Special Topics Defining a business
|
|
- Osborne Mason
- 5 years ago
- Views:
Transcription
1 Special Topics Defining a business
2 Content Defining a business Identifying assets of business combination Survey on acquisition price allocation Page 2
3 Definitions g}} ERNST & YOUNG Qu"lity fn E,~ryt"jng We 00
4 Definition of a business A business is: An integrated set of activities and assets Capable of being conducted and managed to provide a return (dividends, lower costs or other economic benefits) Only two essential elements are required: Inputs Any economic resource that creates, or has the ability to create, outputs when one or more processes are applied to it Processes Any system, standard, protocol, convention or rule that, when applied to an input or inputs, creates or has the ability to create outputs Rebuttable presumption: if goodwill exists in the acquisition, the acquisition is a business. Page 4
5 Definition of a business meaning of capable of Outputs are not required for a set of activities and assets to qualify as a business. Development stage activities without outputs may still be businesses. A business need not include all the inputs or processes that the seller used in operating that business. If a market participant is capable of utilising the acquired set of activities and assets to produce outputs by integrating the acquired set with its own inputs and processes, the acquired set might constitute a business. If the elements that are missing from an acquired set are not present with a market participant but easily replaced/replicated, the acquired set might still be a business. However, in most cases, the acquired set of activities and assets must have at least some inputs and processes in order to be considered a business. Page 5
6 Definition of a business: development stage enterprises When evaluating whether the transferred development stage enterprise is a business, the company needs to determine whether the acquired set of activities and assets in the development stage: Has begun its planned principal activities Has employees, intellectual property and other inputs and processes that could be applied to those inputs Is pursuing a plan to produce outputs Will be able to obtain access to customers that will purchase the outputs The list is not exclusive Page 6
7 Definition of a business: development stage enterprises (cont.) The further an acquired set of assets and activities is in its lifecycle, the more difficult it will be to conclude a market participant is not capable of operating the acquired set as a business. The planned operations of an acquired set of assets and activities have commenced. The acquired activities and assets include employees and intellectual property such that it is capable of producing products. It is likely that the acquired set represents a business. Page 7
8 Definition in practice First, Identify the elements Inputs Processes Outputs If necessary pieces are missing Owner must assess if pieces are minor Owned by competitor Easily replaced or replicated BUT no processes => not a business Highly subjective judgment!! Page 8
9 Examples g}} ERNST & YOUNG Qu"lity fn E,~ryt"jng We 00
10 Development stage enterprises example 1 Biotech A acquires all of the outstanding shares in Biotech B, which is a development stage company with a licence for a product candidate. Due to a loss of funding, Biotech B has no employees and no other assets. Neither clinical trials nor development are currently being performed. When additional funding is obtained, Biotech A plans to commence Phase 1 clinical trials for the product candidate. Input licence to product candidate Processes none Outputs none Should the acquisition be accounted as a business combination or an asset acquisition? Page 10
11 Development stage enterprises example 2 Biotech C acquires all of the outstanding shares in Biotech D, a development stage company that has a license for a product candidate. Phase 1 clinical trials are currently being performed by Biotech D employees (one of whom founded Biotech D and discovered the product candidate). Biotech D s administrative and accounting functions are performed by a contract employee. Inputs license for product candidate and employees Processes operational and management processes associated with the performance and supervision of the clinical trials Outputs none Should the acquisition be accounted as a business combination or an asset acquisition? Page 11
12 Application in extractive industries example 1 E&P Co. A (an oil and gas exploration and production company) acquires a mineral interest from E&P Co. B, on which it intends to perform exploration activities to determine if reserves exist. The mineral interest is an unproven property and there have been no exploration activities performed on the property. Inputs mineral interest Processes none Outputs none Should the acquisition be accounted as a business combination or an asset acquisition? Page 12
13 Application in extractive industries example 2 E&P Co. A acquires a property similar to that in Example 1, except that oil and gas production activities are in place. The target s employees are not part of the transferred set; E&P Co. A will take over the operations by using its own employees. Inputs oil and gas reserves Processes operational processes associated with oil and gas production Outputs revenues from oil and gas production Should the acquisition be accounted as a business combination or an asset acquisition? Page 13
14 Application in real estate industry example 1 Company A acquires land and a vacant building from Company B. No processes, other assets or employees (for example, leases and other contracts, maintenance or security personnel or a leasing office) are acquired in the transaction. Inputs land and vacant building Processes none Outputs none Should the acquisition be accounted as a business combination or an asset acquisition? Page 14
15 Application in real estate industry example 2 Company A acquires an operating hotel, the hotel s employees, the franchise agreement, inventory, reservations system and all back office operations. Inputs non-current assets, franchise agreement and employees Processes operational and resource management processes associated with operating the hotel Outputs revenues from operating the hotel Should the acquisition be accounted as a business combination or an asset acquisition? Page 15
