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Les antibiotiques sont produits sous des formes pharmaceutiques telles que des pilules acheter du amoxil.

elles permettent d'injecter la quantité de préparation strictement nécessaire.

Microsoft powerpoint - hkfrs-6-and-hkas-41-(presented)

HKFRS 6 and HKAS 41
Nelson Lam
CFA FCCA FCPA(Practising)MBA MSc BBA CPA(US) ACA xploration fo r & Evaluation of r & Evaluation of Mineral Reso urce Exploration for and Evaluation of
Mineral Resources (HKFRS 6)

Exploration for and Evaluation of
Mineral Resources – Sharing Points

Objective of HKFRS 6 Limited Improvements Recognition of exploration and evaluation assets Measurement of exploration and evaluation assets Presentation – classification and reclassification Effective date and transition 1. Objective of HKFRS 6
The objective of HKFRS 6 is – to specify the financial reporting for the exploration for and evaluation of mineral resources What are mineral resources? What are the exploration for and evaluation of mineral resources? 1. Objective of HKFRS 6
The objective of HKFRS 6 is – to specify the financial reporting for the exploration for and evaluation of mineral resources • Intended not to define in HKFRS 6 • but include minerals, oil, natural gas What are mineral resources? and similar non-regenerative resources affected companies include: oil, gas, mining ….
What are the exploration for and evaluation of mineral resources? • the search for mineral resources after the entity has obtained legal rights to explore in a specific area • the determination of the technical feasibility and commercial viability of extracting the mineral resource 1. Objective of HKFRS 6 (Summary)
In particular, the HKFRS requires: a.limited improvements to existing accounting practices for exploration and evaluation expenditures.
Improv emen
b.entities that recognise exploration and evaluation • assess such assets for impairment in accordance with HKFRS 6, and • measure any impairment in accordance with HKAS 36 Impairment of Assets.
c. disclosures that • identify and explain the amounts in the entity's financial statements arising from the exploration for and evaluation of mineral resources and • help users of those financial statements understand the amount, timing and certainty of future cash flows from any exploration and evaluation assets recognised.
2. Scope of HKFRS 6
Pre-Production Stage of Mineral Resources
Mineral resources Study & acquire Exploration
Study & acquire Exploration
2. Scope of HKFRS 6
Pre-Production Stage of Mineral Resources
Study & acquire Exploration
Study & acquire Exploration
• Study a site or • Acquire the legal • Search in Which stage(s) does HKFRS 6 cover? 2. Scope of HKFRS 6
• An entity shall apply HKFRS 6 to – Exploration and Evaluation (E&E) Expenditures that it incurs.
• HKFRS 6 does not address other aspects of accounting by entities engaged in the exploration for and evaluation of mineral resources. • An entity shall not apply HKFRS 6 to expenditures incurred: • before the exploration for and evaluation of mineral resources, such as expenditures incurred before the entity has obtained the legal rights to explore a specific area b) Post E&E
• after the technical feasibility and commercial viability of extracting a mineral resource are demonstrable 2. Scope of HKFRS 6
• An entity shall apply HKFRS 6 to – Exploration and Evaluation (E&E) Expenditures that it incurs.
Not su cces
Why do we concern E&E?
BASF, the largest chemical co., explained itsexploration risk as follows: In the oil and gas segment, future growth in exploration and production is largely based on the success of exploration activities.
When searching for new reserves of crude oil and natural gas there are geological risks with regard to the presence, quantity and quality of hydrocarbons.
2. Scope of HKFRS 6
• An entity shall apply HKFRS 6 to – Exploration and Evaluation (E&E) Expenditures that it incurs.
xploration a nd evaluation nd evaluation expenditu E&E expe nditures Not su cces
Expenditure s incu or ation for and the tech nical feas of extr acting a min xploration a nd evaluation nd evaluation asset ¾ E&E expenditures E&E expenditures recognised as asset recognised as asset s o rdance with the ent rdance with the ent ity's 2. Scope of HKFRS 6
In oil exploration and production industry
• While a few companies adopted Full Cost Method
– most companies follow Successful Efforts
Method in accounting for exploration and
development expenditure
• Including the "Big 3" …… 2004 Annual Report of BP plc BP plc , the largest integrated oil co., stated: • Oil and natural gas exploration and development expenditure is accounted for using the successful efforts method of accounting.
