Small and Medium-sized Entities (SMEs)

SMEs are entities that

a. publish general purpose financial statements for
external users, and
b. do not have public accountability.
Publicly Accountable Entities
An entity has public accountability if:
Its debt or equity instruments are traded in a public market, or
It holds assets in a fiduciary capacity for a broad group of
outsiders.

The Need for a Separate Standard for SMEs
Differences in the types and needs of users of SMEs
financial statements
Significant cost of applying full IFRS
Basic Features of IFRS for SMEs
IFRS for SMEs is a stand-alone document
IFRS for SMEs is developed from full IFRS
It is a simplification of full IFRS
Simplifications made to IFRS
Omission of some topics in IFRS
Exclusion of some accounting policy options in full IFRS
Simplification of the recognition and measurement
principles
Simplification of the required disclosures


Omitted Topics
Earning per share
Interim financial reporting
Segment reporting
Special accounting for assets held for sale
Borrowing Costs
Section 25 IAS 23
All borrowing costs are
recognized as expense when
incurred
Borrowing costs incurred in
connection with the
construction or production of
a qualifying asset are
capitalized as part of the cost
of the asset
Employee Benefits
Section 28 IAS 19
All past service costs are
recognized immediately in profit
or loss.
Actuarial gains or losses are
recognized immediately in
either profit or loss or other
comprehensive income.
Projected unit credit method is
used to measure defined benefit
obligation and the related
expense only if it is possible to
do so without undue cost or
effort.
Unvested past service costs are
amortized on a straight-line
basis over the vesting period.
Actuarial gains or losses may be
Deferred and amortized
using corridor approach; or
Recognized immediately in
either profit or loss or other
comprehensive income
Projected unit credit method is
required

Investment in Associates
Section 14 IAS 28
Investment in associates shall be
accounted for using:
Equity model;
Fair value model; or
Cost model



Investment in associates must
be accounted for using the
equity method


Investment in Joint Ventures
Section 15 IAS 31
Investment in joint ventures
shall be accounted for using:
Equity model;
Fair value model; or
Cost model

Proportionate consolidation is
not permitted


Investment in joint ventures
must be accounted for using the
Equity method; or
Proportionate consolidation

Investment Property
Section 16 IAS 40
Investment property shall be
measured at fair value through
profit or loss if the fair value can
be measured reliably without
undue cost or effort
Otherwise, the investment
property shall be accounted for
as property, plant and
equipment using the cost-
depreciation-impairment model


Investment property may be
accounted for using:
Fair value model; or
Cost-depreciation- impairment
model

Property, plant and equipment
Section 17 IAS 16
Scope of Section 17 includes:
Investment property whose fair
value can not be measured
reliably without undue costs or
effort; and
Non-current assets held for sale

Property, plant and equipment
are measured at cost less
accumulated depreciation and
accumulated impairment losses.
Revaluation is not permitted


IAS 16 applies only to Property,
plant and equipment
Investment property is covered
by IAS 40
Non-current asset held for sale is
covered by IFRS 5

Property, plant and equipment
can be measured using:
Cost-depreciation-impairment
model; or
Revaluation model

Property, plant and equipment
Section 17 IAS 16
Review of PPEs useful life,
residual value, depreciation rate
is made only if there is a
significant change in the asset or
how it is used


Requires annual review of PPEs
useful life, residual value,
depreciation rate
Agriculture
Section 34 IAS 41
Biological assets shall be
measured at fair value less cost
to sell if the fair value is readily
determinable without undue
costs or effort
Otherwise, biological assets
shall be measured at cost less
accumulated depreciation and
accumulated impairment losses


Biological assets are measured at
fair value less cost to sell
There is a presumption that fair
value can be measured reliably
for biological assets
Government grants
Section 24 IAS 20
Government grants without
future performance conditions
are recognized in profit or loss
when proceeds are receivable. If
there are performance
conditions, the grant is
recognized in profit or loss only
when the conditions are met.


