17.04.

2024

CHAPTER 1: CONCEPTUAL FRAMEWORK

What is a conceptual framework?
- A statement of generally accepted theoretical principles which form a frame of reference
for financial reporting
- These provide a basis for
+ Developing new IFRS standards
+ Understanding and interpretation of accounting standards

Advantages of a conceptual framework

- Accounting standards are developed on the same theoretical principle
- Development of accounting standards is less subject to political pressure
- Accounting standards use a consistent approach
- A principle based approach avoid the need for large volumes of rules

Disadvantages of a conceptual framework

- Financial statements have many users all with differing needs
+ A single framework cannot satisfy the needs of all users
+ There may be a need for a variety of IFRS standards, each produced for a different
purpose with different conceptual bases
- Having a conceptual framework may not make it any easier to prepare and implement
IFRS standards

IASB’s Conceptual Framework

It is issued in 2010 and revised in March 2018
Purpose
- Assist IASB to develop standards that are based on consistent concepts
- Assist preparers to develop consistent accounting policies when no standard applied to
particular transaction or event, or when a standard allows a choice of accounting policy
- Assist all parties to understand and interpret the standards
Content
- The objective of financial statements
- The qualitative characteristics of useful financial information
- Financial statements and the reporting entity
- The elements of financial statements
- Recognition and derecognition
- Measurement
- Presentation and disclosure
- Concepts of capital and capital maintenance
The objective, basis and underlying assumption
- Objective: to provide financial information that is useful to primary users (investors, lenders,
creditors) in making decision relating to the provision of resources to the entity
- Basis of preparation: Accrual basis
- Underlying assumption: Going concern. If not, Break-up basis

Qualitative characteristics of useful financial information

- Fundamental:
+ Relevance: predictive value and/or confirmatory value  Materiality (trọng yếu)
+ Faithful representation: complete, neutral, free from error  Prudence (thận trọng)
- Enhancing: Understandability, Timeliness, Comparability, Verifiability

The element of financial statements

5 elements:
ASSET A present economic resource controlled by an entity as a result of past events. An
economic resource is a right which has the potential to produce economic benefits
LIABILITY A present obligation of the entity to transfer an economic resources as a result of
past events
EQUITY The residual interest in the assets of an entity after deducting all its liabilities
INCOME Increases in economic benefits during the accounting period in form of inflows
EXPENSE Decreases in economic benefits during the accounting period in the form of
outflows

B paid D $10,000 to set up a car repair shop, on condition that priority treatment is given to cars from
the company’s fleet  Expense
Deals on Wheels Co provides a warranty with every car sold  provision for warranty  Liability

Recognition and measurement

Derecognition: the removal of all or part of a recognized asset/liability from an entity’s SOFP and
normally occurs when that item no longer meets the definition of an asset or liability
- For an asset: when control is lost
- For a liability: when there is no longer a present obligation
Measurement of the elements of financial statements
- Historical cost
- Current value
+ Fair value: exist value (có TS bán đi thu được bao nhiêu tiền, có Nợ trả bao nhiều thì hết
nợ)
+ Value in use: the present value of the future cash flows that an entity expects to derive
from the use of an asset and from its ultimate disposal (giá trị hiện tại của dòng tiền trong
lai)
 + Fulfillment value for liabilities: the present value of the cash that an entity expects to be
obliged to transfer as it ful (giá trị hiện tại của số tiền trả cho chủ nợ)
+ Current cost: giá phí hiện hành: chi phí của một tài sản tương tự ở thời điểm báo cáo = the
consideration that would be paid at the measurement date + the transaction costs that
would be incurred at that date  entry cost

CHAPTER 2: THE REGULATORY FRAMEWORK

The need for a regulatory framework
- A regulatory framework is required for 2 main reasons:
+ To act as a central source of reference of GAAP
+ To designate a system of enforcement to ensure consistency between companies
- Principles-based vs. Rules-based approach
+ IFRSs use a principles-based approach: these standards are written based on the definition
of the elements of FS, recognition and measurement principles as detailed in the IASB’s
Conceptual Framework  cover A WIDE RANGE OF SCENARIOS
+ Some other GAAP are rules-based  contain rules that apply to SPECIFIC SCENARIOS

The International Accounting Standards Board (IASB)

- To develop a single set accounting standards
- To promote the use and application of those standards
- To work actively with national accounting standard setters to bring about convergence

Setting of IFRS
19.04.2024

CHAPTER 3: TANGIBLE NON-CURRENT ASSET

IAS 16 PROPERTY, PLANT AND EQUIPMENT
Definition
PPE are tangible items that
Are held by an entity for use in the production or supply of goods or services, for rental to others, or
for administrative purposes
Are expected to be used during more than one period
Recognition
The cost of an item of PPE shall be recognized as an asset if, and only if
It is probable (>50%) that future economic benefits that
PPE cho thuê khác gì với investment cho thuê?
owner occupied property (TS tự sử dụng)
không đủ điều kiện thành asset  expenses off (SOPL)

Giá gốc: toàn bộ số tiền đưa PPE vào trạng thái sử dụng
Initial measurement at recognition
Initially recognized at cost
Cost includes
- Purchase price – including import duties and non-refundable purchase taxes LESS trade
discounts and rebates
- Directly attributable costs:
+ Cost of site preparation
+ Initial delivery and handling costs
+ Installations and assembly costs
+ Costs of testing
+ Professional fees
- Estimated cost of dismantling/removing the item (IAS 37)
E.g. Construction cost $1,000,000
PV of future dismantling cost $50,000
Initial cost of the oil rig $1,050,000

Dr PPE – cost $1,050,000

Cr Cash $1,000,000
Cr Provision for dismantling cost $50,000
- Finance costs (IAS 23)
Maintenance phát sinh sau khi máy sẵn sàng đưa vào sử dụng  không tính vào cost
Purchase cost = 82,000 – 8,200 = 73,800 (phần lớn trade discount tại thời điểm mua thì khách hàng
đã xác nhận có nhận hay không rồi  trừ vào list price)
 Initial cost = $91,750


! ABNORMAL WASTE/OH  EXPENSE

Subsequent expenditure: Capitalise as a NCA if the IAS 16 recognition criteria are met
(Chi phí phát sinh sau thời điểm acquire NCA sẽ được vốn hoá nếu chi phí mang lại lợi ích kinh tế
dài hạn trong tương lai cho DN)

Bộ phận làm tăng công suất của tài sản  mang lại future economic benefit  capitalised
Dr PPE-cost 18,000
Cr Cash 18,000

Nếu là maintenance exp  Dr Expense/ Cr Cash

Measurement after recognition: Policy shall be applied to AN ENTIRE class of PPE

Revaluation model
Fair value: exist value (có TS bán đi thu được bao nhiêu thì đó là fair value, CHƯA trừ selling
cost)
E.g.
+ Land and buildings  the valuation is usually carried out by a professionally qualified valuer
+ Plant & equipment  market value
+ Specialized assets  depreciated replacement cost if the market value is not available
Principles: thời gian đánh giá lại đảm bảo CA không khác nhiều so với Fair value  periodically
1st revaluation gain  OCI/RS
2nd revaluation loss  subtract RS balance, remaining loss  PL  kết chuyển RE

1st revaluation loss  PL (Expense)

2nd revaluation gain  recover the previous loss (Cr PL), remaining gain  OCI/RS

1 Jul X3: Dr PL 20,000

Cr Land 20,000
30 Jun X6: Dr Land 70,000
Cr PL 20,000
Cr OCI/RS 50,000

RS  lại chưa thực hiện  thực hiện, chuyển thành kết quả kinh doanh trong kì
A revaluation surplus
- Can be realized when the asset is sold (cứ để đấy đến khi nào bán nó thì chuyển RS  RE)
- Depreciation charge will increase, this excess depreciation can be transferred to RE from the
RS (PPE – realized dần trong quá trình sử dụng, TS được khấu hao thì 1 phần RS được
realized  làm dep charge tăng lên, transferred to RE)

 Gain on revaluation (OCI – PL) (trong 1 năm)

 Revaluation surplus (FP) (có thể gain nhiều năm)
31 Dec 14:
Cost = 12,000
Acc dep = 2,400
CA = 9,600
FV = 14,000
 Gain on reval = 4,400

Dr Asset 2,000
Dr Acc.dep 2,400
Cr RS 4,400

Revaluation surplus
4,400
550
3850

31 Dec 15:
Cost = 14,000
Acc Dep = 1,750
CA = 12,250
FV = 8,000
 Loss on revaluation = 4,250
Dr Acc Dep 1,750
Dr RS/OCI 4,250
Cr PPE 6,000

Chuyển excess dep  RE

Dr RS 550
Cr RE 550

Dr PL 400
Dr RS 3850
Dr Acc Dep 1750
Cr PPE – cost 6000

SOFP PLOCI
Asset 8,000 Dep 1,750
RS 550 Loss on depreciation (PL) 400

Depreciation
- Thời điểm tính khấu hao: ready for intend use (không phải lúc bắt đầu sử dụng)
- Trong thời gian kinh doanh vì lí do bất khả kháng không sử dụng máy móc  vẫn phải tính
khấu hao

Component depreciation:
- 1 tài sản lớn có nhiều components  tách thành nhiều tài sản nhỏ để tính khấu hao
- Chi phí đại tu (inspection and overhaul)  được tách thành 1 bộ phận riêng
 Dep
Fuselage = $20,000 / 20 = $1,000
Undercarriage = $5,000 x 150/500 = $1,500
Engines = $8,000 x 400/1,600 = $2,000
Overhaul = 1,200 / 3 = 400

Derecognition: disposal of PPE

Dr Cash
Cr Disposal

Dr Disposal
Dr Acc Dep
(Dr Loss)
Cr PPE-cost
(Cr Gain)

Investment property
Property (land or buildings – or part of a building – or both) earn rentals or for capital appreciation
(chờ tăng giá để bán) or both, rather than for
- Use in the production or supply of goods or services or for administrative purposes  PPE
- Sale in the ordinary course of business  Goods
Owner-occupied property is property held by the owner (or by the lessee as a right-of-use asset) for
use in the production or supply of goods or services or for administrative purposes)
Recognition
- It is probable that the future economic benefits associated with the investment property will
flow to the entity
- The cost of the investment property can be measured reliably
Measurement at recognition
- Initially recognized at cost
- Cost comprises = Purchase price + Any direct attributable expenditure
- For self-constructed investment properties, cost is the cost at the date when the
consstruction/development is complete
IAS 16 - PPE IAS 40 – Investment property
cost model/revaluation model cost model/fair value model
periodically revaluation annual revaluation
1st revaluation gain  OCI/RS Gain/Loss  PL
depreciation is needed no depreciation
(1) IP
(2) PPE
(3) Xây dựng dở trung tâm, hoàn thiện 2/3. Xong thì cho Speedex Co thuê
Propex Co  IP
Conso  PPE

Transfers to or from IP should only be made when there is a change in use of the property
(thay đổi mục đích sử dụng phải có BẰNG CHỨNG)
 - Cost model for IP: transfer between IP, PPE and inventories DO NOT change the
CARRYING AMOUNT
- FV model for IB
IP carried at FV to PPE or inventory
+ Cost for subsequent accounting is FV at date of change in use
+ IAS 16 and IAS 2 will be applied after date of change of use
PPE or inventory to IP carried at FV
+ Apply IAS 16/IAS 2 up to date of change of use
+ At the date of change, revalue the asset to FV in accordance with IAS 16/IAS 2
+ IAS 40 will be applied after date of change of use

1 Jan 15: CA = 20,000, Remaining: 20 years  Dep: 1,000 

1 July – revalue: 21,000  CA = 19,500, Dep: 500
 Gain 1,000
Dr Property 1,000
Dr Acc Dep 500
Cr RS/OCI 1,500
 Gain on PPE: 1,500
1 July 15: cho thuê  IP  CA = 21,000
31 Dec 15: revalue 21,600
Dr Asset 600
Cr Profit 600
 Gain on IP: 600

1 Jul 15: PPE  IP

Property – CA 19.5 mil
FV 21
Gain on revaluation 1.5
 Ghi nhận theo chuẩn mực cũ: IAS 16 (unrealized gain)
Dr PPE – CA 1.5
Cr OCI/RS 1.5
Chuyển sang thành IP
Dr IP 21
Cr PPE 21

31 Dec 15: Dr IP 0.6

Cr PL 0.6

IP:
SOPL/OCI:
Gain on reval IP (PL): 0.6
Revaluation surplus - PPE (OCI): 1.5

Example: Change in use 30 June – đã có bằng chứng về chuyển đổi mục đích sử dụng và đã chuyển
ra