• Its accounting policy sets out 3 kinds of exploration and development expenditure as follows: 1. Licence and property acquisition costs 2. Exploration expenditure 3. Development expenditure Which is/are within the scope of HKFRS 6? 2. Scope of HKFRS 6
What's the situation in HK? 2004 Annual Report of PetroChina stated: • The successful efforts method of accounting is used for oil and gas exploration and production activities.
• Under this method, all costs for development wells, support equipment and facilities, and proved mineral interests in oil and gas properties are capitalised …… What are the details of successful efforts method …… discussed later! 3. Limited Improvements
a. Recognition of E&E assets Improv emen
b. Measurement of E&E assets c. Presentation – classification and 3a. E&E Assets – Recognition
HKFRS 6 has• Has no new specific criteria Temporary e
e xemption fro
xemption fro m
• But provides some exemptions HKAS 8 par
HKAS 8 par a
. 11 and 12
Requires that when developing its accounting policies – an entity recognising E&E
Thus, an entity adopting HKFRS 6 assets shall apply
may continue to use the accounting para. 10 of HKAS 8 policies applied immediately before adopting the HKFRS. • Exempts, subject to the requirements in HKFRS 6, – an entity from applying para. 11 & 12 of HKAS 8 to
its accounting policies for the
recognition & measurement
of E&E assets.
3a. E&E Assets – Recognition
Para. 10 of HKA
Para. 10 of HKA S
e s that, in the abs s that, in the abs ence R S or Interpretation t S or Interpretation t hat specifica hat specifical llly apples to a transaction, other event or condition No significant impact apples to a transaction, other event or condition Management shall use its judgement in • Requires that when developing Management shall use its judgement in developing and applying an accounting its accounting policies developing and applying an accounting polic polic y that resu y that resu lts in informatio lts in informatio n – an entity recognising E&E
Relevantt to the econom
to the econom ic de assets shall apply
eeds of users; and para. 10 of HKAS 8 b) Re
thatt the financial s the financial sttatements: l positi on, fina ii) reflect the eco reflect the eco nomic substa s, other event s and ons, and not merel are neutral l, i.e. free from bias; , i.e. free from bias; complete in all material respects. in all material respects. 3a. E&E Assets – Recognition
s ources of auth ce and states that – IIn making ju S an d Interpretation d Interpretation s deali r an d related iss the definiti ons, recogn ons, recogn ition cr d meas urement conc • Exempts, subject to the so consi ider the requirements in HKFRS 6, most recent pronou most recent pronou nceme standard-setting bodies (subject to – an entity from applying standard-setting bodies (subject to limitations and not conflict with the para. 11 & 12 of HKAS 8 to limitations and not conflict with the sources in p its accounting policies for the
recognition & measurement
of E&E assets.
If no such exemption ……


3a. E&E Assets – Recognition
Let's revisit the Framework …… • Asset is defined as a resource controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise • Recognition is the process of incorporating in the balance sheet or income statement an item that 1. meets the definition of an element and2. satisfies the criteria for recognition • Criteria for recognition – an item that meets the
definition of an element should be recognised if: If based on this, can If based on this, can 1. it is probable that any future economic benefit E&E expenditu E&E expend associated with the item will flow to or from the 2. the item has a cost or value that can be measured with If no such exemption …… 3a. E&E Assets – Recognition
Royal Dutch/Shell elaborated successful efforts method for its exploration costs in 2004 Annual Report as follows: – Exploration costs are charged to income when incurred, except that Can such cost be capitalised? • exploratory drilling costs are included in Can such cost be capitalised? Is inflow of future economic tangible fixed assets, pending determination Is inflow of future economic benefit really probable? of proved reserves.
benefit really probable? If no such exemption …… 3a. E&E Assets – Recognition
Sinopec also elaborated successful efforts method as follows: – Under this method, costs of development wells and the related support equipment are capitalised.
– The cost of exploratory well is initially capitalised Can such cost be capitalised? Can such cost be capitalised? as construction in progress w of future econom of future economic pending determination of whether the well has found proved reserves.