Government grants related to
assets are recognized as income
over the periods necessary to
match them with the related
costs which they are intended to
compensate.
Government grants related to
income are recognized in profit
or loss when the conditions for
their recognition have been met

Intangible Assets
Section 18 IAS 38
All costs incurred to internally
develop intangible assets such as
research and development costs
are charged to expense
Intangible assets must be
measured using cost-
amortization-impairment model
Revaluation of intangible asset
is not permitted
All intangible assets are
considered to have a finite life. If
unable to estimate the useful life
of an intangible asset, the life is
presumed to be 10 years


Research costs are recognized as
expense when incurred while
developmental costs may be
capitalized as part of cost of an
intangible asset
Intangible asset may be
accounted for using:
Cost-amortization-impairment
model; or
Revaluation model
Intangible asset with indefinite
life is not amortized
Intangible Assets
Section 18 IAS 38
Amortization periods and
methods, and the residual value
of intangible assets shall be
reviewed only if there is a
significant change in the asset or
how an intangible asset is used.
Amortization periods and
methods, and the residual value
of intangible assets must be
reviewed at each reporting
period.
Share-based Payment
Section 26 IFRS 2
Measure asset/expense based on
the
Fair value of the goods or
services received;
Fair value of the equity
instruments granted
The directors best estimate of
the fair value of the equity
settled share based payment
Measure asset/expense based on
the
Fair value of the goods or
services received;
Fair value of the equity
instruments granted
Intrinsic value of the equity
instruments
Leases
Section 20 IAS 17
Lease payments under operating
leases shall be recognized as
income/expense on a straight-
line basis unless
Another basis is more
representative of the timing of
the benefits obtained by the
user of the asset; or
the payments are structured to
increase in line with expected
general inflation.
Lease payments under operating
leases shall be recognized as
income/expense on a straight-
line basis unless
Another basis is more
representative of the timing of
the benefits obtained by the user
of the asset
Foreign Currency Translation
Section 30 IAS 21
When a foreign operation is
disposed of, any cumulative amount
in equity is recognised in
comprehensive income not in
profit or loss

When a foreign operation is
disposed of, any cumulative amount
in equity is recognised in profit or
loss

Basic Financial Instruments
Section 11 IAS 39
Debt instruments are measured
at amortised cost
Debt instruments that are
classified as current are
measured at the undiscounted
amount
Investments in non-convertible
preference shares and non-
puttable ordinary or preference
shares are measured at fair
value through profit or loss
(if readily determinable)
Financial instruments are classified
as trading securities, available for
sale or held to maturity depending
on the intention of management.
Other Financial Instruments
Section 12 IAS 39
Hedge accounting cannot be
achieved by using debt instruments
as
Hedge accounting is not permitted
with an option-based hedging
strategy hedging instrument
Hedge accounting for portfolio is
not permitted
Debt instruments can be used as
hedging instrument for a hedge of
foreign currency risk
Option-based hedging strategy is
permitted
Hedge accounting for portfolio is
permitted

Complete Set of Financial
Statements
IFRS for SMEs Full IFRS
Complete set of FS includes:
Statement of Financial Position
Statement of Income
Statement of Cash Flows
Statement of Changes in Equity
Statement of Comprehensive
Income
Notes to Financial Statements
Statement of income and retained
earnings may be presented in place
of Statement of changes in equity
and Statement of comprehensive
income
Complete set of FS includes:
Statement of Financial Position
Statement of Income
Statement of Cash Flows
Statement of Changes in Equity
Statement of Comprehensive
income
Notes to Financial Statements
Financial Statement Presentation
Fair presentation: presumed to result if the IFRS for SMEs
is followed
SMEs shall present a complete set of financial statements at
least annually
At least one year comparative financial statements and note
data
Presentation and classification of items should be consistent
from one period to the next.
Inventories
Measured at the lower of cost and estimated selling
price less costs to complete and sell
Cost is determined using:
Specific identification for large items
FIFO or weighted average for others
Inventory cost includes costs to purchase, costs of
conversion and costs to bring the asset to present
location and condition
Inventories- cont.
If a production process creates joint products and/or
by-products, the costs are allocated on a consistent
and rational basis
Allocate fixed production overheads to inventories
based on normal capacity
Impairment write down to net realizable value


Business Combinations and
Goodwill

Acquisition (purchase) method. Under this method:
An acquirer must always be identified
The cost of the business combination is measured.
All goodwill must be amortized. If the entity is unable
to estimate useful life, then use 10 years.
'Negative goodwill' first reassess original accounting.
If that is ok, then immediate credit to profit or loss
Impairment testing of goodwill
Reversal of goodwill impairment is not permitted


