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PBE Standards

disclosure checklist

2018

February 2018

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Disclaimer: This publication has been prepared for general guidance on matters of interestonly, and does not constitute professional advice. It does not take into account anyobjectives, financial situation or needs of any recipient; any recipient should not act uponthe information contained in this publication without obtaining independent professionaladvice. No representation or warranty (express or implied) is given as to the accuracy orcompleteness of the information contained in this publication, and, to the extent permittedby law, PricewaterhouseCoopers, its members, employees and agents do not accept orassume any liability, responsibility or duty of care for any consequences of you or anyoneelse acting, or refraining to act, in reliance on the information contained in this publicationor for any decision based on it.

© 2018 PricewaterhouseCoopers New Zealand. All rights reserved. PwC refers to the NewZealand member firm, and may sometimes refer to the PwC network. Each member firm is aseparate legal entity. Please see www.pwc.com/structure for further details.

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ForewordWelcome to the 2018 edition of our PBE Standards disclosure checklist for Tier 1 and Tier 2 entities, our tool tohelp you prepare PBE Standards-compliant financial statements.

Whether you have already transitioned to PBE Standards or are in the process of compiling your first PBEStandards-compliant financial statements, we hope you find this checklist useful in considering the presentationand disclosure requirements of PBE Standards.

Financial reports have become complex and difficult to read. Aside from keeping up to date with new disclosurerequirements, as part of the financial reporting process there is an opportunity to reflect on the relevance of theinformation disclosed and streamline disclosures to improve the readability of financial reports and theireffectiveness in communicating the most important information about your entity.

We welcome your feedback on this checklist. Please speak to your usual PwC representative to let us know yourthoughts.

With kind regards,

Lyn HuntPartner

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Introduction

This checklist is applicable for:

Tier 1 public sector and not-for-profit PBEs applying full PBE Standards; and

Tier 2 public sector and not-for-profit PBEs applying PBE Standards Reduced Disclosure Regime

(PBE Standards RDR).

The PBE Standards disclosure checklist outlines the presentation and disclosures required for annual periods

beginning on or after 1 July 2017.

Public benefit entities (PBEs) are reporting entities whose primary objective is to provide goods or services

for community or social benefit and where any equity has been provided with a view to supporting that

primary objective rather than for a financial return to equity holders.

Public sector public benefit entities (public sector PBEs) are PBEs that are public entities as defined in the

Public Audit Act 2001, and all Offices of Parliament.

Not-for-profit public benefit entities (not-for-profit PBEs) are reporting entities that are PBEs but that are

not public sector PBEs.

This checklist does not include the disclosure requirements under simple format reporting standards applying to

Tier 3 and Tier 4 public sector and not-for-profit PBEs. Guidance, including template financial statements for

Tier 3 and Tier 4 public sector and not-for-profit PBEs are available on the XRB website.

Overview of accounting standards applicable to PBEs

The accounting standards framework consists of four PBE tiers applicable to both public sector and not-for-profit

PBEs with different suites of standards applying to each of those tiers.

The PBE definitions, the PBE tier criteria, the standards to be followed for each tier and the guidance on moving

between tiers can be found in XRB A1 Application of the Accounting Standards Framework (XRB A1).

The table below outlines the tier criteria and the suite of accounting standards applicable to each PBE tier. Please

refer to XRB A1 and XRB A2 Meaning of statutory size thresholds on the XRB website for full details of the tier

criteria and definitions.

Tier Tier Criteria Accounting Standards

Tier 1 Publicly accountable PBEs or large PBEs Full PBE Standards

Tier 2 Non-publicly accountable and non-large PBEs

which elect to be in Tier 2

PBE Standards Reduced Disclosure Regime

(PBE Standards RDR)

Tier 3 Non-publicly accountable1 PBEs with

≤$2 million expenses which elect to be in Tier 3

PBE Simple Format Reporting Standard -

Accrual (PBE SFR-A)

Tier 4 PBEs that are permitted by law to report in

accordance with non-GAAP standards because

the entity is not publicly accountable and does

not meet the size threshold to be a specified

not-for-profit entity which elect to be in Tier 4

PBE Simple Format Reporting Standard - Cash

(PBE SFR-C)

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Definition of public accountability

Under XRB A1 an entity has public accountability if it meets the IASB definition of ‘public accountability’ or it is

deemed to have public accountability in New Zealand (‘deeming approach’).

Under the IASB definition, an entity has public accountability if:

– Its debt or equity instruments are traded in a public market or it is in the process of issuing such

instruments; or

– It holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.

Under the ‘deeming approach’ an entity has public accountability if:

– It is an FMC reporting entity that is considered to have a higher level of public accountability under the

Financial Markets Conduct Act 2013 (FMC Act 2013) or by a notice issued by the Financial Markets

Authority (FMA); or

– It is an issuer under the Financial Reporting Act 1993 (FRA 1993).

Notwithstanding the above, an FMC reporting entity that does not have ‘public accountability’ under the ‘deeming

approach’ is publicly accountable under XRB A1 only if it has debt or equity instruments traded in a public market

or it is in the process of issuing such instruments; that is, it does not have to consider whether it holds and

manages assets in a fiduciary capacity.

Further, the trustees of a trust do not have publicly accountability under XRB A1 simply because they are required

to act in a fiduciary capacity for the benefit of the beneficiaries or in achieving the objects of the trust. For

example, a trust would not have public accountability when the financial resources or other resources held and

managed by the trust are not the resources of specified individual beneficiaries (XRB A1 p.12).

Definition of a large PBE

Large PBEs are defined as having ‘total expenses’ over $30 million. ‘Total expenses’ is defined in XRB A1 and

means the total expenses (including losses and grant expenses) recognised by an entity in accordance with Tier 1

PBE Standards in its surplus or deficit where surplus or deficit is defined as the total of revenue less expenses,

excluding the components of other comprehensive revenue and expense. Where revenue and expense are offset as

required or permitted by a relevant standard, any net expense is included in total expenses. Where the entity

reporting is a group, ‘total expenses’ is applied to the group comprising the controlling entity and all its controlled

entities.

Definition of a specified not-for-profit entity

An entity is a specified not-for-profit entity in respect of an accounting period if, in each of the two preceding

accounting periods of the entity, the total operating payments of the entity are $125,000 or more as defined in

section 46 of the Financial Reporting Act 2013. ‘Total operating payments’ means the total amount of any

payment (including grant payments and income tax payments, where applicable), other than a capital payment,

made by the entity during the accounting period (XRB A2 p.15-16).

Compliance

The PBE Standards disclosure checklist outlines the presentation and disclosures requirements issued up to

31 January 2018 and mandatory for annual periods beginning on or after 1 July 2017. Care must be taken to

ensure any changes to disclosure requirements which occurred after 31 January 2018 but which are relevant for

the reporting period are also addressed. Section E of the checklist includes amendments to the presentation and

disclosure requirements of PBE Standards that are not yet effective. In the checklist we have identified any

requirements that are specific to public sector or not-for-profit PBEs. All other requirements apply to both public

sector and not-for-profit PBEs.

Structure of disclosure checklist

Section A Disclosures for consideration by all PBEs

Section B Disclosures required of all PBEs but only in certain situations

Section C Industry-specific disclosures

Section D Suggested voluntary disclosures for PBEs

Section E Amendments to PBE Standards effective for annual periods beginning on or after1 July 2017 (early adoption permitted)

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The following appendix is also separately available:

Appendix A PBE IFRS 4 Insurance contracts

The disclosure checklist is presented in a format designed to facilitate the collection and review of disclosures for

each component of the financial statements. All disclosures have been grouped by subject, where appropriate. The

references in the left hand margin of the financial statements represent the paragraph of the standard in which the

disclosure requirement appears. For example:

XRBA1p6 External Reporting Board Standard A1, paragraph 6

IFRS5p32 PBE IFRS 5, paragraph 32

IAS12p82A PBE IAS 12, paragraph 82A

8p61 PBE IPSAS 8, paragraph 61

1pRDR39.1 PBE IPSAS 1, paragraph RDR 39.1

FRS44p8 PBE Financial Reporting Standard 44, paragraph 8

DV Disclosure Voluntary. Disclosure is encouraged but not required and therefore represents best

practice

Any reference to ‘IAS’, ‘IFRS’, ‘IFRIC’ etc. throughout this checklist refers to the PBE Standard equivalent of the

respective standard or interpretation. Additional notes and explanations are shown in italics.

The box in the right-hand margin of each page is designed to assist in completing the checklist. In the left-hand

box (headed Y-NA-NM) one of the following should be entered for each disclosure item:

Y (‘Yes’) – the appropriate disclosure has been made;

NA (‘Not applicable) – the item does not apply to the reporting entity; or

NM (‘Not material’) – the item is regarded as not material to the financial statements of the reporting entity.

Materiality is defined in PBE IPSAS 1 paragraph 7, and in paragraphs 29-30.1 of the PBE framework. PBE IPSAS 1

paragraph 47 states that a specific disclosure requirement in a PBE Standard need not be satisfied if the

information is not material.

The right-hand box on each page (headed ‘Ref’) can be used to insert a reference to the relevant part of the

financial statements (for example, Note 7) for all items that have been marked ‘Y’ in the left-hand box.

Key to colour codes and terminology changes

PBE Standards RDR concessions

For entities applying PBE Standards RDR, disclosure concessions have been highlighted in gold italic text.

Where a full paragraph is an RDR concession but an alternative disclosure is required under RDR, the alternative

RDR disclosure is highlighted in red. Tier 2 entities may elect to apply any or all of the RDR concessions but will

have to comply with any RDR paragraphs associated with a concession that is applied by the entity.

New disclosure requirements

New disclosure requirements have been highlighted in yellow to clearly distinguish these within the checklist.

Requirements which have been amended or are no longer required have been crossed out.

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Disclaimer

This checklist is intended for general reference purposes only. It is not a substitute for reading the standards and

interpretations themselves, or for professional judgement as to the fairness of presentation. Further specific

information may be required in order to ensure fair presentation under PBE Standards depending on the

circumstances. Additional disclosures may be required in order to comply with local laws and regulations.

The checklist does not address the measurement and recognition requirements of PBE Standards. To determine

these, a thorough reading of those standards and interpretations that are relevant to the reporting entity's

circumstances will be necessary. This disclosure checklist does not include PBE IAS 34 Interim financial

reporting, PBE FRS 42 Prospective financial statements or PBE FRS 43 Summary financial statements.

No liability is accepted by PwC on any grounds whatsoever to any party in respect of any errors or omissions, or

any action or omission to act taken as a result of the information contained within this publication.

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Contents

SECTION A DISCLOSURES FOR CONSIDERATION BY ALL PBES.....................................................................10

A1 GENERAL DISCLOSURES ....................................................................................................................................... 101. General disclosures............................................................................................................................. 102. Presentation and functional currency ................................................................................................ 123. Other disclosures ................................................................................................................................ 134. Prospective financial information - comparison................................................................................. 16

A2 ACCOUNTING POLICIES ........................................................................................................................................ 161. General disclosures............................................................................................................................. 162. Specific policies................................................................................................................................... 173. Changes in accounting policy ............................................................................................................. 19

A3 STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE AND RELATED NOTES............................................................... 211. General disclosures............................................................................................................................. 212. Individual items .................................................................................................................................. 243. Revenue from non-exchange transactions ......................................................................................... 254. Income tax.......................................................................................................................................... 26

A4 STATEMENT OF CHANGES IN NET ASSETS / EQUITY AND RELATED NOTES ........................................................................ 261. Statement of changes in net assets / equity ...................................................................................... 262. General disclosures............................................................................................................................. 27

A5 STATEMENT OF FINANCIAL POSITION AND RELATED NOTES .......................................................................................... 281. General disclosures............................................................................................................................. 282. Measurement uncertainty.................................................................................................................. 303. Property, plant and equipment .......................................................................................................... 314. Investment property ........................................................................................................................... 325. Intangible assets (excluding goodwill) ............................................................................................... 356. Impairment of cash-generating assets............................................................................................... 367. Impairment of non-cash-generating assets........................................................................................ 408. Associates ........................................................................................................................................... 419. Interests in joint ventures ................................................................................................................... 4210. Consolidated and separate financial statements ............................................................................... 4411. Inventory ............................................................................................................................................ 4712. Receivables ......................................................................................................................................... 4713. Taxes and transfers payable............................................................................................................... 4814. Payables under exchange transactions .............................................................................................. 5015. Liabilities under non-exchange transactions ...................................................................................... 5016. Provisions............................................................................................................................................ 5017. Post-employment benefits – defined benefit plans ............................................................................ 5118. Lease liabilities ................................................................................................................................... 5619. Borrowings and other liabilities.......................................................................................................... 5820. Related-party transactions ................................................................................................................. 5821. Commitments ..................................................................................................................................... 6222. Contingencies ..................................................................................................................................... 6223. Events after the reporting period ....................................................................................................... 6324. Other disclosures ................................................................................................................................ 64

A6 STATEMENT OF CASH FLOWS ................................................................................................................................ 641. General presentation.......................................................................................................................... 642. Individual items .................................................................................................................................. 653. Changes in ownership interests in controlled entities ........................................................................ 66

A7 STATEMENT OF SERVICE PERFORMANCE ................................................................................................................. 67A8 BUSINESS COMBINATIONS.................................................................................................................................... 68

1. General disclosures............................................................................................................................. 682. Adjustments........................................................................................................................................ 713. Other disclosures ................................................................................................................................ 73

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A9 FINANCIAL INSTRUMENTS .................................................................................................................................... 741. General disclosures............................................................................................................................. 742. Categories of financial assets and financial liabilities ........................................................................ 743. Financial assets or financial liabilities at fair value through surplus or deficit ................................... 744. Reclassification ................................................................................................................................... 765. Derecognition ..................................................................................................................................... 776. Collateral ............................................................................................................................................ 777. Allowance account for credit losses ................................................................................................... 778. Compound financial instruments with multiple embedded derivatives ............................................. 789. Defaults and breaches........................................................................................................................ 7810. Items of income, expense, gains or losses .......................................................................................... 7811. Other disclosures ................................................................................................................................ 7912. Concessionary loans ........................................................................................................................... 8513. Nature and extent of risks arising from financial instruments ........................................................... 8514. Qualitative disclosures........................................................................................................................ 8515. Quantitative disclosures ..................................................................................................................... 8616. Capital disclosures .............................................................................................................................. 8917. Financial guarantees .......................................................................................................................... 9018. Members’ shares in co-operative entities and similar instruments.................................................... 90

A10 NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS ....................................................................... 911. Non-current asset or disposal group held for sale.............................................................................. 912. Presenting discontinued operations ................................................................................................... 923. Gains or losses relating to continuing operations .............................................................................. 94

SECTION B DISCLOSURES REQUIRED OF ALL PBES BUT ONLY IN CERTAIN SITUATIONS ..............................95

B1 CORRECTION OF PRIOR-PERIOD ERRORS.................................................................................................................... 95B2 REPORTING IN THE CURRENCY OF A HYPERINFLATIONARY ECONOMY............................................................................... 95B3 UNCERTAINTIES ABOUT GOING CONCERN ................................................................................................................. 95B4 DEPARTURE FROM PBE STANDARDS....................................................................................................................... 96B5 CHANGE OF REPORTING DATE ................................................................................................................................ 97B6 FIRST-TIME ADOPTION OF PBE STANDARDS BY ENTITIES PREVIOUSLY APPLYING NZ IFRS................................................... 97

SECTION C INDUSTRY-SPECIFIC DISCLOSURES..........................................................................................103

C1 CONSTRUCTION CONTRACTS................................................................................................................................ 103C2 AGRICULTURE................................................................................................................................................... 103C3 SERVICE CONCESSION ARRANGEMENTS: GRANTOR................................................................................................... 106C4 SERVICE CONCESSION ARRANGEMENTS: OPERATOR ................................................................................................. 107C5 ACCOUNTING BY A LESSOR .................................................................................................................................. 108C6 DECOMMISSIONING, RESTORATION AND ENVIRONMENTAL REHABILITATION FUNDS ........................................................ 109C7 DISCLOSURE OF FINANCIAL INFORMATION ABOUT THE GENERAL GOVERNMENT SECTOR ................................................. 109

SECTION D SUGGESTED VOLUNTARY DISCLOSURES FOR PBES .................................................................112

SECTION E AMENDMENTS TO PBE STANDARDS EFFECTIVE FOR ANNUAL PERIODS BEGINNING ON ORAFTER 1 JULY 2017 (EARLY ADOPTION PERMITTED)......................................................................................113

E1 APPROVED BUDGET (AMENDMENTS TO PBE IPSAS 1) ........................................................................................... 113E2 2016 OMNIBUS AMENDMENTS TO PBE STANDARDS ............................................................................................. 113E3 IMPAIRMENT OF REVALUED ASSETS (AMENDMENTS TO PBE IPSASS 21 AND 26) ........................................................ 114E4 PBE IPSAS 34 SEPARATE FINANCIAL STATEMENTS ................................................................................................ 114E5 PBE IPSAS 35 CONSOLIDATED FINANCIAL STATEMENTS ......................................................................................... 116E6 PBE IPSAS 36 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES.......................................................................... 116E7 PBE IPSAS 37 JOINT ARRANGEMENTS ................................................................................................................ 117E8 PBE IPSAS 38 DISCLOSURE OF INTERESTS IN OTHER ENTITIES ................................................................................. 118E9 PBE IPSAS 39 EMPLOYEE BENEFITS ................................................................................................................... 130E10 PBE IFRS 9 FINANCIAL INSTRUMENTS ................................................................................................................. 136E11 PBE FRS 48 SERVICE PERFORMANCE REPORTING.................................................................................................. 165

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Section A Disclosures for consideration by all PBEs

A1 General disclosures Y-NA-NM REF

1. General disclosures

1p27, RDR27.1 1.Financial statements present fairly the financialposition, financial performance and cash flows of anentity or Tier 2 entity (as appropriate). Fairpresentation requires the faithful representation ofthe effects of transactions, other events andconditions in accordance with the definitions andrecognition criteria for assets, liabilities, income andexpenses set out in PBE Standards. The application ofPBE Standards or the application of PBE StandardsReduced Disclosure Regime (PBE Standards RDR)(as appropriate), with additional disclosure whennecessary, is presumed to result in financialstatements that achieve a fair presentation.

PBE Framework An entity prepares its financial statements, except forcash flow information, using the accrual basis ofaccounting.

1p21 2. Include the following components in the financialstatements:

(a) a statement of financial position (balance sheet);

(b) a statement of comprehensive revenue andexpense;

1p22.1(b) (c) separate statement of financial performance (ifpresented);

(d) a statement of changes in net assets / equity;

(e) a cash flow statement;

(g) notes, including a summary of significantaccounting policies and other explanatoryinformation.

(f) when an entity makes publicly available itsapproved budget, a comparison of budget andactual amounts either as a separate additionalfinancial statement or as a budget column in thefinancial statements;

(g) notes, including a statement of significantaccounting policies and other explanatory notes;and

(h) Comparative information in respect of thepreceding period as specified in paragraphs 53and 53A.

1p22.1(a) 3. Where a single statement of comprehensive revenueand expense is presented, display the surplus ordeficit section before the other comprehensive incomeor expense section.

1p28.2 4. Disclose in the notes:

(a) the statutory base or the reportingframework under which the financialstatements are prepared;

(b) whether the financial statements have beenprepared in accordance with GAAP;

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(c) the fact that, for the purposes of financialreporting, it is a public benefit entity; and

(d) that it has:

(i) complied with PBE Standards; or

1pRDR8.1 (ii) complied with PBE Standards RDR.

1pRDR28.3 (d) If reporting under PBE Standards RDR, disclosethe criteria that establish the entity as eligible toreport in accordance with PBE Standards RDR.

1p45 5. Present separately each material class of similaritems. Present separately items of a dissimilar natureor function unless they are immaterial.

1p48 6. Do not offset assets and liabilities or income andexpenses unless required or permitted by a PBEStandard.

1p61 7. Clearly identify the financial statements anddistinguish them from other information in the samepublished documents.

1p63 8. Clearly identify each component of the financialstatements.

1p63 9. Display the following information prominently, andrepeat where necessary for the information presentedto be understood:

(a) the name of the reporting entity or other meansof identification, and any change in thatinformation from the end of the precedingreporting period;

(b) whether the financial statements cover theindividual entity or the economic activity;

(c) the reporting date or the period covered by thefinancial statements, whichever is appropriate tothat component of the financial statements;

(d) the presentation currency (defined in PBEIPSAS 4); and

(e) the level of rounding used in presentingamounts in the financial statements.

1p46A 10. When applying this and other PBE Standards anentity shall decide, taking into consideration allrelevant facts and circumstances, how it aggregatesinformation in the financial statements, whichinclude the notes. An entity shall not reduce theunderstandability of its financial statements byobscuring material information with immaterialinformation or by aggregating material items thathave different natures or functions.

1p47 11. Some PBE Standards specify information that isrequired to be included in the financial statements,which include the notes. An entity need not provide aspecific disclosure required by a PBE Standard if theinformation resulting from that disclosure is notmaterial. This is the case even if the PBE Standardcontains a list of specific requirements or describesthem as minimum requirements.

Consider whether to provide additional disclosureswhen compliance with the specific requirements inPBE Standards is insufficient to enable users offinancial statements to understand the impact of

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particular transactions, other events and conditionson the entity’s financial position and financialperformance.

1p66 12. Where an entity has changed the end of its reportingperiod and prepares financial statements for a periodof less than or more than one year, disclose:

(a) the period covered by the financial statements;

(b) the reason for using a longer or shorter period;and

(c) the fact that comparative for certain statementssuch as the statement of comprehensive revenueand expense, statement of changes in net assets/ equity, cash flow statement, and related notesare not entirely comparable.

14p26 13. Include the following in the notes to the financialstatements:

(a) the date when the financial statements wereauthorised for issue;

(b) the body who gave that authorisation; and

(c) whether another body has the power to amendthe financial statements after issue.

2. Presentation and functional currency

4p62 1. When the presentation currency is different from thefunctional currency, state that fact, together withdisclosure of the functional currency and the reasonfor using a different presentation currency.

4p63 2. When there is a change in the functional currency ofeither the reporting entity or a significant foreignoperation, disclose that fact and the reason for thechange in functional currency.

4p64 3. If presenting financial statements in a currency thatis different from the functional currency, describe thefinancial statements as complying with PBEStandards only if they comply with all therequirements of each applicable standard and eachapplicable interpretation including the translationmethod set out in paragraphs 44 and 48.

4p65 4. An entity sometimes presents its financial statementsor other financial information in a currency that isnot its functional currency without applying thetranslation methods set out in PBE IPSAS 4paragraph 44 and 48. For example, an entity mayconvert only selected items from its financialstatements into another currency; or, an entitywhose functional currency is not the currency of ahyperinflationary economy may convert thefinancial statements into another currency bytranslating all items at the most recent closing rate.Such conversions are not in accordance withPBE Standards, and the disclosures set out inPBE IPSAS 4 paragraph 66 are required (see below).

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4p66 5. If presenting financial statements or other financialinformation in a currency that is different fromeither the functional currency or the presentationcurrency without applying the translation methodsset out in PBE IPSAS 4 paragraph 44 and 48:

(a) clearly identify the information assupplementary information to distinguish itfrom the information that complies with PBEStandards;

(b) disclose the currency in which thesupplementary information is displayed; and

(c) disclose the entity's functional currency and themethod of translation used to determine thesupplementary information.

3. Other disclosures

1p127 1. Disclose in the notes:

(a) information about the basis of preparation of thefinancial statements and the specific accountingpolicies used;

(b) the information required by PBE Standards thatis not presented on the face of the statement offinancial position, statement of comprehensiverevenue and expense, statement of changes innet assets / equity or the cash flow statement;and

(c) additional information that is not presented onthe face of the statement of financial position,statement of comprehensive revenue andexpense, statement of changes in net assets /equity or the cash flow statement but is relevantto an understanding of the financial statements.

1p128 2. Notes shall, as far as practicable, be presented in asystematic manner. In determining a systematicmanner, consider the effect on the understandabilityand comparability of the financial statements. Eachitem on the face of the statement of financial position,statement of comprehensive revenue and expense,statement of changes in net assets/equity, and cashflow statement shall be cross-referenced to anyrelated information in the notes.

1p129 3. Examples of systematic ordering or grouping of thenotes include:

(a) giving prominence to the areas of its activitiesconsidered to be most relevant to anunderstanding of financial performance andfinancial position, such as grouping togetherinformation about particular operatingactivities;

(b) grouping together information about itemsmeasured similarly such as assets measured atfair value; or

(c) following the order of the line items in thestatement of comprehensive revenue andexpense and the statement of financial position,such as:

(i) statement of compliance with PBEStandards;

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(ii) summary of significant accounting policiesapplied;

(iii) supporting information for itemspresented in the statements of financialposition and of comprehensive revenueand expense, in the separate incomestatement (if presented), and in thestatements of changes in net assets / equityand of cash flows, in the order in whicheach statement and each line item ispresented; and

(iv) other disclosures, including:

(1) contingent liabilities andunrecognised contractualcommitments;

(2) non-financial disclosures.

1p131 4. Notes providing information about the basis ofpreparation of the financial statements and specificaccounting policies may be presented as a separatecomponent of the financial statements.

1p29(c) 5. Provide additional disclosures when compliance withthe specific requirements in PBE Standards isinsufficient to enable users to understand the impactof particular transactions, other events and conditionson the entity's financial position and financialperformance.

1p53 6. Disclose comparative information in respect of thepreceding period for all amounts reported in thefinancial statements, except where PBE Standardspermit or require otherwise. This includescomparative information for both narrative anddescriptive information where it is relevant tounderstanding the financial statements for thecurrent period.

1p53A 7. Present, as a minimum, one statement of financialposition with comparative information for thepreceding period, one statement of comprehensiverevenue and expense with comparative informationfor the preceding period, one cash flow statementwith comparative information for the precedingperiod and one statement of changes in netassets/equity with comparative information for thepreceding period, and related notes.

XRBA1p82 8. When an entity ceases to apply one or more RDRconcessions, disclose comparative information inrespect of those previously applied disclosureconcessions, in accordance with PBE IPSAS 1 unlessthe PBE standard requirements does not requirecomparatives to be presented.

1p54 9. In some cases, narrative information provided in thefinancial statements for the preceding period(s)continues to be relevant in the current period. Usersmay benefit from the disclosure of information thatthe uncertainty existed at the end of the precedingperiod and from disclosure of information about thesteps that have been taken during the period toresolve the uncertainty.

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1p42 10. Retain the presentation and classification of items inthe financial statements from one period to the nextunless:

(a) it is apparent, following a significant change inthe nature of the entity's operations or a reviewof its financial statements, that anotherpresentation or classification would be moreappropriate having regard to the criteria for theselection and application of accounting policiesin PBE IPSAS 3; or

(b) a PBE Standard requires a change inpresentation.

1p55 11. Where an entity has reclassified comparative amountsdue to a change in presentation or classification ofitems in its financial statements, disclose:

(a) the nature of the reclassification;

(b) the amount of each item or class of item that isreclassified; and

(c) the reason for the reclassification.

When an entity changes the presentation orclassification of items in its financial statements,reclassify comparative amounts unless it isimpracticable to do so.

1p56 12. Where an entity changes the presentation orclassification of items, but it is impracticable toreclassify comparative amounts, disclose:

(a) the reason for not reclassifying the amounts;and

(b) the nature of the adjustments that would havebeen made if the amounts had been reclassified.

1p150 13. Disclose the following, if not disclosed elsewhere inthe information published with the financialstatements:

(a) the domicile and legal form of the entity and thejurisdiction within which it operates;

(b) a description of the nature of the entity'soperations and its principal activities;

(c) a reference to the relevant legislation governingthe entity’s operations;

(d) the name of the controlling entity and theultimate controlling entity of the economicentity;

(e) if it is a limited life entity, disclose informationregarding the length of its life.

DV, 20p14 (f) the entity is encouraged to disclose the existenceof any economic dependency on another entity.

DV 14. A financial review by management may be presentedoutside the financial statements that describes andexplains the main features of the entity's financialperformance and financial position, and the principaluncertainties it faces. Refer to Section D.

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4. Prospective financial information -comparison

1p148.1 1. Where general purpose prospective financialstatements have been published for the period of thefinancial statements, present a comparison of theprospective financial statements with the historicalfinancial statements being reported. Explanations formajor variations shall be given.

1p148.2 2. PBE FRS 42 Prospective Financial Statementsdefines general purpose prospective financialstatements. Legislative or other requirements mayrequire a comparison with originally publishedinformation, the most recently published information,or both.

A2 Accounting policies Y-NA-NM REF


Refer to the Appendix to PBE IPSAS 1 for an example of“Reporting Entity”, and “Basis of Preparation” policies.

1p132 1. Disclose in the summary of significant accountingpolicies comprising:

(a) the measurement basis (or bases) used inpreparing the financial statements;

(b) the extent to which the entity has applied anytransitional provisions in any PBE Standard;and

(c) the other accounting policies used that arerelevant to an understanding of the financialstatements.

1p137 2. Disclose in the summary of along with the significantaccounting policies, or other notes, the judgements,apart from those involving estimations thatmanagement has made in the process of applying theentity's accounting policies and that have the mostsignificant impact on the amounts recognised in thefinancial statements.

1p140 3. Disclose information about the key assumptionsconcerning the future and other key sources ofestimation uncertainty at the end of the reportingperiod that have a significant risk of causing amaterial adjustment to the carrying amounts of assetsand liabilities within the next financial year. Inrespect of those assets and liabilities, disclose:

(a) their nature, and

(b) their carrying amount as at the reporting date.

1p144 Examples of the types of disclosures an entity makesare:

(a) the nature of the assumption or other estimationuncertainty;

(b) the sensitivity of carrying amounts to themethods, assumptions and estimates underlingtheir calculation, including the reasons for thesensitivity;

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(c) the expected resolution of an uncertainty andthe range of reasonably possible outcomeswithin the next financial year in respect of thecarrying amounts of the assets and liabilitiesaffected; and

(d) an explanation of the changes made to pastassumptions concerning those assets andliabilities, if the uncertainty remains unresolved.

1p146 4. Where impracticable to disclose the extent of thepossible effects of a key assumption or another keysource of estimation uncertainty at the reportingdate, disclose:

(a) that it is reasonably possible, based on existingknowledge, that outcomes within the nextfinancial year that are different from theassumptions could require a materialadjustment to the carrying amount of the assetor liability affected; and

(b) the nature and carrying amount of the specificasset or liability (or class of assets or liabilities)affected by the assumption.

7p266p498p35

5. In consolidated financial statements, the results of allsubsidiaries, associates and joint ventures should beconsolidated, equity accounted or proportionallyconsolidated, as applicable, using uniform accountingpolicies for like transactions and other events insimilar circumstances.

3p33 6. In accordance with the transition provisions of eachstandard, disclose whether any standards have beenadopted by the reporting entity before the effectivedate.

1p30 7. Inappropriate accounting policies are not rectifiedeither by disclosure of the accounting policies used orby notes or explanatory material.

2. Specific policies

1p134 The guidance in paragraph 134 of PBE IPSAS 1 should beconsidered before determining if any of the followingaccounting policies could be considered to be significant:

1. Consolidation principles, including accounting for:

(a) subsidiaries; and

(b) associates.

2. Business combinations.

8p64 3. Joint ventures, including the method the ventureruses to recognise its interests in jointly controlledentities.

4. Foreign currency transactions and translation.

17p88(a) – (c) 5. Property, plant and equipment – for each class:

(a) measurement basis (for example, cost lessaccumulated depreciation and impairmentlosses, or revaluation less subsequentdepreciation);

(b) depreciation method (for example, the straight-line method); and

(c) the useful lives or the depreciation rates used.

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16p86 6. Investment property. Disclose:

(a) whether the entity applies the fair value modelor the cost model;

(b) if it applies the fair value model, whether, andin what circumstances, property interests heldunder operating leases are classified andaccounted for as investment property;

(c) when classification is difficult, the criteria theentity uses to distinguish investment propertyfrom owner-occupied property and fromproperty held for sale in the ordinary course ofoperations;

16pRDR86.1 (d) the methods and significant assumptionsapplied in determining the fair value ofinvestment property, including a statement onwhether the determination of fair value wassupported by market evidence or was moreheavily based on other factors (which should bedisclosed) because of the nature of the propertyand lack of comparable market data; and

(e) the extent to which the fair value of investmentproperty (as measured or disclosed in thefinancial statements) is based on a valuation byan independent valuer who holds a recognisedand relevant professional qualification and hasrecent experience in the location and category ofthe investment property being valued.If there has been no such valuation, that factshall be disclosed;

31p117(a) 7. Other intangible assets. Disclose, for each class(distinguishing between internally generated andother intangible assets):

31p117(a) (a) whether the useful lives are indefinite or finite;

31p117(a-b) (b) for intangible assets with finite useful lives, theamortisation rates and amortisation methodsused (for example, the straight-line method);and

31p107 (c) for intangible assets with indefinite useful lives,that they have been tested for impairmentannually and whenever there is an indicationthat the intangible asset may be impaired.

8. Treatment of research costs and the basis forcapitalisation of development costs and websitedevelopment costs.

5p16, 5p40(a) 9. Borrowing costs (for example, expensed orcapitalised as part of a qualifying asset).

30p25 10. For each class of financial asset, financial liability andequity instrument, disclose the accounting policiesand methods adopted, including the criteria forrecognition and the basis of measurement (refer tosection A9).

11. Leases.

12p47(a) 12. Inventories, including the cost formula used (forexample, FIFO or weighted average cost).

13. Provisions.

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25p141(a) 14. Employee benefit costs – including policy forrecognising actuarial gains and losses.

15. Taxes, including deferred taxes.

9p39(a) 16. Revenue recognition including the method adopted todetermine the stage of completion of transactionsinvolving the rendering of services.

23p107(a) 17. Non exchange transactions:

(a) accounting policy adopted for recognition ofrevenue; and

23p107(b) (b) for major classes of revenue from non-exchangetransactions, the basis on which the fair value ofinflowing resources are measured

2p57 18. Policy for determining the composition of cash andcash equivalents.

26p90.1, 90.9 19. Policy for all assets including the selection of thecash- generating units to allocate the goodwill for thepurpose of assessing such assets for impairment.

26p114, 21p72A 20. The criteria developed to distinguish cash-generatingassets from non-cash-generating assets.

3. Changes in accounting policy

3p24(a) 1. Where a change in accounting policy is made on theinitial adoption of a PBE Standard, provide thedisclosures in accordance with the specifictransitional provisions of that standard.

3p33 2. On initial application of a PBE Standard that (a) hasan effect on the current period or any prior period, (b)would have an effect, except that it is impracticable todetermine the amount of the adjustment, or (c) mighthave an effect on future periods, disclose:

(a) the title of the Standard;

(b) that the change in accounting policy is made inaccordance with its transitional provisions,when applicable;

(c) the nature of the change in accounting policy;

(d) a description of the transitional provisions,when applicable;

(e) the transitional provisions that might have aneffect on future periods, when applicable;

(f) for the current period and each prior periodpresented, to the extent practicable, the amountof the adjustment for each financial statementline item affected;

(g) the amount of the adjustment relating to periodsbefore those presented, to the extent practicable;and

(h) if the retrospective application required isimpracticable for a particular prior period, orfor periods before those presented, thecircumstances that led to the existence of thatcondition and a description of how and fromwhen the change in accounting policy has beenapplied.

These disclosures need not be repeated in thefinancial statements of subsequent periods.

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3pRDR33.1 A Tier 2 entity shall disclose an explanation if it isimpracticable to determine the amounts required to bedisclosed by paragraph 33(f) or 33(g).

3p35 3. If a new relevant PBE Standard that has been issuedbut is not yet effective has not been applied, disclose:

(a) this fact; and

(b) known or reasonably estimable informationrelevant to assessing the possible impact thatapplication of the new Standard will have onthe entity's financial statements in the period ofinitial application.

DV 4. In complying with the previous paragraph, considerdisclosing:

3p36 (a) the title of the new PBE standard;

(b) the nature of the impending change or changesin accounting policy;

(c) the date by which application of the Standard isrequired;

(d) the date as at which it plans to apply theStandard initially; and

(e) either:

(i) a discussion of the impact that initialapplication of the Standard is expected tohave on the entity's financial statements;or

(ii) if that impact is not known or reasonablyestimable, a statement to that effect.

3p34 5. On a voluntary change in accounting policy that (a)has an effect on the current period or any priorperiod, (b) would have an effect, except that it isimpracticable to determine the amount of theadjustment, or (c) might have an effect on futureperiods, disclose:

(a) the nature of the change in accounting policy;

(b) the reasons why applying the new accountingpolicy provides reliable faithfully representativeand more relevant information;

(c) the amount of the adjustment for the currentperiod and each prior period presented, to theextent practicable for each financial statementline item affected:

(d) the amount of the adjustment relating to periodsbefore those presented, to the extent practicable;and

(e) if the retrospective application required isimpracticable for a particular prior period, or forperiods before those presented, thecircumstances that led to the existence of thatcondition and a description of how and fromwhen the change in accounting policy has beenapplied.

These disclosures need not be repeated in thefinancial statements of subsequent periods.

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A3 Statement of comprehensive revenue and expenseand related notes

Y-NA-NM REF


Refer to the Appendix to PBE IPSAS1 p112 for an examplestatement of comprehensive revenue and expense.

1p22.1 1. Present all items of revenue and expense recognisedin a period:

(a) In a single statement of comprehensive revenueand expense, with surplus or deficit and othercomprehensive revenue and expense presentedin two sections. The sections shall be presentedtogether, with the surplus or deficit sectionpresented first followed directly by the othercomprehensive revenue and expense section; or

(b) in a statement displaying components of surplusor deficit (separate statement of financialperformance) and a second statement beginningwith surplus or deficit and displayingcomponents of other comprehensive revenueand expense (statement of other comprehensiverevenue and expense)

1p98.1 2. Present in addition to the surplus or deficit and othercomprehensive revenue and expense sections:

(a) Surplus or deficit;

(b) Total other comprehensive revenue andexpense; and

(c) Comprehensive revenue and expense for theperiod, being the total of surplus or deficit andother comprehensive revenue and expense

If an entity presents a separate statement of financialperformance it does not present the surplus or deficitsection in the statement presenting comprehensiverevenue and expense.

1p99.1 3. The surplus or deficit section of the statement ofcomprehensive revenue and expense shall include lineitems showing the following amounts for the period:

(a) revenue;

(b) finance costs;

(c) share of the surplus or deficit of associates andjoint ventures accounted for using the equitymethod;

(d) tax expense;

IFRS5p33 (e) a single amount comprising the total of:

(i) the post-tax gain or loss on discontinuedoperations; and

(ii) the post-tax gain or loss recognised on themeasurement to fair value less costs to sellor on the disposal of the assets or disposalgroups that make up discontinuedoperations;

(f) surplus or deficit;

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1p103.1 4. The other comprehensive revenue and expensesection shall present line items for the amounts forthe period of:

(a) items of other comprehensive revenue andexpense classified by nature (excluding amountsin (b) below); and

(b) the share of the other comprehensive revenue ofassociates and joint ventures accounted forusing the equity method.

1p98.2 5. Present the following in the statement ofcomprehensive revenue and expense as allocations forthe period:

(a) surplus or deficit for the period attributable to:

(i) minority interests; and

(ii) owners of the controlling entity; and

(b) total comprehensive revenue and expense forthe period attributable to:

(i) minority interests; and

(ii) controlling entity of the parent.

1p98.3 6. Present additional line items (includingdisaggregating the line items listed in question 3above), headings and subtotals in the statement ofcomprehensive revenue and expense when suchpresentation is relevant to an understanding of theentity's financial performance.

1p98.3A 7. When subtotals are presented in accordance withquestion 6 above, those subtotals shall:

(a) be comprised of line items made up of amountsrecognised and measured in accordance withPBE Standards;

(b) be presented and labelled in a manner thatmakes the line items that constitute the subtotalclear and understandable;

(c) be consistent from period to period, inaccordance with paragraph 42; and

(d) not be displayed with more prominence than thesubtotals and totals required in PBE Standardsfor the statement of comprehensive revenue andexpense.

1p98.3B 8. Present the line items in the statement ofcomprehensive revenue and expense that reconcileany subtotals presented in accordance with question 6above with the subtotals or totals required in PBEStandards for such statement.

1p103.2,IAS 12p81(ab)

9. Disclose, either in the statement of othercomprehensive revenue and expense or in the notes,the amount of income tax relating to each item ofother comprehensive revenue and expense includingreclassification adjustments.

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1p103.3 Items of other comprehensive revenue and expensemay be presented:

(a) net of related tax effects, or

(b) before related tax effects with one amountshown for aggregate amount of income taxrelating to those components.

1p103.4 10. Disclose reclassification adjustments relating tocomponents of other comprehensive revenue andexpense.

