annual financial reporting update · 2010-07-08 · items of income and expense statement of...

1

Annual Financial Reporting Update8 July 2010

copy 2008-10 Nelson Consulting Limited 1

Nelson LamNelson Lam 林智遠林智遠MBA MSc BBA ACA ACIS CFA CPA(Aust) CPA(US) FCCA FCPA FHKIoD MSCA

Effective for 2009Effective for 2009--12 Year12 Year--EndEndSelected new interpretations and amendments to HKFRSs

bull Amendments to HKFRS 2 Vesting Conditions and Cancellationsbull HKFRS 8 Operating Segments

Effective for periods beginning onafter

1 Jan20091 Jan 2009

Selected new interpretations and amendments to HKFRSs


bull HKFRS 8 Operating Segmentsbull HKAS 1 (Revised) Presentation of Financial Statementsbull HKAS 23 (Revised) Borrowing Costsbull Amendments to HKFRS 1 and HKAS 27 Cost of an Investment in

a Subsidiary Jointly Controlled Entity or Associatebull Amendments to HKAS 32 and HKAS 1 Puttable Financial

Instruments and Obligations Arising on Liquidationbull HK(IFRIC) 13 Customer Loyalty Programmesbull HK(IFRIC) 15 Agreements for the Construction of Real Estate

1 Jan20091 Jan20091 Jan2009 1 Jan2009

1 Jan2009

1 Jul 20081 Jan2009


bull HK(IFRIC) 16 Hedges of a Net Investment in a Foreign Operationbull Annual improvements to HKFRSs 2008bull HK(IFRIC) 18 Transfers of Assets from Customers

bull Amendments to HKFRS 7 Improving Disclosure about Financial Instruments

bull Amendments to HK(IFRIC) 9 and HKAS 39 Embedded Derivatives

1 Oct 20081 Jan20091 Jul 2009(trans date)1 Jan2009

Ended onafter30 Jun 2009

Updated from HKICPA ldquoHKFRS Updaterdquo 6 Nov 2009

2

Effective Effective for 2010for 2010--12 Year12 Year--EndEndSelected new interpretations and amendments to HKFRSs

bull HKFRS 1 (Revised) First-time Adoption of HKFRSbull Amendments to HKFRS 1 Additional Exemptions for First time


1 Jul 20091 Jan 2010



bull Amendments to HKFRS 1 Additional Exemptions for First-time Adopters

bull Amendments to HKFRS 2 Share-based Payment ndash Group Cash-settled Share-based Payment Transactions

bull HKAS 27 (Revised) Consolidated and Separate Financial Statements

bull HKFRS 3 (Revised) Business Combinationbull Amendments to HKAS 39 Eligible Hedged Itemsbull HK(IFRIC) 17 Distributions of Non-cash Assets to Owners

A l I t t HKFRS 2009

1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010


bull Annual Improvements to HKFRSs 2009

bull HK(IFRIC) Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments

bull HKFRS for Private Entities (or IFRS for SME)bull Amendments to HK Interpretation 4 Leases ndash Determination of

the Length of Lease Term in respect of Hong Kong Land Leases

1 Jan 2010(unless specified)1 Jan 2010

Effective upon issueNot specified


Effective Effective after 2010after 2010--12 Year12 Year--EndEndSelected new interpretations and amendments to HKFRSs

bull Amendments to HKAS 32 Classification of Rights Issues


1 Feb2010



bull HKAS 24(Revised) Related Party Disclosuresbull HKFRS 9 Financial Instrumentsbull Amendments to HK(IFRIC) 14 HKAS 19 mdashThe Limit on a

Defined Benefit Asset Minimum Funding Requirements and their Interaction

bull Amendment to HKFRS 1 First-time Adoption of Hong Kong Financial Reporting Standards ndash Limited Exemption from Comparative HKFRS 7 Disclosures for First-time Adopters


1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011


bull Annual Improvements to HKFRSs 2010 1 Jan 2011(unless specified)


bull AB 4 Guidance on the Determination of Realised Profits and Losses in the Context of Distributions under the Hong Kong Companies Ordinance

3

Todayrsquos Agenda

Update of Amendments to HKFRS effective for 201011

Recap of Amendments to HKFRS effective from 200910


Update of Amendments to HKFRS effective after 201011

Presentation of Financial Statements(HKAS 1 Revised in 2007)


4

Complete Set of Financial Statements

bull A complete set of financial statements comprisesa) a statement of financial position as at the end of the

period

Previously we call it ldquoBalance Sheetrdquoperiod

b) a statement of comprehensive income for the periodc) a statement of changes in equity for the periodd) a statement of cash flows for the periode) notes comprising a summary of significant accounting

policies and other explanatory information andf) a statement of financial position as at the beginning

of the earliest comparative period

Previously we call it ldquoIncome Statementrdquo

3-column ldquobalance sheetrdquo


of the earliest comparative periodbull when an entity

‒ applies an accounting policy retrospectively or ‒ makes a retrospective restatement of items in its financial statements or

bull when it reclassifies items in its financial statements

bull An entity may use titles for the statements other than those used in HKAS 1

sheet


Statement of Financial Position as at the end of the period

Complete Set of Financial Statements Previous titleor changes

Previous title ldquoBalance Sheetrdquo

To use a single statement to present all items of income and expense

Statement of Comprehensive Income for the period

Statement of Changes in Equity for the period

No title change

No title change(but restructured)

New statement

To use two statements to present all items of income and expense


Income Statement for the period


Statement of Cash Flows for the period

Notes

A statement of financial position as at the beginning of the earliest comparative period if required

Previous titleldquoCash Flow Statementrdquo

(but restructured)

No title change

New requirement

Sourced from Intermediate Financial Reporting (2009) by Nelson Lam and Peter Lau

5

Statement of Comprehensive Income

bull Other comprehensive incomendash Comprises items of income and expense

(including reclassification adjustments) that are

Components of other

comprehensive income

( g j )not recognised in profit or loss as required or permitted by other HKFRSs


Statement of Comprehensive IncomeExample

bull The components of other comprehensive income include1 changes in revaluation surplus recognised in accordance with HKAS 16

Property Plant and Equipment

Components of other


2 changes in revaluation surplus recognised in accordance with HKAS 38 Intangible Assets

3 actuarial gains and losses on defined benefit plans recognised in accordance with HKAS 19 Employee Benefits

4 gains and losses arising from translating the financial statements of a foreign operation in accordance with HKAS 21 The Effects of Changes in Foreign Exchange Rates

5 gains and losses on remeasuring available-for-sale (AFS) financial assets in


5 gains and losses on remeasuring available for sale (AFS) financial assets in accordance with HKAS 39 Financial Instruments Recognition and Measurement (amended by HKFRS 9 and the category of ldquoAFSrdquo is deleted with a new category of ldquofair value through other comprehensive income) and

6 the effective portion of gains and losses on hedging instruments in a cash flow hedge recognised in accordance with HKAS 39


6


bull Other comprehensive incomendash their components classified by nature to be

reported in the statement of comprehensive

Components of other


p pincome and to be presented either 1 net of related tax effects or2 before related tax effects with one amount

shown for the aggregate amount of income tax relating to those components

ndash the amount of income tax relating to each component including reclassification adjustments either


adjustments either 1 in the statement of comprehensive income or 2 in the notes


bull Other comprehensive income also comprises ldquoreclassification adjustmentsrdquo ndash Reclassification adjustments are defined as

