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TitleHow Starter Kits Meet IFRS
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Table of Contents
                            Introduction
	Objective
		What is SAP BusinessObjects Financial Consolidation?
		What is the starter kit for IFRS?
	IFRS in the starter kit
	How to read this document
IAS 1 - Presentation of financial statements
	Statement of financial position
		IAS 1 requirements
		XBRL Taxonomy
		In the starter kit
	Statement of comprehensive income
		IAS 1 requirements
		XBRL Taxonomy
		In the starter kit
			Presentation
			Focus on other comprehensive income
				How components of other comprehensive income have been identified?
				How the statement of comprehensive income has been built?
	Statement of changes in equity
		IAS 1 requirements
		XBRL Taxonomy
		In the starter kit
	Statement of cash flows
	Notes
		IAS 1 requirements
		In the starter kit
IAS 2 – Inventories
	Requirements
		Measurement
		Recognition as an expense
	In the starter kit
IAS 7 – Statement of cash flows
	IAS 7 requirements
	XBRL Taxonomy
	In the starter kit
IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
	Changes in accounting policies
		When and how?
		In the starter kit
	Changes in accounting estimates
	Corrections of errors
IAS 10 – Events after the reporting period
	Principles
	In the starter kit
IAS 11 – Construction contracts
	Principles
	In the starter kit
IAS 12 – Income taxes
	Accounting for current tax
		Principles
		In the starter kit
	Accounting for deferred tax
		Definitions
		Recognition of deferred tax assets and liabilities
			Overall principles
			Investments in subsidiaries, joint-ventures and associates
		Accounting schemes
		Measurement and presentation
		In the starter kit
IAS 16 – Property, plant and equipment
	Principles
		Initial recognition
		Subsequent measurement
			Cost model
			Revaluation model
		Depreciation
		Derecognition of property, plant and equipment
	In the starter kit
		Categories of property, plant and equipment
		Accounting schemes
			Initial recognition
			Subsequent measurement
				Depreciation and impairment
				Revaluation
			Derecognition
IAS 17 – Leases
	Leases in the financial statements of lessees
		Accounting principles for finance leases
		Accounting principles for operating leases
		In the starter kit
			Finance leases
			Operating leases
	Leases in the financial statements of lessors
		Accounting principles for finance leases
		Accounting principles for operating leases
		In the starter kit
IAS 18 – Revenue
	Accounting principles
	In the starter kit
IAS 19 – Employee benefits
	Foreword
	Short-term employee benefits
		Accounting principles
		In the starter kit
	Post-employment benefits
		Accounting principles
			In the statement of financial position
			In profit or loss
		In the starter kit
	Termination benefits
		Accounting principles
		In the starter kit
	Other long-term benefits
		Accounting principles
		In the starter kit
IAS 20 – Accounting for government grants and disclosure of government assistance
	Accounting principles
	In the starter kit
IAS 21 – The effects of changes in foreign exchange rates
	Transactions in foreign currencies
		Requirements
		In the starter kit
	Translation of foreign entities’ financial statements
		From local currency to functional currency
			Principles
			In the starter kit
		From functional currency to group currency
			Principles
			In the starter kit
	Use of a presentation currency
IAS 23 – Borrowing costs
	Accounting principles
	In the starter kit
IAS 27 – Consolidated and separate financial statements
	Current consolidation process
		Defining the scope of consolidation
			Principles
			In the starter kit
		Adjustments to group accounting principles
			Principles
			In the starter kit
		Elimination of internal transactions
			Principles
			In the starter kit
		Consolidation of investments
			Principles
			In the starter kit
	Changes in consolidation scope
		Loss of control
			Principles
			In the starter kit
				Outgoing entities
				Changes in the consolidation method
