presentations on ifrs

8/4/2019 Presentations on Ifrs

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WELCOME


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INTERNATIONAL FINANCIALREPORTING STANDARDS (I F R S)


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WHY IFRS ?

A single set of accounting standards would

enable internationally to standardize

training and assure better quality on a

global screen, it would also permit

international capital to flow more freely,enabling companies to develop consistent

global practices on accounting problems.

It would be beneficial to regulators too, as

a complexity associated with needing tounderstand various reporting regimes

would be reduced.


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OBJECTIVES OF IFRS

to develop, in the public interest, a single set of high quality, understandable and

enforceable global accounting standards that require high quality, transparent andcomparable information in financial statements and other financial reporting to help

participants in the world's capital markets and other users make economic

decisions;

to promotethe use and rigorous application of those standards;

in fulfilling the objectives associated with (1) and (2), to take account of, as

appropriate, the special needs of small and medium-sized entities and emerging

economies.

to bring about convergence of national accounting standards and International

Accounting standards and IFRS to high quality solutions.


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SCOPE OF IFRS1.

IASB Standards areknown as International Financial Reporting Standards (IFRSs).

2. All International Accounting Standards (IASs) and Interpretations issued by the former

IASC (International Accounting Standard Committee) and SIC (Standard Interpretation

Committee) continue to beapplicable unless and until they are amended or withdrawn.

3. IFRSsapply to the general purpose financial statements and other financial reporting byprofit-oriented entities -- those engaged in commercial, industrial, financial, and similar

activities, regardless of their legal form.

4. Entitiesother than profit-oriented business entities may also find IFRSs appropriate.


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SCOPE OF IFRS

5. General purpose financial statements are intended to meet the common needsof shareholders, creditors, employees, and the public at large for informationabout an entity's financial position, performance, and cash flows.

6. Other financial reporting includes information provided outside financialstatements that assists in the interpretation of a complete set of financialstatements or improves users' ability to make efficient economic decisions.

7. IFRSapply to individual company and consolidated financial statements.

8. A complete set offinancial statements includes a balance sheet, an income

statement, a cash flow statement, a statement showing either all changes inequity or changes in equity other than those arising from investments by anddistributions to owners, a summary of accounting policies, and explanatorynotes.


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SCOPE OF IFRS9. If an IFRS allows both a 'benchmark' and an 'allowed alternative' treatment,

financial statements may be described as conforming to IFRS whichever treatmentis followed.

10. In developing Standards, IASB intendsnot to permit choicesin accountingtreatment. Further, IASB intends to reconsider the choices in existing IASs with a

view to reducing the number of those choices.

11. IFRS willpresent fundamental principles in bold face type and other guidance innon-bold type (the 'black-letter'/'grey-letter' distinction). Paragraphs of both typeshave equal authority.

12. Theprovision ofIAS 1 that conformity with IAS requires compliance with every

applicable IAS and Interpretation requires compliance with all IFRSs as well.
http://www.iasplus.com/standard/ias01.htmhttp://www.iasplus.com/standard/ias01.htm


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LIST OF IFRS

IFRS 1 First-time Adoption of International Financial Reporting Standards

IFRS 2 Share-based Payment

IFRS 3 Business Combinations

IFRS 4 Insurance Contracts

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

IFRS 6 Exploration for and evaluation of Mineral Resources

IFRS 7 Financial Instruments: Disclosures

IFRS 8 Operating Segments
http://www.caalley.com/iasb/IFRS1.pdfhttp://www.caalley.com/iasb/IFRS2.pdfhttp://www.caalley.com/iasb/IFRS3.pdfhttp://www.caalley.com/iasb/IFRS4.pdfhttp://www.caalley.com/iasb/IFRS5.pdfhttp://www.caalley.com/iasb/IFRS6.pdfhttp://www.caalley.com/iasb/IFRS7.pdfhttp://www.caalley.com/iasb/IFRS8.pdfhttp://www.caalley.com/iasb/IFRS8.pdfhttp://www.caalley.com/iasb/IFRS7.pdfhttp://www.caalley.com/iasb/IFRS6.pdfhttp://www.caalley.com/iasb/IFRS5.pdfhttp://www.caalley.com/iasb/IFRS4.pdfhttp://www.caalley.com/iasb/IFRS3.pdfhttp://www.caalley.com/iasb/IFRS2.pdfhttp://www.caalley.com/iasb/IFRS1.pdf


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FRAMEWORK FOR THE PREPARATION AND

PRESENTATION OF FINANCIAL STATEMENTS

TheIASB Framework was approved byIASC Boardin April, 1989 for publicationin July 1989, and adopted by the IASB in April, 2001.