1p103.6 11. An entity may present reclassification adjustmentsin the statement of comprehensive revenue andexpense or in the notes. An entity presentingclassification adjustments in the notes presents theitesm of other comprehensive revenue and expenseafter any related reclassification adjustments.

1p106 12. When items of revenue and expense are material,disclose their nature and amount separately.

1p108 13. Present, either on the face of the statement ofcomprehensive revenue and expense or in the notes, asub-classification of total revenue, classified in amanner appropriate to the entity’s operations.

1p109, 110 14. Present, either on the face of the statement ofcomprehensive revenue and expense or in the notes,an analysis of expenses using a classification based oneither the nature of expenses or their function withinthe entity, whichever provides information that isreliable faithfully representative and more relevant.Entities are encouraged to present this analysis on theface of the statement of comprehensive revenue andexpense.

1p115 15. Where the entity classifies expenses by function,disclose additional information on the nature ofexpenses, including depreciation, amortisation andemployee benefits expense.

25p105 16. Recognise a portion of actuarial gains and losses asrevenue or expense if the criteria specific inPBE IPSAS 25 paragraph 105 are met.

27p51 17. Disclose the nature and amount of material items ofrevenue or expense that arise due to climatic, diseaseand other natural risks.

IAS12pRDR81.1 18. A Tier 2 entity shall disclose the aggregate amount ofcurrent and deferred income tax relating to itemsrecognised in other comprehensive revenue andexpense.

3p44, 45 19. Disclose the nature and amount of a change in anaccounting estimate that has an effect in the currentperiod or that is expected to have an effect in futureperiods. If it is impracticable to estimate the amount,disclose this fact.

31p120 20. Such disclosure may arise from changes in:

(a) The assessment of an intangible asset’s life;

(b) The amortisation method; or

(c) Residual values.

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2. Individual items

9p39(b) 1. Disclose the amount of each significant category ofrevenue recognised during the period, includingrevenue arising from:

(a) the rendering of services;

(b) the sale of goods;

(c) interest;

(d) royalties;

(e) dividends or similar distributions; and

(f) members’ fees or subscriptions (exchangecomponent).

9p39(c) 2. Disclose the amount of revenue arising fromexchanges of goods or services included in eachsignificant category of revenue.

1p46 3. Items not individually material are aggregated withother items in the statement of comprehensiverevenue and expense or in the notes. An item that isnot sufficiently material to warrant separatepresentation on the face of those statements maynevertheless be sufficiently material for it to bepresented separately in the notes.

1p107 4. Circumstances that would give rise to the separatedisclosure of items of revenue and expense include:

(a) the write-down of inventories to net realisablevalue or of property, plant and equipment torecoverable amount or recoverable serviceamount, as well as the reversal of such write-downs;

(b) a restructuring of the activities of an entity andthe reversal of any provisions for the costs ofrestructuring;

(c) disposals of items of property, plant andequipment;

(d) privatisation or other disposals of investments;

(e) discontinued operations;

(f) litigation settlements; and

(g) other reversals of provisions.

5. Employee benefits – disclose:

25p57 (a) the expense for defined contribution plans;

25p164 (b) the expense resulting from termination benefits,if significant.

31p125 6. Disclose research and development expenditurerecognised as an expense during the period.

4p61(a) 7. The amount of exchange differences recognised insurplus or deficit, except for those arising on financialinstruments measured at fair value through surplusor deficit in accordance with PBE IPSAS 29; and

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4p61(b) 8. Disclose:

(a) net foreign exchange differences recognised inother comprehensive revenue and expense, andaccumulated in a separate component of netassets/equity; and

(b) a reconciliation of the amount of such exchangedifferences at the beginning and end of theperiod.

26p115 -11821p73 - 75

9. Disclose separately for each class of cash-generatingassets and each class of non-cash-generating assetsthe following amounts recognised in surplus or deficitduring the period, and the line items in which theyare included:

(a) impairment losses; and

(b) reversals of impairment losses.

A class of assets is a grouping of assets of similarnature and use in an entity’s operations.

The information required above may be presentedwith other information disclosed for the class ofassets.

31p117(d) 10. Disclose the line item(s) of the statement ofcomprehensive revenue and expense in which anyamortisation of intangible assets are included.

1p116.1 11. Disclose fees to each auditor or reviewer, includingany network firms, separately for:

(a) the audit or review of the financial statements;and

(b) all other services performed during thereporting period.

1p116.2 12. Describe the nature of other services.

3. Revenue from non-exchange transactions

23p106(a) 1.Disclose either on the face of, or in the notes to, thegeneral purpose financial statements:

(a) The amount of revenue from non-exchangetransactions recognised during the period bymajor classes showing separately:

(i) Taxes, showing separately major classes oftaxes; and

(ii) Transfers, showing separately majorclasses of transfer revenue.

23p107(c),(d) 2. Disclose in the notes:

(a) For major classes of taxation revenue that theentity cannot measure reliably during the periodin which the taxable event occurs, informationabout the nature of the tax; and

(b) The nature and type of major classes ofbequests, gifts, and donations, showingseparately major classes of goods in-kindreceived.

DV, 23p108 3. Entities are encouraged to disclose the nature andtype of major classes of services in-kind received,including those not recognised. The extent to whichan entity is dependent on a class of services in-kind

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will determine the disclosures it makes in respect ofthat class.

Not-for-profit PBE entities:

DV, 23pB24 1. When different patterns of recognising non-exchangerevenue and related expenditure result in an apparentoverstatement of surplus/deficit in one period and anapparent understatement in another period, entitiesmay consider disclosing the nature of suchuncompleted arrangements.

23pB17 2. When an entity purchases goods for resale or as prizesin an auction or raffle, the gross revenue raised andthe cost of those goods purchased must be disclosedin the statement of comprehensive revenue andexpense.

DV, 23pB17 3. When an entity purchases goods for resale or as prizesin an auction or raffle, the net amount raised could bedisclosed in the notes.

4. Income tax

IAS12p79 1. Disclose the major components of tax expense(income). PBE IPSAS 12 paragraph 80, givesexamples of the major components of tax expense(income).

IAS12p81(c) 2. Provide an explanation of the relationship betweentax expense (income) and accounting profit in eitherof the following forms:

(a) a numerical reconciliation between tax expense(income) and product of accounting profit,multiplied by the applicable tax rate(s),disclosing also the basis on which the applicabletax rate(s) is (are) computed (refer toPBE IPSAS12 paragraph 85); or

(b) a numerical reconciliation between the averageeffective tax rate and the applicable tax rate,disclosing also the basis on which the applicabletax rate is computed (refer to PBE IPSAS 12paragraph 85).

IAS12p81(d) 3. Provide an explanation of changes in the applicabletax rate(s) compared to the previous period.

A4 Statement of changes in net assets / equity andrelated notes

Y-NA-NM REF

1. Statement of changes in net assets / equity

Refer to the Appendix to PBE IPSAS 1 for an examplestatement of changes in net assets / equity.

1p118 1. Present a statement of changes in net assets / equityshowing on the face of the statement:

(a) total comprehensive revenue and expense for theperiod, showing separately the total amountsattributable to owners of the controlling entityand to minority interests;

(b) for each component of net assets / equity, theeffects of changes in accounting policies andcorrection of errors recognised in accordancewith PBE IPSAS 3;

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1p93,94(f) 2. Components of net assets / equity are disaggregatedinto contributed capital, accumulated comprehensiverevenue and expense, and any reserves and disclosedeither in the statement of financial position or thenotes.

1p119 3. Present either on the face of the statement of changesin net assets / equity or in the notes:

(a) The amounts of transactions with owners actingin their capacity as owners, showing separatelydistributions to owners and contributions byowners

(b) The balance of accumulated comprehensiverevenue and expense at the beginning of theperiod and at the reporting date, and the changesduring the period; and

(c) To the extent that components of net assets /equity are separately disclosed, a reconciliationbetween the carrying amount of each componentof net assets / equity at the beginning and theend of the period, separately disclosing eachchange.

1p1171pRDR117.1

4. Disclose, either in the statement of comprehensiverevenue and expense or statement of changes in netassets / equity or in the notes, the amount ofdividends or similar distributions recognised asdistributions to owners during the period and therelated amount per share.

1p122 In PBE IPSAS 1 paragraph 122 the contributions by,and distributions to owners include, for exampletransfers between two entities within an economicentity. Contributions by owners in their capacity asowners to controlled entities are recognised as adirect adjustment to net assets /equity only wherethey explicitly give rise to residual interests in theentity in the form of rights to net assets / equity.

28p44 5. Disclose the amount of transaction costs accountedfor as a deduction from net assets / equity in theperiod separately in the notes.


1p98(b) 1. Disclose a description of the nature and purpose ofeach reserve within net assets / equity.

31p123(b) 2. Disclose the amount of the revaluation surplus thatrelates to intangible assets at the beginning and endof the reporting period, indicating the changes duringthe reporting period and any restrictions on thedistributions to owners

1p98(a) 3. Disclose the following for each class of share capitaleither on the statement of financial position or in thenotes (this information is usually disclosed in thenotes):

(a) the number of shares authorised;

(b) the number of shares issued and fully paid, andissued but not fully paid;

(c) par value per share, or that the shares have nopar value;

(d) a reconciliation of the number of sharesoutstanding at the beginning and end of the year;

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(e) the rights, preferences and restrictions attachedto that class, including restrictions on thedistribution of dividends and the repayment ofcapital;

(f) shares in the entity held by the entity itself or byits controlled entities or associates; and

(g) shares reserved for issuance under options andcontracts for the sale of shares, including theterms and amounts.

28p13, 22, 24AG49, 50

Certain types of preference shares should beclassified as liabilities (not in equity). Refer to PBEIPSAS 28 paragraph 22(a).

1p95 4. When an entity has no share capital, disclose sub-classifications of net assets/equity, either on the faceof the statement of financial position or in the notes,showing separately:

(a) Contributed capital, being the cumulative total atthe reporting date of contributions from owners,less distributions to owners;

(b) Accumulated comprehensive revenue andexpense;

(c) Reserves, including a description of the natureand purpose of each reserve within netassets/equity; and

(d) Minority interests.

1p149(b) 5. Disclose in the notes the amount of any cumulativepreference dividends or similar distributions notrecognised.

28p39 6. Separately disclose the amount of treasury sharesheld either in the statement of financial position or inthe notes.

28p39 7. If any entity reacquires its own equity instrumentsfrom related parties, provides disclosure inaccordance with PBE IPSAS 20.

A5 Statement of financial position and related notes Y-NA-NM REF


Refer to the Appendix to PBE IPSAS 1 for an examplebalance sheet.

1p88 1. Include in the statement of financial position, as aminimum, the following line items:

(a) property, plant and equipment;

(b) investment property;

(c) intangible assets;

(d) financial assets (excluding amounts shownunder (e), (g), (h) and (i));

(e) investments accounted for using the equitymethod;

(f) inventories;

(g) recoverables from non-exchange transactions(for example, legacies receivable);

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(h) receivables from exchange transactions;

(i) cash and cash equivalents;

1p88.1(a) (j) the total of assets classified as held for sale andassets included in disposal groups classified asheld for sale in accordance with PBE IFRS 5;

(k) taxes and transfers payable;

(l) payables under exchange transactions;

(m) provisions;

(n) financial liabilities (excluding amounts shownunder (k), (l) and (m))

(o) minority interests presented within net assets /equity;

(p) net assets / equity attributable to owners of thecontrolling entity; and

1p88.1(b) (q) liabilities included in disposal groups classifiedas held for sale in accordance with PBE IFRS 5;

1p89 2. Present additional line items, (includingdisaggregating the line items listed in question 1above), headings, and sub-totals shall be presented onthe face of the statement of financial position whensuch presentation is relevant to an understanding ofthe entity’s financial position. headings and subtotalson the face of the statement of financial position whensuch presentation is relevant to an understanding ofthe entity's financial position.

1p89A 3. When subtotals are presented in accordance withquestion 2 above, those subtotals shall:

(a) be comprised of line items made up of amountsrecognised and measured in accordance withPBE Standards;

(b) be presented and labelled in a manner thatmakes the line items that constitute the subtotalclear and understandable;

(c) be consistent from period to period; and

(d) not be displayed with more prominence than thesubtotals and totals required in PBE Standardsfor the statement of financial position.

1p93 4. Disclose further sub-classifications of the line itemspresented, classified in a manner appropriate to theentity's operations. This disclosure is made either inthe statement of financial position or in the notes.

1p70 5. If the current/non-current distinction of assets andliabilities is made on the face of the balance sheet,apply the classification rules in PBE IPSAS 1paragraphs 76-87. If they are not made on the face ofthe balance sheet, ensure that a presentation based onliquidity provides information that is reliablefaithfully representative and more relevant. Ensurealso that assets and liabilities are presented in broadlythe order of their liquidity.

1p74 An entity is permitted to use a mixed basis ofpresentation, including current/non-currentclassification and in order of liquidity, when thisprovides information that is reliable faithfully

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representative and more relevant – for example,when an entity has diverse operations.

1p71 6. Whichever method of presentation is applied,disclose the non-current portion (the amountexpected to be recovered or settled after more than12 months) for each asset and liability item thatcombines current and non-current amounts.

2. Measurement uncertainty

IAS34p26 1. If an estimate of an amount reported in an interimperiod – for example, a provision – is changedsignificantly during the final interim period of thefinancial year but a separate financial report is notpublished for that final interim period, disclose thenature and amount of that change in estimate in anote to the annual financial statements for thatfinancial year.

This item is applicable only when the reportingentity publishes an interim financial report preparedin accordance with PBE IAS 34.

2. Note that certain standards require further specificdisclosures about sources of estimation uncertaintyand judgements. The specific disclosure requirementsin the other sections of this disclosure checklistinclude:

(a) Methods and assumptions applied indetermining fair values for:

16p86(d) (i) investment property (Section A5.4);

30p31 (ii) financial instruments (Section A9); and

(b) Nature, timing and certainty of cash flowsrelating to the following:

19p98 (i) contingencies (Section A5.22);

30p38 (ii) financial instruments – terms andconditions that may affect the amount,timing and certainty of future cash flows;

32p32(b) (iii) significant service concessionarrangements – terms of the arrangementthat may affect the amount, timing andcertainty of future cash flows (SectionC3); and

IFRS4p37 (iv) insurance – information about nature,timing and uncertainty of future cashflows from insurance contracts (AppendixA); and

(c) Other relevant disclosures:

26p120-122, 123-124 (i) impairment of assets – key assumptionsfor cash flow projections, periods coveredby projections, growth rates forextrapolations and discount rates indetermining value in use (Section A5.6and 5.7);

25p141(n) (ii) post-employment defined benefit plans –principal actuarial assumptions (SectionA5.17); and

IFRS4p37(c) (iii) insurance – process used to determineassumptions that have the greatest effecton the measurement of recognised assets,

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liabilities, revenue and expenses frominsurance contracts. When practicable, aninsurer shall also give quantified disclosureof those assumptions.

3. Property, plant and equipment

13p41 The disclosure requirements of PBE IPSAS 16 applyto the amounts of leased assets under finance leasesthat are accounted for by the lessee as acquisitions ofassets.

17p88(d), 1p94(a) 1. Disclose the gross carrying amount and theaccumulated depreciation (aggregated withaccumulated impairment losses) for each class ofproperty, plant and equipment (PPE), at thebeginning and end of each period presented.

17p88(e) 2. Provide a reconciliation of the carrying amount foreach class of PPE at the beginning and end of eachperiod presented showing:

(a) additions;

(b) assets classified as held for sale or included in adisposal group classified as held for sale inaccordance with PBE IFRS 5 and otherdisposals;

(c) acquisitions through entity combinations;

(d) increases or decreases from revaluations orimpairment losses (if any) recognised orreversed directly in net assets/equity inaccordance with PBE IPSAS 21 or PBE IPSAS 26as appropriate;

(e) impairment losses recognised in surplus ordeficit;

(f) impairment losses reversed in surplus or deficit;

(g) depreciation;

(h) net exchange differences on the translation offinancial statements from the functionalcurrency into a different presentation currency,including the translation of a foreign operationinto the presentation currency of the reportingentity; and

(i) other changes.

17pRDR88.1 A Tier 2 entity is not required to disclose thereconciliation specified in paragraph 88(e) for priorperiods.

17p92 3. For PPE stated at revalued amounts, disclose:

(a) the effective date of the revaluation;

(b) whether an independent valuer was involved;

(c) the methods and significant assumptionsapplied in estimating the assets' fair values;

(d) the extent to which the assets' fair values weredetermined directly by reference to observableprices in an active market or recent markettransactions on arm's length terms, or the extentto which they were estimated using othervaluation techniques; and

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(e) the revaluation surplus indicating the change forthe period and any restrictions on thedistribution of the balance to shareholders orother equity holders.

Refer also to the disclosures on revaluation surplusin Section A4.

17p89 4. The financial statements shall also disclose for eachclass of PPE in the financial statements:

(a) the existence and amounts of restrictions of title,and PPE pledged as security for liabilities;

(b) the amount of expenditures recognised in thecarrying amount of PPE in the course ofconstruction; and

(c) If it is not disclosed separately on the face of thestatement of comprehensive revenue andexpense, disclose the amount of compensationfrom third parties for items of PPE that wereimpaired, lost or given up and that is includedin surplus or deficit.

5. Borrowing costs. Disclose:

5p40(b) (a) the amount of borrowing costs capitalisedduring the period; and

5p40(c) (b) the capitalisation rate used to determine theamount of borrowing costs eligible forcapitalisation (when it is necessary to apply acapitalisation rate to funds borrowedgenerally).

DV, 17p94 6. Voluntary disclosures. Disclose:

(a) the carrying amount of temporarily idle PPE;

(b) the gross carrying amount of any fullydepreciated PPE that is still in use;

(c) the carrying amount of PPE retired from activeuse and not classified as held for sale underPBE IFRS 5; and

(d) when the cost model is used, the fair value ofPPE if this is materially different from thecarrying amount.

17p94.1 7. Disclose

(a) A description of the heritage assets held by theentity that have not been recognised in thefinancial statements, including the significanceand nature of such assets; and

(b) Where current information is available, anestimate of the value of those unrecognisedassets, such as a recent insurance value.

4. Investment property

16p85 The disclosures below apply in addition to those inPBE IPSAS 13. In accordance with PBE IPSAS 13, theowner of an investment property provides lessors'disclosures about leases into which it has entered. Anentity that holds an investment property underfinance or operating lease provides lessees'disclosures for finance leases and lessors' disclosuresfor any operating leases into which it has entered.

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16p85,86 1. Disclose:

16p86(f) (a) the amounts recognised in surplus or deficitfor:

(i) rental revenue from investment property;

(ii) direct operating expenses (includingrepairs and maintenance) arising frominvestment property that generated rentalrevenue during the period; and

(iii) direct operating expenses (includingrepairs and maintenance) arising frominvestment property that did not generaterental revenue during the period.

16p87, 2. For investment property carried at fair value, providea reconciliation of the carrying amount at thebeginning and end of each period presented, showingthe following:

16pRDR87.2 (a) additions; disclosing separately those additionsresulting from acquisitions and those resultingfrom subsequent expenditure recognised in thecarrying amount of the asset;

(b) additions resulting from acquisitions throughentity combinations;

(c) disposals;

(d) net gains or losses from fair value adjustments;

(e) net exchange differences arising on thetranslation of the financial statements into adifferent presentation currency and ontranslation of a foreign operation into thepresentation currency of the reporting entity;

(f) transfers to and from inventories; and owner-occupied property; and

(g) other changes.

16pRDR87.1 A Tier 2 entity is not required to disclose thereconciliation specified in paragraph 87 for priorperiods.

16p89 3. In the exceptional cases referred to in paragraph 62,when an entity measures investment property usingthe cost model in PBE IPSAS 17, the reconciliationrequired by paragraph 87 shall disclose amountsrelating to that investment property separately fromamounts relating to other investment property. Inaddition an entity shall disclose:

(a) a description of the investment property;

(b) an explanation of why fair value cannot bereliably measured;

(c) if possible, the range of estimates within whichfair value is highly likely to lie; and

(d) on disposal of investment property not carried atfair value:

(i) that the entity has disposed of investmentproperty not carried at fair value;

(ii) the carrying amount of that investmentproperty at the time of sale; and

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(iii) the amount of gain or loss recognised.

16p86(g) 4. Disclose the existence and amounts of restrictions onthe realisability of investment property or theremittance of revenue and proceeds of disposal.

16p90 5. In addition to the disclosures required by paragraph86, an entity that applies the cost model in paragraph65 shall disclose:

(a) depreciation methods used;

(b) the useful lives or the depreciation rates used;and

(c) the gross carrying amount and the accumulateddepreciation (aggregated with accumulatedimpairment losses):

(i) at the beginning of the period; and

(ii) at the end of the period;

(d) a reconciliation of the carrying amount at thebeginning and end of the period of:

16pRDR90.1 (i) additions; disclosing separately thoseadditions resulting from acquisitions andthose resulting from subsequentexpenditure recognised as an asset;

(ii) additions resulting from acquisitionsthrough entity combinations;

(iii) disposals;

(iv) depreciation;

(v) the amount of impairment lossesrecognised, and the amount of impairmentlosses reversed, during the period inaccordance with PBE IPSAS 21 or PBEIPSAS 26, as appropriate;

(vi) the net exchange differences arising on thetranslation of the financial statements intoa different presentation currency, and ontranslation of a foreign operation into thepresentation currency of the reportingentity;

(vii) transfers to and from inventories; andowner-occupied property;

(viii) other changes; and

(e) the fair value of investment property. In theexceptional cases described in paragraph 62,when an entity cannot determine the fair valueof the investment property reliably, disclose:

(i) a description of the investment property;

(ii) an explanation of why fair value cannotbe determined reliably; and

(iii) if possible, the range of estimates withinwhich fair value is highly likely to lie.

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16p88 6. When a valuation obtained for investment propertyis adjusted significantly for the purpose of thefinancial statements, for example, to avoid double-counting of assets or liabilities that are recognised asseparate assets and liabilities as described inparagraph 59), disclose:

(a) a reconciliation between the valuation obtainedand the adjusted valuation included in thefinancial statements; and

(b) show separately, in the reconciliation:

(i) the aggregate amount of any recognisedlease obligations that have been addedback; and

(ii) any other significant adjustments.

5. Intangible assets (excluding goodwill)

13p41 The disclosure requirements of PBE IPSAS 31 apply toowned intangible assets and to the amounts of leasedintangible assets held under finance leases that areaccounted for as acquisitions of assets.

31p117(e) 1. Disclose a reconciliation of the carrying amount at thebeginning and end of the period for each class ofintangible assets. This reconciliation should show:

(a) additions (indicating separately those frominternal development, those acquired separately;

(b) assets classified as held for sale or included in adisposal group classified as held for sale (inaccordance with PBE IFRS 5);

(c) increases or decreases during the periodresulting from revaluations;

(d) impairment losses recognised in surplus ordeficit during the period;

(e) impairment losses reversed in surplus or deficitduring the period;

(f) amortisation recognised during the period;

(g) net exchange differences from the translation ofthe financial statements into a presentationcurrency, and on the translation of a foreignoperation into the entity's presentationcurrency; and

(h) other changes in the carrying amount during theperiod.

31p117(c) (i) the gross carrying amount and any accumulatedamortisation (aggregated with accumulatedimpairment losses) at the beginning and end ofthe period.

31pRDR117.1 A Tier 2 entity is not required to disclose thereconciliation specified in paragraph 117(e) for priorperiods.

31p118 PBE IPSAS 31 paragraph 118 gives examples ofseparate classes of intangible assets. Comparativeinformation for these items is required.

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31p121(a) 2. For intangible assets with indefinite useful lives,disclose:

(a) the carrying amount; and

(b) the reasons supporting the assessment of anindefinite useful life. In giving these reasons, theentity shall describe the factor(s) that played asignificant role in determining that the asset hasan indefinite useful life.

31p121(b) 3. The entity is required to provide the following for anyindividual intangible asset that is material to thefinancial statements of the entity:

(a) a description of the asset,

(b) its carrying amount; and

(c) remaining amortisation period.

31p123(a),(c) 4. For intangible assets carried at revalued amounts,disclose for each class of intangible assets:

(a) the effective date of the revaluation;

(b) the carrying amount of revalued intangibleassets; and

(c) the method and significant assumptions appliedin estimating the assets’ fair value.

31p121(d) 5. Disclose:

(a) the existence and carrying amounts of intangibleassets whose title is restricted; and

(b) the carrying amounts of intangible assetspledged as security for liabilities.

31p121(c) 6. For intangible assets acquired through a non-exchange transaction and initially recognised at fairvalue (refer to PBE IPSAS 31 paragraphs 42-43),disclose:

(a) the fair value initially recognised for theseassets;

(b) their carrying amount; and

(c) whether they are measured after recognitionunder the cost model or the revaluation model.

DV, 31p127 7. An entity is encouraged, but not required, todisclose:

(a) a description of any fully amortised intangibleasset that is still in use; and

(b) a brief description of significant intangibleassets controlled by the entity but notrecognised as assets because they did not meetthe recognition criteria in PBE IPSAS 31..

6. Impairment of cash-generating assets

13p41 The disclosure requirements of PBE IPSAS 26 apply toowned assets and to the amounts of leased assets heldunder finance leases that are accounted for by the lesseeas acquisitions of assets in the lessee's accounts.

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26p120 1. For each material impairment loss recognised orreversed during the period for a cash-generatingasset, including goodwill, or a CGU, disclose:

(a) the events and circumstances that led to therecognition or reversal of the impairment loss;

(b) the amount of the impairment loss recognisedor reversed;

(c) for a cash-generating asset, the nature of theasset;

(d) for a CGU:

(i) a description of the CGU (such as whetherit is a product line, a plant, a businessoperation, a geographical area);

(ii) if the aggregation of assets for identifyingthe CGU has changed since the previousestimate of the CGU's recoverable amount(if any), a description of the current andformer ways of aggregating assets andthe reasons for changing the way the CGUis identified;

(e) whether the recoverable amount of the asset orCGU is its fair value less costs to sell or its valuein use;

(f) if the recoverable amount is the fair value lesscosts to sell, the basis used to determine fairvalue less costs to sell (such as whether fairvalue was determined by reference to an activemarket); and

(g) if the recoverable amount is value in use, thediscount rate(s) used in the current estimateand previous estimate (if any) of value in use.

26p121 2. Disclose the following information for the aggregateimpairment losses and the aggregate reversals ofimpairment losses recognised during the period forimpairment losses or reversals that are notindividually material:

(a) the main classes of assets affected byimpairment losses or reversals of impairmentlosses; and

(b) the main events and circumstances that led tothe recognition of these impairment losses andreversal of impairment losses.

DV, 26p122 3. An entity is encouraged to disclose assumptions usedto determine the recoverable amount of assetsduring the period.

26p122.1 4. If any portion of the goodwill acquired in a businesscombination during the reporting period has not beenallocated to a CGU (group of units) at the reportingdate disclose:

(a) the amount of the unallocated goodwill; and

(b) the reasons why that amount remainsunallocated.

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26p123 5. Where the carrying amount of goodwill or intangibleassets with indefinite useful lives allocated to a cash-generating unit (or group of units’) is significant incomparison to the total carrying amount of goodwillor intangible assets with indefinite useful lives,disclose the following for each CGU (or group ofCGUs):

(a) the carrying amount of intangible assets withindefinite useful lives;

(b) the carrying amount of goodwill;

(c) the basis on which the recoverable amounts ofthe unit (group of units) have been determined(i.e. value in use or fair value less cost to sell);

(d) if the recoverable amounts of the units (groupof units) are based on value in use:

(i) a description of each key assumption onwhich management has based its cashflow projections for the period covered bythe most recent budgets/ forecasts (keyassumptions are those to which therecoverable amounts of the unit (group ofunits), are most sensitive);

(ii) a description of management's approachto determining the values assigned to eachkey assumption, whether those value(s)reflect past experience or, if appropriate,are consistent with external sources ofinformation. If not, disclose how and whythey differ from past experience and/orexternal sources of information;

(iii) the period over which management hasprojected cash flows based on financialbudgets/forecasts approved bymanagement and, when a period greaterthan five years is used for a CGU (orgroup of CGUs), an explanation of whythat longer period is justified;

(iv) the growth rate used to extrapolate cashflow projections beyond the periodcovered by the most recentbudgets/forecasts, and the justification forusing any growth rate that exceeds thelong-term average growth rate for theproducts, industries, or country orcountries in which the entity operates, orfor the market to which the unit (group ofunits’) is dedicated; and

(v) the discount rate(s) applied to the cashflow projections;

(e) if the unit’s (group of units’) recoverableamounts are based on the fair value less cost tosell, disclose the methodology used to determinethe fair value less cost to sell. If fair value lesscost to sell is not determined using observablemarket prices for the unit (group of units’),disclose the following information:

(i) a description of each key assumption onwhich management has based itsdetermination of fair value less cost to sell(key assumptions are those to which the

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recoverable amounts of the units (group ofunit’s) are most sensitive); and

(ii) a description of management's approachto determining the value(s) assigned toeach key assumption, whether thosevalues reflect past experience or, ifappropriate, are consistent with externalsources of information, and if not, howand why they differ from past experienceor external sources of information; and

(f) If fair value less costs to sell is determined usingdiscounted cash flow projections, the followinginformation shall also be disclosed:

(i) the period over which management hasprojected cash flows;

(ii) the growth rate used to extrapolate cashflow projections; and

(iii) the discount rate(s) applied to cash flowprojections.

(g) if a reasonably possible change in a keyassumption on which management has basedits determination of the units (group of units’)recoverable amount would cause the units(group of units) carrying amount to exceed itsrecoverable amount:

(i) the amount by which the aggregate of theunits (group of units’) recoverable amountwould exceed its carrying amount;

(ii) the value assigned to the key assumption;and

(iii) the amount by which the value assigned tothe key assumption must change, afterincorporating any consequential effects ofthat change on the other variables used tomeasure recoverable amount, in order forthe unit’s (group of units’) recoverableamount to be equal to its carryingamount.

26p124 6. If some or all of the carrying amount of goodwill orintangible assets with indefinite lives is allocatedacross multiple CGUs (groups of CGUs) and theamount so allocated to each unit (or group of units)is not significant in comparison with the entity’s totalcarrying amount of goodwill or intangible assetswith indefinite useful lives, disclose:

(a) that fact; together with

(b) the aggregate carrying amount of goodwill orintangible assets with indefinite lives allocatedto those units (group of units).

26p124 7. In addition, if (a) the recoverable amounts of any ofthose units (group of units) are based on the samekey assumption(s), and (b) the aggregate carryingamounts of goodwill or intangible assets withindefinite lives allocated to them is significant incomparison with the entity’s total carrying amountof goodwill or intangible assets with indefinite usefullives, disclose:

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(a) that fact; together with

(b) the aggregate carrying amount of intangibleassets with indefinite useful lives allocated tothose units ( groups of units);

(c) the aggregate carrying amount of goodwillallocated to those units (groups of units);

(d) a description of the key assumption(s);

(e) a description of management's approach todetermining the value(s) assigned to the keyassumption(s), whether those value(s) reflectpast experience or , if appropriate, areconsistent with external sources of information.If not, disclose how and why they differ frompast experience or external sources ofinformation:

(f) if a reasonably possible change in the keyassumption(s) would cause the aggregate of theunits’ ( group of units') carrying amount toexceed the aggregate of their recoverableamounts:

(i) the amount by which the aggregate of theunits’ (group of units’) recoverableamounts would exceed the aggregate oftheir carrying amounts;

(ii) the value(s) assigned to the keyassumption(s); and

(iii) the amount by which the value assigned tothe key assumption(s) must change, afterincorporating any effects of that changeon the other variables used to measure therecoverable amount, in order for theCGU's (or group of CGUs') recoverableamount in order for the aggregate of theunits’ (group of units’) recoverableamounts to be equal to the aggregate oftheir carrying amounts.

26p125 8. If the most recent detailed calculation of therecoverable amount of a CGU is carried forward andused in the impairment test for that unit in thecurrent period, the information incorporated into thedisclosures required by paragraphs 123 and 124above, relate to the carried forward calculation ofrecoverable amount.

7. Impairment of non-cash-generating assets

21p77 1. For each material impairment loss recognised orreversed during the period disclose:

(a) The events and circumstances that led to therecognition or reversal of the impairment loss;

(b) The amount of the impairment loss recognisedor reversed;

(c) The nature of the asset;

(d) Whether the recoverable service amount of theasset is its fair value less costs to sell or its valuein use;

(e) If the recoverable service amount is fair valueless costs to sell, the basis used to determine fairvalue less costs to sell (such as whether fair

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value was determined by reference to an activemarket); and

(f) If the recoverable service amount is value inuse, the approach used to determine value inuse.

21p78 2. Disclose the following information for the aggregateof impairment losses and aggregate reversals ofimpairment losses recognised during the period forwhich no information is disclosed in accordance with1. above:

(a) The main classes of assets affected byimpairment losses (and the main classes ofassets affected by reversals of impairmentlosses); and

(b) The main events and circumstances that led tothe recognition of these impairment losses andreversals of impairment losses.

DV, 21p79 3. An entity is encouraged, but not required, to disclosekey assumptions used to determine the recoverableservice amount of assets during the period.

8. Associates

7p1 Scope

1. Venture capital organisations or mutual funds, unittrusts and similar entities including investment-linked insurance funds that holds an investment in anassociate that is measured at fair value with changesin fair value recognised in surplus or deficit shallmake only the disclosures required by paragraphs2.(f) below (PBE IPSAS 7 paragraph 43(f)) in respectof that associate.

Disclosure

7p44 1. For investments in associates accounted for using theequity method:

(a) classify associates as a separate item under non-current assets;

(b) disclose separately, the investor's share of thesurplus or deficit of such associates and thecarrying amount of these investments;

(c) disclose separately, the investor's share of anydiscontinued operations of such associates.

7p43 2. Disclose:

(a) the fair value of investments in associates(individually) for which there are publishedprice quotations;

(b) summarised financial information ofassociates, including the aggregated amountsof assets, liabilities, revenues and surplus ordeficit;

(c) the reasons why the presumption that aninvestor does not have significant influence isovercome if the investor holds, directly orindirectly through controlled entities, less than20% of the voting or potential voting power ofthe investee but concludes that it has significantinfluence;

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(d) the reasons why the presumption that aninvestor has significant influence is overcome ifthe investor holds, directly or indirectlythrough controlled entities, 20% or more of thevoting power of the investee but concludes thatit does not have significant influence;

(e) the reporting date of an associate's financialstatements, when such financial statements areused in applying the equity method and are asof a reporting date or for a period that isdifferent from that of the investor, and thereason for using a different reporting date ordifferent period;

(f) the nature and extent of any significantrestrictions (for example, resulting fromborrowing arrangements or regulatoryrequirements) on the associates' ability totransfer funds to the investor in the form ofcash dividends or similar distributions, orrepayment of loans or advances;

(g) the unrecognised share of an associate's losses,both for the period and cumulatively, if aninvestor has discontinued recognition of itsshare of an associate's losses;

(h) the fact that an associate is not accounted forusing the equity method, in accordance withPBE IPSAS 7 paragraph 19; and

(i) summarised financial information ofassociates, either individually or in groups, thatare not accounted for using the equity method,including the amounts of total assets, totalliabilities, revenues and surpluses or deficits.

7p45 3. The investor's share of changes recognised in theassociate's other comprehensive revenue and expenseshall be recognised in other comprehensive revenueand expense by the investor.

7p46 4. In accordance with PBE IPSAS 19, disclose:

(a) its share of an associate's contingent liabilitiesincurred jointly with other investors; and

(b) those contingent liabilities that arise because theinvestor is severally liable for all or part of theliabilities of the associate.

9. Interests in joint ventures

Scope

8p1 1. PBE IPSAS 8 does not apply to venturers’ interests injointly controlled entities held by (a) venture capitalorganisations; or (b) mutual funds, unit trusts andsimilar entities including investment linked insurancefunds that are measured at fair value, with changes infair value recognised in surplus or deficit in the periodof the change in accordance with PBE IPSAS 29.However a venture holding such an interest shallmake the disclosures required by PBE IPSAS 8paragraphs 62 and 63 (see questions 1, 2 and 5below).

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Disclosure

8p63 1. Disclose a listing and description of interests insignificant joint ventures and the proportion ofownership interest held in jointly controlled entities.

8p63 2. A venturer that recognises its interests in jointlycontrolled entities using the line-by-line reportingformat for proportionate consolidation or the equitymethod, shall disclose the aggregate amounts of eachof the following related to its interests in jointventures:

(a) current assets;

(b) non-current assets;

(c) current liabilities;

(d) non-current liabilities;

(e) revenue; and

(f) expenses.

8p61(a) 3. Disclose the aggregate amount of the followingcontingent liabilities, unless the possibility of anyoutflow in settlement is remote, separately from theamount of other contingent liabilities:

(a) any contingent liabilities that the venturer hasincurred in relation to its interests in jointventures and its share in each of the contingentliabilities that have been incurred jointly withother venturers;

(b) its share of the contingent liabilities of the jointventures themselves for which it is contingentlyliable; and

(c) the contingent liabilities that arise because theventurer is contingently liable for the liabilitiesof the other venturers of a joint venture.

8p61(b) 4. Disclose a brief description of the followingcontingent assets and, where practicable, an estimateof their financial effect, where an inflow of economicbenefits or service potential is probable:

(a) any contingent assets of the venturer arising inrelation to its interest in joint ventures and itsshare in each of the contingent assets that havearisen jointly with other venturers; and

(b) its share of the contingent assets of the jointventures themselves.

8p62 5. Disclose the aggregate amount of the followingcommitments in respect of its interests in jointventures separately from other commitments:

(a) any capital commitments of the venturer inrelation to its interests in joint ventures and itsshare in the capital commitments that have beenincurred jointly with other venturers; and

(b) its share of the capital commitments of the jointventures themselves.

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10. Consolidated and separate financialstatements

1. Controlled entities

6p16 Scope

1. A controlling entity need not present consolidatedfinancial statements if and only if:

(a) the controlling entity is:

(i) itself a wholly-owned controlled entity, andusers of such financial statements areunlikely to exist or their information needsare met by its controlling entity’sconsolidated financial statements: or

(ii) a partially-owned controlled entity ofanother entity and its other owners,including those not otherwise entitled tovote, have been informed about, and do notobject to, the controlling entity notpresenting consolidated financialstatements;

(b) the controlling entity’s debt or equityinstruments are not traded in a public market (adomestic or foreign stock exchange or an over-the-counter market, including local and regionalmarkets);

(c) the controlling entity did not file, nor is it in theprocess of filing, its financial statements with asecurities commission or other regulatoryorganisation for the purpose of issuing any classof instruments in a public market; and

(d) the ultimate or any intermediate controllingentity of the controlling entity producesconsolidated financial statements available forpublic use that comply PBE Standards.

6pRDR16.1 A Tier 2 entity is not required to comply withparagraph 1(d) above. In order to qualify for theexemption not to present consolidated financialstatements, an entity must still comply with all theother conditions in paragraph 16.

Disclosure

6p62 1. Disclose the following in the consolidated financialstatements:

(a) a list of significant controlled entities;

(b) The name of any controlled entity in which thecontrolling entity holds an ownership interestand/or voting rights of 50% or less, togetherwith an explanation of how control exists;

(c) the reasons why the ownership of more than50% of the voting or potential voting power ofan investee does not constitute control;

(d) the reporting date of the financial statements ofa controlled entity when such financialstatements are used to prepare consolidatedfinancial statements and are as of a reportingdate or for a period that is different from that ofthe controlling entity, and the reason for using adifferent reporting date or period;

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(e) the nature and extent of any significantrestrictions (for example, resulting fromborrowing arrangements or regulatoryrequirements) on the ability of controlledentities to transfer funds to the controlling entityin the form of cash dividends, or similardistributions, or to repay loans or advances;

2. Separate financial statements

6p63 1. When separate financial statements are prepared fora controlling entity that, in accordance with PBEIPSAS 6 p16, elects not to prepare consolidatedfinancial statements, disclose in the separatefinancial statements:

(a) the fact that the financial statements areseparate financial statements

(b) that the exemption from consolidation has beenused;

(c) the name of the entity whose consolidatedfinancial statements that comply with PBEStandards have been produced for public use;

(d) the jurisdiction in which the entity operates(when it is different from that of the controllingentity);

(e) the address where those consolidated financialstatements are obtainable;

(f) a list of significant controlled entities, jointlycontrolled entities and associates, including:

(i) the name;

(ii) the jurisdiction the entity operates in(when it is different from that of thecontrolling entity)

(iii) the proportion of ownership interest and,where that interest is in the form ofshares, the proportion of voting powerheld (if different to the proportionateownership interest); and

(g) a description of the method used to account forthe entities listed under 1(f) above.