If no such exemption …… 3a. E&E Assets – Recognition
Temporary e
e xemption fro
xemption fro m
HKAS 8 par
HKAS 8 par a
. 11 and 12
• Thus, an entity adopting HKFRS 6 may continue to use the accounting policies applied immediately before adopting the HKFRS.
• This includes continuing to use recognition and measurement practices that are part of those accounting policies.
3b. E&E Assets – Measurement
Measurement at Recognition
E&E assets shall be ¾ Elements of cost of E&E assets
measured at cost.
• An entity shall • determine a policy specifying which expenditures are recognised as E&E assets and • apply the policy consistently.
• In making this determination, an entity • considers the degree to which the expenditure can be associated with finding specific mineral resources.
3b. E&E Assets – Measurement
Measurement at Recognition
E&E assets shall be
measured at cost.
Examples of expenditu urement of E&E as not exhaus ttive): acquis iition of ri tion of ri ghts to exp ghts to exp llore activities in re lla uat ing the techn ing the techn iic 3b. E&E Assets – Measurement
Measurement at Recognition
E&E assets do not include
– Expenditures related to the development of mineral resources, which shall not be recognised as E&E assets.
¾ The Framework and HKAS 38 Intangible Assets provide guidance on the recognition of assets arising from development.
• In accordance with HKAS 37 Provisions, Contingent Liabilities and Contingent Assets – an entity recognises any obligations for removal and restoration that are incurred during a particular period as a consequence of having undertaken the exploration for and evaluation of mineral resources.
3b. E&E Assets – Measurement
BP plc, early adopted IFRS 6 in 2005, stated its accounting policies that: • Exploration expenditure • Costs directly associated with an exploration well are capitalized as an intangible asset until the drilling of the well is complete and the results have been evaluated.
• Development expenditure • Expenditure on the construction, installation or completion of infrastructure facilities …… is capitalized within oil and gas properties.
• Decommissioning • Liabilities for decommissioning costs are recognized when the Group has an obligation to dismantle and remove a facility or an item of plant and to restore the site on which it is located, and when a reasonable estimate of that liability can be made.
• Where an obligation exists for a new facility ……. this will be on construction or installation.
3b. E&E Assets – Measurement
Measurement at Recognition
fter Recognition
• After recognition, an entity shall apply either Cos tt Mode
lua ttion Mode
ion Mode ll
to the E&E assets.
• If the revaluation model is applied, either the model in HKAS 16 or the – it shall be consistent with the classification of the assets.
Changes in Accounting Policy?
3b. E&E Assets – Measurement
• An entity may change its accounting policies for E&E expenditures if the change makes the financial statements Full Cost Method
– more relevant to the economic decision-making needs of users and no less reliable, or – more reliable and no less relevant to those • An entity shall judge relevance and reliability Successful
using the criteria in HKAS 8.
• To justify changing its accounting policies for E&E expenditures, an entity shall demonstrate Method Meets
– the change brings its financial statements closer to meeting the criteria in HKAS 8, The Framewor
– but the change need not achieve full compliance with those criteria.
Changes in Accounting Policy?
Classification of E&E assets
• An entity shall – classify E&E assets as tangible or intangible according to the nature of the assets acquired and – apply the classification consistently.
• Some E&E assets are treated as intangible (e.g. drilling rights), whereas others are tangible (e.g. vehicles and drilling rigs).
• HKFRS 6 further clarifies: – To the extent that a tangible asset is consumed in developing an intangible asset, the amount reflecting that consumption is part of the cost of the intangible asset.
– However, using a tangible asset to develop an intangible asset does not change a tangible asset into an intangible asset.
Reclassification of E&E assets
• An E&E asset shall no longer be classified – the technical feasibility and commercial viability of extracting a mineral resource are demonstrable.
E&E assets shall be assessed for impairment, and any impairment loss recognised, before reclassification.
BP plc, early adopted IFRS 6 in 2005, stated its accounting policies that: • Exploration expenditure • Costs directly associated with an exploration well are capitalised as an intangible asset until the drilling of the well is complete and the results have been evaluated.
