(adsbygoogle = window.adsbygoogle || []).push({}); The IAS For services, similar conditions apply by stage of completion if the outcome can be estimated reliably. IAS 39 is included in: HYPERLINK "http://www.iasc.org.uk/shop/mycart.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&IID=1000018&n=113" INCLUDEPICTURE "http://www.iasc.org.uk/images/smooth/button_addtocart.gif" \* MERGEFORMATINET Bound Volume (printed version) HYPERLINK "http://www.iasc.org.uk/shop/mycart.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&IID=1000019&n=113" INCLUDEPICTURE "http://www.iasc.org.uk/images/smooth/button_addtocart.gif" \* MERGEFORMATINET Bound Volume (CD-Rom version) Comparison of IASC and U.S. Standards on Financial InstrumentsIASB staff have prepared a HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=3288" comparison of IAS 39 with FASB Standards. IAS 38 also requires disclosure of the amount of research and development expenditure recognised as an expense during the year; and IAS 38 is operative for annual accounting periods beginning on or after 1 July 1999. This means that, among other things, unlike current practices in certain countries, purchased R&D-in-process should not be recognised as an expense immediately at the date of acquisition but it should be recognised as part of the goodwill recognised at the date of acquisition and amortised under IAS 22, unless it meets the criteria for separate recognition as an intangible asset; after initial recognition in the financial statements, an intangible asset should be measured under one of the following two treatments: (a) benchmark treatment: historical cost less any amortisation and impairment losses; or (b) allowed alternative treatment: revalued amount (based on fair value) less any subsequent amortisation and impairment losses. Net realisable value is selling price less cost to complete the inventory and sell it. The objective of the four financial instruments standards (IAS 32, IAS 39, IFRS 9 and IFRS 7) is to establish requirements for all aspects of accounting for financial instruments, including distinguishing debt from equity, balance sheet offsetting, recognition, … Operating: May be presented using either the direct or indirect methods. &. However, the Board encourages enterprises to present such information and urges those that do to disclose the items required by IAS 15." IAS 37 prohibits the recognition of contingent liabilities and contingent assets. « IAS 40 was operative for annual financial statements covering periods beginning on or after 1 January 2001.One SIC Interpretation relates to IAS 8: HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=2023" SIC 8: First-Time Application of IASs as the Primary Basis of Accounting. Broad geographical diversity is … IAS 38 supersedes IAS 9, Research and Development Costs. ĞÏࡱá > şÿ ƒ … şÿÿÿ } ~  € � ‚ ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿì¥Á 9 ø¿ Vñ bjbjıÏıÏ Indirect method begins with accrual basis net profit or loss and adjusts for major non-cash items. The revisions became operative for annual financial statements covering periods beginning on or after 1 January 1998.In July 1998, various paragraphs of IAS 22 were revised to be consistent with HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=980" IAS 36: Impairment of Assets, HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=981" IAS 37: Provisions, Contingent Liabilities and Contingent Assets, and HYPERLINK "http://www.iasc.org.uk/cmt/0001.asp?s=1050307&sc={40FDE89D-3CAC-43AA-9631-EC6C1476599A}&n=982" IAS 38: Intangible Assets, and the treatment of negative goodwill was also revised. Three types of hedges are defined: Fair value hedge Cash flow hedge Hedge of a net investment in a foreign entity . If settlement date accounting is used for purchases, IAS 39 requires recognition of certain value changes between trade and settlement dates so that the income statement effects are the same for all enterprises. without amendment or else with minor additions or deletions. IFRS is a set of international accounting standards, which state how particular types of transactions and other events should be reported in financial statements. Same as above, but with a total of (a) and (b) (sometimes called "comprehensive income"). Jointly controlled entities. TABLE COMPARING IAS 19 (REVISED 2000) WITH U.S. GAAP  IAS 19USAActuarial valuation methodsProjected Unit Credit onlyProjected Unit Credit onlyMeasurement dateBalance sheet dateUp to 3 month before B/S dateAttribution of benefit to periods:  Attribution startsWhen employee becomes entitled to benefits (conditional or unconditional)When plan grants creditAttribution endsWhen entitlement is no longer conditional on future servicePension costs: end of serviceOPEBs: full eligibilityAttribution methodNote 1Note 2Discount rateRate on high quality corporate bonds at B/S dateEffective settlement rate / return on high-quality fixed-income investments Measurement assumes future benefit increases?If part of formal or constructive terms of the planIf regular or automaticActuarial gains and lossesOptional 10% corridor (note 3)Optional 10% corridor (note 3)Spread past service cost for current and former employees?Note 4YesPast service cost - amortisation basisStraight-lineEmployee / yearAdditional minimum liability in certain cases?NoPensions - yesOPEBs - noMeasurement of plan assetsFair value (note 5)Market Related or Market ValueLimit on recognition of an overall assetYes (note 6)NoCurtailment and settlement loss: timing of recognition When occursWhen probableInclude unrecognised actuarial gains/losses (A) and past service cost (P) in:  Curtailment gains and losses?A+PPSettlement gains and losses?A+PAMulti-employer plans with defined benefit characteristicsUse defined benefit accountingUse defined contribution accountingAnalyse balance sheet and income statement?YesYesDelayed transition allowed?Yes (note7)Yes (note7)Notes: Plan benefit formula (but use straight-line if formula is back-loaded) Pension costs: plan benefit formula, unless back-loaded. Estimates of future cash flows should include all estimated future cash inflows and cash outflows except for cash flows from financing activities and income tax receipts and payments; and(b) a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Split accounting is required for compound financial instruments (such as convertible securities). Required disclosures include: Revenue recognition accounting policies. Retrospective application is not permitted.In October 2000, the IASC Board approved five limited revisions to IAS 39 and other related International Accounting Standards (IAS 27, IAS 28, IAS 31, and IAS 32) to improve specific paragraphs and help ensure that the Standards are applied consistently. IAS 17 (revised) requires that a lessor should use the net investment method to allocate finance income. 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