Flashcards
FRS 102 / IFRS
Cards in this deck (17)
- 1PPEIFRS : Borrowing costs MUST be capitalised when criteria are met.
FRS 102 : MAY be capitalised but do not have to.
HFS : No requirement to classify as HFS in FRS 102
REQUIRED in IFRS if carrying amount recovered through sale rather than continuing use. - 2IntangiblesDevelopment Costs capitalisation:
IFRS - MUST
FRS 102 - MAY
Useful Life:
IFRS - May have indefinite UL
FRS 102 - All have finite UL, unknown = 5y - 3Assets ImpairmentIFRS - Impairment loss on Goodwill cannot be recovered.
FRS 102 - Allows reversal. Should take place after reversal of imp. losses on other assets in the CGU have been made pro-rata. - 4Financial Instruments - IFRSTransaction costs: Added/Deducted from all assets/liabs at initial rec. unless FVTPL.
Category of assets: determined by either requirements in standard OR Business Model - 5Financial Instruments - IFRS 9 (Assets)Debt: Amortised Cost or FVTOCI depending on biz model and SPPI (Principal and Interest). If OCI, FV changes through OCI but AC through P&L.
Shares: FVTPL or specific election for OCI (if not held for trade)
Impairement: Forward Looking, based on Expected Credit Losses (3 stages). Trade receivables can use a provision matrix - 6Financial Instruments - IFRS (Liabs)Initial Rec: AC unless held for trade, designated to FVTPL coz Accounting mismatch or derivative.
- 7FI - IFRS derecognition of Debt instruments FVTOCIgains and losses taken to revaluation reserve (OCI) should be recycled through P&L
- 8Hedge AccountingFair Value Hedge - G/L to P&L (on both hedging instrument and hedged item)
Cash Flow Hedge - G&L on instru in reval reserves until hedged item affects P&L
Balance may be transfered to P&L when item affects P&L.
*Transfered directly if item is non-monetary.
Same 2 options for FRS 102 but no standard rule. - 9Financial Instruments FRS 102 Section 11Offers choice between IAS 39 and IFRS 9 or FRS 102 sections 11 and 12
Section 11 - Assets
Debt: AC or FVTPL (same as IFRS) No requirement to hold in order to get SPPI.
Shares: FVTPL if available price (plc) if not cost - impairment.
No FVTOCI
Impairment only when evidence of credit impairment.
Liabilities = IFRS - 10Financial Instruments FRS 102 Section 12A&L: FVTPL unless inv cannot be measured reliably: cost-impairment.
- 11Employee BenefitsIAS 19 - More extensive disclosures
FRS 102 - Less extensive disclosures - 12Revenue recognition - IFRSSingle model based on performance obligations
Revenue rec to match goods and serv transferred. Amount should reflect consideration expected.
Recognised when perf obligation satisfied (point in time or over time) - 13Revenue Recognition - FRS 102Separate models for different types of revenue:
- Sale of goods
- Rendering of Services
- Construction Contracts
- Interest royalties and divs (similar to IFRS 9)
Rec criteria: goods rec when transfer of risk and rewards
serv & construction rec based on stage of completion
No detailed variance on variable consideration - 14EPS Operating SegmentsIAS 33/ IFRS 8
No section in FRS 102, entities that have EPS should use IAS 33 / IFRS 8 - 15Related PartiesIAS 24
FRS 102 - No disclosure of transactions required for wholly owned subs and parents within a group. - 16Consolidation 1/2NCI
IFRS: %NA or FV
FRS 102: Only %NA
Impairment/Amo
IFRS: GW not amortised but tested for impairment annually.
FRS 102: GW has finite UL, if unreliable max 10y. - 17Consolidation 2/2Negative goodwill
IFRS: bargain purchase rec immediately in P&L ( or RE if PY...)
FRS 102: deducted from GW in SOFP. Rec in P&L - COMPLETE FOR REASON
Invesment cost
IFRS - directly attrib. w-o as incurred
FRS 102 - direct attrib. cost included
Stepped Acqui
IFRS - previous holdings reval at date of acqui of control
FRS 102 - costs not revaluec, just aggregated.