• When proved reserves of oil and natural gas are determined and development is sanctioned, the relevant expenditure is transferred to oil and gas properties.
• Oil and gas properties • Oil and gas properties are depreciated using a unit-of- production method.
• The cost of producing wells is amortized over proved developed reserves …… Improv emen
E&E assets shall be assessed for impairment when – facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount.
Different from HKAS 36 • HKAS 36 instead requires an entity shall assess at each reporting date whether there is any indication that an asset may be impaired.
• When identifying an E&E asset that may be impaired Fact and circumstances are also referred to HKFRS 6, not HKAS 36 entity shoul d te st E&E ass the perio d for w n tity has the ri tity has the ri ght to exp n the specific are the specific are a ring the per iod n the near future the near future , and is not expected to be rene on fu rther explor rther explor atio resour ces in the spec ces in the spec ific area is ne ither bud ither bud geted n explor ation for ation for and eva o urces in the sp urces in the sp ecific area have not le d to the discover d to the discover y of commercial lly d to disco ntinue ntinue such activities in the such activities in the d) sufficient data sufficient data exist to indicat exist to indicat e t, althoug h a devel n t in the specifi t in the specifi c of the E&E as E&E as set set is unlike to be recovered in full to be recovered in full from su from su ccessful deve ccessful deve llopment or b • When facts and circumstances suggest that the carrying amount exceeds the recoverable amount – An entity shall measure, present and disclose any resulting impairment loss in accordance with HKAS 36 • Except for the level at which E&E assets are assessed for impairment • The level for assessment – does not follows HKAS 36 – but follows HKFRS 6 HKAS 36 requires: – Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. (para. 22) – If an active market exists for the output produced by an asset or group of assets, that asset or group of assets shall be identified as a cash-generating unit. (para. 70) If no exemption, e.g. in the petroleum sector – each well is potentially capable of producing cash inflows that are observable and capable of reliable measurement because there is an active market for crude oil …… Specifying the level at which E&E assets are assessed for impairment • An entity shall determine an accounting policy for allocating E&E assets to cash-generating units (CGUs) or groups of CGUs for the purpose of assessing such assets for impairment.
• Each CGU or group of CGUs to which an E&E asset is allocated shall not be larger than a segment • based on either the entity's primary or secondary reporting format determined in accordance with HKAS 14 Segment Reporting.
• The level identified by the entity for the purposes of testing E&E assets for impairment may comprise one or more CGUs.
BP plc, early adopted IFRS 6 in 2005, stated its accounting policies that: • Exploration expenditure • Costs directly associated with an exploration well are capitalised as an intangible asset …… • Intangible asset • Intangible assets are stated at cost less accumulated depreciation and accumulated impairment losses.
• As with property, plant and equipment, intangible assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
• Impairment losses are measured on a similar basis to property, plant and equipment.
• An entity shall disclose information that identifies and explains the amounts recognised in its financial statements arising from the exploration for and Improv emen
evaluation of mineral resources.
• To comply with it, an entity shall disclose: a) its accounting policies for E&E expenditures including the recognition of E&E assets.
b) the amounts of assets, liabilities, income and expense and operating and investing cash flowsarising from the exploration for and evaluation of mineral resources.
Disclosu r
• An entity shall – treat E&E assets as a separate class of assets and – make the disclosures required by either HKAS 16 or HKAS 38 consistent with how the assets are classified.
6. Effective Date and Transition
• An entity shall apply this HKFRS for – annual periods beginning on or after 1 January 2006. • Earlier application is encouraged.
– If an entity applies the HKFRS for a period beginning before 1 January 2006, it shall disclose that fact.
• If it is impracticable to apply a particular requirement of paragraph 18 (i.e. impairment review) to comparative information that relates to annual periods beginning before 1 January 2006, an entity shall disclose that fact. – HKAS 8 explains the term ‘impracticable'.
6. Effective Date and Transition
Sinopec stated in its 2005 Interim Financial Statements as follows: – Under IFRS 6, for each type of exploration and evaluation (E&E) expenditure, an entity is permitted to adopt a policy either of immediate expense or of capitalisation as an E&E asset.
