1. International Financial Reporting Standards The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS Foundation. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org Quiz: Display related IFRSs + forex and IFRS 2 Joint World Bank and IFRS Foundation ‘train the trainers’ workshop hosted by the ECCB, 30 April to 4 May 2012 K The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS Foundation.

2. 2 Quiz: Financial Statement Presentation Question 1: Consolidated statement of comprehensive income How would the presentation of the consolidated statement of comprehensive income change if an entity had a discontinued operation in the current reporting period? © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

3. 3 Quiz: Financial Statement Presentation Question 1: Separate line item in statement of comprehensive income disclosing total of: –the post-tax profit or loss of discontinued op, plus –the post-tax gain or loss on disposal or write-down of the net assets of the discontinued operation Presented above total profit or loss for year Separately from profit from continuing operations © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

4. 4 Quiz: Financial Statement Presentation Question 2: Consolidated statement of comprehensive income How would the presentation of the consolidated statement of comprehensive income change if a group has a partly owned subsidiary? © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

5. 5 Quiz: Financial Statement Presentation Question 2:Consolidated statement of comprehensive income Disclose separately in the statement of comprehensive income allocations of profit or loss and comprehensive income attributable to: –non-controlling interest –owners of the parent © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

6. 6 Quiz: Financial Statement Presentation Question 3: Consolidated statement of financial position Instead of presenting its current assets and current liabilities separately from its non-current assets and non-current liabilities, could the an entity choose to present its assets and liabilities in order of their liquidity (ie, no current/non-current split)? © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

7. 7 Quiz: Financial Statement Presentation Question 3: Consolidated statement of financial position Could an entity choose to present its assets and liabilities in order of their liquidity? Entity must make a judgement and conclude that a liquidity presentation provides reliable and more relevant info than the current/non- current split. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

8. 8 Quiz: Financial Statement Presentation Question 4: Consolidated statement of financial position When an entity presents its assets and liabilities in order of their liquidity, is that order ascending or descending? © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

9. 9 Quiz: Financial Statement Presentation Question 4: Consolidated statement of financial position When an entity presents its assets and liabilities in order of their liquidity, is that order ascending or descending? Entity may choose either ascending or descending order of liquidity. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

10. 10 Quiz: Financial Statement Presentation Question 5: Gain on sale of equipment An entity has never before disposed of any property, plant and equipment. Could the entity present this gain as a separate line item in the consolidated statement of comprehensive income described as ‘Extraordinary item—gain on sale of equipment’? © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

11. 11 Quiz: Financial Statement Presentation Question 5: Gain on sale of equipment ‘Extraordinary item’? No. Use of term ‘extraordinary item’ is prohibited. But entity may highlight the gain by presenting it as a separate line item with appropriate description. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

12. 12 Quiz: Financial Statement Presentation Question 6: Trade and other receivables Instead of presenting a single line ‘Trade and other receivables’ in the statement of financial position and then disclosing ‘Trade debtors’ and ‘Prepayments’ separately in the notes, could an entity present these two items as separate line items in the balance sheet? © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

13. 13 Quiz: Financial Statement Presentation Question 6: Trade and other receivables Line items in statement of financial position? Yes. Items that are sufficiently different in nature or function may warrant separate presentation in the statement of financial position. Further subdivision of these line items is not prohibited. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

14. 14 Quiz: Financial Statement Presentation Question 7: Consolidated statement of cash flows In a reconciliation from profit to cash generated from operations in the statement of cash flows has a sub-heading “Cash flow included in investing activities”. Why is this sub-heading presented? © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

15. 15 Quiz: Financial Statement Presentation Question 7: Consolidated statement of cash flows Sub heading “Cash flow included in investing activities”: Why? This is neither required nor prohibited. It explains why gain on sale of equipment has been excluded from cash flows from operating activities. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

16. 16 Quiz: Foreign exchange Question 8: If the presentation currency is different from the functional currency, what additional information, if any, would an entity disclose? © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