Provisions and Contingencies

Provisions are recognized only when
1. there is a present obligation as a result of a past event,
2. it is probable that the entity will be required to transfer
economic benefits, and
3. the amount can be estimated reliably.
Contingent liabilities
Not recognised as liabilities.
Disclose if reasonably possible or probable but not
estimable
Contingent assets
Not recognised as assets.
Disclose if probable

Liabilities and Equity
Guidance on classifying an instrument as liability or equity
The equity instruments issued are measured at the fair
value of cash or resources received, net of direct costs of
issuance.
Subscriptions receivable is presented as an offset to equity
and not as an asset.
Stock dividends and stock splits do not result in changes to
total equity but, rather, reclassification of amounts
within equity.
'Split accounting' is required to account for issuance of
convertible instruments
Cost of treasury shares are deducted from the equity. No
gain or loss is recognised on subsequent resale of treasury
shares.

Revenue
Recognition Principle
Sale of goods and services
Customer loyalty plan awards need to be accounted for
separately.

Measurement Principle
fair value of the consideration received or
receivable, net of discounts and rebates
If payment is deferred beyond normal payment terms,
measure at the present value. The difference is
recognized as interest revenue.

Impairment of Assets
Inventories
write down, in profit or loss, to lower of cost and
selling price less costs to complete and sell.
All other assets
write down, in profit or loss, to recoverable amount, if
below carrying amount.
When the circumstances that led to the impairment
no longer exist, the impairment is reversed through
profit or loss.

Income Tax
Income tax expense must include both current and
deferred tax
Current tax expense is computed based on taxable
income
Current tax asset or liability is recognized for the difference
between current tax due and current tax paid.
Deferred tax results from temporary differences
A temporary difference is a difference between the carrying
amount of an asset or liability and its tax basis that will result
in a taxable or deductible amount in the future.
Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses and unused tax
credits.
Deferred taxes are all non-current
Hyperinflation
An entity must prepare general price-level adjusted
financial statements when its functional currency is
hyperinflationary
In price-level adjusted financial statements, all
amounts are stated in terms of the
(hyperinflationary) presentation currency at the end
of the reporting period.
The profit or loss on the net monetary position is
included in profit or loss.

Events after the End of the
Reporting Period

Events after the end of the reporting period are
classified as
1. Adjusting events
Those that provide evidence of conditions that existed at
period end
2. Non-adjusting events
Those that are indicative of conditions that arose after
period end
If an entity declares dividends after the reporting
period, the entity shall not recognize those dividends
as a liability at the end of the reporting period.
Related Party Disclosures
Disclose parent-subsidiary relationships, including
the name of the parent and (if any) the ultimate
controlling party.
Disclose key management personnel
compensation in total for all key management.
Disclose the following for related party
transactions:
Nature of the relationship and transactions
Amount of the transaction
Provisions for uncollectible receivables
Any expense recognised during the period in respect of
an amount owed by a related party
Specialized Activities- Agriculture
If the fair value of a class of biological asset is
readily determinable without undue cost or
effort, use the fair value through profit or loss
model.
Otherwise, measure the biological assets at
cost less and accumulated depreciation and
impairment.
At harvest, agricultural produce is be measured
at fair value less estimated costs to sell.
Thereafter it is accounted for as inventory.

Specialized Activities-Extractive
Industries
Expenditure on tangible or intangible assets used in
extractive activities is accounted for under Section 17
Property, Plant and Equipment and Section 18
Intangible Assets other than Goodwill
An obligation to dismantle or remove items or restore
sites is accounted for using Section 17 and Section 21
Provisions and Contingencies.
Specialized Activities- Service
Concession Arrangements
The operator either recognizes a financial asset or an
intangible asset depending on whether the grantor
(government) has provided an unconditional
guarantee of payment or not.
A financial asset is recognized to the extent that the
operator has an unconditional contractual right to
receive cash or another financial asset.
An intangible asset is recognized to the extent that
the operator receives a right or license to charge
users for the public service.