6p64 2. When a controlling entity (other than a controllingentity covered by PBE IPSAS 6 paragraph 63),venturer with an interest in a jointly controlled entityor an investor in an associate prepares separatefinancial statements, disclose in those separatefinancial statements:

(a) the fact that the statements are separatefinancial statements and the reasons why thosestatements are prepared if not required by law,legislation, or other authority;

(b) a list of significant controlled entities, jointlycontrolled entities and associates, including:

(i) the name;

(ii) the jurisdiction the entity operates in(when it is different from that of thecontrolling entity); and

(iii) the proportion of ownership interest andwhere that interest is in the form of

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shares, the proportion of voting powerheld (if different to the proportionateownership interest); and

(c) a description of the method used to account forthe entities listed under 2(b) above;

6p64 3. Identify the financial statements prepared inaccordance with PBE IPSAS 6 paragraph 15,PBE IPSAS 7, and PBE IPSAS 8 to which they relate.

6pRDR64.1 A controlling entity, venturer with an interest in ajointly controlled entity or an investor in an associate,that prepares financial statements applying Tier 2PBE Standards shall disclose a description of themethods used to account for the investments incontrolled entities, jointly controlled entities andassociates.

3. Other disclosures – minority interests

6p54 1. Present minority interests in the consolidatedstatement of financial position within netassets/equity, separately from the controlling entity’snet assets/equity. Minority interests in the surplus ordeficit of the economic entity shall also be separatelydisclosed.

4. Other disclosures impacted by PBE IPSAS 6

Non-current assets held for sale – Presenting revenuefrom continuing and discontinued operations

IFRS5p33(d) 1. Disclose the amount of revenue from continuingoperations and from discontinued operationsattributable to owners of the controlling entity.These disclosures may be presented either in thenotes or in the statement of comprehensive revenueand expense.

Statement of cash flows – changes in ownership interestsin subsidiaries and other businesses

2p49 1. Disclose separately the aggregate cash flows arisingfrom acquisitions and from disposals of controlledentities or other operating units, and classify the cashflows as investing activities.

2p50 2. Disclose, in aggregate, in respect of both acquisitionsand from disposals of controlled entities or otheroperating units during the period, each of thefollowing:

(a) the total purchase or disposal consideration;

(b) the portion of the consideration discharged bymeans of cash and cash equivalents;

(c) the amount of cash and cash equivalents in thecontrolled entity or operating unit acquired ordisposed of; and

(d) the amount of the assets and liabilities, otherthan cash or cash equivalents, recognised bythe controlled entity or operating unit acquiredor disposed of, summarised by each majorcategory.

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11. Inventory

12p47(b) 1. Disclose the carrying amount of inventories in totaland classified by main categories appropriate to theentity.

12p48, 1p94(c) For example: merchandise, production supplies,materials, work in progress and finished goods.

12p47(c) 2. Disclose the carrying amount of inventories carriedat fair value less costs to sell.

12p47(d),(e) 3. Disclose the amount of inventories and the amount ofany write-down of inventories recognised as anexpense in the period.

12p50 4. Some entities adopt a format for surplus or deficitthat results in amounts being disclosed other than thecost of inventories recognised as an expense duringthe period. Under this format, an entity presents ananalysis of expenses using a classification based onthe nature of expenses. In this case, disclose the costsrecognised as an expense for:

(a) raw materials and consumables;

(b) labour costs; and

(c) other costs, together with

(d) the amount of the net change in inventories forthe period.

12p47(f),(g) 5. Disclose the amount of, and circumstances or eventsleading to, the reversal of any write-down that isrecognised as a reduction in the amount ofinventories recognised as expense in the period.

12p47(h) 6. Disclose the carrying amount of inventories pledgedas security for liabilities.

1p70, 71 7. Where inventories combine current and non-currentamounts, disclose the amount of the non-currentportion that is expected to be recovered or settledafter more than 12 months.

12. Receivables

23p106(b) 1. Disclose either on the face of, or in the notes to, thegeneral purpose financial statements the amount ofreceivables recognised in respect of non-exchangerevenue.

1p93 2. Disclose receivables in a manner appropriate to theentity's operation, with the following specificdisclosures:

1p94(b) (a) receivables from user charges;

(b) taxes and other non-exchange revenues;

(c) receivables from related parties (refer to SectionA5.20);

(d) prepayments; and

(e) other amounts.

30p24(e) 3. Disclose impairment losses recognised during theperiod on receivables.

1p70, 71 4. Where receivables from exchange transactionscombine current and non- current amounts, disclosethe amount of the non-current portion that is

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expected to be recovered or settled after more than12 months.

13. Taxes and transfers payable

1p88(j) 1. Present taxes and transfers payable separately on theface of the statement of financial position.

1p93, 94(d) 2. Where appropriate further sub-classify taxes andtransfers payable into the following sub-categories:

(a) Tax refunds payable;

(b) Transfers payable; and

(c) Amounts payable to other members of theeconomic entity.

1p70, 71 3. Disclose the amount of the non-current portion oftaxes and transfers payable that are expected to berecovered or settled after more than 12 months.

IAS12p71, 74 For the offsetting rules of current tax assets andliabilities, refer to PBE IAS 12 paragraph 71; for theoffsetting rules of deferred tax assets and liabilities,refer to PBE IAS 12 paragraph 74.

4. Disclose:

IAS12p81(e) (a) the amount (and expiry date, if any) ofdeductible temporary differences, unused taxlosses, and unused tax credits for which nodeferred tax asset is recognised in the statementof financial position; and

IAS12p81(f) (b) the aggregate amount of temporary differencesassociated with investments in controlledentities, branches and associates and interestsin joint ventures, for which deferred taxliabilities have not been recognised (PBE IAS 12paragraph 39).

DV, IAS12p87 5. Entities are encouraged to disclose the amounts ofthe unrecognised deferred tax liabilities in respect ofthe temporary differences disclosed in 4(b) above.

IAS12p81(g) 6. In respect of each type of temporary difference, and inrespect of each type of unused tax losses and unusedtax credits, disclose:

(a) the amount of the deferred tax assets andliabilities recognised in the statement offinancial position for each period presented; and

(b) the amount of the deferred tax income orexpense recognised in surplus or deficit, if this isnot apparent from the changes in the amountsrecognised in the statement of financial position.

It is a helpful `proof' to display the movementsduring the period in each category of temporarydifferences in the deferred tax account, although it isnot required by PBE IAS 12.

IAS12p82 7. Disclose the amount of a deferred tax asset and thenature of the evidence supporting its recognition,when:

(a) the utilisation of the deferred tax asset isdependent on future taxable profits in excess ofthe profits arising from the reversal of existingtaxable temporary differences; and

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(b) the entity has suffered a loss in either thecurrent or preceding period in the taxjurisdiction to which the deferred tax assetrelates.

IAS12p81(a) 8. Disclose the aggregate current and deferred taxrelating to items charged or credited to netassets/equity (see PBE IAS 12 paragraph 62A).

IAS12p52A, 82A 9. If income taxes are payable at a higher or lower rate ifpart or all of the surplus or deficit or accumulatedcomprehensive revenue and expense is paid out as adividend, disclose:

(a) the nature of the potential income taxconsequences that would result from thepayment of dividends; and

IAS12pRDR82A.1 (b) the amounts of the potential income taxconsequences practically determinable, andwhether there are any potential income taxconsequences not practically determinable.

IAS12p81.2 10. The term “imputation credits” is used in PBE IAS 12paragraphs 81.3 and 81.5 to also mean “frankingcredits”. The disclosures required in the paragraphsbelow shall be made separately in respect of anyNew Zealand imputation credits and any Australianimputation credits.

IAS12p81.3 11. Disclose the amount of imputation credits availablefor use in subsequent reporting periods.

IAS12p81.4 12. For the purposes of determining the amount to bedisclosed in 12 above, an entity may have:

(a) imputation credits that will arise from thepayment of the amount of the provision forincome tax;

(b) imputation debits that will arise from thepayment of dividends or other distributionsrecognised as a liability at the reporting date;and

(c) imputation credits that will arise from thereceipt of dividends or other distributionsrecognised as receivables at the reporting date.

IAS12p81.5 13. Where there are different classes of investors withdifferent entitlements to imputation credits,disclosures shall be made about the nature of thoseentitlements for each class where this is relevant toan understanding of them.

12p98.3 14. 2016 Omnibus Amendments to PBE Standardsamended paragraph 29 and added paragraphs 27A,29A and the example following paragraph 26 in PBEIAS 12. Any resulting change in the opening netassets/equity of the earliest comparative period maybe recognised in opening accumulated comprehensiverevenue and expense (or in another component of netassets/equity, as appropriate), without allocating thechange between opening accumulated comprehensiverevenue and expense and other components of netassets/equity. If this relief is applied, disclose thatfact.

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14. Payables under exchange transactions

1p93,88 1. Disclose payables under exchange transactions in amanner appropriate to the entity's operations, withfurther sub-classifications as are appropriate to theentity’s operations.

1p70, 71 2. Where the above item combines current and non-current amounts, disclose the amount of the non-current portion that is expected to be recovered orsettled after more than 12 months.

15. Liabilities under non-exchange transactions

23p106(c),(cA),(e),(f)

1. Disclose either on the face of, or in the notes to, thegeneral purpose financial statements:

(a) the amount of liabilities recognised in respect oftransferred assets subject to conditions;

(b) the amount of liabilities recognised in respect ofconcessionary loans that are subject toconditions on transferred assets;

(c) the amount of any liabilities forgiven; and

(d) the existence and amounts of any advancereceipts in respect of non-exchange transactions.

DV, 23p111 2. Entities are encouraged to disclose the information in1(a) above disaggregated by class.

16. Provisions

1p94(e) Provisions are disaggregated into provisions for employeebenefits and other items.

19p97 1. For each class of provision, disclose:

(a) the carrying amount at the beginning of theperiod;

(b) additional provisions made in the period andincreases to existing provisions;

(c) amounts used (incurred and charged against theprovision) during the period;

(d) unused amounts reversed during the period;

(e) the increase during the period in the discountedamount arising from the passage of time and theeffect of any change in the discount rate.

(f) the carrying amount at the end of the period.

Comparative information is not required.

1p70, 71 2. Where any provision combines current and non-current amounts, disclose the amount of the non-current portion that is expected to be recovered orsettled after more than 12 months.

19p98 3. For each class of provision, provide:

(a) a brief description of the nature of the obligationand of the expected timing of any resultingoutflows of economic benefits or servicepotential;

19RDR98.1 (b) an indication of the uncertainties about theamount or timing of those outflows. Wherenecessary to provide adequate information,disclose the major assumptions made

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concerning future events, as addressed inPBE IPSAS 19 paragraph 58; and

(c) the amount of any expected reimbursement,stating the amount of any asset that has beenrecognised for that expected reimbursement.

19p109 4. In extremely rare cases, disclosure of some or all ofthe information required by PBE IPSAS 19 onprovisions (questions 1 to 3 above) can be expected toseriously prejudice the position of the entity in adispute with other parties on the subject matter of theprovision. In such cases, the information need not bedisclosed but the following must be disclosed:

(a) the general nature of the dispute;

(b) the fact that the required information has notbeen disclosed; and

(c) the reason why the it has not been disclosed.

17. Post-employment benefits – defined benefitplans

1p70, 71 1. Where the amounts recognised in the balance sheetcombine current and non-current amounts, disclosethe amount of the noncurrent portion (where this canbe determined – refer to PBE IPSAS 25 paragraph138) that is expected to be recovered or settled aftermore than 12 months.

25p140 2. Disclose information that enables users of financialstatements to evaluate the nature of the entity’sdefined benefit plans and the financial effects ofchanges in those plans during the period.

25p141(b) 3. Provide a general description of the type of definedbenefit plan.

25p141(c) 4. Provide a reconciliation of opening and closingbalances of the present value of the defined benefitobligation showing separately, if applicable, theeffects during the period attributable to each of thefollowing:

(a) current service cost;

(b) interest cost;

(c) contributions by plan participants;

(d) actuarial gains and losses;

(e) foreign currency exchange rate changes onplans measured in a currency different from theentity's presentation currency;

(f) benefits paid;

(g) past service cost;

(h) entity combinations;

(i) curtailments; and

(j) settlements.

25pRDR141.1 5. A Tier 2 entity shall disclose a reconciliation ofopening and closing balances of the defined benefitobligation showing separately benefits paid and allother changes. These disclosures may be made intotal, separately for each plan, or in such groupings asare considered to be most useful.

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25pRDR141.2 6. A Tier 2 entity is not required to disclose thereconciliations specified in questions 4 and 5 abovefor prior periods.

25p141(d) 7. Provide an analysis of the defined benefit obligationinto amounts arising from plans that are whollyunfunded and amounts arising from plans that arewholly or partly funded.

25p141(e) 8. Provide a reconciliation of the opening and closingbalances of the fair value of plan assets and of theopening and closing balances of any reimbursementright recognised as an asset in accordance withPBE IPSAS 25 paragraph 121, showing separately, ifapplicable, the effects during the period attributableto each of the following:

(a) expected return on plan assets;

(b) actuarial gains and losses;

(c) foreign currency exchange rate changes onplans measured in a currency different from theentity's presentation currency;

(d) contributions by the employer;

(e) contributions by plan participants;

(f) benefits paid;

(g) entity combinations; and

(h) settlements.

25pRDR141.2 9. A Tier 2 entity is not required to disclose thereconciliation specified in question 8 above for priorperiods.

25p141(f) 10. Provide a reconciliation of the present value of thedefined benefit obligation in question 4 above(PBE IPSAS 25 paragraph 141(c)) and the fair value ofthe plan assets in question 8 above (PBE IPSAS 25paragraph 141(e)) to the assets and liabilitiesrecognised in the statement of financial position,showing at least:

(a) the net actuarial gains or losses not recognisedin the statement of financial position (seePBE IPSAS 25 paragraph 105);

(b) the past service cost not recognised in thestatement of financial position (seePBE IPSAS 25 paragraph 112);

(c) any amount not recognised as an asset, becauseof the limit in PBE IPSAS 25 paragraph 69(b);

(d) the fair value at the reporting date of anyreimbursement right recognised as an asset inaccordance with PBE IPSAS 25 paragraph 121(with a brief description of the link between thereimbursement right and the related obligation);and

(e) the other amounts recognised in the statementof financial position.

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25p141(g)

25RDRp141.3

11. Provide the total expense recognised in surplus ordeficit for each of the following, and the line item(s)in which they are included:


(b) interest cost;

(c) expected return on plan assets;

(d) expected return on any reimbursement rightrecognised as an asset in accordance with PBEIPSAS 25 p121;

(e) actuarial gains and losses

(f) past service cost;

(g) the effect of any curtailment or settlement; and

(h) the effect of the limit in PBE IPSAS 25 p69(b).

25p141(h) 12. Disclose the total amount recognised in othercomprehensive revenue and expense for each of thefollowing:

(a) actuarial gains and losses; and

(b) the effect of the limit in PBE IPSAS 25 p69(b).

25p141(i) 13. The cumulative amount of actuarial gains and lossesrecognised in other comprehensive revenue andexpense (for entities that recognise actuarial gainsand losses in other comprehensive revenue andexpense in accordance with PBE IPSAS 25 p107).

25p141(j) 14. Disclose for each major category of plan assets, whichshall include, but is not limited to, equityinstruments, debt instruments, property, and allother assets, the percentage or amount that eachmajor category constitutes of the fair value of the totalplan assets.

25p141(k) 15. Disclose the amounts included in the fair value ofplan assets for:

(a) each category of the entity's own financialinstruments; and

(b) any property occupied by, or other assets usedby, the entity.

19p141(l) 16. Disclose a narrative description of the basis used todetermine the overall expected rate of return onassets, including the effect of the major categories ofplan assets.

25p141(m)

25RDRp141.4

17. Disclose the actual return on plan assets, as well asthe actual return on any reimbursement rightrecognised as an asset in accordance with PBEIPSAS 25 p121.

25p141(n) 18. Disclose the principal actuarial assumptions used asat the reporting date, including, when applicable:

(a) the discount rates;

(b) the basis on which the discount rate has beendetermined;

(c) the expected rates of return on any plan assetsfor the periods presented in the financialstatements;

(d) the expected rates of return for the periodspresented in the financial statements on any

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reimbursement right recognised as an asset inaccordance with PBE IPSAS 25 p121;

(e) the expected rates of salary increases (and ofchanges in an index or other variable specified inthe formal or constructive terms of a plan as thebasis for future benefit increases);

(f) medical cost trend rates; and

(g) any other material actuarial assumptions used(such as details of mortality assumptions).

Disclose each actuarial assumption in absolute terms(for example, as an absolute percentage), not just as amargin between different percentages or othervariables.

25p141(o) 19. Disclose the effect of an increase of one percentagepoint and the effect of a decrease of one percentagepoint in the assumed medical cost trend rates on:

(a) the aggregate of the current service cost andinterest cost components of net periodic post-employment medical costs; and

(b) the accumulated post-employment benefitobligation for medical costs.

All other assumptions should be held constant for thepurposes of this disclosure. For plans operating in ahigh inflation environment, the disclosure shall bethe effect of a percentage increase or decrease in theassumed medical cost trend rate of a significancesimilar to one percentage point in a low inflationenvironment.

25p141(p) 20. Disclose the amounts for the current annual periodand previous four annual periods of:

(a) the present value of the defined benefitobligation, the fair value of the plan assets andthe surplus or deficit in the plan; and

(b) the experience adjustments arising on:

(i) the plan liabilities expressed either as:

– an amount; or

– a percentage of the plan liabilities atthe balance sheet date; and

(ii) the plan assets expressed either as:

– an amount; or

– a percentage of the plan assets at thebalance sheet date.

25p141(q) 21. Disclose the employer's best estimate, as soon as itcan reasonably be determined, of contributionsexpected to be paid to the plan during the annualperiod beginning after the reporting date.

25p143 22. When an entity has more than one defined benefitplan, disclosures may be made in total, separately foreach plan, or in such groupings as are considered tobe the most useful. It may be useful to distinguishgroupings by criteria such as the following:

(a) The geographical location of the plans; or

(b) Whether plans are subject to materially differentrisks, for example, by distinguishing flat salary

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pension plans from final salary pension plans,and from post-employment medical plans.

When an entity provides disclosures in total for agrouping of plans, such disclosures are provided inthe form of weighted averages or of relatively narrowranges.

Multi-employer plans

25p32(b) 1. For multi-employer plans that are treated as definedbenefit plans, disclose the information required byquestions 3 to 21 above.

25p33(b),(c) 2. For multi-employer plans that are treated as a definedcontribution plan, disclose;

(a) the fact that the plan is a defined benefit plan;

(b) the reason why sufficient information is notavailable to enable the entity to account for theplan as a defined benefit plan; and

(c) to the extent that a surplus or deficit in the planmay affect the amount of future contribution:

(i) any available information about thatsurplus or deficit;

(ii) the basis used to determine that surplus ordeficit; and

(iii) the implications, if any, for the entity.

Defined benefit plans where the participatingentities are under common control

25p42(a)-(d) 1. For a defined benefit plan that shares risks betweenentities under common control, this is a related partytransaction. An entity shall therefore, in its separateor individual financial statements disclose:

(a) the contractual agreement, binding agreementor stated policy for charging the defined benefitcost or the fact that there is no such policy;

(b) the policy for determining the contribution tobe paid by the entity;

(c) if the entity accounts for an allocation of the netdefined benefit cost in accordance withPBE IPSAS 25 paragraph 40, all theinformation about the plan as a whole inaccordance with PBE IPSAS 25 paragraph 140-142 (questions 2-20 above); and

(d) if the entity accounts for the contributionpayable for the period in accordance withPBE IPSAS 25 paragraph 40, informationabout the plan as a whole required inaccordance with PBE IPSAS 25 paragraph141(b)-(e), (j), (n), (o), (q), and 142 (questions 3-8, 14, 17, 18 and 20 above).

25p41 2. There are cases where a controlling entity and one ormore controlled entities participate in a definedbenefit plan. The controlled entity makes thefollowing disclosures:

(a) if the controlled entity accounts on a definedcontribution basis in accordance with paragraph42 of PBE IPSAS 25 it discloses that it accounts

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on a defined contribution basis in its separatefinancial statements;

(b) if the controlled entity accounts on a definedbenefit basis in accordance with paragraph 42 ofPBE IPSAS 25 it also:

(i) provides details of the controlling entity,and

(ii) makes the disclosures required in question1 above.

18. Lease liabilities

Leases are financial instruments and therefore all thedisclosure requirements of PBE IPSAS 30 apply also toleases – refer to Section A9.

Note: This section of the checklist applies to lessees. Forlessors, refer to Section C5.

1. Lessees – finance leases

13p40 1. Disclose:

13pRDR40.1 (a) the net carrying amount for each class of assetsat the reporting date;

(b) a reconciliation between the total of futureminimum lease payments at the reporting date,and their present value;

(c) the total of the future minimum lease paymentsat the reporting date, and their present value,for each of the following periods:

(i) no later than one year;

(ii) later than one year but no later than fiveyears; and

(iii) later than five years;

(d) the amount of contingent rents recognised asan expense in for the period;

(e) the total of future minimum sublease paymentsexpected to be received under non-cancellablesubleases at the reporting date; and

(f) a general description of the lessee's materialleasing arrangements. This would include, but isnot limited to:

(i) the basis on which contingent rent payableis determined;

(ii) the existence and terms of renewal orpurchase options and escalation clauses;and

(iii) restrictions imposed by leasearrangements, such as those concerningreturns of surplus, return of capitalcontributions, dividends or similardistributions, additional debt and furtherleasing.

13p41 In addition, the disclosure requirements of PBEIPSAS 16, PBE IPSAS 17, PBE IPSAS 21, PBE IPSAS26, and PBE IPSAS 31 apply to the amounts for leasedassets under finance leases that are accounted for bythe lessee as acquisitions of assets.

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2. Lessees – operating leases

13p44 1. Disclose:

(a) the total of future minimum lease paymentsunder non-cancellable operating leases for eachof the following periods:

(i) no later than one year;

(ii) later than one year and no later than fiveyears; and

(iii) later than five years.

(b) the total of future minimum sublease paymentsto be received under non-cancellable subleasesat the reporting date;

13pRDR44.1 (c) lease and sublease payments recognised as anexpense in the period, with separate amountsfor minimum lease payments, contingent rentsand sublease payments; and

(d) a general description of the lessee's significantleasing arrangements. This would include, but isnot limited to:

(i) the basis on which contingent rentpayments are determined;

(ii) the existence and terms of renewal orpurchase options and escalation clauses;and

(iii) restrictions imposed by leasearrangements, such as those concerningreturn of surplus, return of capitalcontributions, dividends or similardistributions, additional debt and furtherleasing.

13p77 2. The disclosure requirements about leases set outabove also apply to sale and leaseback transactions.Any unique or unusual provisions in the agreementsor terms of the sale and leaseback transactions shouldbe separately disclosed.

13pC15(b) 3. If a purchaser concludes that it is impractical toseparate the lease payments in an operating leasereliably from other payments, it should treat allpayments under the agreement as lease payments forthe purpose of complying with the disclosures ofPBE IPSAS 13, but:

(a) disclose those payments separately fromminimum lease payments that do not includepayments for non-lease elements; and

(b) state that the disclosed payments also includepayments for non-lease elements in thearrangement.

3. Arrangements that do not involve a lease insubstance

13pB10, B11 1. For arrangements that do not involve a lease insubstance, disclose the following, individually foreach arrangement or in aggregate for each class ofarrangement, in each period in which anarrangement exists:

(a) a description of the arrangement including:

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(i) the underlying asset and restrictions on itsuse;

(ii) the life and other significant terms of thearrangement; and

(iii) the transactions that are linked together,including any options; and

(b) the accounting treatment applied to any feereceived, the amount recognised in income inthe period, and the line item of the statement ofcomprehensive revenue and expense in which itis included.

19. Borrowings and other liabilities

Borrowings are financial instruments; therefore, all thePBE IPSAS 30 disclosure requirements also apply toborrowings.

1p70, 71 1. Disclose the borrowings classified between currentand non- current portions, in accordance with PBEIPSAS 1 p76-87.

1p87 2. In respect of loans classified as current liabilities, ifthe following events occur between the date and thedate the financial statements are authorised for issue,those events qualify for disclosure as non-adjustingevents in accordance with PBE IPSAS 14:

(a) refinancing on a long-term basis;

(b) rectification of a breach of a long-term loanagreement; and

(c) the receipt from the lender of a period of graceto rectify a breach of a long-term loan agreementending at least twelve months after the reportingdate.

28p33 3. The issuer of a non-derivative financial instrumentshould evaluate the terms of the financial instrumentto determine whether it contains both a liability andan equity component. Classify such componentsseparately as financial liabilities, financial assets orequity instruments, in accordance with PBE IPSAS 28paragraph 13.

20. Related-party transactions


20p25 1. Disclose related-party relationships where controlexists, irrespective of whether there have beentransactions between the related parties.

20p26 2. Disclose the names of any controlled entities, thename of the immediate controlling entity, and thename of the ultimate controlling entity, if any.

20p32 3. Disclose items of similar nature in aggregate exceptwhen separate disclosure is necessary to providerelevant and reliable faithfully representativeinformation for decision-making and accountabilitypurposes.

2. Disclosure of related party transactions

Public sector reporting entities:

20p27 1. Transactions that would occur within a normalsupplier or client/recipient relationship on terms andconditions no more or less favourable than those

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which it is reasonable to expect the entity would haveadopted if dealing with that individual or entity atarm’s length in the same circumstances are notrequired to be disclosed.

20p27 2. For all other transactions between related parties,disclose:

(a) The nature of the related party relationships:

(b) The types or transactions that have occurred;and

(c) The elements of the transactions necessary toclarify the significance of these transactions toits operations and sufficient to enable thefinancial statements to provide relevant andreliable faithfully representative information fordecision making and accountability purposes.

Not-for-profit reporting entities:

20p27.1 1. Disclose for transactions between related parties(including transactions that would occur within anormal supplier or client/recipient relationship onterms and conditions no more or less favourable thanthose which it is reasonable to expect the entity wouldhave adopted if dealing with that individual or entityat arm’s length in the same circumstances):

(a) the nature of the related party relationships;

(b) the types or transactions that have occurred;and

(c) the elements of the transactions necessary toclarify the significance of these transactions toits operations and sufficient to enable thefinancial statements to provide relevant andreliable faithfully representative information fordecision making and accountability purposes.

Public sector and not-for-profit reporting entities:

20p28 1. Examples of transactions that are disclosed if they arewith a related party include:

(a) rendering or receiving of services;

(b) purchases or transfers/sales of goods (finishedor unfinished);

(c) purchases or transfers/ sales of property andother assets;

(d) agency arrangements;

(e) leasing arrangements;

(f) transfer of research and development;

(g) licence agreements;

(h) finance arrangements (including loans, capitalcontributions, grants whether in cash or in kindand other financial support, including cost-sharing arrangements), and

(i) guarantees and collaterals.

28p39 2. If the entity reacquires its own shares from relatedparties, then provide disclosure in accordance withPBE IPSAS 20.

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20p30 3. Information that would need to be disclosed to meetthe objectives of general purpose financial reportingwould normally include:

(a) a description of the nature of the related partyrelationship involved in these transactions, forexample, whether the relationship was one of acontrolling entity, a controlled entity, an entityunder common control, or key managementpersonnel;

(b) a description of the related party transactionswithin each broad class of transaction and anindication of the volume of the classes, either asa specific monetary amount or as a proportion ofthat class of transactions and/or balances;

(c) a summary of the broad terms and conditions oftransactions with related parties, includingdisclosure of how those terms and conditionsdiffer from those normally associated withsimilar transactions with unrelated parties; and

(d) amounts or appropriate portions of outstandingitems.

3. Transactions with key management personnel

Public sector entities:

20p35 1. The disclosures specified under paragraphs 2-4 beloware required whether or not they have occurred on anarm’s length basis consistent with the operatingconditions that apply in respect of the entity.

20p34(a) 2. Disclose the aggregate remuneration of keymanagement personnel and the number ofindividuals, determined on a full-time equivalentbasis, receiving remuneration within this category,showing separately major classes of key managementpersonnel and including a description of each class.

20p36 3. Make separate disclosures about the major classes ofkey management personnel that the entity has. Forexample, where an entity has a governing body that isseparate from its senior management group,disclosures about remuneration of the two groups willbe made separately. Where an individual is a memberof both the governing body and the seniormanagement group, that individual will be includedin only one of those groups for the purposes of PBEIPSAS 20. The categories of key managementpersonnel identified in the definition of keymanagement personnel provide a guide to identifyingclasses of key management personnel.

20p34(b) 4. Disclose the total amount of all other remunerationand compensation, other than remuneration orcompensation that would occur within a normalsupplier or client/recipient relationship on terms andconditions no more or less favourable than thosewhich it is reasonable to expect the entity would haveadopted if dealing with that individual at arm’s lengthin the same circumstances, showing separately, theaggregate amounts provided to:

(a) key management personnel; and

(b) close members of the family of key managementpersonnel.

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20p34(c) 5. Disclose in respect of loans that are not widelyavailable to persons who are not key managementpersonnel and loans whose availability is not widelyknown by members of the public, for each individualmember of key management personnel and each closemember of the family of key management personnel:

(a) the amount of loans advanced during the periodand terms and conditions thereof;

(b) the amount of loans repaid during the period;

(c) the amount of the closing balance of all loansand receivables; and

(d) where the individual is not a director or memberof the governing body or senior managementgroup of the entity, the relationship of theindividual to such body or group.

20p34A 6. If key management personnel services are obtainedfrom another entity (the ‘management entity’),disclose the amounts paid or payable to themanagement entity for the provision of keymanagement personnel services. The public sectorentity is not required to apply the requirements inquestions 2 and 4 (ab0ve) to the compensation paidor payable by the management entity to themanagement entity’s employees or directors.

Not-for-profit entities:

20p35.1 1. The disclosures specified under paragraphs 2-4 beloware required whether or not they have occurred on anarm’s length basis consistent with the operatingconditions that apply in respect of the entity.

20p34.1(a) 2. Disclose the aggregate remuneration of keymanagement personnel and the number ofindividuals, determined on a full-time equivalentbasis, receiving remuneration within this category,showing separately major classes of key managementpersonnel and including a description of each class.

20p34.1(b) 3. Disclose the total amount of all other remunerationand compensation (including other remuneration andcompensation that would occur within a normalsupplier or client/recipient relationship on terms andconditions no more or less favourable than thosewhich it is reasonable to expect the entity would haveadopted if dealing with that individual at arm’s lengthin the same circumstances) provided to keymanagement personnel, and close members of thefamily of key management personnel, during thereporting period, showing separately the aggregateamounts provided to:

(a) key management personnel; and

(b) close members of the family of key managementpersonnel.

20p34.1(c) 4. Disclose in respect of loans, for each individualmember of key management personnel and each closemember of the family of key management personnel:

(a) the amount of loans advanced during the periodand terms and conditions thereof;

(b) the amount of loans repaid during the period;

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(c) the amount of the closing balance of all loansand receivables; and

(d) where the individual is not a director or memberof the governing body or senior managementgroup of the entity, the relationship of theindividual to such body or group.

20p34.2 5. If key management personnel services are obtainedfrom another entity (the ‘management entity’), thenot-for-profit entity shall disclose the amounts paidor payable to the management entity for the provisionof key management personnel services. The not-for-profit entity is not required to apply the requirementsin questions 2 and 3 (above) to the compensation paidor payable by the management entity to themanagement entity’s employees or directors.

Public sector and not-for-profit reporting entities:

25p58, 145 1. Disclose information about:

(a) contributions to defined contribution plans forkey management personnel;

(b) Related party transactions with post-employmentbenefit plans;

(c) Post-employment benefits for key managementpersonnel;

25p153 (d) Other long term benefits for key managementpersonnel; and

25p165 (e) Termination benefits for key managementpersonnel.

20p38 2. Disclose in the notes the basis of measurement of anynon-monetary remuneration, where this is able to bereliably measured and has been included in theaggregate amount of remuneration of keymanagement personnel disclosed for the period.

21. Commitments

Disclose:

17p89(c) 1. For each class of property, plant and equipment theamount of contractual commitments for theacquisition of property, plant and equipment.

31p121(e) 2. The amount of contractual commitments for theacquisition of intangible assets.

16p86(h) 3. Contractual obligations:

(a) to purchase, construct or develop investmentproperty; and

(b) for repairs, maintenance or enhancements ofinvestment property.

Refer also to the commitments in respect of leaseagreements in Section A5.18 and commitments inrespect of joint ventures in Section A5.9.

22. Contingencies

19p100 1. Unless the possibility of any outflow in settlement isremote, for each class of contingent liability at thereporting date disclose:

(a) a brief description of the nature of thecontingent liability;

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(b) where practicable, disclose also:

(i) an estimate of its financial effect, measuredunder PBE IPSAS 19 paragraph 44-62;

(ii) an indication of the uncertainties about theamount or timing of any outflow; and

(iii) the possibility of any reimbursement; and

19p108 (c) where any of this information is not disclosedbecause it is not practicable to do so, that fact.

19p102 2. Where a provision and a contingent liability arisefrom the same set of circumstances, show the linkbetween the provision and the contingent liability.

19p105 3. Disclose for contingent assets, where an inflow ofeconomic benefits or service potential is probable:

(a) a brief description of the nature of thecontingent asset at the reporting date;

(b) where practicable, an estimate of their financialeffect, measured under PBE IPSAS 19 paragraph44-62; and

19p108 (c) where this information is not disclosed becauseit is not practicable to do so, that fact.

23p36 4. An item that possesses the essential characteristics ofan asset, but fails to satisfy the criteria forrecognition, may warrant disclosure in the notes as acontingent asset.

19p109 5. In extremely rare cases, disclosure of some or all ofthe information required by PBE IPSAS 19paragraphs 97–107 on contingencies (items 1 to 3above) can be expected to seriously prejudice theposition of the entity in a dispute with other partieson the subject matter of the contingent liability orcontingent asset. In such cases, the information neednot be disclosed but the following must be disclosed:

(a) the general nature of the dispute;

(b) the fact that the required information has notbeen disclosed; and

(c) the reason why the it has not been disclosed.

6. Disclose contingent liabilities arising from:

25p146 (a) post-employment benefit obligations; and

25p163 (b) termination benefits (for example, due to theuncertainty over the number of employees whowill accept an offer of termination benefits).

Refer also to the contingencies in respect of leaseagreements in Section A5.18 and contingencies inrespect of joint ventures in Section A5.9.

23. Events after the reporting period

14p16, 1p149(a) 1. Disclose in the notes the amount of dividends orsimilar distributions proposed or declared after thereporting date but before the financial statementswere authorised for and the related amount pershare.

14p30 2. Where events occurring after the reporting date donot affect the condition of assets or liabilities at thereporting date (i.e., non-adjusting) but are of suchimportance that non-disclosure could influence the

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economic decisions of users taken on the basis of thefinancial statements, disclose for each materialcategory of non-adjusting event:

(a) the nature of the event; and

(b) an estimate of the financial effect, or a statementthat such an estimate cannot be made.

Examples of non-adjusting events that wouldgenerally require disclosure are provided inPBE IPSAS 14 paragraph 31.

IAS12p81(i) 3. Disclose the amount of income tax consequences ofdividends that were proposed or declared after thebalance sheet date but before the financialstatements were authorised for issue.

14p28 4. If an entity receives information after the reportingdate about conditions that existed at the balance sheetdate, update the disclosures that relate to thoseconditions in the light of the new information.


23p106(d) 1. Disclose, either on the face or, or in the notes to, thegeneral purpose financial statements, the amount ofassets recognised in a non-exchange transaction thatare subject to restrictions and the nature of thoserestrictions.

A6 Statement of cash flows Y-NA-NM REF

1. General presentation

Refer to the Appendix to PBE IPSAS 2 for illustrativeexamples of a cash flow statement under both the directand indirect methods, as well as example notes.

2p18 1. Classify cash flows into three activities: operating,investing and financing activities.

2p27 2. Disclose cash flows from operating activities usingeither:

(a) the direct method, disclosing major classes ofgross cash receipts or payments; or

(b) the indirect method, adjusting surplus or deficitfor the effects of:

(i) transactions of a non-cash nature;

(ii) deferrals or accruals of past or futureoperating cash receipts or payments; and

(iii) items of revenue or expense associatedwith investing or financing cash flows.

2p29 3. When an entity uses the direct method to present itsstatement of cash flows, the financial statementsshall provide a reconciliation of the net cash flowfrom operating activities to surplus/(deficit) fromordinary activities as part of the cash flow statementor in the notes.

2p24 4. Where an entity is unable to separately identifyappropriations or budgetary authorisations intocurrent activities, capital works, and contributedcapital, the appropriation or budget authorisation

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should be classified as cash flows from operations,and this fact disclosed.

2p31 5. For cash flows from investing and financing activities,disclose separately major classes of gross cashreceipts and gross cash payments (except as noted inquestions 6 and 7 below). For example, proceeds fromnew borrowings have to be displayed separately fromrepayments of borrowings.

2p32 6. The following cash flows arising from the operating,investing or financing activities may be reported on anet basis:

(a) cash receipts collected and payments made onbehalf of customers, taxpayers or beneficiarieswhen the cash flows reflect the activities of theother party rather than those of the entity; and

(b) cash receipts and payments for items in whichthe turnover is quick, the amounts are large andthe maturities are short.

2p35 7. The following cash flows arising from the activities ofa financial institution may be reported on a net basis:

(a) cash receipts and payments for the acceptanceand repayment of deposits with a fixed maturitydate;

(b) The placement of deposits with, and withdrawalof deposits from, other financial institutions;and

(c) Cash advances and loans made to customers andthe repayment of those advances and loans.

2p39 8. Disclose separately from cash flows from operating,investing and financing activities, the effect ofexchange rate changes on cash and cash equivalentsheld or due in foreign currency. This amount includesthe differences, if any, had those cash flows beenreported at end of period exchange rates.

2p54 9. For non-cash transactions, exclude from the cash flowstatement those investing and financing transactionsthat do not require the use of cash and cashequivalents. Disclose non-cash transactions elsewherein the financial statements in a way that provides allthe relevant information about these investing andfinancing activities.

2p55 Examples of non-cash transactions are the

(a) acquisition of assets through the exchange ofassets, the assumption of directly relatedliabilities or by means of a finance lease; and

(b) conversion of debt to equity.

2. Individual items

1. For cash flows arising from taxes on netcomprehensive revenue and expense:

2p44 (a) disclose taxes paid;

2p44 (b) classify taxes on net comprehensive revenue andexpense as cash flows from operating activitiesunless specifically identified with financing andinvesting activities; and

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2p46 (c) disclose the total amount of taxes paid when taxcash flows are allocated over more than oneclass of activity.

2p40 2. For cash flows from interest and dividends or similardistributions, disclose separately:

(a) interest received;

(b) interest paid;

(c) dividends or similar distributions received; and

(d) dividends or similar distributions paid.

Classify each of the above items in a consistentmanner from period to period as either operating,investing or financing activities.

2p42 Interest paid and received and dividends or similardistributions received are normally classified asoperating for a financial institution. For other entitiesthere is no consensus on classification - they may beclassified as operating cash flows as they enter intothe determination of surplus or deficit or as financingand investing cash flows respectively as they are costsof obtaining financial resources or returns oninvestments.

2p43 Dividends or similar distributions paid are normallyclassified as either financing or operating activities.

2p56 3. For cash and cash equivalents, disclose:

(a) the components; and

(b) a reconciliation of amounts in its cash flowstatement with cash and cash equivalents in thestatement of financial position.

2p59 4. Disclose the amount of significant cash and cashequivalent balances held by the entity that are notavailable for use by the economic entity, and providea commentary in the notes.

DV, 2p61 5. Voluntary disclosures.Provide additional information relevant tounderstanding the financial position and liquidity ofan entity, and a description in the notes, including:

(a) the amount of undrawn borrowing facilitiesavailable for future operating activities and tosettle capital commitments, indicating anyrestrictions as to the use of these facilities;

(b) the aggregate amounts of the cash flows fromeach of operating, investing and financingactivities related to interests in joint venturesreported using proportionate consolidation; and

(c) the amount and nature of restricted cashbalances.

3. Changes in ownership interests in controlledentities

IFRS5p33(c) 1. For discontinued operations, disclose the amounts ofnet cash flows from:

(a) operating activities;

(b) investing activities; and

(c) financing activities.

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IFRS5p33(c) 2. The disclosures in question 1 above may be presentedeither in the notes to, or on the face of, the financialstatements.

IFRS5p33(c) 3. The disclosures in question 1 above are not requiredfor disposal groups that are newly acquiredsubsidiaries that meet the criteria to be classified asheld for sale on acquisition.