17. 17 Quiz: Foreign exchange Question 8: If the presentation currency is different from the functional currency, disclosures: If presentation currency is different from the functional currency, financial statements would state that fact and disclose the functional currency and the reason for using a different presentation currency. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

18. 18 Quiz: Share-based payment Question 9: An entity recognises the goods or services received or acquired in a share- based payment transaction when it receives the goods or services: a.only if the share-based payment is cash- settled b.irrespective of whether it is cash-settled or equity-settled c.only if the share-based payment is equity- settled © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

19. 19 Quiz: Share-based payment Question 9: An entity recognises the goods or services received or acquired in a share- based payment transaction when it receives the goods or services: a.only if the share-based payment is cash- settled b.irrespective of whether it is cash-settled or equity-settled c.only if the share-based payment is equity- settled © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

20. 20 Quiz: Share-based payment Question 10: The fair value of shares granted unconditionally by an entity to its employees are recognised as an expense: a.on grant date (the entity presumes that the employee services have been received) b.in the future periods (the entity presumes that the employee services will be received in the future) c.either (a) or (b) accounting policy choice. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

21. 21 Quiz: Share-based payment Question 10: The fair value of shares granted unconditionally by an entity to its employees are recognised as an expense: a.on grant date (the entity presumes that the employee services have been received) b.in the future periods (the entity presumes that the employee services will be received in the future) c.either (a) or (b) accounting policy choice. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

22. 22 Quiz: Share-based payment Question 11: For equity-settled share-based payment transactions, an entity measures the goods or services received a. at the fair value of the goods and services b. at the fair value of the equity instruments c. at the fair value of the goods or services received, unless that fair value cannot be estimated reliably © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

23. 23 Quiz: Share-based payment Question 11: For equity-settled share-based payment transactions, an entity measures the goods or services received a. at the fair value of the goods and services b. at the fair value of the equity instruments c. at the fair value of the goods or services received, unless that fair value cannot be estimated reliably © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

24. 24 Quiz: Share-based payment Question 12: For equity-settled share-based payment transactions with employees, the fair value of the equity instruments is measured: a.at the grant date b.at the exercise date c.at the end of the vesting period d.at the later of: (i) the end of the vesting period; or (ii) the end of the exercise period © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

25. 25 Quiz: Share-based payment Question 12: For equity-settled share-based payment transactions with employees, the fair value of the equity instruments is measured: a.at the grant date b.at the exercise date c.at the end of the vesting period d.at the later of: (i) the end of the vesting period; or (ii) the end of the exercise period © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

26. 26 Quiz: Share-based payment Question 13: The measurement date for an equity-settled share-based payment transaction with a party that is not an employee is: a.grant date b.exercise date c.when the entity obtains the goods or the counterparty renders service d.when the warranty period for the goods or services expires © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

27. 27 Quiz: Share-based payment Question 13: The measurement date for an equity-settled share-based payment transaction with a party that is not an employee is: a.grant date b.exercise date c.when the entity obtains the goods or the counterparty renders service d.when the warranty period for the goods or services expires © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

28. 28 Quiz: Share-based payment Question 14: In estimating the number of instruments expected to vest for an equity- settled share-based payment transaction: a.no adjustments are made for non-market performance conditions b.adjustments are made for all vesting conditions related solely to employee service or to a non-market performance condition c.adjustments are made only when all vesting conditions have been satisfied © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

29. 29 Quiz: Share-based payment Question 14: In estimating the number of instruments expected to vest for an equity- settled share-based payment transaction: a.no adjustments are made for non-market performance conditions b.adjustments are made for all vesting conditions related solely to employee service or to a non-market performance condition c.adjustments are made only when all vesting conditions have been satisfied © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

30. 30 Quiz: Share-based payment Question 15: For cash-settled share-based payment transactions, measure the goods or services received and the liability: a. at the fair value of the goods or services b. at the fair value of the liability c. at the fair value of the goods or services received or the fair value of the liability (accounting policy choice) © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