Components of other


Reclassification adjustments are defined asbull amounts reclassified to profit or loss in the

current period that were recognised in other comprehensive income in the current or previous periods

bull An entity is required to disclose reclassification adjustments relating to components of other comprehensive income either


ndash in the statement of comprehensive incomeor

ndash in the notes (then presents the components of other comprehensive income after any related reclassification adjustments in the statement of comprehensive income)

7


bull Reclassification adjustments arise for example1 on disposal of a foreign operation (see HKAS 21)2 on derecognition of available-for-sale financial assets in accordance with

Components of other


HKAS 39 (amended by HKFRS 9 amp no reclassification adjustment then) and3 when a hedged forecast transaction affects profit or loss in accordance with

HKAS 39 in relation to cash flow hedgesbull Reclassification adjustments do not arise on

1 changes in revaluation surplus recognised in accordance with HKAS 16 or 2 changes in revaluation surplus recognised in accordance with HKAS 38 or 3 actuarial gains and losses on defined benefit plans recognised in accordance

ith HKAS 19


with HKAS 19 bull These two components are recognised in other comprehensive income and are

not reclassified to profit or loss in subsequent periods Changes in revaluation surplus may be transferred to retained earnings in subsequent periods as the asset is used or when it is derecognised Actuarial gains and losses are reported in retained earnings in the period that they are recognised as other comprehensive income

Statement of Comprehensive IncomeCase


8




Consolidated statement of comprehensive income


9


Consolidated Statement of Comprehensive Income 2009Consolidated Statement of Comprehensive Income 2009



Consolidated Statement of Comprehensive Income 2009


10

Improving Disclosures about FinancialInstruments (Amendments to HKFRS 7)


Amendments to HKFRS 7 in 032009

bull The aim of the amendments was to enhance disclosures about ndash fair value and ndash liquidity risk

bull SFAS 157 of US FASB requires disclosures that are based on a three-level fair value hierarchy for the inputs used in valuation techniques to measure fair value

bull IASB concludedndash that such a hierarchy would improve comparability between

entities about the effects of fair value measurements as well as


increase the convergence of IFRSs and US GAAP ndash to require disclosures for financial instruments on the basis of a

fair value hierarchy

11

1 Fair Value Disclosure

bull If there has been a change in valuation techniquendash the entity shall disclose that change and the

f ki itreasons for making itbull A fair value hierarchy for disclosure is also required

ndash classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements



bull The fair value hierarchy shall have the following levels

t d i ( dj t d) i ti k t fa quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)

b inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (ie as prices) or indirectly (ie derived from prices) (Level 2) and

c inputs for the asset or liability that are not based b bl k t d t ( b bl


on observable market data (unobservable inputs) (Level 3)

12


bull The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety shall be determined on the basis of the lowest level input that isdetermined on the basis of the lowest level input that is significant to the fair value measurement in its entirety ndash For this purpose the significance of an input is assessed

against the fair value measurement in its entiretyndash If a fair value measurement uses observable inputs that

require significant adjustment based on unobservable inputs bull that measurement is a Level 3 measurement


ndash Assessing the significance of a particular inputto the fair value measurement in its entirety requires judgement considering factors specificto the asset or liability


bull For fair value measurements recognised in the statement of financial position an entity shall disclose for each class of financial instrumentsdisclose for each class of financial instruments1 the level in the fair value hierarchy2 any significant transfers between Level 1 and

Level 2 of the fair value hierarchy (with other details)

3 Further details for Level 3bull An entity shall present the quantitative disclosures


as required above in tabular format unless another format is more appropriate

13


bull Further details for Level 31 total gains or losses for the period recognised in profit or loss and a

description of where they are presented in the statement ofdescription of where they are presented in the statement of comprehensive income or the separate income statement (if presented)

2 total gains or losses recognised in other comprehensive income3 purchases sales issues and settlements (each type of movement

disclosed separately)4 transfers into or out of Level 3

(eg transfers attributable to changes in theobservability of market data) and the reasons


for those transfers (If significant separate transfers into and out of Level 3)

5 the fact and the effect of changes (for the inputsto assumptions if their changes affect fair valuesignificantly)

1 Fair Value DisclosureCase

Annual report 2009


14


Annual report 2009



Annual report 2009bull Effective from 1 January 2009 the Group adopted the amendment to HKFRS 7

for financial instruments that are measured in the statement of financial position at fair value which requires disclosure of fair value measurements by level of the following fair value measurement hierarchya) Quoted prices (unadjusted) in active markets for identical assets or

liabilities (level 1)b) Inputs other than quoted prices included within level 1 that are observable


b) Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (that is as prices) or indirectly (that is derived from prices) (level 2) and

c) Inputs for the asset or liability that are not based on observable market data (that is unobservable inputs) (level 3)

bull As at 31 December 2009 the fair value measurement of the Grouprsquos financial assets ndash available-for-sale financial assets is classified in level 3

15

2 Liquidity Risk Disclosure

bull An entity shall disclosea a maturity analysis for non-derivative financial liabilities

(i l di i d fi i l t t t ) th t h th(including issued financial guarantee contracts) that shows the remaining contractual maturities

b a maturity analysis for derivative financial liabilities The maturity analysis shall include the remaining contractual maturities for those derivative financial liabilities for which contractual maturities are essential for an understanding of the timing of the cash flows For example this would be the case fori i t t t ith i i t it f fi


i an interest rate swap with a remaining maturity of five years in a cash flow hedge of a variable rate financial asset or liability

ii all loan commitmentsc a description of how it manages the liquidity risk inherent in (a)

and (b)

HKFRS 7 Amendments

Effective Datebull An entity shall apply those amendments for annual

periods beginning on or after 1 January 2009periods beginning on or after 1 January 2009 bull In the first year of application

ndash an entity need not provide comparative information for the disclosures required by the amendments

bull Earlier application is permitted ndash If an entity applies the amendments for an earlier


period it shall disclose that fact

16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17

Consolidated Financial Statements(HKAS 27 Revised in 2008)


HKAS 27 (Revised in 2008)

bull Scope and definitionsbull Presentation of consolidated financial statementsbull Scope of consolidated financial statementsbull Consolidation proceduresbull Loss of controlbull Accounting in separate financial statements

Significant changesNew section


18

Consolidation Procedures

bull Consolidation procedures are similar to previous standard but helliphellip

bull Minority interests renamed as ldquonon-controlling interestsrdquobull Minority interests renamed as non-controlling interests which

ndash is the equity in a subsidiary not attributable directly or indirectly to a parent



Non-controlling Interests

bull Profit or loss and each component of other h i i tt ib t dcomprehensive income are attributed

ndash to the owners of the parent and ndash to the non-controlling interests

bull Total comprehensive income is attributed ndash to the owners of the parent and ndash to the non-controlling interests

bull even if this results in the non-controlling interests A d d


ghaving a deficit balanceAmended

19


bull Most critical helliphellipndash Changes in a parentrsquos ownership interest in a

subsidiary that do not result in a loss of controlsubsidiary that do not result in a loss of control bull are accounted for as equity transactions (ie

transactions with owners in their capacity as owners)

bull ie no gain or loss on disposal of interests in subsidiary can be recognised in profit or loss if the subsidiary is still a subsidiary