26.04.2024
Borrowing Costs
Definition
- Borrowing costs: interest and other costs incurred by an entity in connection with the
borrowing of funds
- Qualifying asset (tài sản đủ điều kiện vốn hoá): an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale (tài sản đang trong quá trình đầu tư xây
dựng và tài sản đang trong quá trình sản xuất cần có một thời gian đủ dài để đưa vào sử dụng
theo mục đích định trước/để bán)
E.g: Inventories, Manufacturing plants, Power generation facilities, Investment properties
Accounting treatment: borrowing costs that directly relate to the acquisition, construction or
production of a qualifying asset must be capitalised as PART of the COST of that asset (chi phí đi
vay liên quan trực tiếp đến việc đầu tư xây dựng hoặc sản xuất tài sản dở dang được tính vào giá
trị tài sản đó. Các chi phí đi vay được vốn hoá khi DN gần như thu được lợi ích kinh tế trong tương
lai do sử dụng tài sản đó)
Xác định chi phí đi vay được vốn hoá
- Specific loan: loan taken specifically to fund asset  Capitalise actual borrowing costs
incurred less investment income on temporary investment of funds
(Chi phí đi vay đủ điều kiện vốn hoá = Chi phí thực tế phát sinh từ các khoản vay – các khoản thu
nhập phát sinh từ hoạt động đồng tư tạm thời của các khoản vay này)
- General loan: loan taken for general purposes but used in part for asset  The capitalisation
rate is the weighted average of the borrowing costs applicable to the entity’s borrowings that
are outstanding during the period, excluding borrowings made specifically to obtain a
qualifying asset
Tỉ lệ vốn hoá = Tổng chi phí đi vay / Tổng vốn vay)

Tỷ suất vốn hoá (Capitalization Rate) = Bình quân gia quyền của chi phí đi vay (Weighted
Average of the Borrowing Cost)
Chi phí đi vay được vốn hoá (Borrowing Costs) = Tỷ suất vốn hoá (Capitalisation Rate) x Chi phí
phát sinh (Expenditure incurred)
Note: the amount capitalised should NOT exceed total borrowing costs incurred in the period
Example 1:

 5/15*4% + 10/15*6% = 5.33%

A: 0.2 mil
B: 0.6 mil
 Capitalised rate = Tổng lãi / Tổng vốn vay = 0.8 / 15 x 100% = 5.33%

1 May X1: Specific loan: 1,000,000 – annual interest rate of 5%

Construction started on 1 June X1
June&July: $800,000 – 2% p.a.
31 Dec X1: construction is still in progress
 Capitalized amount = 1,000,000 x 5% x 7/12 = $29,166.67
Investment = 800,000 x 2% x 2/12 = $2,666.67
 Capitalized borrowing cost = 26,500

Khoản vay được rút vào 1/1/X6 nhưng bắt đầu xây dựng 1/2/X6  Tiền lãi vay được vốn hoá
trong 10 tháng  Chi phí vay thực thế = $7.5m x 10% x 10/12 = $625,000
Khoản thu nhập tạm thời và không được vốn hoá bắt đầu tính từ 1/2/X6 – 1/5/X6 (3 tháng)
 Thu nhập đầu tư tạm thời = $2m x 4.5% x 3/12 = $22,500
(Số tiền lãi ở tháng 1 tách riêng là thu nhập tài chính)
 Chi phí vay được vốn hoá = $602,500

 Bình quân gia quyền chi phí vay = (15/39*9%) + (24/39*11%) = 10.3%
 Chi phí vay được vốn hoá = $6m x 10.3% x 9/12 + $2 x 10.3% x 5/12 = $549,333.3
 CHAPTER 4: INTANGIBLE ASSETS
DEFINITION
E.g. Patents, Copyrights, Brands, Goodwill

Identifiable
- An intangible asset must be identifiable in order to distinguish it from goodwill
- An asset being identifiable means that an asset should either:
+ is separable (e.g. capable of being sold, transferred, licensed, rented or exchanged
separately or either individually or together with a related contract, identifiable asset
or liability)
+ arises from contractual or other legal rights
Intangible asset: non-monetary asset
- Monetary assets: money held and assets to be received in fixed or determinable amounts
of money
- Cash, A/R are monetary assets, not intangible assets (prepayment không phải monetary
assets – tương lai nhận được dịch vụ, không phải tiền)
- PPE are non-monetary assets, but they have physical substance
Control by the entity (quyền kiểm soát)
- An entity controls an asset if the entity has the power to enjoy the future economic
benefits from the asset, and restricts the access of others to those benefits
- Example:
+ Staff knowledge and skill  not
 + Technology purchased to save production costs  intangible asset
+ A customer list created internally  not intangible asset
+ A customer list bought from third parties  intangible asset
+ A brand name developed by a company  not
+
Thương hiệu mua từ công ty khác  intangible asset
RECOGNITION: requires an entity to demonstrate that the item meets
- The definition of an intangible asset, and
- The recognition criteria (IAS 38)
+ It is probable that future economic benefit from the asset will flow to the entity
+ The cost of the asset can be reliably measured
- Application of recognition criteria

INTERNALLY GENERATED INTANGIBLE ASSETS

- Research cost: costs incurred to gain new scientific or technical knowledge and
understanding
 Accounting treatment: No certainty of future economic benefit
Recognize as an expense in P/L as incurred
- Development costs: costs incurred in application of research findings to a plan/design for
the production of new or substantially improved materials, products or processes prior to
commercial production or use
 Accounting treatment: Expenditure incurred now will lead to future revenues
Capitalise expenditure as an intangible non-current asset if all IAS
38 criteria are met
- Capitalisation criteria: All six criteria must be met
+ Probable fu
+ P robable future economic benefits
+ I ntention to compete and use/sell the asset
+ R esources adequate and available to complete and use/sell asset
 + A bility to use/sell asset
+ T echnical feasibility of completing asset for use/sale
+ E xpenditure can be reliably measured
- Should any of the criteria NOT be met, the expenditure must be treated as an EXPENSE
- Expenditure specifically excluded from recognition
+ Expenditure on internally generated brands, mastheads, publishing titles, customer
lists and similar items should be treated as an expense because they cannot be
distinguished from the cost of developing the business as a whole.
+ Start-up, training, advertising, promotional, relocation and reorganisation costs are all
recognised as expenses as they relate to ongoing business costs.

Chi phí phát sinh từ 1 July X5  intangible asset

Expense = $2m + $1m + $1m = $4m
Capitalised cost = $1.5m

Dr Expense 4m
Dr IA 1.5m
Cr Cash 5.5m

GOODWILL
Book Value = $3m at the acquisition date
FV = $12m (exclude the project)

Stuffer paid $18m – 100% of the company

R&D - $5m
Year end - $8m

Consideration 18
FV of Net asset acquired
Other asset 12
FV of intangible asset 5
 Goodwill 1

03.05.2024
MEASUREMENT AT RECOGNITION
Initial measurement:

Example:

400,000  trả sau 1 năm  quy về hiện tại

 600,000 + 400,000/1.1 + 87,000 + 1,000 = 1,051,636
 change in accounting estimate  prospectively (phi hồi tố): điều chỉnh
kì hiện tại và các kì trong tương lai
 change in accounting policy  restropectively (hồi tố)
- Capitalisation criteria: All six criteria must be met
+ P robable future economic benefits
+ I ntention to compete and use/sell the asset
+ R esources adequate and available to complete and use/sell asset
+ A bility to use/sell asset
+ T echnical feasibility of completing asset for use/sale
+ E xpenditure can be reliably measured
$15m  acquire tài sản dùng cho nghiên cứu, phát triển: IA (không
capitalised vào development cost)
$6  expense
$8m  capitalised
$1.5m  expense

1 Oct X7: $20m  Depreciation exp = $4m

31 Dec X7: 1.4m  research cost
31 Dec X7 – 1 Apr X8: 3 months: 2.4m  development cost
1 Apr X8 – 30 Sep X8: 6 months: 4.8m  capitalised IA
 P/L: 7.8m
Research and development costs: 3.8m
IAS 13: Fair value
Level 1 Quoted price in active market
Level 2 Observable input
Level 3 Unobservable input (không có giá IA tương tự/sp giống hệt  ước
tính thu được dòng tiền trong TL rồi chiết khấu về HT: discounted
CF)

1 Feb X5: research - $40,000 per month

a. IAS 38: Internally generated brand  IA (trừ TH đi mua thương hiệu từ
bên ngoài mới coi là IA của brand)
b. (học sau)

c. (không kiểm soát được lợi ích mang lại)  Expense

d. Nội bộ định giá  không được revaluation (no ACTIVE MARKET)
 CHAPTER 5: IMPAIRMENT OF ASSETS
E.g. Habeco purchased a machine for $100,000 – useful life 20 years
End of year 5: CA = $75,000
- Bán  Fair value less cost of disposal = 60,000  giảm giá trị TS
- Tiếp tục sử dụng  Value in use = 65,000
 Recoverable amount = 65,000 (HIGHER)  nếu báo cáo $75,000 – overstate
 TS bị suy giảm giá trị $10,000  ghi nhận

Hàng tồn kho đã được báo cáo theo nguyên tắc thận trọng (LOWER: NRV &
HC)

 Trong quá trình nhân  Mua về sử dụng, có phiên bản mới  giá
 viên thao tác, làm sai thị trường bản cũ giảm
 máy hỏng  sửa lại  Thay đổi trong môi trường kinh doanh
rồi nhưng không đạt (pháp lý: thắt chặt kiểm soát nồng độ cồn
hiệu quả  doanh thu rượu bia giảm, kinh tế: Covid
 Tiết kiệm 10% chi phí,  Lãi tăng  dòng tiền thu được vẫn vậy,
thực tế chỉ tiết kiệm quy CF về hiện tại giá trị thấp đi (VIU)
8%  dấu hiệu TS có  Giá trị sổ sách > Giá trị vốn hoá trên thị
thể suy giảm giá trị trường

- TS vô hình có thời gian sử dụng hữu ích không xác định

- TS vô hình đang trong quá trình xây dựng
- Goodwill
 -Incremental cost: nếu thực hiện dự án mới phát sinh, không thực hiện thì
không phát sinh
- Sunk cost: dù thực hiện hay không thì cũng trả rồi
Example:

FVLCD = 100 – 5 – 4 – 1.5 = 89.5

Chi phí định giá  sunk cost, NOT incremental cost

Dự báo dòng tiền trong tương lai chỉ đáng tin cậy trong vòng 5 năm đầu
Nhu cầu: 5% p.a.
Đối thủ làm bão hoà thị trường  CF giảm sau 5 năm
Net revenue = $100m last year
Discount rate = 15.5%
 VIU?
Yr CF DF (15.5%) PV
1 100*1.05 1/1.155
2
2 100*1.05 1/1.1552
3 100*1.053 1/1.1553
4 100*1.054 1/1.1554
5 100*1.055 1/1.1555
VIU 379.08 mil
07.05.2024

a. PL: 20
b. Revalue 150  Cr RS 50  Nếu bán đi Dr RS: 25
c. Revalue 150  Cr RS 50  Nếu bán đi Dr RS 50, Loss 5
Impairment loss = 55
OCI: 50
PL: 5

30/9/X9: Cost $30 mil

1/10/X8 – 1/4/X9: 6 months
Amortisation exp = 30/10 X 6/12 = $1.5 mil
CA = 30 – 9 – 1.5 = 19.5 mil

1/4/X9 – 30/9/X9: 6 months

VIU = $12 mil
FV = $15 mil
 Recoverable amount = $3 mil
New amortisation exp = 15/3 x 6/12 = $2.5 mil
CA = 15 – 2.5 = $12.5 mil

- Có phải 1 nhóm TS xác định được không?

