Добавил:
ivanov666
Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз:
Предмет:
Файл:Стандарты финансовой отчетности в корпоративном бизнесе. Учебное пособие на английском языке
.pdf
Fair value Fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants
at the measurement date (see IFRS 13).
Financial guarantee contract A contract that requires the issuer to make
specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or
modified terms of a debt instrument.
Financial liability at fair value through profit or loss A financial liability
that meets either of the following conditions:
a) It meets the definition of held for trading;
b) Upon initial recognition it is designated by the entity as at fair value
through profit or loss.
Held for trading A financial asset or financial liability that:
a) is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
b) on initial recognition is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent
actual pattern of short-term profit-taking; or
c) is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).
Reclassification date The first day of the first reporting period following
the change in business model that results in an entity reclassifying financial
assets.
Regular way purchase A purchase or sale of a financial asset under a
contract whose or sale terms require delivery of the asset within the time frame
established generally by regulation or convention in the marketplace concerned.
Classification of financial assets
An entity shall classify financial assets as subsequently measured at either amortised cost or fair value on the basis of both:
(a) the entity’s business model for managing the financial assets;
(b) the contractual cash flow characteristics of the financial asset.
A financial asset shall be measured at amortised cost if both of the following conditions are met:
– the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;
– the contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
Interest is consideration for the time value of money and for the credit
risk associated with the principal amount outstanding during a particular period of time.
A financial asset shall be measured at fair value unless it is measured at
amortised cost.
Option to designate a financial asset at fair value through profit or loss
Despite information above, an entity may, at initial recognition, irrevocably designate a financial asset as measured at fair value through profit or loss if
doing so eliminates or significantly reduces a measurement or recognition in-
consistency (sometimes referred to as an ‘accounting mismatch’) that would
otherwise arise from measuring assets or liabilities or recognising the gains
and losses on them on different bases.
Classification of financial liabilities
An entity shall classify all financial liabilities as subsequently measured
at amortised cost using the effective interest method, except for:
a) financial liabilities at fair value through profit or loss. Such liabilities,
including derivatives that are liabilities, shall be subsequently measured at fair
value;
b) financial liabilities that arise when a transfer of a financial asset does
not qualify for derecognition or when the continuing involvement approach
applies;
c) financial guarantee contracts A. After initial recognition, an issuer of
such a contract shall subsequently measure it at the higher of:
– the amount determined in accordance with IAS 37;
– Provisions, Contingent Liabilities and Contingent Assets;
– the amount initially recognised less, when appropriate, cumulative
amortisation recognised in accordance with IAS 18 Revenue.
d) commitments to provide a loan at a below-market interest rate. After
initial recognition, an issuer of such a commitment shall subsequently measure
it at the higher of:
– the amount determined in accordance with IAS 37;
– the amount initially recognised less, when appropriate, cumulative
amortisation recognised in accordance with IAS 18.
Initial measurement
At initial recognition, an entity shall measure a financial asset or financial
liability at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are
directly attributable to the acquisition or issue of the financial asset or financial
liability.
However, if the fair value of the financial asset or financial liability at initial recognition differs from the transaction price, the best evidence of the fair
value of a financial instrument at initial recognition is normally the transaction
price (ie the fair value of the consideration given or received, see also IFRS 13).
Yes
Figure
- Financial assets: classification and
measurement
Figure
- Financial liabilities: changes of model of an
measurement
at fair value
Initial recognition
An entity shall recognise a financial asset or a financial liability in its
statement of financial position when, and only when, the entity becomes party
to the contractual provisions of the instrument.
When an entity first recognises a financial asset or financial liability, it
shall classify it in accordance the information above.
Subsequent measurement of financial assets
After initial recognition, an entity shall measure a financial asset at fair
value or amortised cost.
An entity shall apply the impairment requirements to financial assets
measured at amortised cost.
An entity shall apply the hedge accounting requirements to a financial asset that is designated as a hedged item.
Subsequent measurement of financial liabilities
After initial recognition, an entity shall measure a financial liability at
amortised cost.
An entity shall apply the hedge accounting requirements to a financial liability that is designated as a hedged item.
Reclassification
The IFRS 9 forbid reclassification of financial assets, except for exceptional cases when the business model of the company changes; in this case the
company is obliged to change classification of the corresponding financial
assets is perspective.
