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IFRS 6 Exploration and Evaluation of Mineral Resources

An entity applies IFRS 6 in accounting for exploration and evaluation expenditures it incurs on mineral resources except for the costs incurred before the entity obtains the legal rights to explore and the costs incurred after technical feasibility and commercial viability of the resources has been demonstrated.

IFRS 5 Non-current Assets Held for Sale & Discontinued Op.

FRS 5 requires assets held for sale to be measured at the lower of their carrying amount or fair value less costs to sell. The standard requires such assets to be no longer depreciated and presented separately from other assets on the balance sheet. Any income from discontinued operations is also presented separately.

IFRS 10 Consolidated Financial Statements

IFRS 10 'Consolidated Financial Statements' requires an entity which controls one or more entities to present consolidated financial statements. The standard provides guidance on the concept of control, sets out accounting requirements for consolidated financial statements, and outlines criteria for exemptions available to investment entities.

IFRS 3 Business Combinations

IFRS 3 'Business Combinations' requires an acquirer to apply the acquisition method in accounting for business combination. This involves determination of fair value of the consideration, fair value of the net identifiable assets and any goodwill.

IFRS 9 Hedge Accounting

A hedging relationship qualifies for hedge accounting only if (a) it consists of eligible hedging instrument and hedged instrument, (b) the hedge relationship is designated and documented at inception, and (c) the hedge is effective.

IFRS 9 Reclassification

IFRS 9 does not allow reclassification of financial liabilities but allows reclassification of financial assets only it is evident from change in the investor's business model.

IFRS 9 Measurement & Impairment

IFRS 9 requires a financial asset and liabilities to be initially measured at fair value and subsequently at amortized cost or fair value depending on the classification. It also introduces a new forward-looking expected credit losses impairment requirements.

IFRS 9 Classification

Under IFRS 9, subsequent to initial recognition, an entity classifies its financial assets as measured at amortized cost, FVOCI and FVTPL depending on (a) the entity’s business model, and (b) the contractual cash flow characteristics of the financial assets. Financial liabilities are primarily classified at amortized cost.

IFRS 9 - Scope, Recognition & Derecognition

IFRS 9 is to be applied by all entities to all of their financial instruments except (a) interests in subsidiaries, associates and joint ventures, (b) leases, (c) rights and obligations covered under IFRS 2, IFRS 15, IAS 19, IAS 37, etc.

International Financial Reporting Standards

IFRS are accounting standards issued by the International Accounting Standards Board (IASB). These are mainly used by publicly-traded entities to prepare general-purpose financial statements. The IFRS also includes the International Accounting Standards (IAS) issued by predecessor body of the IASB, the International Accounting Standards Committee, and related interpretations issued by the Interpretations Committee.

IFRS 2 Share-based Payment

IFRS 2 Share-based payment deals with accounting for share-based payment transactions and issuance of share options to employees. It is applied to transactions which are settled by transfer of equity of the entity (or that of its parent or sister subsidiary) or by transfer of cash (equivalent to the value of the shares) or either (at the option of either the entity or the vendor).

IAS 34 Interim Financial Reporting

IAS 34 specifies the minimum content requirements of interim financial reports. While it does not provide guidance on who should prepare interim financial reports and when, it recommends publicly-traded entities to prepare the half-yearly financial reports within 60 days of the period end.

IAS 40 Investment Property

Investment property is a property (land or building) held for capital appreciation and/or earning rentals. Under IAS 40, a company must choose either the cost model or the fair value model.

IFRS 15 Revenue from Contracts with Customers

IFRS 15 requires an entity to (a) identifying the contract, (b) identify the performance obligation, (c) measure the transaction price, (d) allocate it to the performance obligations, and (e) recognize revenue when/as those obligations are met.

Sale and Leaseback

A sale and leaseback is a transaction in which one party (seller/lessee) sells and simultaneously leases-back an asset from another party (buyer/lessor). If it qualifies as a sale under IFRS 15, it recognized as a lease otherwise it is treated as a financial liability/asset.

Applying IFRS 16

IFRS 16 requires all lessees to bring their leases (with some exceptions) on balance sheet. It leaves the lessor accounting predominantly unchanged. Lessees can use either the full retrospective or modified retrospective approaches when initially applying the standard.

Lease Components

When a lease contract contain one or more lease and non-lease components, the lessee and the lessor allocates the consideration to the components based on their stand-alone selling prices.

Short-term Leases

In the context of lease accounting under IFRS 16 and ASC 842, short-term leases are leases not containing any purchase option which have a lease term of 12 months or less at the commencement date.

Gross and Net Investment in Lease

Lessors recognize a lease receivable on their finance leases at an amount equal to the net investment in the lease. Net investment in the lease equals gross investment in the lease minus unearned finance income.

Lease Payments

Lease payments represent the consideration for the underlying asset in a lease. It includes fixed payments, variable payments linked with an index or rate and payments/penalties contingent upon exercise of extension/termination options.

Lease Modifications

A lease modification is a change in scope and/or consideration of a lease which was not part of the initial terms and conditions of the lease agreement. They are accounted for either as separate leases or by adjusting lease liability and right of use asset.

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