Consolidation ProceduresExample

Entity A holds 80 of Entity X since its incorporation and their financial statements are set out below

Consol

Disposed of 20 interest at $50

A X

Property plant amp equipment 3500 2000 Interest in subsidiary 80 -Net current liabilities (1000) (2600)

Net assets 2580 (600)

pre-change

5500 -

(3600)

1900


Share capital (200) (100)Reserves (2380) 700

(2580) 600

Non-controlling interests(Assume fair value = carrying amount)

(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X



bull In such circumstances the carrying amounts of the controlling and non-controlling interests shall be adjusted to reflect the changes in their relative interests in the subsidiary

bull Any difference between minus the amount by which the non-controlling interests are

dj t d dNCI to be dj t d (120)



(200)(1820)(2020)

120(1900)


(2580) 600

adjusted andminus the fair value of the consideration paid or received

shall be recognised directly in equity and attributed to the owners of the parent

adjusted (120)Consideration 50Difference to equity 170



Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control

bull Specific requirements introduced when a parent loses control of a subsidiary

If t l t l f b idi itndash If a parent loses control of a subsidiary ita) derecognises the assets (including any goodwill) and liabilities of the

subsidiary at their carrying amounts at the date when control is lostb) derecognises the carrying amount of any non-controlling interests in

the former subsidiary at the date when control is lost (including any components of other comprehensive income attributable to them)

c) recognisesi) the fair value of the consideration received if any from the


i) the fair value of the consideration received if any from the transaction event or circumstances that resulted in the loss of control and

ii) if the transaction that resulted in the loss of control involves a distribution of shares of the subsidiary to owners in their capacity as owners that distribution

Loss of Control


If t l t l f b idi itndash If a parent loses control of a subsidiary itd) recognises any investment retained in the former subsidiary at its

fair value at the date when control is loste) reclassifies to profit or loss or transfers directly to retained earnings

if required in accordance with other HKFRSs the amounts identified in HKAS 2735 (discussed in next slide) and

f) recognises any resulting difference as a gain or loss in profit or loss attributable to the parent


attributable to the parent

22

Loss of Control

bull If a parent loses control of a subsidiary ndash the parent shall account for all amounts recognised in

other comprehensive income in relation to thatother comprehensive income in relation to that subsidiary bull on the same basis as would be required if the parent

had directly disposed of the related assets or liabilities

bull Therefore if a gain or loss previously recognised in other comprehensive income would be reclassified to profit or loss on the disposal of the related assets or


liabilities ndash the parent reclassifies the gain or loss from equity to

profit or loss (as a reclassification adjustment) when it loses control of the subsidiary

Loss of Control

Think about 2 different cases with similar figures

Example

HK$ Sub A Sub B

Sale proceeds 100 100

Carrying amount of the subsidiaryrsquos net assets in consolidated financial statements 100 100


Anything recognised in profit or loss

What is the further information you have

to ask

23

Loss of Control


Example

HK$ Sub A Sub B

What if helliphellip

Representing- Revalued amount of available-for-sale 100




- Revalued amount of PPE 100Revaluation reserves 20 20


Loss of Control

A parent loses control of a subsidiary and the subsidiary has the following assets

Example

The parent shall reclassify togndash The subsidiary has available-for-

sale financial assets

The parent shall reclassify to profit or loss the gain or loss previously recognised in other comprehensive income in relation to those assets

ndash The subsidiary has property plant and equipment with

l ti l i l

The parent transfers the revaluation surplus directly to retained earnings when it loses


revaluation surplus previously recognised in other comprehensive income

retained earnings when it loses control of the subsidiarybull since the revaluation surplus

would be transferred directly to retained earnings on the disposal of the asset

24

Loss of Control


Example

HK$ Sub A Sub B







Revaluation reserves relating to available-for-sale reclassified to profit or loss

Revaluation reserves relating to PPE transferred directly to retained earnings

Business Combinations(HKFRS 3 Revised in 2008)


25

Introduction

bull The objective of HKFRS 3 (revised 2008) is ndash to improve the relevance reliability and comparability of

the information that a reporting entity provides in its

Scopethe information that a reporting entity provides in its financial statements about a business combination and its effects

bull To accomplish that HKFRS 3 establishes principles and requirements for how the acquirer a) recognises and measures in its financial statements the

identifiable assets acquired the liabilities assumed and any non-controlling interest in the acquiree

Application of the method

Method of accounting


b) recognises and measuresbull the goodwill acquired in the business combination or bull a gain from a bargain purchase and

c) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination

What is it

The Acquisition Method

Scope


bull An entity shall account for each business combination by applying the acquisition method (HKFRS 34)


bull Applying the acquisition method requires a) identifying the acquirer b) determining the acquisition date c) recognising and measuring


) g g gbull the identifiable assets acquired bull the liabilities assumed and bull any non-controlling interest in the acquiree and

d) recognising and measuring bull goodwill or bull a gain from a bargain purchase (HKFRS 35)

26


bull Recognising and measuring the identifiable assets acquired the liabilities assumed and any non-controlling interest in the acquiree

bull The acquirerrsquos application of the recognition principle and conditions may result inndash recognising some assets and liabilities that the

acquiree had not previously recognised as assets and liabilities in its financial statements




Example

bull An operating lease in which the acquiree is the lessee is normally not recognised as assets or liabilities except for

ndash if the terms of an operating lease are favourable relative to market termsthe acquirer shall recognise an intangible asset

ndash if the terms are unfavourable relative to market termsthe acquirer shall recognise a liability (HKFRS 3B29)


bull If the terms of an operating lease in which the acquiree is the lessor are either favourable or unfavourable when compared with market terms

ndash The acquirer does not recognise a separate asset or liability(HKFRS 3B42)

27



bull The acquirer shall measure the identifiable assets acquiredand the liabilities assumed

ndash at their acquisition-date fair values (HKFRS 318)

bull For each business combination the acquirer shall measureany non-controlling interest in the acquiree either

ndash at fair value or

Affect acquisition in stages

New alternative (ldquofull goodwill methodrdquo)


ndash at the non-controlling interestrsquos proportionate share of the acquireersquos identifiable net assets (HKFRS 319) Existing practice

( g )

The Acquisition MethodExample

Existing practice New alternative(ldquoFull goodwill methodrdquo)

HK$Parentrsquos interest ndash 75 of fair value f id tifi bl t t $ 75

HK$Fair value of identifiable net assets of Entity A 100Purchase 75 interest in Entity A (consideration is $120) 120 HK$

HK$

Fair value of Entity A as a whole ($120 divide 75) 160


Goodwill ($120 - $75) 45

of identifiable net assets ($100 times 75) 75Non-controlling interest ($100 times 25)

(at its proportionate share of Entity Arsquos identifiable net assets)

25

Goodwill ($160 ndash $100) 60

NCI ($160 times 25)(at fair value)