Objective of
Financial Statements of SMEs
The objective of financial statements of SMEs is to provide
information about the entity that is useful to a wide range of
users in making economic decision:
1. Financial position
2. Performance, and
3. Cash flows
Qualitative Characteristics of Financial
Statements of SMEs
Understandability
Relevance
Materiality
Timeliness
Reliability
Faithful Representation
Neutral
Substance over form
Completeness
Prudence
Comparability

Pervasive Recognition and Measurement
Principles
1. Accrual
An entity shall prepare its financial statements using the
accrual basis of accounting
2. Cost
An entity shall initially measure its assets and liabilities at
cost
3. Offsetting
An entity shall not offset assets and liabilities, or income
and expenses.
Fair Presentation
Application of IFRS for SMEs
Justifiable departure from this IFRS and disclosure
requirements.
Going Concern
Fundamental assumption in the preparation of the financial
statements
Managements assessment of the appropriateness of using
going concern assumption
Disclosure requirements if:
Material going concern uncertainties exist
Going concern assumption is not appropriate

Frequency of Reporting
Present complete set of financial statements at least
annually.
Change in reporting period, disclose:
This fact
Reason
Comparative amounts are not entirely comparable

Comparative Information
Numerical comparative information is required
Narrative comparative information is also required


Consistency of Presentation
Retain the same presentation and classification of items
from one period to the next unless:
Another presentation or classification would be more
appropriate.
This IFRS requires


Materiality and Aggregation
Each material class of similar items should be presented
separately
Items of a dissimilar nature or function should be presented
separately unless they are immaterial
Immaterial items should be aggregated with amounts of
similar nature or function.
Statement of
Financial Position
May still be called 'balance sheet'
Current/non-current split is not required if the entity
concludes that a liquidity approach produces more relevant
information
Some minimum line items required
Some required items may be presented in the statement or
in the notes
Sequencing, format, and titles are not mandated
Statement of Financial Position: Minimum
Information
Cash and cash equivalents
Trade and other receivables
Financial assets
Inventories
Property, plant and equipment
Investment property
Intangible assets
Biological assets carried at cost less
accumulated depreciation
Biological Assets carried at fair
value through profit or loss
Investment in associates
Investment in jointly controlled
entities
Trade and other payables
Financial liabilities
Liabilities/Assets for current taxes
Deferred tax liabilities/assets
Provisions
Non-controlling interest
Equity attributable to the owners
of the parent
Current/Non-current Distinction
Present assets and liabilities separately under current
and non-current classification unless
presentation based on liquidity is reliable and more relevant.
Assets and liabilities shall be presented in order of approximate liquidity
(ascending or descending)
Classify assets and liabilities as current if they are:
Involved in the operating cycle
Expected to be realized or settled within twelve months from
the reporting date.
Classification of Assets
Classify an asset as current when:
It is cash or a cash equivalent
It is held primarily for the purpose of trading
It is expected to be realized, sold or consumed within the
entitys normal operating cycle
It is expected to be realized within twelve months after the
reporting date
Classify all other assets as non-current

Classification of Liabilities
Classify a liability as current when:
It is expected to be settled in the entitys normal operating
cycle
It is held primarily for the purpose of trading
It is expected to be settled within twelve months after the
reporting date
The entity does not have an unconditional right to defer
settlement of the liability for at least twelve months after
reporting date
Classify all other liabilities as non-current

Disclosure Requirements-
Subclassification for Assets
Trade and other receivables showing separately:
Amounts receivable from trade customers
Amounts due from related parties
Amounts due from other parties
Receivables arising from accrued income not yet billed
Inventories
Held for sale in the ordinary course of business
In the process of production for such sale
In the form of materials and supplies to be consumed in the
production process or rendering of services
Property, plant and equipment in classifications
appropriate to the entity

Disclosure Requirements-
Subclassification for liabilities
Trade and other payables showing separately:
Amount payable to trade creditors
Amounts payable to related parties
Deferred income
Accrual
Provision for employee benefits and other provision


Disclosure Requirements-
Shareholders Equity
Classes of equity
Paid-in capital
Share premium
Retained earnings
Income and expenses recognized in
other comprehensive income