16 Identifying assets in a business combination g}} ERNST & YOUNG Qu"lity fn E,~ryt"jng We 00
17 Identifying assets in a business combination General principle As of the acquisition date, the acquirer shall recognise separately from goodwill, the identifiable assets acquired, the liabilities assumed at their acquisition date fair values Recognition criteria Framework for the preparation and presentation of financial statements Asset Future economic benefits Measurable cost Control over the asset resulting from past transaction or events Liability Present obligation resulting from past transactions or events Settlement involves resources embodying economic benefits Page 17
18 Tangible assets Property, plant and equipment Components Land, building, machinery, ships, aircraft, motor vehicles, furniture and fixtures, office equipment Fair value measurement Market value determined by appraisal Involvement of professionally qualified valuers Page 18
19 Intangible assets Definition and recognition of an intangible asset An identifiable non-monetary asset without physical substance Generally, an intangible asset is recognised if: It is identifiable: Separable, or Arises from contractual or legal rights, whether or not they are separable or transferable The entity is able to control the asset It is probable that future economic benefits attributable to the asset will flow to the entity The cost of the asset can be measured reliably Page 19
20 Intangible assets Under IFRS 3 Business Combinations, the probability and reliability of measurement criterion is deemed to be met Examples of intangible assets that arise in a business combination: Trademarks and trade names Non-competition agreements Internet domain names Customer lists Customer contracts and related customer relationships Lease agreements Databases Page 20
21 Practical difficulties in valuing acquired intangible assets Difficulty in identifying the intangible asset and distinguishing it from goodwill Two elements of identifiability: Existence of contractual or other legal rights Separability Relevance of acquirer s intentions For example, the acquirer does not intend to use the acquired asset (i.e., a competing brand) Difficulty in determining intentions of other market participants Page 21
22 Practical difficulties in valuing acquired intangible assets (cont.) Difficulty in estimating the useful life Consider cash flows used in valuation methodology Indefinite useful lives are allowed Not determined, not infinite Can include renewal periods if evidence for renewal without significant cost Additional impairment testing implications Page 22
23 Approaches to the valuation of intangible assets Market approaches Comparable market transactions Usual market royalty rates Cost approaches Indexed historical cost Replacement cost Income approaches Cash flows Excess earnings Multi-period excess earnings method (MEEM) Royalty rates Relief from royalty The valuation approach selected will depend on the intangible s nature/type. Page 23
24 Multi-period excess earnings method MEEM is the most common approach for the valuation of customer-related assets. Definitions under MEEM: Asset value sum of the discounted future excess earnings attributable to the identified customers over the remaining life of the customer relationships Excess earnings is the difference between: The after-tax operating cash flows attributable to the existing customers at the acquisition date The required cost of invested capital on all the other assets (tangible, intangible and current) used in order to deliver a finished good or maintain the customer relationship Excess earnings should be discounted over the life of the customer relationships Page 24
25 Multi-period excess earnings method (cont.) Appropriateness of the MEEM method A reliable approach as long as all the intangible assets not forming part of the intangible asset ( other assets ) but necessary to its exploitation have been properly identified These other assets have to be valued prior to the subject intangible asset valuation so that the expected cost of invested capital on these assets can be computed and deducted from the cash flows considered MEEM and useful life Page 25
26 Relief from royalty method Used mainly to calculate the value of a trademark or trade name If an entity owns a trademark: It does not have to rent one and is relieved from paying a royalty The amount of that theoretical payment is used as a surrogate for income attributable to the trademark. Key variables include revenue projections, royalty rate and the discount rate The protection costs and the marketing costs are deducted from the revenue streams to obtain the fair value of the trademark Page 26
27 Relief from royalty method (cont.) Steps required to carry out a valuation: 1. Apply a royalty rate to the projected revenue to determine the relief from royalty associated with the brand name 2. Determine the brand protection expense 3. Calculate the annual royalty savings by multiplying each year s projected revenue by the estimated royalty rate and deducting the brand protection expense 4. Apply an effective tax rate to the annual royalty savings 5. Compute the present value of the royalty savings using an appropriate discount rate Page 27
28 Survey on acquisition accounting g}} ERNST & YOUNG Qu"lity fn E,~ryt"jng We 00
29 Survey on acquisition accounting Overall view of total allocation Allocation of the enterprise value (%) ( ~, ~ ~r.~ moy not " "~ up to 100!i ""oio r o ~n~ "'1 re,","u "'J 'f.'i~di~ J ~ O ~~tcrtairm('o: ii,>~l Md " d~"'''''' ot e '<ommun ca t i o ~, Ban',.n9 Jnd (.,pit., m;,i<ct. A"tnmnti',~ FhJrmêICeuticJI _ Gooc,, 11 P~w~ r ~M " tilitie, Siu te, ","u "'J 'f _ 1 ~{; I I ""' :.v r ", t'u i n l.,~ : n '. " '~.< TM'libio', I'Mne;" M~ ol r", ~f'il E <I~ t ~ Oi J,, ~ Q:J~ Page 29 :JJ ERNST & YOUNC Qo<,o';",'" C"'?''"''s ~ 00
