Publications

Asia Pacific is the engine room of the global economy. GDP growth across the region outstrips the West; while the vast majority of European and North American economies are forecast to grow by less than 2% in 2016, many of those in Asia Pacific are looking for at least 3% growth and in some cases more. And while the Chinese economy cools, increasing economic cooperation between its neighbours has the potential to offset this.

Fees from international students offer an incredible boost to Higher Education Institutions’ (HEI) financial results. With some gaining as much as 30% of their income from this rapidly growing market – worth £20 billion overall.1 So institutions are increasingly competing for a share.

The guide is intended for Chief Financial Officers (CFOs) of businesses that prepare financial statements under IFRS.

The International Accounting Standards Board (IASB) published IFRS 8 "Operating Segments" to replace IAS 14 "Segment Reporting" for annual periods beginning on or after 1 January 2009 with earlier application permitted.

IFRS 7 Financial Instruments: Disclosures (IFRS 7) is not new - it came into effect for annual periods beginning on or after 1 January 2007. Nonetheless we think this guide is very topical. Experience has shown that IFRS 7 presents challenges, and two years of practical experience enables us to share our insights into the most problematic areas. Moreover, the global financial crisis has put the spotlight on the adequacy of risk and other disclosures concerning financial instruments. The crisis has also led the IASB to add some significant new requirements to IFRS 7 in recent months. The latest edition of the publication has been updated to reflect these requirements which come into effect from 1 January 2009.

When an entity issues a financial instrument, it must determine its classification either as a liability (debt) or as equity. That determination has an immediate and significant effect on the entity's reported results and financial position. Liability classification affects an entity's gearing ratios and typically results in any payments being treated as interest and charged to earnings. Equity classification avoids these impacts but may be perceived negatively by investors if it is seen as diluting their existing equity interests. Understanding the classification process and its effects is therefore a critical issue for management and must be kept in mind when evaluating alternative financing options.

The International Accounting Standards Board (IASB) issued a revised version of IAS 23 Borrowing Costs in March 2007. The new standard will result in a change in accounting policy for entities that applied the benchmark treatment of expensing borrowing costs under the previous standard. These entities will now need to develop procedures to calculate the amount of borrowing costs to be capitalised.

For annual periods commencing on or after 1 January 2009, IAS 1 Presentation of Financial Statements (Revised 2007) applies and makes significant changes to the presentation of the primary financial statements. Furthermore, interim reports for annual periods beginning on or after 1 January 2009 are affected by IFRS 8 Operating Segments which changes significantly the requirements on segment reporting. The revised standards impact on 2009 interim reports as the presentation will need to be consistent with that adopted at the full year. The Publication illustrates interim consolidated financial statements for a Group that produces half-yearly interim reports in accordance with IAS 34 at 30 June 2009.

Preparation of financial statements under International Financial Reporting Standards (IFRS) requires the application of IAS 12 Income Taxes (IAS 12). IAS 12 is not new. However, for many finance executives, the concepts underlying the computation of deferred tax are not intuitive. IAS 12 takes a mechanistic approach to the computation but also requires significant judgement in some areas. Also, applying the concepts of IAS 12 requires a thorough knowledge of the relevant tax laws. For all these reasons, many Chief Financial Officers (CFOs) find the calculation of a deferred tax provision causes significant practical difficulties.