This Framework sets out the concepts that underlie the preparation and presentationof financial statements for external users.

TheFramework deals with:

The objective of financial statements;

The qualitative characteristics that determine the usefulness of information infinancial statement;

The Definition, recognition and measurement of the elements from whichfinancial statements are constructed; and

Concept ofcapital and capital maintenance.


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The Objective of Financial statements is to provide useful information to

users of financial statements in making economic decision.

Financial Statements arepreparedto provide information on FinancialPosition, Operating Performance and changes in financial position of anentity

Financial Statements are normally prepared on the assumption that entity isa going concern and will continue in operation for the foreseeable future,

and prepared on accrual basis of accounting.

The four Qualitative characteristics are Understandability, relevance,reliability and comparability are the attributes that make the financialinformation useful to users.

The elements directly related to the measurement of financial position areassets, liabilities and equity.


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An item that meets the definition of an element should be recognized if:

it is probable that any future economic benefit associated the item will flow to orfrom the entity.

the item has a cost or value that can be measured with reliability.

Measurementis the process of determining the monetary amounts at which eachelement in the financial statements are to be recognized and carried in the BalanceSheet and Income statement.

The concept ofcapital maintenance is concerned with how an entity defines thecapital that it seeks to maintain. It provides the linkage between the concepts of capitaland the concepts of profit because it provides the point of reference by which profit is

measured.


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OBJECTIVE OF THE STANDARD:

The objective of this IFRS is to ensure that an entitysfirst IFRSfinancial statements, and its interim financial reportsfor part of the

period covered by those financial statements, contain high qualityinformation that:

it istransparent for users andcomparable over all the periods presented.

Provides asuitable starting pointfor accounting under InternationalFinancial Reporting Standards (IFRS); and

Can be generated at acostthat does notexceed the benefits to users.

IFRS -1 : FIRST TIME ADOPTION OFI F R S


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POINTS:

An entity shall prepare and present anopening IFRS statement of financial position

at thedate of transition to IFRSs. This is the starting point for its accounting underIFRSs.

An entity shall prepare anopening IFRS balance sheetat the date of transition toIFRSs. This is the starting point for its accounting under IFRSs. An entityneed notpresent its opening IFRS balance sheet in its first IFRS financial statements.

In general, the IFRS requires an entity tocomply with each IFRS effective at the endof its first IFRS reporting period. In particular, the IFRS requires an entity to do thefollowing in the opening IFRS statement of financial position that it prepares as astarting point for its accounting under IFRSs:

recognize all assets and liabilities whose recognition is required by IFRSs.

not to recognize items as assets or liabilities if IFRSs do not permit such recognition;

IFRS-1


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IFRS-1 reclassify items that it recognized under previous GAAP as one type of asset,

liability or component of equity, but are different type of asset, liability orcomponent of equity under IFRSs.

Apply IFRSs in measuring all recognized assets and liabilities.

The IFRS grants limited exemptions from these requirements in specifiedareas where the cost of complying with them would be likely to exceed the

benefits to users of financial statements.

The IFRS alsoprohibits retrospective application of IFRSs in some areas;particularly where retrospective application would require judgments bymanagement about past conditions after the outcome of a particulartransaction is already known.

The IFRS requiresdisclosures that explain how the transition from previousGAAP to IFRSs affected the entities reported financial position, financialperformance and cash flows.


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OBJECTIVE OF THIS STANDARD:

The objective of this IFRS is tospecify the financial reporting by an entitywhen it undertakes a share-based payment transaction.

In particular, it requires an entity toreflect in its profit or loss and financial

position the effects of share-based payment transactions, including expenses

associated with transactions in whichshare optionsare granted to employees.

IFRS -2 : SHARE-BASED PAYMENTS


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POINTS:

The IFRS requires an entity torecognize share-based paymenttransactions in its financial statements, including transactionswith employees or other parties to be settled in cash, otherassets, or equity instruments of the entity.