31. 31 Quiz: Share-based payment Question 15: For cash-settled share-based payment transactions, measure the goods or services received and the liability: a. at the fair value of the goods or services b. at the fair value of the liability c. at the fair value of the goods or services received or the fair value of the liability (accounting policy choice) © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

32. 32 Quiz: Share-based payment Question 16: An entity granted 10 shares to its employee. Grant date fair value = CU8. No service condition or other vesting conditions (ie vested at grant date). a. Dr Expense CU80; Cr Equity CU80 b. Dr Expense CU80; Cr Liability CU80 c. No entries as there are no service or other vesting conditions © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

33. 33 Quiz: Share-based payment Question 16: An entity granted 10 shares to its employee. Grant date fair value = CU8. No service condition or other vesting conditions (ie vested at grant date). a. Dr Expense CU80; Cr Equity CU80 b. Dr Expense CU80; Cr Liability CU80 c. No entries as there are no service or other vesting conditions © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

34. 34 Quiz: Share-based payment Question 17: An entity granted 10 shares to its employee. Grant date fair value = CU8. Vests only if employee remains for 2 years. Employee is expected to remain for +2 yrs. The entity accounts for the transaction: a.Year 1: Dr Expense CU40; Cr Equity CU40; Year 2: Dr Expense CU40; Cr Equity CU40 b.Year 1: Dr Expense CU80; Cr Liability CU80 c.Year 2: Dr Expense CU80; Cr Liability CU80 © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

35. 35 Quiz: Share-based payment Question 17: An entity granted 10 shares to its employee. Grant date fair value = CU8. Vests only if employee remains for 2 years. Employee is expected to remain for +2 yrs. The entity accounts for the transaction: a.Year 1: Dr Expense CU40; Cr Equity CU40; Year 2: Dr Expense CU40; Cr Equity CU40 b.Year 1: Dr Expense CU80; Cr Liability CU80 c.Year 2: Dr Expense CU80; Cr Liability CU80 © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

36. 36 Quiz: Share-based payment Question 18: On 1/1/20X1 entity granted 10 cash-settled share appreciation rights (SARs) to its employee. Grant date fair value = CU10 per SAR. 31/12/20X1 fair value = CU12 per SAR. 31/12/20X2 settlement = CU150 (in total) No service condition or other conditions (ie vested at grant date). © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

37. 37 Quiz: Share-based payment Question 18: continued The entity accounts for the transaction: a. 1/1/20X1: Dr Expense CU100; Cr Liability CU100 31/12/20X1: Dr Expense CU20; Cr Liability CU20 31/12/20X2: Dr Expense CU30; Cr Liability CU30 b. 1/1/20X1: No entry 31/12/20X1: No entry 31/12/20X2: Dr Expense CU150; Cr Liability CU150 c. No entries in any year because the transaction does not have commercial substance. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

38. 38 Quiz: Share-based payment Question 18: continued The entity accounts for the transaction: a. 1/1/20X1: Dr Expense CU100; Cr Liability CU100 31/12/20X1: Dr Expense CU20; Cr Liability CU20 31/12/20X2: Dr Expense CU30; Cr Liability CU30 b. 1/1/20X1: No entry 31/12/20X1: No entry 31/12/20X2: Dr Expense CU150; Cr Liability CU150 c. No entries in any year because the transaction does not have commercial substance. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

39. © 2012 IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.ifrs.org 39 Questions or comments? Expressions of individual views by members of the IASB and its staff are encouraged. The views expressed in this presentation are those of the presenter. Official positions of the IASB on accounting matters are determined only after extensive due process and deliberation. 39 © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

40. © 2011 IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.ifrs.org 40 The requirements are set out in International Financial Reporting Standards (IFRSs), as issued by the IASB at 1 January 2012 with an effective date after 1 January 2012 but not the IFRSs they will replace. The IFRS Foundation, the authors, the presenters and the publishers do not accept responsibility for loss caused to any person who acts or refrains from acting in reliance on the material in this PowerPoint presentation, whether such loss is caused by negligence or otherwise. 40 © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org