Operational Paper F1 Financial Reporting and Taxation For exams in 2015

Chapter 2 Presentation of published financial statements Introduction to IAS 1 The statement of financial position The statement of profit or loss and other comprehensive income The statement of changes in equity Introduction to IAS 8 Introduction to IFRS 8

The statement of financial position

The statement of financial position (2) (cont’d)

The statement of financial position (3) (cont’d)

The statement of P/L and OCI

The statement of P/L and OCI(2) (cont’d)

The statement of changes in equity

IAS 8: Accounting policy, changes in accounting estimates and errors Company adopts a different accounting principle. Retrospective adjustment. Cumulative effect adjustment to beginning retained earnings. Examples include: Change from FIFO to weighted average cost. Change from the percentage-of-completion to the completed-contract method.

IAS 8: Accounting policy, changes in accounting estimates and errors 2018/8/7 IAS 8: Accounting policy, changes in accounting estimates and errors Changes in Estimate Accounted for in the period of change and future periods. Not handled retrospectively. Not considered errors. Examples include: Useful lives and residual values of depreciable assets. Allowance for uncollectible receivables. Inventory obsolescence.

IAS 8: Accounting policy, changes in accounting estimates and errors 2018/8/7 IAS 8: Accounting policy, changes in accounting estimates and errors Corrections of Errors Result from: mathematical mistakes. mistakes in application of accounting principles. oversight or misuse of facts.例如：固定资产盘盈 Corrections treated as prior period adjustments. Adjustment to the beginning balance of retained earnings.

IFRS8: Operating segments 1. Introduction IFRS 8 Operating segments requires an entity to disclose information about each of its operating segments The purpose is to enable users of the 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.

IFRS8: Operating segments 2. Definition that engages in business activities from which it may earn revenues and incur expenses该组成部分能够在日常活动 中产生收入、发生费用。 whose operating results are regularly reviewed by the entity‘s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance 企业管理层能够定期评价该组成部分的 经营成果，以决定向其配置资源、评价其业绩。 for which discrete financial information is available企业能 够取得该组成部分的财务信息。 　　

IFRS8: Operating segments 3. How to define reportable segments （报告分部） segment information reflects the way that the entity is actually managed. An entity‘s reportable segments are those that are used in its internal management reports. Management may use more than one set of segment information. If management uses more than one set of segment information, disclosures should be based on the one that best enables users to understand the business and the environment in which it operates.

IFRS8: Operating segments 3. How to define reportable segments Operating segments can be combined into one reportable segment provided that they have similar characteristics.企业存在相似经济特征的两个或多个经营分 部，在同时满足下列条件时，可以合并为一个分部： (1) 各单项产品或劳务的性质相同或相似; (2)生产过程的性质相同或相似，包括采用劳动密集或资本密集方式组 织生产、使用相同或者相似设备和原材料、采用委托生产或加工方式 等; (3)产品或劳务的客户类型相同或相似，包括大宗客户、零散客户等; (4)销售产品或提供劳务的方式相同或相似，包括批发、零售、自产自 销、委托销售、承包等; (5)生产产品或提供劳务受法律、行政法规的影响相同或相似，包括经 营范围或交易定价机制等。

IFRS8: Operating segments 4. Quantitative thresholds(数量界限) An entity must separately report information about an operating segment that meets any of the following quantitative thresholds: its reported revenue, is 10% or more of the combined revenue of all operating segments (internal+external) its reported profit or loss is 10% or more of the greater, in absolute amount, of: - the combined reported profit of all operating segments - the combined reported loss of all operating segments its assets are 10% or more of the combined assets of all operating segments.

IFRS8: Operating segments At least 75% of the entity's external revenue should be included in reportable segments. So if the quantitative test results in segmental disclosure of less than this 75%, other segments should be identified as reportable segments until this 75% is reached.