INVESTMENT PROPERTY
Full PFRS PFRS for SMEs
Definition Same as IFRS for SMEs.
Accounting result likely to be
the same.
Initial Measurement Cost of purchased investment =
Purchase Price + Directly
Attributable Costs (legal and
brokerage fees, property
transfer taxes and other
transaction cost)
Borrowing costs that are
directly attributable to the
acquisition, construction or
production of a qualifying asset
are required to be capitalized
as part of the cost of that asset.
Subsequent Measurement Fair Value or at Cost
However, when an investment
property is held by a lessee
under an operating lease, the
entity follows the Fair Value
model for all its investment
properties.
Fair Value Gains and losses arising from
changes in the fair value of
investment property are
recognized in profit or loss.
Cost Model (Same as PFRS for SMEs)
Transfers IFRS includes further guidance
on the situations when a
Investment property is a
property (land or building, or
part of a building, or both) held
by the owner or by lessee under
a finance lease to earn rentals
or for capital appreciation or
both.
SAME as that of Full PFRS
except of treatment of
Borrowing Costs.
Borrowing costs are recognized
as an expense.
At fair value if its fair value can
be measured reliably without
undue cost or effort.
Otherwise, the cost model is
used.
(Same as Full PFRS)
The cost model is consistent
with the treatment of property,
plant and equipment (PPE).
Investment properties are
carried at cost less accumulated
depreciation and any
accumulated impairment losses
Transfer to or from investment
properties applies when the
 property can be transferred to property meets or ceases to
or from the investment meet the definition of an
property category. investment property.

PROPERTY PLANT AND EQUIPMENT

Full PFRS PFRS for SMEs

Definition Property, plant and equipment
(PPE) are tangible assets that
are: (Same definition)

Held for use in the production

or supply of goods and services,
for rental to others or for
administrative purposes.

Expected to be used during

more than one period

PPE classified as held for sale,

biological assets, and some
others are explicitly out of
scope of IAS 16.

Initial Measurement Cost of purchased investment = Purchase Price + Directly

Subsequent Measurement
Purchase Price + Directly
Attributable Costs (legal and
brokerage fees, property
transfer taxes and other
transaction cost)
Borrowing costs that are
directly attributable to the
acquisition, construction or
production of a qualifying asset
are required to be capitalized
as part of the cost of that asset.
Cost or Revaluation model ,
wherein PPE are carried at PPE
are carried at cost less
accumulated depreciation and
any impairment losses or at a
attributable costs to bring the
asset to the location and
condition necessary for it to be
capable of operating in the
manner intended by
management.
The initial estimate of costs of
dismantling and removing the
item and restoring the site on
which it is located.
Borrowing costs are recognized
as an expense.
Cost Model
PPE are carried at cost less
accumulated depreciation and
any impairment losses.
 revalued amount less any
accumulated depreciation and
subsequent accumulated
impairment losses.
Major inspection same
Impairment (Same as PFRS for SMEs)
Depreciation-definition Same as pfrs for smes
Components approach PPE may have significant parts
with different useful lives.
Depreciation is calculated based
on each individual parts life.
Significant parts that have the
same useful life and
depreciation method may be
grouped in determining the
depreciation charge.
Depreciation charge same
Depreciable amount and The depreciable amount of an
Depreciable period asset is allocated over its useful
life.
The residual value and the
useful life of an asset are
reviewed at least at each
annual reporting date and
The cost of a major inspection
or replacement of parts of an
item occurring at regular
intervals over its useful life is
capitalized to the extent that it
meets the recognition criteria of
an asset.
The carrying amount of the
previous inspection or parts
replaced is
PPE is tested for impairment
when there is an indication that
the asset may be impaired.
Existence of impairment
indicators is assessed at each
reporting date.
The systematic allocation of the
depreciable amount of an asset
over its useful life.
PPE may have significant parts
with different useful lives. The
cost of an item of PPE is
allocated to its significant
parts, with each part
depreciated separately only
when the parts have
significantly different patterns
of benefit consumption.
The depreciation charge for
each period is recognized in the
profit or loss unless it is
included in the carrying amount
of another asset.
The depreciable amount of an
asset is allocated over its useful
life.
The residual value and the
useful life of an asset are
reviewed if there is an
indication of change since the

