorandum Circular No. © 2020 Punongbayan & Araullo - All rights reserved. It specifies the accounting treatment for assets (or disposal groups) held for sale, and 2. IFRS 5 came into effect on 1 January 2005. Identification of contract. IFRS 5 Non-current Assets held for Sale and Discontinued Operations Accounting summary 2017 - 04 1 Objective The objective of this IFRS is to specify the accounting for assets held for sale, and the presentation and disclosure of discontinued operations. For example, judgements made about the lease term or scope of the standard. In the statement of profit and loss and other comprehensive income: a single amount comprising the total of: The analysis of the single amount can be presented in the notes or on the face of the statement of profit or loss and other comprehensive income. ; IFRS 5 Non-current assets held for sale and Discontinued operations contains rules which impact the measurement and presentation of such assets i.e. IFRS 5 focuses on two main areas: 1. When a company makes the decision to sell an asset or to stop some part of its business, it is making a decision that affects the future cash flows, profitability and overall financial situation. COVID-19 supplement (PDF 2.5 MB) IFRS 12 supplement (PDF 1.2 KB) IFRS 15 supplement (PDF 1.5 MB) IFRS 16 supplement (PDF 1.8 MB) Annual Disclosure checklists: 2020 edition (PDF 2.5 MB) 2019 edition (PDF 2.6 MB) 2018 edition (PDF 1.9 MB) Interim Illustrative disclosures: 2020 edition (PDF 2.5 MB) 2019 edition (PDF 2 MB) 2018 edition (PDF 2 MB) IFRS 5 a été homologuée antérieurement par le règlement CE n° 2236/2004 du 29 décembre 2004. IFRS 5 PDF. You should take specific independent advice before making any business or investment decision. IFRS 5 focuses on 2 main areas: It specifies the accounting treatment for assets (or disposal groups) held for sale, and; It sets the presentation and disclosure requirements for discontinued operations. Non-current assets held for sale. © 2020 RSM International Association. Examples from IAS 12 (Example 2 - Illustrative disclosure) representing some of the disclosures required by IAS 12 for income taxes using block and detailed XBRL tagging. If a non-current asset is 'held for sale', the economic benefit of that asset is obtained through the asset's sale rather than through its continuous use in the business (future economic benefit). Tags: acca, acca study text, CFA STUDY TEXT, CIMA STUDY TEXT, gaap, ICAI STUDY TEXT, ICAP STUDY TEXT, ifrs, IFRS STANDARDS. 5 6 7. These are illustrative IFRS financial statements of a listed company, prepared in accordance with International Financial Reporting Standards. 4.5 IFRS 5 Non-current Assets Held for Sale and Discontinued Operations; 4.5 IFRS 5 Non-current Assets Held for Sale and Discontinued Operations . This guide, in addition to providing detailed summaries and explanations of the requirements of IFRS 5, includes supplementary guidance and examples based on Deloitte's experience with the Standard. Shortly before starting the IFRS Certificate Program, I spent several months working on GAAP to IFRS issues for the first time in my career. IFRS IN PRACTICE 2016 fi IFRS 9 FINANCIAL INSTRUMENTS 5 1. Examples of circumstances in which these adjustments may arise include the following: (a) ... applied IFRS 5, subject to the transitional provisions in paragraph 45 of IAS 27 (amended May 2008). This is probably the longest article I have ever published (about 5 000 words and it took me about 30 hours to write it), but you don’t have to read it all, although I do recommend it as you will find a lot of analogy for your own situation. Whether serving public sector organisations, owner managed businesses, private individuals or listed companies with overseas operations, our goal is to help our clients achieve their ambitions. These examples represent how some of the disclosures required by IFRS 8 for operating segments (in IG2, IG3, IG4, IG5 and IG6) might be tagged using both block tagging and detailed tagging. The standard was published in March 2004 and is effective from 1 January 2005. 28 series of 2020, IASB issues Interest Rate Benchmark Reform Phase 2, IFRIC 23 - Uncertainty Over Income Tax Treatments, Extension of Deadlines and Interim Procedures for the Submission of Printed/Hard Copies of Annual Reports, IASB Defers the Effective Date of IAS 1 Amendments, Guidelines on the Electronic Submission of the Annual Report and Audited Financial Statements to BSP, Filing of Annual Reports During the Temporary Closure of the SEC Main Office until July 26, 2020, Work Suspension at the SEC Main Office and Extension of Deadlines for Certain Corporations, Adjustment of Deadlines for Submission of Annual Reports to the SEC and Other Announcements, Filing of Reports and Other Documents in SEC Main Office during Temporary Closure, Options for the Submission of Reports, Applications and Other Documents to the SEC During Community Quarantine, COVID-19 Accounting Considerations for CFOs: Revenue Recognition, COVID-19 Accounting Considerations for CFOs: Government Grants, IASB Amends IFRS 16 to Provide Relief for Lessees Accounting for Rent Concessions during the COVID-19 Pandemic, COVID-19 Accounting for Lease Modifications, SEC Notice on the Opening of SEC Express System and SEC Express Nationwide Submission, Insurance Commission Circular Letters: Regulatory Reliefs, Online Submission of Reports, and Deferral of IFRS 17 Implementation, COVID-19 Accounting Implications for CFOs: Impairment of Intangible Assets and Goodwill, IASB Issues Narrow Scope Amendments to IFRS Standards, Procedures in the Filing of Audited Financial Statements and General Information Sheet after the Enhanced Community Quarantine, Extension of Deadline for the Submission of 2020 Annual and Quarterly Reports and AFS of Companies with Fiscal Year Ended January 31 to April 30, 2020, Understanding the Impact of COVID-19 on 2020 Deferred Tax Provisions, IASB Proposes Relief for Rent Concessions During the COVID-19 Pandemic, Extension of Period to File the General or Special Form for Financial Statements and Guidelines on Submission by Electronic Mail, Treatment of Net Unrealized Losses in the EFCDU/FCDU Book for Purposes of Determining Compliance with the EFCDU/FCDU Asset Cover Requirement, Guidelines on Reclassification of Debt Securities Measured at Fair Value to the Amortized Cost Category for Prudential Reporting to the BSP, Reporting the Impact of COVID-19 to your Business, Guidelines on Filing SEC Form 17-LC and 17-C Report, COVID-19: Financial Reporting and Disclosures, COVID-19 Outbreak: Accounting Implications, Guidelines for Filing of Reports through Electronic Mail with the SEC during ECQ Period, Application of IFRS 9 in Light of the Coronavirus Uncertainty, [UPDATE] Regulatory Relief for Entities Regulated by the Insurance Commission, Guidelines on Submission by Electronic Mail of Required Forms and Documents and Recognition of Electronic Signature, Guidelines for the Filing of General Information Sheet (GIS) During the COVID-19 Outbreak and Enhanced Community Quarantine, Additional Operational Relief for BSFIs Affected by Measures to Manage the Coronavirus Disease (COVID-19) Situation and its Health and Safety Risks, Alternative Means of Filing Reports, Communications and Other Documents with the SEC, SEC Relaxes the Requirements for Extension in the Filing of Annual Reports and/or Audited Financial Statements, Guidelines Covering the Conduct of Business in the Insurance Commission During the Community Quarantine Period, SEC Issues Guidelines on the Participation in Regular and Special Meetings through Remote Means of Communication, SEC Extends Deadline for Annual and Quarterly Reports for Companies affected by Covid-19. 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