When, and only when, an entity changes its business model for managing
financial assets it shall reclassify all affected financial assets.
An entity shall not reclassify any financial liability.
The following changes in circumstances are not reclassifications:
(a) A derivative that was previously a designated and effective hedging
instrument in a cash flow hedge or net investment hedge no longer qualifies as
such.
(b) A derivative becomes a designated and effective hedging instrument
in a cash flow hedge or net investment hedge.
Reclassification of financial assets
If an entity reclassifies financial assets, it shall apply the reclassification
prospectively from the reclassification date. The entity shall not restate any
previously recognised gains, losses or interest.
If an entity reclassifies a financial asset so that it is measured at fair value, its fair value is measured at the reclassification date. Any gain or loss arising from a difference between the previous carrying amount and fair value is
recognised in profit or loss.
If an entity reclassifies a financial asset so that it is measured at amortised
cost, its fair value at the reclassification date becomes its new carrying amount.
Gains and losses
A gain or loss on a financial asset or financial liability that is measured at
fair value shall be recognised in profit or loss unless:
(a) it is part of a hedging relationship;
(b) it is an investment in an equity instrument and the entity has elected to
present gains and losses on that investment in other comprehensive income; or
(c) it is a financial liability designated as at fair value through profit or
loss and the entity is required to present the effects of changes in the liability’s
credit risk in other comprehensive income.
A gain or loss on a financial asset that is measured at amortised cost and
is not part of a hedging relationship shall be recognised in profit or loss when
the financial asset is derecognised, impaired or reclassified.
Derecognition of financial assets
The following flow chart illustrates the evaluation of whether and to what
extent a financial asset is derecognised.
Derecognition of financial liabilities
A financial liability (or part of it) is extinguished when the debtor either:
– discharges the liability (or part of it) by paying the creditor, normally
with cash, other financial assets, goods or services; or
– is legally released from primary responsibility for the liability (or part
of it) either by process of law or by the creditor. (If the debtor has given a
guarantee this condition may still be met).
Control questions for self-examination
1. Scope of IFRS 7.
2. When the issuer transfers or can be obliged to give money or other financial asset to the instrument holder, it is an example of the combined, equity
instrument or the liability?
3. The securities converted in the share it is an example of the combined,
equity instrument or the liability?
4. How all equity securities, except for carried at fair value with reference
of its change on a profit or loss are classified?
5. When the organization derecognizes a financial asset or its part?
6. At what cost the loans, receivables and investments withheld before
settlement are reflected?
7. How the "liability" and "equity" components of the combined instrument are considered?
8. When the tool represents a residual share in net assets of the issuer, it
is classified as the combined instrument, the equity or the liability?
9. At what cost the initial recognition of a financial asset (liability) on
IAS 39 is performed?
10. At what cost securities in a trade portfolio on a reporting date are
measurement?
8. ANALYSIS OF THE FINANCIAL REPORTING
OF THE ORGANIZATION
8.1. Analysis technique of the financial reporting. Analysis of financial
instruments. Analysis of the equity. Income-expenditure analysis. Analysis of
the statement of cash flow.
8.2. Benefits of using the IFRS.
8.1. Analysis technique of the financial reporting.
Analysis of financial instruments. Analysis of the equity.
Income-expenditure analysis. Analysis of the statement
of cash flow
The analysis of financial statements is hard enough even when limited to
reporting within one country. This is because of the complexity of the economic world and because of the incentives for some preparers of financial statements to mislead the users. When trying to compare companies internationally,
the difficulties multiply, including differences under the following headings:
– language problems;
– differences in financial culture;
– valuation of assets;
– measurement of profits;
– availability of published accounting data;
– extent and type of audit;
– formats of financial statements;
– frequency of reports;
– quantity of data disclosed;
– different currencies;
– biases in the accounting data;
– user-friendliness of annual reports.
International comparative analysis might be made by many users of financial statements. These users include:
– brokers, investment analysts and journalists on behalf of shareholder
investors;
–- bankers and other creditors when deciding on lending;
– multinational companies when appraising existing or potential subsidi-
aries or
competitors.