There areno exceptions to the IFRS, other than for

transactions to which other Standards apply.

Thisalso applies to transfers of equity instruments of theentitys parent, or equity instruments of another entity in thesame group as the entity, to parties that have supplied goods or

services to the entity.

IFRS-2


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The IFRSsets out measurement principles andspecificrequirements forthree types of share-based payment

transactions:

(a) equity-settledshare-based payment transactions, in which the entityreceives goods or services as consideration for equity instruments ofthe entity (including shares or share options);

(b)cash-settledshare-based payment transactions, in which the entityacquires goods or services by incurring liabilities to the supplier ofthose goods or services foramounts that are based on the price (orvalue) of the entitys shares or other equity instruments of the entity;and

(c) transactions in which the entity receives or acquires goods or servicesand the terms of the arrangement provide either the entity or thesupplier of those goods or services with a choice of whether the entitysettles the transaction in cash or by issuing equityinstruments.

IFRS-2


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For equity-settled share-based payment transactions, the IFRS requires an entity tomeasurethe goods or services received,and the corresponding increase in equity, directly, at the fairvalue of the goods or services received, unless that fair value cannot be estimated reliably.

If the entitycannot estimate reliably the fair value of the goods or services received, theentity is required tomeasure their value, and thecorresponding increase in equity,indirectly, by reference to the fair value of the equity instruments granted. Furthermore:

(a) fortransactions with employees andothers providing similar services, the entity isrequired tomeasure the fair value of the equity instruments granted, because it is

typically not possible to estimate reliably the fair value of employee services received.The fair value of the equity instruments granted is measuredat grant date.

(b) for transactions withparties other than employees (and those providing similarservices), there is a rebut table presumption that the fair value of the goods or servicesreceived can be estimated reliably. That fair value is measured at thedate the entityobtains the goods or the counterparty renders service. In rare cases, if the presumption isrebutted, the transaction is measured by reference to the fair value of the equity

instruments granted, measured at the date the entity obtains the goods orthe counterparty renders service.

IFRS-2


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(c) for goods or services measured by reference to the fair value of the equityinstruments granted, the IFRS specifies that vesting conditions, other thanmarket conditions, are not taken into account when estimating the fair value

of the shares or options atthe relevant measurement date (as specified above).Instead, vesting conditions are taken into account by adjusting the number ofequity instruments included in the measurement of the transaction amount sothat, ultimately, the amount recognized for goods or services received asconsideration for the equity instruments granted is based on the number ofequity instruments that eventually vest. Hence, on a cumulative basis, noamount is recognized for goods or services received if the equity instruments

granted do not vest because of failure to satisfy a vesting condition (otherthan a market condition).

(d) the IFRS requires thefair value of equity instruments granted to bebased onmarket prices, if available, and to take into account the terms and conditionsupon which those equity instruments were granted.In the absence of marketprices, fair value is estimated, using a valuation technique to estimate what

the price of those equity instruments would have been on the measurementdate in an arms length transaction between knowledgeable,willing parties.

IFRS-2


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(e) the IFRS also sets out requirements if the terms and conditions of anoption

or share grant are modified(e.g. an option is reprised) or if a grant is

cancelled, repurchased or replaced with another grant of equity instruments.

For example, irrespective of any modification, cancellation or settlement of a

grant of equity instruments to employees, the IFRS generally requires the

entity to recognize, as a minimum, the services received measured at the

grant date fair value of the equity instruments granted.

For cash-settled share-based payment transactions, the IFRS requires an entity to

measure the goods or services acquired and the liability incurred at the fair value

of the liability. Until the liability is settled, the entity is required tore measure

the fair value of the liability at each reporting date and at the date of settlement,

with any changes in value recognized in profit or loss for the period.

IFRS-2


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For share-based payment transactions in which the terms of the arrangementprovide either the entity or the supplier of goods or services with a choice ofwhether the entity settles the transaction in cash or by issuing equity instruments,the entity is required to account for that transaction, or the components of thattransaction, as a cash-settled share-based payment transaction if, and to the extentthat, the entity has incurred a liability to settle in cash (or other assets), or as anequity-settled share-based payment transaction if, and to the extent that, no suchliability has been incurred.