40

28


bull Recognising and measuring goodwill or a gain from a bargain purchase

Critical Amendment

bull The acquirer shall recognise goodwill as of the acquisition date measured as the excess of (a) over (b) below a) the aggregate of

i) the consideration transferred measured in accordance with HKFRS 3 which generally requires acquisition-date fair value

ii) the amount of any non-controlling interest in the acquireeIf fair value is adopted it will



ii) the amount of any non controlling interest in the acquiree measured in accordance with HKFRS 3 and

iii) in a business combination achieved in stages the acquisition-date fair value of the acquirerrsquos previously held equity interest in the acquiree

b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed measured in accordance with HKFRS 3 (HKFRS 3 32)

If fair value is adopted it will affect the amount of goodwill

Practices changed


Existing practice

HK$Parentrsquos interest ndash 75 of fairfidentifiable net assets

HK$Fair value of identifiable net a

100Purchase 75 interest in Entit(consideration is $120) 120HK$

Parentrsquos interest ndash 75 of fair value of identifiable net assets ($100 times 75) 75

HK$Fair value of identifiable net assets of Entity A 100Purchase 75 interest in Entity A (consideration is $120) 120 a(i)

b


Goodwill 45

de t ab e et assetsNon-controlling interest 25

145

Goodwill ($120 - $75) 45

o de t ab e et assets ($ 00 5) 5Non-controlling interest ($100 times 25)


$$(120 + 25) ndash $100

= $45

a(ii)

29



HK$Parentrsquos interest ndash 75 of fair value of identifiable net assets ($100 times 75) 75


HK$

Fair value of Entity A ($120 divide 75) 160a(i)

b


Goodwill ($120 - $75) 45



25

Goodwill ($160ndash$100) 60


40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)


bull Additional guidancendash Amended practices on business combination achieved in stages

bull In a business combination achieved in stages the acquirer shall

ndash remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and

ndash recognise the resulting gain or loss if any in profit or loss (HKFRS 342)


30



bull In prior reporting periods the acquirer may have recognised changes in the value of its equity interest in the acquiree in other comprehensive income (for example because the investment was classified as available for sale)

ndash If so the amount that was recognised in other comprehensive income shall be recognised on the same basis as would be required if the acquirer had disposed directly of the previously held equity interest (HKFRS 342)In other words ldquothe amount recognised directly in other comprehensive


ndash In other words the amount recognised directly in other comprehensive income is reclassified and included in the calculation of the gain or loss recognised in profit or lossrdquo (KPMG-UK 200801)

Improvements to HKFRSs 2009


31

Introduction

bull Annual Improvement Project ndash A vehicle for making non-urgent but necessary

amendments to IFRS (and consequentially HKFRSs)amendments to IFRS (and consequentially HKFRSs)ndash Introduced by the IASB in 2007 and issued each yearndash Improvement to HKFRSs 2009 is the one finalised in

2009bull The project has amended

ndash 10 HKFRSs and 2 HK(IFRIC) Interpretations


Summary

Amendments toHKFRS 2 Share-based PaymentHKFRS 5 Non-current Assets Held for Sale and Discontinued OperationsHKFRS 5 Non-current Assets Held for Sale and Discontinued OperationsHKFRS 8 Operating SegmentsHKAS 1 Presentation of Financial StatementsHKAS 7 Statement of Cash FlowsHKAS 17 LeasesHKAS 18 RevenueHKAS 36 Impairment of Assets


HKAS 38 Intangible AssetsHKAS 39 Financial Instruments Recognition and MeasurementHK(IFRIC)-Int 9 Reassessment of Embedded DerivativesHK(IFRIC)-Int 16 Hedges of a Net Investment in a Foreign Operation

32

Amendments to HKAS 1

HKAS 1 Presentation of Financial Statementsbull An entity shall classify a liability as current when

a) it expects to settle the liability in its normal operating cyclea) it expects to settle the liability in its normal operating cycleb) it hold the liability primarily for the purpose of tradingc) The liability is due to be settled within 12 months after the reporting

period ord) It does not have an unconditional right to defer settlement of the

liability for at least 12 months after the reporting period (see HKAS 173)


bull All other liabilities shall be classified as non-current

Terms of a liability that could at the option of the counterparty result in its settlement by the issue of equity instruments do not affect its classification

New requirements


HKAS 1 Presentation of Financial Statementsbull The IASB concluded that classifying the liability

th b i f th i t t t f h th tndash on the basis of the requirements to transfer cash or other assets ndash rather than on settlement better reflects the liquidity and solvency

position of an entity and therefore it decided to amend IAS 1 (HKAS 1) accordingly



New requirements

33


Transition and Effective Datebull HKAS 169 was amended by Improvements to

HKFRSs issued in May 2009

No specific transition stated

HKFRSs issued in May 2009bull An entity shall apply that amendment for annual

periods beginning on or after 1 January 2010 bull Earlier application is permitted bull If an entity applies the amendment for an earlier


Imply Imply RetrospectivelyRetrospectively

Comparatives should be reclassified



HKAS 7 Statements of Cash Flowsbull HKAS 716 is amended by adding the following underlined

sentencesentencendash The separate disclosure of cash flows arising from investing

activities is important because the cash flows represent the extent to which expenditures have been made for resources intended to generate future income and cash flows

ndash Only expenditures that result in a recognised asset in the statement of financial position are eligible for classification as investing activities


as investing activities helliphellip

p

bull Examples of such expenditures arethose for exploration and evaluation activities which HKFRS 6 permits to be recognised as either an asset or an expense depending on the entityrsquos previous accounting policies for those expendituresexpenditures on advertising and promotional activities staff training and research and development could also raise the same issue

34


Effective Datebull HKAS 716 was amended by Improvements to



HKFRSs issued in May 2009 bull An entity shall apply that amendment for annual







HKAS 17 Leasesbull Leases of land and of buildings are classified as operating or finance leases in

the same way as leases of other assets However a characteristic of land is that

Do you remember these 2 paragraphs in HKAS 17

the same way as leases of other assets However a characteristic of land is that it normally has an indefinite economic life and if title is not expected to pass to the lessee by the end of the lease term the lessee normally does not receive substantially all of the risks and rewards incidental to ownership in which case the lease of land will be an operating lease A payment made on entering into or acquiring a leasehold that is accounted for as an operating lease represents prepaid lease payments hellip

bull The land and buildings elements of a lease of land and buildings are considered separately for the purposes of lease classification If title to both elements is


p y p pexpected to pass to the lessee by the end of the lease term both elements are classified as a finance lease helliphellip When the land has an indefinite economic life the land element is normally classified as an operating lease unless title is expected to pass to the lessee by the end of the lease term in accordance with para 14 The buildings element is classified as a finance or operating lease in accordance with para 7ndash13

35







bull As part of its annual improvements project in 2007 the IASB reconsidered the decisions it made in 2003 specifically the perceived inconsistency between ‒ the general lease classification guidance in HKAS

177ndash13 and‒ the specific lease classification guidance in HKAS

17 14 and 15 related to long-term leases of land and



1714 and 15 related to long-term leases of land and buildings

bull The IASB concluded that the guidance in HKAS 1714 and 15 might lead to a conclusion on the classification of land leases that does not reflect the substance of the transaction


HKAS 17 Leasesbull HKAS 1714 and 15 are deleted and HKAS 1715A is added as follows