Depreciation Method
Non-current assets held for
sale
amended if expectations differ
from previous estimates.
Change in residual value or
useful life is accounted for as a
change in estimate.
Similar to IFRS for SMEs.
The depreciation method is
reviewed at least at each
annual reporting date.
Change in the depreciation
method is accounted for as a
change in estimate.
Similar to IFRS for SMEs.
In addition, PPE is classified as
held for sale if its carrying
amount will be recovered
principally through a sale
transaction rather than through
continuing use.
Assets held for sale, which are
not depreciated, are measured
at the lower of its carrying
amount and fair value less
costs to sell.
last reporting date and
amended if expectations differ
from previous estimates.
Change in residual value or
useful life is accounted for as a
change in estimate.
The depreciation method
should reflect the pattern in
which the assets future
economic benefits are expected
to be consumed by the entity.
The depreciation method is
reviewed if there is an
indication that there has been
a significant change since the
last annual reporting date.
Change in the depreciation
method is accounted for as a
change in estimate.
PFRS for SMEs does not address
noncurrent assets held for sale.
A plan to dispose of an asset is
an indicator of impairment that
triggers the calculation of the
assets recoverable amount for
the purpose of determining
whether the asset is impaired.
GOVERNMENT GRANT
Full PFRS
Definition Similar to IFRS for SMEs.
Recognition and Measurement There are two broad options
under IAS 20: the capital
approach and the income
approach. Accounting and
presentation could therefore be
different. Revenue is not
recognized until there is a
reasonable assurance that:
The entity
complies with
the
conditions attached to the
grants; and
The grants are
receivable.
Government grants are
recognized in the statement of
comprehensive income over
the periods necessary to match
them with the related costs
that they are intended to
compensate, on a systematic
basis. They are not credited
directly to shareholders
interest
Disclosures accounting policy adopted
for grants, including method
of balance sheet
presentation
PFRS for SMEs
Assistance by government in
the form of transfers of
resources to an entity in return
for past or future compliance
with certain conditions relating
to the operating activities of the
entity.
An entity recognizes
government grants according to
the nature of the grant as
follows:
A grant that does
not impose
specified future performance
conditions on the recipient is
recognized in income when the
grant proceeds are receivable.
A grant that
imposes
specified
future performance conditions
on the recipient is recognized
in income only when the
performance conditions are
met.
Grants received before
the income
recognition criteria are satisfied
are recognized as a liability
and released to income when
all attached conditions have
been complied with.
Grants are measured at the fair
value of the asset received or
receivable.
nature and extent of
grants recognized in the
financial statements
 nature and extent of
grants recognized in the
financial statements
** *
unfulfilled conditions and
contingencies attaching to
recognized grants
BORROWING COSTS
Full PFRS
Definition Similar to IFRS for SMEs.
Recognition Directly attributable borrowing
costs are capitalized as part of
the cost of the asset.
However, costs not directly
attributable are expensed.
Disclosures Amount of borrowing
cost capitalized during
the period
Capitalization rate used
to determine the
amount of borrowing
unfulfilled conditions and
contingencies attaching to
recognized grants that has
not been recognized in
income
an indication of other forms
of government assistance
fom which the entity directly
benefited.
PFRS for SMEs
Interest and other costs that an
entity incurs in connection with
the borrowing of funds.
Interest expense
calculated using
effective interest
method
Finance charges in
respect of finance
leases recognized
Exchange differences
arising from foreign
currecy borrowings to
the extent that they are
regarded as an
adjustment to
interestcosts
Recognize all borrowing costs as
expense of the period when
incurred.
PFRS for SMEs does not permit
capitalization of interest directly
attributable or not
Finance costs
Total interest expense
using the effective
interest method for
financial liabilities that
are not measured at fair