Có tạo ra dòng tiền độc lập so với các nhóm TS khác không?
- CGU được xác định nhất quán từ kì này sang kì khác cho cùng loại tài sản
 Mini Mart là 1 CGU

Hợp đồng dịch vụ với chính quyền địa phương  dù lỗ nhưng không thể dừng
tuyến đường đó (1 là 5 tuyến đường cùng hoạt động, 2 là ngừng cả 5 tuyến đường)
 Dòng tiền không độc lập  Coi cả 5 tuyến đường là CGU

Chỉ có CGU hưởng lợi từ việc kinh doanh mới phân bổ Goodwill  test impairment
1 CGU bao gồm: PPE, Intangible assets, Current assets  Phân bổ impairment loss
về từng loại TS
+ Phân bổ cho TS cụ thể có thể xác định được
+ Không phân bổ cho TS ngắn hạn: inventories, financial assets, Investment
property (IP) at FV
+ Phân bổ cho goodwill
+ Các TS khác theo pro-rata
 pre-impaired impairment post-impaired
Building 700 700/(160+700) x 130 594
= -106
Damaged equip 40 -40 0
Other P&E 160 = 160/860 x 130 = -24 136
Goodwill 90 -90 0
CA 20 0 20
1,010 260 750
- Damaged equip
- CA  không impaired
- GW  impaired toàn bộ
- Building, Other P&E  không có thông tin, phân bổ theo tỉ lệ
 Pre Impairment Post
Crashed lorry 500 -500 0
3 other lorries 1,500 0 1,500
Licence 500 0 500
GW 300 -80 220
2,800 580 2,220

1/1/X1: $1,000,000 – 20 years  Dep exp = 50,000

31/12/X5: CA = 750,000
FV = 1,125,000 – 15 years  New dep exp = 75,000
 Excess dep = 25,000
Dr NCA 125,000
Dr Acc.Dep 250,000
Cr RS/OCI 375,000
31/12/X7: RS = 325,000 RE = 50,000
Dr RS 50,000
Cr RE 50,000
CA = 975,000
FV – Recoverable amount = 600,000
Total impairment = 375,000 (Trừ RS – Loss PL)
 Loss = 50,000
Dr RS/OCI: 325,000
Dr PL: 50,000
Dr PPE-Acc.Dep 150,000
Cr PPE-Cost 525,000

SFP: NCA – PPE: 600

SPL: Dep exp: 75
Imp (PL): 50
Imp (OCI): 325
GW 2,400 -2,400 0
Building 6,000 6,000/10,000 x 3,100 4,140
= -1,860
Destroyed P&E 1,200 -1,200 0
P&E 4,000 4,000/10,000 x 3,100 2,760
= -1,240
Other intangibles 2,000 -500 1,500
Receivables and cash 1,400 0 1,400
17,000 7,200 9,800
PPE 1,300 180 1,120
Develop exp 200 (70) 130
CA 250 0 250
GW 200 (200) 0
1,950 450 1,500
31/12/X1: FV = 1.8  Bán 2  GW 0.2
31/12/X2: RA = 1.5
TS không được impairment ít hơn FVLCOD
! Nếu tính impairment theo pro-rata: PPE = 1,300/1,500 x 250 = 217 thì sẽ ra PPE
thấp hơn FVLCOD  KHÔNG HỢP LÍ
Yr 1: 1,000 – 40 years  Dep exp = 25
End of Yr 3: CA = 925
RA = 740 – 37 years  Dep 20
 Impairment loss = 185 Dr PL 185
Beg of Yr 6: CA = 700
RA = 900
Cost model Revaluation model
 (RA = FV)
Dr Equip – CA 175 Dr Equip – CA 200
Cr Reversal of impairment loss (PL) Cr Reversal of impairment loss (PL) 175
Cr OCI/RS 25
CV if no impairment
= 1000 – (5x 1000/40) = 875
 Reverse 700 lên 875
Reverse RA với CV if no impairment
Nếu reverse lại 185 thì phải reverse cả dep exp trong 2 năm nữa  TỐT NHẤT LÀ
DÙNG CV IF NO IMPAIRMENT
 Dr RS/OCI 15,000
Cr PL 185,000

11.05.2024
 CHAPTER 6: REVENUE
IFRS 15 - VS14,15
BCKQKD  Lợi nhuận  Doanh thu
IASB: uỷ ban soạn thảo IFRS – principle-based
FASB: GAAP – rule-based
 Joint project: IFRS 15 replaces both IAS 18 Revenue and IAS 11 Construction
contracts.

Revenue: transfer of control (chuẩn mực cũ: ghi nhận doanh thu khi chuyển rủi ro và lợi
ích)
Control: direct the use, obtain substantial benefits
Scope: except for
+ Lease contract (IFRS 16)
+ Insurance contracts (IFRS 4)
+ Financial instruments and other contractual rights/obligations (IFRS 9, 10, 11, IAS
27, 28)
+ Non-monetary exchanges between entities in the same line of business (chuyển
giao hàng hoá giữa các phòng ban)

Recognition and measurement: 5-STEP MODEL

- Identify the contract with the customer
Contract: agreement that create enforceable rights and obligations

Đặt cọc non-refundable 50,000

95% trả sau
thế chấp, dù phá sản khoản thế chấp cũng không đủ để cover lại khoản nợ

little experience in the restaurant industry

high level of competition
 khả năng phá sản cao
TH KH phá sản: chỉ nhận lại được khoản non-refundable deposit + khoản thế chấp 
không đủ để cover khoản nợ  không thoả mãn điều kiện (e)  không phải hợp đồng

- Identify the separate performance obligations

FPT cung cấp internet đi kèm khuyến mại modem  cung cấp 2 nghĩa vụ thực hiện: dịch
vụ + hàng hoá, tách biệt nhau
Nhà thầu xây nhà cho chủ đầu tư
Vinhomes – công ty con của Vingroup, không phải là đơn vị chuyên biệt xây dựng  tìm
đất, tìm công ty xây dựng (nhà thầu để xây nhà cho Vinhomes)  nhà thầu áp dụng
chuẩn mực. Nhà thầu phải cung cấp NVL xây thô, đường ống nước, điều hoà, nội thất 
các hệ thống phải chung trong 1 tổng thể thì mới bàn giao lại cho khách để bán 
KHÔNG CHIA NHỎ CÁC NGHĨA VỤ RIÊNG BIỆT, COI CẢ TOÀ NHÀ LÀ 1
NGHĨA VỤ RIÊNG.
- Determine the transaction price (F3: fixed – F7: variable)
Variable:
- Thời gian hoàn thành  Expected value (nhiều kết quả có thể xảy ra, có thể phân
bổ xác suất)
- Rating  Most likely amount (2 kết quả xảy ra: không/150,000)

- Allocation the transaction price to the performance obligations

Example: Handler & Chai Company
Standalone price % allocate Revenue allocate

Equipment 2,000,000 96.6% 1,932,367

Installment 20,000 0.97% 19,324

Training 50,000 2.43% 48,309

Total 2,070,000 2,000,000

1/9:
- Bàn giao equipment cho khách  transfer control rồi  ghi nhận toàn bộ
- Installment  ghi nhận toàn bộ
- Training: 1/11 – 31/10  Year end 31/12: 48,309 x 2/12 = 8,052

- Recognize revenue when a performance obligation is satisfied (ghi nhận 1 lần hay
phải phân bổ) (F3: cung cấp dịch vụ trong 3 năm  phân bổ)
Example:
Normal: Dr Receivables/ Cr Revenue
HĐ xây dựng:
+ Doanh thu ghi nhận (làm)
 + Hoá đơn phát hành (nói): xác định ngay từ khi kí hợp đồng (cuối năm X7 phát
hành invoice 2,800 bất kể làm được nhiều hay ít, cuối năm X8 hoá đơn luỹ kế:
3,900)
31/12/X7
Dr Receivable 2,800
Cr Revenue 2,600
Cr Contract lia 200
31/12/X8
Dr Receivable 1,100
Dr Contract lia 200
Dr Contract asset 975
Cr Revenue 2,275

Happy: Lãi (phân bổ)  Tính xuôi: Lãi trong kỳ = Contract revenue – Contract
expense
Grumpy: Lỗ: 75  chuyển ngay xuống SOCI  Tính ngược: sau đó mới tính
contract expense

Contract asset/liability
 KHÔNG LIÊN QUAN TỔNG HỢP ĐỒNG LỖ HAY LÃI
 CHỈ DÙNG ĐỂ SO SÁNH REVENUE TO DATE & AMOUNTS INVOICED
TO DATE

Đã phát hành hoá đơn  thu được tiền 116  không ảnh hưởng đến contract asset,
chỉ thay đổi receivables
Dr Receivable 116
Dr Contract asset 4
Cr Revenue 120
 Trả tiền:
Dr Cash 116
Cr Receivable 116

Provision for lost:

Dr COGS 150
Dr COGS 45
Cr Provision 45 – liability
Example: Outcome not realiable
Bút toán ghi nhận doanh thu, invoice
Dr Receivable 1,130
Cr Revenue 850
Cr Contract lia 280
Chính phủ đã trả 675
Dr Cash 675
 Cr Receivable 675
 Số Receivable trong SFP là số Net: 455

Common types of transaction

IFRS 15 provides guidance on dealing with the following transactions:
Warranties. A warranty which is purchased separately from the product to which it relates
is regarded as a separate performance obligation.
Example:
1. Sells phone: 20m VNĐ + 1 year warranty (embedded)  mua điện thoại buộc đi kèm bảo
hành  không tách rời  không ghi nhận doanh thu cho bảo hành
Rev: 20m VNĐ
Warranty: 0 VNĐ
Provision for warranty (IAS 37)
2. Từ năm 2 trở đi, gói bảo hành mở rộng warrant service: 1m VNĐ/year  separate, KH
thích mua cũng được, không mua cũng được  ghi nhận doanh thu cho bảo hành (Rev: 1m
VNĐ)

Principal versus agent. A principal controls the goods or services prior to the transfer of
control and recognised revenue when control has been transferred. An agent will recognise
as revenue any fee or commission to which it is entitled for the satisfaction of its
performance obligation as agent.
Principal: ghi nhận doanh thu Gross 100%
Dr Cash 95
Dr Selling expense 5
Cr Revenue 100
Agent: nhận hộ, hưởng hoa hồng 5%  doanh thu 5%
Dr Cash 100
Cr Revenue 5
Cr Payables 95
Consignment arrangements. An entity delivers products to a third party such as a dealer or
distributor, for sale to end customers. No revenue is recognised until control of the
inventory has been transferred.
+ Hoà Phát chuyển 5000 tấn thép cho Dealer, Dealer bán được 1000 tấn cho Customer
+ Hoà Phát chỉ ghi nhận doanh thu khi Dealer báo cáo đã chuyển giao 1000 tấn thép
cho Customer

+ Vinaphone giao 100 thẻ cào cho Dealer, Dealer đã bán 90 thẻ cho Students, đã cào và
nạp tiền  Vinaphone KHÔNG ĐƯỢC GHI NHẬN DOANH THU (Vinaphone
kinh doanh dịch vụ nghe gọi, CHỈ GHI NHẬN KHI STUDENT GỌI HẾT TIỀN
THẺ CÀO)

Bill and hold arrangements. Goods are sold but remain in the possession of the seller for a
specified period of time. No revenue is recognised until control of the inventory has been
transferred.
+ Hàng còn trong kho của seller nhưng thuộc về buyer  ghi nhận doanh thu
+ Để riêng và không được phép bán cho bên khác  cung cấp 2 nghĩa vụ thực hiện:
bán hàng + dịch vụ lưu kho
For a customer to have obtained control of a product in a bill and hold arrangement the
following criteria must be met:
(a) The reason for the bill and hold must be substantive.
(b) The product must be separately identified as belonging to the customer.
(c) The product must be ready for physical transfer to the customer.
(d) The entity cannot have the ability to use the product or transfer it to another customer
Repurchase agreements
Under a repurchase agreement, an entity sells an asset and promises, or has the option, to
repurchase it. Repurchase agreements generally come in three forms:
• An entity has an obligation to repurchase (bắt buộc) the asset (a forward contract).

+ Doanh thu  transfer control

+ Mới chỉ chuyển TS, sau 31/12 TS vẫn thuộc về mình  chưa chuyển transfer control
 KHÔNG ĐƯỢC GHI NHẬN DOANH THU
+ Buy back price > Original selling price (hợp đồng mua bán nhưng bản chất đi vay, có
thế chấp tài sản)
Seller: 1.1 Dr Cash 10
Cr Loan from customer 10
31.12 Dr Loan from customer 10
Dr Finance exp 2
Cr Cash 12
+ Buy back price < Original selling price (bản chất cho thuê tài sản)
Seller 1.1 Dr Cash 10
Cr Deposit from customer 10
31.12 Dr Deposit from customer 10
Cr Cash 8
Cr Rental income 2
• An entity has the right to repurchase (quyền mua lại hay không thuộc về seller) the
asset (a call option)  NOT TRANSFER CONTROL  KHÔNG GHI NHẬN
DOANH THU
• An entity must repurchase the asset if requested to do so by the customer (a put
option) (quyền bán lại hay không thuộc về buyer)  mất kiểm kiểm soát TS từ
khi bán  GHI NHẬN DOANH THU
24.05.2024

i.
Convertible bond 3,000
Nominal rate 8%
Effective rate 10%
Annual CF = 3,000 x 8% = 240
CF Discount rate (10%) PV
Y1 240 0,91 218,4
Y2 240 0,83 199,2
Y3 3240 0,75 2430
Debt component = 218,4 + 199,2 + 2430 = 2847,6 ($000)
Equity component = 3000 – 2847,6 = 152,4 ($000)

ii. Dr Interest exp 2847,6 x 10%

Cr Debt component

Dr Debt component 240

Cr Cash
 CHAPTER 11: FINANCIAL INSTRUMENTS
Major accounting issues
• Definition of Financial instrument (IAS 32)
• Recognition and measurement of financial instruments (IFRS 9)
• Presentation of financial instruments (IAS 32, IFRS 9)
• Disclosure of financial instruments (IFRS 7)

DEFINITIONS
A financial instrument is
- A contract that gives rise to both financial asset of one entity and a financial liability or
equity instrument of another
- E.g: a loan agreement from a bank signed by a company, credit offered to customers,
shares of stock of investee
Financial asset
Cash
Equity instrument of another entity
Contractual right to receive a financial instrument
Contractual right to exchange financial instruments under potentially favorable conditions
Financial liabilities
Contractual obligation to deliver another financial asset
Contractual obligation to exchange financial instruments under potentially unfavorable
conditions
Equity
Contract that evidences a residual interest in the net assets (i.e. assets - liabilities) of an entity
 IAS 20: GOVERNMENT GRANTS
Definition
• Assistance by 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.
• Government grants exclude forms of government assistance which are not subject to
reliable measurement and transactions with government which cannot be distinguished
from normal trading activities.
• Government assistance: action by government designed to provide an economic benefit
specific to an entity or range of entities qualifying under certain criteria.

