International Financial Reporting Standards . - IAS Plus

IFRS Comp Ext (July 2006)Interpretations in issue at 30 June 2006InterpretationTitleEffective date*PagenumberIFRIC 1Changes in Existing Decommissioning,Restoration and Similar LiabilitiesAnnual periodsbeginning on orafter 1September2004IFRIC 2Members’ Shares in Co-operative Entitiesand Similar InstrumentsAnnual periodsbeginning on orafter 1 January2005IFRIC 4Determining whether an Arrangementcontains a LeaseAnnual periodsbeginning on orafter 1 January2006113IFRIC 5Rights to Interests arising fromDecommissioning, Restoration andEnvironmental Rehabilitation FundsAnnual periodsbeginning on orafter 1 January2006226IFRIC 6Liabilities arising from Participating in aSpecific Market – Waste Electrical andElectronic EquipmentAnnual periodsbeginning on orafter 1December2005227IFRIC 7Applying the Restatement Approachunder IAS 29 Financial Reporting inHyperinflationary EconomiesAnnual periodsbeginning on orafter 1 March2006176IFRIC 8Scope of IFRS 2Annual periodsbeginning on orafter 1 May200629IFRIC 9Reassessment of Embedded DerivativesAnnual periodsbeginning on orafter 1 June2006244SIC 7Introduction of the Euro1 June 1998146SIC 10Government Assistance - No SpecificRelation to Operating Activities1 August 1998144SIC 12Consolidation - Special Purpose EntitiesAnnualfinancialperiodsbeginning on orafter 1 July1999161SIC 13Jointly Controlled Entities - Non-MonetaryContributions by VenturersAnnualfinancialperiodsbeginning on orafter 1 January1999184viCompleted?110Not included in thisquestionnaire

IFRS Comp Ext (July 2006)InterpretationTitleEffective date*PagenumberCompleted?119,121SIC 15Operating Leases – IncentivesLease termsbeginning on orafter1 January 1999SIC 21Income Taxes - Recovery of RevaluedNon-Depreciable Assets15 July 200095SIC 25Income Taxes - Changes in the TaxStatus of an Entity or its Shareholders15 July 200096,97SIC 27Evaluating the Substance of TransactionsInvolving the Legal Form of a Lease31 December2001113SIC 29Disclosure – Service ConcessionArrangements31 December2001SIC 31Revenue – Barter Transactions InvolvingAdvertising Services31 December2001128SIC 32Intangible Assets – Website Costs25 March 2002242Not included in thisquestionnaire* Some Interpretations incorporate complex transitional provisions. Refer to the text of the Interpretations for details.vii

IFRS Comp Ext (July 2006)Summary of apparent non-compliance issuesWhen completing this questionnaire, the table below may be used to summarise areas of apparent noncompliance with IFRSs, and a description of action taken.IFRS RefDetails of apparent non-complianceviiiAction taken

Compliance questionnaire (July 2006)IFRS 1TQFirst-time Adoption of International Financial Reporting StandardsReferenceRecognition/measurement requirementYes / No / N/AThis section of the questionnaire addresses IFRS 1, which applies when anentity adopts IFRSs for the first time by an explicit and unreserved statementof compliance with IFRSs. IFRS 1 provides guidance regarding the transitionfrom previous GAAP to IFRSs. IFRS 1 requires the entity to prepare anopening IFRS balance sheet, which complies with all IFRSs (encompassing allIASs, IFRSs, SIC and IFRIC interpretations) effective at the reporting date forits first IFRS financial statements. IFRS 1 requires retrospective application inmost areas, with limited exemptions.SCOPE NOTEAn entity shall apply IFRS 1 in:a)its first IFRS financial statements; andb)each interim financial report, if any, that it presents under IAS 34 InterimFinancial Reporting, for part of the period covered by its first IFRSfinancial statements.An entity’s first IFRS financial statements are the first annual financialstatements in which the entity adopts IFRSs, by an explicit and unreservedstatement in those financial statements of compliance with IFRSs.Financial statements under IFRSs are an entity’s first IFRS financialstatements if, for example, the entity:a)presented its most recent previous financial statements:i)under national requirements that are not consistent with IFRSs inall respects;ii)in conformity with IFRSs in all respects, except that the financialstatements did not contain an explicit and unreserved statementthat they complied with IFRSs;iii)containing an explicit statement of compliance with some, but notall, IFRSs;iv)under national requirements inconsistent with IFRSs, using someindividual IFRSs to account for items for which nationalrequirements did not exist; orv)under national requirements, with a reconciliation of some amountsto the amounts determined under IFRSs;b)prepared financial statements under IFRSs for internal use only, withoutmaking them available to the entity’s owners or any other external users;c)prepared a reporting package under IFRSs for consolidation purposeswithout preparing a complete set of financial statements as defined inIAS 1, Presentation of Financial Statements; ord)did not present financial statements for previous periods.This Standard does not apply when, for example, an entity:a)stops presenting financial statements under national requirements,having previously presented them as well as another set of financialstatements that contained an explicit and unreserved statement ofcompliance with IFRSs;b)presented financial statements in the previous year under nationalrequirements and those financial statements contained an explicit andunreserved statement of compliance with IFRSs; orc)presented financial statements in the previous year that contained anexplicit and unreserved statement of compliance with IFRSs, even if theauditors qualified their audit report on those financial statements.1