The IFRS prescribes various disclosure requirements to enable users of financial

statements to understand:

the nature and extent of share-based payment arrangements that existedduringthe period;

how thefair value of the goods or services received, or the fair value of theequity instruments granted, during the period was determined; and

the effect of share-based payment transactions on the entitys profit or loss forthe period and on its financial position.

IFRS-2


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OBJECTIVE OF THIS STANDARD:

The objective of the IFRS is to enhance the relevance, reliability andcomparability of the information that an entity provides in its financial statementsabout abusiness combination and its effects. It does that by establishing principlesand requirements for how an acquirer:

(a) recognizes and measures in its financial statements the identifiableassetsacquired, the liabilitiesassumedand any non-controlling interest in theacquire;

(b) recognizes and measures thegoodwillacquired in the business combinationor a gain from a bargain purchase; and

(c) determines what information to disclose to enable users of thefinancial statements to evaluate the nature and financial effectsof the business combination.

IFRS -3 : BUSINESS COMBINATIONS


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POINTS:

Core principle

An acquirer of a businessrecognises the assets acquired and liabilitiesassumed at theiracquisition-date fair values and discloses information thatenables users to evaluate the nature and financial effects of the acquisition.

Applying the acquisition method

A business combination must beaccountedfor by applying theacquisitionmethod, unless it is a combination involving entities or businesses undercommon control. One of the parties to a business combination can always beidentified as the acquirer, being the entity that obtains control of the otherbusiness (the acquiree). Formations of a joint venture or the acquisition of an

asset or a group of assets that does not constitute a business are not businesscombinations.

IFRS-3


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TheIFRS establishes principles for recognising and measuring theidentifiable assets acquired, the liabilities assumed and any non-controlling

interest in the acquiree. Any classifications or designations made inrecognising these items must be made in accordance with the contractualterms, economic conditions, acquirers operating or accounting policies andother factors that exist at the acquisition date.

Each identifiable asset and liability is measured at its acquisition-datefair

value. Any non-controlling interest in an acquiree is measured at fair valueor as the non-controlling interests proportionate share of the acquireesnet identifiable assets.

IFRS-3


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The IFRS provides limited exceptions to these recognition and measurementprinciples:

a) Leases and insurance contracts are required to be classified on the basis of thecontractual terms and other factors at the inception of the contract (or when theterms have changed) rather than on the basis of the factors that exist at theacquisition date.

b) Only thosecontingent liabilities assumed in a business combination that are apresent obligation and can be measured reliably are recognized.

c) Some assets and liabilities are required to be recognised or measured inaccordance withother IFRSs, rather than at fair value. The assets andliabilities affected are those falling within the scope of IAS 12Income Taxes,

IAS 19Employee Benefits, IFRS 2 Share-based Paymentand IFRS 5Non-current Assets Held for Sale and Discontinued Operations.

IFRS-3


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(d) There are special requirements for measuringa reacquired right.

(e)Indemnification assets are recognised and measured on a basis that is

consistent with the item that is subject to the indemnification, even if thatmeasure is not fair value.

The IFRS requires the acquirer, having recognised the identifiable assets, theliabilities and any non-controlling interests,to identify any difference between:

a) the aggregate of the consideration transferred, any non-controlling interest inthe acquiree and, in a business combination achieved in stages, theacquisition-date fair value of the acquirers previously held equity interest inthe acquiree; and

b) the net identifiable assets acquired.

The difference will, generally, berecognised as goodwill. If the acquirerhas made a gain from a bargain purchase that gain is recognisedin profit or loss.

IFRS-3


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Theconsideration transferred in a business combination (including any contingentconsideration) is measured at fair value.

In general, an acquirer measures and accounts for assets acquired and liabilitiesassumed or incurred in a business combination after the business combination hasbeen completed in accordance with other applicable IFRSs. However, the IFRSprovides accounting requirements for reacquired rights, contingent liabilities,contingent consideration and indemnification assets.

Disclosure

The IFRS requires the acquirer to disclose information that enables users of itsfinancial statements to evaluate thenature and financial effect of businesscombinations that occurred during the current reporting period or after thereporting date but before the financial statements are authorised for issue.

After a business combination, the acquirer mustdisclose any adjustments

recognisedin the current reporting period that relate to businesscombinations that occurred in the current or previous reportingperiods.