Recognition: Government grants are only recognised once there reasonable assurance that the
conditions of the grant will be complied with and the grant will be received

Accounting treatment: There are two types of government grants: grants relating to income and
grants relating to asset
• Grants relating to income (e.g: grants to assist with wages and salaries costs)
+ These are recognised in profit or loss either separately as part of 'other income' or
as a deduction from the related expense
+ E.g: a company received a grant of $ 5 mil for paying salary in year 1 (5 years).
Y1: Dr Bank 5 mil
Cr Deferred income 5 mil
Dr Deferred income 1 mil
Cr Salary exp/Other income (PL) 1 mil
• Grants relating to assets (e.g: grants to assist with the acquisition of NCA): presented in
the statement of financial position either (result in THE SAME NET EXPENSE):
+ As deferred income: this is then released over the useful life of the asset; or
+ By deducting the grant from the carrying amount of the asset: this means that
the CA of the asset and therefore the associated depreciation is lower.
+ E.g:

Method 1:
Y1 Dr Machine – cost 60
Cr Cash 60
Dr Cash 10
Cr Machine – cost 10
End Y1 Dr Depreciation exp 20
 Cr Acc.dep 20

Method 2:
Y1 Dr Machine – cost 60
Cr Cash 60
Dr Cash 10
Cr Deferred income 10
End Y1 Dr Dep exp 24
Cr Acc.dep 24
(đã hoàn thành 1 phần cam kết với government grant  có quyền nhận 1 số tiền nhất định)
Dr Deferred income 4
Cr Other income/Dep exp 4

Repayment of grants
• Where a government grant becomes repayable it is accounted for as a change in accounting
estimate under IAS 8.
• Repayment of grants relating to income are applied first against any unamortised deferred
income and then an expense in profit or loss.
• Repayments of grants relating to assets are recorded by:
+ Reducing the deferred income balance; or
+ Increasing the carrying amount of the asset. The cumulative additional depreciation
that would have been recognised to date had the grant not been received is
recognised in profit or loss immediately.

Example 1: A company receives an asset worth $5m with a useful life of 5 yrs from
government. At beginning of year 2, the company has to repay the NCA to government.
Y1 End of Y1 Y2
Dr NCA - cost 5 Dr Dep exp 1 Dr Deferred income 4
Cr Deferred income 5 Cr Acc.dep 1 Dr Acc.dep 1
Dr Deferred income 1 Cr NCA-cost 5
Cr Dep exp 1

Example 2: a company received a grant of $ 5 mil for paying salary in 5 years. At

beginning of year 2, the company has to repay 5 mil to the government.
Y1 End of Y1 Y2
Dr Cash 5 Cr Deferred income 1 Dr Deferred income 4
Cr Deferred income 5 Dr Other income/Salary exp 1 Dr Salary exp 1
Cr Cash 5
st
Example 3: On 1 January 20X0, ABC acquired a machine at a cost of $60m. The
economic useful life of the machine is estimated to be 10 years with a nil residual value.
ABC uses straight line depreciation. ABC received a grant of $10m from the government on
1st Jan 20X0 for the machine acquisition. At beginning of year 2, the company has to repay
10 mil to the government. Assuming that 1) the company recognized a deferred income; 2)
the company deduct gov grant from machine cost

Method 1 Method 2
1/1/X0 1/1/X0
Dr Machine – cost 60 Dr Machine – cost 60
Cr Cash 60 Cr Cash 60
Dr Cash 10 Dr Cash 10
Cr Deferred income 10 Cr Machine – cost 10

31/12/X0 31/12/X0
Dr Dep exp 6 Dr Dep exp 5
Cr Acc.dep 6 Cr Acc.dep 5
Dr Deferred income 1
Cr Dep exp 1

1/1/X1 1/1/X1 (nếu không được hỗ trợ  điều chỉnh

Dr Deferred income 9 lại CA của asset  tăng NCA)
Dr Dep exp 1 Dr Machine – cost 10
Cr Cash 10 Dr Dep exp 1
Cr Acc.dep 1
Cr Cash 10

28.05.2024

CHAPTER 12: LEASING

Major accounting points
- IFRS 16 (replacing IAS 17)
- Lessee accounting
 - Sale and leaseback
IAS 17
• Both lessor and lessee need to classify the lease as either finance or operating
• A finance lease (thuê tài chính) is a lease that transfers substantially all the risks and
rewards incidental to ownership of an asset. Legal title may or may not eventually be
transferred.
• An operating lease (thuê hoạt động) is a lease other than a finance lease.

E.g. Sign a contract to lease a car, useful life of the car is 10 years – annual payment
$25,000 in arrear (trả vào cuối năm). FV = $18,000  finance lease
- Lease for 1 year  operating lease
Leasor Leasee
Mua oto: Dr PPE/ Cr Cash 180,000 Dr Rent exp/Cr Cash 25,000
Cho thuê oto (không ghi nhận)
Dr Cash/Cr Rent income 25,000
Dr Dep exp/Cr Acc.dep 18,000
- Lease for 10 years  finance lease  leasee ghi nhận TS vì chịu rủi ro lquan đến
TS
+ Interest implicit in the contract (lãi suất tiềm ẩn trong hợp đồng) = 6,47% (IRR)
Leasor Leasee
Ngay khi mua: Dr PPE/Cr Lease liability 180,000
Dr Lease receivable/Cr Cash 180,000
Dr Lease receivable/Cr Interest income Dr Dep exp/Cr Acc.dep 18,000
180,000*6,47% Dr Interest exp/Cr Lease liability
Dr Cash/Cr Lease receivable 25,000 180,000*6,47%
Dr Lease liability/Cr Cash 25,000
+ Out off balance financing: vay để tài trợ tài sản nhưng khoản vay không được ghi
nhận trong BCĐKT (thuê máy bay, thuê đất của Nhà nước)  thiếu thông tin 
IFRS 16
IFRS 16
- IFRS 16 introduces a single lessee accounting model and requires a lessee to
recognize a right-of-use asset and a lease liability for all leases except for:
 + Short-term leases of 12 months or less with no purchase option (applied to the
whole class of assets)
+ Low value leases: underlying assets has a low value when new (applied on one by
one basis)
- For all elected the exemption cases, lease payments are recognized as an expense on
a straight-line basis over the lease term
- Meanwhile IFRS 16 maintain dual model for lessor accounting (financial vs.
operating) lease
- E.g. A retailer enters into a contract for the lease of a store in a shopping center for 5
years. Lease payment: $100,000 per year, paid in arrear. Interest implicit in the lease
is 8% per annum. The store has a carrying amount of $1,000,000 and FV of
$1,223,348, useful life of 50 years
 chuẩn mực cũ: coi là operating lease
 chuẩn mực mới: cứ đi thuê là phải ghi nhận, không cần biết operaing/finance
Leasee
Dr Right of used asset 100/1.08^1 + 100/1.08^2 + … + 100/1.08^5 = 399.27
Cr Lease liability

Dr Dep exp 399.27/5

Cr Acc.dep – RoU

Interest exp 399.27*8%

Cr Lease liability

Dr Lease liability 100

Cr Cash

Identifying a lease
• A lease is a contract (or part of a contract) that conveys the right to control the use
of an identified asset for a period of time in exchange for consideration
Example: You’d like to enter into a 3-year rental contract. The owner of that
warehouse offers 2 options to you:
+ You will occupy a certain area of XY cubic meters, but the specific place will
be determined by the owner of the warehouse, based on actual usage of the
warehouse and free storage  không phải lease contract, ghi nhận như
operating lease
+ You will occupy the unit n. 13 of XY cubic meters in the sector A of that
warehouse. This place is assigned to you and no one can change it during the
duration of the contract.
• Right to control the use
- Right to obtain substantially all of the economic benefits from use of the asset.
- Right to direct the use of the asset. This arises if either:
+ The customer has the right to direct how and for what purpose the asset is
used during the whole of its period of use, or
+ The relevant decisions about use are pre-determined and the customer can
operate the asset without the supplier having the right to change those
operating instructions; or the customer designed the asset in a way that
predetermines the use.
- NO control exist if the lessor can substitute the underlying asset during the
lease term AND would benefit economically from doing so.
- Examples:
+ A retailer enters into a contract for the lease of a store in a shopping centre for
5 years. The shopping centre opens from 6am to 10pm. To ensure the security,
all shops must close from 10pm till 6am the next day.
 mặc dù hạn chế thời gian hoạt động nhưng không ảnh hưởng đến lợi ích thu
được  vẫn có right to control the use
+ A retailer enters into a contract for the lease of a store in a shopping centre for
5 years. In the contract, it is specify that the store must be used for selling
garment products.
 từ lúc đi thuê đã biết mình thuê để bán đồ gì  không ảnh hưởng đến việc
quyết định sử dung TS và không ảnh hưởng đến lợi ích thu được  right to
control the use
- Example 1: Customer entered into a 5 year contract with Supplier for the use of 10
specified vehicles owned by Supplier for public transport. Customer determines the
routes, charges and eligibility for discounts. When the vehicles are not being used for
public transport, they can be used for other purposes as decided by Customer. When
the vehicles are not being used, they are kept at the council’s offices, the vehicles can
only be retrieved by Supplier upon Customer’s default. If any of the vehicles breaks
down, Supplier is obliged to provide a temporary replacement.
 đã nêu rõ 10 xe nào trong hợp đồng rồi, có right to control the use, kể cả có break
down cũng không ảnh hưởng đến lợi ích thu được từ TS  vẫn là lease contract
- Example 2: Customer entered into a 2 year contract with Supplier for the use of 1 of
the minibuses owned by Supplier for public transport in order to supplement its
current fleet. Whenever needed, Customer will make a request one day in advance to
Supplier and Supplier will make available one of its minibus for the use of Customer
 không biêt là mini bus nào  không phải lease contract
- Example 3:
+ Buddy signed a 5 year contract for the use of Booth 16 in the complex
operated by StoreForRent.
+ Buddy has the right to use the booth from 6am to 11pm. For security reason,
Buddy is not allowed to use the booth from 11pm to 6am.
+ Buddy has the right to choose what to sell and how much to charge of its
goods.
+ During the contract term, StoreForRent, at its expense, may request Buddy a
switch to another floor. Buddy, however, has the right to reject.  lease
contract (nếu không có quyền từ chối thì không phải lease contract)
Measurement
• Initial measurement of right of use asset (RoU): measured at cost, comprises:
- Initial measurement of lease liability
- Any payments made before commencement date, less any lease incentives
received (khoản giảm trừ số tiền phải trả)
- Any Initial direct costs incurred by the lessee (trả tiền cho môi giới, pháp lí…)
- Any costs incurred by the lessee for dismantling, removing and restoring the site
at the end of the lease
• Initial measurement of lease liability: PV of future lease payments, discounted at
the interest rate implicit in the contract or the lessee’s incremental borrowing rate.
- Interest implicit in the lease: Discount rate at which
PV (lease payments + unguaranteed residual value) = FV of underlying assets +
initial direct cost
- Lessee’s incremental borrowing rate: interest rate that lessee would have to pay
to borrow the necessary funds to obtain an asset of similar value to the right of
use asset over a similar term, with a similar security in similar economic
environment
• Subsequent measurement of right of use asset:
- Cost model (IAS 16):
+ Right of use asset (RoU) is normally measured at cost less accumulated
depreciation and impairment loss.
+ Right of use asset is depreciated from the commencement date to the earlier of
the end of its useful life or the end of the lease term.
- Revaluation model (IAS 16) if the right of use asset relates to the class of PPE
measured under revaluation model
- Fair value model (IAS 40): if the right of use asset meets the definition of
investment property and FV model is applied.
• Subsequent measurement of lease liability: Lease liability reduced by lease
payment and increased by the interest charged on outstanding liability (amortized
cost)
Lease payment: $50,000  lần 1 trả ngay lúc kí hợp đồng
Lease liability = PV of future lease payment = 50,000/1.05^2 + … + 50,000/1.05^4 =
177,300
RoU asset = 177,300 + 50,000 + 20,000 – 5,000 = 242,300
Dr RoU asset 242,300
Cr Cash 65,000
Cr Lease liability 177,300

