INVESTMENT PROPERTY

Full PFRS PFRS for SMEs

Definition Same as IFRS for SMEs.
Accounting result likely to
be the same.
Investment property is a
property (land or building,
or part of a building, or
both) held by the owner
or by lessee under a
finance lease to earn
rentals or for capital
appreciation or both.

Initial Measurement Cost of purchased SAME as that of Full PFRS

investment =
Purchase Price + Directly
Attributable Costs (legal
and brokerage fees,
property transfer taxes
and other transaction
cost)
except of treatment of
Borrowing Costs.
Borrowing costs are
recognized as an
expense.

Borrowing costs that are

directly attributable to
the acquisition,
construction or
production of a qualifying
asset are required to be
capitalized as part of
the cost of that asset.
Subsequent Fair Value or at Cost At fair value if its fair
Measurement value can be measured
However, when an reliably without undue
investment property is cost or effort.
held by a lessee under
an operating lease, the Otherwise, the cost
entity follows the Fair model is used.
Value model for all its
investment properties.
Fair Value Gains and losses arising (Same as Full PFRS)
from changes in the fair
value of investment
property are recognized
in profit or loss.
Cost Model (Same as PFRS for SMEs) The cost model is
consistent with the
 treatment of property,
plant and equipment
(PPE).

Investment properties are

carried at cost less
accumulated depreciation
and any accumulated
impairment losses
Transfers IFRS includes further Transfer to or from
guidance on the investment properties
situations when a applies when the property
property can be meets or ceases to meet
transferred to or from the the definition of an
investment property investment property.
category.

PROPERTY PLANT AND EQUIPMENT

Full PFRS PFRS for SMEs

Definition Property, plant and
equipment (PPE) are
tangible assets that are: (Same definition)

Held for use in the

production or supply of
goods and services, for
rental to others or for
administrative purposes.

Expected to be used
during more than one
period

PPE classified as held for

sale, biological assets,
and some others are
explicitly out of scope of
IAS 16.

Initial Measurement Cost of purchased Purchase Price + Directly

investment = attributable costs to bring
Purchase Price + Directly the asset to the location
Attributable Costs (legal and condition necessary
 and brokerage fees, for it to be capable of
property transfer taxes operating in the manner
and other transaction intended by
cost) management.

Borrowing costs that are The initial estimate of

directly attributable to costs of dismantling and
the acquisition, removing the item and
construction or restoring the site on
production of a qualifying which it is located.
asset are required to be
capitalized as part of Borrowing costs are
the cost of that asset. recognized as an
expense.
Subsequent Cost or Revaluation Cost Model
Measurement model , wherein PPE are
carried at PPE are carried PPE are carried at cost
at cost less accumulated less accumulated
depreciation and any depreciation and any
impairment losses or at a impairment losses.
revalued amount less
any accumulated
depreciation and
subsequent accumulated
impairment losses.
Major inspection same The cost of a major
inspection or replacement
of parts of an item
occurring at regular
intervals over its useful
life is capitalized to the
extent that it meets the
recognition criteria of an
asset.

The carrying amount of

the previous
inspection or parts
replaced is
Impairment (Same as PFRS for SMEs) PPE is tested for
impairment when there is
an indication that the
asset may be
impaired. Existence of
impairment indicators is
assessed at each
reporting date.
Depreciation-definition Same as pfrs for smes The systematic allocation
of the depreciable
amount of an asset over
its useful life.
Components approach PPE may have PPE may have
significant parts with significant parts with
different useful lives. different useful lives.
Depreciation is calculated The cost of an item of PPE
based on each is allocated to its
individual parts life. significant parts, with
each part depreciated
Significant parts that separately only when
have the same useful the parts have
life and depreciation significantly different
method may be grouped patterns of benefit
in determining the consumption.
depreciation charge.
Depreciation charge same The depreciation charge
for each period is
recognized in the profit
or loss unless it is
included in the carrying
amount of another asset.
Depreciable amount The depreciable amount The depreciable amount
and Depreciable of an asset is allocated of an asset is allocated
period over its useful life. over its useful life.