IFRS5p34 4. Re-represent the disclosures related to discontinuedoperations in the statement of cash flows for priorperiods presented so that the disclosures relate to alloperations that have been discontinued by the end ofthe reporting period for the latest period presented.

A7 Statement of Service Performance Y-NA-NM REF

1p150.1 1. Where a statement of service performance ispresented it shall describe and disclose the outputs ofan entity. Similar individual outputs may beaggregated.

1p150.2 2. The statement above is referred to as a “statement ofservice performance”. The statement might, however,be differently named in legislation. The aim of suchstatements, by whatever name called, remains theproviding of:

(a) narrative and statistics on the entity’s performancein supplying goods and services; and

(b) information on the effects on the community ofthe entity’s existence and operations.

1p150.3 3. An entity not required by legislation to prepare astatement of service performance is stronglyencouraged to include a statement of serviceperformance in its financial statements where:

(a) the entity receives significant revenue from non-exchange transactions intended to benefit thirdparties; or

(b) the entity has non-financial objectives of suchimportance that non-financial performancereporting is significant to users of the financialstatements.

1p150.4 4. The elements of service performance are inputs,outputs and outcomes. Where relevant and appropriatefor users of the entity’s financial report, each outputdisclosed in the statement of service performance is tobe described in terms of the output’s:

(a) quantity;

(b) quality;

(c) time; and

(d) location.

The cost of each output is to be described anddisclosed.

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1p150.5 5. The information used to describe service performanceis to be selected so as to provide a complete descriptionof delivery of each output (or aggregation of outputs)reported, but without undue emphasis on easilymeasured dimensions, and without resulting in anoverload of only partially relevant statistics.

1p150.6 6. For each output disclosed in a statement of serviceperformance, where practical and appropriate, theoutcome(s) to which the output is intended tocontribute is to be disclosed.

1p150.7 7. The statement of service performance shall presentboth projected service performance and actual serviceperformance.

1p150.8 8. Projected service performance is described bypresenting projected outputs at the beginning of theperiod which an entity aimed to produce by the end ofthe period. These projected outputs will often bederived from the annual or corporate plan.

1p150.9 9. To report the degree of success in achieving objectives,it is necessary to present both projected and actualresults together with full disclosures of any changes inobjectives during the period.

1p150.10 10. Actual and projected service performance are to bereported consistently with one another. Theinformation is to be sufficiently specific for performanceto be assessed.

A8 Business combinations Y-NA-NM REF


IFRS3p59 1. The acquirer discloses information that enables usersof its financial statements to evaluate the nature andfinancial effect of a business combination that occurseither:

(a) during the current reporting period; or

(b) after the end of the reporting period but beforethe financial statements are authorised forissue.

IFRS3p60 2. To meet the objective in PBE IFRS 3 paragraph 59,the acquirer discloses the information specified inparagraphs B64-B66.

IFRS3pRDR63.1 A Tier 2 entity is required to comply with thedisclosures in paragraphs B64–B67 that are notmarked as RDR concessions.

3. For each business combination that took effect duringthe reporting period, disclose:

IFRS3pB64(a) (a) the name and a description of the acquiree

IFRS3pB64(b) (b) the acquisition date;

IFRS3pB64(c) (c) the percentage of voting equity interestsacquired;

IFRS3pB64(d) (d) the primary reasons for the businesscombination and a description of how theacquirer obtained control of the acquiree;

IFRS3pB64(e) (e) a qualitative description of the factors thatmake up the goodwill recognised, such as

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expected synergies from combining operationsof the acquiree and the acquirer, and intangibleassets that do not qualify for separaterecognition or other factors;

IFRS3pB64(f) (f) the acquisition-date fair value of the totalconsideration transferred and the acquisition-date fair value of each major class ofconsideration, such as:

(i) cash;

(ii) other tangible or intangible assets,including a business or controlled entity ofthe acquirer;

(iii) liabilities incurred – for example, a liabilityfor contingent consideration; and

(iv) equity interests of the acquirer, includingthe number of instruments or interestsissued or issuable and the method ofdetermining the fair value of thoseinstruments or interests.

IFRS3pB64(g) (g) for contingent consideration arrangements andindemnification assets:

(i) the amount recognised as of the acquisitiondate;

(ii) a description of the arrangement and thebasis for determining the amount of thepayment; and

(iii) an estimate of the range of outcomes(undiscounted) or, if a range cannot beestimated, that fact and the reasons why arange cannot be estimated. If themaximum amount of the payment isunlimited, the acquirer discloses that fact;

IFRS3pB64(h) (h) for acquired receivables:

(i) the fair value of the receivables;

(ii) the gross contractual amounts receivable;and

(iii) the best estimate at the acquisition date ofthe contractual cash flows not expected tobe collected.

The disclosures should be provided by majorclass of receivable, such as loans, direct financeleases and any other class of receivables.

IFRS3pB64(i) (i) the amounts recognised as of the acquisitiondate for each major class of assets acquired andliabilities assumed;

IFRS3pB64(j),RDRB64.1

(j) for each contingent liability recognised inaccordance with PBE IFRS 3 paragraph 23, theinformation required in paragraph 98 ofPBE IPSAS 19. If a contingent liability is notrecognised because its fair value cannot bemeasured reliably, the acquirer discloses:

(i) the information required by paragraph100 of PBE IPSAS 19; and

(ii) the reasons why the liability cannot bemeasured reliably.

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IFRS3pB64(k) (k) the total amount of goodwill that is expected tobe deductible for tax purposes;

IFRS3pB64(l) (l) for transactions that are recognised separatelyfrom the acquisition of assets and assumptionof liabilities in the business combination inaccordance with PBE IFRS 3 paragraph 51:

(i) a description of each transaction;

(ii) how the acquirer accounted for eachtransaction;

(iii) the amounts recognised for eachtransaction;

(iv) the line item in the financial statements inwhich each amount is recognised; and

(v) if the transaction is the effective settlementof a pre-existing relationship, the methodused to determine the settlement amount;

IFRS3pB64(m) (m) the disclosure of separately recognisedtransactions required by question 3(l) aboveshall include the amount of acquisition relatedcosts and, separately, the amount of those costsrecognised as an expense. Disclose also:

(i) the line item or items in the statement ofcomprehensive revenue and expense inwhich those expenses are recognised; and

(ii) the amount of any issue costs notrecognised as an expense and how theywere recognised;

IFRS3pB64(n) (n) in a bargain purchase (see PBE IFRS 3paragraphs 34-36):

(i) the amount of any gain recognised inaccordance with PBE IFRS 3 paragraph 34;

(ii) the line item in the statement ofcomprehensive revenue and expense inwhich the gain is recognised; and

(iii) a description of the reasons why thetransaction resulted in a gain;

IFRS3pB64(o) (o) for each business combination in which theacquirer holds less than 100% of the equityinterests in the acquiree at the acquisition date:

(i) the amount of the non-controlling interestin the acquiree recognised at theacquisition date and the measurementbasis for that amount; and

(ii) for each non-controlling interest in anacquiree measured at fair value, thevaluation techniques and key model inputsused for determining that value;

IFRS3pB64(p) (p) in a business combination achieved in stages:

(i) the acquisition-date fair value of the equityinterest in the acquiree held by theacquirer immediately before theacquisition date;

(ii) the amount of any gain or loss recognisedas a result of remeasuring to fair value theequity interest in the acquiree held by the

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acquirer before the business combination(see PBE IFRS 3 paragraph 42); and

(iii) the line item in the statement ofcomprehensive revenue and expense inwhich that gain or loss is recognised;

IFRS3pB64(q) (q) the following information:

(i) the amounts of revenue and surplus ordeficit of the acquiree since the acquisitiondate included in the consolidatedstatement of comprehensive revenue andexpense for the reporting period; and

(ii) the revenue and surplus or deficit of thecombined entity for the current reportingperiod as though the acquisition date forall business combinations that occurredduring the year had been as of thebeginning of the annual reporting period.

IFRS3pB64(q) (r) If disclosure of any of the information requiredby 3(q) above is impracticable, the acquirer:

(i) discloses that fact; and

(ii) explains why the disclosure isimpracticable. PBE IFRS 3 uses the term`impracticable' with the same meaning asin PBE IPSAS 3.

IFRS3pB65 4. For individually immaterial business combinationsoccurring during the reporting period that arematerial collectively, the acquirer discloses inaggregate the information required by questions3(e)-(r) above.

IFRS3pRDR65.1 5. For individually immaterial business combinationsoccurring during the reporting period that arematerial collectively, a Tier 2 acquirer shall disclose inaggregate the information required by questions 3(f),(g), (i), (n)(i), (o)(i) and (p) and the first sentence ofquestion (j) (above).

IFRS3pB66 6. If the acquisition date of a business combination isafter the end of the reporting period but before thefinancial statements are authorised for issue, theacquirer discloses the information required byquestion 3 above unless the initial accounting for thebusiness combination is incomplete at the time thefinancial statements are authorised for issue. In thatsituation, the acquirer describes:

(a) which disclosures could not be made; and

(b) the reasons why they cannot be made.

2. Adjustments

IFRS3p61 1. The acquirer discloses information that enables usersof its financial statements to evaluate the financialeffects of adjustments recognised in the currentreporting period that relate to business combinationsthat occurred in the period or previous reportingperiods.

IFRS3pB67 2. To meet the objective in question 1 above, theacquirer discloses the following information for eachmaterial business combination or in the aggregate forindividually immaterial business combinations thatare material collectively:

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IFRS3pB67(a) (a) if the initial accounting for a businesscombination is incomplete (see PBE IFRS 3paragraph 45) for particular assets, liabilities,non-controlling interests or items ofconsideration and the amounts recognised inthe financial statements for the businesscombination have been determined onlyprovisionally:

(i) the reasons why the initial accounting forthe business combination is incomplete;

(ii) the assets, liabilities, equity interests oritems of consideration for which the initialaccounting is incomplete; and

(iii) the nature and amount of anymeasurement period adjustmentsrecognised during the reporting period inaccordance with PBE IFRS 3 paragraph49.

IFRS3pB67(b) (b) For each reporting period after the acquisitiondate until the entity collects, sells or otherwiseloses the right to a contingent considerationasset, or until the entity settles a contingentconsideration liability or the liability iscancelled or expires, disclose:

(i) any changes in the recognised amounts,including any differences arising uponsettlement;

(ii) any changes in the range of outcomes(undiscounted) and the reasons for thosechanges; and

(iii) the valuation techniques and key modelinputs used to measure contingentconsideration.

IFRS3pB67(c) (c) For contingent liabilities recognised in abusiness combination, the acquirer discloses theinformation required by paragraphs 97 and 98of PBE IPSAS 19 for each class of provision;

Refer to Section A5.16 for detailedPBE IPSAS 19 paragraphs 97 and 98 disclosurerequirements.

IFRS3pB67(d) (d) Disclose a reconciliation of the carrying amountof goodwill at the beginning and end of thereporting period showing separately:

(i) the gross amount and accumulatedimpairment losses at the beginning of thereporting period;

(ii) additional goodwill recognised during thereporting period, except goodwill includedin a disposal group that, on acquisition,meets the criteria to be classified as heldfor sale in accordance with PBE IFRS 5;

(iii) adjustments resulting from the subsequentrecognition of deferred tax assets duringthe reporting period in accordance withPBE IFRS 3 paragraph 67;

(iv) goodwill included in a disposal groupclassified as held for sale in accordancewith PBE IFRS 5 and goodwill

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derecognised during the reporting periodwithout having previously been included ina disposal group classified as held for sale;

(v) impairment losses recognised during thereporting period in accordance with PBEIPSAS 26 (PBE IPSAS 26 requiresdisclosure of information about therecoverable amount and impairment ofgoodwill in addition to this requirement);

(vi) net exchange rate differences arisingduring the reporting period in accordancewith PBE IPSAS 4;

(vii) any other changes in the carrying amountduring the reporting period; and

(viii) the gross amount and accumulatedimpairment losses at the end of thereporting period.

IFRS3pRDR67.1 (e) A Tier 2 entity is not required to disclose thereconciliation specified in paragraph B67(d) forprior periods.

IFRS3pB67(e) (f) Disclose the amount and an explanation of anygain or loss recognised in the current reportingperiod that both:

(i) relates to the identifiable assets acquiredor liabilities assumed in a businesscombination that was effected in thecurrent or previous reporting period; and

(ii) is of such a size, nature or incidence thatdisclosure is relevant to understanding thecombined entity's financial statements.


IFRS3p63 1. If the specific disclosures required by this and otherPBE Standards do not meet the objectives set out inPBE IFRS 3 paragraphs 59 and 61, the acquirerdiscloses whatever additional information isnecessary to meet those objectives.

2. Disclose separately:

12p81(j) (a) If a business combination in which the entity isthe acquirer causes a change in the amountrecognises for its pre-acquisition deferred taxasset (see PBE IAS 12 paragraph 67), theamount of that change; and

12p81(k) (b) If the deferred tax benefits acquired in abusiness combination are not recognised at theacquisition date but are recognised after theacquisition date (see PBE IAS 12 paragraph68), a description of the event or change incircumstances that caused the deferred taxbenefits to be recognised.

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A9 Financial instruments Y-NA-NM REF


30p9, AG1-AG3 When PBE IPSAS 30 requires disclosures by class offinancial instrument, group the financial instrumentsinto classes that are appropriate to the nature of theinformation disclosed. Take into account thecharacteristics of those financial instruments. Providesufficient information to permit reconciliation to the lineitems presented in the balance sheet.

30p10 Disclose information that enables users of the financialstatements to evaluate the significance of financialinstruments for financial position and performance.

2. Categories of financial assets and financialliabilities

30p11 1. Disclose either on the face of the statement offinancial position or in the notes the carryingamounts of each of the following categories, asdefined in PBE IPSAS 29:

30pRDR11.1 (a) financial assets at fair value through surplus ordeficit, showing separately:

(i) those designated as such upon initialrecognition; and

(ii) those classified as held for trading inaccordance with PBE IPSAS 29;

(b) held-to-maturity investments;

(c) loans and receivables;

(d) available-for-sale financial assets;

30pRDR11.2 (e) financial liabilities at fair value through surplusor deficit, showing separately:

(i) those designated as such upon initialrecognition; and

(ii) those classified as held for trading inaccordance with PBE IPSAS 29; and

(f) financial liabilities measured at amortised cost.

3. Financial assets or financial liabilities at fairvalue through surplus or deficit

30p12 1. If a loan or receivable (or group of loans orreceivables) is designated as at fair value throughsurplus or deficit, disclose:

(a) the maximum exposure to credit risk (seePBE IPSAS 30 paragraph 43(a)) of the loan orreceivable (or group of loans or receivables) atthe end of the reporting period;

(b) the amount by which any related creditderivatives or similar instruments mitigate thatmaximum exposure to credit risk;

(c) the amount of change, during the period andcumulatively, in the fair value of the loan orreceivable (or group of loans or receivables)that is attributable to changes in the credit riskof the financial asset determined either:

(i) as the amount of change in its fair valuethat is not attributable to changes in

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market conditions that give rise to marketrisk; or

(ii) using an alternative method that theentity believes more faithfully representsthe amount of change in its fair value thatis attributable to changes in the credit riskof the asset.

Changes in market conditions that give rise tomarket risk include changes in an observed(benchmark) interest rate, commodity price,foreign exchange rate or index of prices orrates; and

(d) the amount of the change in the fair value ofany related credit derivatives or similarinstruments that has occurred during theperiod and cumulatively since the loan orreceivable was designated.

30p13, AG4 2. If the entity has designated a financial liability as atfair value through surplus or deficit in accordancewith PBE IPSAS 29, disclose:

(a) the amount of change, during the period andcumulatively, in the fair value of the financialliability that is attributable to changes in thecredit risk of that liability determined either:

(i) as the amount of change in its fair valuethat is not attributable to changes inmarket conditions that give rise to marketrisk (see PBE IPSAS 30, Appendix A,paragraph AG4); or

(ii) using an alternative method that theentity believes more faithfully representsthe amount of change in its fair value thatis attributable to changes in the credit riskof the liability.

Changes in market conditions that giverise to market risk include changes in abenchmark interest rate, the price ofanother entity's financial instrument, acommodity price, a foreign exchange rateor an index of prices or rates. Forcontracts that include a unit-linkingfeature, changes in market conditionsinclude changes in the performance of therelated internal or external investmentfund; and

(b) the difference between the financial liability'scarrying amount and the amount the entitywould be contractually required to pay atmaturity to the holder of the obligation.

30p14, AG4 3. Disclose:

(a) the methods used to comply with therequirements in questions 1(c) and 2(a) above;and

(b) if the entity believes that the disclosure it hasgiven to comply with the requirements inquestions 1(c) and 2(a) above does not faithfullyrepresent the change in the fair value of thefinancial asset or financial liability attributableto changes in its credit risk, the reasons for

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reaching this conclusion and the factors itbelieves are relevant.

29p10(b) 4. Where a financial asset of financial liability has beendesignated as at fair value through surplus or deficitbecause it satisfies the criteria in PBE IPSAS 28paragraph 10(b)(ii) disclose a narrative descriptionof how designation as at fair value through surplusor deficit is consistent with the entity’s documentedrisk management or investment strategy.

4. Reclassification

30p15 1. If the entity has reclassified a financial asset (inaccordance with PBE IPSAS 29 paragraphs 60-63) asone measured:

(a) at cost or amortised cost, rather than at fairvalue; or

(b) at fair value, rather than at cost or amortisedcost,

disclose:

(a) the amount reclassified into and out of eachcategory; and

(b) the reason for that reclassification.

30p16 2. If the entity has reclassified a financial asset out of thefair value through surplus or deficit category inaccordance with PBE IPSAS 29 paragraph 55 or 57, orout of the available-for-sale category in accordancewith paragraph 58 of PBE IPSAS 29, disclose:

(a) the amount reclassified into and out of eachcategory;

(b) for each reporting period until derecognition,the carrying amounts and fair values of allfinancial assets that have been reclassified inthe current and previous reporting periods;

(c) if a financial asset was reclassified in accordancewith paragraph 55 of PBE IPSAS 29:

(i) the rare situation; and

(ii) the facts and circumstances indicating thatthe situation was rare;

(d) for the reporting period when the financial assetwas reclassified, the fair value gain or loss on thefinancial asset recognised in surplus or deficit orother comprehensive revenue and expense in:

(i) that reporting period; and

(ii) in the previous reporting period;

(e) for each reporting period following thereclassification (including the reporting periodin which the financial asset was reclassified)until derecognition of the financial asset:

(i) the fair value gain or loss that would havebeen recognised in surplus or deficit orother comprehensive revenue and expenseif the financial asset had not beenreclassified; and

(ii) the gain, loss, revenue and expenserecognised in surplus or deficit; and

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(f) the effective interest rate and estimatedamounts of cash flows the entity expects torecover, as at the date of reclassification of thefinancial asset.

5. Derecognition

1. Transferred financial assets

30p17 1. An entity may have transferred financial assets insuch a way that part or all of the financial assets donot qualify for derecognition (see PBE IPSAS 29paragraphs 17-39). The entity shall disclose for eachclass of such financial asset:

(a) The nature of the assets;

(b) The nature of the risks and rewards ofownership to which the entity remains exposed;

(c) When the entity continues to recognise all of theassets, the carrying amounts of the assets and ofthe associated liabilities; and

(d) When the entity continues to recognise theassets to the extent of its continuinginvolvement:

(i) the total carrying amount of the originalassets;

(ii) the amount of the assets that the entitycontinues to recognise; and

(iii) the carrying amount of the associatedliabilities.

6. Collateral

30p18 1. Disclose:

(a) the carrying amount of financial assets that theentity has pledged as collateral for liabilities orcontingent liabilities, including amounts thathave been reclassified in accordance with PBEIPSAS 29 paragraph 39(a); and

(b) the terms and conditions relating to its pledge.

30p19 2. When the entity holds collateral (of financial or non-financial assets) and is permitted to sell or repledgethe collateral in the absence of default by the ownerof the collateral, disclose:

(a) the fair value of the collateral held;

(b) the fair value of any such collateral sold orrepledged, and whether the entity has anobligation to return it; and

(c) the terms and conditions associated with its useof the collateral.

7. Allowance account for credit losses

30p20, AG5(d) 1. When financial assets are impaired by credit lossesand the entity records the impairment in a separateaccount (for example, an allowance account used torecord individual impairments or a similar accountused to record a collective impairment of assets)rather than directly reducing the carrying amount ofthe asset, disclose a reconciliation of changes in thataccount during the period for each class of financialassets.

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8. Compound financial instruments withmultiple embedded derivatives

30p21 1. If the entity has issued an instrument that containsboth a liability and an equity component(PBE IPSAS 28 paragraph 33) and the instrument hasmultiple embedded derivatives whose values areinterdependent (such as a callable convertible debtinstrument), disclose the existence of those features.

9. Defaults and breaches

30p22 1. For loans payable recognised at the reporting date,disclose:

(a) details of any defaults during the period ofprincipal, interest, sinking fund or redemptionterms of those loans payable;

(b) the carrying amount of the loans payable indefault at the reporting date; and

(c) whether the default was remedied, or the termsof the loans payable were renegotiated, beforethe financial statements were authorised forissue.

30pRDR22.1 2. For loans payable recognised at the end of thereporting period for which there is a breach of termsor default of principal, interest, sinking fund, orredemption of terms that has not been remedied bythe end of the reporting period, a Tier 2 entity shalldisclose the following:

(a) details of that breach or default;

(b) the carrying amount of the related loans payableat the end of the reporting period; and

(c) whether the breach or default was remedied, orthe terms of the loans payable wererenegotiated, before the financial statementswere authorised for issue.

30p23 3. If during the period there were breaches of loanagreement terms other than those described inquestions 1 and above, disclose the same informationas required by question 1 above if those breachespermitted the lender to demand acceleratedrepayment (unless the breaches were remedied, orthe terms of the loan were renegotiated, on or beforethe reporting period).

10. Items of income, expense, gains or losses

30p24 1. Disclose the following items of revenue, expense,gains or losses either in the statement ofcomprehensive revenue and expense or in the notes:

(a) net gains or net losses on:

30pRDR24.1 (i) financial assets or financial liabilities at fairvalue through surplus or deficit, showingseparately:

(1) those on financial assets or financialliabilities designated as such uponinitial recognition: and

(2) those on financial assets or financialliabilities that are classified as heldfor trading in accordance with PBEIPSAS 29;

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(ii) available-for-sale financial assets, showingseparately:

(1) the amount of gain or loss recognisedin other comprehensive revenue andexpense during the period; and

(2) the amount reclassified from netassets / equity to surplus or deficit forthe period;

(iii) held-to-maturity investments;

(iv) loans and receivables; and

(v) financial liabilities measured at amortisedcost;

(b) total interest revenue and total interest expense(calculated using the effective interest method)for financial assets or financial liabilities that arenot at fair value through surplus or deficit;

(c) fee revenue and expense (other than amountsincluded in determining the effective interestrate) arising from:

(i) financial assets or financial liabilities thatare not at fair value through surplus ordeficit; and

(ii) trust and other fiduciary activities thatresult in the holding or investing of assetson behalf of individuals, trusts, retirementbenefit plans and other institutions;

(d) interest revenue on impaired financial assetsaccrued in accordance with paragraph AG126of PBE IPSAS 29; and

(e) the amount of any impairment loss for eachclass of financial asset.


1. Accounting policies

30pAG5 1. Disclosure of significant accounting policiescomprising the measurement basis (or bases) used inpreparing the financial statements and the otheraccounting policies used that are relevant to anunderstanding of the financial statements, mayinclude:

(a) for financial assets or financial liabilitiesdesignated as at fair value through surplus ordeficit:

(i) the nature of the financial assets orfinancial liabilities the entity hasdesignated as at fair value through surplusor deficit;

(ii) the criteria for designating such financialassets or financial liabilities on initialrecognition; and

(iii) how the entity has satisfied the conditionsin paragraphs 10, 13, or 14 ofPBE I PSAS 29 for such designation.

(1) For instruments designated inaccordance with PBE IPSAS 29paragraph 10(b)(i) of the definition of

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a financial asset or financial liabilityat fair value through surplus ordeficit, include a narrative descriptionof the circumstances underlying themeasurement or recognitioninconsistency that would otherwisearise.

(2) For instruments designated inaccordance with PBE IPSAS 29paragraph 10(b)(ii) of the definitionof a financial asset or financialliability at fair value through surplusor deficit, include a narrativedescription of how designation at fairvalue through surplus or deficit isconsistent with the entity'sdocumented risk management orinvestment strategy;

(b) the criteria for designating financial assets asavailable for sale;

(c) whether regular way purchases and sales offinancial assets are accounted for at trade dateor at settlement date (see paragraph 40 ofPBE IPSAS 29);

(d) when an allowance account is used to reduce thecarrying amount of financial assets impaired bycredit losses:

(i) the criteria for determining when thecarrying amount of impaired financialassets is reduced directly (or, in the case ofa reversal of a write-down, increaseddirectly) and when the allowance accountis used; and

(ii) the criteria for writing off amounts chargedto the allowance account against thecarrying amount of impaired financialassets (see PBE IPSAS paragraph 20);

(e) how net gains or net losses on each category offinancial instrument are determined (seePBE IPSAS 30 paragraph 24(a)), for example,whether the net gains or net losses on items atfair value through surplus or deficit includeinterest or revenue from dividends or similardistributions;

(f) the criteria the entity uses to determine thatthere is objective evidence that an impairmentloss has occurred (see PBE IPSAS 30 paragraph24(e)); and

(g) when the terms of financial assets that wouldotherwise be past due or impaired have beenrenegotiated, the accounting policy for financialassets that are the subject of renegotiated terms(see PBE IPSAS 30 paragraph 43(d)); and

(h) For financial guarantee contracts issued througha non-exchange transaction, where no fair valuecan be determined and a provision is recognisedin accordance with PBE IPSAS 19, disclosure ofthe circumstances that result in a provisionbeing recognised.

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1p137, 30pAG5 2. Disclose, along with significant accounting policies orother notes, the judgements, apart from thoseinvolving estimations, that management has made inthe process of applying the entity's accountingpolicies and that have the most significant effect onthe amounts recognised in the financial statements.

2. Hedge accounting

30p26 1. Disclose the following separately for each type ofhedge described in PBE IPSAS 29 (ie, fair valuehedges, cash flow hedges and hedges of netinvestments in foreign operations):

(a) a description of each type of hedge;

(b) a description of the financial instrumentsdesignated as hedging instruments and their fairvalues at the end of the reporting period; and

(c) the nature of the risks being hedged.

30p27 2. For cash flow hedges, disclose:

(a) the periods when the cash flows are expected tooccur and when they are expected to affectsurplus or deficit;

(b) a description of any forecast transaction forwhich hedge accounting had previously beenused, but which is no longer expected to occur;

(c) the amount that was recognised in othercomprehensive revenue and expense during theperiod;

RDR 27.1 (d) the amount that was reclassified from netassets/equity to surplus or deficit for the period,showing the amount included in each line itemin the statement of comprehensive revenue andexpense; and

(e) the amount that was removed from netassets/equity during the period and included inthe initial cost or other carrying amount of anon-financial asset or non-financial liabilitywhose acquisition or incurrence was a hedgedhighly probable forecast transaction.

30p28 3. Disclose separately:

(a) in fair value hedges, gains or losses:

(i) on the hedging instrument; and

(ii) on the hedge item attributable to thehedged risk;

(b) the ineffectiveness recognised in surplus ordeficit that arises from cash flow hedges; and

(c) the ineffectiveness recognised in surplus ordeficit that arises from hedges of netinvestments in foreign operations.

29pC13-15 4. If the step-by-step method of consolidation is used,disclose whether the entity has chosen to adjust theamounts reclassified to surplus or deficit on adisposal (or partial disposal) of a foreign operation tothe amount that arises under the direct method.

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3. Fair value

30p29 1. Except as set out in PBE IPSAS 30 paragraph 35, foreach class of financial assets and financial liabilities(see PBE IPSAS 30 paragraph 9), disclose the fairvalue of that class of assets and liabilities in a waythat permits it to be compared with its carryingamount.

30p30 In disclosing fair values, group financial assets andfinancial liabilities into classes, but offset them onlyto the extent that their carrying amounts are offset inthe statement of financial position.

30p31 2. Disclose for each class of financial instrument themethods and, when a valuation technique is used, theassumptions applied in determining fair values ofeach class of financial assets or financial liabilities.For example, if applicable, an entity disclosesinformation about the assumptions relating toprepayment rates, rates of estimated credit losses,and interest rates or discount rates. If there has beena change in valuation technique, disclose that changeand the reasons for making it.

30pRDR31.1 A Tier 2 entity shall disclose, for all financial assetsand financial liabilities that are measured at fairvalue, the basis for determining fair value, forexample quoted market price in an active market or avaluation technique. When a valuation technique isused, the entity shall disclose the assumptions appliedin determining fair value for each class of financialassets or financial liabilities. For example, ifapplicable, an entity discloses information about theassumptions relating to prepayment rates, rates ofestimated credit losses, and interest rates or discountrates.

30p32 3. To make the disclosures required by paragraph 33,classify fair value measurements using a fair valuehierarchy that reflects the significance of the inputsused in making the measurements. The fair valuehierarchy has the following levels:

(a) quoted prices (unadjusted) in active marketsfor identical assets or liabilities (Level 1);

(b) inputs other than quoted prices included withinLevel 1 that are observable for the asset orliability, either directly (i.e. as prices) orindirectly (that is, derived from prices) (Level2); and

(c) inputs for the asset or liability that are notbased on observable market data(unobservable inputs) (Level 3).

The level in the fair value hierarchy within which thefair value measurement is categorised in its entiretyis determined on the basis of the lowest level inputthat is significant to the fair value measurement inits entirety. The significance of an input is assessedagainst the fair value measurement in its entirety. Ifa fair value measurement uses observable inputsthat require significant adjustment based onunobservable inputs, that measurement is a Level 3measurement. Assessing the significance of aparticular input to the fair value measurement in its

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entirety requires judgement, considering factorsspecific to the asset or liability.

30p33 4. For fair value measurements recognised in thestatement of financial position, disclose for eachclass of financial instrument:

(a) the level in the fair value hierarchy into whichthe fair value measurements are categorised intheir entirety, segregating fair valuemeasurements in accordance with the levelsdefined in PBE IPSAS 30 paragraph 32;

(b) any significant transfers between Level 1 andLevel 2 of the fair value hierarchy and thereasons for those transfers. Transfers into eachlevel are disclosed and discussed separatelyfrom transfers out of each level. For thispurpose, significance is judged with respect tosurplus or deficit, and total assets or totalliabilities;

(c) for fair value measurements in Level 3 of thefair value hierarchy, a reconciliation from thebeginning balances to the ending balances,disclosing separately changes during the periodattributable to the following:

(i) total gains or losses for the periodrecognised in surplus or deficit, and adescription of where they are presented inthe statement(s) of comprehensiverevenue and expense;

(ii) total gains or losses recognised in othercomprehensive revenue and expense;

(iii) purchases, sales, issues and settlements(each type of movement disclosedseparately); and

(iv) transfers into or out of Level 3 (forexample, transfers attributable to changesin the observability of market data) andthe reasons for those transfers. Forsignificant transfers, transfers into Level 3are disclosed and discussed separatelyfrom transfers out of Level 3;

(d) the amount of total gains or losses for theperiod in (c)(i) included in surplus or deficitthat are attributable to gains or losses relatingto those assets and liabilities held at the end ofthe reporting period and a description of wherethose gains or losses are presented in thestatement(s) of comprehensive revenue andexpense; and

(e) for fair value measurements in Level 3, ifchanging one or more of the inputs toreasonably possible alternative assumptionswould change fair value significantly, then theentity states that fact and discloses the effect ofthose changes. The entity discloses how theeffect of a change to a reasonably possiblealternative assumption was calculated. For thispurpose, significance is judged with respect tosurplus or deficit, and total assets or totalliabilities, or, when changes in fair value are

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recognised in other comprehensive revenue andexpense, total net assets/equity.

Disclose the quantitative disclosures in question 4above in tabular format unless another format ismore appropriate.

30p34 5. If the market for a financial instrument is not active,its fair value is established using a valuationtechnique (see PBE IPSAS 29 paragraphs AG106-112).The best evidence of fair value at initial recognition isthe transaction price (ie, the fair value of theconsideration given or received), unless conditionsdescribed in PBE IPSAS 29 paragraph AG108 are met.There could be a difference between the fair value atinitial recognition and the amount that would bedetermined at that date using the valuationtechnique. If such a difference exists, disclose, byclass of financial instrument:

(a) the accounting policy for recognising thatdifference in surplus or deficit to reflect achange in factors (including time) that marketparticipants would consider in setting a price(see PBE IPSAS 29 paragraph AG109); and

(b) the aggregate difference yet to be recognised insurplus or deficit at the beginning and end ofthe period and a reconciliation of changes in thebalance of this difference.

30p35 6. Disclosures of fair value are not required:

(a) when the carrying amount is a reasonableapproximation of fair value (for example, forfinancial instruments such as short-term tradereceivables and payables);

(b) for an investment in equity instruments that donot have a quoted market price in an activemarket, or derivatives linked to such equityinstruments, that is measured at cost inaccordance with PBE IPSAS 29 because its fairvalue cannot be measured reliably; or

(c) for a contract containing a discretionaryparticipation feature if the fair value of thatfeature cannot be measured reliably.

30p36 7. In the cases described in questions 6(b) and (c) above,disclose information to help users of the financialstatements make their own judgements about theextent of possible differences between the carryingamount of those financial assets or financial liabilitiesand their fair value, including:

(a) the fact that fair value information has not beendisclosed for these instruments because theirfair value cannot be measured reliably;

(b) a description of the financial instruments, theircarrying amount, and an explanation of whyfair value cannot be measured reliably;

(c) information about the market for theinstruments;

(d) information about whether and how the entityintends to dispose of the financial instruments;and

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(e) if financial instruments whose fair valuepreviously could not be reliably measured arederecognised, that fact, their carrying amountat the time of derecognition, and the amount ofgain or loss recognised.

12. Concessionary loans

30p37 1. For concessionary loans granted an entity shalldisclose:

(a) A reconciliation between the opening andclosing carrying amounts of the loans, including:

(i) Nominal value of new loans granted duringthe period;

(ii) The fair value adjustment on initialrecognition;

(iii) Loans repaid during the period;

(iv) Impairment losses recognised;

(v) Any increase during the period in thediscounted amount arising from thepassage of time; and

(vi) Other changes.

(b) Nominal value of the loans at the end of theperiod;

(c) The purpose and terms of the various types ofloans; and

(d) Valuation assumptions.

13. Nature and extent of risks arising fromfinancial instruments

30p38 Disclose information that enables users of the financialstatements to evaluate the nature and extent of risksarising from financial instruments to which the entity isexposed at the reporting date.

30AG6 The disclosures required by PBE IPSAS 30 paragraphs38-49 should either be given in the financial statementsor incorporated by cross- reference from the financialstatements to some other statement, such as amanagement commentary or risk report, that isavailable to users of the financial statements on the sameterms as the financial statements and at the same time.Without the information incorporated by cross-reference,the financial statements are incomplete.

30p39 The disclosures required by PBE IPSAS 30 paragraphs40-49 focus on the risks that arise from financialinstruments and how they have been managed. Theserisks typically include, but are not limited to, credit risk,liquidity risk and market risk.

14. Qualitative disclosures

30p40 1. For each type of risk arising from financialinstruments, disclose:

(a) the exposures to risk and how they arise;

(b) objectives, policies and processes for managingthe risk and the methods used to measure therisk; and

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(c) any changes in (a) or (b) from the previousperiod.

15. Quantitative disclosures

30p41, AG7 1. For each type of risk arising from financialinstruments, disclose:

(a) summary quantitative data about exposure tothat risk at the reporting date. This disclosureshould be based on the information providedinternally to key management personnel of theentity (as defined in PBE IPSAS 20), forexample the entity's governing board ofdirectors or chief executive officer;

(b) the disclosures required by PBE IPSAS 30paragraphs 43-49, to the extent not provided inaccordance with (a), unless the risk is notmaterial (see paragraphs 45-47 of PBE IPSAS 1for a discussion of materiality); and

(c) concentrations of risk if not apparent from thedisclosures made in accordance with (a) and(b).

30AG8 2. Question 1(c) above requires disclosures aboutconcentrations of risk. Concentrations of risk arisefrom financial instruments that have similarcharacteristics and are affected similarly by changesin economic or other conditions. The identification ofconcentrations of risk requires judgement, takinginto account the circumstances of the entity. Includein the disclosure of concentrations of risk:

(a) a description of how management determinesconcentrations;

(b) a description of the shared characteristic thatidentifies each concentration (for example,counterparty, geographical area, currency ormarket); and

(c) the amount of the risk exposure associated withall financial instruments sharing thatcharacteristic.

30p42 3. If the quantitative data disclosed as at the reportingdate is unrepresentative of the entity's exposure torisk during the period, provide further informationthat is representative.

1. Credit risk

IFRS30p43 1. Disclose by class of financial instrument:

(a) the amount that best represents its maximumexposure to credit risk at the end of thereporting period without taking account of anycollateral held or other credit enhancements(that is, netting agreements that do not qualifyfor offset in accordance with PBE IPSAS 28);

(b) in respect of the amount disclosed in (a) above,a description and the financial effect ofcollateral held as security and other credit;

(c) information about the credit quality of financialassets that are neither past due nor impaired;and

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(d) the carrying amount of financial assets thatwould otherwise be past due or impaired whoseterms have been renegotiated.

2. Financial assets that are either past due orimpaired

30p44 1. Disclose by class of financial asset:

(a) an analysis of the age of financial assets thatare past due as at the end of the reportingperiod but not impaired;

(b) an analysis of financial assets that areindividually determined to be impaired as atthe end of the reporting period, including thefactors the entity considers in determining thatthey are impaired; and

(c) for the amounts disclosed in (a) and (b) above,a description of collateral held as security andother credit enhancements, and, unlessimpracticable, an estimate of their fair value.

3. Collateral and other credit enhancementsobtained

30p45 1. When an entity obtains financial or non-financialassets during the period by taking possession ofcollateral it holds as security or calling on othercredit enhancements (that is guarantees), and suchassets meet the recognition criteria in other PBEStandards, disclose:

(a) the nature and carrying amount of the assetsobtained; and

(b) when the assets are not readily convertible intocash, its policies for disposing of such assets orfor using them in its operations.

4. Liquidity risk

30p46 1. Disclose:

(a) a maturity analysis for non-derivativefinancial liabilities (including issued financialguarantee contracts) that shows the remainingcontractual maturities;

(b) a maturity analysis for derivative financialliabilities. The maturity analysis should includethe remaining contractual maturities areessential for an understanding of the timing ofthe cash flows (see paragraph AG14); and

(c) a description of how the liquidity risk inherentin (a) and (b).

30pAG17 2. Disclose a maturity analysis of financial assets itholds for managing liquidity risk (e.g., financialassets that are readily saleable or expected togenerate cash inflows to meet cash outflows onfinancial liabilities), if that information is necessaryto enable users of its financial statements to evaluatethe nature and extent of liquidity risk.

30pAG11 3. If the outflows of cash could included in this dataeither occur significantly earlier than indicated inthe data or be for significantly different amountsthan indicated in the data, disclose:

(a) that fact; and

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(b) quantitative information that enables users ofthe financial statements to evaluate the extentof that risk.

30AG12 4. In preparing the contractual maturity analysis forfinancial liabilities required by PBE IPSAS 30paragraphs 46(a) and (b), use judgement todetermine an appropriate number of time bands. Forexample, an entity might determine that thefollowing time bands are appropriate:

(a) no later than one month;

(b) later than one month and no later than threemonths;

(c) later than three months and no later than oneyear; and

(d) later than one year and no later than five years.

5. Market risk

Sensitivity analysis

30p47 1. Unless an entity complies with PBE IPSAS 30paragraph 48, disclose:

(a) a sensitivity analysis for each type of marketrisk to which the entity is exposed at the end ofthe reporting period, showing how surplus ordeficit and net assets / equity would have beenaffected by changes in the relevant risk variablethat were reasonably possible at that date;

(b) the methods and assumptions used inpreparing the sensitivity analysis; and

(c) changes from the previous period in themethods and assumptions used, and thereasons for such changes.

30p48 2. If the entity prepares a sensitivity analysis, such asvalue at risk, that reflects interdependencies betweenrisk variables (for example, interest rates andexchange rates) and uses it to manage financialrisks, it may use that sensitivity analysis in place ofthe analysis specified in PBE IPSAS 30 paragraph47. Also disclose:

(a) an explanation of the method used in preparingsuch a sensitivity analysis, and of the mainparameters and assumptions underlying thedata provided; and

(b) an explanation of the objective of the methodused and of limitations that may result in theinformation not fully reflecting the fair value ofthe assets and liabilities involved.