Nếu trả tiền cuối năm: Opening – Interest – Payment – Closing

Up-front payment = $2,000
Lease liability = PV of future lease payment = $7,860
RoU asset = $7,860 + $2,000 + $600 = $10,460
Dr RoU asset 10,460
Cr Cash 2,000
Cr Lease liability 7,860
At the end of year 1
Dr Dep exp 10,460/6 = 1743.33
Cr Acc dep

Dr Interest exp 786

Cr Lease liab

Dr Lease liab 2000

Cr Cash
Subsequent lease liabilities
Year Opening Interest Payment (trả cuối năm nên Closing
tính interest trước)
1 7,860 786 2,000 6,646
 CL: 1,335.4 (thực tế trả
Y2, là nghĩa vụ phải trả Y1)
NCL: 5,310.6
2 6,646 664.6 2,000 (trả interest trước, 5,310.6
phần còn lại mới trả cho
 current lia)
3 5,310.6 531.06 2,000 3,841.66
4 3,841.66 384.166 2,000 3,457.5
5 3,457.5 345 2,000
6 500
14.06.2024
CHAPTER 14: INVENTORIES
DEFINITION
• Inventories are assets:
- Held for sale in the ordinary course of business; or
- Used in the production of goods for resale or in the rendering of services
• Inventories include:
- Goods purchased and held for resale
- Finished goods produced
- Work in progress being produced
- Materials and supplies awaiting use in the production process

MEASUREMENT
• Inventories must be measured at the LOWER of COST & NET REALISABLE
VALUE
• The lower of cost and net realisable value should be calculated on a line by line
basis (ie taking each item separately).
• The cost of inventory comprises:
- Costs of purchase
+ Purchase price
+ Import duties and other taxes
+ Transport, handling and any other costs directly attributable to the
acquisition of finished goods, materrials and services
+ Less trade discounts, rebates and other similar items
- Costs of conversion
+ Direct materials and labour
+ Variable production overheads
+ Fixed production overheads (these must be allocated to items of
inventory based on the entity’s normal level of activity)
- Other costs incurred in bringing inventories to their present location and
condition (ie: the non-production overheads of designing product for specific
customer)
But NOT:
+ Abnormal wastage (materials, labour or overheads)
+ Storage costs (phát sinh sau khi sp hoàn thành, còn nếu là chi phi lưu
kho NVL, sp dở dang  vẫn tính vào chi phí inv)
+ Administrative overheads
+ Selling costs
 • An approximation to the cost of inventories may also be calculated using one of two
techniques:
- Standard costs (ước tính theo chi phí tiêu chuẩn  cuối kì điều chỉnh sau)
- Retail method: ước tính = giá bán - lợi nhuận (profit margin)

DETERMINING COGS
• Uninterchangeable items (không thể thay thế): specific identification method
• Interchangeable items: IAS 2 allows their cost to be determined by reference to one
of two estimation techniques
- First in, first out (FIFO)
- Weighted average cost (AVCO): continuous (bình quân liên hoàn), periodic (bình
quân cả kì)
• Same model for all inventories having similar nature and use to the entity
Example: fast moving foods – AVCO thì electricity equipment – FIFO được không?
 2 mặt hàng có bản chất khác nhau nên dùng phương pháp khác nhau được

FIFO AVCO
COGS 39,250 Average cost 160
(200 x $150 + 50 x $185) (200 x $150 + 80 x $185)/280
Revenue 50,000 COGS 40,000
 Gross profit 10,750 (250 x $160)
 Closing inventory 5,550 Revenue 50,000
 Gross profit 10,000
 Closing inventory 4,800

• Inflation: giá mua sau cao hơn giá mua trước

COGSFIFO < COGSAVCO
 ProfitFIFO > ProfitAVCO
• Change in inventory valuation method is change in accounting policy  adjusted
restrospectively (điều chỉnh hồi tố)

SUBSEQUENT MEASUREMENT
• Inventories must be measured at the LOWER of cost and net realisable value
• Net realisable value
Estimated selling price X
Less estimated costs of completion (X)
Less estimated selling costs* (X)
X
*Marketing, selling and distribution costs
• Example: Ghi giảm giá trị hàng tồn kho: Dr Expense/Cr Inventory 6
Inventory item Cost NRV Lower
1 27 32 27
2 14 8 8
3 43 55 43
4 29 40 29
113 135 107
• Measuring inventories at the lower of cost and NRV will result in any loss being
recognised in the financial statements as soon as it is forseen (Hàng tồn kho có lãi
 không được phép ghi nhận lãi)
• NRV may be lower than cost due to:
- An increase in costs or fall in sales price
- Physical deterioration of inventories
- Obsolescence of products
- A management decision to sell products at a loss
- Errors in production or purchasing

NRV NOTES
• Assessment of NRV takes place at the same time as selling price estimates
 Watch out for events after the period confirming a condition existing at the end
of the period
• Assessment of NRV should take into account the reasons for holding inventory
 Watch out for inventory held for specific contract
• Reversal of previous write-down: When selling price falls and rises again.
• Write-down of inventory normally takes place on an item by item basis, rather than
a whole classification.
Item 1: inventory held for specific contract  dù giá trị hàng tồn kho giảm, không ảnh
hưởng gì đến DN  không ghi giảm giá trị hàng tồn kho  $24,000
Item 2:
Cost 33,600
NRV 31,800
(= 36,000 + 4,200 (khách trả ½) – 8,400)
Inventory written down 1,800
Dr Expense/Cr Inventory 1,800
 Total value: 55,800

BIOLOGICAL ASSETS (IAS 41)

• IAS Agriculture applies the requirements of IFRS to the treatment of biological
assets.
• Biological assets are living animals or plants
• Biological transformation: processes of growth, degeneration, production and
procreation that cause the qualitative and quantitative changes in a biological asset
• Harvest (thu hoạch) is the detachment of produce from a biological asset or the
cessation of a biological asset’s life process (as in slaughter)
• Agriculture produce (sản phẩm nông nghiệp) is the harvested product of any
entity’s biological assets (such as apples or carcasses)
• IAS 41 distinguishes between two broad categories of agricultural production system
- Consumable: animals and plants themselves are harvested (such as beef cattle
and wheat)
- Bearer: animals and plants bear produce for harvest (such as dairy cows and
apple trees)
Recognition
Animals and plants are recognised as assets when:
(a) The entity controls the asset as a result of past events
(b) It is probable that future economic benefits associated with the asset will flow to
the entity
(c) The fair value of the asset or its cost to the entity can be measured reliably
Measurement
• IAS 41 requires all biological assets to be measured at fair value less cost to sell on
initial recognition and at subsequent reporting date
• Fair value can usually be taken to be market value
• Gain/Loss  P/L
• All costs related to biological assets that are measured at fair value are recognized as
expenses when incurred, other than costs to purchase biological assets
• Agricultural produce is recognised prior to harvest at fair value less estimated
point of sale costs.
• Following harvest agricultural produce is classified as inventory and accounted for
in accordance with IAS 2
 261. Which of the following items held by Schrute will be accounted for under the
provisions of IAS 41?
- Herd of cattle  Bearer animals  IAS 41
- Milk  Agricultural produce  sau thời điểm thu hoạch: IAS 2
- Cheese  IAS 2

262. What gain should be taken to shrute’s SOPL for the year ended 31 Mar 20X6 in
respect of the flock of sheep?
Purchase cost 100,000
Selling cost 5,000
(5% x 100,000 - vừa mua xong giả định bán ngay))
FVLCTS 95,000
1 Apr X5
Dr Biological asset 95,000
Dr Expense 10,000
(5,000 transaction fee + 5,000 estimated selling cost)
Cr Cash 105,000

31 Mar X6
FVLCTS 114,000
(120,000 – 5% x 120,000)
Ghi nhận: Dr BA/Cr PL 19,000

263. Using current cost accounting, what is the value of the machinery at 31 Mar 20X6?
Market value 300,000
Acc dep 120,000
Current cost 180,000

• Ở VN chưa có chuẩn mực cho BA

VD: Mua 1 đàn bò, 10 con, mỗi con 2tr
 Tại thời điểm mua: Dr BA/Cr Cash 20
COST MODEL FVLCTS MODEL (IAS 41)
Trong năm 1, chi phí chăm sóc: 30tr Trong năm 1, chi phí chăm sóc: 30tr
Dr Expense/Cr Cash 30 Dr Expense/Cr Cash 30
Historical cost  lúc nào bán bò mới ghi
nhận doanh thu Cuối năm 1: FVLCTS 60
 Dr BA/Cr PL 60-20=40
Hết năm 1  không ghi nhận doanh thu  LÃI: 40 – 30 = 10
 LỖ: 30
Trong năm 2, chi phí chăm sóc: 50 tr
Trong năm 2, chi phí chăm sóc: 50 tr Dr Expense/Cr Cash 50
Dr Expense/Cr Cash 50
Cuối năm 2, bán đàn bò thu được 130tr
Cuối năm 2, bán đàn bò thu được 130tr Dr Cash/Cr Revenue 130
 LÃI: 60 (130 – 50 – 20) Dr COGS/Cr BA 60
Dr Cash/Cr Revenue 130  LÃI: 130 – 50 – 60 (chi phí giá vốn) =
Dr COGS/Cr BA 20 20
 TỔNG LÃI: 30  TỔNG LÃI: 30

FINAL:
• 2 BT: Financial instrument + Leases + Provisions + Inventories (4 chap cuối)
• TN: hết các chap đã học
CHAPTER 11: FINANCIAL
INSTRUMENTS
 Definition of Financial instruments (IAS 32)
 Recognition and measurement (IFRS 9)
 Presentation (IAS 32, IFRS 9)
 Disclosure (IFRS 7)

A – Needs money B – Provides money

 A có thể huy động vốn theo 2 cách:
+ Huy động vốn vay: kí hợp đồng vay/phát hành trái phiếu, giấy tờ nhận nợ
 DEBT INSTRUMENTS
+ Huy động vốn chủ sở hữu: phát hành cổ phiếu  EQUITY INSTRUMENTS
 Financial liabilities  Financial assets
 Equity

A issue BONDS and B purchase  Financial assets of B and Financial liabilities of A

A B
Debit Cash Credit Bond Debit investment Credit Cash
(CA in FS) payable (Assets in FS)
(NCL in FS)

A issue SHARES and B purchase  Financial assets of B and Financial equity of A

A B
Debit Cash Credit Share Debit investment Credit Cash
(CA in FS) capital (Assets in FS)
(Equity in FS)

Debt instruments vs. Equity instruments

 Debt instruments: LEGALLY OBLIGATES the issuer to provide the buyer the
agreed-payments
  Equity instruments: The issuer DOES NOT have to provide the buyer the agreed-
payments
Financial liabilties vs. Financial assets
 THE BUYER  Financial assets
 THE SELLER  Financial Liabilities/Equity

Bonds (trái phiếu) & Loan notes (chứng từ nhận nợ)

 Bonds are investment securities where an investor lends money to a company or a
government for a set period of time, in exchange for regular interest payments.
Once the bond reaches maturity, the bond issuer returns the investor’s money.
 Key terms:
+ Principal value/ Nominal value/ Par value/ Face amount (giá trị danh nghĩa được
người phát hành sử dụng để tính lãi hàng kì, số tiền gốc sẽ trả khi trái phiếu đáo
hạn)
+ Market price (giá trị thị trường)
+ Coupon interest rate (tỉ lệ lãi suất danh nghĩa tính lãi hàng kì: xác định tại thời
điểm mua trái phiếu, cố định không đổi)
+ Effective interest rate (tỉ lệ lãi suất thực tế: chi phi sử dụng vốn vay thực tế mà
người đi vay phải gánh chịu  chi phí tài chính thực tế trong kì của người đi vay,
thu nhập thực tế của người cho vay)
+ Maturity date (ngày đáo hạn: thanh toán giá trị nợ gốc đã cam kết)
 E.g 1:
+ 1 Jul X4: S Co issued to B Co $18m loan note
+ Nominal value of loan note: $20m & nominal interest rate of 5%/year
+ Direct issue cost of $0.5m have been charged to admin expenses  giảm giá trị
công cụ nợ thay vì ghi giảm admin exp
Giá trị công cụ nợ ghi nhận theo lợi ích thực tế mà bên phát hành thu được  Tại
thời điểm phát hành, S Co ghi nhận giá trị công cụ nợ: 18 – 0.5 = $17.5m
+ The loan note will be redeemed (được đáo hạn) after 3 years at a premium which
gives the loan note an effective finance cost of 8% p.a.
  Chi phí lãi vay thực tế của S Co và thu nhập từ lãi vay thực tế của B Co là 8%
p.a
+ Annual interest was paid on 30 Jun X5
Principle 1 – Measurement of financial liabilities
FOR ‘THE ISSUER’
Initial Recognition
Fair Value of considered received – Direct transaction cost
Subsequent measurement
Amortised cost = Outstanding balance + Interest expense – Interests paid
(*) Not applied to “At Fair Value through profit or loss” instruments (đầu tư ngắn hạn)

