ALI-ABA Audio Seminar. Moving from GAAP to IFRS (International Financial Reporting Standards) February 18, 2009 Telephone Seminar/Audio Webcast

Transcription

1 85 ALI-ABA Audio Seminar Moving from GAAP to IFRS (International Financial Reporting Standards) February 18, 2009 Telephone Seminar/Audio Webcast Good Group (International) Limited (illustrative financial statements under IFRS) Submitted by Nancy L. Salisbury Ernst & Young LLP Washington, D.C. Note: A complete list of E&Y IFRS related publications and resources is available at

2 86 Ernst & Young Assurance Tax Transactions Advisory About Ernst & Young Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 135,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. For more information, please visit Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. About Ernst & Young s International Financial Reporting Standards Group The move to International Financial Reporting Standards (IFRS) is the single most important initiative in the financial reporting world, the impact of which stretches far beyond accounting to affect every key decision you make, not just how you report it. We have developed the global resources people and knowledge to support our client teams. And we work to give you the benefit of our broad sector experience, our deep subject matter knowledge and the latest insights from our work worldwide. It s how Ernst & Young makes a difference EYGM Limited. All Rights Reserved. EYG no. AU0172 In line with Ernst & Young s commitment to minimize its impact on the environment, this document has been printed on paper with a high recycled content. This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

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4 22. Dividends paid and proposed Contents Abbreviations and key...3 Introduction...4 Independent auditors' report to the shareholders of Good Group (International) Limited...10 Consolidated income statement...11 Consolidated balance sheet...13 Consolidated statement of changes in equity...15 Consolidated cash flow statement...17 Notes to the consolidated financial statements Corporate information Basis of preparation Changes in accounting policy and disclosures Summary of significant accounting policies Significant accounting judgements, estimates and assumptions Standards issued but not yet effective Business combinations and acquisition of minority interests Interest in a joint venture Investment in an associate Segment information Other income/expenses and adjustments Other operating income Other operating expense Finance costs Finance income Depreciation, amortisation, foreign exchange differences and costs of inventories included in the consolidated income statement Employee benefits expense Research and development costs Share-based payment plans Income tax Discontinued operation Earnings per share Property, plant and equipment Investment properties Intangible assets Other financial assets and financial liabilities Impairment testing of goodwill and intangibles with indefinite lives Inventories Trade and other receivables (current) Cash and short-term deposits Issued capital and reserves...72

5 Provisions Government grants Deferred revenue Pensions and other post-employment benefit plans Trade and other payables (current) Related party disclosures Commitments and contingencies Financial risk management, objectives and policies Events after the balance sheet date...89 Appendix 1 Consolidated income statement (example of expenses disclosed by nature)...90 Appendix 2 - Consolidated cash flow statement - direct method...91 Appendix 3 - Segment reporting under IAS 14 Segment Reporting...92 Appendix 4 - Business combination accounted for in accordance with IFRS 3 (revised January 2008)...96 Appendix 5 - Presentation in accordance with IAS 1 (revised September 2007)...98 Appendix 6 - Illustrative disclosures for a first-time adopter of IFRS Appendix 7 - XBRL: The exchange of interactive financial reporting data Index...111

6 90 Abbreviations and key The following styles of abbreviation are used in this set of International GAAP Illustrative Financial Statements: IAS International Accounting Standard No. 33, paragraph 41 IAS 1.BC.13 International Accounting Standard No. 1, Basis for Conclusions, paragraph 13 IFRS 2.44 International Financial Reporting Standard No. 2, paragraph 44 SIC 29.6 Standing Interpretations Committee Interpretation No. 29, paragraph 6 IFRIC 4.6 International Financial Reporting Interpretations Committee Interpretation No. 4, paragraph 6 IAS 39.IG.G.2 IAS 39 Financial Instruments: Recognition and Measurement Guidance on Implementing IAS 39 Section G: Other, paragraph G.2 IAS 39.AG.71 IAS 39 Financial Instruments: Recognition and Measurement Appendix A Application Guidance, paragraph AG71 ISA International Standard on Auditing No. 700, paragraph 25 Commentary GAAP IASB IFRIC SIC The commentary explains how the requirements of IFRS have been implemented in arriving at the illustrative disclosure. Generally Accepted Accounting Principles/Practice International Accounting Standards Board International Financial Reporting Interpretations Committee Standing Interpretations Committee