				Change in the consolidation rate (subsidiary becoming a joint-venture)
		Equity transactions
			Accounting principles
			In the starter kit
IAS 28 – Investments in associates
	Applying equity method
		Principles
		In the starter kit
	Internal transactions
		Principles
		In the starter kit
	Changes in investor’s ownership interest
		Loss of significant influence
		Increase / decrease in interest rate
			Principles
			In the starter kit
IAS 29 – Financial reporting in hyperinflationary economies
	Principles
	In the starter kit
IAS 31 – Interests in joint ventures
	Proportionate consolidation or equity method
		Principles
		In the starter kit
	Internal transactions
		Principles
		In the starter kit
	Changes in investor’s ownership interest
		Loss of joint control
		Increase / decrease in interest rate
			Principles
			In the starter-kit
IAS 32 – Financial instruments: presentation
	Foreword
	Liabilities and equity
		Requirements
		In the starter kit
	Treasury shares
		Requirements
		In the starter kit
			Treasury shares held by the parent company
			Parent company’s share held by subsidiaries
			Treasury shares of consolidated entities
	Interest, dividends, losses and gains
		Requirements
		In the starter kit
	Offsetting a financial asset and a financial liability
IAS 34 - Interim financial reporting
	Requirements
	In the starter kit
IAS 36 – Impairment of assets
	Requirements
		When should impairment tests be completed?
		How should an impairment test be performed?
		How is an impairment loss measured and recognized?
		Goodwill and non-controlling interests
			Non-controlling interests measured at their proportionate share of identifiable assets
			Non-controlling interests measured at fair value
		Reversals of impairment losses
	In the starter kit
		Overall principles
		Impairment of goodwill
		Impairment of investments in subsidiaries, JV and associates
IAS 37 - Provisions, Contingent Liabilities and Contingent Assets
	Requirements
		Definitions
		Accounting rules
			Provisions
			Contingent assets and liabilities
	In the starter kit
IAS 38 – Intangible assets
	Principles
		Initial recognition
			General principles
			Internally generated intangible assets
		Subsequent measurement
			Cost model
			Revaluation model
		Amortization
		Derecognition
	In the starter kit
		Categories of intangible assets
		Accounting schemes
			Initial recognition
			Subsequent measurement
				Amortization and impairment
				Revaluation
			Derecognition
IAS 39 - Financial Instruments: Recognition and Measurement
	Foreword
	Classification
		Categories of financial assets according to IAS 39
		In the starter kit
	Measurement
		Measurement principles
		In the starter kit
	Hedge accounting
		Principles
		In the starter kit
IAS 40 - Investment Property
	Requirements
		Definition
		Recognition and measurement
		Transfers
		Derecognition
	In the starter kit
		Initial recognition
		Subsequent measurement
			Depreciation and impairment
			Fair value model
		Transfer
		Derecognition
IFRS 2 – Share-based payment
	Requirements
	In the starter kit
IFRS 3 – Business combinations
	First consolidation of an entity
		Measuring acquiree’s assets and liabilities
		Measuring non-controlling interests
		Goodwill or gain from a bargain purchase
			Principles
			In the starter kit
	Step acquisition
		Associate becomes a subsidiary
			Principles
			In the starter kit
		Associate becomes a joint-venture
		Joint-venture becomes a subsidiary
IFRS 5 - Non-current assets held for sale and discontinued operations
	Requirements
		Classification of non-current assets (or disposal groups) as held for sale
		Measurement of non-current assets (or disposal groups) classified as held for sale
		Presentation of a non-current asset or disposal group classified as held for sale
		Discontinued operations
	In the starter kit
		Non-current assets and disposal groups classified as held to sale
		Discontinued operations
IFRS 8 - Segment reporting
	Requirements
		Segment reporting
		Entity-wide disclosures
	In the starter kit
About Starter Kits for SAP® BusinessObjects™ Solutions
                        