– An entity is also allowed to continue its existing policy, subject to certain – Those limitations include requiring that an entity should segregate E&E assets into tangible and intangible items based on the nature of assets, and an entity should apply IAS 36 "Impairment of assets in measuring the impairment of E&E assets when there are indications that they carrying amount of an E&E asset may exceed its recoverable amount.
– IFRS 6 is effective for fiscal year beginning on or after 1 January 2006.
– Currently, the Group does not expect the application of this statement will have a material impact on its consolidated financial statements.
Agriculture (HKAS 41)
Agriculture – Sharing Points
Objective of HKAS 41 Government grants Effective date and transition Any difference from SSAP 36? Only name changed! Agriculture – Summary
2004 Annual Report states: • The principal effect of the implementation of SSAP 36 (HKAS 41) is in the accounting treatment, financial statement presentation and disclosure of agricultural activity.
• In previous years, biological assets and agricultural produce are stated at the lower of cost and net realisable value under the historical cost model.
• SSAP 36 requires the adoption of a fair value model …… 1. Objective of HKAS 41
• HKAS 41 prescribes – the accounting treatment,– financial statement presentation, and– disclosuresrelated to agricultural activity.
What is agricultural activity? 1. Objective of HKAS 41
Agricultural activity is the Biological transformation comprises
management by an entity of the processes of growth, degeneration, – the biological transformation production, and procreation that cause of biological assets qualitative or quantitative changes in a biological asset.
Biological asset is
• into agricultural produce, or – a living animal or plant.
• into additional biological Agricultural produce is
– the harvested product of the entity's biological assets.
Harvest is
– the detachment of produce from a biological asset, or – the cessation of a biological asset's life processes.


1. Objective of HKAS 41
Not within HKAS 41
Agricultural produce Product after harvest 2. Scope of HKAS 41
• shall be applied to account for the following when they relate to agricultural activity: • HKAS 41 is applied to agricultural a) biological assets; produce, which is the harvested product of the entity's biological b) agricultural produce at the assets, only at the point of harvest.
point of harvest; and • Thereafter, HKAS 2 Inventories, or c) government grants.
another applicable HKFRS is applied.
• does not apply to: a) land related to agricultural activity (see HKAS 16 or HKAS 40); and b) intangible assets related to agricultural activity (see HKAS 38).
Inventories or other
• An entity shall recognise a biological asset or agricultural produce when, and only when: a) the entity controls the asset as a result of b) it is probable that future economic Future economic
benefits associated with the asset will flow to the entity; and c) the fair value or cost of the asset can be Measured
measured reliably.
• In agricultural activity, control may be evidenced – legal ownership of cattle and the branding or – marking of the cattle on acquisition, birth, or Future economic
• The future benefits are normally assessed by measuring the significant physical attributes.
• Biological asset shall be measured • Agricultural produce harvested – on initial recognition and from an entity's biological assets – at each balance sheet date shall be measured at its less estimat
less estimat e
t-o f-sale co
f-sale co sts
less estimat
less estimat e
t-o f-sale co
f-sale co sts
at th
at th e p
e p o
ntt o
off h
h a
• except for the case where the • Such measurement is the fair value cannot be measured cost at that date when applying HKAS 2 Inventories, or another applicable HKFRS.
The first HKFRS requires fair value measurement in all stages without a choice.
4. Measurement – Fair Value
• Fair value, same as other HKFRS, is – the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.
less estimat
less estimat e
t-o f-sale co
f-sale co sts
less estimat
less estimat e
t-o f-sale co
f-sale co sts
at th
at th e p
e p o
ntt o
off h
h a
• Point-of-sale costs – include commissions to brokers and dealers, levies by regulatory agencies and commodity exchanges, and transfer taxes and duties,but – exclude transport and other costs necessary to get assets to a 4. Measurement – Fair Value
2004 Annual Report stated the following points: • In general, biological assets on initial recognition and at each balance sheet date are measured – at fair value less estimated point-of-sale costs.
• Agricultural produce harvested from an entity's biological assets is – at its fair value less estimated point-of-sale costs at the point of harvest.
• The adoption of SSAP 36 (HKAS 41) has resulted in the Group stating grape vines and grape – at fair value less estimated point-of-sale costs.
