ANALYSIS OF THE ANNUAL REPORT

AND COMPLIANCE OF IFRS IN

SQUARE PHARMACEUTICALS
LIMITED
Rubaiya Zaman Nishi Md Omar Faruk Elhamul Islam Md Rabby Sikdar
26-014 26-051 26-114 26-144

Mushfiq Ahmad Sami Sakib Alam Ety Akter Jannatul Ferdose Jarin
26-132 26-126 26-020 26-198

GROUP PROFILE
INSIGHTS INTO
IFRS & IAS
 IAS 16;
Property, Plant & Equipment
Calculating Carrying Value

❑ Cost Method.
❑ Fair Value Method.

IAS 16;
Property, Plant & Equipment
 IAS 16;
Property, Plant & Equipment

❑ Capitalization of Costs

❑ Depreciation of PPEs
 IAS 23;
Borrowing Costs
 IAS 23;
Borrowing Costs

01 Qualifying Assets

02 Capitalization Period

03 Amount to Capitalize
 IAS 38;
Intangible Assets
 IAS 38;
Intangible Assets

❑Identifiable
❑Lack of Physical Substance
❑Non-monetary Assets
 IFRS 3;
Business Combinations
 IFRS 3;
Business Combinations

Core Principle: An acquirer measures the cost of the acquisition at the fair value of the
consideration paid; allocates that cost to the acquired identifiable assets and liabilities on the basis
of their fair values; allocates the rest of the cost to goodwill; and recognizes any excess of
acquired assets and liabilities over the consideration paid in profit or loss immediately. The
acquirer discloses information that enables users to evaluate the nature and financial effects of the
acquisition.
No Goodwill is mentioned in the 2020-21 Annual
Report of Square Pharmaceuticals Limited.
 IAS 36;
Impairment of Assets
 IAS 36;
Impairment of Assets

Core Principle: An asset must not be carried in the financial statements at more
than the highest amount to be recovered through its use or sale. If the carrying
amount exceeds the recoverable amount, the asset is described as impaired.
No indication of impairment of assets in the 2020-21
Annual Report of Square Pharmaceuticals Limited.
 IAS 33;
Earnings Per Share
 IAS 33
Earnings Per Share
TO DO WHAT SQUARE DOES
❑ Square Pharmaceuticals calculated
An entity must present Basic Basic EPS in compliance with IAS 33.
EPS and Diluted EPS.
❑ The Basic EPS is 17.99
Diluted EPS was not required for Square Pharmaceuticals as there
was no potential dilutive securities at the reporting date.
 IFRS 9;
Financial Instruments
 IFRS 9
Financial Instruments

❑ Specifies how an entity should classify and measure financial assets, financial liabili
ties, and some contracts to buy or sell non-financial items.

❑ Amortized Cost
❑ Fair Value

Square Pharmaceuticals follows IFRS 9.

 IAS 28;
Investment in Associates and
Joint Ventures
 IAS 28
Investment in Associates and Joint Ventures
TO DO WHAT SQUARE DOES

An investor must account for Square Pharmaceuticals accounts for

its investment in associates its investment in associates using the
using the equity method. equity method.
 IFRS 10;
Consolidated Financial
Statements
 IFRS 10
Consolidated Financial Statements
01 Parent and Subsidiary
➢ Power Over The Subsidiary.
02 Principle of Control ➢ Influence On The Subsidiary’s Performance
Overview

Procedure For Consolidated ➢ Ability To Use The Power

03 Financial Statements

04 Accounting Requirements

05 Investment Entity
 Square Pharmaceuticals Limited
Subsidiaries
Square Pharmaceuticals Kenya EPZ Ltd.
100%

99.50%
Square Lifesciences Ltd.
 IFRS 10;
Consolidated Financial Statements

Consolidation Procedure

❖ Combined Elements Of Accounting Equation.

❖ Elimination Of Investment Against Equity
❖ Elimination Of Intra-Group Transactions
THANK YOU