Document Text Contents
Page 2

© 2010 SAP
®
BusinessObjects

TM
Page 2



Copyright

© 2009 SAP® BusinessObjects™. All rights reserved. SAP BusinessObjects and its logos, BusinessObjects,
Crystal Reports®, SAP BusinessObjects Rapid Mart™, SAP BusinessObjects Data Insight™, SAP
BusinessObjects Desktop Intelligence™, SAP BusinessObjects Rapid Marts®, SAP BusinessObjects
Watchlist Security™, SAP BusinessObjects Web Intelligence®, and Xcelsius® are trademarks or registered
trademarks of Business Objects, an SAP company and/or affiliated companies in the United States and/or
other countries. SAP® is a registered trademark of SAP AG in Germany and/or other countries. All other
names mentioned herein may be trademarks of their respective owners.

Legal Disclaimer

No part of this starter kit may be reproduced or transmitted in any form or for any purpose without the
express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components
of other software vendors.

The information in this starter kit is proprietary to SAP. No part of this starter kit‘s content may be
reproduced, copied, or transmitted in any form or for any purpose without the express prior permission of
SAP AG. This starter kit is not subject to your license agreement or any other agreement with SAP. This
starter kit contains only intended content, and pre-customized elements of the SAP® product and is not
intended to be binding upon SAP to any particular course of business, product strategy, and/or development.
Please note that this starter kit is subject to change and may be changed by SAP at any time without notice.
SAP assumes no responsibility for errors or omissions in this starter kit. SAP does not warrant the accuracy
or completeness of the information, text, pre-configured elements, or other items contained within this starter
kit.

SAP DOES NOT PROVIDE LEGAL, FINANCIAL OR ACCOUNTING ADVISE OR SERVICES. SAP WILL
NOT BE RESPONSIBLE FOR ANY NONCOMPLIANCE OR ADVERSE RESULTS AS A RESULT OF
YOUR USE OR RELIANCE ON THE STARTER KIT.

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IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY,
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Page 38

How starter kits meet IFRS requirements
Version for SAP BusinessObjects Financial Consolidation, May 2010




© 2010 SAP
®
BusinessObjects

TM
Page 38

The correlation map between original audit-IDs and the audit-IDs used for NCI calculation is the following:



Audit-ID used for NCI calcul.

PACK01 Package data NCI-PACK01

PACK11 Local adjustment to Group accounting policies NCI-PACK10

PACK91 Package data - Central correction NCI-PACK90

ADJ90 Other adjustment - Central - Auto NCI-ADJ90

ADJ91 Other adjustment - Central - Man. NCI-ADJ90

CTA01 Currency translation adjustments - Equity - Man. NCI-CTA10

CTA10 Currency translation adjustments - Equity - Auto NCI-CTA10

DIS10 Elimination of internal gains and losses on disposal of assets - Auto NCI-DIS10

DIS11 Elim. of internal gain/loss on disposal of assets - Correction of dep - Man. NCI-DIS10

DIV10 Elimination of internal dividends - Auto NCI-DIV10

DIV11 Elimination of internal dividends - Man. NCI-DIV10

DIV20 Currency translation adjust. on dividends - Auto NCI-DIV20

DIV21 Currency translation adjust. on dividends - Man. NCI-DIV20

FVA10 Fair value for incoming entities (central) - Auto NCI-FVA10

FVA11 Fair value for incoming entities (central) - Man. NCI-FVA10

INV31 Adjust. on gain/loss on disposal of a subs., JV or associate NCI-INV30

PRO10 Elimination of impairment on investments - Auto NCI-PRO10

PRO11 Elimination of internal impairment on investment - Man. NCI-PRO10

PRO20 Elimination of internal provisions - Auto NCI-PRO20

PRO21 Elimination of internal provisions - Man. NCI-PRO20

Original audit-ID



For more information about consolidation rules, please refer to the starter kit configuration design
documentation.

Changes in consolidation scope


Handling changes in the consolidation scope is a key part of the consolidation process.

The recent revision of IFRS 3 and IAS 27 has brought many changes in the way consolidation scope
changes are accounted for. The key principle is that only a change in control (every change in control) is a
significant event.

Change in control means:

■ Obtaining control over an entity (and by analogy taking a significant influence or a joint control in an
entity) : see IFRS 3

■ Losing control of an entity (see the following section)

Once control has been achieved, any subsequent transactions that do not result in a loss of control are
accounted for as equity transactions (see the following section).

Loss of control

Principles

The loss of control of a subsidiary results in recognizing a gain or loss in the income statement. When the
parent company loses control but retains an interest, it triggers recognition of gain or loss on the entire
interest:

■ a gain or loss is recognized on the portion that has been disposed of;

■ a further gain is recognized on the interest retained, being the difference between the fair value of
the interest and its book value.

Both are recognized in the income statement.

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