Compliance questionnaire (July 2006)TQReferenceRecognition/measurement requirementYes / No / N/AThis IFRS does not apply to changes in accounting policies made by an entitythat already applies IFRSs. Such changes are the subject of:a)requirements on changes in accounting policies in IAS 8, AccountingPolicies, Changes in Accounting Estimates and Errors; andb)specific transitional requirements in other IFRSs.TAILORING QUESTIONSIf you answer “yes” to any of the tailoring questions below, please answer thecompliance questions relating to it.1AIs the entity a first time adopter of IFRSs in terms of IFRS 1?Note: If the response to this question is no, this section of the questionnaireneed not be completed.1BDid the entity enter into any business combinations before the date oftransition to IFRSs?1CHas the entity recognised items of property, plant and equipment in theopening IFRS balance sheet?1DHas the entity recognised items of investment property in the opening IFRSbalance sheet?1EHas the entity recognised intangible assets (other than goodwill) in theopening IFRS balance sheet?1FHas the entity recognised defined benefit retirement benefit obligations in theopening IFRS balance sheet?1GDoes retrospective application of IAS 21 result in any cumulative exchangedifferences to be recognised in the opening IFRS balance sheet?1HDid the entity recognise any compound financial instruments under previousGAAP?1IDid the entity become a first-time adopter later than its parent or an entity thathas significant influence or joint control over it?1JDid the entity become a first-time adopter later than its subsidiary, associate orjoint venture?1KDid the entity become a first-time adopter for its separate financial statementsearlier or later than for its consolidated financial statements?1LHas the entity recognised financial instruments, as defined under IAS 32 andIAS 39, in the opening IFRS balance sheet?1MHas the entity granted any equity instruments prior to the date of transition thatfall within the scope of IFRS 2?1NHas the entity entered into any insurance contracts?1ODid the entity have obligations to dismantle, remove and restore items ofproperty, plant and equipment at the date of transition to IFRSs?Note: Such obligations are referred to in IFRS literature as ‘decommissioning,restoration and similar liabilities’.1PDid the entity derecognise financial assets or financial liabilities under previousGAAP?1QDoes the entity apply hedge accounting or has the entity recognised anyderivatives in the opening IFRS balance sheet?2