30 Survey on acquisition accounting Overall view of intangible assets recognition, > ;,, " 0 ];.~ 0,,,, "'0'-''''.m. ~~ '" '-' "- "' "' ~ ", " " > 0, 0 " q!> " ~ ;.. ;: ~ >; ; ~ i ~ ~ ;; ;: -'!.,. ~ ;.,... ~ "., >!..., ~, ~ fé ~, "!! ~ "l!! I I; ~ ~, -,- - ~.!'$~ "'- = - '" 1; '5 ';ï 2' '~-i5~! ~ '" '", ~!'1!!l:...:;... c 5i.., -;,; ~'5 '-'- -" '" ij " o~ ~ 1'; ;; 5i "i '::"-TI'-!-g o... '" _ ~ ~::o:::;;:,g;as-=3'o: <: 'f0> ~J::~ :; 3.~ " " E 0'. -g -~ '- Ol- ~,~;!"~._~".g tl~ -,, ;- "'q " _lil " :.; ~ ~i~;;3 '~TI"-'~ji - g-i" ""' ~ ". J. " "';:- ~ ~ ~:;; o :b~~ ~ ", 0 Q t A A I ~i ~ Q Q Q ~ Q 'n ~ ~ " HI"'iI!.H [ ~ I'lI " fmiiii!l ' s,. ~, ", "' "',!,, " " " "' "'.., " ", ;:;, ", '.' '".-.,,! l, -" _~c" '.,. ;::, ~ :. i ~ '; '".. '", "- ',' ~ :0- ". ij ',~ " ~ f~~ g : I', ',., " :? ~, ~ ~ q,,,. I.- l -~ ~ ~,,"~.. Z,...,." -=,,, ;\l ;;, 6, )1 ' :0' :E r d ~ ~ Qe '"... g iiil Page 30
31 Survey on acquisition accounting View of intangible assets allocation Minor role for financial services brands Core Deposit Intangibles represent majority of identified intangible assets Page 31
32 Survey on acquisition accounting View of intangible assets allocation Insurance 2% 67% Brands!lradernllrks Cu8lomer contract8/ relmloo8l11pa Technology Non-eompe agreements I Other Intanglble aesels Customer contracts and relationships are the key assets Page 32 :JJ ERNST & YOUNC Qo<,o';",'" C"'?''''''s ~ 00
33 Survey on acquisition accounting View of intangible assets allocation Customer contracts / relationships and brands / trademarks were most commonly Identified intangible assets Goodwill proportions varied significantly between transactions Page 33
34 Survey on acquisition accounting View of intangible assets allocation Highest proportion allocated to brands of all industry groups Lower than average net tangible assets, causing higher than average goodwill Companies also involved in telecommunications, nearly no brands & technology Page 34
35 Survey on acquisition accounting View of intangible assets allocation Typically lower net tangible assets, higher than average goodwill Most significant IAs were customer relationships and brands Page 35
36 Survey on acquisition accounting View of intangible assets allocation Higher percentage of net tangible assets (49 %) Frequent goodwill recognition for access to markets or materials Customer are of high importance (often natural monopoly element) Page 36
37 Survey on acquisition accounting View of intangible assets allocation 44% was captured by tangible assets, remaining split between IAs and goodwill Large importance of customer relationships Allocation varies within industry (ex. brands & technology for car manufacturers) Page 37
38 Survey on acquisition accounting View of intangible assets allocation Pharmaceutical Biotechnology BrlIndtmd.nur\i, Cu.mm.r conlnlck/ r.l.tlo,uhlp. T.chnology.Non-compet.t '11". 000.rl1t1nglli m 61% 22% eu.wltltl'contruw/ Nldon.hlp. T,cllnolOll\' Oil and Gas Technology 6% ClJltom... ni...t., rtllltiono I1Ip. Toc:trIoIog~ NM-00II"IP1t. liil,"mlnl. onmlr1<otoontr8cltsl l1li'''''''''' ClJI!Omlr lioi'trllotll rtii1i01l ' ~~ ' Tlolmlogy Non-oompotl ogrwomlri. Otl'm C<II'i",ot,1 og"om.ri. Page 38 :JJ ERNST & YOUNC Qo<,ol;.,,'" c"'?''''''s ~ 00
IP valuation, exploitation and finance
www.pwc.com WIPO WORKSHOP ON EFFECTIVE INTELLECTUAL PROPERTY ASSET MANAGEMENT BY SMEs IP valuation, exploitation and finance Tony Hadjiloucas Partner, Intellectual Property Global Compliance Services,
More informationInternational Accounting Standard 16 Presentation by: CPA Zachary Muthui
International Accounting Standard 16 Presentation by: CPA Zachary Muthui Uphold public interest Objective The objective of IAS 16 is to prescribe the accounting treatment for property, plant and equipment.
More informationValuation of Intangible Assets including. Purchase Price Allocation :74. Purchase Price Allocation
CA Ravishu Shah Valuation of Intangible Assets including Purchase Price Allocation Investment in knowledge based/intangible assets is one of the key characteristics of modern economies. Every goods including
More informationPOLICY STATEMENT INTANGIBLE ASSETS
POLICY STATEMENT INTANGIBLE ASSETS June 2005 -1- The Group of 100 first issued a Statement of Principles on Intangible Assets in 1994 in which it expressed the view that goodwill should not normally be
More informationFAS 141 Business Combinations
FAS 141 Business Combinations December 3, 2003 Business Valuation Committee 1 FAS 141 Overview The Need For FAS 141 Need For Consistent Reporting In Business Combinations / Mergers And Acquisitions Pooling
More informationTAX IMPLICATIONS RELATED TO THE IMPLEMENTATION OF FRS 138: INTANGIBLE ASSETS
The Malaysian Institute of Certified Public Accountants TAX IMPLICATIONS RELATED TO THE IMPLEMENTATION OF FRS 138: INTANGIBLE ASSETS Prepared by: Joint Tax Working Group on FRS Contents Page No. 1 Introduction
More informationBusiness Combinations Summary of the IASB s proposals for a new approach to business combinations and non-controlling interests
A SSURANCE AND A DVISORY BUSINESS S ERVICES I NTERNATIONAL FINANCIAL R EPORTING S TANDARDS!@# Business Combinations Summary of the IASB s proposals for a new approach to business combinations and non-controlling
More information10 Steps to realising real cash value from Innovation and IC Assets. Ludo Pyis Areopa
10 Steps to realising real cash value from Innovation and IC Assets Ludo Pyis Areopa Areopa Trust Oct 2014 Topics The Fundamentals of Intellectual Capital and Intellectual Property Quick Scan of IC approach
More informationValuing intangible assets
January 2006 Valuing intangible assets What are they really worth? Valuing Intangible assets Purchase Price Allocation (PPA) Identification of The value derived from has increased significantly in today
More informationTAX IMPLICATIONS RELATED TO THE IMPLEMENTATION OF MFRS 136/ FRS 136: IMPAIRMENT OF ASSETS
The Malaysian Institute of Certified Public Accountants TAX IMPLICATIONS RELATED TO THE IMPLEMENTATION OF MFRS 136/ FRS 136: IMPAIRMENT OF ASSETS Prepared by: Joint Tax Working Group on FRS Contents Page
More informationOUR GOVERNANCE. The principal subsidiary undertakings of the Company at 3 April 2015 are detailed in note 4 to the Company balance sheet on page 109.