INTANGIBLE ASSETS
Definition
General principles for
recognition
Recognition as expense
Separately acquired intangible
assets
cost eligible for value through profit or
capitalization loss
Full PFRS PFRS for SMEs
Same as pfrs for smes An intangible asset is an
identifiable non-monetary asset
without physical substance. The
identifiable criterion is met
when intangible asset is
separable (that is, it can be sold,
transferred, licensed, rented or
exchanged), or where it arises
from contractual or legal rights.
same Expenditure on intangibles is
recognized as an asset when it
meets the recognition criteria of
an asset.
same Expenditure on the following
items is not recognized as
assets:
Start-up costs.
Training.
Advertising
. Relocation costs.
Expenditures on
internally generated
intangibles such as brands,
mastheads, customer lists,
publishing titles and items
similar in substance
. Past expenses on intangible
items are not recognized as an
asset.
Initial Measurement
same Intangible assets are measured
initially at cost. Cost includes
:
The purchase
price,
Any costs directly
attributable
to

Intangible assets acquired as
part of a business combination
Research and development
costs
Measurement after initial
recognition
Useful life
Intangible assets with finite
useful life
Research costs are expensed as
incurred. Development costs
are capitalised when specific
criteria are met
Subsequent Measurement
In addition to the cost model,
the revaluation model is an
option, in which intangible
assets are carried at a revalued
amount less any accumulated
depreciation and subsequent
accumulated impairment
losses.
The useful life of an intangible
asset is either finite or
indefinite.
The useful life is regarded as
indefinite when, based on
analysis of all of the relevant
factors, there is no foreseeable
limit to the period over which
the asset is expected to
generate net cash inflows.
Similar to IFRS for SMEs with
regard to the useful life of an
intangible asset that arises from
contractual or other legal rights,
except that renewal periods
may be taken into account if
certain criteria are met.
Intangible assets with finite
useful life (including those that
are revalued) are amortised.
Amortization is carried out on a
systematic basis over the useful
lives of the intangibles.
preparing the
assets for its intended
use.
The cost of an intangible asset
acquired as a part of a business
combination is its fair value at
the acquisition date.
All research and development
costs are recognized as an
expense.
Intangible assets are carried at
cost less any accumulated
amortization and any
accumulated impairment losses
(cost model).
The useful life of an intangible
asset is considered to be finite.
The useful life of an intangible
asset that arises from
contractual or other legal rights
should not exceed the period of
the contractual or other legal
rights but may be shorter
depending on the period over
which the asset is expected to
be use
Intangible assets are amortised
on a systematic basis over the
useful lives of the intangibles.
The useful life of an intangible is
presumed to be 10 years if a
reliable estimate cannot be
made. The residual value at the
 Same as IFRS for SMEs with
regard to the residual value of
such assets.
The amortization period,
method and residual value are
reviewed at least at each annual
reporting period
Intangible assets with These assets are not amortised.
indefinite useful life The useful life assessment is
reviewed at each annual
reporting period to determine
whether events and
circumstances continue to
support an indefinite useful life
assessment.
Change in the useful life
assessment from indefinite to
finite is an indicator that an
asset may be impaired and is
accounted for as a change in
estimate.
Impairment Same as IFRS for SMEs.
In addition, intangibles with
indefinite useful lives are
tested for impairment annually
irrespective of whether there is
an indication of impairment.
IMPAIRMENT OF ASSETS
Full PFRS
Impairment formula Same as pfrs for smes
end of their useful lives is
assumed to be zero, unless
there is either a commitment by
a third party to purchase the
asset and/or there is an active
market for the asset.
The amortization period,
method and residual value are
reviewed if there is an
indication of change since the
last reporting date. Changes in
the amortization
period/method are accounted
for as a change in estimate
Not applicable. All intangible
assets are considered to have
finite lives
Intangible assets are tested for
impairment when there is an
indication that the asset may be
impaired.
Existence of impairment
indicators is assessed at each
reporting date.
PFRS for SMEs
An asset is impaired when its
carrying amount exceeds it
recoverable amount, whereby
 the recoverable amount is
defined as the higher of an
assets or CGUs fair value less
costs to sell and its value in use.
Impairment Losses Same as IFRS for SMEs, unless An impairment loss is
the asset is carried at revalued recognized immediately in the
amount in accordance with profit or loss.
another standard. In this case,
the impairment loss is treated
as a revaluation decrease in
accordance with that other
standard.
Annual assessment of The following assets are tested Assets (including goodwill) are
indicators for impairment irrespective of tested for impairment when
whether there is indication of there is an indication that the
impairment: asset may be impaired. The
Intangible assets existence of impairment
with an indicators is assessed at each
indefinite useful life or reporting date
an intangible asset not yet
available for use.
Goodwill.
Indicators of impairment External indicators of
Same as IFRS for SMEs. An impairment include a decline in
additional indicator exists when an assets market value,
the entitys net asset value is significant adverse changes in
above its market capitalization. technological, market, economic
or legal environment and
increases in market interest
rates. Internal indicators include
evidence of obsolescence or
physical damage of an asset,
changes in the way an asset is
used (for example, due to
restructuring or discontinued
operations) or evidence from
internal reporting that the
economic performance of an
asset is, or will be, worse than
expected.
Recoverable amount same Recoverable amount is
the higher of an assets
(or CGUs) fair value less
costs to sell and its value
in use. If either exceeds
the carrying amount, it
is not necessary to