For each class of share capital:
Number of shares authorized
Number of shares issued
Par value per share
Reconciliation of number of shares
outstanding at the beginning and at
the end of the period.
Rights, preferences and restrictions
attaching to that class
Treasury shares or shares held by its
subsidiary or associates
Shares reserved for issue under
options and contracts for the sale
of shares including terms and
amounts
A description of each reserved in
the equity
Statement of Comprehensive
Income & Income Statement
One-statement or two-statement approach
An entity may present only an income statement if it has no
items of other comprehensive income (OCI)
Must segregate discontinued operations
Must present 'profit or loss' subtotal if the entity has any
items of other comprehensive income
Bottom line is 'profit or loss' in the income statement and
'total comprehensive income' in the statement of
comprehensive income
No item may be labelled 'extraordinary'

Statement of Comprehensive Income-
Minimum Information
Revenue
Finance costs
Share of the profit or loss of
investment in associates and jointly
controlled entity accounted for
using the equity method
Tax expense
A single amount comprising the
total of post-tax effect of
discontinued operation and post
tax effect of disposal of net
assets constituting discontinued
operation
Profit or loss
Each item of other comprehensive
income
Share of the other
comprehensive income of
investment in associates and
jointly controlled entity
accounted for using the equity
method
Total comprehensive income


Note: Disclose separately the profit or loss and total
comprehensive income attributable to:
Non-controlling interest
Owners of the parent
Statement of Cash Flows
Classify changes in cash and cash equivalents for a
period as to operating, investing or financing activities
Option to use the indirect method or the direct method
to present operating cash flows
Interest (paid and received) and dividends (received)
may be classified as operating, investing, or financing
Separate disclosure is required of some non-cash
investing and financing transactions

Information presented in
Statement of Changes in Equity
Total comprehensive income showing separately
amounts attributable to owners of the parent and to
non-controlling interests
For each component of equity, a reconciliation between
the carrying amount at the beginning and at the end of
the period separately disclosing changes resulting from:
Profit or loss
Effect of retrospective adjustments
Each item of other comprehensive income
Additional contributions by and distributions to owners
including treasury share transactions

Statement of Income and
Retained Earnings
An entity may present a statement of income and retained
earnings in place of statement of comprehensive income
and statement of changes in equity if the only changes
affecting the equity during the period arise from:
1. Profit or loss
2. Payment of dividends
3. Correction of prior-period errors
4. Changes in accounting policy
IFRS FOR SMES
NOTES TO FINANCIAL STATEMENTS
Presenting the Notes to FS
Present the note in a systematic manner
Cross-refer each item in the financial statements to any related
information in the notes
Normally presented in the following order:
1. Company information
2. Statement of compliance with IFRS for SMEs
3. Summary of significant accounting policies
4. Supporting information or computation for line items presented in the
FS
5. Other financial and non-financial disclosures
S3- FS PRESENTATION
An entity shall make an explicit and unreserved
statement of compliance with IFRS for SMEs
Present complete set of FS at least annually
Comparative presentation of amounts
Narrative comparative should be made when it is
relevant to an understanding of the current FS

S3- FS PRESENTATION
Departure from this IFRS
The fact that FS are fairly presented
FS complied with this IFRS except that it has departed
from a particular requirement to achieve fair
presentation
Nature of departure and reason why compliance with a
particular requirement would be so misleading
S3- FS PRESENTATION
Disclose going concern uncertainties
The fact that the entity is not a going concern and the
basis of presentation
S3- FS PRESENTATION
Change in classification
Nature
Amount of items reclassified
Reason for reclassification
S3- FS PRESENTATION
An entity shall disclose the following in the notes:
Domicile and legal form of the entity
Country of incorporation
Office address
Description of the nature of entitys operations
S3- FS PRESENTATION
An entity shall display the following information
prominently:
Name of reporting entity
Group or individual FS
Date and period covered by the FS
Presentation currency and the level of rounding
S4- Statement of Financial Position
An entity shall disclose, either in the statement of financial position or
in the notes the following subclassifications of the line items
presented:
PPE
Inventory
Trade and other receivables
Due from related parties
Due from other parties
Accrued income not yet billed
Trade and other payables
Due to trade suppliers
Due to related parties
Deferred income
Accrual
Provisions
Equity
S4- Statement of Financial Position
An entity with share capital shall disclose the
following either in the statement of financial position
or in the notes:
Number of shares authorized
Number of shares issued
Par value per share
Reconciliation of shares outstanding at the beginning
and at the end of the period
Treasury shares held by the entity, subsidiaries or
associates
Rights, preferences and restrictions attached to each
class of share capital
Description of each reserve within the equity
S5- Statement of Income
An entity shall present an analysis of expenses using
classification either based on the nature of expenses or
function of expenses within the entity, whichever
provides information that is reliable and more relevant
S5- Statement of Income
An entity shall disclose separately:
Profit or loss for the period attributable to parent and
non-controlling interest
Total comprehensive income for the period attributable
to parent and non-controlling interest
S6- Statement of Changes in Equity
An entity shall present in the statement of changes in
equity:
Total comprehensive income
For each component of equity:
Profit or loss
Each item of other comprehensive income
Effect of retrospective restatements
Investment, dividends and other equity transactions