STRATEGIC REPORT OUR GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION POLICIES GENERAL INFORMATION Halfords Group plc is a company domiciled in the United Kingdom. The consolidated financial statements
More informationInternational Accounting Standards Board 30 Cannon Street London EC4M 6XH. 23 April Dear Board members
Ernst & Young Global Limited Becket House 1 Lambeth Palace Road London SE1 7EU Tel: +44 [0]20 7980 0000 Fax: +44 [0]20 7980 0275 www.ey.com International Accounting Standards Board 30 Cannon Street London
More informationPREVIEW OF CHAPTER 5-2
5-1 PREVIEW OF CHAPTER 5 5-2 Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 5 and Statement of Cash Flows Statement of Financial Position LEARNING OBJECTIVES After studying this
More informationIntangible assets Issue paper presented at the EPSAS Working Group meeting Luxembourg, 7-8 May 2018
www.pwc.com Issue paper presented at the EPSAS Working Group meeting Luxembourg, Contents Introduction 3 Available accounting and reporting guidance 5 Country analysis 11 Matters for discussion 15 2 Introduction
More informationBUSINESS VALUATIONS REVISED Introduction. 3.0 Definitions. 2.0 Scope INTERNATIONAL VALUATION GUIDANCE NOTE NO. 6
6.6 INTERNATIONAL VALUATION GUIDANCE NOTE NO. 6 S REVISED 2007 1.0 Introduction 1.1 The International Valuation Standards Committee (IVSC) adopted this Guidance Note (GN) to improve the consistency and
More informationSeminar. Addressing Information Gaps in Business and Macro Economic Accounts to Better Explain Economic Performance
IG/15 24 June 2008 UNITED NATIONS DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS STATISTICS DIVISION Seminar Addressing Information Gaps in Business and Macro Economic Accounts to Better Explain Economic Performance
More informationTax Briefing No 09. This content is more than 5 years old. Where still relevant it has been incorporated. into a Tax and Duty Manual
Revenue Commissioners Tax Briefing No 09 2010 Intangible Assets Scheme under Section 291A Taxes Consolidation Act 1997 1. Introduction Section 43 of the Finance Act 2010 makes a number of amendments to
More informationChapter 9 AS 10 PROPERTY, PLANT AND EQUIPMENT. ACCOUNTING STANDARD - 10 Property, Plant and Equipment. 96 AS 10 - Property, Plant and Equipment
AS 10 PROPERTY, PLANT AND EQUIPMENT Chapter 9 ACCOUNTING STANDARD - 10 Property, Plant and Equipment 1. This Standard does not apply to: biological assets related to agricultural activity other than bearer
More informationRevenue from contracts with customers The standard is final A comprehensive look at the new revenue model
What s inside: Overview... 1 Scope...2 Licences and rights to use...2 Variable consideration and the constraint on revenue recognition...5 Sales to distributors and consignment stock...10 Collaborations
More informationTAYSIDE HEALTH BOARD APPENDIX 1
TAYSIDE HEALTH BOARD APPENDIX 1 IFRS - ACCOUNTING POLICIES 1. Authority In accordance with the accounts direction issued by Scottish Ministers under section 19(4) of the Public Finance and Accountability
More informationIntroduction to IFRS 3 & Consolidation
Introduction to IFRS 3 & Consolidation Content Consolidation IFRS 3 in a nutshell Business Combination vs Asset Acquisition Defining a business Page 2 Where do we come from? 1 January 2005 1 July 2009?
More informationDISCUSSION PAPER TAX IMPLICATIONS RELATED TO THE IMPLEMENTATION OF FRS 138: INTANGIBLE ASSETS
The Malaysian Institute of Certified Public Accountants DISCUSSION PAPER TAX IMPLICATIONS RELATED TO THE IMPLEMENTATION OF FRS 138: INTANGIBLE ASSETS Prepared by: Joint Tax Working Group on FRS Date of
More informationINTERNATIONAL VALUATION STANDARDS COUNCIL. EXPOSURE DRAFT Revised International Valuation Guidance Note No. 4 Valuation of Intangible Assets
January 2009 INTERNATIONAL VALUATION STANDARDS COUNCIL EXPOSURE DRAFT Revised International Valuation Guidance Note No. 4 Valuation of Intangible Assets Comments to be received by 30 April 2009 EXPOSURE
More information218/2-4 Moo 10 Beach Road, Nongprue, Banglamung, Chonburi, Thailand.
