Page 54 - 2021 CPC Corporation,Taiwan

CPC Corporation, Taiwan
Standards or Interpretations
Amendments to IAS 37 “Onerous Contracts— Cost of Fulfilling a Contract”
Annual Improvements to IFRS Standards 2018-2020
Annual Improvements to IFRS Standards 2018-2020
Content of amendment
The amendments clarify that the “costs of fulfilling a contract” comprises the costs that relate directly to the contract as follows:
• the incremental costs – e.g. direct labor and materials; and
• an allocation of other direct costs – e.g. an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract.
• The amendments require a subsidiary that elects to apply paragraph D16 (a) of IFRS 1 First-time Adoption of International Financial Reporting Standards to measure the cumulative translation differences using the amounts reported by the parent, based on the parent’s date of transition to IFRSs.
• In determining whether to derecognize a financial liability that has been modified or exchanged, an entity assesses whether the terms are substantially different in accordance with IFRS 9 Financial Instruments. The amendments clarify the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability.
• The amendments remove the illustration of payments from the lessor relating to leasehold improvements of Illustrative Example 13 accompanying IFRS 16 Leases to avoid any potential for confusion regarding the treatment of lease incentives applying IFRS 16.
• The amendments remove the requirement for entities to exclude cash flows for taxation when measuring fair value applying IAS 41 Agriculture.
The amendments update references to the Conceptual Framework and add exceptions to the recognition for provisions, contingent liabilities:
• the acquirer shall apply IAS 37 to determine whether at the acquisition date a present obligation exists as a result of past events.
• the acquirer shall apply IFRIC 21 to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the acquisition date.
The key amendments to IAS 1 include:
• requiring companies to disclose their material accounting policies rather than their significant accounting policies;
• clarifying that accounting policies related to immaterial transactions, other events or conditions are themselves immaterial and as such need not be disclosed; and
• clarifying that not all accounting policies that relate to material transactions, other events or conditions are themselves material to a company’s financial statements.
The amendments introduce a new definition for accounting estimates: clarifying that they are monetary amounts in the financial statements that are subject to measurement uncertainty.
The amendments also clarify the relationship between accounting policies and accounting estimates by specifying that a company develops an accounting estimate to achieve the objective set out by an accounting policy.
Effective date per IASB
January 1, 2022
January 1, 2022
January 1, 2022
Amendments to IFRS 3 “Reference to the Conceptual Framework”
Amendments to
IAS 1 “Disclosure of Accounting Policies”
Amendments to
IAS 8 “Definition of Accounting Estimates”
January 1, 2022
January 1, 2023
January 1, 2023