Value in use
Fair value less costs to sell
Allocation of goodwill
Same as IFRS for SMEs, but more The value in use is defined as the
extensive guidance about future present value of the future cash
cash flows estimation
same
Goodwill acquired in a business
combination is allocated to the
CGUs that are expected to
benefit from the synergies of the
combination. IAS 36 includes
comprehensive guidance on
how to allocate goodwill under
several circumstances.
estimate the other
amount.
flows expected to be derived
from an asset or CGU. Future
cash flows are estimated for the
asset in its current condition.
Cash inflows or outflows from
financing activities and income
tax receipts or payments are not
included.
When performing the
impairment test of an asset (or
CGU), the entity estimates the
fair value less costs to sell based
on a hierarchy of reliability of
evidence
: A price in
a binding sale
agreement
in an arms length or market
price in an active market, less
costs of disposal.
Best available
information to
reflect the
amount that an entity could
obtain at the reporting date
from disposal of the asset in an
arms length transaction
between knowledgeable,
willing parties, less costs of
disposal. Outcome of recent
transactions for similar assets
within the same industry need
to be considered.
Goodwill is allocated to the
CGUs that are expected to
benefit from the synergies of the
combination. If such allocation is
not possible and the reporting
entity has not integrated the
acquired business, the acquired
entity is measured as a whole
when testing goodwill
impairment. If such allocation is
 Goodwill is tested for
impairment at the lowest level
at which it is monitored by
management. CGUs may be
grouped for testing, but the
grouping cannot be higher than
an operating segment as defined
in IFRS 8 (before aggregation).
Reversal of impairment Similar to IFRS for SMEs;
however, includes more detailed
guidance and distinction of
reversal of impairment for an
individual asset, a CGU and
goodwill.
not possible and the acquired
business is integrated, the entire
group is considered when
testing goodwill impairment.
Note: integrated means that
the acquired business has been
restructured or dissolved into
the reporting entity or other
subsidiaries
At each reporting date after
recognition of the impairment
loss, an entity assesses whether
there is any indication that an
impairment loss may have
decreased or may no longer
exist. The impairment loss is
reversed if the recoverable
amount of an asset (CGU)
exceeds its carrying amount. The
amount of the reversal is subject
to certain limitations.
Goodwill impairment can never
be reversed.