1 General information Minor International Public Limited ( the ) is a public limited company incorporated and resident in Thailand. The addresses of the s registered offices are as follows: Bangkok: 16
More informationCP:
Adeng Pustikaningsih, M.Si. Dosen Jurusan Pendidikan Akuntansi Fakultas Ekonomi Universitas Negeri Yogyakarta CP: 08 222 180 1695 Email : adengpustikaningsih@uny.ac.id 5-1 5-2 PREVIEW OF CHAPTER 5 5-3
More informationORS Kristiansand Symposiet juni 2009
Classification: Internal Status: Draft ORS Kristiansand Symposiet - 16. juni 2009 Kjøp av enkelteiendeler ifht virksomhetssammenslutninger Byttetransaksjoner (farm-ins) Lars Ragnar Vigdel Chief Accountant
More information(a) Standards, amendments and interpretations effective in 2010/11
APPENDIX 1 TAYSIDE HEALTH BOARD ACCOUNTING POLICIES NOTE 1: 1. Authority In accordance with the accounts direction issued by Scottish Ministers under section 19(4) of the Public Finance and Accountability
More informationObjective of IAS 18 The objective of IAS 18 is to prescribe the accounting treatment for revenue arising from certain types of transactions and events
IAS 18- Revenue Objective of IAS 18 The objective of IAS 18 is to prescribe the accounting treatment for revenue arising from certain types of transactions and events. Introduction Income is defined as
More informationLKAS 18 - Revenue. 24 th July Hiranthi Fonseka Director, Ernst & Young. Page 1
LKAS 18 - Revenue Hiranthi Fonseka Director, Ernst & Young 24 th July 2012 Page 1 Accounting for substance of transactions Contractual Requirements Statutory Environment Principle of the Standard Page
More informationBusiness Combinations and consolidation
Business Combinations and consolidation Madhu Sudan Kankani June 2017 KPMG.com/in Agenda 1 Introduction 2 Ind AS 103: Business combinations 3 Ind AS 110: Consolidated financial statements 4 Practical perspectives
More informationApplying IFRS. Joint Transition Group for Revenue Recognition items of general agreement. Updated December 2015
Applying IFRS Joint Transition Group for Revenue Recognition items of general agreement Updated December 2015 Contents Overview... 3 1. Step 1: Identify the contract(s) with a customer... 4 1.1 Collectability...
More informationRevision. Purchase Price Allocation for Account Reporting. Terms to Remember - 1. Contents. Terms to Remember - 3. Terms to Remember - 2
Purchase Price Allocation for Account Reporting Joseph C. Ho June 2010 Revision Types of valuation asset or business Purpose of valuation many Basis of value fair value, market value Fair value = market
More informationRE: Exposure Draft, Clarifying the Definition of a Business (File Reference No )
KPMG LLP Telephone +1 212 758 9700 345 Park Avenue Fax +1 212 758 9819 New York, N.Y. 10154-0102 Internet www.us.kpmg.com 401 Merritt 7 PO Box 5116 Norwalk, CT 06856-5116 RE: Exposure Draft, Clarifying
More informationThe new revenue recognition standard retail and consumer products
Applying IFRS in Retail and Consumer Products The new revenue recognition standard retail and consumer products May 2015 Contents Overview... 3 1. Summary of the new standard... 4 2. Scope, transition
More informationGroup Income Statement
MASSMART GROUP ANNUAL FINANCIAL STATEMENTS 2014 Group Income Statement December 2014 December 2013 Rm Notes 52 weeks 53 weeks Revenue 5 78,319.0 72,512.9 Sales 5 78,173.2 72,263.4 Cost of sales (63,610.8)
More informationMeeting notes Capital Markets Advisory Committee
Meeting notes Capital Markets Advisory Committee The Capital Markets Advisory Committee (CMAC) met on 2 March 2018 at the London offices of the International Accounting Standards Board (Board). Recordings
More informationConsolidated financial statements of. Spin Master Corp. December 31, 2015 and December 31, 2014
Consolidated financial statements of Spin Master Corp. Consolidated financial statements Table of contents Independent Auditor s Report... 1 Consolidated statements of operations and comprehensive income...
More informationReport. 18 th Extract from the EECS s Database of Enforcement. 25 November 2015 ESMA/2015/1776
Report 18 th Extract from the EECS s Database of Enforcement 25 November 2015 ESMA/2015/1776 Table of Contents I. Decision ref EECS/0215-01 Presentation of licensed activities as discontinued operations...
More informationProposed Accounting Standards Update, Business Combinations (Topic 805): Clarifying the Definition of a Business (File Reference No.
Ernst & Young LLP 5 Times Square New York, NY 10036 Tel: +1 212 773 3000 ey.com Ms. Susan M. Cosper Technical Director File Reference No. 2015-330 Financial Accounting Standards Board 401 Merritt 7 P.O.
More informationCONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS MANAGEMENT S STATEMENT OF RESPONSIBILITY FOR FINANCIAL REPORTING Management is responsible for the preparation and presentation of the consolidated financial statements
More informationData entered below will be used throughout the workbook:
Data entered below will be used throughout the workbook: Trust name: The Newcastle upon Tyne Hospitals NHS Foundation Trust This year 2009/10 Last year 2008/09 This year ended 31 March 2010 Last period
More informationIMPORTANT ECONOMIC INCENTIVES Article by Liam Grimes, Director of Tax, KPMG, Moderator Professional 2 Advanced Taxation.
IMPORTANT ECONOMIC INCENTIVES Article by Liam Grimes, Director of Tax, KPMG, Moderator Professional 2 Advanced Taxation. The changes introduced in Finance (No. 2) Act 2008 to research and development tax
More informationSaving our customers money so they can live better
Saving our customers money so they can live better MASSMART GROUP ANNUAL FINANCIAL STATEMENTS 2016 1 GROUP INCOME STATEMENT December 2016 December 2015 Rm Notes 52 weeks 52 weeks Revenue 5 91,564.9 84,857.4
More informationTable of Contents Independent Auditors Report 1
Table of Contents Independent Auditors Report 1 Consolidated Financial Statements: Consolidated Statement of Financial Position 3 Consolidated Statement of Profit or Loss 4 Consolidated Statement of Profit
More informationTransition Resource Group for Revenue Recognition Items of general agreement
Applying IFRS Transition Resource Group for Revenue Recognition Items of general agreement Updated March 2019 Contents Overview... 3 1. Step 1: Identify the contract(s) with a customer... 4 1.1 Collectability...