[1] ACCOUNTING RECORDS OF S CO

Annual interest payable: $20m x 5% $1m
Loan note – Financial liability at 1.7.X4 $18m - $0.5m $17.5m
Interest expense $17.5 x 8% $1.4m
CB of Loan note – FL $17.5m + $1.4m – $1m $17.9m
 SFP: FL $17.9m
SPL: Chi phí tài chính $1.4m

Principle 2 – Measurement of financial assets

FOR ‘THE BUYER’ – DEBT INSTRUMENTS
Initial Recognition
Fair Value of consideration given + Direct transaction cost
Subsequent measurement
 Held to maturity (giữ chờ đến ngày đáo hạn):
Amortised cost = Outstanding balance + Interest income – Interest received
 Available for sale (chờ tăng giá bán): Fair value (chênh lệch giữa giá trị hợp lí &
giá trị ghi sổ  OCI)
(*) Not applied to “At Fair Value through profit or loss” instruments

[2] ACCOUNTING RECORDS OF B CO

Held to maturity Available for sale
 Financial assets at 1.7.X4 $18m Interest income (PL) $1.44m
Annual interest received $1m FV at 30.6.X5 (BS) $19.44m
Interest income ($18m x 8%) $1.44 CA of FA $18.44m
CB of FA $18.44m OCI $1m

SHARES – RIGHTS ISSUE – BONUS ISSUE

 A share is referred to as a unit of ownership which represents an equal proportion of
a company’s capital
 A rights issue is an invitation to existing shareholders to purchase additional new
shares in the company at a discount to the market price on a stated future date
 A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free
additional shares to existing shareholders. (cổ phiếu thưởng  phân phối miễn
phí, nguồn thặng dư cổ phần/giữ lại khác của công ty  không làm thay đổi giá trị
tổng chủ sở hữu trên SFP, chỉ phân loại lại vốn chủ sở hữu)
 Types of shares
EQUITY INSTRUMENTS DEBT INSTRUMENTS
+ Ordinary shares + Redeemable preference shares
+ Irredeemable preference shares
(CP ưu đãi không hoàn lại)

Principle 3 – Measurement of equity instruments

FOR ‘THE ISSUER’
Initial recognition
Fair Value of considered received – Direct transaction cost
Subsequent measurement: No revaluation
E.g 2:
+ 1 Nov X7: D Co issued 1.5m ordinary shares  công cụ vốn đơn thuần at the
price of $2.2/share  Tăng VCSH, Chênh lệch mệnh giá & giá phát hành  thặng
dư vốn cổ phần
+ Issue cost is $5,000  giảm giá trị công cụ vốn
Phản ánh giá trị cổ phiếu phổ thông đã Chi phí phát hành
phát hành
Dr Cash $2.2 * 1.5m = $3.3m Dr Share premium $5,000
Cr Share cap $1 * 1.5m = $1.5m Cr Cash
Cr Share premium $1.8m
E.g 3:
 + 31.Mar.X5: Equity share & Share premium account balance are $30m & $5m
+ Oct.X4: C Co issued “a right issue 1 for 5 shares” at the price of $1.6/share
+ All rights issue are exercised & C Co received cash (tất cả quyền mua cổ phiếu đã
được thực hiện và C Co đã thu tiền về)
+ 1.Oct.X4: Shares have nominal value of $1/share & market value $2.5/share
 Ảnh hưởng quyền mua cổ phiếu lên BCTC 31.3.X5?

Shares volume at 31.Mar.X5: $30m/$1 = 30m

(số lượng cổ phiếu cuối năm tài chính  đã bao gồm ảnh hưởng đợt phát hành mua cổ
phiếu)
Shares volume before rights issue:30m x 5/6 = 25m
Value of the “exercised rights issue” 5m x $1.6 = $8m

Dr Cash $8m
Cr Share capital $5m
Cr Share premium $3m

E.g 4:
+ 31.Dec.X7: H Co issued “a bonus issue 1 for 5 current shares”
+ H Co utilises the share premium as far as possible in recording the bonus issue
+ Jan.X7: $1 ordinary share balance is $20m & share premium balance is $3m
 Xác định số dư tài chính của các tài khoản liên quan vào cuối năm

Volume of ordinary shares at 1.1.X7: $20m/$1 = 20m

Number of bonus shares issued: 20m/5 = 4m
Value of bonus shares: 4m x $1 = $4m

Dr Share premium $3m

Dr RE $1m
Cr Ordinary share $4m

 Balance of ordinary share at 31.Dec.X7: $20m + $4m = $24m

 Balance of share premium: 0

Principle 4 – Measurement of financial assets

FOR ‘THE BUYER’ – EQUITY INSTRUMENTS
Initial recognition
FV of consideration given + Direct transaction cost
 Subsequent measurement: FV (movements charged to OCI)
E.g 5:
+ 1.Feb.X8: H Co purchased 20,000 shares at the price of $4/share
+ Nominal value: $1/share & issue cost is $5,000
+ 31.Dec.X8: Market value is $5.5/share
+ 30.Sep.X8: H Co received dividend of $0.2/share  khoản thu nhập phát sinh từ
công cụ vốn  tính vào thu nhập trong kì (PL)
 Ảnh hưởng các giao dịch đến BTCT tại 31.Dec.X8

Initial recognition at 1.2.X8 20,000 x $4 + $5,000 $85,000

FV of shares at 31.12.X8 20,000 x $5.5 $110,000
Difference between FV & CA charged to $110,000 - $85,000 $25,000
OCI
Investment income (dividend) charged to PL $0.2 x 20,000 $4,000

Convertible Bonds & Loan notes

• Bonds/Loan notes which give their holders the right at some future date to exchange
their securities for ordinary shares of the company, at a pre-determined
conversion rate
• Convertible bonds = Debt instruments + Equity instruments

Principle 5 – Measurement of Compound instruments

• Debt instrument & Equity instrument need to be classified separately
• Determine the CA of the liability component (xác định giá trị debt instrument =
chiết khấu dòng tiền tương lai về hiện tại theo tỉ lệ lãi suất của công cụ tương
đương nhưng không có quyền chuyển đổi)
• Assign the residual amount to the equity component (Tổng giá trị - Giá trị công cụ
nợ = Giá trị công cụ vốn)

E.g 6:
 + 1.Jan.X7: H Co issued 80,000 $100 4% convertible loan notes  công cụ hỗn hợp,
phải tách debt & equity instrument ($8m)
+ Can be converted to equity shares on 31.Dec.X9 or redeemed at par (thanh toán theo
mệnh giá)
+ An equivalent loan without the conversion rights would have required interest of
6%
+ Interest is payable annual in arrears (trả sau) on 31 Dec (finance costs: $320,000)
4% 6%
End of year 1 0.962 0.943
End of year 2 0.925 0.890
End of year 3 0.889 0.840
 Xác đinh ảnh hưởng của giao dịch lên BCTC 31.Dec.X7?

B1: Giá trị công cụ nợ & vốn tại NGÀY PHÁT HÀNH (cứ cuối mỗi năm X7, X8  cty trả
lãi $320,000; cuối năm X9: trả 8m gốc + lãi)
Year Payment ($000) Discount rate 6% PV ($000)
Year 1 320 0.943 302
(31/12/X7)
Year 2 320 0.890 285
Year 3 8320 0.840 6989
7575
At 1/1/X7
Debt instruments = $7,575,000
Equity instruments = $8m - $7,575,000 = $425,000
B2: Giá trị công cụ nợ CUỐI KÌ X7
1/1/X7: $7,575,000
Interest expenses: $425,000
($7,575,000 x 6%)
Interest paid: ($320,000)
31/12/X7 $7,709,500
Giá trị công cụ vốn CUỐI KÌ X7 (KHÔNG ĐÁNH GIÁ LẠI): $425,000
Investments at FV through profit or loss
A financial asset or liability at FVTPL meets either of the following conditions:
• It is classified as held for trading (bán kiếm lời trong tương lai gần)
• Upon initial recognition it is designated by the entity as at FVTPL
Principle 6
Initial recognition: FAIR VALUE
Transaction costs: are NOT ADDED to FV at intial recognition  ghi thẳng vào chi phí
trong kì của công ty
Subsequent measurement: FVTPL
E.g 1:
+ 1 Jul X4: S Co issued to B Co $18m loan note
+ Nominal value of loan note: $20m & nominal interest rate of 5%/year
+ Direct issue cost of $0.5m have been charged to admin expenses  giảm giá trị công
cụ nợ thay vì ghi giảm admin exp
Giá trị công cụ nợ ghi nhận theo lợi ích thực tế mà bên phát hành thu được  Tại
thời điểm phát hành, S Co ghi nhận giá trị công cụ nợ: 18 – 0.5 = $17.5m
+ The loan note will be redeemed (được đáo hạn) after 3 years at a premium which
gives the loan note an effective finance cost of 8% p.a.
 Chi phí lãi vay thực tế của S Co và thu nhập từ lãi vay thực tế của B Co là 8% p.a
+ Annual interest was paid on 30 Jun X5
[1] S CO – “THE ISSUER”
Financial liability at 1/7/X4 $18m
Interest expense ($18m x 8%) $1.44m
Interest paid $1m
Financial liability at 30/6/X5 $18.44
FV of loan note at 30/6/X5 (closing bal) $19.44
Charged to PL: $19.44 - $18.44 = $1m
[2] B CO – “THE BUYER”
Financial liability at 1/7/X4 $18m
Interest income ($18m x 8%) $1.44m
Interest received $1m
Financial liability at 30/6/X5 $18.44
FV of loan note at 30/6/X5 $19.44
Charged to PL: $19.44 - $18.44 = $1m
DEFINITION
 A financial instrument is
- A contract that gives rise to both a financial asset of one entity and a financial
liability or equity instrument of another
- E.g: a loan agreement from a bank signed by a company, credit offered to customers,
shares of stock of investee

- IAS 32: the following items are NOT financial assets or liabilities
+ Physical assets (e.g: inventories, PPE, leased assets and intangible assets: patents,
trade marks, etc)
+ Prepaid expenses, deferred revenue and most warranty obligations
+ Liabilities or assets that are not contractual in nature (e.g: income taxes that are
the result of statutory requirements imposed by governments; accrued salary)
+ Contractual rights/obligations that do not involve transfer or deliver of a
financial asset (e.g: customer deposit that require transfer of inventory or
deliver of services)

IFRS 9 – FINANCIAL INSTRUMENTS

1. Financial asset
Classification:
• Business model (mô hình kinh doanh)  mục đích nắm giữ TS: thu dòng tiền lãi
định kì hay chờ tăng giá rồi bán hay mua bán kinh doanh liên tục?
• Contractual cash flow characteristics (đặc điểm dòng tiền theo hợp đồng)  dựa trên
hợp đồng cho vay cơ bản: tiền gốc & tiền lãi tương ứng tiền gốc còn tồn đọng
1.1. Recognition
- The above classification is based on 2 elements

Treatment Conditions

• Collect contractual cash flows, and

Amortized cost • Solely payments of principal & interest
(giá trị phân bổ)  DEBT INSTRUMENTS ONLY

Fair value through • Collect contractual cash flows and for sale, and
Other • Solely payments of principal & interest
Comprehensive  DEBT/EQUITY INSTRUMENT (e.g: investment in bonds for long
Income (FVOCI) term trading purpose)

Fair value through • When it’s NOT measured at Amortised cost or at FVTOCI
  Đối với EQUITY INSTRUMENT lẽ ra được đo lường
theo FVTPL  IRREVOCABLE ELECTION to present as
FVTOCI (công ty có thể lựa chọn không thể huỷ ngang
tại thời điểm ghi nhận ban đầu để ghi nhận các khoản
này là FVTOCI)
profit or loss (FVPL) • Option to designate a financial liability at FVTPL: Irrevocable
election to present a Financial liability as FVTPL to reduce an
accounting mismatch (e.g: investment in bonds for short term
trading purpose)
 DEBT/EQUITY INSTRUMENT

 Mặc định của cổ phiếu: FVTPL

 Mặc định của trái phiếu  Amortised cost

 FVTPL (cổ phiếu)