IFRS-3


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OBJECTIVE OF STANDARD:

The objective of this IFRS is tospecify the financial reportingforinsurance contracts by any entity that issues such contracts (described

in this IFRS as an insurer) until the Board completes the second phaseof its project on insurance contracts. In particular, this IFRS requires:

limited improvements to accounting by insurers for insurancecontracts.

disclosure that identifies and explains theamountsin an insurersfinancial statements arising from insurance contracts and helpsusers of those financial statements understand the amount, timingand uncertainty of future cash flows frominsurance contracts.

IFRS -4 : INSURANCE CONTRACTS


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POINTS:

An insurance contract is a contract under which one party (the insurer)accepts significant insurance risk from another party (the policyholder) byagreeing to compensate the policyholder if a specified uncertain future event(the insured event) adversely affects the policyholder.

The IFRSapplies to all insurance contracts (including reinsurance contracts)

that an entity issues and to reinsurance contracts that it holds, except forspecified contracts covered by other IFRSs. Itdoes not apply to other assetsand liabilities of an insurer, such as financial assets and financial liabilitieswithin the scope of IAS 39 Financial Instruments: Recognition and

Measurement. Furthermore, it does not address accounting by policyholders.

IFRS-4


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The IFRS exempts an insurer temporarily (ie during phase I of this

project) from some requirements of other IFRSs, including the requirementto consider the Frameworkin selecting accounting policies for insurancecontracts. However, the IFRS:

a. prohibits provisions for possible claims undercontracts that are notinexistence at the end of the reporting period (such as catastrophe and

equalisation provisions).

b. requires atest for the adequacy of recognised insurance liabilities andan impairment test for reinsurance assets.

c. requires an insurer tokeep insurance liabilities in its statement offinancial position until they are discharged or cancelled, or expire, andto present insurance liabilities without offsetting them against relatedreinsurance assets.

IFRS-4


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IFRS-4 The IFRS permits an insurer tochange its accounting policies for

insurance contracts only if, as a result, its financial statements present

information that is more relevant and no less reliable, or more reliableand no less relevant. In particular, an insurer cannot introduce any of thefollowing practices, although it may continue using accounting policiesthat involve them:

a. measuring insurance liabilities on an undiscounted basis.

b. measuring contractual rights to future investment managementfeesat an amount that exceeds their fair value as implied by a comparisonwith current fees charged by other market participants for similar

services.

a. using non-uniform accounting policies for the insurance liabilities ofsubsidiaries.


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The IFRS permits the introduction of an accounting policy that involves remeasuring designated insurance liabilities consistently in each period to

reflect current market interest rates (and, if the insurer so elects, other currentestimates and assumptions). Without this permission, an insurer would havebeen required to apply the change in accounting policies consistently to allsimilar liabilities.

The IFRS requiresdisclosure to help users understand:

theamounts in the insurers financial statements thatarise from insurancecontracts.

the amount, timing and uncertainty offuture cash flows from insurance contracts

IFRS-4


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The objective of this IFRS is tospecify the accounting for assets held forsale, and thepresentation and disclosure of discontinued operations. Inparticular, the IFRS requires:

a. assets that meet thecriteria to be classifiedas held for sale to bemeasured at the lower of carrying amount and fair value less costs tosell, and depreciation on such assets to cease; and

b. assets that meet the criteria to be classified as held for sale to bepresented separately in the statement of financial position and the

results of discontinued operations to be presented separately in thestatement of comprehensive income.

IFRS -5 : NON-CURRENT ASSETS HELD FORSALE AND DISCONTINUED OPERATIONS


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POINTS:

The IFRS:

a) adoptsthe classificationheld for sale.

b) introduces the concept of adisposal group, being a group of assets to bedisposed of, by sale or otherwise, together as a group in a single transaction,and liabilities directly associated with those assets that will be transferred inthe transaction.

c) classifies an operation as discontinued at the date the operation meets thecriteria to be classified as held for sale or when the entity has disposed of theoperation.

An entity shallclassifya non-current asset (or disposal group) as heldfor sale if its carrying amount will be recovered principally through asale transaction rather than through continuing use.

IFRS-5


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present condition subject only to terms that are usual and customary forsales of such assets (or disposal groups) and its sale must behighly

probable.