More informationFair Value Accounting for Entities and Intangibles: What you need to know. August 2018
Fair Value Accounting for Entities and Intangibles: What you need to know August 2018 Presenter David Ball, CFA Managing Director Duff & Phelps Valuation Advisory Practice Concentration in TMT Industry
More informationQurain Petrochemical Industries Company K.S.C.P. and Subsidiaries
Qurain Petrochemical Industries Company K.S.C.P. and Subsidiaries CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS REPORT TO THE SHAREHOLDERS 31 MARCH 2016 Ernst & Young Al Aiban, Al Osaimi &
More informationVALUATION OF GOODWILL
CHAPTER 13 VALUATION OF GOODWILL LEARNING OUTCOMES After studying this chapter, you will be able to: Understand the concept and significance of valuation. Familiarize with the bases of valuation. Learn
More informationApplying IFRS. Joint Transition Resource Group for Revenue Recognition - items of general agreement. Updated June 2016
Applying IFRS Joint Transition Resource Group for Revenue Recognition - items of general agreement Updated June 2016 Contents Overview...3 1. Step 1: Identify the contract(s) with a customer... 4 1.1 Collectability...
More informationLASCO MANUFACTURING LIMITED FINANCIAL STATEMENTS 31 MARCH 2012
FINANCIAL STATEMENTS FINANCIAL STATEMENTS I N D E X PAGE Independent Auditors' Report to the Members 1-2 FINANCIAL STATEMENTS Statement of Comprehensive Income 3 Statement of Financial Position 4 Statement
More informationGross profit X X Other operating income X X. Distribution costs (X) (X) Administrative expenses (X) (X) Other operating expenses (X) (X)
Chapter 3 Free lectures available for - click here 7 PUBLISHED FINANCIAL STATEMENTS proforma financial statements following IAS1 (revised) YZ GROUP Statement of Profit or Loss and Other Comprehensive Income
More informationFASB Emerging Issues Task Force
EITF Issue No. 09-2 FASB Emerging Issues Task Force Issue No. 09-2 Title: Research and Development Assets Acquired and Contingent Consideration Issued In an Asset Acquisition Document: Issue Summary No.
More informationPage 1 of 10 Ehab Abdou ( )
Statement of Financial Position, also referred to as the balance sheet: 1. Reports assets, liabilities, and equity at a specific date. 2. Provides information about resources, obligations to creditors,
More informationMood Media Corporation
Consolidated Financial Statements Mood Media Corporation For the year ended INDEPENDENT AUDITORS REPORT To the Shareholders of Mood Media Corporation We have audited the accompanying consolidated financial
More informationInternational accounting standards for all students of the F pillar and all Case Studies
International accounting standards for all students of the F pillar and all Case Studies The CIMA syllabus for the F pillar (and BA3) makes numerous references to the International Accounting Standards.
More informationRevenue from contracts with customers (IFRS 15)
Revenue from contracts with customers (IFRS 15) This edition first published in 2015 by John Wiley & Sons Ltd. Cover, cover design and content copyright 2015 Ernst & Young LLP. The United Kingdom firm
More informationGROWING GLOBALLY ANNUAL FINANCIAL STATEMENTS
GROWING GLOBALLY ANNUAL FINANCIAL STATEMENTS B thl Annual Financial Statements CONTENTS Notes to the consolidated financial statements (continued) 02 Directors statement 03 Consolidated income statement
More informationValuation. The Institute of Chartered Accountants of India
9 Valuation BASIC CONCEPTS CONCEPT OF VALUATION Valuation means measurement of value in monetary term. Different measurement bases are: (a) Historical cost. Assets are recorded at the amount of cash or
More informationDiploma in International Financial Reporting
Answers Diploma in International Financial Reporting June 2006 Answers 1 (a) Consolidated balance sheet of Alpha at 31 March 2006 $ 000 Assets Non-current assets: Property, plant and equipment (90,000
More informationMonetary figures in the financial statements are expressed in millions of euros unless otherwise stated.