S6- Statement of Income and
Retained Earnings
An entity shall present the following in the statement
of income and retained earnings:
Retained earnings at the beginning of the period
Dividends declared and paid
Retrospective restatement of retained earnings
Retained earnings at the end of the period

S7- Statement of Cashflows
An entity shall present Statement of Cashflows for a
reporting period classified by operating, investing or
financing activities

S7- Statement of Cashflows
An entity shall present cashflows from operating
activities using either
Direct; or
Indirect method

S7- Statement of Cashflows
An entity shall present separately cashflows arising
from income tax and shall classify them as cashflows
from operating activities

S7- Statement of Cashflows
An entity shall present separately cashflows from
interest and dividends received and paid.

S7- Statement of Cashflows
An entity shall disclose non-cash investing and
financing activities elsewhere in the FS in a way that
provides all the relevant information about investing
and financing activities

S7- Statement of Cashflows
An entity shall present the components of cash and
cash equivalents.
An entity shall present a reconciliation of the amounts
presented in the statement of cash flows to the
equivalent items presented in the statement of
financial position


S7- Statement of Cashflows
An entity shall disclose, together with commentary by
management, the amount of cash and cash equivalents
held by the entity that are not available for use by the
entity.

S8- Notes to FS
An entity normally presents the notes in the following
order:
Statement of compliance
Summary of significant accounting policies
Information supporting items presented in the FS
Other disclosures

S8- Notes to FS
An entity shall disclose in the summary of significant
policies:
Basis of measurement
Key sources of estimation and uncertainty
Summary of significant accounting policies and
significant judgments made in applying those policies

S10- Accounting policies, estimates
and errors
For involuntary change in accounting policies,
disclose:
Nature of the change
Effect on each line item affected for current and prior
period/s presented
Effect relating to period/s not presented

S10- Accounting policies, estimates
and errors
For voluntary change in accounting policies, disclose:
Nature of the change
Justification for the change
Effect on each line item affected for current and prior
period/s presented
Effect relating to period/s not presented

S10- Accounting policies, estimates
and errors
For prior period errors:
Nature of the error
Effect on each line item affected for current and prior
period/s presented
Effect relating to period/s not presented

S10- Accounting policies, estimates
and errors
For change in estimate:
Nature of the change
Effect on each line item affected for current and one or
more future period/s if practicable
Effect relating to period/s not presented

S11- Basic Financial
Instruments
An entity shall disclose, in the summary of significant
accounting policies, the measurement basis (or bases)
used for financial instruments

S11- Basic Financial
Instruments
An entity shall disclose the carrying amount of each of
the following categories of financial instruments:
Financial assets/liabilities measured at FV
Debt instruments measured at amortized cost
Financial assets (equity) measured at cost

S11- Basic Financial Instruments
An entity shall disclose significant information and
description of its financial instruments such as the
terms and conditions, interest rate, maturity,
repayment schedules and restrictions imposed.
S11- Basic Financial Instruments
For financial instruments measured at fair value
through profit or loss, the entity shall disclose the
basis for determining the fair value, e.g. quoted market
prices or valuation techniques.