• In prior years, – grape vines were stated at cost less accumulated depreciation and – grapes were stated at the lower of cost and net realisable value.
4. Measurement – Fair Value
Determination of fair value • Facilitated by grouping biological assets or agricultural produce according to significant attributes, for example, by age or quality – An entity select the attributes corresponding to the attributes used in the market as a basis for pricing • Contract price may not a good indicator – Since fair value reflects the current market conditions but contract prices do not – Fair value is not adjusted because of the existence of a contract 4. Measurement – Fair Value
Determination of fair value • If an active market exists ⇒ quoted price is appropriate basis for determining the fair value • If an entity has access to different active markets ⇒ the entity uses the most relevant one, say the market expected to used 4. Measurement – Fair Value
Determination of fair value • If no active market exists ⇒ consider the following: a) the most recent market transaction price, provided no recent significant change in economic circumstances b) market prices for similar assets with adjustment to reflect differences c) sector benchmarks such as the value of an orchard expressed per export tray, bushel, or hectare, and the value of cattle expressed per kilogram of meat d) present value of expected net cash flows from the asset discounted at a current market-determined pre-tax rate in determining fair value 4. Measurement – Fair Value
• At 31 Dec. 2001, Entity A's plantation consists of 100 PP trees – Those trees were planted 10 years earlier and would take 30 years to mature– They will ultimately be processed into building material for houses or furniture. – Entity A's weighted average cost of capital (WACC) is 6% per annum.
• Only mature trees have established fair values by reference to a quoted price in an active market. – The fair value (inclusive of current transport costs to get 100 logs to market) for a single mature tree of the same grade as in the plantation is: • At 31 Dec. 2001 – $171• At 31 Dec. 2002 – $165 F or the mature plantatio or the mature plantatio n, the fair value n, the fair value w int of harvest, the fair of harvest, the fair value of the pl a n tation is estim tation is estim a s at 31 Dec. 2001 Î 00 ÷ (1 + 6%
(1 + 6%)20
s at 31 Dec. 2002 Î 00 ÷ (1 + 6%
(1 + 6%)19
4. Measurement – Fair Value
2004/05 Interim Report explained thedetermination of the fair value as follows: – In accordance with the valuation report issued by Sallmanns, an independent professional valuer, the fair values less estimated point-of-sale costs of the biological assets are determined under the following basis: a) Fruit trees and tea trees: present value of expected net cash flows from the biological assets discounted at a current market-determined pre-tax rate; and b) Livestock: market-determined prices of biological assets with similar size, species and age.
– The fair values of vegetables are determined by the directors with reference to market-determined prices, cultivation area, species, growing conditions, cost incurred ad expected yield of crops.
4. Measurement – Fair Value
Determination of fair value • Cost may sometimes approximate fair value, particularly when a) little biological transformation has taken place since initial cost incurrence(for example, for fruit tree seedlings planted immediately prior to a balance sheet date); or b) the impact of the biological transformation on price is not expected to be material(for example, for the initial growth in a 30-year pine plantation production cycle) 4. Measurement – Fair Value
2005 Annual Report states: • As at 30 April 2005, the biological assets carried at cost represented the growing of asparagus.
• The asparagus was cultivated at initial stage and the directors – the fair value of asparagus was largely the same as the cost incurred after taking into consideration the growing conditions and the period of plantation.
4. Measurement – Fair Value
Determination of fair value • Biological assets are often physically attached to land (for example, trees in a plantation forest).
There may be no separate market for biological assets that are attached to the land but an active market may exist for the combined assets, that is, for the biological assets, raw land, and land improvements, as a package.
• An entity may use information regarding the combined assets to determine fair value for the biological assets.
For example, the fair value of raw land and land improvements may be deducted from the fair value of the combined assets to arrive at the fair value of biological assets.
4. Measurement – Gain and Loss
• Included in profit or loss for the period in which ¾ a gain or loss arising on initial recognition of a biological asset at fair value less estimated point-of-sale costs ¾ a gain or loss arising from a change in fair value less estimated point-of-sale costs of a biological asset ¾ a gain or loss arising on initial recognition of agricultural produce at fair value less estimated point-of-sale costs(say as a result of harvesting 4. Measurement – Gain and Loss
• The fair value less estimated point-of-sale costs of a biological asset can change due to both: i) Physical changes - the physical change or growth of a biological ii) Price changes - the effects of change in market price of a biological asset, in the market.