Notes to the consolidated financial statements General information Orion Corporation is a Finnish public limited liability company domiciled in Espoo, Finland, and registered at Orionintie 1, FI-02200
More informationIndependent Auditor s Report To the Members of Stobart Group Limited
Financial Statements Independent Auditor s Report To the Members of Stobart Group Limited We have audited the Group financial statements of Stobart Group Limited for the year ended 28 February 2009 which
More informationDiploma in International Financial Reporting (Dip IFR) and Marking Scheme
Answers Diploma in International Financial Reporting (Dip IFR) December 208 Answers and Marking Scheme (a) Computation of profit or loss on the disposal of Delta Disposal proceeds 80,000 Net assets at
More informationDANGOTE SUGAR REFINERY PLC INTERIM FINANCIAL STATEMENTS
DANGOTE SUGAR REFINERY PLC INTERIM FINANCIAL STATEMENTS 30 September 2013 42 Contents Statement of profit and loss and other comprehensive income 3 Statement of financial position 4 Statement of changes
More informationBusiness Combinations: Applying the Acquisition Method Board Meeting Handout. October 18, 2006
Business Combinations: Applying the Acquisition Method Board Meeting Handout October 18, 2006 The purpose of this Board meeting is to discuss the following topics as a part of the redeliberations of the
More informationGEDEON RICHTER CONSOLIDATED FINANCIAL STATEMENTS GEDEON RICHTER CONSOLIDATED FINANCIAL STATEMENTS
GEDEON RICHTER CONSOLIDATED FINANCIAL STATEMENTS GEDEON RICHTER CONSOLIDATED FINANCIAL STATEMENTS 1 Table of Contents Consolidated Income Statement 10 Consolidated Statement of Comprehensive Income 10
More informationProperty, Plant and Equipment
Indian Accounting Standard (Ind AS) 16 Property, Plant and Equipment (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold
More informationB.COM UNIVERSITY OF CALICUT CORPORATE ACCOUNTING ( III SEMESTER ) (CORE COURSE : BC3B04) 2017 ADMISSION ONWARDS 329B SCHOOL OF DISTANCE EDUCATION
UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION B.COM ( III SEMESTER ) BA POLIICAL SCIENCE CORPORATE ACCOUNTING (CORE COURSE : BC3B04) 329B 2017 ADMISSION ONWARDS CORPORATE ACCOUNTING STUDY MATERIAL
More informationGedeon Richter Consolidated Financial Statements 2014
Gedeon Richter Consolidated Financial Statements Consolidated Financial Statements Table of contents Consolidated Income Statement 6 Consolidated Statement of Comprehensive Income 6 Consolidated Balance
More informationFFQA 1. Complied by: Mohammad Faizan Farooq Qadri Attari ACCA (Finalist) Contact:
IAS 16 Objective of IAS 16 The objective of IAS 16 is to prescribe the accounting treatment for property, plant, and equipment. The principal issues are the recognition of assets, the determination of
More informationQatari German Company for Medical Devices Q.S.C.
Qatari German Company for Medical Devices Q.S.C. FINANCIAL STATEMENTS 31 DECEMBER 2015 STATEMENT OF COMPREHENSIVE INCOME Notes (As restated) Revenues 3 16,412,886 15,826,056 Direct costs 4 ( 14,893,962)
More informationPALESTINE DEVELOPMENT AND INVESTMENT LIMITED (PADICO) CONSOLIDATED FINANCIAL STATEMENTS
PALESTINE DEVELOPMENT AND INVESTMENT LIMITED (PADICO) CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014 Ernst & Young Jordan P.O. Box 1140 Amman 11118 Jordan Tel: +962 6552 6111/+962 6552 7666 Fax: +962
More informationANNUAL FINANCIAL REPORT FOR FISCAL YEAR (As per Article 4, L. 3556/2007)
ANNUAL FINANCIAL REPORT FOR FISCAL YEAR 2017 (As per Article 4, L. 3556/2007) TABLE OF CONTENTS 1. Audited Annual Financial Statements 1.1 Group Consolidated Financial Statements 1.2 Parent Company Financial
More informationAUSTRALIAN ACCOUNTING STANDARDS IN PRACTICE Distinguishing between a business combination and an asset purchase in the extractives industry
AUSTRALIAN ACCOUNTING STANDARDS IN PRACTICE Distinguishing between a business combination and an asset purchase in the extractives industry 2 AUSTRALIAN ACCOUNTING STANDARDS IN PRACTICE - DISTINGUISHING
More informationCambridge IGCSE Accounting (0452)
www.xtremepapers.com Cambridge IGCSE Accounting (0452) International Accounting Standards (IAS) Guidance for Teachers Contents Introduction... 2 Use of this document... 2 Users of financial statements...
More informationProperty, Plant and Equipment
LEMBAGA PIAWAIAN PERAKAUNAN MALAYSIA MALAYSIAN ACCOUNTING STANDARDS BOARD MASB Standard 15 Property, Plant and Equipment Any correspondence regarding this Standard should be addressed to: The Chairman
More informationLife Sciences Accounting and Financial Reporting Update Interpretive Guidance on Revenue Recognition Under ASC 606
Life Sciences Accounting and Financial Reporting Update Interpretive Guidance on Revenue Recognition Under ASC 606 March 2017 Revenue Recognition Background In May 2014, the FASB 1 and IASB issued their
More informationGulf Warehousing Company (Q.S.C.) CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF GULF WAREHOUSING COMPANY (Q.S.C.) Report on the financial statements We have audited the accompanying
More informationSLFRS 3 - Business Combinations. Lesson 1: Definition of a Business. Anoji De Silva Partner, Ernst & Young. 26 th July 2012
Page 1 2010 EYGM Limited Slide 1 Business Combinations 1 SLFRS 3 - Business Combinations Anoji De Silva Partner, Ernst & Young Page 2 SLFRS 3- Topics covered 1. Introduction and overview 2. Identifying
More informationDefining Issues. Revenue from Contracts with Customers. June 2014, No
Defining Issues June 2014, No. 14-25 Revenue from Contracts with Customers On May 28, 2014, the FASB and the IASB issued a new accounting standard that is intended to improve and converge the financial
More informationHK SME Financial Reporting Framework and Standard 22 October 2005
New New IFRS IFRS HK SME Financial Reporting Framework and Standard 22 October 2005 We are small! HELP! Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) 2005 Nelson 1 HK SME Financial Reporting
More informationDigging Into The Balance Sheet and Income Statement. The Balance Sheet
