IFRS standards required

Question 1

IFRS 5 - discontinued operations

Answer 1

requires separate disclosure of the results of both the continuing and discontinued aspects of a reporting entity in the SPL and OCI

Question 2

IFRS 16 - leases

Answer 2

a lessee accounts for almost all leasees by recognising an asset and a liability in the SFP
- reporting entities that lease assets have seen an increase in reported assets and liabilities
- ratios affected : gearing, ROCE, interest cover and asset turnover

Question 3

IFRS 3 - Business combinations

Answer 3

• a BC is the bringing together of separate entities or businesses into one reporting entity
• they may take the form of an aquisition

Question 4

IFRS 10 - control of an investee

Answer 4

when an investor is exposed or has rights to variable returns from its involvement with the investee and has ability to affect those returns through its power over the investee
- a consolidated financial statement is prepared because of this
- IFRS 10 doesnt allow subsidaries to be excluded from financial statements

Question 5

IFRS 13 - Fair Value Measurement

Answer 5

the price that would be received to sell an asset ( or paid transfer to liability) in an orderly transaction between market participants at the measurement date.

essentially the market value.

Question 6

IFRS 12 - disclosure of interests in other entities

Answer 6

requires companies to disclose:
- the nature and extent of any interest held in other entities
- any assumptions and judgements used in determining that nature
- any risks associated with the interest
- the effects of the interest on their financial position, performance and cashflow