Wh l i l d b th l d d b ildi l t titndash When a lease includes both land and buildings elements an entity assesses the classification of each element as a finance or an operating lease separately in accordance with HKAS 177ndash13

ndash In determining whether the land element is an operating or a finance lease an important consideration is that land normally has an indefinite economic life


36

Amendments to HKAS 17Example

bull IASB describes in HKAS 17BC8B and BC8C thatndash For example consider a 999-year lease of land and buildings

bull In this situation significant risks and rewards associated with the landIn this situation significant risks and rewards associated with the land during the lease term would have been transferred to the lessee despite there being no transfer of title

bull The Board noted that the lessee in leases of this type will typically be in a position economically similar to an entity that purchased the land and buildings

bull The present value of the residual value of the property in a lease with a term of several decades would be negligible

bull The Board concluded that the accounting for the land element as a


bull The Board concluded that the accounting for the land element as a finance lease in such circumstances would be consistent with the economic position of the lessee

Unclear how long the lease term must Unclear how long the lease term must be for the IASB to conclude that a be for the IASB to conclude that a

lessee and a purchaser are in the same lessee and a purchaser are in the same economic positioneconomic position


Transitional Provisionsbull An entity shall reassess the classification of land

elements of unexpired leases at the date it adoptsApplied Applied

RetrospectivelyRetrospectivelyelements of unexpired leases at the date it adopts the amendments referred to in HKAS 1769A (the current amendment) on the basis of information existing at the inception of those leases

bull It shall recognise a lease newly classified as a finance lease retrospectively in accordance with HKAS 8

RetrospectivelyRetrospectively


37


Transitional Provisionsbull However if an entity does not have the

information necessary to apply the amendmentsApplied Applied

RetrospectivelyRetrospectivelyinformation necessary to apply the amendments retrospectively it shalla apply the amendments to those leases on the basis

of the facts and circumstances existing on the date it adopts the amendments and

b recognise the asset and liability related to a land lease newly classified as a finance lease at their fair values on that date any difference between those fair values is recognised in retained earnings



fair values is recognised in retained earnings


Effective Datebull HKAS 1714 and 15 were deleted and HKAS

17 15A and 68A were added as part ofApplied Applied

RetrospectivelyRetrospectively1715A and 68A were added as part of Improvements to HKFRSs issued in May 2009

bull An entity shall apply those amendments for annual periods beginning on or after 1 January 2010

bull Earlier application is permitted bull If an entity applies the amendments for an earlier





38

HKAS 17 Classification of Leases

bull Whether a lease is a finance lease or an operating lease depends on the substance of the transaction rather than the form of the contract

bull Indicators of a finance lease includeIndicators of a finance lease include

FinanceLease

a) the lease transfers ownership of the asset to the lessee by the end of the lease term

b) the lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain at the inception of the lease that the option will be exercised


Operating Lease

c) the lease term is for the major part of the economic life of the asset even if title is not transferred

d) at the inception of the lease the present value of the minimum lease payments amounts to at leastsubstantially all of the fair value of the leased asset and

e) the leased assets are of such a specialised nature that only the lessee can use them without major modifications




FinanceLease Major part

What isLease term Economic lifeInception of a leaseMinimum lease payment helliphellip


Operating Lease


d) at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset and

Substantially all

39


Galaxy Entertainment Group Limited(2009 Annual Report)

Case

( p )ndash The Group has early adopted HKAS 17

(Amendment) Leases which is mandatory for accounting periods beginning on and after 1 January 2010 hellip

ndash HKAS 17 (Amendment) requires the Group to reassess the classification of leasehold land as finance or operating lease


p gbull Upon adoption the opening balances have

been assessed and classified accordingly bull Current year addition to leasehold land has

been classified based on the underlying criteria of HKAS 17

Amendments to HKAS 17Case

bull Note 2 states (for early adoption of Amendment to HKAS 17 in 2009)

Financial Statements 2009

ndash The early adoption of the amendment to HKAS 17 has resulted in a change in accounting policy for the classification of leasehold land of the Group

ndash Previously leasehold land was classified as an operating lease and stated at cost less accumulated amortisation

ndash In accordance with the amendment leasehold land is classified as a finance lease and stated at cost less accumulated depreciation if substantially all risks and rewards of the leasehold land have been transferred to the Group bull As the present value of the minimum lease payments (ie the transaction


As the present value of the minimum lease payments (ie the transaction price) of the land held by the Group amounted to substantially all of the fair value of the land as if it were freehold

the leasehold land of the Group has been classified as a finance lease The amendment has been applied retrospectively to unexpired leases at the date of adoption of the amendment on the basis of information existing at the inception of the leases The amendment does not apply to the leasehold land disposed of by the Group in prior years

40


HKAS 18 Revenuebull Appendix to HKAS 18 is added with Example 21 Determining whether

an entity is acting as a principal or as an agent (2009 amendment)an entity is acting as a principal or as an agent (2009 amendment)bull HKAS 188 states that

ndash ldquoin an agency relationship the gross inflows of economic benefits include amounts collected on behalf of the principal and which do not result in increases in equity for the entity

ndash The amounts collected on behalf of the principal are not revenue ndash Instead revenue is the amount of commissionrdquo

D t i i h th tit i ti i i l t


bull Determining whether an entity is acting as a principal or as an agent requires judgement and consideration of all relevant facts and circumstances


HKAS 18 Revenuebull An entity is acting as a principal when it has exposure to the significant

risks and rewards associated with the sale of goods or the rendering ofrisks and rewards associated with the sale of goods or the rendering of services

bull Features that indicate that an entity is acting as a principal includea the entity has the primary responsibility

bull for providing the goods or services to the customer or bull for fulfilling the order

for example by being responsible for the acceptability of the products or i d d h d b th t


services ordered or purchased by the customerb the entity has inventory risk before or after the customer order during

shipping or on returnc the entity has latitude in establishing prices either directly or indirectly for

example by providing additional goods or services andd the entity bears the customerrsquos credit risk for the amount receivable from the

customer

41


HKAS 18 Revenuebull An entity is acting as an agent when

it d t h t th i ifi t i k d dndash it does not have exposure to the significant risks and rewards associated with the sale of goods or the rendering of services

bull One feature indicating that an entity is acting as an agent is that ndash the amount the entity earns is predetermined being either

bull a fixed fee per transaction or bull a stated percentage of the amount billed to the customer


As it is an additional example As it is an additional example no transition and effective no transition and effective

date are stateddate are stated

Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011




Related Party Disclosures (HKAS 24)


43

Key Amendments

bull Related party ndash Definition changebull Government-related entities ndash Definition and Exemptionbull Commitment is included for disclosurebull Commitment is included for disclosure