Digging Into The Balance Sheet and Income Statement Jim Menard, CCE email: jsmenard62@gmail.com The Balance Sheet Also called the statement of condition or statement of financial position Financial Condition
More informationConsolidated financial statements Financial Year. Publicis Groupe consolidated financial statements financial year ended December 31,
Consolidated financial statements 2017 Financial Year Publicis Groupe consolidated financial statements financial year ended December 31, 2017 1 Consolidated income statement Notes 2017 2016 Revenue 9,690
More informationFair Value Accounting (Part 1) 11 July MBA MSc BBA ACA ACS CFA CPA(Aust.) CPA(US) FCCA FCPA FHKIoD MSCA Nelson Consulting Limited 1
Fair Value Accounting (Part 1) 11 July 2009 Nelson Lam 林智遠 MBA MSc BBA ACA ACS CFA CPA(Aust.) CPA(US) FCCA FCPA FHKIoD MSCA 2008-09 Nelson Consulting Limited 1 Today s Agenda Global Trend in Financial
More informationMastering impairment testing and principles: Extract MASTERING IMPAIRMENT TESTING AND PRINCIPLES EXTRACT
Mastering impairment testing and principles: Extract MASTERING IMPAIRMENT TESTING AND PRINCIPLES EXTRACT CPA Australia Ltd 2014 1 Contents Course overview 1 Learning objectives 1 Knowledge assessment 1
More informationCorporate Watch. pwc. FRS 103 Improving the transparency and comparability of acquisition accounting. *connectedthinking. July / August 2004 Issue
Corporate Watch July / August 2004 Issue FRS 103 Improving the transparency and comparability of acquisition accounting On 31 March 2004, the International Accounting Standards Board (IASB) published International
More informationA new global standard on revenue
What this means for the life sciences industry The International Accounting Standards Board (IASB) have issued their new Standard on revenue IFRS 15 Revenue from Contracts with Customers. This bulletin
More informationUnaudited consolidated interim financial statements and independent auditor s review report BORETS INTERNATIONAL LIMITED 30 June 2015
Unaudited consolidated interim financial statements and independent auditor s review report BORETS INTERNATIONAL LIMITED 30 June 2015 Contents Independent Auditor s Review Report Unaudited Consolidated
More informationFASB Emerging Issues Task Force. Issue No Title: Research and Development Assets Acquired In an Asset Acquisition
EITF Issue No. 09-2 FASB Emerging Issues Task Force Issue No. 09-2 Title: Research and Development Assets Acquired In an Asset Acquisition Document: Issue Summary No. 1, Issue Supplement No. 1 Date prepared:
More informationValuation. The Institute of Chartered Accountants of India
9 Valuation BASIC CONCEPTS CONCEPT OF VALUATION Valuation means measurement of value in monetary term. Different measurement bases are: (a) Historical cost. Assets are recorded at the amount of cash or
More informationConsolidated Financial Statements
Gedeon Richter Consolidated Financial Statements 2013 Consolidated Financial Statements Table of Contents Consolidated Income Statement 6 Consolidated Statement of Comprehensive Income 6 Consolidated Balance
More informationJOINT STOCK COMPANY ACRON. International Accounting Standard No. 34 Consolidated Condensed Interim Financial Information (six months) 30 June 2012
JOINT STOCK COMPANY ACRON International Accounting Standard No. 34 Consolidated Condensed Interim Financial Information (six months) 30 June 2012 Contents Unaudited Consolidated Condensed Interim Statement
More information10/24/2008. Reporting and. assets PROPERTY, PLANT AND EQUIPMENT. PROPERTY, PLANT AND EQUIPMENT continued. Chapter 8
Chapter 8 Reporting and analysing non-current assets PowerPoint presentation by Anne Abraham University of Wollongong 2009 John Wiley & Sons Australia, Ltd PROPERTY, PLANT AND EQUIPMENT Property, plant
More informationThematic Review Business Combinations (IFRS 3R) Supervision of Financial Reporting
Thematic Review Business Combinations (IFRS 3R) Supervision of Financial Reporting October 2011 Table of Contents 1 Conclusion and summary 4 2 Introduction 7 3 Objectives of the thematic review, design
More informationnotes to the Financial Statements 30 april 2017 (Cont d)
2.4 Summary of accounting policies (contd.) (d) Intangible assets (contd.) (ii) Research and development expenditure Research expenditure is recognised as an expense when it is incurred. Development expenditure
More informationBusiness Combinations IND AS 103
Business Combinations IND AS 103 For many men, the acquisition of wealth does not end their troubles, it only changes them. - Lucius Annaeus Seneca Scope of Business Combination Identification of Business
More informationGEDEON RICHTER CONSOLIDATED FINANCIAL STATEMENTS
GEDEON RICHTER CONSOLIDATED FINANCIAL STATEMENTS Table of Contents Consolidated Income Statement 12 Consolidated Statement of Comprehensive Income 12 Consolidated Balance Sheet 13 Consolidated Statement
More informationCipher Pharmaceuticals Inc.
Consolidated Financial Statements MANAGEMENT S RESPONSIBILITY FOR FINANCIAL REPORTING The accompanying consolidated financial statements of Cipher Pharmaceuticals Inc. ( Cipher ) and all the information
More informationA guide to intellectual property and intangible assets
A guide to intellectual property and intangible assets Identifying, protecting and valuing intellectual property within your business Corporate Finance PRECISE. PROVEN. PERFORMANCE. Not surprisingly intellectual
More informationCast. The following information has been extracted from Cast s financial statements for the year ended 31 March 2015
Cast The following information has been extracted from Cast s financial statements for the year ended 31 Accounting policies (extract only) Vendor Agreements Some of our vendors provide us with cash payments
More informationNovel Laboratories, Inc. Financial Statements As of and For the Year Ended March 31, 2017
Novel Laboratories, Inc. Financial Statements As of and For the Year Ended TABLE OF CONTENTS Page Independent Auditors Report 1 Balance Sheet 2 Statement of Operations 3 Statement of Changes in Stockholder
More information