International Financial Reporting Standards 2014: The Official Standards Approved by the European Union

The globalisation of capital markets has led to a sharp increasein the importance of International Financial
Reporting Standards (IFRS) of the International AccountingStandards Board (IASB). The breakthrough of IFRS in the EuropeanUnion (EU) occurred with the approval of the so–called IASRegulation by the European Parliament and the Council of theEuropean Union. In one fell swoop, 7,000 companies were thusobliged to apply the standards of the IASB.

The present publication contains the framework as published bythe EU as well as the financial reporting standards (IASs/IFRSs)and financial reporting interpretations (SICs/IFRICs) endorsed and published by the EU.

The present edition went to press on 1st Febuary 2014.

Newly included are amongst others the amendments by theimprovements project 2009–2011 and the amendments to IFRSs10 12, IAS 27, 36 and 39.

With a foreword and primer by Professor Dr. Henning Zülch,Leipzig & Vienna, and Professor Dr. Matthias Hendler,Münster

Foreword V

The IASB Financial Reporting Pronouncements IX

Framework for the Preparation and Presentation of FinancialStatements 3

International Accounting Standards

IAS 1 Presentation of Financial Statements 17

IAS 2 Inventories 35

IAS 7 Statements of Cash Flows 41

IAS 8 Accounting policies, changes in accounting estimates anderrors 49

IAS 10 Events after the Reporting Period 57

IAS 11 Construction contracts 61

IAS 12 Income taxes 67

IAS 16 Property, plant and equipment 87

IAS 17 Leases 97

IAS 18 Revenue 107

IAS 19 Employee Benefits 113

IAS 20 Accounting for government grants and disclosure ofgovernment assistance 137

IAS 21 The effects of changes in foreign exchange rates 143

IAS 23 Borrowing Costs 151

IAS 24 Related Party Disclosures 155

IAS 26 Accounting and reporting by retirement benefitplans 161

IAS 27 Separate Financial Statements 167

IAS 28 Investments in Associates and Joint Ventures 171

IAS 29 Financial reporting in hyperinflationary economies177

IAS 32 Financial instruments: presentation 181

IAS 33 Earnings per share 201

IAS 34 Interim financial reporting 213

IAS 36 Impairment of assets 221

IAS 37 Provisions, contingent liabilities and contingentassets 245

IAS 38 Intangible assets 255

IAS 39 Financial instruments: recognition and measurement271

IAS 40 Investment property 317

IAS 41 Agriculture 327

International Financial Reporting Standards

IFRS 1 First–time adoption of international financial reportingstandards 333

IFRS 2 Share–based payment 349

IFRS 3 Business combinations 369

IFRS 4 Insurance contracts 393

IFRS 5 Non–current assets held for sale and discontinuedoperations 407

IFRS 6 Exploration for and evaluation of mineral resources415

IFRS 7 Financial instruments: disclosures 419

IFRS 8 Operating segments 439

IFRS 10 Consolidated Financial Statements 447

IFRS 11 Joint Arrangements 475

IFRS 12 Disclosure of Interests in Other Entities 489

IFRS 13 Fair Value Measurement 501

IFRIC Interpretations

IFRIC 1 Changes in existing decommissioning, restoration andsimilar liabilities 523

IFRIC 2 Members shares in cooperative entities andsimilar instruments 525

IFRIC 4 Determining whether an arrangement contains a lease530

IFRIC 5 Rights to interests arising from decommissioning,restoration and environmental rehabilitation funds 532

IFRIC 6 Liabilities arising from participating in a specificmarket waste electrical and electronicequipment 534

IFRIC 7 Applying the restatement approach under IAS 29 Financialreporting in hyperinflationary economies 536

IFRIC 9 Reassessment of embedded derivatives 537

IFRIC 10 Interim financial reporting and impairment 538

IFRIC 12 Sevice Concession Arrangements 539

IFRIC 13 Customer Loyalty Programmes 544

IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset,Minimum Funding Requirements and their Interaction 546

IFRIC 15 Agreements for the Construction of Real Estate 549

IFRIC 16 Hedges of a Net Investment in a Foreign Operation551

IFRIC 17 Distributions of Non–cash Assets to Owners 557

IFRIC 18 Transfers of Assets from Customers 559

IFRIC 19 Extinguishing Financial Liabilities with EquityInstruments 562

IFRIC 20 Stripping Costs in the Production Phase of a SurfaceMine 563

Standing Interpretations Committee Interpretations

SIC–7 Introduction of the euro 567

SIC–10 Government assistance no specific relation tooperating activities 568

SIC–15 Operating leases incentives 569

SIC–25 Income taxes changes in the tax status of anentity or its shareholders 570

SIC–27 Evaluating the substance of transactions involving thelegal form of a lease 571

SIC–29 Service Concession Arrangements: Disclosures 573

SIC–31 Revenue barter transactions involving advertisingservices 575

SIC–32 Intangible assets website costs 576

Index 579