S11- Basic Financial
Instruments
When an entity has pledged financial assets as
collateral for liabilities or contingent liabilities, it shall
disclose
The carrying amount of the financial asset
Terms and condition relating to its pledge

S11- Basic Financial
Instruments
An entity shall disclose:
Income and expenses recognized
Financial assets measured at FV
Financial liabilities measured at FV
Financial assets measured at amortized cost
Financial liabilities measured at amortized cost
Total interest income or interest expense (calculated
using the effective interest method)
Amount of impairment loss recognized on financial
assets


S13- Inventories
An entity shall disclose:
Accounting policy and cost formula
Carrying amount of inventory (total and classified)
Amount of inventory recognized as expense
Impairment loss recognized/reversed
Inventories pledged as collateral

S14- Investment in Associates
An investor in associate shall disclose:
Its accounting policy
Carrying amount
Fair value of investment (if there are published
quotations)
Dividend income (for cost method)


S16- Investment Property
An entity shall disclose:
Methods of determining the FV and significant
assumptions applied
The extent to which the FV was determined by a
qualified independent valuer
Existence of restrictions on the realizability of
investment property
Contractual obligation to purchase, construct, develop
or maintain investment property

S16- Investment property
An entity shall disclose a reconciliation of the carrying
amount of investment property, showing separately:
Additions
FV adjustments
Transfers
Others


S17- Property, Plant and
Equipment
An entity shall disclose the following for each class of PPE:
Measurement basis
Depreciation method
Useful lives or depreciation rate
Gross carrying amount and accumulated depreciation at the
beginning and at the end of the period
Reconciliation showing separately
Additions
Disposals
Transfers
Depreciation
Impairment
Others

This reconciliation need not be presented for prior periods


S17- Property, Plant and
Equipment
An entity shall disclose:
PPE used as collateral for a loan
Amount of contractual commitment


S18- Intangible Assets
An entity shall disclose the following for each class of Intangible
assets:
Amortization methods used
Useful lives or depreciation rate
Gross carrying amount and accumulated amortization at the
beginning and at the end of the period
Reconciliation showing separately
Additions
Disposals
Acquisitions through business combination
Amortization
Impairment
Others

This reconciliation need not be presented for prior periods


S18- Intangible Assets
An entity shall also disclose:
A description, carrying amount and amortization period
of any individual intangible asset that is material to the
entity
Carrying amount and original fair value of intangible
assets acquired by government grants
Carrying amounts of intangible assets that are pledged
as security for liabilities
Aggregate amount of research and development costs
recognized as expense


S19- Intangible Assets
For business acquisition, an entity shall disclose:
Names and descriptions of combining businesses
Date of acquisition
Percentage of voting equity instruments acquired
Acquisition cost and component of cost
Amounts initially recognized for each class of the
acquirees assets, liabilities and contingent liabilities
including goodwill
Income recognized from business combination



S19- Intangible Assets
An entity shall disclose a reconciliation of the carrying
amount of goodwill at the beginning and end of the
reporting period, showing separately:
Changes arising from new business combination
Impairment losses
Disposals of previously acquired businesses
Others

This reconciliation need not be presented for prior periods



S20- Leases (Lessee)
For operating lease,
disclose:
Lease payment recognized
as expense
Total of future minimum
lease payments for each of
the following:
Not later than one year
Later than one year and not
later than five years
Later than five years
General description of
significant leasing
arrangements


For finance lease,
disclose:
Carrying amount of leased
asset at the beginning and
end of the reporting
period
Total of future minimum
lease payments for each of
the following:
Not later than one year
Later than one year and not
later than five years
Later than five years
General description of
significant leasing
arrangements

S20- Leases (Lessor)
For operating lease,
disclose:
Contingent rent
recognized as income
Total of future minimum
lease payments for each of
the following:
Not later than one year
Later than one year and not
later than five years
Later than five years
General description of
significant leasing
arrangements


For finance lease,
disclose:
Reconciliation at the end of
the reporting period between
gross investment and PV of
minimum lease payment
Total of future minimum lease
payments and PV of minimum
lease payments for each of the
following:
Not later than one year
Later than one year and not
later than five years
Later than five years
Unearned finance income
General description of
significant leasing
arrangements

S21- Provisions and contingencies
For Provisions, disclose:
Reconciliation showing:
Carrying amount at the
beginning and period end
Additions
Charges
Unused amounts reversed
during the year
Nature of provision and
expected amount and timing
of payment
Indication of uncertainties
about timing and amount
Amount of expected
reimbursement including
asset recognized


For contingent liabilities,
disclose:
Nature of contingent
liability
Estimate of financial
effect/s
Indication of uncertainties
about timing and amount
Possible reimbursement