The residual value and The residual value and

the useful life of an the useful life of an
asset are reviewed at asset are reviewed if
least at each annual there is an indication
reporting date and of change since the last
amended if expectations reporting date and
differ from previous amended if expectations
estimates. differ from previous
estimates.
Change in residual
value or useful life is Change in residual
accounted for as a value or useful life is
change in estimate. accounted for as a
change in estimate.
Depreciation Method Similar to IFRS for SMEs. The depreciation method
should reflect the pattern
The depreciation in which the assets
method is reviewed at future economic benefits
least at each annual are expected to be
reporting date. consumed by the entity.
 Change in the
depreciation method is
accounted for as a
change in estimate.
Non-current assets Similar to IFRS for SMEs.
held for sale
In addition, PPE is
classified as held for sale
if its carrying amount will
be recovered principally
through a sale
transaction rather than
through continuing use.
Assets held for sale,
which are not
depreciated, are
measured at the lower
of its carrying amount
and fair value less
costs to sell.
GOVERNMENT GRANT
Full PFRS
Definition Similar to IFRS for SMEs.
The depreciation method
is reviewed if there is
an indication that
there has been a
significant change
since the last annual
reporting date.
Change in the
depreciation method is
accounted for as a
change in estimate.
PFRS for SMEs does not
address noncurrent
assets held for sale.
A plan to dispose of an
asset is an indicator of
impairment that triggers
the calculation of the
assets recoverable
amount for the purpose
of determining whether
the asset is impaired.
PFRS for SMEs
Assistance by

Recognition and There are two broad
Measurement options under IAS 20: the
capital approach and the
income approach.
Accounting and
presentation could
therefore be different.
Revenue is not
recognized until there is a
reasonable assurance
that:
The entity grant proceeds are
complies with
the
conditions attached to
the grants; and
The grantsare future performance
receivable.
Government grants are
recognized in the
statement of
comprehensive income
over the periods
necessary to match
them with the related
costs that they are
intended to compensate,
on a systematic basis.
They are not credited
directly to shareholders income when all
interest
government in the form
of transfers of resources
to an entity in return for
past or future compliance
with certain conditions
relating to the operating
activities of the entity.
An entity recognizes
government grants
according to the nature of
the grant as follows:
A grant that does
not impose
specified future
performance
conditions on the
recipient is recognized
in income when the
receivable.
A grant that
imposes
specified
conditions on the
recipient is recognized in
income only when the
performance
conditions are met.
Grants received
before the
income
recognition criteria are
satisfied are
recognized as a
liability and released to
attached conditions have
been complied with.
Grants are measured at
the fair value of the
asset received or
 receivable.
Disclosures accounting policy nature and extent of
adopted for grants, grants recognized in
including method of the financial
balance sheet statements
presentation
nature and extent of unfulfilled conditions
grants recognized in and contingencies
the financial attaching to recognized
statements grants that has not
been recognized in
** *

unfulfilled conditions income

and contingencies
attaching to recognized an indication of other
grants forms of government
assistance fom which
the entity directly
benefited.

BORROWING COSTS

Full PFRS PFRS for SMEs

Definition Similar to IFRS for SMEs. Interest and other costs
that an entity incurs in
connection with the
borrowing of funds.