Encouraged to disclose
4. Measurement – Gain and Loss
• The aggregate gain and loss can thus be analysed as follows: i) Physical change represents, at current prices: • the value of the biological asset in its state as at current B/S date • less the value of the biological asset in its state as at previous B/S date ii) Price change represents, at the biological asset's Previous sta tte state as at the previous B/S date: • the value of the biological asset at prices prevailing as at current B/S date • less the value of the biological asset at prices prevailing as at previous B/S date Encouraged to disclose
4. Measurement – No Fair Value
• HKAS 41 makes a presumption that fair value can be measured reliably for a biological asset.
• However, that presumption can be rebutted Presumption
only on initial recognition for a biological asset 1. which market-determined prices or values are not available, and Restrictive conditions 2. which alternative estimates of fair value are determined to be clearly unreliable.
se, thatt biological a – i its cost less any accum ts cost less any accum u ng HKAS 2, 16 and 36) 4. Measurement – No Fair Value
Presumption
• Once the fair value of such a biological asset becomes reliably ¾ an entity shall measure it at its fair value less estimated • Once a non-current biological asset meets the criteria to be classified as held for sale (or is included in a disposal group that is classified as held for sale) in accordance with HKFRS 5 ¾ it is presumed that fair value can be measured reliably.
4. Measurement – No Fair Value
2004 Annual Report states: • Given the uncertainty in the process of prodcuing ginseng crops and the lack of a market for immature ginseng, the ginseng crops are stated at cost less impairment until the time of harvest …… • At the point of harvest, ginseng crops are stated at their fair value less estimated point-of-sale costs.
5. Government Grants
Government grants related to biological assets • Measured at fair value less estimated point-of-sale costs • If such government grant is unconditional ¾ it shall be recognised as income when, and only when, it becomes receivable • If such government grant is conditional ¾ an entity shall recognise the government grant as income when, and only when, the conditions attaching to such grant are met • Measured at cost • An entity applies HKAS 20 Accounting for Government Grants and Disclosure of Government Assistance ¾ for example, para. 12 of HKAS 20 requires government grants be recognised as income over the periodsnecessary to match them with the related costs which they are intended to compensate, on a systematic basis 5. Government Grants
• Entity A receives a government grant of HK$ 5 million.
• It is required to farm in a particular location for 5 years.
• It will be required to return all of the government grant if it farms for less than 5 years.
income until the five years ha ve passe grant allo ws part ws part of the go HKAS 1 requires that
• As a minimum, the face of the balance sheet shall include line items that present the following amounts: a) property, plant and equipment; b) investment property; c) intangible assets; d) financial assets e) investments accounted for using the equity method; f) biological assets; • Lengthy and detailed disclosures are required in HKAS 41 • General disclosure includes – the aggregate gain or loss arising during the current period • on initial recognition of biological assets and agricultural produce, and • from the change in fair value less estimated point-of-sale costs of biological assets.
– a description of each group of biological assets – the methods and significant assumptions applied in determining the fair – a reconciliation of changes in the carrying amount of biological assets • Additional disclosure – biological assets where fair value cannot be measured reliably – government grant related to agricultural activity 2004 Annual Report set out the accounting policy on biological assets as follows:• Grape vines are measured at their fair value less estimated point-of-sale costs. – The fair value of grape vines is determined based on the present value of expected net cash flows from the grape vines discounted at a current market-determined pre-tax rate.
– Grape vines are perennial plants which have growth cycles of more than – Gain or loss arising on initial recognition of grape vines at fair value less estimated point-of-sale costs is dealt with in the profit and loss accountwhen it arises.
• Agricultural produce comprises grapes.
– Self-grown grapes are measured at their fair value less estimated point-of- sale costs at the time of harvest.
– The fair value of grapes is determined based on market prices in the local area, which represents the estimated purchase cost that the Group has to procure such raw materials in the market on an arm's length basis.