S21- Provisions and contingencies
For probable contingent assets, disclose:
Nature
Estimate of financial effect or a statement the fact that it
is not practicable to estimate the financial effect
For prejudicial disclosures, disclose only:
General description of the nature of the dispute
The fact that information has not been disclosed
The reason why it has not been disclosed

S23- Revenue
An entity shall disclose:
Accounting policies adopted
Amount of each category of revenue recognized during
the period
S23- Revenue
For revenue from construction contracts, an entity
shall disclose:
Amount of contract revenue recognized
Methods used to determine contract revenue
Methods used to estimate the stage of completion
S24- Government grants
An entity shall disclose:
Nature and amount of grants
Unfulfilled conditions and other contingencies
attaching to government grants
Description of other government assistance received by
the entity
S25- Borrowing costs
An entity shall disclose:
Finance costs
Total interest expense using effective interest method
S27- Impairment of assets
An entity shall disclose:
Impairment losses included in each line item of the
income statement
Reversal of impairment losses included in each line item
of the income statement

S28- Employee benefits
For defined benefit plan, disclose:
General description of the plan
Policy for recognizing actuarial gains and losses and amount
recognized during the period
Date of the most recent actuarial valuation
Reconciliation at the beginning and at period end for DBO
and PA.
Amount recognized as expense or capitalized
FV or ratio of each class of PA in relation to total FV of PA
Actual return on PA
Principal actuarial assumptions
For defined contribution plan, disclose:
Amount recognized as expense
S29- Income taxes
An entity shall disclose major components of total tax
expense:
Current tax expense
Amount of DTE relating to origination and reversal of
temporary differences
Amount of tax expense relating to changes in
accounting policies and errors
Amount of DTE arising from changes in tax rates
Others

S29- Income taxes
An entity shall disclose separately:
Amount of DTA/DTL at the end of reporting period
Analysis of changes in DTA/DTL
Expiry date and valuation allowance for DTA
Explanation of significant differences in amounts
presented in IS amounts reported for tax purposes
Current and DT relating to items of OCI
Explanation of changes in the applicable tax rates
Income tax consequence that would result from
dividend payments

S32- Subsequent events
An entity shall disclose:
Date when financial statements were authorized for
issue
Who gave the authorization
For non-adjusting event, disclose:
Nature of event
Estimate of financial effect or a statement that such
estimate can not be made

S33- Related Parties
An entity shall disclose:
Name of its parent entity and ultimate parent
Key management compensation in total
For related party transactions, disclose separately for
subsidiaries, affiliates, key management personnel and
other related parties:
Nature of relationship and transaction
Amount of transaction and outstanding balances
Provision for uncollectible related party receivables
recognized as expense
S34- Specialized activities
Agriculture- FV
Description of each class of biological assets
Methods and significant assumptions applied in determining
FV
Reconciliation of carrying amounts of biological assets at the
beginning and period end
Agriculture- Cost
Description of each class of biological assets
Explanation why FV can not be measured reliably
Depreciation method used and useful lives or rates used
Reconciliation of the gross carrying amount and accumulated
depreciation at the beginning and period end

TRANSITION TO THE IFRS FOR SMES

FIRST-TIME ADOPTION
An entity is a first-time adopter if it prepares financial
statements in accordance with this IFRS for the first time
and the entity
Did not present financial statements in the previous period;
Presented its most recent previous financial statements in
conformity with full IFRS; or
Presented its most recent previous financial statements using
other GAAP.

PROCEDURES AT DATE OF
TRANSITION
Prepare an opening financial position in accordance
with this IFRS
Recognize
Derecognize
Reclassify
Remeasure
Treat the cumulative effect/adjustments resulting from
the above transition directly to opening Retained
Earnings (or, if appropriate, other equity account)

EXEMPTIONS
Fair value as deemed cost
Revaluation as deemed cost
Cumulative translation differences
Compound financial instruments
Decommissioning costs
Deferred income tax


DISCLOSURES
Explain how the transition has affected its financial
statements
Description of the nature of each change in accounting policy
Reconciliation of profit or loss for the most recent financial
statements determined in accordance with its previous
financial reporting framework
Reconciliation of its equity for both
The date of transition; and
End of the latest period presented in the entitys most recent annual
financial statements determined in accordance with its previous
financial reporting framework



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