Interpreting the balance sheet
The balance sheet can be described as a statement of financial position at
a point in time. It shows the resources of the business, as well as its sources of
finance. If the user wants a complete financial picture of the business, balance
sheets suffer from several significant drawbacks:
1. Absence of items. In general, only those items acquired through external transactions will be recognized in a balance sheet. Resources created within the business (except for development assets) and resources that do not have
clearly related costs, such as the collective experience of a project team or
workforce, will not be included.
2. Historical valuation of items. Many resources are recorded in balance
sheets at figures based on their original purchase price. Such historical book
values may differ – often very substantially – from market values as at the date
of the balance sheet.
3. Effect of accrual basis. Given the interconnections between the income
statement and the balance sheet, accountants have to choose between the alternative approaches of either:
a) calculating the figures for the income statement under defined procedures and formulae, and putting whatever number is left over in the balance
sheet; or
b) calculating the figures in the balance sheet under defined procedures
and formulae, and putting whatever number is left over in the income statement.
Although there is increasing movement by standard setters toward the
second approach, accountants still adopt the first approach for some items (depreciation, for example). The resulting balance sheet number is a residual, often of doubtful meaning.
4. Flexibility of accounting policy. The different and often conflicting impli-
cations of the common accounting conventions, and the significant degree of subjectivity involved in both choice of accounting policy and detailed application of
accounting policy, lead to great flexibility of accounting numbers.
Notwithstanding all the above problems, a balance sheet is the nearest
that accountants get to publishing a statement of business position and resources. It can be useful, provided that the bases on which it is prepared are
understood. For most assets, it can be regarded as showing the lower of:
(a) the cost of the resource (or some proportion thereof in the case of a
depreciated fixed asset);
(b) the benefit, i.e. the proceeds expected to be derived from using or selling the resource in the normal course of business.
The balance sheet figures can therefore be regarded as providing a prudent valuation for many of the recorded items, and therefore as a very conservative picture of the business as a whole.
Within the limitations inherent in the above discussion, the balance sheet
figures, usually known as book values, can be used as partial indicators of
business size and financial strength. Net assets, at book value, could be calcu-
lated on per share basis, for example. The absolute figures may not mean very
much, but the trend, particularly over a longer period, may be indicative of a
company’s underlying performance.
Valuation through expectations
The words ‘value’ and ‘valuation’ imply some element of future orienta-
tion. The value of something might be seen as the amount of benefit expected
to be derived from it (not necessarily in money terms), or possibly the amount
of sacrifice necessary in order to obtain it. Pursuing this, the value of a business can be related to the benefits that are expected to flow from ownership of
the business, and the value of a share in a business can be related to the benefits that are expected to flow from ownership of the share. It is generally
agreed that the best theoretical approach to the valuation of a share in a business is to consider some defined future flows, and to discount the anticipated
figures to give present value, i.e. to use the principles of discounted cash flow
(DCF). Possible flows to use would include:
– the stream of expected future earnings;
– the stream of expected future cash flows of the business;
– the stream of expected future cash receipts by the investor (i.e. expected
dividends and other cash receipts, e.g. proceeds of sale of shares).
In each case there is the problem, not only of predicting the size of the
flows, but also of choosing a rational discount rate. The discount rate will embrace estimates of interest rates, the risk positions of the business concerned,
and the attitude to risk of the individual investor. It will also be necessary to
take account of estimates of market and economy developments, such as inflation rates and taxation policies. In the long run, it can be suggested that the
above three types of flow amount to the same thing. Earnings are cash flows
adjusted and smoothed through accounting practices – in the long run, total
earnings should equal total net cash flow. And, remembering that the stream of
future dividends includes the ‘final’ distribution when the firm is liquidated,
the total dividend stream should also equal the total net cash-flow stream. The
timings of the flows may, of course, be very different, and for the individual
shareholder it is the capital amount expected for the share when eventually
sold on the stock market, rather than a final liquidation dividend, which usually represents the final item in the dividend stream. The assumptions necessary
for quantifying any of the three flows are obviously extremely subjective.
Recognition of this leads to the third possible approach to valuation of a business, namely market values.
Valuation through market values
It can be argued that the price of a share on a stock market is influenced
by all kinds of factors that are extraneous to the particular business under consideration, such as general economic, political or exchange rate considerations.
The market value in a stock market at a date does have one enormous advantage: it demonstrably exists. The market value is (allowing for transaction
Соседние файлы в предмете [НЕСОРТИРОВАННОЕ]