Note on biological assets At beginning of yearAs previously reported Prior year adjustment:SSAP 36 – restatement of biological assets Gains arising from changes in fair value attributable to physical changes Decrease due to harvest • The Group harvested 3,222,000 kg of grape with a fair value less estimated point-of-sale costs of HK$7,533,000 in the year ended 31 Dec. 2004.
• Significant assumptions made in determining the fair value of the biological assets are as follows: a) The grape vines will continue to be competently managed and remain free from irremediable disease in the remaining estimated useful lives; b) The expected prices of grapes are based on the past actual average district c) The future cash flows have been discounted at the target rate of return on equity of the wineries segment.
7. Effective Date and Transition
• HKAS 41 becomes operative for annual financial statements covering periods beginning on or after 1 January 2005.
• Earlier application is encouraged.
• If an entity applies HKAS 41 for periods beginning before 1 January 2005, it shall disclose that fact.
• HKAS 41 does not establish any specific transitional provisions.
• The adoption of HKAS 41 is accounted for in accordance with HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors ¾ i.e. retrospective application • reclassify to biological assets• adjust opening retained earnings• restate comparative information 7. Effective Date and Transition
• SSAP 36 (HKAS 41) was adopted during the year …… this change in accounting policy has resulted in the following prior year adjustments: a) reversal of depreciation on the grape vines of HK$1,139,000 for the year ended 31 December 2003 and reclassification of grape vines with a carrying value of HK$21,604,000 from fixed assets to biological assets as of 31 December 2003 …… • As a consequence, the Group's biological assets as of 31 December 2003 has been increased by HK$32,651,000.
• The net profit attributable to shareholders for the year ended 31 December 2003 has been increased by HK$2,743,000.
• The consolidated retained profits at 1 January 2003 and 2004 have been increased by HK$1,822,000 and HK$4,565,000, respectively, as detailed in the consolidated summary statement of changes in equity.
7. Effective Date and Transition
Interim Report 2004 states: • The adoption of SSAP 36 has resulted in changing the Group's accounting policy and applied retrospective.
• As a result, comparative figures have been restated.
HKFRS 6 and HKAS 41
xploration fo r & Evaluation of r & Evaluation of ssib e amen
Mineral Reso urce – has not been developed as a long term standard – but, rather, has to be seen as a stepping stone towards a more comprehensive and conceptually sound standard dealing with the accounting for exploration for and evaluation of mineral resources that meets the needs of all stakeholders.
(European Financial Reporting Advisory Group, 2005) Mineral resources HKFRS 6 covers only these
Study & acquire Exploration
Study & acquire Exploration
All the other areas? Mineral resources HKFRS 6 covers only these
Study & acquire Exploration
Study & acquire Exploration
The IABS c llarified that: ul d seek to devel d seek to devel op an to resolv iing accou issues in the e x • It does not currentl It does not currentl y ev er, it has asked a grou er, it has asked a grou p of nationa l standar l standar d-setters to search pro jject t the foundati on for such a proj ect.
T he project team intends to he project team intends to pr oratin g the its prelim g the its prelim ina ishe d for public comm d for public comm ent late in 20 ent late in 20 05 HKFRS 6 and HKAS 41
Nelson Lam
HKFRS 6 and HKAS 41
Updated version of the slides be found in Q&A Session
Nelson Lam

Source: http://www.nelsoncpa.com.hk/slidepdf/HKICPA-20051005.pdf

Microsoft word - 01 conceptual framework iadb-idea phase i.doc

INTER-AMERICAN DEVELOPMENT BANK Universidad Nacional de Colombia - Sede Manizales Instituto de Estudios Ambientales INFORMATION AND INDICATORS PROGRAM FOR DISASTER RISK MANAGEMENT IADB - ECLAC - IDEA EXECUTION OF COMPONENT II Indicators for Disaster Risk Management OPERATION ATN/JF-7907-RG

Product data sheet

BMS/Graphics Interface Features The Mxp-010 interface allows BMS systems and graphics PCs to be integrated with the Mx-4000 series of Fire Control Panels and Remote Terminals. The interface is an integral part of the Ad-Net network, handling all the network traffic, prioritisation, etc. whilst allowing the external BMS/Graphics systems to issue commands and receive information over a simple RS232 bi-directional serial port.