Such a provision should be discounted to present values using a. Changes in existing decommissioning, restoration and similar. This standard is intended to apply to the same types of assets as those addressed in ifric 12. Ifrs 9 examples and exercises acknowledgement this material.
The ifrs interpretations committee ifrs ic issued ifric 23, which clarifies how the recognition and measurement requirements of ias 12 income. Appendix 1 illustrative examples identification of a lease 97 appendix 2 presentation and disclosure checklist lessees 102 appendix 3 disclosure checklist lessors 107 appendix 4 comparison with us gaap 109 2 leases a guide to ifrs 16. The scope and authority of interpretations are set out in paragraphs 2 and 717 of the preface to international. An example accompanying the agenda decision on ias 33 has also been included. The guide is intended to serve as an illustrative tool for the reader in the application of ifric 12 service concession arrangements, providing analysis of the requirements of ifric 12 and practical guidance with examples that address some of the more complex issues around service concession arrangements.
Ifric 12 service concession arrangementvariable payments for asset purchases and payments made by an operator to a grantor in a service concession arrangement agenda papers 66c. Ifric 22 foreign currency transactions and advance. Ie1 these examples portray hypothetical situations illustrating how an entity might apply some of the requirements in ifrs 15 to particular aspects of a contract. Ifric 12 allows for the possibility that both types of consideration may exist within a single contract. As at 1 january 2016 ifric 4 determining whether an arrangement contains a lease effective date periods beginning on or after 1 january 2006 specific quantitative disclosure requirements. Contract an agreement between two or more parties that creates enforceable rights and obligations. Ifric 12 identified two types of service concession arrangements. These examples represent how some of the disclosures required by ias 12 in example 2 illustrative disclosure for income taxes might be tagged using both block tagging and detailed tagging. Financial reporting faculty members get free access to company. Example 1effect of the minimum funding requirement when there is an ias 19 surplus and the minimum funding contributions payable are fully refundable to the entity ie1 an entity has a funding level on the minimum funding requirement basis which is measured on a different basis from.
Ifric 12 gives guidance on the accounting by operators for publictoprivate s ervice concession arrangements ifric 12 applies to publictoprivate service concession arrangements if both. However, the illustrative examples included in ifric 12 state that the right to receive an intangible asset is itself an intangible asset. Ifric 12 service concession arrangements 7 consideration for construction examplesconsideration for construction examples what asset should the operator recognise in these cases. Ias 29 requires that the financial statements of an entity that reports in the currency of a hyperinflationary economy should be stated in terms of the measuring unit current at the balance sheet date. If an arrangement contains a lease, the parties to the arrangement apply the requirements of ias 17 to the lease element of the arrangement, unless exempted from those requirements in. Ifric interpretation 22 foreign currency transactions and advance consideration. Applying ifrs a closer look at ifrs 16 leases december 2018. Ifric 1 applies where an entity has previously included decommissioning or restoration costs within the cost of an item of property, plant or equipment, and created a corresponding provision. Hong kong ifric interpretation 12 service concession arrangements hkifricint 12 is set out in paragraphs and appendices a, b and c. For your convenience, i am enclosing excel file with illustrative short examples of all 3 formulas above. Grantor pays operator a fixed amount that does not depend on usage of infrastructure fa 2. Next, the entity calculates the present value of the cash flows associated with the liability using the liabilitys contractual cash flows at the end of the period and a discount rate equal to the sum of i the observed benchmark interest rate at the end of the period and ii the instrumentspecific component of the internal rate of return as determined in accordance with paragraph.