For thesale to be highly probable, the appropriate level of managementmust be committed to a plan to sell the asset (or disposal group), and anactive program to locate a buyer and complete the plan must have been

initiated. Further, the asset (or disposal group) must be actively marketedfor sale at a price that is reasonable in relation to its current fair value. Inaddition, the sale should be expected to qualify for recognition as acompleted sale within one year from the date of classification, except aspermitted by paragraph 9, and actions required to complete the plan shouldindicate that it is unlikely that significant changes to the plan will be made

or that the plan will be withdrawn.

IFRS-5


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Adiscontinued operationis a component of an entity that either has beendisposed of, or is classified as held for sale, and

a) represents a separate major line of business or geographical area ofoperations,

b) is part of a single co-ordinated plan to dispose of a separate major line ofbusiness or geographical area of operations or

c) is a subsidiary acquired exclusively with a view to resale.

A component of an entity comprisesoperations and cash flows

that can beclearly distinguished, operationally and for financialreporting purposes, from the rest of the entity. In other words, acomponent of an entity will have been a cash-generating unit or a groupof cash-generating units while being held for use.

An entity shallnot classify as held for sale a non-current asset (ordisposal group) that is to be abandoned. This is because itscarrying amount will be recovered principallythrough continuing use.

IFRS-5


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The objective of this IFRS is to specify thefinancial reporting for the exploration for andevaluation of mineral resources.

POINTS:

Exploration and evaluation expenditures are expenditures incurred by an entity inconnection with the exploration for and evaluation of mineral resourcesbefore the technicalfeasibility and commercial viability of extracting a mineral resource are demonstrable.

Exploration for and evaluation of mineral resources is the search for mineral resources,including minerals, oil, natural gas and similar non-regenerative resources after the entity hasobtained legal rights to explore in a specific area, as well as the determination of the technicalfeasibility and commercial viability of extracting the mineral resource.

Exploration and evaluation assets are exploration and evaluation expendituresrecognized as assetsin accordance with the entitys accounting policy.

IFRS-6 : EXPLORATION FOR ANDEVALUATION OF MINERALS


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The IFRS:

a) permits an entity to develop an accounting policy for exploration andevaluation assets without specifically considering the requirements ofparagraphs 11 and 12 of IAS 8. Thus, an entity adopting IFRS 6 maycontinue to use the accounting policies applied immediately beforeadopting the IFRS. This includes continuing to use recognition andmeasurement practices that are part of those accounting policies.

b) requires entities recognising exploration and evaluation assets toperforman impairment teston those assets when facts and circumstances suggestthat the carrying amount of the assets may exceed their recoverableamount.

a) varies the recognition of impairment from that in IAS 36 but measures the

impairment in accordance with that Standard once the impairment isidentified.

IFRS-6


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An entity shall determine an accounting policy for allocating explorationand evaluation assets to cash-generating units or groups of cash-generating

units for the purpose ofassessing such assets for impairment. Each cash-generating unit or group of units to which an exploration and evaluationasset is allocated shall not be larger than an operating segment determinedin accordance with IFRS 8 Operating Segments.

Exploration and evaluation assets shall be assessed for impairment whenfacts and circumstances suggest that the carrying amount of an explorationand evaluation asset may exceed its recoverable amount. When facts andcircumstances suggest that the carrying amount exceeds the recoverableamount, an entity shall measure, present and disclose any resultingimpairment loss in accordance withIAS 36.

IFRS-6


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One or more of thefollowing facts and circumstances indicate that an entity should testexploration and evaluation assets for impairment (the list is not exhaustive):

a. theperiodfor which the entity has the right to explore in the specific area has expiredduring the period or will expire in the near future, and is not expected to be renewed.

b. substantive expenditure on further exploration for and evaluation of mineral resourcesin the specific area isneither budgeted nor planned.

c. exploration for and evaluation of mineral resources in the specific area have not led to

the discovery ofcommercially viable quantities of mineral resources and the entity hasdecided to discontinue such activities in the specific area.

d. sufficient data exist to indicate that, although a development in the specific area is likelyto proceed,the carrying amount of the exploration and evaluation asset is unlikely to berecoveredin full from successful development or by sale.

An entity shalldisclose information that identifies and explains the amounts recognised in itsfinancial statements arising from the exploration for and valuation of mineral resources.