Definition of a Related Party

bull A related party is a person or entity that is related to the entity that is preparing its financial statements (ie reporting entity)a) A person or a close member of that personrsquos family is related to a reportinga) A person or a close member of that person s family is related to a reporting

entity if that personi has control or joint control over the reporting entityii has significant influence over the reporting entity oriii is a member of the key management personnel of the reporting entity or

of a parent of the reporting entity


44


bull A related party is a person or entity that is related to the entity that is preparing its financial statements (ie reporting entity)b) An entity is related to a reporting entity if any of the following conditionsb) An entity is related to a reporting entity if any of the following conditions

appliesi The entity and the reporting entity are members of the same group (which means

that each parent sub and fellow sub is related to the others)ii One entity is an associate or JV of the other entity (or an associate or JV of a

member of a group of which the other entity is a member)iii Both entities are JV of the same third partyiv One entity is a JV of a third entity and the other entity is an associate of the third

entity


yv The entity is a post-employment benefit plan for the benefit of employees of either

the reporting entity or an entity related to the reporting entity If the reporting entity is itself such a plan the sponsoring employers are also related to the reporting entity

vi The entity is controlled or jointly controlled by a person identified in (a)vii A person identified in (a)(i) has significant influence over the entity or is a member

of the key management personnel of the entity (or of a parent of the entity)

Definition of a Related Party ndash Key Changes

bull Clearly separate the related party to 2 angles 1) Person (replaced ldquoindividualrdquo as well) and 2) Entity2) Entity

bull Eliminate inconsistencies in the definition and make it symmetricalndash When Entity A is identified as a related party in Entity Brsquos financial

statements Entity B will also be identified as related party in Entity Arsquos financial statements

bull Entities with only ldquocommon significant influencerdquo (no matter from an entity or a person) are not related to each otherH h tit h b th


bull However whenever a person or entity has both ndash joint control over Entity X and ndash joint control or significant influence over Entity Y

Entity X and Y are related to each other

45

Definition of a Related Party ndash Key ChangesExample

Owner X

Entity B

Owner X

Entity A

Significant influence

Control or joint control


bull Entity A and B are related to each other in both Entity Arsquos and Brsquos financial statements

bull Previously they are not regarded as related parties


bull Remove the term ldquosignificant voting powerrdquo in the definition of a related party

bull Clarify thatClarify that ndash An associate includes subsidiaries of the associate and ndash A joint venture includes subsidiaries of the joint venturendash Two entities are not related parties simply because a member of key

management personnel of one entity has significant influence over the other entity

bull Amended that ndash Close members of the family of an individual are (not may those family


Close members of the family of an individual are (not may those family members who may be expected to influence or be influenced by that person in their dealings with the entity and include(not ldquomay includerdquo as in previous HKAS 24)a) the personrsquos children and spouse or domestic partnerb) children of the personrsquos spouse or domestic partner andc) dependants of that person or that personrsquos spouse or domestic partner

46

Definitions for Other New Terms

bull Governmentndash refers to government government agencies and similar bodies

whether local national or internationalwhether local national or internationalbull A government-related entity

ndash is an entity that is controlled jointly controlled or significantly influenced by a government


Disclosures ndash Government

bull A reporting entity is exempt from the disclosure requirements of HKAS 2418 (next slide) in relation to related party transactions and outstanding balances including commitments witha) a government that has control joint control

or significant influence over the reporting


or significant influence over the reporting entity and

b) another entity that is a related party because the same government has control joint control or significant influence over both the reporting entity and the other entity (HKAS 2425)

47


bull HKAS 2418 disclosures includea) the amount of the transactionsb) the amount of outstanding balances including

Exempt from the following disclosure

b) the amount of outstanding balances including commitments andi) their terms and conditions including whether they

are secured and the nature of the consideration to be provided in settlement and

ii) details of any guarantees given or receivedc) provisions for doubtful debts related to the

amount of outstanding balances and


amount of outstanding balances andd) the expense recognised during the period in

respect of bad or doubtful debts due from related parties (HKAS 2418)


bull If a reporting entity applies the exemption in HKAS 2425 (last slide) it shall disclose the following about the transactions and related outstanding balances referred to in HKAS 2425ga) the name of the government and the nature of its relationship with the

reporting entity (ie control joint control or significant influence)b) the following information in sufficient detail to enable users of the entityrsquos

financial statements to understand the effect of related party transactions on its financial statementsi the nature and amount of each individually

significant transaction andii f th t ti th t ll ti l

Significant


ii for other transactions that are collectivelybut not individually significantndash a qualitative or quantitative indication of their extent

Types of transactions include those listed in HKAS 2421 (HKAS 2426)

Not significant

48


bull In using its judgement to determine the level of detail to be disclosed in accordance with the requirements in HKAS 2426(b) the reporting entity shall consider the closeness of the related party relationship and y p y pother factors relevant in establishing the level of significance of the transaction such as whether it is

a) significant in terms of sizeb) carried out on non-market termsc) outside normal day-to-day business operations such as the purchase and

sale of businessesd) disclosed to regulatory or supervisory authorities


e) reported to senior managementf) subject to shareholder approval (HKAS 2427)

Effective Date and Transition

bull An entity shall apply HKAS 24 retrospectively for annual periods beginning on or after 1 January 2011

bull Earlier application is permitted either ndash of the whole HKAS 24 or ndash of the partial exemption in paragraphs 25-27 for

government-related entities bull If an entity applies either the whole HKAS 24 or that

partial exemption for a period beginning before 1 J 2011


January 2011 ndash it shall disclose that fact

49

Financial Instruments(HKFRS 9)


Background

bull In response to the input received on its work responding to the financial crisis and following the conclusions of the G20 leaders and the recommendations of international bodies ndash the IASB announced an accelerated timetable for

replacing IAS 39 in April 2009 andndash finally IFRS 9 Financial Instruments in Nov 2009

bull HKFRS 9 was issued to maintain international convergence with the issuance of IFRS 9


50

Background

bull HKFRS 9 issued so far includes only the chapters relating to the classification and measurement of financial assets

Financial Assets Financial Assets OnlyOnly

ndash HKFRS 9 addressed those matters first because they form the foundation of a standard on reporting financial instruments

ndash Moreover many of the concerns expressed during the financial crisis arose from the classification and measurement requirements for financial assets in HKAS 39


Structure of HKFRS 9

Chapters1 Objective2 S2 Scope3 Recognition and Derecognition4 Classification5 Measurement6 Hedge Accounting (not used yet)7 Disclosures (not used yet)8 Eff ti D t d T iti


8 Effective Date and Transition

51

Chapter 1 and 2

Objectivebull The objective of HKFRS 9 is to establish principles for

the financial reporting of financial assets that willthe financial reporting of financial assets that will present relevant and useful information to users of financial statements for their assessment of the amounts timing and uncertainty of the entityrsquos future cash flows (para 11)

Scopebull An entity shall apply HKFRS 9 to all assets within the

scope of HKAS 39 Financial Instruments Recognition


scope of HKAS 39 Financial Instruments Recognition and Measurement (para 21)

Chapter 3 Recognition amp Derecognition

Recognition and Derecognitionbull An entity shall recognise a financial asset in its

statement of financial position when and onlystatement of financial position when and only when ndash the entity becomes party to the contractual

provisions of the instrument bull When an entity first recognises a financial asset

it shall ndash classify it in accordance with paragraphs 41-45

and

Amended(Ch 4 of HKFRS 9)

Same as before


andndash measure it in accordance with paragraph 511

bull A regular way purchase or sale of a financial assetndash shall be recognised and derecognised in

accordance with paragraphs 38 and AG53ndashAG56 of HKAS 39 (para 311 to 312)