Ifric interpretation 22 foreign currency transactions and advance consideration ifric 22 is set out in paragraphs 19 and appendices a and b. Consolidated and separate statements of financial position. Ie1 these examples portray hypothetical situations illustrating how an entity might apply some of the requirements in ifrs 16 to particular aspects of a lease. Management esimates the following risks of defaults and losses that would result from default at 1 july 20x1 and at 31 december 20x1 and 20x2. Applying ifrs a closer look at ifrs 16 leases december. Financial instruments 12 foreign currencies ias 21, ias 29 16 insurance contracts ifrs 4, ifrs 17 18 revenue and construction contracts ifrs 15 and ias 20 19 segment reporting ifrs 8 23 employee benefits ias 19 24 sharebased payment ifrs 2 26 taxation ias 12, ifric 23 27 earnings per share ias 33 28. Illustrative examples to ifric interpretation 14 these examples accompany, but are not part of, ifric 14. The scope and authority of interpretations are set out in paragraphs 2 and 716 of the preface to international financial reporting standards. All conclusions reported are tentative and may be changed or modified at future interpretations committee meetings. Hkifric interpretation 4 determining whether an arrangement contains a lease hkifricint 4 is set out in paragraphs 117 and the appendix. Ifrs 3 business combinations would help solve the practical problems that. Ifric 23 is accompanied by illustrative examples and a basis for conclusions. The grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them, and at what price.
The scope and authority of interpretations are set out in paragraphs 2 and 716 of the preface to international financial. Ifric 1 existing decommissioning, restoration and similar. Ifric 12 service concession arrangementsaccounting for combined. Hk ifric int 12 is accompanied by information notes, illustrative examples and a basis for conclusions. Ifric12 concessions, ceste i mostovi, dario silic, zagreb, july 2008 ifric 12 in. Oct 05, 2017 ifrs 16 leases illustrative examples these examples accompany, but are not part of, ifrs 16.
Definition of a businessupdate on iasb proposals agenda paper 3. Ifric interpretation 4 determining whether an arrangement contains a lease ifric 4 is set out in paragraphs 117 and the appendix. Documents published to accompany ifric interpretation 12 service concession arrangements the text of the unaccompanied ifric 12 is contained in part a of this edition. The nuclear power plant started operating on 1 january 2000. Guide to selecting and applying accounting policies ias 8. A service concession arrangement is an arrangement whereby a government or other public sector body contracts with a private operator to develop. Ie1 these examples portray hypothetical situations illustrating how an entity might apply some of the requirements in ifrs 16 to particular aspects of a lease or.
Examples and other materials in the learning units are solely for illustrative purposes and should not be relied upon for technical answers or as the deloitte. Ifric 12 refers to the assets used in a service concession arrangement as. Ifric 12 service concession arrangements ifric customer loyalty programmes ifric 14 ias 19 the limit on a defined benefit asset, minimum funding requirements and their interaction ifric 15 agreements for the construction of real estate ifric 16 hedges of a net investment in a foreign operation. The year has seen an encouraging consolidation and expansion of the ifrs community around the world. These examples accompany, but are not part of, ifric 12. Ifric 7 applying the restatement approach under ias 29. Illustrative examples to ifric interpretation 14 these. On 1 july 20x1 entity b advanced a 3year interstbearing loan of cu2million to entity a.
Hkifricint 12 is accompanied by information notes, illustrative examples and a basis for conclusions. September 2005 special global edition ifric 7 on applying the restatement approach under ias 29 pdf 51k summary of ifric 7. Ifrs interpretations committee agenda decisions have been added as annotations to ifrs 3, ifrs 9, ifrs 10, ifrs 11, ias 2, ias 8, ias 12, ias 19, ias 28, ias 32, ias 33, ias 41 and ifric 12. Hong kong ifric interpretation 12 service concession arrangements hk ifric int 12 is set out in paragraphs and appendices a, b and c. They illustrate aspects of ifrs 16 but are not intended to provide interpretative guidance. This part presents the following accompanying documents. One in which the operator has a contractual right to receive cash or another financial asset from the government. A service concession arrangement is an arrangement where a government or other body grants a contract for the supply of public services to a private operator. For example, to the extent that the grantor has given to the. Illustrative examples these examples accompany, but are not part of, ifrs 15. The interpretation clarifies application of recognition and measurement requirements in ias 12 income taxes when there is uncertainty over income tax treatments. Ifrs 15 revenue from contracts with customers 2 defined terms ifrs 15 defines the following terms that form an integral part of this ifrs.