30p49 3. When the sensitivity analyses disclosed inaccordance with questions 1 and 2 above areunrepresentative of a risk inherent in a financialinstrument (for example, because the year-endexposure does not reflect the exposure during theyear), disclose:

(a) that fact; and

(b) the reason the sensitivity analyses areunrepresentative.

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16. Capital disclosures

1p148A

1p148A.1

1. Disclose information that enables users of the entity’sfinancial statements to evaluate its objectives,policies and processes for managing capital.

‘Capital’ in this context refers to components ofassets, liabilities and net assets/equity that the entityregards as capital and manages as such. For manyentities, capital is the same as net assets/equity.However for some entities, certain instrumentsclassified as liabilities under PBE IPSAS 28 areconsidered to be capital.

1p148B 2. To comply with paragraph 148A, disclose thefollowing:

(a) qualitative information about the entity’sobjectives, policies and processes for managingcapital, including (but not limited to):

(i) a description of what it manages ascapital;

(ii) when an entity is subject to externallyimposed capital requirements, the natureof those requirements and how thoserequirements are incorporated into themanagement of capital; and

(iii) how it is meeting its objectives formanaging capital;

(b) summary quantitative data about what itmanages as capital. Some entities regard somefinancial liabilities (for example, some forms ofsubordinated debt) as part of capital. Otherentities regard capital as excluding somecomponents of equity (for example, componentsarising from cash flow hedges);

(c) any changes in (a) and (b) from the previousperiod;

(d) whether during the period it complied with anyexternally imposed capital requirements towhich it is subject; and

(e) when the entity has not complied with suchexternally imposed capital requirements, theconsequences of such non-compliance.

3. Base these disclosures on the information providedinternally to the entity's key management personnel.

1p148C An entity may manage capital in a number of waysand be subject to a number of different capitalrequirements. For example, a conglomerate mayinclude entities that undertake insurance activitiesand banking activities, and those entities may alsooperate in several jurisdictions. When an aggregatedisclosure of capital requirements and how capital ismanaged would not provide useful information ordistorts a financial statement user's understandingof an entity's capital resources, the entity shoulddisclose separate information for each capitalrequirement to which the entity is subject.

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1p95A(a) 4. If an entity has reclassified a puttable financialinstrument classified as an equity instrumentbetween financial liabilities and net assets/equity,disclose:

(a) the amount reclassified into and out of eachcategory (financial liabilities and netassets/equity); and

(b) the timing and reason for that reclassification.

1p148D 5. Disclose for puttable financial instruments classifiedas equity instruments (to the extent not disclosedelsewhere):

(a) summary quantitative data about the amountclassified as net assets/equity;

(b) its objectives, policies and processes formanaging its obligation to repurchase orredeem the instruments when required to do soby the instrument holders, including anychanges from the previous period;

(c) the expected cash outflow on redemption orrepurchase of that class of financialinstruments; and

(d) information about how the expected cashoutflow on redemption or repurchase wasdetermined.

1p95A(b) 6. If an entity has reclassified an instrument thatimposes on the entity an obligation to deliver toanother party a pro rata share of the net assets ofthe entity only on liquidation and is classified as anequity instrument between financial liabilities andnet assets/equity, disclose:

(a) the amount reclassified into and out of eachcategory (financial liabilities or netassets/equity); and

(b) the timing and reason for that reclassification.

17. Financial guarantees

29p2(e) The issuer of financial guarantee contracts may elect toapply either PBE IFRS 4 (if the entity has previouslyasserted explicitly that it regards such contracts asinsurance contracts and has used accounting applicableto insurance contracts) or PBE IPSAS 29 formeasurement of financial guarantee contracts.

If the entity elects to apply PBE IFRS 4, it should complywith PBE IFRS 4 disclosure requirements to suchcontracts (refer to Appendix A).

If the entity elects to apply PBE IPSAS 29 formeasurement of financial guarantee contracts, it shouldcomply with PBE IPSAS 30 disclosure requirements forthese contracts.

18. Members’ shares in co-operative entities andsimilar instruments

28pB11 1. When a change in the redemption prohibition leads toa transfer between financial liabilities and net assets /equity, disclose separately the amount, timing andreason for that transfer.

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A10 Non-current assets held for sale and discontinuedoperations

Y-NA-NM REF

The following disclosures are required when an entityhas non- current assets held for sale and/or discontinuedoperations as defined by PBE IFRS 5.

IFRS5p5A The classification, presentation and measurementrequirements in PBE IFRS 5 applicable to a non-currentasset (or disposal group) that is classified as held for saleapply also to a non-current asset that is held fordistribution to owners acting in their capacity as owners(held for distribution to owners).

IFRS5p5B An entity with non-current assets (or disposal groups)classified as held for sale or as a discontinued operationapplies the disclosure requirements of PBE IFRS 5.Disclosure in other PBE Standards do not apply to suchassets or (disposal groups) unless those PBE Standardsrequire:

(a) specific disclosures for non-current assets (ordisposal groups) classified as held for sale ordiscontinued operations; or

(b) disclosure about measurement of assets andliabilities within a disposal group that are notwithin the scope of PBE IFRS 5 and are notalready provided in the other notes to thefinancial statements.

1. Non-current asset or disposal group held forsale

IFRS5p38, 1p88.1 1. Present separately from other assets in the statementof financial position a non-current asset classified asheld for sale and the assets of a disposal groupclassified as held for sale (within current assets).

IFRS5p38, 1p88.1 2. Present the liabilities of a disposal group classified asheld for sale separately (classified as currentliabilities) from other liabilities in the statement offinancial position.

IFRS5p38 3. Do not offset the assets and liabilities of a disposalgroup and present as a single amount.

IFRS5p38 4. Disclose separately the major classes of assets andliabilities classified as held for sale either on the faceof the statement of financial position or in the notesto the financial statements.

IFRS5p39 5. Disclosure of the major classes of assets and liabilitiesis not required if the disposal group is a newlyacquired controlled entity that meets the criteria to beclassified as held for sale on acquisition.

IFRS5p38 6. Present separately any cumulative revenue or expenserecognised directly in other comprehensive revenueand expense relating to a non-current asset (ordisposal group) classified as held for sale.

IFRS5p40 7. Amounts presented for non-current assets or for theassets and liabilities of disposal groups classified asheld for sale in the statement of financial position forprior periods shall not be reclassified or re-presentedin prior periods to reflect the classification in thestatement of financial position for the latest periodpresented.

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IFRS5p41 8. In the period in which a non-current asset (ordisposal group) has been either classified as held forsale or sold, disclose:

(a) a description of the non-current asset (ordisposal group);

(b) a description of the facts and circumstances ofthe sale or leading to the expected disposal andthe expected manner and timing of thatdisposal;

(c) the gain or loss recognised in accordance withPBE IFRS 5 paragraphs 20-22, and if notseparately presented on the face of thestatement of comprehensive revenue andexpense, the caption in the statement ofcomprehensive revenue and expense thatincludes that gain or loss; and

IFRS5p12 9. Disclose the information specified in question 8 abovein the notes if the criteria for classification of non-current assets (or disposal groups) as held for sale(refer to PBE IFRS 5 paragraphs 7 and 8) are metafter the balance sheet date but before theauthorisation of the financial statements for issue.

IFRS5p42 10. If a non-current asset (or disposal group) ceases tobe held for sale, disclose

(a) a description of the facts and circumstancesleading to the decision to change the plan to sellthe non-current asset (or disposal group);together with

(b) the effect of the decision on the results ofoperations for the period and any prior periodspresented.

2. Presenting discontinued operations

IFRS5p33(a),(b) 1. For discontinued operations, disclose the followingfor all periods presented:

(a) a single amount in the statement ofcomprehensive revenue and expense comprisingthe total of:

(i) the post-tax gain or loss from discontinuedoperations; and

(ii) the post-tax gain or loss recognised on themeasurement to fair value less costs to sellor on the disposal of the assets or disposalgroup(s) constituting the discontinuedoperation; and

(b) an analysis of the single amount in (a) into:

(i) the revenue, expenses and pre-tax profitor loss of discontinued operations;

12p81(h), PBE IFRS5p33(b)(iv)

(ii) the related income tax expense relating to:

– the gain or loss on discontinuance; and

– the surplus or deficit from thediscontinued operation for the period,together with the correspondingamounts for each prior periodpresented; and

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(iii) the gain or loss recognised on themeasurement to fair value less costs to sellor on the disposal of the assets or disposalgroup(s) constituting the discontinuedoperation.

The analysis may be given in the notes or in thestatement of comprehensive revenue andexpense. If it is presented in the statement ofcomprehensive revenue and expense, it shouldbe presented in a section identified as relatingto discontinued operations separate fromcontinuing operations.

The analysis is not required if the disposalgroup is a newly acquired controlled entitiesthat meet the criteria to be classified as held forsale on acquisition (see PBE IFRS 5 paragraph11).

IFRS5p33A If an entity presents the items of surplus ordeficit in a separate statement as described inparagraph 22.1 of PBE IPSAS 1, a sectionidentified as relating to discontinued operationsis presented in that statement.

IFRS5p34 2. Re-present the disclosures in question 1 above forprior periods presented in the financial statements sothat the disclosures relate to all operations that havebeen discontinued by the end of the reporting periodfor the latest period presented.

IFRS5p35

IFRS5pRDR35.1

3. Present separately in discontinued operations anyadjustments in the current period to amountspreviously presented in discontinued operations thatare directly related to the disposal of a discontinuedoperation in a prior period. The nature and amountof such adjustments should be disclosed.

Examples of circumstances in which theseadjustments may arise include:

(a) The resolution of uncertainties that arise fromthe terms of the disposal transaction, such asthe resolution of purchase price adjustmentsand indemnification issues with the purchaser;

(b) The resolution of uncertainties that arise fromand are directly related to the operations of thecomponent before its disposal, such asenvironmental and product warrantyobligations retained by the seller; and

(c) The settlement of employee benefit planobligations, if the settlement is directly relatedto the disposal transaction.

IFRS5p36 4. If a component of an entity ceases to be classified asheld for sale, reclassify the results of operations of thecomponent previously presented in discontinuedoperations and include it in revenue from continuingoperations for all periods presented. Disclose theamounts for prior periods as having been re-presented.

IFRS5p36A 5. An entity that is committed to a sale plan involvingthe loss of control of a controlled entity discloses theinformation required by questions 1-4 above when thecontrolled entity is a disposal group that meets the

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definition of a discontinued operation in accordancewith PBE IFRS 5 paragraph 32.

3. Gains or losses relating to continuingoperations

IFRS5p37 1. Any gain or loss on the remeasurement of a non-current asset (or disposal group), classified as held forsale that does not meet the definition of adiscontinued operation shall be included in surplus ordeficit from continuing operations.

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Section B Disclosures required of all PBEs but only in certainsituations

B1 Correction of prior-period errors Y-NA-NM REF

3p54 1. Disclose:

(a) the nature of the prior-period error;

(b) for each prior period presented, to the extentpracticable, the amount of the correction foreach financial statement line item affected.

(c) the amount of the correction at the beginning ofthe earliest prior period presented; and

(d) if retrospective restatement is impracticable fora particular prior period:

(i) the circumstances that led to the existenceof that condition; and

(ii) a description of how and from when theerror has been corrected.

3p54 These disclosures need not be repeated in thefinancial statements of subsequent periods.

B2 Reporting in the currency of a hyperinflationaryeconomy

Y-NA-NM REF

1p132 1. Disclose accounting policies.

10p36(a) 2. Disclose the fact that the financial statements and thecomparative information for previous periods havebeen restated for the changes in the generalpurchasing power of the functional currency and, as aresult, are stated in terms of the measuring unitcurrent at the reporting date.

10p39(b) 3. Disclose the following information:

(a) the identity of the price index at the reportingdate;

(b) the level of the price index at the reporting date;and

(c) the movement in the index during the currentand previous reporting period.

10p12 4. Disclose the surplus or deficit on the net monetaryposition included in surplus or deficit.

B3 Uncertainties about going concern Y-NA-NM REF

1p38 1. Disclose material uncertainties relating to events orconditions that may cast significant doubt upon theentity's ability to continue as a going concern.

1p38 2. In the extremely rare situation where the goingconcern basis has not been used, disclose that facttogether with:

(a) the reasons why the entity is not regarded as agoing concern; and

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(b) the basis actually used to prepare the financialstatements.

3. Ensure the disclosure requirements withinISA (NZ) 570: Going Concern have also beenaddressed.

B4 Departure from PBE Standards Y-NA-NM REF

1p31, 32 1. In the extremely rare situations where managementconcludes that compliance with a requirement in aPBE Standard would be so misleading that it wouldconflict with the objective of financial statements setout in PBE IPSAS 1, an entity shall depart from thatrequirement if the relevant regulatory frameworkrequires, or does not prohibit such a departure. Inthese circumstances, disclose:

(a) that management has concluded that thefinancial statements fairly present the entity'sfinancial position, financial performance andcash flows;

(b) that it has complied with applicable PBEStandards, except that it has departed from aparticular requirement to achieve a fairpresentation;

(c) the title of the Standard from which the entityhas departed;

(d) the nature of the departure, including thetreatment that the Standard would require;

(e) the reason why that treatment would bemisleading in the circumstances that it wouldconflict with the objective of financialstatements set out in PBE IPSAS 1;

(f) the treatment adopted; and

(g) for each period presented, the financial impactof the departure on each item in the financialstatements that would have been reported incomplying with the requirement.

1p33 2. Where an entity has departed from a requirement of aStandard in a prior period and the amountsrecognised in the current period are affected by thatdeparture, make disclosures 1(c) and (d) above.

1p35 3. Where management concludes that compliance with arequirement in a Standard would be so misleading asto conflict with the objective of financial statementsset out in PBE IPSAS 1, but departure from therequirement is prohibited by the relevant regulatoryframework, reduce the perceived misleading aspectsof compliance as far as possible by disclosing:

(a) the title of the Standard in question;

(b) the nature of the requirement;

(c) the reason why management has concludedcompliance with that requirement to be somisleading in the circumstances that it conflictswith the objective of financial statements set outin PBE IPSAS 1; and

(d) for each period presented, the adjustments toeach item in the financial statements that

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management has concluded would be necessaryto give a fair presentation.

B5 Change of reporting date Y-NA-NM REF

1p66 1. When an entity’s reporting date changes, and theannual financial statements are presented for a periodlonger or shorter than one year, disclose:

(a) The period covered by the financial statements;

(b) the reason for using a longer or shorter period;and

(c) the fact that comparative amounts for thestatement of comprehensive revenue andexpense, statement of changes in netassets/equity, cash flow statement and relatednotes are not entirely comparable.

B6 First-time adoption of PBE Standards by entitiespreviously applying NZ IFRS

Y-NA-NM REF

1. Scope

FRS46p4 1. PBE FRS 46 applies to an entity’s first set of annualgeneral purpose financial statements presented inaccordance with PBE Standards.

FRS46p5 2. If an entity has previously applied PBE FRS 46 orpreviously presented general purpose financialstatements that complied with NZ IFRS PBE, NZIFRS, NZ IFRS Diff Rep or NZ IFRS RDR but not inthe immediately preceding period and is transitioningagain to Tier 1 or Tier 2 PBE Standards thenPBE FRS 47 should be applied.

2. Disclosure

FRS46p40 1. State that the interim or annual financial statementspresented are its first set of financial statementspresented in accordance with PBE Standards or PBEStandards RDR, as appropriate.

FRS46p42 2. Disclose the nature and amount of the adjustment foreach financial statement line item that is materiallyaffected at the date of adoption of PBE Standards,

FRS46p42 3. Distinguish separately corrections of errors andvoluntary changes in accounting policies fromchanges resulting from transition to PBE Standards.

3. Comparative information

FRS46p18, 1p55 1. Reclassify comparative amounts, unless thereclassification is impracticable, where thepresentation or classification of an item in thefinancial statements changes as a result of the firsttime application of PBE Standards.

FRS46p18, 1p55 2. When comparative amounts are reclassified, disclose:

(a) The nature of the reclassification;

(b) The amount of each item or class of items that isreclassified; and

(c) The reason for the reclassification.

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1p56 3. When it is impracticable to reclassify comparativeamounts, disclose:

(a) The reason for not reclassifying the amounts;and

(b) The nature of the adjustments that would havebeen made if the amounts had been reclassified.

FRS46p19 4. Present all comparative information in accordancewith PBE Standards. This includes the presentation ofa comparative cash flow statement in accordance withPBE IPSAS 2 where an entity had previously qualifiedfor, and applied, the differential reporting concessionin NZ IAS 7 not to present such a statement.

FRS46p20 5. If historical summaries, or comparative informationadditional to that required by PBE IPSAS 1, preparedin accordance with both NZ IFRSs and PBEStandards, is contained in the financial statements:

(a) Identify the NZ IFRS information prominentlyas not being prepared in accordance with PBEStandards; and

(b) Disclose the nature of the main adjustments thatwould be necessary to make that informationcomply with PBE Standards.

An entity need not quantify those adjustments.

4. Specific transitional provisions – entitiespreviously applying differential reportingconcessions

FRS46p30 1. On first-time adoption of PBE Standards, an entitythat previously qualified for, and applied, any of therecognition and measurement differential reportingconcessions available under NZ IFRS PBE or NZ IFRSDiff Rep shall change its accounting policies tocomply with PBE Standards and:

(a) disclose the accounting policy previously appliedunder NZ IFRS PBE or NZ IFRS Diff Rep; and

(b) restate the comparative information inaccordance with section 3(1.-3.) above.

B7 First-time adoption of PBE Standards by entitiesother than those previously applying NZ IFRS

Y-NA-NM REF

1. Scope

Tier 1 entities

FRS47p4 1. A Tier 1 entity that has not previously applied NZIFRS PBE, NZ IFRS, NZ IFRS Diff Rep or NZ IFRSRDR in the immediately preceding period shall applythis PBE Standard in its first set of financialstatements under PBE Standards.

FRS47p5.1 2. PBE FRS 47 does not apply when a Tier 1 entitypresented financial statements in its most recentprevious reporting period that contained a statementof compliance with PBE Standards RDR.

FRS47p6 3. A Tier 1 entity that has previously applied PBEStandards, but not in its most recent previousfinancial statements, shall either:

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(a) apply this Standard; or else

(b) apply PBE IPSAS 3 as if the entity had neverstopped applying PBE Standards.

FRS47p6.1 4. When a Tier 1 entity does not elect to applyPBE FRS 47 in accordance with question 3 above, theentity shall nevertheless apply the disclosurerequirements in paragraphs 29.1 and 29.3 ofPBE FRS 47 in addition to the disclosurerequirements in PBE IPSAS 3.

Tier 2 entities

FRS47pRDR8.1 1. Subject to RDR 8.3,a Tier 21 entity that has notpreviously applied NZ IFRS PBE, NZ IFRS, NZ IFRSDiff Rep or NZ IFRS RDR in the immediatelypreceding period shall apply this PBE Standard in itsfirst set of financial statements under PBE StandardsRDR.

FRS47pRDR8.3 2. PBE FRS 47 does not apply when a Tier 2 entitypresented financial statements in its most recentprevious reporting period that contained a statementof compliance with PBE Standards.

FRS47pRDR8.4 3. Notwithstanding the requirements in question 1above, a Tier 2 entity that has applied PBE StandardsRDR in a previous period, but not in its most recentprevious financial statements, shall either applyPBE FRS 47 or else apply PBE Standards RDRretrospectively in accordance with PBE IPSAS 3 as ifthe entity had never stopped applying PBE StandardsRDR.

FRS47pRDR8.5 4. When a Tier 2 entity does not elect to apply PBE FRS47 in accordance with question 3 above, the entityshall nevertheless apply the disclosure requirementsin paragraphs RDR 29.2 and RDR 29.4 of PBE FRS 47in addition to the disclosure requirements in PBEIPSAS 3.

2. Disclosure

FRS47p25, 27 1. An entity’s first set of financial statements under PBEStandards shall include at least:

(a) three statements of financial position;

(b) two statements of comprehensive revenue andexpense;

(c) two separate statements of financialperformance (if presented);

(d) two cash flow statements;

(e) two statements of changes in net assets/equity;and

(f) related notes, including comparativeinformation for all statements presented,including the presentation of a comparative cashflow statement in accordance with PBE IPSAS 2.

FRS47p10, 26 2. An entity’s must present an opening statement offinancial position at the date of transition to PBEStandards, however this may be in the notes.

FRS47pRDR27.1 3. A Tier 2 not-for-profit entity is not required toprovide a statement of financial position as at thebeginning of the earliest comparative period inaccordance with paragraphs 1 and 2 above.

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FRS47pRDR27.2,

DV: FRS47pBC9

4. A Tier 2 not-for-profit entity is not required, but isencouraged where it would not be onerous, to presentcomparative information in its first set of financialstatements under PBE Standards, but is required topresent the opening statement of financial position(refer to the definition in paragraph 9 of PBE FRS 47.

FRS47pRDR27.3 5. If a Tier 2 not-for-profit entity does not providecomparative information in its first set of financialstatements under PBE Standards, the entity shouldattach a copy of the previous year’s financialstatements, and explain in the notes the significantdifferences in accounting policies applied between thetwo sets of financial statements.

FRS47p28 6. In any financial statements containing historicalsummaries or comparative information presented inaccordance with previous GAAP, entities shall:

(a) label the previous GAAP informationprominently as not being prepared inaccordance with PBE Standards; and

(b) disclose the nature of the main adjustments thatwould make it comply with PBE Standards. Anentity need not quantify those adjustments.

FRS47p29 7. Provide an explanation on how the transition fromprevious GAAP to PBE Standards affected itsreported financial position, statement ofcomprehensive revenue and expense, and cash flows.

FRS47p29.1 8. An entity that has applied PBE Standards in aprevious period shall disclose:

(a) the reason it stopped applying PBE Standards;and

(b) the reason it is resuming the application of PBEStandards.

FRS47pRDR29.2 9. A Tier 2 entity that has applied PBE Standards RDRin a previous period shall disclose:

(a) the reason it stopped applying PBE StandardsRDR; and

(b) the reason it is resuming the application of PBEStandards RDR.

FRS47p29.3 10. When an entity, in accordance with paragraph 6,does not elect to apply PBE FRS 47, the entity shallexplain the reasons for electing to apply PBEStandards as if it had never stopped applying PBEStandards.

FRS47pRDR29.4 11. When a Tier 2 entity, in accordance with paragraphRDR 8.4 does not elect to apply PBE FRS 47, theentity shall explain the reasons for electing to applyPBE Standards RDR as if it had never stoppedapplying PBE Standards RDR.

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3. Reconciliations

FRS47p30, RDR30.1 1. Disclose:

(a) reconciliations of net assets/equity reported inaccordance with previous GAAP to its netassets/equity in accordance with PBEStandards/PBE Standards RDR (as appropriate)for both of the following dates:

(i) the date of transition to PBEStandards/PBE Standards RDR; and

(ii) the end of the latest period presented inthe entity’s most recent annual financialstatements in accordance with previousGAAP.

(b) a reconciliation to its total comprehensiverevenue and expense in accordance with PBEStandards for the latest period in the entity’smost recent annual financial statements.

The starting point for this reconciliation shallbe total comprehensive revenue and expense inaccordance with previous GAAP for the sameperiod or, if an entity did not report such atotal, surplus or deficit under previous GAAP.

(c) if the entity recognised or reversed anyimpairment losses for the first time in preparingits opening statement of financial position underPBE Standards, the disclosures that PBE IPSAS21 and PBE IPSAS 26 would have required if theentity had recognised or reversed anyimpairment losses for the first time in preparingits opening statement of financial position underPBE Standards, beginning with the date oftransition to PBE Standards.

FRS47p31 2. Provide sufficient detail in the reconciliationsrequired by 5 above to enable users to understandthe material adjustments to the statement offinancial position and statement of comprehensiverevenue and expense.

FRS47p31 3. If an entity presented a statement of cash flowsunder its previous GAAP, it shall also explain thematerial adjustments to the statement of cash flows

FRS47p32 4. If an entity becomes aware of errors made underprevious GAAP, the reconciliations required by 3(a)and (b) above shall distinguish the correction ofthose errors from changes in accounting policies.

FRS47p33 5. Except as otherwise specified in PBE FRS47,PBE IPSAS 3 does not apply to the changes inaccounting policies an entity makes when it adoptsPBE Standards or to changes in those policies untilafter it presents its first set of financial statementsunder PBE Standards. Therefore, PBE IPSAS 3’srequirements for disclosures about changes inaccounting policies do not apply in an entity’s first setof financial statements under PBE Standards.

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FRS47p34 6. If during the period covered by its first set offinancial statements under PBE Standards an entitychanges its accounting policies or its use of theexemptions contained in FRS47, it shall:

(a) explain the changes between its first interimfinancial report under PBE Standards and itsfirst set of financial statements under PBEStandards, in accordance with paragraph 29;and

(b) update the reconciliations required byquestions 1(a) and (b) above.

FRS47p35 7. If an entity did not present financial statements forprevious periods, its first set of financial statementsunder PBE Standards shall disclose that fact.

4. Designation of Financial Assets or FinancialLiabilities

FRS47p36 1. When an entity has designated a previouslyrecognised financial asset or financial liability as afinancial asset or financial liability at fair valuethrough surplus or deficit or a financial asset asavailable for sale disclose:

(a) the fair value of financial assets or financialliabilities designated into each category at thedate of designation; and

(b) their classification and carrying amount in theprevious financial statements.

5. Use of Fair Value as Deemed Cost

FRS47p37 1. If an entity uses fair value in its opening statement offinancial position under PBE Standards as deemedcost for an item of property, plant and equipment, aninvestment property or an intangible asset, disclosefor each line item in the opening statement offinancial position under PBE Standards:

(a) The aggregate of those fair values; and

(b) The aggregate adjustment to the carryingamounts reported under previous GAAP.

6. Use of Deemed Cost for Investments inControlled Entities, Joint Ventures andAssociates

FRS47p38 1. If an entity uses a deemed cost in its openingstatement of financial position under PBE Standardsfor an investment in a controlled entity, jointlycontrolled entity or associate in its separate financialstatements (see paragraph C12), disclose:

(a) The aggregate deemed cost of thoseinvestments for which deemed cost is theirprevious GAAP carrying amount;

(b) The aggregate deemed cost of thoseinvestments for which deemed cost is fairvalue; and

(c) The aggregate adjustment to the carryingamounts reported under previous GAAP.

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Section C Industry-specific disclosures

C1 Construction contracts Y-NA-NM REF

1p132 1. Disclose in accounting policies:

11p50(b) (a) the methods used to determine the contractrevenue recognised in the period; and

11p50(c) (b) the methods used to determine the stage ofcompletion of contracts in progress.

11p50(a) 2. Disclose the amount of contract revenue recognisedas revenue in the period.

11p51 3. For construction contracts in progress at thereporting date, disclose:

(a) the aggregate amount of costs incurred andrecognised surpluses (less recognised deficits)to date;

(b) the amount of advances received; and

(c) the amount of retentions.

11p53 4. Present on the balance sheet:

(a) the gross amount due from customers forcontract work as an asset; and

(b) the gross amount due to customers for contractwork as a liability.

11pAG15 5. If the entity recognises revenue using the percentageof completion method for agreements that meet allthe criteria of PBE IPSAS 9 paragraph 28continuously as construction progresses, disclose:

(a) how it determines which agreements meet allthe criteria in PBE IPSAS 9 continuously asconstruction progresses;

(b) the amount of revenue arising from suchagreements in the period; and

(c) the methods used to determine the stage ofcompletion of agreements in progress.

11pAG16 6. For agreements described in question 5(a) above thatare in progress at the reporting date, disclose:

(a) the aggregate amount of costs incurred andrecognised surpluses; (less recognised deficits)to date; and

(b) the amount of advances received.

C2 Agriculture Y-NA-NM REF


27p39, 27p41,RDR39.1

1. Provide a quantified description of biological assetsthat distinguishes between consumable and bearerbiological assets. This may be accompanied by anarrative description.

DV, 27p42 2. In making the above disclosure, an entity isencouraged to distinguish between between mature

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and immature biological assets, as appropriate.Disclose the basis for making any such distinctions.

27p38 3. Disclose the aggregate gain or loss arising duringthe current period on initial recognition of biologicalassets and agricultural produce and from the changein fair value less costs to sell of biological assets.

27p44 4. Describe, if not disclosed elsewhere in informationpublished with the financial statements:

(a) the nature of activities involving each group ofbiological assets; and

(b) non-financial measures or estimates of thephysical quantities of:

(i) each group of the entity's biological assetsat the end of the period; and

(ii) the output of agricultural produce duringthe period.

27p45 5. Disclose the methods and significant assumptionsapplied in determining the fair value of each group ofagricultural produce at the point of harvest and eachgroup of biological assets.

27p46 6. Disclose the fair value less costs to sell of agriculturalproduce harvested during the period, determined atthe point of harvest.

27p47 7. Disclose:

(a) the existence and carrying amounts ofbiological assets whose title is restricted, andthe carrying amounts of biological assetspledged as security for liabilities;

(b) The nature and extent of restrictions on theentity’s use or capacity to sell biological assets;

(c) the amount of commitments for thedevelopment or acquisition of biological assets;and

(d) financial risk management strategies related toagricultural activity.

27p48 8. Present a reconciliation of changes in the carryingamount of biological assets between the beginningand the end of the current period. Include in thereconciliation:

27p48(a)

27pRDR48.2

(a) the gain or loss arising from changes in fairvalue less costs to sell, disclosed separately forbearer biological assets and consumablebiological assets;

(b) increases due to purchases;

(c) increases due to assets acquired through a non-exchange transaction;

(d) decreases attributable to sales and biologicalassets classified as held for sale (or included in adisposal group that is classified as held for sale)in accordance with PBE IFRS 5;

(e) decreases due to distributions at no charge or fora nominal charge;

(f) decreases due to harvest;

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(g) increases resulting from entity combinations;

(h) net exchange differences arising on thetranslation of financial statements into adifferent presentation currency and on thetranslation of a foreign operation into thereporting entity's presentation currency; and

(i) other changes.

27p53 This reconciliation should separately identify anybiological assets measured at cost loss accumulateddepreciation and any accumulated impairmentlosses in accordance with PBE IPSAS 27 paragraph34.

27pRDR48.1 9. A Tier 2 entity is not required to disclose thereconciliation specified in paragraph 8 for priorperiods.

DV, 27p49 10. When there is a production cycle of more than oneyear, an entity is encouraged to disclose, by group orotherwise, the amount of change in fair value lesscosts to sell included in surplus or deficit due tophysical changes and due to price changes.

2. Additional disclosures where fair value ofbiological assets cannot be measured reliably

27p52 1. When fair value of biological assets cannot bemeasured and cost less accumulated depreciation andimpairment is used, disclose:

(a) a description of the biological assets;

(b) an explanation of why fair value cannot bemeasured reliably;

(c) if possible, the range of estimates within whichfair value is highly likely to lie;

(d) the depreciation method used;

(e) the useful lives or the depreciation rates used;and

(f) the gross carrying amount and the accumulateddepreciation (aggregated with accumulatedimpairment losses) at the beginning and end ofthe period.

27p53 2. Disclose any gain or loss recognised on disposal of abiological asset measured at cost less anyaccumulated depreciation and any accumulatedamortisation.

27p53 3. Disclose details of the following amounts included innet surplus or deficit related to those biologicalassets:

(a) impairment losses;

(b) reversals of impairment losses; and

(c) depreciation.

27p54 4. If entity changes from cost to fair value during thecurrent period, disclose:

(a) a description of the biological assets;

(b) an explanation of why fair value has becomereliably measurable; and

(c) the effect of the change.

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C3 Service concession arrangements: Grantor Y-NA-NM REF

32p32 1. A grantor shall disclose the following information inrespect of service concession arrangements in eachreporting period:

(a) a description of the arrangement;

(b) significant terms of the arrangement that mayaffect the amount, timing and certainty of futurecash flows (for example, the period of theconcession, re-pricing dates and the basis onwhich re-pricing or renegotiation isdetermined);

(c) the nature and extent (for example, quantity,time period or amount, as appropriate) of:

(i) rights to use specified assets;

(ii) rights to expect the operator to providespecified services in relation to the serviceconcession arrangement;

(iii) the carrying amount of service concessionassets recognised as assets at during theend of the reporting period, includingexisting assets of the grantor reclassified asservice concession assets;

(iv) rights to receive specified assets at the endof the service concession arrangement;

(v) renewal and termination options;

(vi) other rights and obligations (for example,major overhauls of service concessionassets); and

(vii) obligations to provide the operator withaccess to service concession assets or otherrevenue-generating assets; and

(d) changes in the arrangement occurring duringthe period.

32p33 2. Provide the disclosure in 1) above individually foreach material service concession arrangement or inaggregate for each class of service concessionarrangements involving services of a similar nature.

This disclosure by class of service concessionarrangements is in addition to the disclosuresrequired in PBE IPSAS 17 and/or PBE IPSAS 31 thatrequired by paragraph 13 by class of assets. Serviceconcession assets within service concessionarrangements of a similar nature that are reported inaggregate may form a subset of a class of assetsdisclosed in accordance with PBE IPSAS 17 and/orPBE IPSAS 31 or may be included in more than oneclass of assets disclosed in accordance with PBEIPSAS 17 and/or PBE IPSAS 31. For example, for thepurposes of PBE IPSAS 17 paragraph 13 a toll bridgemay be grouped with included in the same class asother bridges. For the purposes of this paragraph, thetoll bridge may be grouped with included with serviceconcession arrangements reported in aggregate as tollroads.

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C4 Service concession arrangements: Operator Y-NA-NM REF

1. Scope

FRS45p26 Certain aspects and disclosures relating to some serviceconcession arrangements are already addressed by otherPBE Standards (e.g., PBE IPSAS 32 prescribes theaccounting by the grantor, PBE IPSAS 17 applies toacquisitions of items of PPE, PBE IPSAS 13 applies toleases of assets, and PBE IPSAS 31 applies to acquisitionsof intangible assets).

FRS45p26 However, a service concession arrangement may involveexecutory contracts that are not addressed in PBEStandards, unless the contracts are onerous, in which casePBE IPSAS 19 applies. Therefore, this IPSAS PBE45addresses additional disclosures of service concessionarrangements by operators.

FRS45p27 2. Disclosure

1. All aspects of a service concession arrangement shallbe considered in determining the appropriatedisclosures in the notes. An operator shall disclosethe following in each period:

(a) A description of the arrangement;

(b) Significant terms of the arrangement that mayaffect the amount, timing and certainty offuture cash flows (e.g., the period of theconcession, re-pricing dates and the basis uponwhich re-pricing or re-negotiation isdetermined);

(c) The nature and extent (e.g., quantity, timeperiod or amount as appropriate) of:

(i) Rights to use specified assets;

(ii) Obligations to provide or rights to expectprovision of services;

(iii) Obligations to acquire or build items ofproperty, plant and equipment;

(iv) Obligations to deliver or rights to receivespecified assets at the end of theconcession period;

(v) Renewal and termination options; and

(vi) Other rights and obligations (e.g., majoroverhauls);

(d) Changes in the arrangement occurring duringthe period; and

(e) How the service arrangement has beenclassified.

FRS45p29 2. Provide the disclosures in 1) above individually foreach service concession arrangement or inaggregate for each class of service concessionarrangements.

A class is a grouping of service concessionarrangements involving services of a similar nature(e.g., toll collections, telecommunications and watertreatment services).

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FRS45p28 3. Disclose the amount of revenue and surpluses ordeficits recognised in the period on exchangingconstruction services for a financial asset or anintangible asset.

C5 Accounting by a lessor Y-NA-NM REF

Leases are financial instruments and therefore thedisclosure requirements of PBE IPSAS 30 apply also toleases. Refer to Section A9.

1. Lessors – finance leases

13p60 1. Disclose:

(a) a reconciliation between the total grossinvestment in the lease at the balance sheet dateand the present value of minimum leasepayments receivable at the reporting date;

(b) the gross investment in the lease and the presentvalue of minimum lease payments receivable atthe reporting date, for each of the followingthree periods:

(i) not later than one year;

(ii) later than one year and not later than fiveyears; and


(c) unearned finance income;

(d) the unguaranteed residual values accruing to thebenefit of the lessor;

(e) the accumulated allowance for uncollectableminimum lease payments receivable;

(f) contingent rents recognised as revenue in theperiod; and

(g) a general description of the lessor's materialleasing arrangements.

13p61 As an indicator of growth in leasing activities, it isoften useful to also disclose the gross investment lessunearned revenue in new business added during theaccounting period, after deducting the relevantamounts for cancelled leases.

13p77 2. The disclosure requirements set out above also applyto sale and leaseback transactions. Any unique orunusual provisions of the agreements or terms of thesale and leaseback transactions should be separatelydisclosed.

2. Lessors – operating leases

13p69, 13pRDR69.1 1. Disclose:

(a) the future minimum lease payments under non-cancellable operating leases, in the aggregateand for each of the following three periods afterthe balance sheet date:

(i) not later than one year;

(ii) later than one year and not later than fiveyears;

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(b) total contingent rents recognised as revenueduring the period; and

(c) a general description of the lessor's significantleasing arrangements.

13p77 2. The disclosure requirements set out above also applyto sale and leaseback transactions. Any unique orunusual provisions of the agreements or terms of thesale and leaseback transactions should be separatelydisclosed.

13p78 3. Sale and leaseback transactions

Sale and leaseback transactions may trigger the separatedisclosure criteria in PBE IPSAS 1.

C6 Decommissioning, restoration and environmentalrehabilitation funds

Y-NA-NM REF

Appendix B of PBE IPSAS 19 explains how to treatexpected reimbursements from funds set up to meet thecosts of decommissioning plant (such as a nuclear plant)or equipment (such as cars) or in undertakingenvironmental restoration or rehabilitation (such asrectifying pollution of water or restoring mined land).

19pB6 1. A contributor discloses the nature of its interest in afund and any restrictions on access to the assets in thefund.

19pB7 2. When a contributor has an obligation to makepotential additional contributions that is notrecognised as a liability (refer to PBE IPSAS 19,paragraph 5), it makes the disclosures required byparagraph 100 of PBE IPSAS 19 (refer to SectionA5.22).

19pB8 3. When a contributor accounts for its interest in thefund in accordance with PBE IPSAS 19, paragraph4, itmakes the disclosures required by PBE IPSAS 19,paragraph 98c (refer to Section A5.16).

C7 Disclosure of financial information about theGeneral Government Sector

Y-NA-NM REF

1. Scope

DV, 22p12 PBE IPSAS 22 allows, but does not require, the disclosureof information about the GGS. Whether or not disclosureof information about the GGS will be made in financialstatements will be determined by the government or otherappropriate authority in each jurisdiction.

DV, 22p33 If financial statements consolidate different levels ofgovernment, further disaggregation of the consolidatedfinancial statements may occur to separately discloseinformation about the GGS at each level of government.

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DV, 22p35 2. Disclosures

1. Disclosures made in respect of the GGS shall includeat least the following:

(a) Assets by major class, showing separately theinvestment in other sectors;

(b) Liabilities by major class;

(c) Net assets/equity;

(d) Revenue by major class;

(e) Expenses by major class;

(f) Surplus or deficit;

(g) Other comprehensive revenue and expense;

(h) Total comprehensive revenue and expense;

(i) Cash flows from operating activities by majorclass;

(j) Cash flows from investing activities; and

(k) Cash flows from financing activities.

2. The manner of presentation of the GGS disclosuresshall be no more prominent than the government’sfinancial statements prepared in accordance with PBEStandards.

DV, 22p37 3. GGS disclosures may be made by way of:

(a) note disclosure;

(b) separate columns in the primary financialstatements; or

(c) otherwise, as considered appropriate in theirjurisdiction.

However, the manner of presentation of the GGSdisclosures will be no more prominent than theconsolidated financial statements prepared inaccordance with PBE Standards.

DV, 22p38 4. To assist users to understand the relationship offinancial information presented for the GGS to agovernment’s operations, statistical bases of financialreporting require total government expenses to bedisaggregated and disclosed by class, based on either

(a) the economic nature of the expenses; or

(b) by the Classification of Functions ofGovernment (COFOG).

DV, 22p38 5. Entities are neither required nor prohibited frompresenting disaggregated GGS information classifiedby economic nature or consistent with the COFOGclassification basis.

DV, 22p39 6. Make any additional disclosures that are necessary forusers to understand the nature of the informationpresented.

DV, 22p40, 41 7. Disclose:

(a) a list of the significant controlled entities thatare included in the GGS;

(b) any changes in those entities from the priorperiod; and

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(c) an explanation of the reasons why any suchentity that was previously included in the GGS isno longer included.

3. Reconciliation to the Consolidated FinancialStatements

DV, 22p43 1. Reconcile GGS disclosure to the consolidatedfinancial statements of the government, showingseparately the amount of the adjustment to eachequivalent item in those financial statements.