IFRS-6


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The objective of this IFRS is to require entities to provide disclosures in theirfinancial statements that enable users to evaluate:

a) thesignificance of financial instrumentsfor the entitys financial position andperformance; and

a) the nature and extent ofrisks arising from financial instruments to which theentity is exposed during the period and at the reporting date, and how the entitymanages those risks. The qualitative disclosuresdescribe managementsobjectives, policies and processes for managing those risks. The quantitativedisclosures provide information about the extent to which the entity is exposed torisk, based on information provided internally to the entity's key managementpersonnel. Together, these disclosures provide an overview of the entity's use offinancial instruments and the exposures to risks they create.

IFRS-7 : FINANCIAL INSTRUMENTS:DISCLOSURE


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POINTS:

TheIFRS applies to all entities, including entities that have few financial

instruments (eg a manufacturer whose only financial instruments areaccounts receivable and accounts payable) and those that have manyfinancial instruments (eg a financial institution most of whose assets andliabilities are financial instruments).

When thisIFRS requires disclosures by class of financial instrument, an

entity shall group financial instruments into classes that are appropriate tothe nature of the information disclosed and that take into account thecharacteristics of those financial instruments. An entity shall providesufficient information to permit reconciliation to the line items presented inthe balance sheet.

The principles in this IFRScomplement the principles for recognising,measuring and presenting financial assets and financial liabilities in IAS 32Financial Instruments: Presentation and IAS 39 Financial Instruments:

Recognition and Measurement.

IFRS-7


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Core principleAn entity shall disclose information to

enable users of its financial statements to evaluate the nature

and financial effects of the business activities in which it

engages and the economic environments in which it operates.

IFRS-8 : OPERATING SEGMENTS


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POINTS:

ThisIFRS shall apply to:

(a) the separate or individual financial statements of an entity: whose debt or equity instruments are traded in a public market (a domestic or

foreign stock exchange or an over-the-counter market, including local and regionalmarkets), or

that files, or is in the process of filing, its financial statements with a securities

commission or other regulatory organisation for the purpose of issuing any class ofinstruments in a public market; and

(b) the consolidated financial statements of a group with a parent: whose debt or equity instruments are traded in a public market (a domestic or foreign

stock exchange or an over-the-counter market, including local and regional markets), or

that files, or is in the process of filing, the consolidated financial statements with asecurities commission or other regulatory organisation for the purpose of issuing anyclass of instruments in a public market.

IFRS-8


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The IFRS specifies how an entity should report information about its

operating segments in annual financial statements and, as a consequentialamendment to IAS 34Interim Financial Reporting, requires an entity to

reportselected information about its operating segments in interimfinancial reports. It also sets out requirements for related disclosures aboutproducts and services, geographical areas and major customers.

The IFRS requires an entityto report financial and descriptiveinformation about its reportable segments. Reportable segments are

operating segments or aggregations of operating segments that meetspecified criteria.

Operating segments are components of an entity about which separatefinancial information is available that is evaluated regularly by the chiefoperating decision maker in deciding how to allocate resources and in

assessing performance. Generally, financial information is required to bereported on the same basis as is used internally for evaluating operatingsegment performance and deciding how to allocate resources tooperating segments.

IFRS-8


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The IFRS requires an entity toreport a measure of operating segment

profit or loss and of segment assets. It also requires an entity to report a

measure ofsegment liabilities and particular income and expense items ifsuch measures are regularly provided to the chief operating decision maker.

It requiresreconciliations of total reportable segment revenues, total profit

or loss, total assets, liabilities and other amounts disclosed for reportable

segments to corresponding amounts in the entitys financial statements.

IFRS-8


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The IFRS requires an entity to report information about the revenuesderived from its products or services (or groups of similar products andservices), about the countries in which it earns revenues and holds assets,and about major customers, regardless of whether that information is usedby management in making operating decisions. However, the IFRS doesnot require an entity to report information that is not prepared for internaluse if the necessary information is not available and the cost to develop itwould be excessive.

The IFRS also requires an entity togive descriptive information about theway theoperating segments were determined, the products and servicesprovided by the segments, differences between themeasurements used inreporting segment information and those used in the entitys financialstatements, and changes in the measurement of segment amounts fromperiod to period.

IFRS-8


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CA VENKATA SUNEEL PERUMALLA


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Thank you

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