Compliance questionnaire (July 2006)TQReferenceRecognition/measurement requirement1RHas the entity used estimates to measure assets and liabilities recognised inits opening IFRS balance sheet?1SWas the entity, at the date of transition to IFRSs, party to an arrangement,comprising a transaction or a series of related transactions, that did not takethe legal form of a lease but that conveyed a right to use an asset (e.g. an itemof property, plant or equipment) in return for a payment or series of payments?Yes / No / N/ADETAILED COMPLIANCE QUESTIONSOpening IFRS balance sheet1AIFRS 1.6Has the entity prepared an opening IFRS balance sheet in accordance withIFRS 1 at the date of transition to IFRSs?1AIFRS 1.6Has the entity identified its date of transition as the beginning of the earliestperiod for which it presents full comparative information under IFRSs in its firstIFRS financial statements?Note: An entity need not present its opening IFRS balance sheet in its firstIFRS financial statements.Accounting policies1AIFRS 1.7Has the entity used the same accounting policies in its opening IFRS balancesheet and throughout all periods presented in its first IFRS financialstatements?1AIFRS 1.7Do the accounting policies applied in the entity’s first IFRS financialstatements comply with each IFRS effective at the reporting date for its firstIFRS financial statements, except as specified in paragraphs 13 to 34 ofIFRS 1 (see below)?Note: An entity may apply a new IFRS that is not yet mandatory if it permitsearly application.1AIFRS 1.9Has the entity not applied the transitional provisions in other IFRSs, except asspecified in paragraphs 25D, 25F, 25G and 34B (see below)?1AIFRS 1.10Except as described in paragraphs 13 to 34 of IFRS 1, in its opening IFRSbalance sheet has the entity:1AIFRS 1.11a)recognised all assets and liabilities whose recognition is required byIFRSs;b)not recognised items as assets or liabilities if IFRSs do not permit suchrecognition;c)reclassified items that it recognised under previous GAAP as one type ofasset, liability or component of equity, but are a different type of asset,liability or component of equity under IFRSs; andd)applied IFRSs in measuring all recognised assets and liabilities?Has the entity recognised directly in retained earnings (or, if appropriate,another category of equity) at the date of transition to IFRSs), adjustments thatresult from differences between the accounting policies that the entity used inits opening IFRS balance sheet and those that it used for the same date usingits previous GAAP?Note: The adjustments are treated as adjustments to equity because theyarise from events and transactions before the date of transition toIFRSs.3

Compliance questionnaire (July 2006)TQReferenceRecognition/measurement requirementYes / No / N/AExemptions from other IFRSsBusiness combinations1BIFRS 1.15Has the entity applied the requirements in Appendix B to IFRS 1 (see below)to business combinations that the entity recognised before the date oftransition to IFRSs?1BIFRS 1.B1Has the entity considered the election not to apply IFRS 3 retrospectively topast business combinations (business combinations that occurred before thedate of transition to IFRSs)?Note: First-time adopters may elect not to apply IFRS 3, BusinessCombinations, retrospectively to business combinations that occurredbefore the date of transition to IFRSs.1BIFRS 1.B1If the entity has restated any past business combination to comply withIFRS 3, has it also done the following:a)restated all later business combinations;b)applied IAS 36 Impairment of Assets from the same date; andc)applied IAS 38 Intangible Assets from the same date?Note: For example, if an entity elects to restate a business combination thatoccurred on 30 June 2002, it shall restate all business combinationsthat occurred between 30 June 2002 and the date of transition toIFRSs and it shall also apply IAS 36 and IAS 38 from 30 June 2002.1BIFRS 1.B1AIf the entity does not apply IAS 21 The Effects of Changes in ForeignExchange Rates retrospectively to fair value adjustments and goodwill arisingin business combinations that occurred before the date of transition, has ittreated those fair value adjustments and goodwill as assets and liabilities ofthe entity rather than as assets and liabilities of the acquiree?Note: Therefore, those goodwill and fair value adjustments either are alreadyexpressed in the entity’s functional currency or are non-monetaryforeign currency items, which are reported using the exchange rateapplied under previous GAAP.1BIFRS 1.B1BIf the entity does apply IAS 21 retrospectively, has it applied IAS 21 to either:a)all business combinations that occurred before the date of transition toIFRSs; orb)all business combinations that the entity elects to restate to comply withIFRS 3, as permitted by paragraph B1 (see above)?Note: First-time adopters are not required to apply IAS 21 retrospectively tofair value adjustments and goodwill arising in business combinationsthat occurred before the date of transition to IFRSs. Where they electto apply these requirements retrospectively, it must be on one of thebases described in paragraph B1B.1BIFRS 1.B2If the entity has elected not to apply IFRS 3 retrospectively to past businesscombinations:a)Has the entity kept the same classification (as an acquisition by the legalacquirer, a reverse acquisition by the legal acquiree, or a uniting ofinterests) as its previous GAAP financial statements?4