Same as before


52

Chapter 4 Classification

bull Unless para 45 of HKFRS 9 (so-called ldquofair value optionrdquo) applies an entity shall classify financial assets as subsequently measured at either ndash amortised cost orndash fair value

on the basis of botha) the entityrsquos business model for managing the financial assets andb) the contractual cash flow characteristics of the financial asset

(para 41)


Amortised cost Fair value

Chapter 4 ClassificationAssets within the scope of HKAS 39

classified on initial recognition

Held within a business model whose No

Fair value optionYes

objective is to hold assets in order to collect contractual cash flows

Yes

No

Assetrsquos terms give rise on specified dates to cash flows that are solely payments of principal and interest

Yes

No


Through other comprehensive income


No

Through profit or loss

53



Held within a business model whose

bull A financial asset shall be measured at amortised cost if both of the following conditions are met


Yes


Yes

ga the asset is held within a business

model whose objective is to hold assets in order to collect contractual cash flows

b the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the


Amortised cost

of principal and interest on the principal amount outstanding (para 42)



Held within a business model whose Noobjective is to hold assets in order to

collect contractual cash flowsYes

No


No

bull A financial asset shall be measured at fair value


Fair value

ndash unless it is measured at amortised cost in accordance with para 42(para 44)

54




bull Notwithstanding para 41-44 an entity may at initial recognition designate a financial asset as



Yes


Yes

gmeasured at fair value through profit or loss ndash if doing so eliminates or significantly

reduces a measurement or recognition inconsistency (ie an ldquoaccounting mismatchrdquo) (para 45)



No





Reclassification Reclassification restricted to change in restricted to change in

business modelbusiness model



Yes

No


Yes

No



No

bull When and only when an entity changes its business model for managing financial assets it shall reclassify all affected financial assets in accordance with para 41ndash44 (para 49)

55


bull HKFRS 9 requires an entity to reclassify financial assets if the objective of the entityrsquos business model for managing those financial assets changes gndash Such changes are expected to be very infrequent ndash Such changes

bull must be determined by the entityrsquos senior management as a result of external or internal changes and

bull must be significant to the entityrsquos operations and demonstrable to external parties (para B59)



Chapter 4 ClassificationCase

Financial statements 2009 states thatbull In the fourth quarter of 2009 the Group early adopted all newrevised HKFRSsIn the fourth quarter of 2009 the Group early adopted all newrevised HKFRSs

issued up to 31 December 2009 which were pertinent to its operations where early adoption is permitted

bull The applicable HKFRSs are set out below‒ HKFRS 9 Financial Instruments helliphellip

bull HKFRS 9 is the first part of a project to replace HKAS 39 Financial Instruments Recognition and Measurement and it replaces the classification and measurement requirements in HKAS 39 for financial assets



56


bull Previously financial assets of the Group were classified as financial assets atFinancial statements 2009 states that

Previously financial assets of the Group were classified as financial assets atndash fair value through profit or loss ndash available-for-sale financial assets or ndash loans and receivables (which included bank deposits) helliphellip

bull The early adoption of HKFRS 9 has resulted in a change in accounting policy and financial assets are classified into ndash financial assets measured at fair value through profit or loss or

fi i l t d t ti d t


ndash financial assets measured at amortised cost





57

Chapter 5 Measurement

Initial measurement (same as HKAS 39)bull At initial recognition an entity shall measure a financial asset at

it f i l lndash its fair value plusndash in the case of a financial asset not at fair value through profit or loss

transaction costs that are directly attributable to the acquisition of the financial asset (para 511)


Initial MeasurementFair Value

Transaction Cost+


Subsequent Measurementbull After initial recognition an entity shall measure financial assets in

accordance with para 4 1 -4 5 (as discussed above) ataccordance with para 41 -45 (as discussed above) at ndash fair value or ndash amortised cost (para 521)

bull An entity shall apply the impairment requirements of HKAS 39 to all financial assets measured at amortised cost (para 522)

No impairment requirements on financial assets measured at fair valuebull An entity shall apply the hedge accounting requirements of HKAS 39 to


financial assets that are designated as hedged items (para 523)


Through other comprehensive income Through profit or loss

58

Chapter 5 MeasurementAssets within the scope of HKAS 39



bull A gain or loss on a financial asset that is measured at amortised cost and is not part of a hedging relationship

Fair value option


Yes


Yes

p g g pndash shall be recognised in profit or loss

bull when the financial asset is derecognised impaired or reclassified and through the amortisation process (para 542)


Amortised cost

No

For those classified as measured at fair value


Part of hedging relationshipYes Hedge accounting


Equity instrument

Elected to present gains and losses in

No

Yes

No

No

Part of hedging relationship

No(IAS 3989 to 102)


Elected to present gains and losses in other comprehensive income

Held for trading

Yes

Fair value throughprofit or loss

Fair value through other comprehensive income

No

Yes

No

59




bull A gain or loss on a financial asset that is measured at fair value and is not part of a hedging relationship

Fair value option

Equity instrument


Yes

No


No

p g g pndash shall be recognised in profit or lossndash unless

bull the financial asset is an investment in an equity instrument and

bull the entity has elected to presentgains and losses on that investment in other comprehensive



Held for trading

Yes



No

income (para 541)


bull At initial recognition an entity may make an irrevocable election tondash present in other comprehensive income subsequent changes in the fair value

of an investment in an equity instrument within the scope of HKFRS 9 that

Equity instrument


Yes

q y pare not held for trading (para 544)

bull If an entity makes such election it shall recognise in profit or loss dividends from that investment when the entityrsquos right to receive payment of the dividend is established in accordance with HKAS 18 Revenue (para 545)

No

No



Held for trading

Yes



No

Yes

No

60


bull Such irrevocable election (presenting fair value changes in other comprehensive income)

Equity instrument


Yes

ndash is made on an instrument-by-instrument (ie share-by-share) basis

bull Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss ndash However the entity may transfer the

cumulative gain or loss within equity (e g transfer between reserves)



Held for trading

Yes


No

(eg transfer between reserves)bull Dividends on such investments are

recognised in profit or loss in accordance with HKAS 18 Revenue ndash unless the dividend clearly represents

a recovery of part of the cost of the investment (para B512)


bull Under HKFRS 9 amount presented in other comprehensive income shall not be subsequently transferred to profit or lossndash Implies that

Equity instrument

pbull no recycling of any fair value change on those financial assets measured at fair

value through other comprehensive income to profit or loss (or income statement)bull no gain or loss will be recognised in profit or loss (or income statement) on

derecognition of such investments in equity instruments




61

Chapter 6 and 7

bull Chapter 6 and 7 not yet usedndash As hedge accounting and disclosure not yet

introducedintroduced


Chapter 8 Effective Date amp Transition

Effective datebull An entity shall apply HKFRS 9 for annual periods

beginning on or after 1 January 2013beginning on or after 1 January 2013 bull Earlier application is permitted bull If an entity applies HKFRS 9 in its financial

statements for a period beginning before 1 January 2013 ndash it shall disclose that fact and at the same time apply

the amendments in Appendix C (ie Amendments to other HKFRSs) (para 8 1 1)


other HKFRSs) (para 811)

62


Transitionbull An entity shall apply HKFRS 9 retrospectively in

accordance with HKAS 8 except as specified inaccordance with HKAS 8 except as specified in paragraphs 824ndash8213

bull HKFRS 9 shall not be applied to financial assets that have already been derecognised at the date of initial application (para 821)



bull The date of initial application is the date when an entity first applies the requirements of HKFRS 9