DV, 22p44 2. Present separately:

(a) the adjustment in the amount of the assetinvestment in PFC and PNFC sectors; and

(b) adjustments to each of the items disclosedseparately in accordance with paragraph 35.

DV, 22p44 3. In addition entities may, but are not required to,disclose separately the amount of the adjustment toeach item attributable to the PFC and the PNFCsectors.

This reconciliation will enable the government tobetter discharge its accountability obligations bydemonstrating the relationship between the amountsof each item for the GGS with the total amount of thatitem for the government.

4. Reconciliation to Statistical Bases of FinancialReporting

DV, 22p46 1. A reconciliation of the GGS disclosures in theconsolidated financial statements with the GGSdisclosures under statistical bases of financialreporting is not required. However, the inclusion ofsuch a reconciliation by way of note disclosure is notprecluded.

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Section D Suggested voluntary disclosures forPBEs

Y-NA-NM REF

DV, 1p24 1. Public sector entities are typically subject to budgetarylimits in the form of appropriations or budgetauthorisations (or equivalent), which may be given effectthrough authorising legislation. General purpose financialreporting by public sector entities may provide informationon whether resources were obtained and used inaccordance with the legally adopted budget.

1p24.1 2. Where an entity presents a comparison, in the financialstatements, of prospective financial information and actualfinancial information, such a comparison shall be inaccordance with the requirements of PBE IPSAS 1.

DV, 1p25 3. Entities are encouraged to present additional informationto assist users in assessing the performance of the entity,and its stewardship of assets, as well as making andevaluating decisions about the allocation of resources. Thisadditional information may include details about theentity’s outputs and outcomes in the form of:

(a) performance indicators;

(b) statements of service performance;

(c) programme reviews; and

(d) other reports by management about the entity’sachievements over the reporting period.

DV, 1p26 4. Entities are also encouraged to disclose information aboutcompliance with:

(a) legislative;

(b) regulatory; or

(c) other externally-imposed regulations.

DV, 1p26 5. When information about compliance is not included in thefinancial statements, it may be useful for a note to refer toany documents that include that information.

Knowledge of non-compliance is likely to be relevant foraccountability purposes, and may affect a user’sassessment of the entity’s performance and direction offuture operations. It may also influence decisions aboutresources to be allocated to the entity in the future.

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Section E Amendments to PBE Standards effective forannual periods beginning on or after 1 July 2017(early adoption permitted)

E1 Approved budget (Amendments to PBE IPSAS 1) Y-NA-NM REF

1p154.8 Effective date: Periods beginning on or after 1 January 2018.Earlier application is permitted.

1p21(e), 148.1 1. When the entity makes publicly available its approvedbudget, a comparison of budget and actual amounts eitheras a separate additional financial statement or as a budgetcolumn in the financial statements. When a public sectorentity has published general purpose prospective financialstatements, the following information shall be presented onthe face of the financial statements or as a separatestatement:

(a) a comparison of the prospective financial statementswith the historical financial statements being reported.Explanations for major variances shall be given.

1p21(e), 148.1 2. When the entity makes publicly available its approvedbudget, a comparison of budget and actual amounts eitheras a separate additional financial statement or as a budgetcolumn in the financial statements. When a not-for-profitentity has published general purpose prospective financialstatements, the following information shall be presented onthe face of the financial statements, as a separate statementor in the notes:

(a) a comparison of the prospective financial statementswith the historical financial statements being reported.Explanations for major variances shall be given.

E2 2016 Omnibus Amendments to PBE Standards

1. PBE IPSAS 17 Property, Plant and Equipment


17p108.5 1. If the amendments relating to bearer plants are applied for aperiod beginning before 1 January 2018, disclose that fact.

17p108.6 2. In the reporting period when the amendments toPBE IPSAS 17 from bearer plants are first applied, an entityneed not disclose the amount of the adjustment for eachfinancial line item affected, for the current period. Thisinformation shall be presented for each prior periodpresented.

2. PBE IPSAS 27 Agriculture


27p57.3 1. If the amendments relating to bearer plants are applied for aperiod beginning before 1 January 2018, disclose that fact.

27p57.4 2. In the reporting period when the amendments to PBEIPSAS 27 from bearer plants are first applied, an entity neednot disclose the amount of the adjustment for each financialline item affected, for the current period. This informationshall be presented for each prior period presented.

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E3 Impairment of revalued assets (Amendments to PBEIPSASs 21 and 26)

1. PBE IPSAS 21 Impairment of Non-Cash-GeneratingAssets


21p73(c),(d) 1. Disclose the following for each class of assets:

(a) the amount of impairment losses on revalued assetsrecognised in other comprehensive revenue andexpense during the period; and

(b) the amount of reversals of impairment losses onrevalued assets recognised in other comprehensiverevenue and expense during the period.

21p83.5 2. If these amendments are applied for a period beginningbefore 1 January 2019, disclose that fact.

2. PBE IPSAS 26 Impairment of Cash-GeneratingAssets


26p115(c),(d) 1. Disclose the following for each class of assets:

(a) the amount of impairment losses on revalued assetsrecognised in other comprehensive revenue andexpense during the period; and

(b) the amount of reversals of impairment losses onrevalued assets recognised in other comprehensiverevenue and expense during the period.

26p127.6 2. If these amendments are applied for a period beginningbefore 1 January 2019, disclose that fact.

E4 PBE IPSAS 34 Separate Financial Statements


34p32.1 1. If a PBE applies PBE IPSAS 34 for a period beginning before1 January 2019, it shall disclose that fact and apply PBEIPSAS 35, PBE IPSAS 36, PBE IPSAS 37 and PBE IPSAS 38at the same time.

34p19 2. Apply all applicable PBE Standards when providingdisclosures in the separate financial statements, includingthe requirements in questions 3 – 8 below.

34p20 3. When a controlling entity, in accordance with paragraph 5of PBE IPSAS 35, elects not to prepare consolidatedfinancial statements and instead prepares separate financialstatements, it shall disclose in those separate financialstatements:

(a) the fact that the financial statements are separatefinancial statements;

(b) that the exemption from consolidation has been used;

(c) the name of the entity whose consolidated financialstatements that comply with PBE Standards have beenproduced for public use;

(d) the address where those consolidated financialstatements are obtainable;

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(e) a list of significant investments in controlled entities,joint ventures and associates, including:

(i) the name of those controlled entities, jointventures and associates;

(ii) the jurisdiction in which those controlled entities,joint ventures and associates operate (if it isdifferent from that of the controlling entity); and

(iii) its proportion of the ownership interest held inthose entities and a description of how thatownership interest has been determined; and

(f) a description of the method used to account for thecontrolled entities, joint ventures and associates listedunder (e) above.

34pRDR20.1 4. A Tier 2 controlling entity that elects not to prepareconsolidated financial statements and instead preparesseparate financial statements shall disclose the methodsused to account for its investments in controlled entities,joint ventures and associates when the investment issignificant.

34p21 5. When an investment entity that is a controlling entity (otherthan a controlling entity covered by paragraph 20) prepares,in accordance with paragraph 10 of PBE IPSAS 34, separatefinancial statements as its only financial statements, it shalldisclose that fact. The investment entity shall also presentthe disclosures relating to investment entities required byPBE IPSAS 38 Disclosure of Interests in Other Entities.

34p22 6. If a controlling entity that is not itself an investment entity isrequired, in accordance with paragraph 56 of PBE IPSAS 35,to measure the investments of a controlled investmententity at fair value through surplus or deficit in accordancewith PBE IPSAS 29 and consolidate the other assets andliabilities and revenue and expenses of the controlledinvestment entity, it shall disclose that fact. The entity shallalso present the disclosures relating to investment entitiesrequired by PBE IPSAS 38.

34p23 7. When a controlling entity (other than a controlling entitycovered by paragraphs 20–21 of PBE IPSAS 34), or aninvestor with joint control of or significant influence over aninvestee, prepares separate financial statements, thecontrolling entity or investor shall identify the financialstatements prepared in accordance with PBE IPSAS 35,PBE IPSAS 36 or PBE IPSAS 37, to which they relate. Thecontrolling entity or investor shall also disclose in itsseparate financial statements:

34pRDR23.2 (a) the fact that the statements are separate financialstatements and the reasons why those statements areprepared, if not required by legislation or otherauthority;

(b) a list of significant controlled entities, joint venturesand associates, including:

(i) the name of those controlled entities, jointventures and associates;

(ii) the jurisdiction in which those controlled entities,joint ventures and associates operate (if differentfrom that of the controlling entity); and

(iv) its proportion of the ownership interest held inthose entities and a description of how thatownership interest has been determined; and

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(c) a description of the method used to account for thecontrolled entities, joint ventures and associates listedunder 7(b) above.

34pRDR23.1 8. A Tier 2 controlling entity or a Tier 2 investor with jointcontrol of, or significant influence over, an investee, thatprepares separate financial statements shall disclose themethods used to account for the investment when theinvestment is significant.

E5 PBE IPSAS 35 Consolidated Financial Statements


35p79.1 1. If a PBE applies PBE IPSAS 35 for a period beginning before1 January 2019, it shall disclose that fact and apply PBEIPSAS 34, PBE IPSAS 36, PBE IPSAS 37 and PBE IPSAS 38at the same time.

35p61 2. An investment entity shall disclose the information requiredby paragraph 15 of PBE IPSAS 38 about significantjudgements and assumptions made in determining that it isan investment entity unless it has all of the followingcharacteristics:

(a) it has obtained funds from more than one investor (seeparagraphs AG89–AG90 of PBE IPSAS 35);

(b) it has ownership interests in the form of equity orsimilar interests (see paragraphs AG91–AG92 ofPBE IPSAS 35); and

(c) it has more than one investment (see paragraphsAG96–AG97 of PBE IPSAS 35).

35p66 3. Notwithstanding the requirements of paragraph 33 ofPBE IPSAS 3, when PBE IFRS35 is first applied an entityneed only present the quantitative information required byparagraph 33(f) of PBE IPSAS 3 for the annual periodimmediately preceding the date of initial application of PBEIFRS 35(the “immediately preceding period”). An entity mayalso present this information for the current period or forearlier comparative periods, but is not required to do so.

E6 PBE IPSAS 36 Investments in Associates and JointVentures


36p51.1 1. If a PBE applies PBE IPSAS 36 for a period beginning before1 January 2019, it shall disclose that fact and applyPBE IPSAS 34, PBE IPSAS 35, PBE IPSAS 37 andPBE IPSAS 38 at the same time.

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E7 PBE IPSAS 37 Joint Arrangements


37p42.1 1. If a PBE applies PBE IPSAS 37 for a period beginning before1 January 2019, it shall disclose that fact and applyPBE IPSAS 34, PBE IPSAS 35, PBE IPSAS 36 andPBE IPSAS 38 at the same time.

1. Transition from proportionate consolidation to theequity method

37p34 1. If aggregating all previously proportionately consolidatedassets and liabilities results in negative net assets, an entityshall assess whether it has legal or constructive obligationsin relation to the negative net assets and, if so, the entityshall recognise the corresponding liability. If the entityconcludes that it does not have legal or constructiveobligations in relation to the negative net assets, it shall notrecognise the corresponding liability but it shall adjustaccumulated surplus or deficit at the beginning of theimmediately preceding period. The entity shall disclose:

(a) this fact; along with

(b) its cumulative unrecognised share of losses of its jointventures as at the beginning of the immediatelypreceding period and at the date at whichPBE IPSAS 37 is first applied.

37p35 2. Disclose a breakdown of the assets and liabilities that havebeen aggregated into the single line investment balance as atthe beginning of the immediately preceding period. Thatdisclosure shall be prepared in an aggregated manner for alljoint ventures for which an entity applies the transitionrequirements referred to in paragraphs 32–36 ofPBE IPSAS 37.

37p24.1 3. When an entity acquires an interest in a joint operation inwhich the activity of the joint operation constitutes abusiness, as defined in PBE IFRS 3 Business Combinations,it shall apply, to the extent of its share in accordance withparagraph 23, all of the principles on business combinationsaccounting in PBE IFRS 3, and other PBE Standards, thatdo not conflict with the guidance in PBE IPSAS 37 anddisclose the information that is required in those PBEStandards in relation to business combinations. This appliesto the acquisition of both the initial interest and additionalinterests in a joint operation in which the activity of the jointoperation constitutes a business.

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E8 PBE IPSAS 38 Disclosure of Interests in Other Entities


38p61.1 1. If a PBE applies PBE IPSAS 38 for a period beginning before1 January 2019, it shall disclose that fact.

1. General

38pAG3 1. An entity may aggregate disclosures required by PBE PSAS38 for interests in similar entities if aggregation is consistentwith the disclosure objective and the requirement inparagraph AG4, and does not obscure the informationprovided. An entity shall disclose how it has aggregated itsinterests in similar entities

38pAG4 2. An entity shall present information separately for interestsin:

(a) Controlled entities;

(b) Joint ventures;

(c) Joint operations;

(d) Associates; and

(e) Structured entities that are not consolidated.

2. Disclosing information about interests in otherentities

38p9(a) 1. Disclose the significant judgements and assumptions madein determining:

(a) the nature of its interest in another entity orarrangement;

(b) the type of joint arrangement in which it has aninterest (Section E8.3); and

(c) that it meets the definition of an investment entity, ifapplicable (Section E8.4, question 2); and

38p9(b) 2. Disclose information about interests in

(a) controlled entities (Sections E8.5);

(b) joint arrangements and associates (Section E8.7);

(c) structured entities that are not consolidated (SectionE8.8);

(d) non-quantifiable ownership interests (Section E8.9);and

(e) controlling interests acquired with the intention ofdisposal (Section E8.10).

38p10 3. If the disclosures required by PBE IPSAS 38, together withdisclosures required by other PBE Standards, do not meetthe objective in paragraph 1 of PBE IPSAS 38 disclosewhatever additional information is necessary to meet thatobjective.

38p11 4. Consider the level of detail necessary to satisfy thedisclosure objective in paragraph 1 of PBE IPSAS 38 andhow much emphasis to place on each of the requirements inPBE IPSAS 38. Aggregate or disaggregate disclosures so thatuseful information is not obscured by either the inclusion ofa large amount of insignificant detail or the aggregation ofitems that have different characteristics (see paragraphsAG2–AG6 of PBE IPSAS 38).

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3. Significant judgements and assumptions

38p12 1. Disclose the methodology used to determine:

(a) that the reporting entity has control of another entityas described in paragraphs 18 and 20 of PBE IPSAS 35;

(b) that the reporting entity has joint control of anarrangement or significant influence over anotherentity; and

(c) the type of joint arrangement (i.e., joint operation orjoint venture) when the arrangement has beenstructured through a separate vehicle.

38p13 2. The disclosures required by question 1 above shall be eithergiven in the financial statements or incorporated by cross-reference from the financial statements to some otherstatement that is available to users of the financialstatements on the same terms as the financial statementsand at the same time. Without the information incorporatedby cross-reference, the financial statements are incomplete.

38p14 3. To comply with question 1, disclose, for example, the factorsconsidered in determining that the reporting entity:

(a) controls a specific entity (or similar category ofentities) where the interest in the other entity is notevidenced by the holding of equity or debtinstruments;

(b) does not control another entity (or category ofentities) even though it holds more than half of thevoting rights of the other entity (or entities);

(c) controls another entity (or category of entities) eventhough it holds less than half of the voting rights of theother entity (or entities);

(d) is an agent or a principal (see paragraphs AG60–AG74of PBE IPSAS 35);

(e) does not have significant influence even though itholds 20 per cent or more of the voting rights ofanother entity; and

(f) It has significant influence even though it holds lessthan 20 per cent of the voting rights of another entity.

4. Investment entity status

38p4(b)(ii) 1. An investment entity that prepares financial statements inwhich all of its controlled entities are measured at fair valuethrough surplus or deficit in accordance with paragraph 56of PBE IPSAS 35 shall present the disclosures relating toinvestment entities required by questions 2 to 4 below.

38p15 2. When a controlling entity determines that it is aninvestment entity in accordance with PBE IPSAS 35, theinvestment entity shall disclose information aboutsignificant judgements and assumptions it has made indetermining that it is an investment entity. An investmententity is not required to disclose this information if it has allof the characteristics in paragraph 61 of PBE IPSAS 35.

38p16 3. When an entity becomes, or ceases to be, an investmententity, disclose

(a) the change of investment entity status; and

(b) the reasons for the change.

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38p16 4. An entity that becomes an investment entity shall disclosethe effect of the change of status on the financial statementsfor the period presented, including:

(a) the total fair value, as of the date of change of status, ofthe controlled entities that cease to be consolidated;

(b) the total gain or loss, if any, calculated in accordancewith paragraph 64 of PBE IPSAS 35; and

(c) the line item(s) in surplus or deficit in which the gainor loss is recognised (if not presented separately).

5. Interests in controlled entities

38p17(a) 1. Disclose information that enables users of the entity’sconsolidated financial statements to understand:

(a) the composition of the economic entity; and

(b) the interest that non-controlling interests have in theeconomic entity’s activities and cash flows (question 4below).

38p17(b) 2. Disclose information that enables users of the entity’sconsolidated financial statements to evaluate:

(a) the nature and extent of significant restrictions on itsability to access or use assets, and settle liabilities, ofthe economic entity (question 7 below);

(b) the nature of, and changes in, the risks associatedwith its interests in consolidated structured entities(questions 8-11 below);

(c) the consequences of changes in its ownership interestin a controlled entity that do not result in a loss ofcontrol (question 12 below); and

(d) the consequences of losing control of a controlledentity during the reporting period (question 13below).

38p18 3. When the financial statements of a controlled entity used inthe preparation of consolidated financial statements are asof a date or for a period that is different from that of theconsolidated financial statements (see paragraph 46 of PBEIPSAS 35), disclose:

(a) the date of the end of the reporting period of thefinancial statements of that controlled entity; and

(b) the reason for using a different date or period.

38p19 4. For each controlled entity that has non-controllinginterests that are material to the reporting entity, disclose:

(a) the name of the controlled entity;

(b) the domicile and legal form of the controlled entityand the jurisdiction in which it operates;

(c) the proportion of ownership interests held by non-controlling interests;

(d) the proportion of voting rights held by non-controlling interests, if different from the proportionof ownership interests held;

(e) the surplus or deficit allocated to non-controllinginterests of the controlled entity during the reportingperiod;

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(f) accumulated non-controlling interests of thecontrolled entity at the end of the reporting period;and

(g) summarised financial information about thecontrolled entity:

38pAG10(a) (i) Dividends or similar distributions paid to non-controlling interests; and

38pAG10(b) (ii) Summarised financial information about theassets, liabilities, surplus or deficit and cash flowsof the controlled entity that enables users tounderstand the interest that non-controllinginterests have in the economic entity’s activitiesand cash flows. That information might includebut is not limited to, for example:

(1) current assets;

(2) non-current assets;

(3) current liabilities;

(4) non-current liabilities;

(5) revenue;

(6) surplus or deficit; and

(7) total comprehensive revenue and expenses.

38pAG11 5. The summarised financial information required byquestion 4(g)(ii) above shall be the amounts before inter-entity eliminations.

38pAG16.1 6. When an interest in a controlled entity is classified as heldfor sale in accordance with PBE IFRS 5, the entity is notrequired to disclose summarised financial information forthat controlled entity.

38p20 7. Disclose:

(a) significant restrictions in binding arrangements (e.g.,statutory, contractual and regulatory restrictions) onthe entity’s ability to access or use the assets and settlethe liabilities of the economic entity, such as:

(i) those that restrict the ability of a controlling entityor its controlled entities to transfer cash or otherassets to (or from) other entities within theeconomic entity;

(ii) guarantees or other requirements that mayrestrict dividends and other capital distributionsbeing paid, or loans and advances being made orrepaid, to (or from) other entities within theeconomic entity;

(b) the nature and extent to which protective rights ofnon-controlling interests can significantly restrict theentity’s ability to access or use the assets and settle theliabilities of the economic entity (such as when acontrolling entity is obliged to settle liabilities of acontrolled entity before settling its own liabilities, orapproval of non-controlling interests is requiredeither to access the assets or to settle the liabilities of acontrolled entity); and

(c) the carrying amounts in the consolidated financialstatements of the assets and liabilities to which thoserestrictions apply.

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38p21 8. Disclose the terms of any binding arrangements that couldrequire the controlling entity or its controlled entities toprovide financial support to a consolidated structuredentity, including events or circumstances that could exposethe reporting entity to a loss (e.g., liquidity arrangementsor credit rating triggers associated with obligations topurchase assets of the structured entity or providefinancial support).

38p22 9. If during the reporting period a controlling entity or any ofits controlled entities has, without having an obligationunder a binding arrangement to do so, provided financial orother support to a consolidated structured entity (e.g.,purchasing assets of, or instruments issued by, thestructured entity), disclose:

(a) the type and amount of support provided, includingsituations in which the controlling entity or itscontrolled entities assisted the structured entity inobtaining financial support; and

(b) the reasons for providing the support.

38p23 10. If during the reporting period a controlling entity or any ofits controlled entities has, without having an obligationunder a binding arrangement to do so, provided financialor other support to a previously unconsolidated structuredentity and that provision of support resulted in the entitycontrolling the structured entity, the entity shall disclose anexplanation of the relevant factors in reaching thatdecision.

38p24 11. Disclose any current intentions to provide financial or othersupport to a consolidated structured entity, includingintentions to assist the structured entity in obtainingfinancial support.

38p25 12. Present a schedule that shows the effects on the netassets/equity attributable to owners of the controllingentity of any changes in its ownership interest in acontrolled entity that do not result in a loss of control.

38p26 13. If the reporting entity loses control of a controlled entityduring the reporting period, disclose:

(a) the gain or loss, if any, calculated in accordance withparagraph 52 of PBE IPSAS 35;

(b) the portion of that gain or loss attributable tomeasuring any investment retained in the formercontrolled entity at its fair value at the date whencontrol is lost; and

(d) the line item(s) in surplus or deficit in which the gainor loss is recognised (if not presented separately).

6. Interests in Unconsolidated Controlled Entities(Investment Entities)

38p27 1. An investment entity that, in accordance with PBE IPSAS 35is required to apply the exception to consolidation andinstead account for its investment in a controlled entity atfair value through surplus or deficit shall disclose that fact.

38p28 2. For each unconsolidated controlled entity, an investmententity shall disclose:

(a) the controlled entity’s name;

(b) the domicile and legal form of the controlled entity;

(c) the jurisdiction in which it operates; and

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(d) the proportion of ownership interest held by theinvestment entity and, if different, the proportion ofvoting rights held.

38p29 3. If an investment entity is the controlling entity of anotherinvestment entity, the controlling entity shall also providethe disclosures in question 2 above for investments that arecontrolled by its controlled investment entity. Thedisclosure may be provided by including, in the financialstatements of the controlling entity, the financial statementsof the controlled entity (or controlled entities) that containthe above information.

38p30 4. An investment entity shall disclose:

(a) the nature and extent of any significant restrictionsarising from binding arrangements (e.g., resultingfrom borrowing arrangements, regulatoryrequirements or contractual arrangements) on theability of an unconsolidated controlled entity totransfer funds to the investment entity in the form ofcash dividends, or similar distributions, or to repayloans or advances made to the unconsolidatedcontrolled entity by the investment entity; and

(b) any current commitments or intentions to providefinancial or other support to an unconsolidatedcontrolled entity, including commitments or intentionsto assist the controlled entity in obtaining financialsupport.

38p31 5. If, during the reporting period, an investment entity or anyof its controlled entities has, without having an obligationarising from a binding arrangement to do so, providedfinancial or other support to an unconsolidated controlledentity (e.g., purchasing assets of, or instruments issued by,the controlled entity or assisting the controlled entity inobtaining financial support), the entity shall disclose:

(a) the type and amount of support provided to eachunconsolidated controlled entity; and


38p32 6. An investment entity shall disclose the terms of any bindingarrangements that could require the entity or itsunconsolidated controlled entities to provide financialsupport to an unconsolidated, controlled, structured entity,including events or circumstances that could expose thereporting entity to a loss (e.g., liquidity arrangements orcredit rating triggers associated with obligations to purchaseassets of the structured entity or to provide financialsupport).

38p33 7. If during the reporting period an investment entity or any ofits unconsolidated controlled entities has, without having anobligation arising from a binding arrangement to do so,provided financial or other support to an unconsolidated,structured entity that the investment entity did not control,and if that provision of support resulted in the investmententity controlling the structured entity, the investmententity shall disclose an explanation of the relevant factors inreaching the decision to provide that support.

38p34 8. A controlling entity that controls an investment entity and isnot itself an investment entity, shall disclose in itsconsolidated financial statements, the information requiredby questions 1 – 7 above in respect of such unconsolidatedcontrolled entities.

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7. Interests in Joint Arrangements and Associates

38p35 1. Disclose information that enables users of the financialstatements to evaluate:

(a) the nature, extent and financial effects of interests injoint arrangements and associates, including thenature and effects of the relationship with the otherinvestors with joint control of, or significant influenceover, joint arrangements and associates (questions 2-9below); and

(b) the nature of, and changes in, the risks associatedwith its interests in joint ventures and associates(question 10 below).

38p36(a) 2. Disclose for each joint arrangement and associate that ismaterial to the reporting entity:

(a) the name of the joint arrangement or associate;

(b) the nature of the entity’s relationship with the jointarrangement or associate (by, for example, describingthe nature of the activities of the joint arrangement orassociate and whether they are strategic to the entity’sactivities);

(c) the domicile and legal form of the joint arrangement orassociate and the jurisdiction in which it operates; and

(d) the proportion of ownership interest or participatingshare held by the entity and, if different, theproportion of voting rights held (if applicable).

38p37 3. An investment entity need not provide the disclosuresrequired by questions 4 to 9 below in respect of its interestsin joint arrangements and associates.

38p36(b) 4. Disclose for each joint venture and associate that is materialto the reporting entity:

(a) whether the investment in the joint venture or associateis measured using the equity method or at fair value;

38pAG12 (b) summarised financial information about the jointventure or associate, including, but not necessarilylimited to:

(i) dividends or similar distributions received fromthe joint venture or associate:

(ii) current assets;

(iii) non-current assets;

(iv) current liabilities;

(v) non-current liabilities;

(vi) revenue;

(vii) tax expense;

(viii) pre-tax gain or loss recognised on the disposal ofassets or settlement of liabilities attributable todiscontinuing operations;

(ix) other comprehensive revenue and expense; and

(x) total comprehensive revenue and expense

(c) if the joint venture or associate is accounted for usingthe equity method, the fair value of its investment in thejoint venture or associate, if there is a quoted marketprice for the investment.

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38pAG13 5. In addition to the summarised financial informationrequired by question 3(b) above, disclose for each jointventure that is material to the reporting entity the amountof:

(a) cash and cash equivalents included in question 3(b)(ii)above;

(b) current financial liabilities (excluding taxes andtransfers payable, payables under exchangetransactions and provisions) included in question3(b)(iv) above;

(c) non-current financial liabilities (excluding taxes andtransfers payable, payables under exchangetransactions and provisions) included in question3(b)(v) above;

(d) depreciation and amortisation;

(e) interest revenue;

(f) interest expense; and

(g) income tax expense.

38pAG14 6. The summarised financial information presented inaccordance with questions 4(b) and 5 above shall be theamounts included in the PBE Standard financialstatements of the joint venture or associate (and not theentity’s share of those amounts). If the entity accounts forits interest in the joint venture or associate using the equitymethod:

(a) the amounts included in the PBE Standard financialstatements of the joint venture or associate shall beadjusted to reflect adjustments made by the entitywhen using the equity method, such as fair valueadjustments made at the time of acquisition andadjustments for differences in accounting policies.

(b) a reconciliation shall be provided of the summarisedfinancial information presented to the carryingamount of its interest in the joint venture or associate

38pAG15 7. An entity may present the summarised financialinformation required by questions 4(b) and 5 above on thebasis of the joint venture's or associate's financialstatements if:

(a) the entity measures its interest in the joint venture orassociate at fair value in accordance with PBE IPSAS36; and

(b) the joint venture or associate does not prepare PBEStandard financial statements and preparation onthat basis would be impracticable or cause undue cost.

In that case, the entity shall disclose the basis on which thesummarised financial information has been prepared.

38p36(c), AG16 8. Disclose the following financial information about theentity’s investments in joint ventures and associates thatare accounted for using the equity method that are notindividually material:

(a) in aggregate for all individually immaterial jointventures:

(i) the carrying amount of its interests in allindividually immaterial joint ventures;

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(ii) separately the aggregate amount of its share ofthose joint ventures’:

(1) surplus or deficit from continuingoperations.

(2) post-tax surplus or deficit from discontinuedoperations.

(3) other comprehensive revenue or expense.

(4) total comprehensive revenue or expense.

(b) in aggregate for all individually immaterialassociates:

(i) the carrying amount of its interests in allindividually immaterial associates;

(ii) separately the aggregate amount of its share ofthose associates’:

(1) surplus or deficit from continuingoperations.

(2) post-tax surplus or deficit from discontinuedoperations.

(3) other comprehensive revenue or expense.

(4) total comprehensive revenue or expense.

This aggregated information is to be disclosedseparately from the aggregated information on jointventures.

38pAG16.1 9. When an entity’s interest in a joint venture or an associate(or a portion of its interest in a joint venture or anassociate) is classified as held for sale in accordance withPBE IFRS 5, the entity is not required to disclosesummarised financial information for that controlledentity, joint venture or associate in accordance withparagraphs AG10–AG16.

38p38 10. Disclose:

(a) the nature and extent of any significant restrictions(e.g., resulting from borrowing arrangements,regulatory requirements or binding arrangementsbetween investors with joint control of, or significantinfluence over, a joint venture or an associate) on theability of joint ventures or associates to transfer fundsto the entity in the form of cash dividends or similardistributions, or to repay loans or advances made by theentity;

(b) when the financial statements of a joint venture orassociate used in applying the equity method are as of adate or for a period that is different from that of theentity:

(i) the date of the end of the reporting period of thefinancial statements of that joint venture orassociate; and

(ii) the reason for using a different date or period; and

(c) the unrecognised share of losses of a joint venture orassociate, both for the reporting period andcumulatively, if the entity has stopped recognising itsshare of losses of the joint venture or associate whenapplying the equity method.

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38p39 11. Disclose:

(a) commitments relating to joint ventures separately fromthe amount of other commitments as specified inparagraphs AG17–AG19; and

(b) in accordance with PBE IPSAS 19 Provisions,Contingent Liabilities and Contingent Assets, unless theprobability of loss is remote, contingent liabilitiesincurred relating to interests in joint ventures orassociates (including its share of contingent liabilitiesincurred jointly with other investors with joint controlof, or significant influence over, the joint ventures orassociates), separately from the amount of othercontingent liabilities.

8. Interests in Structured Entities that are notConsolidated

38p40 1. Disclose information that enables users of its financialstatements:

(a) to understand the nature and extent of its interests instructured entities that are not consolidated (questions4-7); and

(b) to evaluate the nature of, and changes in, the risksassociated with its interests in structured entities thatare not consolidated (questions 8-10).

38p41 2. The information required by question 1(b) above includesinformation about an entity’s exposure to risk frominvolvement that it had with structured entities that are notconsolidated in previous periods (e.g., sponsoring thestructured entity), even if the entity no longer has anyinvolvement by way of binding arrangement with thestructured entity at the reporting date.

38p42 3. An investment entity need not provide the disclosuresrequired by question 1 above for a structured entity that itcontrols but which is not consolidated, and for which itpresents the disclosures required by paragraphs 27–33 ofPBE IPSAS 38.

38p43 4. Disclose qualitative and quantitative information aboutinterests in structured entities that are not consolidated,including, but not limited to, the nature, purpose, size andactivities of the structured entity and how the structuredentity is financed.

38pRDR43.1 5. A Tier 2 entity shall disclose information about its interestsin structured entities, including, but not limited to, thenature, purpose, size and activities of the structured entityand how the structured entity is financed.

38p44 6. If an entity has sponsored a structured entity that is notconsolidated for which it does not provide informationrequired by question 8 below (e.g., because it does not havean interest in the entity at the reporting date), the entityshall disclose:

(a) how it has determined which structured entities it hassponsored;

(b) revenue from those structured entities during thereporting period, including a description of the typesof revenue presented; and

(c) the carrying amount (at the time of transfer) of allassets transferred to those structured entities duringthe reporting period.

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38p45 7. Present the information in questions 6(b) and (c) (above) intabular format, unless another format is more appropriate,and classify sponsoring activities into relevant categories(see paragraphs AG2–AG6).

38p46 8. Disclose in tabular format, unless another format is moreappropriate, a summary of:

(a) the carrying amounts of the assets and liabilitiesrecognised in the financial statements relating tointerests in structured entities that are notconsolidated;

(b) the line items in the statement of financial position inwhich those assets and liabilities are recognised;

(c) the amount that best represents the entity’s maximumexposure to loss from its interests in structured entitiesthat are not consolidated, including how the maximumexposure to loss is determined; and

(d) if an entity cannot quantify its maximum exposure toloss from its interests in structured entities that are notconsolidated it shall disclose:

(i) that fact; and

(ii) the reasons; and

(e) a comparison of the carrying amounts of the assetsand liabilities of the entity that relate to its interests instructured entities that are not consolidated and theentity’s maximum exposure to loss from those entities.

38p47 9. If during the reporting period an entity has, without havingan obligation under a binding arrangement to do so,provided financial or other support to a structured entitythat is not consolidated in which it previously had orcurrently has an interest (for example, purchasing assets of,or instruments issued by, the structured entity), the entityshall disclose:

(a) the type and amount of support provided, includingsituations in which the entity assisted the structuredentity in obtaining financial support; and


38p48 10. Disclose any current intentions to provide financial or othersupport to a structured entity that is not consolidated,including intentions to assist the structured entity inobtaining financial support. Such current intentions includeintentions to provide support as a result of obligationsunder binding arrangements and intentions to providesupport where the entity has no obligation under a bindingarrangement.

38pAG24 11. In addition to the information required by questions 8 – 10above, disclose additional information that is necessary tomeet the disclosure objective in question 1(b) above.Examples of types of additional information are providedin paragraph AG25 of PBE IPSAS 38.

9. Non-quantifiable Ownership Interests

38p49 1. Disclose information that enables users of financialstatements to understand the nature and extent of any non-quantifiable ownership interests in other entities.

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38p50 2. To the extent that this information has not already beenprovided in accordance with PBE IPSAS 38, disclose, inrespect of each non-quantifiable ownership interest that ismaterial to the reporting entity:

(a) the name of the entity in which it has an ownershipinterest; and

(b) the nature of its ownership interest in the entity.

10. Controlling Interests Acquired with the Intention ofDisposal

38p51 1. An entity, other than an investment entity, shall discloseinformation regarding its interest in a controlled entitywhen, at the point at which control arose, the entity had theintention of disposing of that interest and, at the reportingdate, it has an active intention to dispose of that interest.

38p55 2. Disclose the following information in the notes in respect ofeach controlled entity referred to in question 1 above:

(a) the name of the controlled entity and a description of itskey activities;

(b) the rationale for the acquisition of the controllinginterest and the factors considered in determining thatcontrol exists;

(c) the impact on the consolidated financial statements ofconsolidating the controlled entity including the effecton assets, liabilities, revenue, expenses and netassets/equity; and

(d) the current status of the approach to disposal, includingthe expected method and timing of disposal.

38p56 3. The disclosures required by question 2 shall be provided ateach reporting date until the entity disposes of thecontrolling interest or ceases to have the intention todispose of that interest.

38p56 4. In the period in which the entity disposes of the controllinginterest or ceases to have the intention to dispose of thecontrolling interest it shall disclose:

(a) the fact that there has been a disposal or change ofintention; and

(b) the effect of the disposal or change of intention on theconsolidated financial statements.

38p57 5. Where other disclosures required by PBE IPSAS 38 or otherPBE Standards would provide information relevant toquestion 2 – 4 above a cross-reference to those otherdisclosures shall be provided.

11. Transitional Provisions

38p58 1. An entity is encouraged to provide information required byPBE IPSAS 38 earlier than annual periods beginning on orafter 1 January 2019. Providing some of the disclosuresrequired by PBE IPSAS 38 does not compel the entity tocomply with all the requirements of PBE IPSAS 38 or toapply PBE IPSAS 34, PBE IPSAS 35, PBE IPSAS 36, andPBE IPSAS 37 early

38p59 2. The disclosure requirements of PBE IPSAS 38 need not beapplied for any period presented that begins before theannual period immediately preceding the first annual periodfor which PBE IPSAS 38 is applied.

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38p60 3. The disclosure requirements of Sections E8 – E10 above andthe corresponding guidance in paragraphs AG20– AG25 ofPBE IPSAS 38 need not be applied for any period presentedthat begins before the first annual period for whichPBE IPSAS 38 is applied.

E9 PBE IPSAS 39 Employee Benefits

39p176 Effective date: Periods beginning on or after 1 January 2019.Earlier application is permitted.

39p176 1. If a PBE applies PBE IPSAS 39 for a period beginning before1 January 2019, it shall disclose that fact.

1. Short-Term Employee Benefits

39p25 1. Although PBE IPSAS 39 does not require specificdisclosures about short-term employee benefits, otherStandards may require disclosures. For example, PBE IPSAS20 requires disclosures of the aggregate remuneration of keymanagement personnel and PBE IPSAS 1 Presentation ofFinancial Statements requires the disclosure of informationabout employee benefits’ expense.

2. Multi-Employer plans

39p33(b) 1. If an entity participates in a multi-employer defined benefitplan, unless question 2 applies, disclose the informationrequired by paragraphs 137–150 (excluding paragraph150(d)). See checklist below for defined benefit plans.

39p34(b), p36 2. When sufficient information is not available to use definedbenefit accounting for a multi-employer defined benefitplan, disclose the information required by paragraph 150.See checklist below for multi-employer defined benefitplans.

3. Defined Benefit Plans that Share Risks betweenEntities under Common Control

39p42 1. There are cases where a controlling entity and one or morecontrolled entities participate in a defined benefit plan.Unless there is a contractual agreement, bindingarrangement, or stated policy, as specified in paragraph 41,the controlled entity accounts on a defined contributionbasis and the controlling entity accounts on a definedbenefit basis in its consolidated financial statements. Thecontrolled entity also:

(a) discloses that it accounts on a defined contributionbasis in its separate financial statements;

(b) provides details of the controlling entity;

(c) states that, in the controlling entity’s consolidatedfinancial statements, accounting is on a defined benefitbasis; and

(d) makes the disclosures required in paragraph 151.

39p43 2. Participation in such a plan is a related party transaction foreach individual entity. An entity shall therefore, in itsseparate or individual financial statements, disclose theinformation required by paragraph 151.

4. Defined contribution Plans

39p55 1. Disclose the amount recognised as an expense for definedcontribution plans.

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39p56 2. Where required by PBE IPSAS 20, disclose informationabout contributions to defined contribution plans for keymanagement personnel.

5. Defined Benefit Plans

39p137 1. An entity shall disclose information that:

(a) explains the characteristics of its defined benefit plansand risks associated with them (see paragraph 141);

(b) identifies and explains the amounts in its financialstatements arising from its defined benefit plans (seeparagraphs 142–146); and

(c) describes how its defined benefit plans may affect theamount, timing and uncertainty of the entity’s futurecash flows (see paragraphs 147–149).

38p138 2. To meet the objectives in question 1 above, consider all thefollowing:

(a) the level of detail necessary to satisfy the disclosurerequirements;

(b) how much emphasis to place on each of the variousrequirements;

(c) how much aggregation or disaggregation toundertake; and

(d) whether users of financial statements need additionalinformation to evaluate the quantitative informationdisclosed.

39p139 3. If the disclosures provided in accordance with therequirements in PBE IPSAS 39 and other Standards areinsufficient to meet the objectives in question 1 above,disclose additional information necessary to meet thoseobjectives. For example, an entity may present an analysisof the present value of the defined benefit obligation thatdistinguishes the nature, characteristics and risks of theobligation. Such a disclosure could distinguish:

(a) between amounts owing to active members, deferredmembers, and pensioners;

(b) between vested benefits and accrued but not vestedbenefits; and

(c) between conditional benefits, amounts attributable tofuture salary increases and other benefits.

39p140 4. Assess whether all or some disclosures should bedisaggregated to distinguish plans or groups of plans withmaterially different risks. For example, an entity maydisaggregate disclosure about plans showing one or moreof the following features:

(a) different geographical locations;

(b) different characteristics such as flat salary pensionplans, final salary pension plans or post-employmentmedical plans;

(c) different regulatory environments;

(d) different reporting segments; and

(e) different funding arrangements (e.g., whollyunfunded, wholly or partly funded).

