P (International) Study Text Valid for exams from September 2017 to June 2018 ACCA ACCA Paper P2 Corporate Reporting (International) Welcome to Emile Woolf‘s study text for Paper P2 Corporate Reporting (INT) which is: Written by tutors Comprehensive but concise In simple English Used around the world by Emile Woolf including China, Russia and the UK Tenth edition published by Emile Woolf International Limited Bracknell Enterprise & Innovation Hub Ocean House, 12th Floor, The Ring Bracknell, Berkshire, RG12 1AX United Kingdom Email: info@ewiglobal.com www.emilewoolf.com © Emile Woolf International Limited, March 2017 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, without the prior permission in writing of Emile Woolf International Limited, or as expressly permitted by law, or under the terms agreed with the appropriate reprographics rights organisation You must not circulate this book in any other binding or cover and you must impose the same condition on any acquirer Notice Emile Woolf International Limited has made every effort to ensure that at the time of writing the contents of this study text are accurate, but neither Emile Woolf International Limited nor its directors or employees shall be under any liability whatsoever for any inaccurate or misleading information this work could contain British Library Cataloguing in Publications Data A catalogue record for this book is available from the British Library ISBN: 978-1-84843-664-0 Printed and bound in Great Britain Acknowledgements The Syllabus and study guide are reproduced by kind permission of the Association of Chartered Certified Accountants All IASB material is adapted and reproduced with the kind permission of the International Accounting Standards Committee Foundation © International Accounting Standards Committee Foundation (IASB) All rights reserved ii © Emile Woolf International Limited Emile Woolf Publishing Limited are grateful to the IFRS Foundation for permission to reproduce extracts from The International Financial Reporting Standards including all International Accounting Standards, SIC and IFRIC Interpretations IFRS Standards together with their accompanying documents are issued by; The International Accounting Standards Board (the “Board”) 30 Cannon Street, London, EC4M 6XH, United Kingdom Tel: +44 (0)20 7246 6410 Fax: +44 (0)20 7246 6411 Email: info@ifrs.org Web: www.ifrs.org Disclaimer: To the extent permitted by applicable law, the Board and the IFRS Foundation (Foundation) expressly disclaim all liability howsoever arising from this publication or any translation thereof whether in contract, tort or otherwise (including, but not limited to, liability for any negligent act or omission) to any person in respect of any claims or losses of any nature including direct, indirect, incidental or consequential loss, punitive damages, penalties or costs Information contained in this publication does not constitute advice and should not be substituted for the services of an appropriately qualified professional ISBN: 978-1-84843-664-0 Copyright © IFRS Foundation All rights reserved Reproduction and use rights are strictly limited Contact the Foundation for further details The authoritative text of IFRS Standards is that issued by the International Accounting Standards Board in the English language Copies may be obtained from the Foundation’s Publications Department Please address publication and copyright matters to: IFRS Foundation Publications Department 30 Cannon Street, London, EC4M 6XH, United Kingdom Tel: +44 (0)20 7332 2730 Fax: +44 (0)20 7332 2749 Email: publications@ifrs.org Web: www.ifrs.org © Emile Woolf International Limited iii iv © Emile Woolf International Limited Paper P2 (INT) Corporate Reporting c Contents Page Syllabus and study guide vii Chapter The professional and ethical duty of the accountant Chapter Beyond financial reporting Chapter The financial reporting framework 33 Chapter Reporting financial performance 73 Chapter Revenue 111 Chapter Non-current and current assets 151 Chapter Financial instruments 199 Chapter IFRS 16: Leases 255 Chapter Employee benefits 319 Chapter 10 IFRS 2: Share-based payments 335 Chapter 11 Taxation 357 Chapter 12 Provisions and events after the reporting period 379 Chapter 13 SMEs and specialised entities 401 Chapter 14 Group financial statements: Revision 419 Chapter 15 Joint arrangements, associates and joint ventures 469 Chapter 16 Group financial statements: complex groups 483 Chapter 17 Group financial statements: step acquisitions 509 Chapter 18 Group financial statements: disposals 523 Chapter 19 Group reorganisations and restructuring 545 Chapter 20 IFRS 13: Fair value measurement 559 Chapter 21 Foreign currency 577 © Emile Woolf International Limited v Paper P2 (INT): Corporate Reporting vi Chapter 22 Statements of cash flows 601 Chapter 23 Capital reconstructions 637 Chapter 24 Performance measurement 645 Chapter 25 Other issues 675 Practice questions 693 Answers 729 Index 791 © Emile Woolf International Limited Examinable documents Examinable documents International Accounting Standards (IASs)/International Financial Reporting Standards (IFRSs) Chapter: IAS IAS IAS IAS IAS 10 IAS 12 IAS 16 IAS 17 IAS 19 IAS 20 Presentation of Financial Statements Inventories Statement of Cash Flows Accounting Policies, Changes in Accounting Estimates and Errors Events after the Reporting Period Income Taxes Property, Plant and Equipment Leases Employee Benefits Accounting for Government Grants and Disclosure of Government Assistance IAS 21 The Effects of Changes in Foreign Exchange Rates IAS 23 Borrowing Costs IAS 24 Related Party Disclosures IAS 27 Separate Financial Statements IAS 28 Investments in Associates and Joint Ventures IAS 32 Financial Instruments: Presentation IAS 33 Earnings per Share IAS 34 Interim Financial Reporting IAS 36 Impairment of Assets IAS 37 Provisions, Contingent Liabilities and Contingent Assets IAS 38 Intangible Assets IAS 40 Investment Property IFRS First-time Adoption of International Financial Reporting Standards IFRS Share-based Payment IFRS Business Combinations (revised) IFRS Non-Current Assets Held for Sale and Discontinued Operations IFRS Financial Instruments: Disclosures IFRS Operating Segments IFRS Financial Instruments IFRS 10 Consolidated Financial Statements IFRS 11 Joint Arrangements IFRS 12 Disclosure of Interests in Other Entities IFRS 13 Fair Value Measurement IFRS 15 Revenue from contracts with customers IFRS for SMEs IFRS for small and medium sized entities © Emile Woolf International Limited 22 12 11 21 14 15 4 6, 14 12 6 25 10 14, 17 6, 18 7 3, 14 3, 15 3, 14 20 13 vii Paper P2 (INT): Corporate Reporting Chapter: Other Statements The Conceptual Framework for Financial Reporting Practice statement: Management Commentary The International Framework EDs, Discussion Papers and Other Documents ED 2014/04 Measuring quoted investments in subsidiaries, joint ventures at fair value ED 2015/01 Classification of liabilities – proposed amendments to IAS ED 2015/03 Conceptual framework for financial reporting ED 2015/08 Practice statement on materiality viii 2 14 3 © Emile Woolf International Limited ... ACCA Paper P2 Corporate Reporting (International) Welcome to Emile Woolf‘s study text for Paper P2 Corporate Reporting (INT) which is: Written by tutors... reporting ED 2015/08 Practice statement on materiality viii 2 14 3 © Emile Woolf International Limited Paper P2 (INT) Corporate reporting S Syllabus and study guide September 2017 to June 2 018. .. International Limited Paper P2 (INT) Corporate Reporting CHAPTER Beyond financial reporting Contents Corporate social responsibility Sustainability reporting Integrated reporting The UK Strategic