Account Equity Investments

Standard/s IFRS 9, IFRS 7

Initial Recognition 1. Equity securities at FVPL – At Fair Value
2. Equity securities at FVOCI – At Fair Value
plus Transaction Costs
Subsequent Measurement FVPL – fair value changes recognized in P/L
FVOCI – fair value changes recognized in other
comprehensive income
Impairment Assessment Under IFRS 9, equity investments measured at
fair value are no longer tested for impairment.
The measurement to fair value is sufficient to
include such impairment, if any.
Derecognition 1. Expired
2. Transferred
Equity securities at FVOCI – any cumulative
unrealized gains or losses on investment is
transferred directly to retained earnings
Disclosure Requirements  Significance of equity investments
 Nature and extend of risks arising from
equity investments
 Other disclosures:
a. Amount recognized in OCI during the
period
b. Amount removed from equity and
included in P/L for the period
 Credit risk, Liquidity risk and Market risk

Account Investment in Associates and Joint Venture

Standard/s IAS 28, IFRS 12
Initial Recognition Purchase price plus transaction costs
Subsequent Measurement  Carrying amount is increased/decreased
to recognize the investor’s share of the
P/L of the investee after the date of
acquisition
 Amortize the excess of investment cost
Impairment Assessment Goodwill is not subject to amortization but is
tested for impairment, at least annually
Derecognition 1. Disposal/Sale
2. Reclassification to Investment at fair
value
Disclosure Requirements a. The name of the joint arrangement or
associate
b. The nature of the entity’s relationship
c. The principal place of business and
country of incorporation
d. The proportion of ownership
 e. Equity method/ Fair value method
f. Summarized financial information

Account Investment Property

Standard/s PAS 40
Initial Recognition Initially measured at cost including transaction
costs
Subsequent Measurement Either:
Fair Value model – changes in FV at P/L
Cost model – at cost less accumulated
depreciation and any accumulated impairment
losses
Impairment Assessment Transfers to IP from owner occupied property –
any resulting decrease in carrying amount is
recognized as impairment loss
Derecognition a. On disposal
b. When permanently withdrawn from use
and no future economic benefits
Disclosure Requirements a. Fair value model/ cost model
b. Criteria used to distinguish investment
property from owner-occupied property
and inventory
c. Methods and significant assumptions
d. Amounts recognized in P/L for rental
income and expenses
e. Existence and amounts of restrictions
f. Contractual obligations

Account Property, Plant and Equipment

Standard/s PAS 16, PAS 36
Initial Recognition Measured at Cost
Subsequent Measurement Either:
Cost model – cost less accumulated depreciation
and any accumulated impairment losses
Revaluation model
Impairment Assessment Carrying amount > Fair Value
Derecognition a. On disposal
b. When permanently withdrawn from use
and no future economic benefits
Disclosure Requirements a. Measurement bases
b. Depreciation method
c. Useful lives/depreciation rates
d. Gross CA and AD at the beg and end
e. Reconciliation of the CA
Account Intangible Assets
Standard/s PAS 38
Initial Recognition Initially at cost – depends on how the intangible
asset is acquired
a. Separate acquisition – purchase price
plus any directly attributable cost
b. Part of business combination – fair value
at its acquisition date
c. Way of government grant – at fair value
or at nominal amount or zero plus direct
costs incurred
d. Exchange of assets –
 Has commercial substance:
1. FV of the asset given up (plus
cash paid or minus cash
received)
2. FV of the asset received
3. CA of the asset given up (plus
cash paid or minus cash
received)
 Lacks commercial substance – CA
of the asset given up (plus cash
paid or minus cash received)
e. Internal generation
Subsequent Measurement Either:
Cost model
Revaluation model
Impairment Assessment Required testing for impairment at least annually:
a. Intangible asset with indefinite useful life
b. Intangible asset not yet available for use
Carrying amount > Recoverable amount
Derecognition a. On disposal
b. When permanently withdrawn from use
and no future economic benefits
Disclosure Requirements a. Useful lives indefinite or finite
b. Amortization method
c. Gross CA and accumulated amortization
at beg and end
d. Reconciliation of the CA showing increase
and decrease
e. Changes in accounting estimates
f. Any restriction on title to intangible
assets
g. Contractual commitments to acquire IA
h. Revaluation surplus recognized on
revalued IA
i. Aggregate amount of R&D expense
Account Debt Investments
Standard/s IFRS 9, IFRS 7
Initial Recognition Debt securities at amortized cost – at purchase
price plus transaction costs
Debt securities at FVPL – at purchase price, which
is the fair value at date of acquisition
Debt securities at FVOCI – at purchase price plus
transaction costs
Subsequent Measurement @ amortized cost – resulting premium or
discount is amortized over the term using
effective interest method
@ FVPL – change in FV recognized at P/L
@ FVOCI – change in FV is taken as an unrealized
gain or loss in OCI
Impairment Assessment a. No credit risk since initial recognition –
recognize 12-month expected credit
losses
b. There has been a significant increase in
credit risk since initial recognition –
recognized lifetime expected credit losses
Derecognition On disposal/sale
Disclosure Requirements a. CA of each class of debt securities are
disclosed separately
b. Material items of income, expense and
gains and losses
c. Accounting policies and methods
adopted
d. Transparent information about risks
e. Whether fair values are determined
directly, by reference or estimated
f. Nature and amount of any impairment
loss