 Amortised cost (loan notes held to maturity)
 FVTPL (loan notes held for trading)
 FVTPL but can elect to hold at FVTOCI
 - Note:
(1) Default category:
Fair value through profit or loss (FVPL) is the default category for equity instrument, which
means that if there is no information about elements to classify it, we will determine
instrument is fair value through profit or loss category.
(2) Reclassification of financial assets
Category of debt instrument can be reclassified when, and only when, an entity
changes its business model for managing financial assets:
o If an entity reclassifies a financial asset, it is required to apply the reclassification
prospectively from the reclassification date, defined as the first day of the first
reporting period following the change in business model that results in the entity
reclassifying financial assets.
o Previously recognized gains, losses (including impairment gains or losses) or
interest are not restated.
Category of equity instrument cannot be reclassified (FVTOCI to FVTPL and vice
versa)
1.2. Measurement
AMORTISED COST
• Initial: Fair value + Transaction costs
• Subsequent: Amortised cost = OB + Interest income – Interest receipt
 Gains/Losses: PL on derecognition
 Interest income: PL
FVTOCI (available for sale)
• Initial: Fair value + Transaction costs
• Subsequent: changes in FV of
 Debt instruments: OCI (reclassification to PL on derecognition)
 Equity instruments: OCI (NO reclassification to PL on derecognition)
• Dividend/Interest income: PL
FVTPL (held for trading)
• Initial: Fair value (Transaction costs: PL  không tính vào giá trị TSTC mà ghi
nhận luôn vào chi phí trong kì vì các công cụ có sự chênh lệch về FV & được ghi
lại luôn vào PL nên chi phí ghi vào PL  phản ánh thông tin nhất quán, phù hợp
hơn)
• Subsequent:
 FV with changes in FV charged to PL
 Dividend/Interest income: PL
Cash flow interest/Interest receipt = Nominal value * Nominal rate
Interest income = Opening balance * Effective rate
Closing balance = Opening balance + Interest income – Interest receipt
Example 1.1: Financial asset at amortised cost
A company purchases a deep discount bond with a par value of $500,000 on 1 Jan 20X1 for
proceeds of $440,000. Annual coupon payments of 5% are payable on 31 December each year.
The entity incurred transaction costs of $5,867. The bond will be redeemed on 31 Dec 20X3 at par.
The effective interest rate on the bond has been calculated at 9.3%.
Required: Show the PL impact and CA of the bond for each of the years of the bond's life. (X1–X3)
Year Amortised cost at the Interest income Coupon Amortised cost at the year
beginning of year received end
1 445,867 41,466 25,000 462,333
(=440,000 + 5,867) (=445,867*9.3%) (=445,867+41,466-25,000)
2 462,333 42,997 25,000 480,330
3 480,330 44,671 25,000 500,000

Example 1.2:
On 1 Jan 20X1 Abacus Co purchased a debt instrument for its fair value of $1,000. The debt
instrument is due to mature on 31 Dec20X5. The instrument has a principal amount of $1,250
and the instrument carries fixed interest at 4.72% that is paid annually. The effective rate of
interest is 10%. How should Abacus Co account for the debt instrument over its five-year term?
 Abacus Co will receive interest of $59 (1,250 x 4.72%) each year and $1,250 when the
instrument matures. Abacus must allocate the discount of $250 and the interest receivable
over the five year term at a constant rate on the carrying amount of the debt. To do this, it
must apply the effective interest rate of 10%
Year Amortised cost at the Interest income Interest Amortised cost at the year
beginning of year received end
X1 1,000 100 (59) 1,041
(=1,000*10%) (1,250*4.72%)
X2 1,041 104 (59) 1,086
X3 1,086 109 (59) 1,136
X4 1,136 113 (59) 1,190
X5 1,190 119 (59+1,250) -
[financial liability]
Cusaba is issuer that issues financial asset for Abacus Co. On 1 Jan 20X1 Cusaba Co issues a
financial liability for its fair value of $1,000. The financial liability is due to mature on 31
December 20X5. The financial liability has a principal amount of $1,250 and the financial liability
carries fixed interest at 4.72% that is paid annually. The effective rate of interest is 10%.
How should Cusaba Co account for the financial liability over its five year term?
Example 1.3:
At the beginning of the year, Company X purchases a financial instrument for its fair value of
$4,000. The financial instrument is due to mature on 31 Dec X9. The instrument has a principal
amount of $5,000 and the instrument carries fixed interest at 5% that is paid annually. The
effective rate of interest is 8%. Suppose that transaction cost is $300 and the fair value of the
financial instrument at the end of the year is $4,200. Determine the impact on X’s balance
sheet and calculate unrealized profit if the financial instrument is classified as:
1) Amortized cost 2) Fair value through profit or loss 3) Fair value through OCI.
Step Amortised cost FVTOCI FVTPL
Step 1: Identify opening $4,300 $4,300 $4,000
balance sheet ($4,000 + $300)
Step 2: Calculate Interest income = Interest income = Interest income =
interest $4,300 x 8% = $344 $4,300 x 8% = $344 $4,000 x 8% = $320
Interest receipt = (PL) (PL)
$5,000 x 5% = 250 Interest receipt = Interest receipt =
$5,000 x 5% = $250 $5,000 x 5% = $250
Step 3: Identify closing $4,394 ($4,300 + $4,200 (FV) $4,200 (FV)
balance sheet $344 - $250)
Step 4: Calculate N/A -$194 (loss)(OCI) $130 (gain) (PL)
unrealized profit/loss ($4,200 - $4,394) ($4,200 - $4,070)
[financial liability]
Company Y is issuer that issues financial asset for company X. At the beginning of the year,
Company Y issues a financial instrument that is acquired by company X for its fair value of
$4,000. The financial instrument is due to mature on 31 December 20X9.
The financial instrument has a principal amount of $5,000 and the financial instrument carries
fixed interest at 5% that is paid annually.
The effective rate of interest is 8%. Suppose that transaction cost is $300 and the fair value of
the financial instrument at the end of the year is $4,200.
Determine the impact on Y’s balance sheet if the financial liability is classified as:
1) Amortized cost 2) Fair value through profit or loss
Amortised cost FVTPL
Step 1: Balance sheet $3,700 ($4,000 - $300) $4,000
opening
Step 2: Interest Interest exp = $3,700 x 8% = Interest exp = $4,000 x 8% =
$296 $320 (PL)
Interest paid = $5,000 x 5% = Interest paid = $5,000 x 5% =
$250 $250
Step 3: Balance sheet closing $3,746 ($3,700 + $296 - $4,200 (FV)
$250)
Step 4: Gain/loss N/A $130 (loss) (PL)
($4,200 - $4,070)

Example 2:
• In Feb 20X8 a company purchased 20,000 $1 listed equity shares at a price of $4 per share.
Transaction costs were $2,000. At the year end of 31 Dec 20X8, these shares were trading
at $5.50. A dividend of 20c per share was received on 30 Sep 20X8.
• Show the FS extracts at 31 Dec 20X8 relating to this investment on the basis that:
 (a) The shares were bought for trading (FVTOCI have not been met)  FVTPL
Initial recognition at 1.2.X8 20,000 x $4 $80,000
FV of shares at 31.12.X8 20,000 x $5.5 $110,000
Difference between FV & CA $110,000 - $80,000 $30,000
Investment income (dividend) $0.2 x 20,000 $4,000

At 1/2/X8 At 31/12/X8
Dr Financial assets 80,000 Dr Cash 4,000
Dr Finance expense 2,000 Dr Financial assets 30,000
Cr Cash 82,000 Cr PL 34,000

Statement of profit or loss Statement of financial position

Investment income 30,000 Investment in equity instrument 110,000
Dividend income 4,000
Transaction cost (2,000)

(b) Conditions for FVTOCI have been met

Initial recognition at 1.2.X8 20,000 x $4 + $2,000 $82,000
FV of shares at 31.12.X8 20,000 x $5.5 $110,000
Difference between FV & CA charged to OCI $110,000 - $85,000 $28,000
Investment income (dividend) charged to PL $0.2 x 20,000 $4,000

At 1/2/X8 At 31/12/X8
Dr Financial assets 82,000 Dr Cash 4,000
Cr Cash 82,000 Dr Financial assets 28,000
Cr PL 4,000
Cr OCI 28,000

Statement of profit or loss Statement of financial position

Dividend income 4,000 Investments in equity instruments 110,000
Other comprehensive income
Gain on investment in equity 28,000
instruments

Example 3:
On 1 Oct 20X3, Bertrand paid $9.027 million to purchase $10 million loan notes which carry a
coupon rate of 5% per annum. Transaction cost $0,2 million. The loan notes are redeemable on 30
September 20X6 at par for cash. The effective interest rate of this investment is 8%
a) What is the interest income to be shown in the SOPL for the year ended 31 Sep 20X5?
b) What is the closing balance of investment in loan notes to be shown in SOFP for the year
ended 31 Sep X5
c) Assume that the borrowing interest at 31 Sep 20X5 is 10%. Calculate the FV of the loan notes
at that date. How should we account for this information?
Example:
Example 5: Financial liability (factoring of receivables)
An entity has an outstanding receivables balance with a major customer amounting to $12
million, and this was factored to Finance Co on 1 Sep 20X7. The terms of the factoring were:
Finance Co will pay 80% of the gross receivable outstanding account to the entity immediately.
• The balance will be paid (less the charges below) when the debt is collected in full. Any
amount of the debt outstanding after four months will be transferred back to the entity
at its full book value.
• Finance Co will charge 1% per month of the net amount owing from the entity at the
beginning of each month. Finance Co had not collected any of the factored receivable
amount by the year-end.
• The entity debited the cash from Finance Co to its bank account and removed the
receivable from its accounts. It has prudently charged the difference as an
administration cost.
Required: How should this arrangement be accounted for in the financial statements for the
year ended 30 September 20X7?
Step 1: Identify substance of the factoring of receivables
Any amount of the debt outstanding after four months will be transferred back to the entity at
its full book value  As the entity still bears the risk of slow payment and irrecoverable debts,
the substance of the factoring is that of a loan on which finance charges will be made
Step 2: Determine treatment for the receivables
Debit ($’000) Credit ($’000)
Receivables (to reinstate the balance) 12,000
Administration 9,600 (80% x 12,000)
Finance costs: accrued interest 2,400 (12,000 – 9,600)
Accruals 96 (96,000 x 1%)
12,096 12,096

Example 6: Convertible bond

• A company issued 3,000 convertible bonds at par on 1 January 20X1. The bonds are
redeemable 31 December 20X4 at their par value of $100 per bond. The bonds pay interest
annually in arrears at an interest rate (based on nominal value) of 5%. Each bond can be
converted at the maturity date into 5 $1 shares. The prevailing market interest rate for four
year bonds that have no right of conversion is 8%.
• The present value at 8% of $1 receivable at end of:
Year 1 0.926
Year 2 0.857
Year 3 0.794
Year 4 0.735
• Required : Show the accounting treatment of the:
a. Bond at inception
The first step is to calculate the fair value of the liability component. This is done by discounting
the contractual stream of future cash flows at the market rate of interest for a similar debt
without conversion option.
The cash flows are:
 Interest payments of £5 (5% of £100) at the end of each year for 4 years
 Redemption value of £100 at the end of 4 years
Year CF PV factor at 8% PV
 1 $5 0.926 $4.63
2 $5 0.857 $4.29
3 $5 0.794 $3.97
4 $105 0.735 $77.18
Total $90.07
The total fair value of the liability instrument for 3,000 bonds is £90.07 * 3,000 = £270,210.
The equity component is then calculated as the difference between the total proceeds of the
bond issue (£300,000) and the fair value of the liability component (£270,210). This gives an
equity component of £29,790.
Journal entry at inception
Dr Cash $300,000
Cr Liability instrument $270,210
Cr Equity instrument $29,790
b. Financial liability component at 31 December 20X1 using amortised cost
The carrying amount of the liability component at the start of the year is £270,210. The interest
expense for the year is calculated as the carrying amount multiplied by the effective interest
rate (8%): £270,210 * 8% = £21,617.
The cash paid for the interest at the end of the year is £5 * 3,000 = £15,000.
The carrying amount of the liability at the end of the year is the carrying amount at the start of
the year plus the interest expense minus the cash paid for interest: £270,210 + £21,617 -
£15,000 = £276,827.
Journal entry at the end of the year:
Dr Interest expense $21,617
Cr Cash $15,000
Cr Liability instrument $6,617

Example 7:
Company X issues 8,000 convertible bonds at the start of 20X9. The bonds have a four-year
term, and are issued at par with a face value of $1,000 per bond. Interest is payable annually in
arrears at a nominal annual interest rate of 5%. When the bonds are issued, the prevailing
market interest rate for similar debt without conversion options is 8%.
What is the value of the equity component in the bond?