Welcome to the ifric update ifric update is the newsletter of the ifrs interpretations committee the interpretations committee. Ifric 23 uncertainty over income tax treatments ifric 23 is set out in paragraphs 114 and appendices a, b and c. Ifric interpretation 1 illustrative examples these examples accompany, but are not part of, ifric 1. In addition, the reasons why the ifrs interpretations committee did not add certain items to its agenda ifrs interpretations committee agenda decisions up to 31 december 2016 have been included as annotations. Illustrative examples international financial reporting standard. Ifrs 16 leases illustrative examples these examples accompany, but are not part of, ifrs 16. Ifric update is the newsletter of the ifrs interpretations committee the interpretations committee. Decisions become final only after the interpretations committee has taken a. Top excel formulas for ifrs ifrsbox making ifrs easy. They illustrate aspects of ifrs 15 but are not intended to provide interpretative guidance. We hope this handbook will help you apply the complex accounting and valuation. Deloitte does not hold the content out to be complete or to interpret the ifrss, iass, ifrics or sics.
Ifrs news q2 2019 grant thornton international ltd. Ifric 12 interpretation by iasb, illustrative examples, example 1, p 1518. Common facts ie1 an entity has a nuclear power plant and a related decommissioning liability. Determining whether an arrangement contains a lease. Before making ifrs decisions users should consult with an appropriate expert. Ifrs interpretations eu ifric 1 changes in existing decommissioning, restoration and similar liabilities ifric 2 members shares in cooperative entities and similar instruments ifric 4 determining whether an arrangement contains a lease ifric 5 rights to interests arising from decommissioning, restoration and environmental rehabilitation funds.
Pdf first impressions ifric 12 sara maycid academia. Illustrative examples international financial reporting. Ifric 4 is accompanied by illustrative examples and a basis for conclusions. The interpretation specifically addresses the following. Ifric 12 describes the accounting treatment of concession contract arrangements. Such a provision should be discounted to present values using a current marketbased discount rate. Partner capital markets and accounting advisory services, pwc australia. Ok, the last formula was a bit difficult, but otherwise, if you learn to apply these 3, your ifrs accounting skills will certainly improve. Hkifricint 4 is accompanied by illustrative examples and a basis for conclusions. Ifric 12 service concession arrangements a pocket practical guide. Service concession arrangements universitas indonesia. It is the ideal guide, update and refresher for everyone either contemplating a move to ifrss or already reporting under the ifrs framework.
The ifrs foundations logo and the ifrs for smes logo, the iasb logo, the hexagon device, eifrs, ias, iasb, ifric, ifrs, ifrs for smes, ifrs foundation, international accounting standards, international financial reporting standards, niif and sic are registered trade marks of the ifrs foundation, further details of which are available from the ifrs. Quarter 2 2019 2 ibor reform iasb proposes relief for hedging relationships 5 the meaning of sufficient time to adopt an ifric agenda decision 6 ifric agenda decisions 10 tentative ifric agenda decisions 12 grant thornton news 14 roundup 18 effective dates of new ifrs standards and ifric interpretations 20 open for comment. Changes in existing decommissioning, restoration and. The scope and authority of interpretations are set out in paragraphs 2 and 717 of the preface to international financial reporting. Ifric interpretation 12 service concession arrangements ifric 12 is set out in paragraphs and appendices a and b. Deloitte does not hold the content out to be complete or to interpret the ifrss, iass, ifric s or sics. Bit at the back applied where there is uncertainty over apply.
Information notes 1 accounting framework for publictoprivate service arrangements 2. Ifric12 concessions, ceste i mostovi, dario silic, zagreb, july 2008 ifric 12 in concessions, huka bulletin. Ifric 22 foreign currency transactions and advance consideration. Jul 23, 2016 ifric interpretation 12 service concession arrangements ifric 12 is set out in paragraphs and appendices a and b. Example 1effect of the minimum funding requirement when there is an ias 19 surplus and the minimum funding contributions payable are fully refundable to the entity ie1 an entity has a funding level on the minimum funding requirement basis which is measured on a different. Customer a party that has contracted with an entity to obtain goods or services that are an output of the.
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