Transition

requirements of HKFRS 9 bull The date of initial application may be

a For entities initially applying HKFRS 9 before 1 January 2011any date between the issue of HKFRS 9 and 31 December 2010 or

b For entities initially applying HKFRS 9 on or after 1 January 2011the beginning of the first reporting period in which the entity adopts HKFRS 9 (para 822)


bull If the date of initial application is not at the beginningof a reporting period ndash the entity shall disclose

bull that fact andbull the reasons for using that date of initial application

63


bull Notwithstanding the requirement in paragraph 821 an entity that adopts HKFRS 9 for reporting periods

Transition

an entity that adopts HKFRS 9 for reporting periods beginning before 1 January 2012

need not restate prior periodsbull If an entity does not restate prior periods the entity

shall recognise any difference between ndash the previous carrying amount and ndash the carrying amount at the beginning of the


annual reporting period that includes the date of initial application

in the opening retained earnings (or other component of equity as appropriate) of the reporting period that includes the date of initial application (para 8212)

Chapter 8 Effective Date amp TransitionCase

bull As HKFRS 9 was only issued in November 2009 the Group first applied theFinancial statements 2009 states that

As HKFRS 9 was only issued in November 2009 the Group first applied the requirements of HKFRS 9 on 31 December 2009 which was not at the beginning of the reporting period helliphellip

bull Under the transitional provisions HKFRS 9 was applied to financial assets extant at the date of initial application (ie 31 December 2009) and comparative figures were not restated

bull No adjustments to retained earnings or revaluation reserves were required as at 1 January 2009 because the available-for-sale financial assets as at 31 December 2009 solely comprised those assets purchased during 2009 and


December 2009 solely comprised those assets purchased during 2009 and ndash there was no reclassification from financial assets at fair value through profit

or loss to financial assets measured at amortised cost or from loans and receivables to financial assets measured at fair value through profit or loss at that date

bull There are consequential amendments to certain provisions of HKFRS 7 which the Group has also early adopted in the accounts

64


Full version of slides in PDF can be found in wwwNelsonCPAcomhk


Nelson LamNelson Lam 林智遠林智遠nelsonnelsoncpacomhkwwwNelsonCPAcomhkwwwFacebookcomNelsonCPA



QampA SessionQampA SessionQampA SessionQampA Session



2




1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010












1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011




bull AB 4 Guidance on the Determination of Realised Profits and Losses in the Context of Distributions under the Hong Kong Companies Ordinance

3

Todayrsquos Agenda







4



period












sheet








No title change


New statement






Notes



(but restructured)

No title change

New requirement


5




Components of other







Components of other










6




Components of other









Components of other








7



Components of other





ith HKAS 19






8






9







10











11













12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










3

Todayrsquos Agenda







4



period












sheet








No title change


New statement






Notes



(but restructured)

No title change

New requirement


5




Components of other







Components of other










6




Components of other









Components of other








7



Components of other





ith HKAS 19






8






9







10











11













12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










4



period












sheet








No title change


New statement






Notes



(but restructured)

No title change

New requirement


5




Components of other







Components of other










6




Components of other









Components of other








7



Components of other





ith HKAS 19






8






9







10











11













12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










5




Components of other







Components of other










6




Components of other









Components of other








7



Components of other





ith HKAS 19






8






9







10











11













12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










6




Components of other









Components of other








7



Components of other





ith HKAS 19






8






9







10











11













12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










7



Components of other





ith HKAS 19






8






9







10











11













12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










8






9







10











11













12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










9







10











11













12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










10











11













12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










11













12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










12













13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










13











Annual report 2009


14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










14


Annual report 2009










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










15








and (b)

HKFRS 7 Amendments







16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










16

Todayrsquos Agenda






1 Jul 20091 Jan 2010








1 Jan 2010

1 Jan 2010

1 Jul 2009

1 Jul 20091 Jul 20091 Jul 20091 J 2010









17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










17







18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










18














19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










19









Consol


A X



pre-change

5500 -

(3600)

1900



(2580) 600


(200)(1820)(2020)

120(1900)

20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










20

Consol




pre-change

5500 -

(3600)

1900

A X








(200)(1820)(2020)

120(1900)


(2580) 600






Consol


Consolafter change

5500 -

(3550)

1950

Dr(Cr)

50

A X



pre-change

5500 -

(3600)

1900


(200)(1990)(2190)

240(1950)

(170)

120


(2580) 600


(200)(1820)(2020)

120(1900)

21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










21

Loss of Control









Loss of Control








22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










22

Loss of Control








Loss of Control


Example

HK$ Sub A Sub B






to ask

23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










23

Loss of Control


Example

HK$ Sub A Sub B








Loss of Control


Example





l ti l i l






24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










24

Loss of Control


Example

HK$ Sub A Sub B











25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










25

Introduction











What is it


Scope








26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










26








Example







27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










27











( g )





HK$



Goodwill ($120 - $75) 45



25



40

28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










28



Critical Amendment










Practices changed


Existing practice






b


Goodwill 45


145

Goodwill ($120 - $75) 45



$$(120 + 25) ndash $100

= $45

a(ii)

29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










29





HK$


b


Goodwill ($120 - $75) 45



25



40 a(ii)

$$(120 + 25) ndash $100

= $45 $$(120 + 40) ndash $100

= $60

a(ii)







30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










30









31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










31

Introduction






Summary




32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










32









New requirements







New requirements

33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










33


















p


34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










34



















35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










35



















36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










36


















37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










37




















38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










38




FinanceLease




Operating Lease










Operating Lease



Substantially all

39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










39



Case

















40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










40



















customer

41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










41









Todayrsquos Agenda



42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










42




1 Feb2010







1 Jan 20111 Jan 20131 Jan 2011

1 Jul 2010

1 Jan 2011






43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










43

Key Amendments








44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










44






entity














45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










45


Owner X

Entity B

Owner X

Entity A













46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










46












47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










47
















Significant




Not significant

48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










48














49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










49



Background





50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










50

Background










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










51

Chapter 1 and 2












and


Same as before





Same as before


52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










52




(para 41)








Yes

No


Yes

No




No


53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










53






Yes


Yes





Amortised cost






No


No



Fair value


54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










54







Yes


Yes





No









Yes

No


Yes

No



No


55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










55














56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










56





fi i l t d t ti d t







57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










57







Transaction Cost+










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










58





Fair value option


Yes


Yes




Amortised cost

No





Equity instrument


No

Yes

No

No


No(IAS 3989 to 102)



Held for trading

Yes



No

Yes

No

59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










59





Fair value option

Equity instrument


Yes

No


No






Held for trading

Yes



No

income (para 541)




Equity instrument


Yes



No

No



Held for trading

Yes



No

Yes

No

60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










60



Equity instrument


Yes






Held for trading

Yes


No






Equity instrument







61

Chapter 6 and 7











62








Transition







63



Transition
















64










61

Chapter 6 and 7











62








Transition







63



Transition
















64










62








Transition







63



Transition
















64










63



Transition
















64










64










annual financial reporting update · 2010-07-08 · items of income and expense statement of...

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