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Characteristics of Defined Benefit Plans and RisksAssociated with them

39p141(a) 1. Disclose information about the characteristics of its definedbenefit plans, including:

(a) the nature of the benefits provided by the plan (e.g.,final salary defined benefit plan or contribution-basedplan with guarantee);

(b) a description of the regulatory framework in which theplan operates, for example the level of any minimumfunding requirements, and any effect of the regulatoryframework on the plan, such as the asset ceiling (seeparagraph 66); and

(c) a description of any other entity’s responsibilities forthe governance of the plan, for exampleresponsibilities of trustees or of management of theplan.

39p141(b) 2. Disclose a description of the risks to which the plan exposesthe entity, focused on any unusual, entity-specific or plan-specific risks, and of any significant concentrations of risk.For example, if plan assets are invested primarily in oneclass of investments, e.g., property, the plan may expose theentity to a concentration of property market risk.

39p141(c) 3. Disclose a description of any plan amendments,curtailments and settlements.

39p141(d) 4. Disclose the basis on which the discount rate has beendetermined

39p175 5. In financial statements for periods beginning before 1January 2019, comparative information need not bepresented for the disclosures required by questions 1-4above about the sensitivity of the defined benefit obligation.

Explanation of Amounts in the Financial Statements

39p142 1. Provide a reconciliation from the opening balance to theclosing balance for each of the following, if applicable:

(a) the net defined benefit liability (asset), showingseparate reconciliations for:

(i) plan assets;

(ii) the present value of the defined benefitobligation; and

(iii) the effect of the asset ceiling.

(b) any reimbursement rights. Also describe therelationship between any reimbursement right and therelated obligation.

39p143 2. Each reconciliation listed in question 1 above shall showeach of the following, if applicable:


(b) interest revenue or expense;

(c) remeasurements of the net defined benefit liability(asset), showing separately:

(i) the return on plan assets, excluding amountsincluded in interest in (b);

(ii) actuarial gains and losses arising from changesin demographic assumptions (see paragraph78(a));

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(iii) actuarial gains and losses arising from changesin financial assumptions (see paragraph 78(b));

(iv) changes in the effect of limiting a net definedbenefit asset to the asset ceiling, excludingamounts included in interest in (b); and

(v) how the maximum economic benefit availablewas determined, i.e., whether those benefitswould be in the form of refunds, reductions infuture contributions or a combination of both;

(d) past service cost and gains and losses arising fromsettlements. As permitted by paragraph 102, pastservice cost and gains and losses arising fromsettlements need not be distinguished if they occurtogether;

(e) the effect of changes in foreign exchange rates;

(f) contributions to the plan, showing separately those bythe employer and by plan participants;

(g) payments from the plan, showing separately theamount paid in respect of any settlements; and

(h) the effects of public benefit entity combinations anddisposals.

39pRDR143.1 3. A Tier 2 entity shall disclose for each defined benefit plan:

(a) remeasurements of the net defined benefit liability(asset);

(b) contributions to the plan; and

(c) payments from the plan.

39p144, RDR144.1 4. Disaggregate the fair value of the plan assets into classesthat distinguish the nature and risks of those assets,subdividing each class of plan asset into those that have aquoted market price in an active market and those that donot. For example, and considering the level of disclosurediscussed in paragraph 138, an entity could distinguishbetween:

(a) cash and cash equivalents;

(b) equity instruments (segregated by industry type,company size, geography etc.);

(c) debt instruments (segregated by type of issuer, creditquality, geography etc.);

(d) real estate (segregated by geography etc.);

(e) derivatives (segregated by type of underlying risk inthe contract, for example, interest rate contracts,foreign exchange contracts, equity contracts, creditcontracts, longevity swaps etc.);

(f) investment funds (segregated by type of fund);

(g) asset-backed securities; and

(h) structured debt

39p145 5. Disclose the fair value of the entity’s own transferablefinancial instruments held as plan assets, and the fair valueof plan assets that are property occupied by, or other assetsused by, the entity

39p146, RDR146.1 6. Disclose the significant actuarial assumptions used todetermine the present value of the defined benefit obligation(see paragraph 78). Such disclosure shall be in absolute

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terms (e.g., as an absolute percentage, and not just as amargin between different percentages and othervariables).

39p146 7. When an entity provides disclosures of significant actuarialassumptions in total for a grouping of plans, it shallprovide such disclosures in the form of weighted averagesor relatively narrow ranges.

Amount, Timing and Uncertainty of Future Cash Flows

39p147 1. Disclose

(a) a sensitivity analysis for each significant actuarialassumption (as disclosed under paragraph 146) as ofthe end of the reporting period, showing how thedefined benefit obligation would have been affected bychanges in the relevant actuarial assumption thatwere reasonably possible at that date;

(b) the methods and assumptions used in preparing thesensitivity analyses required by (a) and the limitationsof those methods; and

(c) changes from the previous period in the methods andassumptions used in preparing the sensitivityanalyses, and the reasons for such changes.

39p148 2. Disclose a description of any asset-liability matchingstrategies used by the plan or the entity, including the use ofannuities and other techniques, such as longevity swaps, tomanage risk.

39p149, RDR149.1 3. To provide an indication of the effect of the defined benefitplan on the entity’s future cash flows, disclose:

(a) a description of any funding arrangements and fundingpolicy that affect future contributions;

(b) the expected contributions to the plan for the nextreporting period; and

(c) information about the maturity profile of the definedbenefit obligation. This will include the weightedaverage duration of the defined benefit obligation andmay include other information about the distributionof the timing of benefit payments, such as a maturityanalysis of the benefit payments.

Multi-Employer Plans

39p150 1. If an entity participates in a multi-employer defined benefitplan, it shall disclose:

(a) a description of the funding arrangements, includingthe method used to determine the entity’s rate ofcontributions and any minimum funding requirements;

(b) A description of the extent to which the entity can beliable to the plan for other entities’ obligations underthe terms and conditions of the multi-employer plan;and

(c) a description of any agreed allocation of a deficit orsurplus on:

(i) wind-up of the plan; or

(ii) the entity’s withdrawal from the plan; and

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(d) if the entity accounts for that plan as if it were a definedcontribution plan in accordance with paragraph 34, itshall disclose the following, in addition to theinformation required by (a)–(c) and instead of theinformation required by paragraphs 141–149:

(i) the fact that the plan is a defined benefit plan;

(ii) the reason why sufficient information is notavailable to enable the entity to account for theplan as a defined benefit plan;

(iii) the expected contributions to the plan for the nextreporting period;

39pRDR150.1 (iv) information about any deficit or surplus in theplan that may affect the amount of futurecontributions, including the basis used todetermine that deficit or surplus and theimplications, if any, for the entity; and

(v) an indication of the level of participation of theentity in the plan compared with otherparticipating entities. Examples of measures thatmight provide such an indication include theentity’s proportion of the total contributions tothe plan or the entity’s proportion of the totalnumber of active members.

Defined Benefit Plans that Share Risks between EntitiesUnder Common Control

39p151 1. If an entity participates in a defined benefit plan that sharesrisks between entities under common control, it shalldisclose:

(a) the contractual agreement or stated policy for chargingthe net defined benefit cost or the fact that there is nosuch policy;

(b) the policy for determining the contribution to be paidby the entity;

(c) if the entity accounts for an allocation of the netdefined benefit cost as noted in paragraph 41, all theinformation about the plan as a whole required byparagraphs 137–149.

(d) if the entity accounts for the contribution payable forthe period as noted in paragraph 41, the informationabout the plan as a whole required by paragraphs137–139, 141, 144–146 and 149(a) and (b).

39p152 2. The information required by paragraph 1(c) and (d) abovecan be disclosed by cross-reference to disclosures inanother group entity’s financial statements if:

(a) that group entity’s financial statements separatelyidentify and disclose the information required aboutthe plan; and

(b) that group entity’s financial statements are availableto users of the financial statements on the same termsas the financial statements of the entity and at thesame time as, or earlier than, the financial statementsof the entity.

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6. Disclosure Requirements in other Standards

39p153 1. Where required by PBE IPSAS 20, disclose informationabout:

(a) related party transactions with post-employmentbenefit plans; and

(b) post-employment benefits for key managementpersonnel.

39p154 2. Where required by PBE IPSAS 19, disclose informationabout contingent liabilities arising from post-employmentbenefit obligations.

7. Other Long-Term Employee Benefits

39p161 1. Although PBE IPSAS 39 does not require specificdisclosures about other long-term employee benefits, otherStandards may require disclosures. For example,PBE IPSAS 20 requires disclosures about employee benefitsfor key management personnel. PBE IPSAS 1 requiresdisclosure of employee benefits expense.

8. Termination Benefits

39p174 1. Although PBE IPSAS 39 does not require specificdisclosures about termination benefits, other Standards mayrequire disclosures. For example, PBE IPSAS 20 requiresdisclosures about employee benefits for key managementpersonnel. PBE IPSAS 1 requires disclosure of employeebenefits expense.

E10 PBE IFRS 9 Financial Instruments

IFRS9p7.1.1 Effective date: Periods beginning on or after 1 January 2021.Earlier application is permitted.

IFRS9p7.1.1 1. If an entity applies PBE IFRS 9 for a period beginningbefore 1 January 2021, it shall disclose that fact and apply allthe requirements of PBE IFRS 9 at the same time. It shallalso, at the same time, apply the amendments inAppendix D.

1. Initial Application of PBE IFRS 9

30p49I 1. In the reporting period that includes the date of initialapplication of PBE IFRS 9, disclose the followinginformation for each class of financial assets and financialliabilities as at the date of initial application:

(a) the original measurement category and carryingamount determined in accordance with PBE IPSAS 29;

(b) the new measurement category and carrying amountdetermined in accordance with PBE IFRS 9;

(c) the amount of any financial assets and financialliabilities in the statement of financial position thatwere previously designated as measured at fair valuethrough surplus or deficit but are no longer sodesignated, distinguishing between:

(i) those that PBE IFRS 9 requires an entity toreclassify; and

(ii) those that an entity elects to reclassify at the dateof initial application.

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30p49J 2. In the reporting period that includes the date of initialapplication of PBE IFRS 9, disclose qualitative informationto enable users to understand:

(a) how the classification requirements in PBE IFRS 9were applied to those financial assets whoseclassification has changed as a result of applyingPBE IFRS 9; and

(b) the reasons for any designation or de-designation offinancial assets or financial liabilities as measured atfair value through surplus or deficit at the date ofinitial application.

30p49K 3. In the reporting period that the classification andmeasurement requirements for financial assets inPBE IFRS 9 are first applied, present the disclosures set outin paragraphs 42L–42O of PBE IPSAS 30 as required byparagraph 7.2.15 of PBE IFRS 9.

30p49L 4. When required by question 3 above, disclose the changes inthe classifications of financial assets and financialliabilities as at the date of initial application of PBE IFRS 9,showing separately:

(a) the changes in the carrying amounts on the basis oftheir measurement categories in accordance withPBE IPSAS 29 (i.e., not resulting from a change inmeasurement attribute on transition to PBE IFRS 9);and

(b) the changes in the carrying amounts arising from achange in measurement attribute on transition toPBE IFRS 9.

The disclosures in this paragraph need not be made afterthe annual reporting period in the classification andmeasurement requirements for financial assets inPBE IFRS 9 are initially applied.

30p49M 5. When required by question 3 above, disclose the followingfor financial assets and financial liabilities that have beenreclassified so that they are measured at amortised costand, in the case of financial assets, that have beenreclassified out of fair value through surplus or deficit sothat they are measured at fair value through othercomprehensive revenue and expense, as a result of thetransition to PBE IFRS 9:

(a) the fair value of the financial assets or financialliabilities at the end of the reporting period; and

(b) the fair value gain or loss that would have beenrecognised in surplus or deficit or other comprehensiverevenue and expense during the reporting period if thefinancial assets or financial liabilities had not beenreclassified.

The disclosures in this paragraph need not be made afterthe annual reporting period in the classification andmeasurement requirements for financial assets inPBE IFRS 9 are initially applied.

30p49N 6. When required by question 3 above, disclose the followingfor financial assets and financial liabilities that have beenreclassified out of the fair value through surplus or deficitcategory as a result of the transition to PBE IFRS 9:

(a) the effective interest rate determined on the date ofinitial application; and

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(b) the interest revenue or expense recognised.

7. If the fair value of a financial asset or a financial liability istreated as the new gross carrying amount at the date ofinitial application (see paragraph 7.2.11 of PBE IFRS 9),the disclosures in question 6 shall be made for eachreporting period until derecognition. Otherwise, thedisclosures in this paragraph need not be made after theannual reporting period in which the classification andmeasurement requirements for financial assets inPBE IFRS 9 are initially applied.

30p49O 8. The disclosures presented in accordance with questions 3-7above, and the disclosures in paragraph 29 ofPBE IPSAS 30, must permit reconciliation between:

(a) the measurement categories presented in accordancewith PBE IPSAS 29 and PBE IFRS 9; and

(b) the class of financial instrument,

as at the date of initial application.

30p49P 9. On the date of initial application of Section 5.5 ofPBE IFRS 9, disclose information that would permit thereconciliation of:

(a) the ending impairment allowances in accordance withPBE IPSAS 29 and the provisions in accordance withPBE IPSAS 19; to

(b) the opening loss allowances determined in accordancewith PBE IFRS 9.

For financial assets, this disclosure shall be provided by therelated financial assets’ measurement categories inaccordance with PBE IPSAS 29 and PBE IFRS 9, and shallshow separately the effect of the changes in themeasurement category on the loss allowance at that date.

30p49Q 10. In the reporting period that includes the date of initialapplication of PBE IFRS 9, an entity is not required todisclose the line item amounts that would have beenreported in accordance with the classification andmeasurement requirements (which includes therequirements related to amortised cost measurement offinancial assets and impairment in Sections 5.4 and 5.5 ofPBE IFRS 9) of:

(a) PBE IFRS 9 for prior periods; and

(b) PBE IPSAS 29 for the current period.

30p49R 11. Disclose the carrying amount of financial assets whosecontractual cash flow characteristics have been assessedbased on the facts and circumstances that existed at theinitial recognition of the financial assets without takinginto account the requirements related to the modification ofthe time value of money element as allowed by PBE IFRS 9paragraphs B4.1.9B-B4.1.9D.

This disclosure is required until these assets arederecognised.

30p49S 12. Disclose the carrying amount at the reporting date of thefinancial assets whose contractual cash flowcharacteristics have been assessed based on the facts andcircumstances that existed at the initial recognition of thefinancial asset without taking into account the exceptionfor prepayment features in paragraph B4.1.12 ofPBE IFRS 9 until those financial assets are derecognised.

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30p9, AG1-AG3 1. When PBE IPSAS 30 requires disclosures by class offinancial instrument, group the financial instruments intoclasses that are appropriate to the nature of theinformation disclosed. Take into account the characteristicsof those financial instruments. Provide sufficientinformation to permit reconciliation to the line itemspresented in the balance sheet.

30p10 2. Disclose information that enables users of the financialstatements to evaluate the significance of financialinstruments for financial position and performance.

3. Statement of financial position

30p11 1. Disclose either in the statement of financial position or inthe notes the carrying amounts of each of the followingcategories, as defined in PBE IFRS 9:

30pRDR11.1 (a) financial assets measured at fair value through surplusor deficit, showing separately:

(i) those designated as such upon initial recognition,or subsequently in accordance with paragraph6.7.1 of PBE IFRS 9; and

(ii) those classified as held-for-trading in accordancewith PBE IPSAS 29 those mandatorily measuredat fair value through surplus or deficit inaccordance with PBE IFRS 9;

(b) Held-to-maturity investments;

(c) Loans and receivables;

(d) Available-for-sale financial assets;

30pRDR11.1 (e) financial liabilities at fair value through surplus ordeficit, showing separately:

(i) those designated as such upon initial recognition,or subsequently in accordance with paragraph6.7.1 of PBE IFRS 9; and

(ii) those that meet the definition of classified as heldfor trading in accordance with PBE IFRS 9;

(f) financial assets measured at amortised cost;

(g) financial liabilities measured at amortised cost; and

(h) Financial assets measured at fair value through othercomprehensive revenue and expense, showingseparately

(i) financial assets that are measured at fair valuethrough other comprehensive revenue andexpense in accordance with paragraph 4.1.2A ofPBE IFRS 9; and

(ii) investments in equity instruments designated assuch upon initial recognition in accordance withparagraph 5.7.5 of PBE IFRS 9.

30p12 2. If a financial asset (or group of financial assets) isdesignated as measured at fair value through surplus ordeficit that would otherwise be measured at fair valuethrough other comprehensive revenue and expense oramortised cost a loan or receivable (or group of loans orreceivables) as at fair value through surplus or deficit,disclose:

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(a) the maximum exposure to credit risk (see PBE IPSAS30 paragraph 43(a)) of the financial asset (or group offinancial assets) loan or receivable (or group of loansor receivables) at the end of the reporting period;

(b) the amount by which any related credit derivatives orsimilar instruments mitigate that maximum exposureto credit risk;

(c) the amount of change, during the period andcumulatively, in the fair value of the financial asset (orgroup of financial assets) loan or receivable (or groupof loans or receivables) that is attributable to changesin the credit risk of the financial asset determinedeither:

(i) as the amount of change in its fair value that isnot attributable to changes in market conditionsthat give rise to market risk; or

(ii) using an alternative method that the entitybelieves more faithfully represents the amount ofchange in its fair value that is attributable tochanges in the credit risk of the asset.

Changes in market conditions that give rise to marketrisk include changes in an observed (benchmark)interest rate, commodity price, foreign exchange rateor index of prices or rates; and

(d) the amount of the change in the fair value of anyrelated credit derivatives or similar instruments thathas occurred during the period and cumulatively sincethe loan or receivable financial asset was designated.

30p13 3. If a financial liability is designated as at fair value throughsurplus or deficit in accordance with PBE IFRS 9, and isrequired to present the effects of changes in that liability’scredit risk in other comprehensive revenue and expense(see paragraph 5.7.7 of PBE IFRS 9), disclose:

(a) the amount of change, during the period andcumulatively, in the fair value of the financial liabilitythat is attributable to changes in the credit risk of thatliability, determined either;

(i) as the amount of change in its fair value that isnot attributable to changes in market conditionsthat give rise to market risk; or

(ii) using an alternative method that the entitybelieves more faithfully represents the amount ofchange in its fair value that is attributable tochanges in the credit risk of the asset.

Changes in market conditions that give rise to marketrisk include changes in an observed (benchmark)interest rate, commodity price, foreign exchange rateor index of prices or rates; and

(b) the difference between the financial liability's carryingamount and the amount the entity would becontractually required to pay at maturity to the holderof the obligation;

(c) any transfers of the cumulative gain or loss within netassets/equity during the period including the reasonfor such transfers; and

(d) if a liability is derecognised during the period, theamount (if any) presented in other comprehensive

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revenue and expense that was realised atderecognition.

30p13A 4. If a financial liability is designated as at fair value throughsurplus or deficit in accordance with paragraph 4.2.2 ofPBE IFRS 9 and is required to present all changes in thefair value of that liability (including the effects of changesin the credit risk of the liability) in surplus or deficit (seeparagraphs 5.7.7 and 5.7.8 of PBE IFRS 9), disclose:

(a) the amount of change, during the period andcumulatively, in the fair value of the financial liabilitythat is attributable to changes in the credit risk of thatliability (see paragraphs B5.7.13–B5.7.20 ofPBE IFRS 9 for guidance on determining the effects ofchanges in a liability’s credit risk); and

(b) the difference between the financial liability’s carryingamount and the amount the entity would becontractually required to pay at maturity to the holderof the obligation.

30p14, pAG4 5. Disclose:

(a) a detailed description of the methods used to complywith the requirements in PBE IPSAS 30 paragraph12(c), 13(a) and 13A(a) and paragraph 5.7.7(a) ofPBE IFRS 9, including an explanation of why themethod is appropriate;

(b) if the entity believes that the disclosure it has given,either in the statement of financial position or in thenotes, to comply with the requirements inPBE IPSAS 30 paragraph 12(c), 13(a) or 13A(a) orparagraph 5.7.7(a) of PBE IFRS 9 does not faithfullyrepresent the change in the fair value of the financialasset or financial liability attributable to changes in itscredit risk:

(i) the reasons for reaching this conclusion; and

(ii) the factors it believes are relevant.

(c) a detailed description of the methodology ormethodologies used to determine whether presentingthe effects of changes in a liability’s credit risk in othercomprehensive revenue and expense would create orenlarge an accounting mismatch in surplus or deficit(see paragraphs 5.7.7 and 5.7.8 of PBE IFRS 9). If theeffects of changes in a liability’s credit risk arerequired to be presented in surplus or deficit (seeparagraph 5.7.8 of PBE IFRS 9), the disclosure mustinclude a detailed description of the economicrelationship described in paragraph B5.7.6 ofPBE IFRS 9.

30p14A 6. If investments in equity instruments are designated asmeasured at fair value through other comprehensiverevenue and expense, as permitted by paragraph 5.7.5 ofPBE IFRS 9, disclose:

(a) which investments in equity instruments have beendesignated to be measured at fair value through othercomprehensive revenue and expense;

(b) the reasons for using this presentation alternative;

(c) the fair value of each such investment at the end of thereporting period;

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(d) dividends recognised during the period, showingseparately:

(i) those related to investments derecognised duringthe reporting period; and

(ii) those related to investments held at the end of thereporting period; and

(e) any transfers of the cumulative gain or loss within netassets/equity during the period including the reasonfor such transfers.

30p14B 7. If investments in equity instruments measured at fair valuethrough other comprehensive revenue and expense arederecognised during the reporting period, disclose:

(a) the reasons for disposing of the investments;

(b) the fair value of the investments at the date ofderecognition; and

(c) the cumulative gain or loss on disposal.

30p15 8. If the entity has reclassified a financial asset (in accordancewith paragraphs PBE IPSAS 29 paras 60-63) as onemeasured:

(a) at cost or amortised cost, rather than at fair value; or

(b) at fair value, rather than at cost or amortised cost,

disclose:

(a) the amount reclassified into and out of each category;and

(b) the reason for that reclassification.

30p16 9. If the entity has reclassified a financial asset out of the fairvalue through surplus or deficit category in accordance withPBE IPSAS 29 para 55 or 57, or out of the available-for-salecategory in accordance with paragraph 58 of PBE IPSAS 29,disclose:

(a) the amount reclassified into and out of each category;

(b) for each reporting period until derecognition, thecarrying amounts and fair values of all financialassets that have been reclassified in the current andprevious reporting periods;

(c) if a financial asset was reclassified in accordance withpara 55 of PBE IPSAS 29, the rare situation, and thefacts and circumstances indicating that the situationwas rare;

(d) for the reporting period when the financial asset wasreclassified, the fair value gain or loss on the financialasset recognised in surplus or deficit or othercomprehensive revenue and expense in that reportingperiod and in the previous reporting period;

(c) for each reporting period following the reclassification(including the reporting period in which the financialasset was reclassified) until derecognition of thefinancial asset, the fair value gain or loss that wouldhave been recognised in surplus or deficit or othercomprehensive revenue and expense if the financialasset had not been reclassified, and the gain, loss,evenue and expense recognised in surplus or deficit;and

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(c) the effective interest rate and estimated amounts ofcash flows the entity expects to recover, as at the date ofreclassification of the financial asset.

30p16B 10. Disclose if, in the current or previous reporting periods anyfinancial assets are reclassified in accordance withparagraph 4.4.1 of PBE IFRS 9. For each such event,disclose:

(a) the date of reclassification.

(b) a detailed explanation of the change in business model;

(c) a qualitative description of its effect on the financialstatements; and

(d) the amount reclassified into and out of each category.

30p16C 11. For each reporting period following reclassification untilderecognition, disclose for assets reclassified out of the fairvalue through surplus or deficit category so that they aremeasured at amortised cost or fair value through othercomprehensive revenue and expense in accordance withparagraph 4.4.1 of PBE IFRS 9:

(a) the effective interest rate determined on the date ofreclassification; and

(b) the interest revenue recognised.

30p16D 12. If, since the last annual reporting date, financial assets havebeen reclassified out of the fair value through othercomprehensive revenue and expense category so that theyare measured at amortised cost or out of the fair valuethrough surplus or deficit category so that they aremeasured at amortised cost or fair value through othercomprehensive revenue and expense disclose:

(a) the fair value of the financial assets at the end of thereporting period; and

(b) the fair value gain or loss that would have beenrecognised in surplus or deficit or other comprehensiverevenue or expense during the reporting period if thefinancial assets had not been reclassified.

30p17 13. If financial assets have been transferred in such a way thatpart or all of the financial assets do not qualify forderecognition (see Chapter 3 of PBE IFRS 9), disclose foreach class of such financial asset:

(a) the nature of the assets;

(b) the nature of the risks and rewards of ownership towhich the entity remains exposed;

(c) when the entity continues to recognise all of the assets,the carrying amounts of the assets and of the associatedliabilities; and

(d) when the entity continues to recognise the assets to theextent of its continuing involvement:

(i) the total carrying amount of the original assets;

(ii) the amount of the assets that the entity continuesto recognise; and

(iii) the carrying amount of the associated liabilities.

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30p18 14. Disclose:

(a) the carrying amount of financial assets that the entityhas pledged as collateral for liabilities or contingentliabilities, including amounts that have beenreclassified in accordance with paragraph 3.2.23(a) ofPBE IFRS 9; and

(b) the terms and conditions relating to its pledge.

30p19 15. When the entity holds collateral (of financial or non-financial assets) and is permitted to sell or repledge thecollateral in the absence of default by the owner of thecollateral, disclose:

(a) the fair value of the collateral held;

(b) the fair value of any such collateral sold or repledged,and whether the entity has an obligation to return it;and

(c) the terms and conditions associated with its use of thecollateral.

30p20, AG5(d) 16. When financial assets are impaired by credit losses and theentity records the impairment in a separate account (forexample, an allowance account used to record individualimpairments or a similar account used to record a collectiveimpairment of assets) rather than directly reducing thecarrying amount of the asset, disclose a reconciliation ofchanges in that account during the period for each class offinancial assets.

30p20A 17. Disclose any loss allowance related to a financial assetmeasured at fair value through other comprehensiverevenue and expense in the notes to the financialstatements.

30p21 18. If an instrument has been issued that contains both aliability and an equity component (PBE IPSAS 28 paragraph33) and the instrument has multiple embedded derivativeswhose values are interdependent (such as a callableconvertible debt instrument), disclose the existence of thosefeatures.

30p21 19. If an instrument has been issued that contains both aliability and an equity component (see paragraph 33 ofPBE IPSAS 28) and the instrument has multiple embeddedderivatives whose values are interdependent (such as acallable convertible debt instrument), disclose the existenceof those features.

30p22 20. For loans payable recognised at the reporting date,disclose:

(a) details of any defaults during the period of principal,interest, sinking fund or redemption terms of thoseloans payable;

(b) the carrying amount of the loans payable in default atthe reporting date; and

(c) whether the default was remedied, or the terms of theloans payable were renegotiated, before the financialstatements were authorised for issue.

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30pRDR22.1 21. For loans payable recognised at the end of the reportingperiod for which there is a breach of terms or default ofprincipal, interest, sinking fund, or redemption of terms thathas not been remedied by the end of the reporting period, aTier 2 entity shall disclose the following:

(a) details of that breach or default;

(b) the carrying amount of the related loans payable at theend of the reporting period; and

(c) whether the breach or default was remedied, or theterms of the loans payable were renegotiated, before thefinancial statements were authorised for issue.

30p23 22. If during the period there were breaches of loan agreementterms other than those described in PBE IPSAS 30paragraph 22, disclose the same information as requiredby question 20 above if those breaches permitted the lenderto demand accelerated repayment (unless the breacheswere remedied, or the terms of the loan were renegotiated,on or before the reporting period).

30p37 23. For concessionary loans granted disclose:

(a) a reconciliation between the opening and closingcarrying amounts of the loans, including:

(i) nominal value of new loans granted during theperiod;

(ii) the fair value adjustment on initial recognition;

(iii) loans repaid during the period;

(iv) impairment losses recognised (where applicable);

(v) any increase during the period in the discountedamount arising from the passage of time, unlessimpracticable; and

(vi) other changes.

(b) nominal value of the loans at the end of the period;

(c) the purpose and terms of the various types of loans; and

(d) valuation assumptions.

30p45 24. When an entity obtains financial or non-financial assetsduring the period by taking possession of collateral it holdsas security or calling on other credit enhancements (that isguarantees), and such assets meet the recognition criteriain other Standards, disclose:

(a) the nature and carrying amount of the assetsobtained; and

(b) when the assets are not readily convertible into cash,its policies for disposing of such assets or for usingthem in its operations.

4. Statement of comprehensive revenue and expensedisclosures

30p24

30pRDR24.1

1. Disclose the following items of revenue, expense, gains orlosses either in the statement of comprehensive revenue andexpense or in the notes:

(a) net gains or net losses on:

(i) financial assets or financial liabilities measured atfair value through surplus or deficit, showingseparately those on:

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(1) financial assets or financial liabilitiesdesignated as such upon initial recognition,and those on financial assets or financialliabilities that are classified as held fortrading in accordance with PBE IPSAS 29or subsequently in accordance withparagraph 6.7.1 of PBE IFRS 9; and

(2) financial assets or financial liabilities thatare mandatorily measured at fair valuethrough surplus or deficit in accordancewith PBE IFRS 9 (e.g., financial liabilitiesthat meet the definition of held for tradingin PBE IFRS 9).

For financial liabilities designated as at fairvalue through surplus or deficit, an entityshall show separately the amount of gain orloss recognised in other comprehensiverevenue and expense and the amountrecognised in surplus or deficit;

(ii) available-for-sale financial assets, showingseparately:

(1) the amount of gain or loss recognised inother comprehensive revenue and expenseduring the period; and

(2) the amount reclassified from net assets /equity to surplus or deficit for the period;

(iii) held-to-maturity investments;

(iv) loans and receivables; and

(v) Financial liabilities measured at amortised cost;

(vi) Financial assets measured at amortised cost;

(vii) Investments in equity instruments designated atfair value through other comprehensive revenueand expense in accordance with paragraph 5.7.5 ofPBE IFRS 9; and

(viii) Financial assets measured at fair value throughother comprehensive revenue and expense inaccordance with paragraph 4.1.2A of PBE IFRS 9,showing separately:

(1) the amount of gain or loss recognised inother comprehensive revenue and expenseduring the period; and

(2) the amount reclassified upon derecognitionfrom accumulated other comprehensiverevenue and expense to surplus or deficit forthe period.

(b) total interest revenue and total interest expense(calculated using the effective interest method) forfinancial assets that are measured at amortised cost orthat are measured at fair value through othercomprehensive revenue and expense in accordance withparagraph 4.1.2A of PBE IFRS 9 (showing theseamounts separately); or financial liabilities that are notmeasured at fair value through surplus or deficit;

(c) fee revenue and expense (other than amounts includedin determining the effective interest rate) arising from:

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(i) financial assets or financial liabilities that are notat fair value through surplus or deficit; and

(ii) trust and other fiduciary activities that result inthe holding or investing of assets on behalf ofindividuals, trusts, retirement benefit plans andother institutions;

(d) interest revenue on impaired financial assetsaccrued in accordance with paragraph AG126 ofPBE IPSAS 29; and

(e) the amount of any impairment loss for each classof financial asset.

30p24A 2. Disclose an analysis of the gain or loss recognised in thestatement of comprehensive revenue and expense arisingfrom the derecognition of financial assets measured atamortised cost, showing separately gains and lossesarising from derecognition of those financial assets. Thisdisclosure shall include the reasons for derecognising thosefinancial assets.

5. Accounting policies

30p25,AG5 1. Disclosure required by PBE IPSAS 30 paragraph 25 mayinclude:

(a) for financial assets or financial liabilities designated asat fair value through surplus or deficit:

(i) the nature of financial assets or financialliabilities the entity has designated as at fair valuethrough surplus or deficit;

(ii) the criteria for designating such financial assets orfinancial liabilities on initial recognition; and

(iii) how the entity has satisfied the conditions inparagraph 4.2.2 of PBE IFRS 9 for suchdesignation;

(1) For instruments designated in accordancewith PBE IPSAS 29 paragraph 10(b)(i) of thedefinition of a financial asset or financialliability at fair value through surplus ordeficit, include a narrative description of thecircumstances underlying the measurementor recognition inconsistency that wouldotherwise arise.

(2) For instruments designated in accordancewith PBE IPSAS 29 paragraph 10(b)(ii) ofthe definition of a financial asset or financialliability at fair value through surplus ordeficit, include a narrative description ofhow designation at fair value throughsurplus or deficit is consistent with theentity's documented risk management orinvestment strategy;

(b) for financial assets designated as measured at fair valuethrough surplus or deficit:

(i) the nature of the financial assets the entity hasdesignated as measured at fair value throughsurplus or deficit; and

(ii) how the entity has satisfied the criteria inparagraph 4.1.5 of PBE IFRS 9 for suchdesignation;

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(c) the criteria for designating financial assets as availablefor sale;

(d) whether regular way purchases and sales of financialassets are accounted for at trade date or at settlementdate (see paragraph 3.1.2 of PBE IFRS 9 );

(e) when an allowance account is used to reduce thecarrying amount of financial assets impaired by creditlosses:

(i) the criteria for determining when the carryingamount of impaired financial assets is reduceddirectly (or, in the case of a reversal of a write-down, increased directly) and when the allowanceaccount is used; and

(ii) the criteria for writing off amounts charged to theallowance account against the carrying amount ofimpaired financial assets (see PBE IPSASparagraph 20);

(f) how net gains or net losses on each category of financialinstrument are determined (see PBE IPSAS 30paragraph 24(a)), for example, whether the net gains ornet losses on items at fair value through surplus ordeficit include interest or revenue from dividends orsimilar distributions;

(g) the criteria the entity uses to determine that there isobjective evidence that an impairment loss hasoccurred (see PBE IPSAS 30 paragraph 24(e)); and

(h) when the terms of financial assets that would otherwisebe past due or impaired have been renegotiated, theaccounting policy for financial assets that are thesubject of renegotiated terms (see PBE IPSAS 30paragraph 43(d)); and

(i) For financial guarantee contracts issued through a non-exchange transaction, where no fair value can bedetermined and a provision is recognised in accordancewith PBE IPSAS 19, disclosure of the circumstances thatresult in a provision being recognised.

2. Disclose, in the summary of significant accounting policiesor other notes, the judgements, apart from those involvingestimations, that management has made in the process ofapplying the entity's accounting policies and that have themost significant effect on the amounts recognised in thefinancial statements (see PBE IPSAS 1 paragraph 137).

6. Hedge accounting

30p25A 1. Apply the disclosure requirements in paragraphs 25B–28Fof PBE IPSAS 30 for those risk exposures that an entityhedges and for which it elects to apply hedge accounting.Hedge accounting disclosures shall provide informationabout:

(a) an entity’s risk management strategy and how it isapplied to manage risk;

(b) how the entity’s hedging activities may affect theamount, timing and uncertainty of its future cash flows;and

(c) the effect that hedge accounting has had on the entity’sstatement of financial position, statement ofcomprehensive revenue and expense and statement ofchanges in net assets/equity.

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30p25B 2. Present the required disclosures in a single note or separatesection of the financial statements. However, informationthat is already presented elsewhere need not be duplicated,provided that the information is incorporated by cross-reference from the financial statements to some otherstatement, such as a management commentary or riskreport, that is available to users of the financial statementson the same terms as the financial statements and at thesame time. Without the information incorporated by cross-reference, the financial statements are incomplete.

30p25C 3. When paragraphs 26A–28F require the informationdisclosed to be separated by risk category, determine eachrisk category on the basis of the risk exposures an entitydecides to hedge and for which hedge accounting isapplied. Determine risk categories consistently for allhedge accounting disclosures

30p25D 4. To meet the objectives in question 1 above, determine(except as otherwise specified below) how much detail todisclose, how much emphasis to place on different aspects ofthe disclosure requirements, the appropriate level ofaggregation or disaggregation, and whether users offinancial statements need additional explanations toevaluate the quantitative information disclosed. However,use the same level of aggregation or disaggregation used fordisclosure requirements of related information inPBE IPSAS 30.

30p26 5. Disclose the following separately for each type of hedgedescribed in PBE IPSAS 29 (ie, fair value hedges, cash flowhedges and hedges of net investments in foreignoperations):

(a) a description of each type of hedge;

(b) a description of the financial instruments designated ashedging instruments and their fair values at the end ofthe reporting period; and

(c) the nature of the risks being hedged.

30p26A 6. Explain the risk management strategy for each risk categoryof risk exposures that the entity decides to hedge and forwhich hedge accounting is applied. This explanation shouldenable users of financial statements to evaluate (forexample):

(a) how each risk arises.

(b) how each risk is managed; this includes whether anitem is hedged in its entirety for all risks or a riskcomponent (or components) of an item is hedged andwhy; and

(c) the extent of risk exposures managed.

30p26B 7. To meet the requirements in question 6 above, theinformation should include (but is not limited to) adescription of:

(a) the hedging instruments that are used (and how theyare used) to hedge risk exposures;

(b) how the economic relationship between the hedgeditem and the hedging instrument is determined for thepurpose of assessing hedge effectiveness; and

(c) how the hedge ratio is established and what the sourcesof hedge ineffectiveness are.

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30p26C 8. When a specific risk component is designated as a hedgeditem is determined (see paragraph 6.3.7 of PBE IFRS 9)provide, in addition to the disclosures required byparagraphs 26A and 26B, qualitative or quantitativeinformation about:

(a) how the risk component that is designated as thehedged item is determined (including a description ofthe nature of the relationship between the riskcomponent and the item as a whole); and

(b) how the risk component relates to the item in itsentirety (for example, the designated risk componenthistorically covered on average 80 percent of thechanges in fair value of the item as a whole).

30p27 9. For cash flow hedges, disclose:

(a) the periods when the cash flows are expected to occurand when they are expected to affect surplus or deficit;

(b) a description of any forecast transaction for whichhedge accounting had previously been used, but whichis no longer expected to occur;

(c) the amount that was recognised in other comprehensiverevenue and expense during the period;

RDR 27.1 (d) the amount that was reclassified from net assets/equityto surplus or deficit for the period, showing the amountincluded in each line item in the statement ofcomprehensive revenue and expense; and

(e) the amount that was removed from net assets/equityduring the period and included in the initial cost orother carrying amount of a non-financial asset or non-financial liability whose acquisition or incurrence was ahedged highly probable forecast transaction.

30p27A, 27B 10. Unless exempted by paragraph 27C, disclose by riskcategory quantitative information to allow users of thefinancial statements to evaluate the terms and conditionsof hedging instruments and how they affect the amount,timing and uncertainty of future cash flows of the entity.Specifically, provide a breakdown that discloses:

(a) a profile of the timing of the nominal amount of thehedging instrument; and

(b) if applicable, the average price or rate (for examplestrike or forward prices etc) of the hedging instrument.

30p27C 11. In situations in which hedging relationships are frequentlyreset (i.e., discontinued and restarted) because both thehedging instrument and the hedged item frequently change(i.e., a dynamic process is used in which both the exposureand the hedging instruments used to manage that exposuredo not remain the same for long—such as in the example inparagraph B6.5.24(b) of PBE IFRS 9) the disclosuresrequired by question 10 above are not required. Insteaddisclose:

(a) information about what the ultimate risk managementstrategy is in relation to those hedging relationships;

(b) a description of how it reflects its risk managementstrategy by using hedge accounting and designatingthose particular hedging relationships; and

(c) an indication of how frequently the hedgingrelationships are discontinued and restarted as part of

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the entity’s process in relation to those hedgingrelationships.

30p27D 12. Disclose by risk category a description of the sources ofhedge ineffectiveness that are expected to affect the hedgingrelationship during its term.

30p27E 13. If other sources of hedge ineffectiveness emerge in ahedging relationship, disclose those sources by riskcategory and explain the resulting hedge ineffectiveness.

30p27F 14. For cash flow hedges, disclose a description of any forecasttransaction for which hedge accounting had been used inthe previous period, but which is no longer expected tooccur.

30p28 15. Disclose separately:

(a) in fair value hedges, gains or losses:

(i) on the hedging instrument; and

(ii) on the hedge item attributable to the hedged risk;

(b) the ineffectiveness recognised in surplus or deficit thatarises from cash flow hedges; and

(c) the ineffectiveness recognised in surplus or deficit thatarises from hedges of net investments in foreignoperations.

30p28A, RDR28A 16. Disclose, in a tabular format, the following amounts relatedto items designated as hedging instruments separately byrisk category for each type of hedge (fair value hedge, cashflow hedge or hedge of a net investment in a foreignoperation):

(a) the carrying amount of the hedging instruments(financial assets separately from financial liabilities);

(b) the line item in the statement of financial position thatincludes the hedging instrument;

(c) the change in fair value of the hedging instrument usedas the basis for recognising hedge ineffectiveness for theperiod; and

(d) the nominal amounts (including quantities such astonnes or cubic metres) of the hedging instruments.