Step 1: Total proceeds 8,000 x $1,000 $8,000,000

Step 2: Annual interest payable $8,000,000 x 5% $400,000
Step 3: PV of interest cash flow
Time Annual interest payable Discount rate [1/(1+r)y] Present value
Year 1 $400,000 1/(1+8%)1 $370,370
Year 2 $400,000 1/(1+8%)2 $342,935
Year 3 $400,000 1/(1+8%)3 $317,533
Year 4 $400,000 1/(1+8%)4 $294,011
Total $1,324,849
PV of total proceeds $8,000,000 x 1/(1+8%)4 $5,880,239
Step 4:
Value of financial liability $1,324,849 + $5,880,239 $7,205,088
Value of equity instrument $8,000,000 - $7,205,088 $794,912
Time Financial liability Equity instrument
Year 1 $6,174,250 (=$5,880,239 + $294,011) $794,912
Year 2 $6,491,783 (=$6,174,250 + $317,533) $794,912
Year 3 $6,834,718 (=$6,491,783 + $342,935) $794,912
Year 4 $7,205,088 (=$6,834,718 + $370,370) $794,912

[Open Tuition]
Example 1 – Financial assets
Norman has the following financial assets during the financial year. Explain how each of the
above financial assets will be accounted for in the financial statements.
1. Norman bought 100,000 shares in a listed entity on 1 November 2015. Each share cost
$5 to purchase and a fee of $0.25 per share was paid as commission to a broker. The fair
value of each share at 31 December 2015 was $3.50  FVTPL (default)

Initial
@FV Dr Investment (SFP)/Cr Bank $500,000
(100,000 x $5)
and
Dr Transaction costs (SPL)/Cr Bank $25,000
(100,000 x $0.25)
Subsequent
@FV Dr SPL (exp)/Cr Investment $150,000
= $3.50 x 100,000 = $350,000
 Reduction in FV = $150,000

2. Norman bought 200,000 shares in a listed entity on 1 March 2015 for $500,000,
incurring transaction costs of £40,000. Norman acquired the shares as part of a long
term strategy to realise the gains in the future. The fair value of the shares was
£620,000 at 31 December. The shares were subsequently sold for $650,000 on 31
January 2016  FVTOCI (intent to hold)  include transaction costs

Initial
@FV Dr Investments/Cr Bank $540,000
($500,000 + $40,000)
Subsequent
@FV Dr Investments/Cr OCI $80,000
= $620,000
 Increase in FV = 80,000

3. Norman bought 10,000 debentures at a 2% discount on the par value of $100. The
debentures are redeemable in four years’ time at a premium of 5%. The coupon rate
 attached to the debentures is 4%. The effective rate of interest on the debenture is
5.73%  Measured @ Amortised cost

Pay cash 98% x 10,000 x $100 $980,000 (Dr Investments/Cr Bank)

Cash received $1,210,000 (Dr Bank/Cr Investments)
coupon interest = 4% x $100 x 10,000 = $40,000 pa (4yrs) = $160,000
redemption = $100 x 10,000 x 1.05 = $1,050,000
$230,000 (interest received @5.73%)
(Dr Investment/Cr Int.receivable (SPL))
Year B/F Interest received @5.73% (SPL) Cash @4% C/F (SFP)
1 980,000 56,154 (40,000) 996,154
2 996,154 57,080 (40,000) 1,013,234
3 1,013,23 58,058 (40,000) 1,031,292
4
4 1,031,29 59,093 (1,090,000) Nil
2
230,000 1,210,000
[Journals]
Initial Dr Investment 980,000
Cr Bank
Int.receiv Dr Invesment 56,154
Cr Int.receiv
Coupon Dr Bank 40,000
Cr Investment

Y1 Y2 Y3 Y4
SFP: Investment 996,154 1,013,234 1,031,292 Nil
SPL: Int.recei 56,154 57,080 58,058 59,093

Example 2 – Financial liabilities

Norma issues 20,000 redeemable debentures at their $100 par value, incurring issue costs of
$100,000. The debentures are redeemable at a 5% premium in 4 years’ time and carry a coupon
rate of 2%. The effective rate on the debenture is 4.58%.
Calculate the amounts to be shown in the statement of financial position and statement of
profit or loss for each of the four years of the debenture.

Net proceeds = (20,000 x $100) - $100,000 = $1,900,000 (Dr Bank/Cr FL)

Receive 1,900,000
Pay 2,260,000
(coupon interest = 40,000 x 4 years = 160,000
principal = 2,100,000)
360,000  Finance cost (Dr Finance cost/Cr FL @4.58%)

Year B/F Finance cost @4.58% (SPL) Coupon @2% C/F (SFP)
1 1,900 87 (40) 1,947
 2 1,947 89 (40) 1,996
3 1,996 91 (40) 2,047
4 2,047 94 (2,140) Nil
360 2,260
[Entries] Year 1:
Finance cost Dr Fin.cost (SPL)/Cr FL (SFP) 87
Coupon Dr FL (SFP)/Cr Bank 40

Y1 Y2 Y3 Y4
SFP: Debentures 1,947 1,996 2,047 nil
SPL: Finance cost 87 89 91 94

Example 3 – Convertible debentures

Alice issued one million 4% convertible debentures at the start of the accounting year at par
value of $100 million.
The rate of interest on similar debt without the conversion option is 6%.
Explain how Alice should account for the convertible debenture in its financial statements for
each of the three years.

Proceeds = 1,000,000 x $100 = $100,000,000

Cash = 4% x $100,000,000 = $4,000,000

[Working]
PV of CFs
Year CF DF 6% PV
1 4 0.943 3.772
2 4 0.89 3.56
3 104 0.84 87.36
94.692 ~ $94.7m
Dr Bank $100m
Cr FL $94.7m
(@ amortised cost)
Cr Equity $5.3m

Year B/F Finance cost Cash @4% C/F (SFP)

@6% (SPL)
1 94.7 5.7 (4) 96.4
2 96.4 5.8 (4) 98.2
3 98.2 5.9 (104) nil

Y1 Y2 Y3
SFP:
Debentures 96.4 98.2 nil
Equity 5.3 5.3 5.3
SPL: Finance cost 5.7 5.8 5.9
  E.g 1:
+ 1 Jul X4: S Co issued to B Co $18m loan note
+ Nominal value of loan note: $20m & nominal interest rate of 5%/year
+ Direct issue cost of $0.5m have been charged to admin expenses  giảm giá trị công cụ
nợ thay vì ghi giảm admin exp
Giá trị công cụ nợ ghi nhận theo lợi ích thực tế mà bên phát hành thu được  Tại thời
điểm phát hành, S Co ghi nhận giá trị công cụ nợ: 18 – 0.5 = $17.5m
+ The loan note will be redeemed (được đáo hạn) after 3 years at a premium which gives
the loan note an effective finance cost of 8% p.a.
 Chi phí lãi vay thực tế của S Co và thu nhập từ lãi vay thực tế của B Co là 8% p.a
+ Annual interest was paid on 30 Jun X5
[1] ACCOUNTING RECORDS OF S CO
Annual interest payable: $20m x 5% $1m
Loan note – Financial liability at 1.7.X4 $18m - $0.5m $17.5m
Interest expense $17.5 x 8% $1.4m
CB of Loan note – FL $17.5m + $1.4m – $1m $17.9m
 SFP: FL $17.9m
SPL: Chi phí tài chính $1.4m

[2] ACCOUNTING RECORDS OF B CO

Held to maturity Available for sale
Financial assets at 1.7.X4 $18m Interest income (PL) $1.44m
Annual interest received $1m FV at 30.6.X5 (BS) $19.44m
Interest income ($18m x 8%) $1.44 CA of FA $18.44m
CB of FA $18.44m OCI $1m

E.g 2:
+ 1 Nov X7: D Co issued 1.5m ordinary shares  công cụ vốn đơn thuần at the price of
$2.2/share  Tăng VCSH, Chênh lệch mệnh giá & giá phát hành  thặng dư vốn cổ phần
+ Issue cost is $5,000  giảm giá trị công cụ vốn
Phản ánh giá trị cổ phiếu phổ thông đã phát Chi phí phát hành
hành
Dr Cash $2.2 * 1.5m = $3.3m Dr Share premium $5,000
Cr Share cap $1 * 1.5m = $1.5m Cr Cash
Cr Share premium $1.8m

E.g 3:
+ 31.Mar.X5: Equity share & Share premium account balance are $30m & $5m
+ Oct.X4: C Co issued “a right issue 1 for 5 shares” at the price of $1.6/share
+ All rights issue are exercised & C Co received cash (tất cả quyền mua cổ phiếu đã được
thực hiện và C Co đã thu tiền về)
+ 1.Oct.X4: Shares have nominal value of $1/share & market value $2.5/share
 Ảnh hưởng quyền mua cổ phiếu lên BCTC 31.3.X5?

Shares volume at 31.Mar.X5: $30m/$1 = 30m

(số lượng cổ phiếu cuối năm tài chính  đã bao gồm ảnh hưởng đợt phát hành mua cổ phiếu)
Shares volume before rights issue: 30m x 5/6 = 25m
Value of the “exercised rights issue” 5m x $1.6 = $8m

Dr Cash $8m
Cr Share capital $5m
Cr Share premium $3m

E.g 4:
+ 31.Dec.X7: H Co issued “a bonus issue 1 for 5 current shares”
+ H Co utilises the share premium as far as possible in recording the bonus issue
+ Jan.X7: $1 ordinary share balance is $20m & share premium balance is $3m
 Xác định số dư tài chính của các tài khoản liên quan vào cuối năm

Volume of ordinary shares at 1.1.X7: $20m/$1 = 20m

Number of bonus shares issued: 20m/5 = 4m
Value of bonus shares: 4m x $1 = $4m

Dr Share premium $3m

Dr RE $1m
Cr Ordinary share $4m

 Balance of ordinary share at 31.Dec.X7: $20m + $4m = $24m

 Balance of share premium: 0

- Subsequent
 Cash flow interest/Interest receipt = nominal value * nominal rate
Interest income = opening balance * effective rate
Closing balance = Opening balance + Interest income – Interest receipt

1.3. De-recognition
 1.4. Impairment and uncollectibility
- IFRS 9 is based on providing for expected losses (rather than dealing with losses after
they have arisen) and applies to financial assets held at amortized cost and FVTOCI.

2. Financial liability
2.1. Recognition
- There are two treatments to recognize a financial liability which is set out below:
  Note: A financial instrument is classified as held for trading if it is
o acquired or incurred principally for the purpose of selling or repurchasing
it in the near term
o there is actual pattern of short-term profit-taking
o a derivative
2.2. Measurement
AMORTISED COST FVTPL
Initial Proceed received – Trading cost Proceed received
(Transaction cost  PL)
Subsequent Amortised cost = OB + Interest ALL changes in FV  PL
expense – Interest paid
2.3. De-recognition
- Financial liability should be de-recognised when

2.4. Factoring of receivables

- Factoring of receivables is where a company transfers its receivables balances to
another organization (a factor) for management and collection, and receives an
advance on the value of those receivables in return.

- There are 2 cases that might occur in factoring of receivables:

Significant risks and rewards of
receivables are transferred from the
entity (non - recourse)
• Indications that the debts are
not an asset of the seller
Significant risks and rewards of
receivables are NOT transferred from
the entity (recourse)
• Indications that the debts are an
asset of the seller
 • Transfer is for single non-
returnable fixed sum
• There is no recourse to the
seller for the losses
• Factor is paid all amounts
received from the factored debts
(and no more). Seller has no
rights to further sums from the
factor
Treatment:
Remove the receivables and liability
in respect of the proceeds received
from the factor in balance sheet
IAS 32 – PRESENTATION OF FINANCIAL INSTRUMENT
1. Presentation of liability and equity
- As mentioned in section I.2, the increase on financial asset of one entity will make a rise
of financial liability or equity instrument of another. IAS 32 classified liability or equity
based on:
• Finance cost varies with speed of
collection of debts by adjustment to
consideration for original transfer or
subsequent transfers priced to
recover costs of earlier transfers
• There is full recourse to seller for
the losses
• Seller is required to repay amounts
received from the factor on or
before a set date, regardless of
timing or amounts collected
Treatment:
• Gross amount of receivables should
be in balance sheet of the seller
• Liability in respect of the proceeds
received from the factor should be
shown within liabilities
• Accrue the interest of the factor’s
charges
• Accrue other interest charges in
profit or loss
2. Presentation of preference share

- Lãi trái phiếu  chi phí trong kỳ  được khấu trừ thuế
- Lãi cổ phiếu ưu đãi  giảm RE  không được khấu trừ thuế

3. Presentation of compound financial instrument

4. Presentation of interest, dividend, gain & loss