Compliance questionnaire (July 2006)TQReferenceRecognition/measurement requirementb)Yes / No / N/AHas the entity recognised all its assets and liabilities at the date oftransition to IFRSs that were acquired or assumed in a past businesscombination, other than:i)some financial assets and financial liabilities derecognised underprevious GAAP (paragraph 27 of IFRS 1 – see below)?ii)assets, including goodwill, and liabilities that were not recognised inthe acquirer’s consolidated balance sheet under previous GAAPand also would not qualify for recognition under IFRSs in theseparate balance sheet of the acquiree (paragraphs B2(f)-B2(i) ofAppendix B to IFRS 1 – see below)?Has the entity recognised any resulting change arising from theabove by adjusting retained earnings (or, if appropriate, anothercategory of equity), unless the change results from the recognitionof an intangible asset that was previously subsumed within goodwill(see paragraph B2(g) (i) of Appendix B to IFRS 1)?c)Has the entity excluded from its opening IFRS balance sheet any itemrecognised under previous GAAP that does not qualify for recognition asan asset or liability under IFRSs?Has the entity accounted for the resulting change as follows:i)If the entity classified a past business combination as an acquisitionand recognised as an intangible asset an item that does not qualifyfor recognition as an asset under IAS 38, has the entity reclassifiedthat item (and, if any, the related deferred tax and minorityinterests) as part of goodwill (unless it deducted goodwill directlyfrom equity under previous GAAP, paragraphs B2(g)(i) and B2(i) ofAppendix B to IFRS 1 – see below)?ii)recognised all other resulting changes in retained earnings?Note: Such changes include reclassifications from or to intangibleassets if goodwill was not recognised under previous GAAPas an asset. This arises if, under previous GAAP, the entity:d) deducted goodwill directly from equity; or did not treat the business combination as anacquisition.IFRSs require subsequent measurement of some assets and liabilitieson a basis that is not based on original cost, such as fair value (e.g.derivatives). This includes items for which the entity has selected a fairvalue accounting policy (e.g. investment property).Has the entity measured these assets and liabilities applying IFRSrequirements in its opening IFRS balance sheet, even if they wereacquired or assumed in a past business combination?Has the entity recognised any resulting change in the carrying amount byadjusting retained earnings (or, if appropriate, another category ofequity), rather than goodwill?e)If assets acquired and liabilities assumed in a business combinationwere recognised under previous GAAP, have the carrying amounts ofthose assets and liabilities under previous GAAP, immediately after thebusiness combination, been deemed to be their cost under IFRS at thesame date?If IFRSs require a cost-based measurement of those assets andliabilities at a later date, has the entity applied the deemed cost as thebasis for cost-based depreciation or amortisation from the date of thebusiness combination?5

Compliance questionnaire (July 2006)TQReferenceRecognition/measurement requirementf)Yes / No / N/AIf an asset acquired, or liability assumed, in a past business combinationwas not recognised under previous GAAP, has the entity recognised andmeasured assets and liabilities in its consolidated financial statements onthe basis that IFRSs would require in the separate balance sheet of theacquiree?Note: If the acquirer had not, under its previous GAAP, capitalisedfinance leases acquired in a past business combination, it shallcapitalise those leases in its consolidated financial statements, asIAS 17 would require the acquiree to do in its separate IFRSbalance sheet. Conversely, if an asset or liability was subsumedin goodwill under previous GAAP but would have beenrecognised separately under IFRS 3, that asset or liability remainsin goodwill unless IFRSs would require its recognition in theseparate financial statements of the acquiree.g)Has the entity adjusted the carrying amount of goodwill under previousGAAP in the opening IFRS balance sheet at the date of transition only asfollows:i)If required by paragraph B2(c)(i) above, increased the carryingamount of goodwill when it reclassifies an item that it recognised asan intangible asset under previous GAAP?Similarly, if paragraph B2(f) requires the entity to recognise anintangible asset that was subsumed in recognised goodwill underprevious GAAP, has the entity decreased the carrying amount ofgoodwill accordingly (and, if applicable, adjusted deferred tax andminority interests)?ii)A contingency affecting the amount of the purchase considerationfor a past business combination may have been resolved beforethe date of transition to IFRSs. If a reliable estimate of thecontingent adjustment can be made and its payment is probablehas the entity adjusted the goodwill by that amount?Similarly, has the entity adjusted the carrying amount of goodwill ifa previously recognised contingent adjustment can no longer bemeasured reliably or its payment is no longer probable?iii)Has the entity performed an impairment test under IAS 36, at thedat

IAS 14 Segment Reporting 1 July 1998 Not included in this questionnaire IAS 16 Property, Plant and Equipment 1 January 2005 100 IAS 17 Leases 1 January 2005 112 IAS 18 Revenue 1 January 1995 123 IAS 19 Employee Benefits 1 January 1999 130 IAS 20 Accounting for Government Grants and Disclosure of Government Assistance