Interest expense
calculated using
effective interest
method
Finance charges in
respect of finance
leases recognized
Exchange
differences arising
from foreign
currecy borrowings
to the extent that
they are regarded
as an adjustment
to interestcosts
Recognition Directly attributable Recognize all borrowing
borrowing costs are costs as expense of the
capitalized as part of period when incurred.
 the cost of the asset.
PFRS for SMEs does not
However, costs not permit capitalization of
directly attributable interest directly
are expensed. attributable or not
Disclosures Amount of Finance costs
borrowing cost Total interest
capitalized expense using the
during the effective interest
period method for
Capitalization financial liabilities
rate used to that are not
determine the measured at fair
amount of value through
borrowing cost profit or loss
eligible for
capitalization

INTANGIBLE ASSETS

Full PFRS PFRS for SMEs

Definition Same as pfrs for smes An intangible asset is an
identifiable non-monetary
asset without physical
substance. The
identifiable criterion is
met when intangible
asset is separable (that
is, it can be sold,
transferred, licensed,
rented or exchanged), or
where it arises from
contractual or legal
rights.
General principles for same Expenditure on
recognition intangibles is recognized
as an asset when it meets
the recognition criteria of
an asset.
Recognition as same Expenditure on the
expense following items is not
recognized as assets:
Start-up costs.
Training.
Advertising
 . Relocation costs.
Expenditures
on internally
generated intangibles
such as brands,
mastheads, customer
lists, publishing titles
and items similar in
substance

. Past expenses on
intangible items are not
recognized as an asset.
Initial Measurement
Separately acquired same Intangible assets are
intangible assets measured initially at cost.
Cost includes
:
The purchase
price,
Any costs
directly
attributable
to
preparing
the assets for its
intended use.
Intangible assets The cost of an intangible
acquired as part of a asset acquired as a part
business combination of a business combination
is its fair value at the
acquisition date.
Research and Research costs are All research and
development costs expensed as incurred. development costs are
Development costs are recognized as an
capitalised when specific expense.
criteria are met
Subsequent Measurement
Measurement after In addition to the cost Intangible assets are
initial recognition model, the revaluation carried at cost less any
model is an option, in accumulated amortization
which intangible and any accumulated
assets are carried at a impairment losses (cost
revalued amount less model).
any accumulated
depreciation and
subsequent
 accumulated
impairment losses.
Useful life The useful life of an
intangible asset is either
finite or indefinite.
The useful life is
regarded as indefinite
when, based on analysis
of all of the relevant
factors, there is no
foreseeable limit to the
period over which the
asset is expected to
generate net cash
inflows.
Similar to IFRS for SMEs
with regard to the useful
life of an intangible asset
that arises from
contractual or other legal
rights, except that
renewal periods may be
taken into account if
certain criteria are met.
Intangible assets with Intangible assets with
finite useful life finite useful life (including
those that are revalued)
are amortised.
Amortization is carried
out on a systematic basis
over the useful lives of
the intangibles.
Same as IFRS for SMEs
with regard to the
residual value of such
assets.
The amortization period,
method and residual
value are reviewed at
least at each annual
reporting period
The useful life of an
intangible asset is
considered to be finite.
The useful life of an
intangible asset that
arises from contractual or
other legal rights should
not exceed the period of
the contractual or other
legal rights but may be
shorter depending on the
period over which the
asset is expected to be
use
Intangible assets are
amortised on a
systematic basis over the
useful lives of the
intangibles.
The useful life of an
intangible is presumed to
be 10 years if a reliable
estimate cannot be
made. The residual value
at the end of their useful
lives is assumed to be
zero, unless there is
either a commitment by a
third party to purchase
the asset and/or there is
an active market for the
asset.
The amortization period,
 method and residual
value are reviewed if
there is an indication of
change since the last
reporting date. Changes
in the amortization
period/method are
accounted for as a
change in estimate
Intangible assets with These assets are not Not applicable. All
indefinite useful life amortised. The useful life intangible assets are
assessment is reviewed considered to have finite
at each annual reporting lives
period to determine
whether events and
circumstances continue
to support an indefinite
useful life assessment.

Change in the useful life

assessment from
indefinite to finite is an
indicator that an asset
may be impaired and is
accounted for as a
change in estimate.
Impairment Same as IFRS for SMEs. Intangible assets are
tested for impairment
In addition, intangibles when there is an
with indefinite useful indication that the asset
lives are tested for may be impaired.
impairment annually
irrespective of whether Existence of impairment
there is an indication of indicators is assessed at
impairment. each reporting date.