30p28B(a),RDR28B.1

17. Disclose, in a tabular format, the following amounts relatedto hedged items separately by risk category for fair valuehedges:

(a) the carrying amount of the hedged item recognised inthe statement of financial position (presenting assetsseparately from liabilities);

(b) the accumulated amount of fair value hedgeadjustments on the hedged item included in thecarrying amount of the hedged item recognised in thestatement of financial position (presenting assetsseparately from liabilities);

(c) the line item in the statement of financial position thatincludes the hedged item;

(d) the change in value of the hedged item used as the basisfor recognising hedge ineffectiveness for the period;and

(e) the accumulated amount of fair value hedgeadjustments remaining in the statement of financialposition for any hedged items that have ceased to be

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adjusted for hedging gains and losses in accordancewith paragraph 6.5.10 of PBE IFRS 9.

30p28B(b),RDR28B.1

18. Disclose, in a tabular format, the following amounts relatedto hedged items separately by risk category for cash flowhedges and hedges of a net investment in a foreignoperation:

(a) the change in value of the hedged item used as the basisfor recognising hedge ineffectiveness for the period(i.e., for cash flow hedges the change in value used todetermine the recognised hedge ineffectiveness inaccordance with paragraph 6.5.11(c) of PBE IFRS 9);

(b) the balances in the cash flow hedge reserve and theforeign currency translation reserve for continuinghedges that are accounted for in accordance withparagraphs 6.5.11 and 6.5.13(a) of PBE IFRS 9; and

(c) the balances remaining in the cash flow hedge reserveand the foreign currency translation reserve from anyhedging relationships for which hedge accounting is nolonger applied.

30p28C(a),RDR28C.1

19. Disclose, in a tabular format, the following amountsseparately by risk category for fair value hedges:

(a) hedge ineffectiveness—i.e., the difference between thehedging gains or losses of the hedging instrument andthe hedged item—recognised in surplus or deficit (orother comprehensive revenue and expense for hedges ofan equity instrument for which an entity has elected topresent changes in fair value in other comprehensiverevenue and expense in accordance with paragraph5.7.5 of PBE IFRS 9); and

(b) the line item in the statement of comprehensiverevenue and expense that includes the recognisedhedge ineffectiveness.

30p28C(b),RDR28C.1

20. Disclose, in a tabular format, the following amountsseparately by risk category for cash flow hedges and hedgesof a net investment in a foreign operation:

(a) hedging gains or losses of the reporting period thatwere recognised in other comprehensive revenue andexpense;

(b) hedge ineffectiveness recognised in surplus or deficit;

(c) the line item in the statement of comprehensiverevenue and expense that includes the recognisedhedge ineffectiveness;

30pRDR28c.2 (d) the amount reclassified from the cash flow hedgereserve or the foreign currency translation reserve intosurplus or deficit as a reclassification adjustment (seePBE IPSAS 1), differentiating between:

(i) amounts for which hedge accounting hadpreviously been used, but for which the hedgedfuture cash flows are no longer expected to occur;and

(i) amounts that have been transferred because thehedged item has affected surplus or deficit);

(e) the line item in the statement of comprehensiverevenue and expense that includes the reclassificationadjustment (see PBE IPSAS 1); and

(f) for hedges of net positions, the hedging gains or lossesrecognised in a separate line item in the statement of

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comprehensive revenue and expense (see paragraph6.6.4 of PBE IFRS 9).

30p28D 21. When the volume of hedging relationships to which theexemption in PBE IPSAS 30 paragraph 28C applies isunrepresentative of normal volumes during the period (i.e.,the volume at the reporting date does not reflect thevolumes during the period), disclose:

(a) that fact; and

(b) the reason the entity believes the volumes areunrepresentative.

30p28E 22. Provide a reconciliation of each component of netassets/equity and an analysis of other comprehensiverevenue and expense in accordance with PBE IPSAS 1 that,taken together:

(a) differentiates, at a minimum, between the amountsthat relate to the disclosures in paragraph 28C(b)(i)and (b)(iv) as well as the amounts accounted for inaccordance with paragraph 6.5.11(d)(i) and (d)(iii) ofPBE IFRS 9;

(b) differentiates between the amounts associated with thetime value of options that hedge transaction relatedhedged items and the amounts associated with thetime value of options that hedge time-period relatedhedged items when an entity accounts for the timevalue of an option in accordance with paragraph6.5.15 of PBE IFRS 9; and

(c) differentiates between the amounts associated withforward elements of forward contracts and the foreigncurrency basis spreads of financial instruments thathedge transaction related hedged items, and theamounts associated with forward elements of forwardcontracts and the foreign currency basis spreads offinancial instruments that hedge time-period relatedhedged items when an entity accounts for thoseamounts in accordance with paragraph 6.5.16 of PBEIFRS 9.

30p28F 23. Disclose the information required in question 22 separatelyby risk category. This disaggregation by risk may beprovided in the notes to the financial statements.

30p28G 24. If a financial instrument, or a proportion of it, is designatedas measured at fair value through surplus or deficit becausea credit derivative is used to manage the credit risk of thatfinancial instrument, disclose:

(a) for credit derivatives that have been used to managethe credit risk of financial instruments designated asmeasured at fair value through surplus or deficit inaccordance with paragraph 6.7.1 of PBE IFRS 9, areconciliation of each of the nominal amount and thefair value at the beginning and at the end of theperiod;

(b) the gain or loss recognised in surplus or deficit ondesignation of a financial instrument, or a proportionof it, as measured at fair value through surplus ordeficit in accordance with paragraph 6.7.1 ofPBE IFRS 9; and

(c) on discontinuation of measuring a financial instrument,or a proportion of it, at fair value through surplus ordeficit, that financial instrument’s fair value that hasbecome the new carrying amount in accordance with

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paragraph 6.7.4 of PBE IFRS 9 and the related nominalor principal amount.

Except for providing comparative information inaccordance with PBE IPSAS 1, an entity does not needto continue this disclosure in subsequent periods.

7. Fair value

30p29 1. Except as set out in PBE IPSAS 30 paragraph 35, for eachclass of financial assets and financial liabilities (see PBEIPSAS 30 paragraph 9), disclose the fair value of that classof assets and liabilities in a way that permits it to becompared with its carrying amount.

30p30 2. In disclosing fair values, group financial assets andfinancial liabilities into classes, but offset them only to theextent that their carrying amounts are offset in thestatement of financial position.

30p31 3. Disclose for each class of financial instrument the methodsand, when a valuation technique is used, the assumptionsapplied in determining fair values of each class of financialassets or financial liabilities. For example, if applicable,disclose information about the assumptions relating toprepayment rates, rates of estimated credit losses, andinterest rates or discount rates. If there has been a changein valuation technique, disclose that change and thereasons for making it.

30pRDR31.1 4. A Tier 2 entity shall disclose, for all financial assets andfinancial liabilities that are measured at fair value, the basisfor determining fair value, for example quoted market pricein an active market or a valuation technique. When avaluation technique is used, disclose the assumptionsapplied in determining fair value for each class of financialassets or financial liabilities. For example, if applicable,disclose information about the assumptions relating toprepayment rates, rates of estimated credit losses, andinterest rates or discount rates.

30p33 5. For fair value measurements recognised in the statement offinancial position, disclose for each class of financialinstrument:

(a) the level in the fair value hierarchy into which the fairvalue measurements are categorised in their entirety,segregating fair value measurements in accordancewith the levels defined in PBE IPSAS 30 paragraph 32;

(b) any significant transfers between Level 1 and Level 2of the fair value hierarchy and the reasons for thosetransfers. Transfers into each level are disclosed anddiscussed separately from transfers out of each level.For this purpose, significance is judged with respect tosurplus or deficit, and total assets or total liabilities;

(c) for fair value measurements in Level 3 of the fair valuehierarchy, a reconciliation from the beginningbalances to the ending balances, disclosing separatelychanges during the period attributable to thefollowing:

(i) total gains or losses for the period recognised insurplus or deficit, and a description of where theyare presented in the statement of comprehensiverevenue and expense or the separate incomestatement (if presented);

(ii) total gains or losses recognised in othercomprehensive revenue and expense;

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(iii) purchases, sales, issues and settlements (eachtype of movement disclosed separately); and

(iv) transfers into or out of Level 3 (for example,transfers attributable to changes in theobservability of market data) and the reasons forthose transfers. For significant transfers,transfers into Level 3 are disclosed and discussedseparately from transfers out of Level 3;

(d) the amount of total gains or losses for the period in(c)(i) included in surplus or deficit that are attributableto gains or losses relating to those assets and liabilitiesheld at the end of the reporting period and adescription of where those gains or losses arepresented in the statement(s) of comprehensiverevenue and expense; and

(e) for fair value measurements in Level 3, if changing oneor more of the inputs to reasonably possiblealternative assumptions would change fair valuesignificantly:

(i) states that fact;

(ii) disclose the effect of those changes; and

(iii) disclose how the effect of a change to areasonably possible alternative assumption wascalculated. For this purpose, significance isjudged with respect to surplus or deficit, and totalassets or total liabilities, or, when changes in fairvalue are recognised in other comprehensiverevenue and expense, total net assets/equity.

6. Disclose the quantitative disclosures in question 5 above intabular format unless another format is more appropriate.

30p34 7. If the market for a financial instrument is not active, itsfair value is established using a valuation technique (seeB5.1A.6–B5.1A.12 of PBE IFRS 9). The best evidence of fairvalue at initial recognition is the transaction price (ie, thefair value of the consideration given or received), unlessconditions described in B5.1A.8 of PBE IFRS 9 are met.There could be a difference between the fair value at initialrecognition and the amount that would be determined atthat date using the valuation technique. If such a differenceexists, disclose, by class of financial instrument:

(a) the accounting policy for recognising that difference insurplus or deficit to reflect a change in factors(including time) that market participants wouldconsider in setting a price (see B5.1A.9 of PBE IFRS 9);and

(b) the aggregate difference yet to be recognised insurplus or deficit at the beginning and end of theperiod and a reconciliation of changes in the balanceof this difference.

30p35 8. Disclosures of fair value are not required:

(a) when the carrying amount is a reasonableapproximation of fair value (for example, for financialinstruments such as short-term trade receivables andpayables); and

(b) for an investment in equity instruments that do nothave a quoted market price in an active market, orderivatives linked to such equity instruments, that is

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measured at cost in accordance with PBE IPSAS 29because its fair value cannot be measured reliably; or

(c) for a contract containing a discretionary participationfeature if the fair value of that feature cannot bemeasured reliably.

30p36 9. In the case described in question 8(c) above, discloseinformation to help users of the financial statements maketheir own judgements about the extent of possibledifferences between the carrying amount of those contractsfinancial assets or financial liabilities and their fair value,including:

(a) the fact that fair value information has not beendisclosed for these instruments because their fair valuecannot be measured reliably;

(b) a description of the financial instruments, theircarrying amount, and an explanation of why fairvalue cannot be measured reliably;

(c) information about the market for the instruments;

(d) information about whether and how the entity intendsto dispose of the financial instruments; and

(e) if financial instruments whose fair value previouslycould not be reliably measured are derecognised, thatfact, their carrying amount at the time ofderecognition, and the amount of gain or lossrecognised.

8. Nature and extent of risks arising from financialinstruments

30p38 1. Disclose information that enables users of the financialstatements to evaluate the nature and extent of risksarising from financial instruments to which the entity isexposed at the reporting date.

30AG6 2. The disclosures required by PBE IPSAS 30 paragraphs 38-49 should either be given in the financial statements orincorporated by cross- reference from the financialstatements to some other statement, such as a managementcommentary or risk report, that is available to users of thefinancial statements on the same terms as the financialstatements and at the same time. Without the informationincorporated by cross-reference, the financial statementsare incomplete.

30p39 3. The disclosures required by PBE IPSAS 30 paragraphs 40-49 focus on the risks that arise from financial instrumentsand how they have been managed. These risks typicallyinclude, but are not limited to, credit risk, liquidity risk andmarket risk.

30p40 4. For each type of risk arising from financial instruments,disclose:

(a) the exposures to risk and how they arise;

(b) objectives, policies and processes for managing therisk and the methods used to measure the risk; and

(c) any changes in (a) or (b) from the previous period.

30p41, AG7 (d) summary quantitative data about exposure to that riskat the reporting date. This disclosure should be basedon the information provided internally to keymanagement personnel of the entity (as defined in PBE

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IPSAS 20), for example the entity's governing board ofdirectors or chief executive officer;

(e) the disclosures required by PBE IPSAS 30 paragraphs43-49, to the extent not provided in accordance with4.(d), unless the risk is not material (see paragraphs45-47 of PBE IPSAS 1 for a discussion of materiality);and

30AG8 (f) concentrations of risk if not apparent from thedisclosures made in accordance with 4.(d) and (e).Include in the disclosure of concentrations of risk:

(i) a description of how management determinesconcentrations;

(ii) a description of the shared characteristic thatidentifies each concentration (for example,counterparty, geographical area, currency ormarket); and

(iii) the amount of the risk exposure associated withall financial instruments sharing thatcharacteristic.

30p42 5. If the quantitative data disclosed as at the reporting date isunrepresentative of the entity's exposure to risk during theperiod, provide further information that is representative.

30p46, AG11-18 6. Disclose:

(a) a maturity analysis for non-derivative financialliabilities (including issued financial guaranteecontracts) that shows the remaining contractualmaturities;

(b) a maturity analysis for derivative financial liabilities.The maturity analysis should include the remainingcontractual maturities are essential for anunderstanding of the timing of the cash flows (seeparagraph AG14); and

(c) a description of how the liquidity risk inherent in (a)and (b).

30pAG11 7. If the outflows of cash included in this data either couldoccur significantly earlier than indicated in the data or befor significantly different amounts than indicated in thedata, disclose:

(a) that fact; and

(b) quantitative information that enables users of thefinancial statements to evaluate the extent of that risk.

30AG12 8. In preparing the contractual maturity analysis forfinancial liabilities required by question 6, use judgementto determine an appropriate number of time bands. Forexample, an entity might determine that the following timebands are appropriate:

(a) no later than one month;

(b) later than one month and no later than three months;

(c) later than three months and no later than one year;and

(d) later than one year and no later than five years.

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30p47, AG19-23 9. Unless question 10 below is complied with, disclose:

(a) a sensitivity analysis for each type of market risk towhich the entity is exposed at the end of the reportingperiod, showing how surplus or deficit and net assets /equity would have been affected by changes in therelevant risk variable that were reasonably possible atthat date;

(b) the methods and assumptions used in preparing thesensitivity analysis; and

(c) changes from the previous period in the methods andassumptions used, and the reasons for such changes.

30p48, AG22 10. If a sensitivity analysis is prepared, such as value at risk,that reflects interdependencies between risk variables (forexample, interest rates and exchange rates) and uses it tomanage financial risks, use that sensitivity analysis inplace of the analysis specified in question 9 above anddisclose:

(a) an explanation of the method used in preparing such asensitivity analysis, and of the main parameters andassumptions underlying the data provided; and

(b) an explanation of the objective of the method used andof limitations that may result in the information notfully reflecting the fair value of the assets andliabilities involved.

30p49 11. When the sensitivity analyses disclosed in accordance withquestions 9 or 10 are unrepresentative of a risk inherent ina financial instrument (for example, because the year-endexposure does not reflect the exposure during the year),disclose:

(a) that fact; and

(b) the reason the sensitivity analyses areunrepresentative.

9. Credit risk

30p42B 1. The credit risk disclosures shall enable users of financialstatements to understand the effect of credit risk on theamount, timing and uncertainty of future cash flows andshall provide:

(a) information about an entity’s credit risk managementpractices and how they relate to the recognition andmeasurement of expected credit losses, including themethods, assumptions and information used tomeasure expected credit losses;

(b) quantitative and qualitative information that allowsusers of financial statements to evaluate the amountsin the financial statements arising from expectedcredit losses, including changes in the amount ofexpected credit losses and the reasons for thosechanges; and

(c) information about an entity’s credit risk exposure (i.e.,the credit risk inherent in an entity’s financial assetsand commitments to extend credit) includingsignificant credit risk concentrations.

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30p42D 2. Consideration should be given to:

(a) how much detail to disclose;

(b) how much emphasis to place on different aspects of thedisclosure requirements;

(c) the appropriate level of aggregation ordisaggregation; and

(d) whether users of financial statements need additionalexplanations to evaluate the quantitative informationdisclosed.

30p42C 3. Information need not be duplicated that is alreadypresented elsewhere, provided that the information isincorporated by cross-reference from the financialstatements to other statements, such as a managementcommentary or risk report that is available to users of thefinancial statements on the same terms as the financialstatements and at the same time. Without the informationincorporated by cross-reference, the financial statementsare incomplete.

30p42E 4. If the disclosures provided in accordance with questions(5)-(20) below are insufficient to meet the objectives inquestion (1) above, disclose additional information that isnecessary to meet those objectives.

30p42F 5. Explain credit risk management practices and how theyrelate to the recognition and measurement of expectedcredit losses. To meet this objective, disclose informationthat enables users of financial statements to understand andevaluate:

(a) how an entity determined whether the credit risk offinancial instruments has increased significantly sinceinitial recognition, including, if and how:

(i) financial instruments are considered to have lowcredit risk in accordance with paragraph 5.5.10of PBE IFRS 9, including the classes of financialinstruments to which it applies; and

(ii) the presumption in paragraph 5.5.11 ofPBE IFRS 9, that there have been significantincreases in credit risk since initial recognitionwhen financial assets are more than 30 days pastdue, has been rebutted;

30pAG8A (b) an entity’s definitions of default, including the reasonsfor selecting those definitions. This information mayinclude:

(i) the qualitative and quantitative factorsconsidered in defining default;

(ii) whether different definitions have been applied todifferent types of financial instruments; and

(iii) assumptions about the cure rate (i.e., the numberof financial assets that return to a performingstatus) after a default occurred on the financialasset.

(c) how the instruments were grouped if expected creditlosses were measured on a collective basis;

(d) how an entity determined that financial assets arecredit-impaired financial assets;

(e) an entity’s write-off policy, including:

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(i) the indicators that there is no reasonableexpectation of recovery; and

(ii) information about the policy for financial assetsthat are written-off but are still subject toenforcement activity; and

(f) how the requirements in paragraph 5.5.12 ofPBE IFRS 9 for the modification of contractual cashflows of financial assets have been applied, includinghow an entity:

(i) determines whether the credit risk on a financialasset that has been modified while the lossallowance was measured at an amount equal tolifetime expected credit losses, has improved tothe extent that the loss allowance reverts to beingmeasured at an amount equal to 12-monthexpected credit losses in accordance withparagraph 5.5.5 of PBE IFRS 9; and

30pAG8B (ii) monitors the extent to which the loss allowanceon financial assets meeting the criteria in (i) issubsequently remeasured at an amount equal tolifetime expected credit losses in accordance withparagraph 5.5.3 of PBE IFRS 9. Quantitativeinformation that will assist users inunderstanding the subsequent increase in creditrisk of modified financial assets may includeinformation about modified financial assetsmeeting the criteria in paragraph 42F(f)(i) forwhich the loss allowance has reverted to beingmeasured at an amount equal to lifetime expectedcredit losses (i.e., a deterioration rate).

30p42G 6. Explain the inputs, assumptions and estimation techniquesused to apply the requirements in Section 5.5 ofPBE IFRS 9. For this purpose disclose:

(a) the basis of inputs and assumptions and the estimationtechniques used to:

(i) measure the 12-month and lifetime expectedcredit losses;

(ii) determine whether the credit risk of financialinstruments has increased significantly sinceinitial recognition; and

(iii) determine whether a financial asset is a credit-impaired financial asset.

(b) how forward-looking information has beenincorporated into the determination of expected creditlosses, including the use of macroeconomicinformation; and

(c) changes in the estimation techniques or significantassumptions made during the reporting period and thereasons for those changes.

30p42H 7. To explain the changes in the loss allowance and thereasons for those changes, provide, by class of financialinstrument, a tabular reconciliation from the openingbalance to the closing balance of the loss allowanceshowing separately the changes during the period for:

(a) the loss allowance measured at an amount equal to 12-month expected credit losses;

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(b) the loss allowance measured at an amount equal tolifetime expected credit losses for:

(i) financial instruments for which credit risk hasincreased significantly since initial recognitionbut that are not credit-impaired financial assets;

(ii) financial assets that are credit-impaired at thereporting date (but that are not purchased ororiginated credit-impaired); and

(iii) receivables or lease receivables for which the lossallowances are measured in accordance withparagraph 5.5.15 of PBE IFRS 9.

(c) financial assets that are purchased or originatedcredit-impaired. In addition to the reconciliation, anentity shall disclose the total amount of undiscountedexpected credit losses at initial recognition on financialassets initially recognised during the reporting period.

30pAG8D 8. In addition to the reconciliation from the opening balanceto the closing balance of the loss allowance, it may benecessary to provide a narrative explanation of thechanges. This narrative explanation may include ananalysis of the reasons for changes in the loss allowanceduring the period, including:

(a) the portfolio composition;

(b) the volume of financial instruments purchased ororiginated; and

(c) the severity of the expected credit losses.

30pAG8E 9. Disclose information about the changes in the lossallowance for financial assets separately from those forloan commitments and financial guarantee contracts.However, if a financial instrument includes both a loan(i.e., financial asset) and an undrawn commitment (i.e.,loan commitment) component and the entity cannotseparately identify the expected credit losses on the loancommitment component from those on the financial assetcomponent, the expected credit losses on the loancommitment should be recognised together with the lossallowance for the financial asset.

30p42I 10. For each class of financial instrument in question 7 above,provide an explanation of how significant changes in thegross carrying amount of financial instruments during theperiod contributed to changes in the loss allowance,including relevant qualitative and quantitativeinformation. Examples of changes in the gross carryingamount of financial instruments that contributed to thechanges in the loss allowance may include:

(a) changes because of financial instruments originated oracquired during the reporting period;

(b) the modification of contractual cash flows on financialassets that do not result in a derecognition of thosefinancial assets in accordance with PBE IFRS 9;

(c) changes because of financial instruments that werederecognised (including those that were written-off)during the reporting period; and

(d) changes arising from whether the loss allowance ismeasured at an amount equal to 12-month or lifetimeexpected credit losses.

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30p42J 11. To enable users of financial statements to understand thenature and effect of modifications of contractual cash flowson financial assets that have not resulted in derecognitionand the effect of such modifications on the measurement ofexpected credit losses, disclose:

(a) the amortised cost before the modification;

(b) the net modification gain or loss recognised forfinancial assets for which the contractual cash flowshave been modified during the reporting period whilethey had a loss allowance measured at an amountequal to lifetime expected credit losses; and

(c) the gross carrying amount at the end of the reportingperiod of financial assets that have been modified sinceinitial recognition at a time when the loss allowancewas measured at an amount equal to lifetime expectedcredit losses and for which the loss allowance haschanged during the reporting period to an amountequal to 12-month expected credit losses.

30p42A 12. For receivables and lease receivables, questions 11(a) and(b) above only apply when the lifetime expected creditlosses are recognised in accordance with paragraph 5.5.15of PBE IFRS 9, if those financial assets are modified whilemore than 30 days past due.

30p42K 13. To enable users of financial statements to understand theeffect of collateral and other credit enhancements on theamounts arising from expected credit losses, disclose byclass of financial instrument:

(a) the amount that best represents its maximum exposureto credit risk at the end of the reporting period withouttaking account of any collateral held or other creditenhancements (e.g., netting agreements that do notqualify for offset in accordance with PBE IPSAS 28);

(b) a narrative description of collateral held as securityand other credit enhancements, including:

(i) a description of the nature and quality of thecollateral held;

(ii) an explanation of any significant changes in thequality of that collateral or credit enhancementsas a result of deterioration or changes in thecollateral policies of the entity during thereporting period; and

(iii) information about financial instruments forwhich an entity has not recognised a lossallowance because of the collateral.

30p42A(b) NB: The disclosure in (b) above does not apply to leasereceivables.

(c) quantitative information about the collateral held assecurity and other credit enhancements (for example,quantification of the extent to which collateral andother credit enhancements mitigate credit risk) forfinancial assets that are credit-impaired at thereporting date.

30pAG8F NB: In responding to question 13, it is neither required todisclose information about the fair value of collateral andother credit enhancements nor is it required to quantify theexact value of the collateral that was included in thecalculation of expected credit losses (i.e., the loss givendefault).

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30pAG8G 14. A narrative description of collateral and its effect onamounts of expected credit losses might includeinformation about:

(a) the main types of collateral held as security and othercredit enhancements (examples of the latter beingguarantees, credit derivatives and netting agreementsthat do not qualify for offset in accordance with PBEIPSAS 28);

(b) the volume of collateral held and other creditenhancements and its significance in terms of the lossallowance;

(c) the policies and processes for valuing and managingcollateral and other credit enhancements;

(d) the main types of counterparties to collateral andother credit enhancements and their creditworthiness;and

(e) information about risk concentrations within thecollateral and other credit enhancements.

30p42L 15. Disclose the contractual amount outstanding on financialassets that were written off during the reporting period andare still subject to enforcement activity

30p42M 16. Disclose, by credit risk rating grades, the gross carryingamount of financial assets and the exposure to credit riskon loan commitments and financial guarantee contracts,separately for financial instruments:

(a) for which the loss allowance is measured at an amountequal to 12-month expected credit losses;

(b) for which the loss allowance is measured at an amountequal to lifetime expected credit losses and that are:

(i) financial instruments for which credit risk hasincreased significantly since initial recognitionbut that are not credit-impaired financial assets;

(ii) financial assets that are credit-impaired at thereporting date (but that are not purchased ororiginated credit-impaired); and

(iii) receivables or lease receivables for which the lossallowances are measured in accordance withparagraph 5.5.15 of PBE IFRS 9; and

(c) that are purchased or originated credit-impairedfinancial assets.

30pAG8H 17. The disclosures required by question 16 should provideinformation that enables users of financial statements tounderstand whether there are groups or portfolios offinancial instruments with particular features that couldaffect a large portion of that group of financial instrumentssuch as concentration to particular risks. This couldinclude, for example, loan-to-value groupings,geographical, industry or issuer-type concentrations.

30pAG8I 18. The number of credit risk rating grades used to disclose theinformation in accordance with question 16 shall beconsistent with the number reported to key managementpersonnel for credit risk management purposes. If past dueinformation is the only borrower-specific informationavailable and past due information is used to assesswhether credit risk has increased significantly since initialrecognition in accordance with paragraph 5.5.10 of PBE

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IFRS 9, provide an analysis by past due status for thosefinancial assets.

30pAG8J 19. When expected credit losses are measured on a collectivebasis and the gross carrying amount of individual financialassets or the exposure to credit risk on loan commitmentsand financial guarantee contracts cannot be allocated tothe credit risk rating grades for which lifetime expectedcredit losses are recognised:

(a) apply the requirement in question 16 to those financialinstruments that can be directly allocated to a creditrisk rating grade; and

(b) disclose separately the gross carrying amount offinancial instruments for which lifetime expectedcredit losses have been measured on a collective basis.

30p42N 20. For receivables and lease receivables for which thesimplified approach is applied (paragraph 5.5.15 ofPBE IFRS 9), the information provided in accordance withquestion 16 may be based on a provision matrix.

IFRS30p43(a),(b),(c),(d)

21. For all financial instruments within the scope ofPBE IFRS 9, but to which the impairment requirements inPBE IFRS 9 are not applied, disclose by class of financialinstrument:

(a) the amount that best represents the maximumexposure to credit risk at the end of the reportingperiod without taking account of any collateral held orother credit enhancements (that is, netting agreementsthat do not qualify for offset in accordance withPBE IPSAS 28);

(b) in respect of the amount disclosed in (a) above, adescription and the financial effect of collateral held assecurity and other credit; and

(c) Information about the credit quality of financial assetsthat are neither past due nor impaired; and

(d) the carrying amount of financial assets that wouldotherwise be past due or impaired whose terms havebeen renegotiated.

IFRS30p43 22. Disclose by class of financial instrument:

(a) the amount that best represents its maximum exposureto credit risk at the end of the reporting period withouttaking account of any collateral held or other creditenhancements (that is, netting agreements that do notqualify for offset in accordance with PBE IPSAS 28);

(b) in respect of the amount disclosed in (a) above, adescription and the financial effect of collateral held assecurity and other credit;

(c) information about the credit quality of financial assetsthat are neither past due nor impaired; and

(d) the carrying amount of financial assets that wouldotherwise be past due or impaired whose terms havebeen renegotiated.

30p44 23. Disclose by class of financial asset:

(a) an analysis of the age of financial assets that are pastdue as at the end of the reporting period but notimpaired;

(b) an analysis of financial assets that are individuallydetermined to be impaired as at the end of the

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reporting period, including the factors the entityconsiders in determining that they are impaired; and

(c) for the amounts disclosed in (a) and (b) above, adescription of collateral held as security and othercredit enhancements, and, unless impracticable, anestimate of their fair value.

E11 PBE FRS 48 Service Performance Reporting

FRS48p48 1. Effective date: Periods beginning on or after 1 January 2021.Earlier application is permitted.

2. Scope: PBE FRS 48 applies to all Tier 1 and Tier 2 not-for-profit public benefit entities and Tier 1 and Tier 2 publicsector public benefit entities required by legislation toprovide information in respect of service performance inaccordance with GAAP.

FRS48p6 3. Present service performance information that is useful foraccountability and decision-making purposes in the samegeneral purpose financial report as the financial statements.Presentation of service performance information togetherwith financial statements enables users to makeassessments of the entity’s performance.

FRS48p7 4. In selecting and presenting service performance informationin a general purpose financial report apply the qualitativecharacteristics of information and the pervasive constraintson information identified in the Public Benefit Entities’Conceptual Framework (PBE Conceptual Framework).Application of the qualitative characteristics andappropriate balancing of the constraints on informationresults in service performance information that isappropriate and meaningful to the users of general purposefinancial reports.

FRS48p11 5. Except as otherwise required by legislation, present serviceperformance information for the same reporting entity andreporting period as the financial statements.

FRS48p14 6. Judgement is required in deciding how much information toprovide about the entity’s service performance in the currentreporting period and how much information to provideabout progress towards its long-term objectives. Inreporting on its current period’s service performance anentity is likely to need to provide information that relates toprevious periods or future periods (such as trend data) toprovide context.

FRS48p15 7. Service performance information shall:

(a) provide users with sufficient contextual information tounderstand why the entity exists, what it intends toachieve in broad terms over the medium to long term,and how it goes about this; and

(b) provide users with information about what the entityhas done during the reporting period in workingtowards its broader aims and objectives, as described in(a) above.

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FRS48p18 8. In providing the contextual information required byquestion 7(a), explain the main ways in which serviceperformance activities are carried out. For example:

(a) delivering goods and services directly to individuals,entities or groups (including members);

(b) working together with other entities that share commonobjectives;

(c) contracting with other entities to deliver goods andservices on their behalf; or

(d) making grants to other individuals or entities.

FRS48p20 9. In reporting on what an entity has done during the reportingperiod provide users with an appropriate and meaningfulmix of performance measures and/or descriptions for thereporting period. The performance measures and/ordescriptions used to communicate service performance maybe:

(a) quantitative measures: Examples of quantitativemeasures are the quantity of goods and services, thecost of goods and services, the time taken to providegoods and services, levels of satisfaction using a ratingscale on a questionnaire or survey, and numericalmeasures for service performance objectives or goals;

(b) qualitative measures: Examples of qualitative measuresare descriptors such as compliance or non-compliancewith a quality standard, ratings such as high, mediumor low, or ratings assigned by experts; or

(c) qualitative descriptions: Examples of qualitativedescriptions are those based on participantobservations, open-ended questions on interviews andsurveys and case studies. For example, how did anentity’s service performance activities change the well-being and circumstances of a client group?

FRS48p26 10. Performance measures and/or descriptions are more usefulwhen they are accompanied by comparisons (for example,comparisons over time (trend data), comparisons bypopulation or provider subgroups, internationalcomparisons and comparisons against a target or standard).

FRS48p27 11. If an entity determines that reporting on goods and servicesdelivered provides appropriate and meaningful serviceperformance information, performance measures and/ordescriptions for goods and services may include:

(a) the quantity of the goods and services;

(b) the quality of the goods and services;

(c) the timeframe over which the goods and services wereproduced;

(d) the physical location where the goods and services weredelivered; and

(e) the cost of the goods and services (see paragraph 28)

FRS48p28 12. In reporting on the cost of goods and services there aresome important considerations. Financial statements andservice performance information are both importantcomponents of a public benefit entity’s general purposefinancial report. The service performance information needsto be linked to the financial statements to convey a coherentpicture about the performance of an entity. This link isgenerally made, where practicable and appropriate, by

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reporting on the cost of goods and services. An entityreporting on the cost of goods and services shall

(a) provide a reconciliation between the expenses in thefinancial statements and the total goods and servicescosts reported in the service performance information;and

(b) where appropriate, an acknowledgement of the use ofdonated goods or services which have not beenrecognised in the financial statements. In some cases,for example where an entity relies heavily on donatedgoods and services, information on how donatedresources have contributed to the entity’s serviceperformance may be more useful than cost informationin providing an overall picture of the entity’sperformance.

FRS48p29 13. Clearly identify the service performance informationpresented in accordance with PBE FRS 48.

FRS48p30 14. It may be helpful to present the information required by thisStandard as answers to questions such as Who are we?, Whydo we exist?, What did we do? and How did we perform?

FRS48p31 15. PBE FRS 48 does not prescribe the format of serviceperformance information. Develop a format that best meetsthe information needs of users. Information may, forexample, be presented in the form of graphs, tables,narrative, infographics, explanatory comments in ‘pop-up’boxes or similar.

FRS48p32 16. The service performance information and the financialstatements may be cross-referenced so that users can assessthe service performance information within the context ofthe financial statements.

FRS38p33 17. In presenting service performance information inaccordance with PBE FRS 48 information may beincorporated, by cross-reference, outside the generalpurpose financial report. The use of cross-referencing ispermitted subject to the following requirements.

(a) it is still possible to identify the complete set of serviceperformance information presented in accordance withPBE FRS 48.

(b) locating the information elsewhere enhances theunderstandability of the general purpose financialreport as a whole and the service performanceinformation remains understandable and fairlypresented.

(c) the cross-referenced information is available to users ofthe service performance information on the same termsas the general purpose financial report and at the sametime.

FRS38p34 18. Incorporating service performance information by cross-reference enhances the understandability of the serviceperformance information if it:

(a) links related information together so that therelationships between items of information are clear;and/or

(b) reduces duplication of information.

FRS48p35 19. If cross-referencing is applied in accordance with question17 above:

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(a) disclose, together with the statement of compliance inaccordance with paragraph 28 of PBE IPSAS 1Presentation of Financial Reports, a list of cross-referenced information that forms part of a completeset of service performance information in accordancewith PBE FRS 48;

(b) depict cross-referenced information as beinginformation prepared in accordance with PBE FRS 48(and audited if applicable);

(c) make the cross-referencing direct and precise as towhat it relates to; and

(d) ensure cross-referenced information remainsunchanged and available over time at the cross-referenced location.

FRS48p37 20. An entity shall report comparative information in respect ofthe preceding period. An entity may also be required bylegislation, or may elect, to report comparative informationin respect of previously published prospective serviceperformance information. An entity shall reportcomparative information for all amounts reported in thecurrent period and, where relevant, for the narrative anddescriptive information reported in the current period.Explanations for major variances shall be given.

FRS48p40 21. An entity shall report service performance informationconsistently. If an entity changes what it reports or how itreports its service performance information, it shall explainthe nature of those changes and their effect on the currentperiod’s service performance information.

FRS48p43 22. Correct material prior period errors, in the first serviceperformance information authorised for issue after thediscovery of the errors, by restating the comparativeinformation for any prior period(s) presented in which theerror occurred and disclosing an explanation of the error. Ifthe error relates solely to narrative information, anexplanation of the error shall be disclosed.

FRS48p44 23. Disclose those judgements that have the most significanteffect on the selection, measurement, aggregation andpresentation of service performance information reported inaccordance with PBE FRS 48 that are relevant to anunderstanding of the entity’s service performanceinformation.

1. Amendments to other PBE Standards

PBE IPSAS 1

1p154.10 1. Effective date: An entity shall apply the amendments to PBEIPSAS 1 when it applies PBE FRS 48.

1p20.1 2. A complete financial report comprises:

(a) a complete set of financial statements; and

(b) service performance information in accordance withPBE FRS 48, where this is required to be reported.

1p24.1 3. Where a comparison is presented, in the financialstatements report, of prospective financial information andactual financial information, such a comparison shall be inaccordance with the requirements of PBE IPSAS 1. Where acomparison is presented, in the financial report, ofprospective service performance information and actualservice performance information, such a comparison shallbe in accordance with the requirements of PBE FRS 48.

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1p25 4. Entities are encouraged to present additional information toassist users in assessing the performance of the entity, andits stewardship of assets, as well as making and evaluatingdecisions about the allocation of resources. This additionalinformation may include details about the entity’s outputsand outcomes in the form of (a) performance indicators, (b)statements of service performance, (c) programme reviews,and (d) other reports by management about the entity’sachievements over the reporting period.

1p28 5. An entity whose financial statements report compliescomply with Public Benefit Entity Standards (PBEStandards) shall make an explicit and unreserved statementof such compliance in the notes. Financial statementsreports shall not be described as complying with PBEStandards unless they comply with all the requirements ofPBE Standards.

1pRDR28.1 6. An entity whose financial statements report compliescomply with Public Benefit Entity Standards ReducedDisclosure Regime (PBE Standards RDR) shall make anexplicit and unreserved statement of such compliance in thenotes. Financial statements reports shall not be described ascomplying with PBE Standards unless they comply with allthe requirements of PBE Standards.

1p28.2 7. Disclose in the notes:

(a) the statutory basis or other reporting framework, if any,under which the financial statements report is areprepared; and

(b) a statement whether the financial statements and,where appropriate, service performance informationhave been prepared in accordance with generallyaccepted accounting practice (GAAP); and

1p32 8. When an entity departs from a requirement of a Standard inaccordance with PBE IPSAS 1 paragraph 31, it shall disclose:

(a) that management has concluded that the financialstatements report presents fairly the entity’s financialposition, financial performance, and cash flows, andservice performance;

1p46A,1 9. Materiality has an important role in guiding the selection ofservice performance information to be included in afinancial report. This is particularly so when an entitydelivers a wide range of goods and services.

1p46A.2 10. When making judgements about whether items of serviceperformance information are material, the following shouldbe considered:

(a) the users of financial reports and their informationneeds;

(b) how the qualitative characteristics affect presentationand disclosure (for example, service performanceinformation must be relevant, but the overall volume ofinformation must also be accessible in order for it to beunderstandable);

(c) how the nature and size of items of information, judgedin the surrounding circumstances, affect presentationand disclosure; and

(d) where financial and non-financial information that ismaterial should be presented and disclosed.

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1p47 11. Some PBE Standards specify information that is required tobe included in the financial statements, or elsewhere in thefinancial report, which include the notes. An entity need notprovide a specific disclosure required by a PBE Standard ifthe information resulting from that disclosure is notmaterial. This is the case even if the PBE Standard containsa list of specific requirements or describes them asminimum requirements. An entity shall also considerwhether to provide additional disclosures when compliancewith the specific requirements in PBE Standards isinsufficient to enable users of financial reports statements tounderstand the impact of particular transactions, otherevents and conditions on the entity’s financial position, andfinancial performance and, where appropriate, serviceperformance.

1p126.1 12. Service performance information provides users of financialreports with a basis to assess the service performance of theentity. PBE FRS 48 specifies which entities are required topresent service performance information in accordance withthat Standard and sets out requirements for the reporting ofservice performance information and related disclosures.

1p127 13. The notes shall:

(a) present information about the basis of preparation ofthe financial statements report and the specificaccounting policies used, in accordance withparagraphs 132–139;

(b) Disclose the information required by PBE Standardsthat is not presented on the face of the statement offinancial position, statement of comprehensive revenueand expense, statement of changes in net assets/equity,or cash flow statement, or within the serviceperformance information; and

(c) Provide additional information that is not presented onthe face of the statement of financial position,statement of comprehensive revenue and expense,statement of changes in net assets/equity, or cash flowstatement, or within the service performanceinformation, but that is relevant to an understanding ofany of them

1p128 14. Notes shall, as far as practicable, be presented in asystematic manner. In determining a systematic manner,the entity shall consider the effect on the understandabilityand comparability of its financial statements report. Eachitem on the face of the statement of financial position,statement of comprehensive revenue and expense,statement of changes in net assets/equity, and cash flowstatement, and within the service performance informationshall be cross-referenced to any related information in thenotes.

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