IMPAIRMENT OF ASSETS

Full PFRS PFRS for SMEs

Impairment formula Same as pfrs for smes An asset is impaired when
its carrying amount
exceeds it recoverable
amount, whereby the
recoverable amount is
defined as the higher of
 an assets or CGUs fair
value less costs to sell
and its value in use.
Impairment Losses Same as IFRS for SMEs, An impairment loss is
unless the asset is carried recognized immediately
at revalued amount in in the profit or loss.
accordance with another
standard. In this case, the
impairment loss is treated
as a revaluation decrease
in accordance with that
other standard.
Annual assessment of The following assets are Assets (including
indicators tested for impairment goodwill) are tested for
irrespective of whether impairment when there is
there is indication of an indication that the
impairment: asset may be impaired.
Intangible assets The existence of
with an impairment indicators is
indefinite useful assessed at each
life or an intangible asset reporting date
not yet available for use.
Goodwill.
Indicators of External indicators of
impairment Same as IFRS for impairment include a
SMEs. An additional decline in an assets
indicator exists when market value, significant
the entitys net asset adverse changes in
value is above its technological, market,
market capitalization. economic or legal
environment and
increases in market
interest rates. Internal
indicators include
evidence of obsolescence
or physical damage of an
asset, changes in the way
an asset is used (for
example, due to
restructuring or
discontinued operations)
or evidence from internal
reporting that the
economic performance of
an asset is, or will be,
worse than expected.
Recoverable amount same Recoverable
 amount is the
higher of an assets
(or CGUs) fair
value less costs to
sell and its value in
use. If either
exceeds the
carrying amount, it
is not necessary to
estimate the other
amount.
Value in use Same as IFRS for SMEs, The value in use is
but more extensive defined as the present
guidance about future value of the future cash
cash flows estimation flows expected to be
derived from an asset or
CGU. Future cash flows
are estimated for the
asset in its current
condition.

Cash inflows or outflows

from financing activities
and income tax receipts
or payments are not
included.
Fair value less costs to same When performing the
sell impairment test of an
asset (or CGU), the entity
estimates the fair value
less costs to sell based on
a hierarchy of reliability of
evidence
: A price in
a binding
sale agreement
in an arms length
or market price in an
active market, less costs
of disposal.
Best available
information to
reflect the
amount that an entity
could obtain at the
reporting date from
disposal of the asset in an
 arms length transaction
between
knowledgeable, willing
parties, less costs of
disposal. Outcome of
recent transactions for
similar assets within the
same industry need to
be considered.
Allocation of goodwill Goodwill acquired in a Goodwill is allocated to
business combination is the CGUs that are
allocated to the CGUs expected to benefit from
that are expected to the synergies of the
benefit from the combination. If such
synergies of the allocation is not possible
combination. IAS 36 and the reporting entity
includes comprehensive has not integrated the
guidance on how to acquired business, the
allocate goodwill under acquired entity is
several circumstances. measured as a whole
when testing goodwill
Goodwill is tested for impairment. If such
impairment at the lowest allocation is not possible
level at which it is and the acquired
monitored by business is integrated,
management. CGUs may the entire group is
be grouped for testing, considered when testing
but the grouping cannot goodwill impairment.
be higher than an
operating segment as Note: integrated means
defined in IFRS 8 (before that the acquired
aggregation). business has been
restructured or dissolved
into the reporting entity
or other subsidiaries
Reversal of Similar to IFRS for SMEs; At each reporting date
impairment however, includes more after recognition of the
detailed guidance and impairment loss, an entity
distinction of reversal of assesses whether there is
impairment for an any indication that an
individual asset, a CGU impairment loss may
and goodwill. have decreased or may
no longer exist. The
impairment loss is
reversed if the
recoverable amount of an
asset (CGU) exceeds its
carrying amount. The
amount of the reversal is
subject to certain
limitations.

Goodwill impairment can

never be reversed.