AS-16 BORROWING COSTS

Transcription

1 AS-16 BORROWING COSTS ICAI BKC 9 TH August, 2014 Zubin F. Billimoria

2 Agenda Core Principle Scope Definitions Recognition Costs Eligible for Capitalization Capitalization Rules Disclosures Transitional Provisions 2 Deloitte Haskins & Sells

3 CORE PRINCIPLE Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Other borrowing costs are recognized as an expense.

4 SCOPE Applies to accounting for borrowing costs. Does not apply to: actual or imputed cost of equity, including preferred capital not classified as a liability. (imputed interest charge pertaining to the liability component of a convertible instruments to be considered) borrowing costs directly attributable to the acquisition, construction or production of: (a) a qualifying asset measured at fair value, for example a biological asset; or (b) inventories that are manufactured, or otherwise produced, in large quantities on a repetitive basis.

5 DEFINITIONS Borrowing costs Interest and other costs incurred in connection with the borrowing of funds. Borrowing costs may include: (a) interest and commitment charges on bank and other short and long term borrowings (gains or losses due to early termination not to be considered) (b) amortisation of discounts or premiums related to borrowings (c) finance charges in respect of assets recognised under finance leases or similar arrangements; and (d) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. (to the extent of difference between the interest on local and foreign currency borrowings borrowing cost)

6 DEFINITIONS Qualifying asset Asset that necessarily takes a substantial period of time (generally one year) to get ready for its intended use or sale. Examples of qualifying assets include: inventories, manufacturing plants, Intangible assets, power generation facilities and investment properties. Assets with an extended delivery period (shipping and installation period)

7 DEFINITIONS Qualifying asset Following are not qualifying assets: Financial assets, and inventories that are manufactured, or otherwise produced, over a short period of time. Assets that are ready for their intended use or sale when acquired.(e. g land acquired by a real estate developer )

8 RECOGNITION Capitalize borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, as part of the cost of that asset provided: It is probable that they will result in future economic benefits to the enterprise and The costs can be measured reliably. Other borrowing costs are recognised as an expense in the period in which they are incurred.

9 COSTS ELIGIBLE FOR CAPITALIZATION Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset. Borrowings include: Specific Borrowings General Borrowings

10 COSTS ELIGIBLE FOR CAPITALIZATION Specific Borrowings - Funds are borrowed specifically for the purpose of obtaining a qualifying asset: Borrowing costs eligible for capitalisation on that asset = the actual borrowing costs incurred on that borrowing during the period (less) any investment income on the temporary investment of those borrowings.

11 COSTS ELIGIBLE FOR CAPITALIZATION General Borrowings - Funds are borrowed generally and used for the purpose of obtaining a qualifying asset: Borrowing costs eligible for capitalisation should be determined by applying a capitalisation rate to the expenditures on that asset. Consideration: Capitalization Rate = Weighted average of the borrowing rates applicable to the borrowings of the enterprise that are outstanding during the period. These borrowings should exclude borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalized during a period should not exceed the amount of borrowing costs incurred during that period.

12 COSTS ELIGIBLE FOR CAPITALIZATION It may be difficult to identify a direct relationship between particular borrowings and a qualifying asset and to determine the borrowings that could otherwise have been avoided. Following are instances of such difficulties: financing activity of an enterprise is coordinated centrally when a group uses a range of debt instruments to borrow funds at varying rates of interest, and lends those funds on various bases to other enterprises in the group use of loans denominated in or linked to foreign currencies when the group operates in highly inflationary economies fluctuations in exchange rates Exercise of judgment is required in these cases.

13 COSTS ELIGIBLE FOR CAPITALIZATION A Co. borrowed Rs 120,000 on August 1, 2009 to construct a qualifying asset (Specific Borrowings). The borrowings carry interest of 10% per annum. Construction started and expenditure was incurred at the beginning of every month evenly from September 1, 2009 till December 2009 when construction of the asset was completed. Whenever surplus funds was there, it was invested temporarily at 6% per annum. What is the borrowing cost capitalized and expensed off as on December 31, 2009?

14 EXCESS OF THE CARRYING AMOUNT OF THE QUALIFYING ASSET OVER RECOVERABLE AMOUNT When the carrying amount or the expected ultimate cost of the qualifying asset exceeds its recoverable amount or net realizable value, the carrying amount is written down or written off in accordance with the requirements of other Standards. In certain circumstances, the amount of the writedown or write-off is written back in accordance with those other Standards.

15 COMMENCEMENT OF CAPITALIZATION Capitalization of borrowing costs should commence when: (a) expenditures for the asset are being incurred; (b) borrowing costs are being incurred; and (c) activities that are necessary to prepare the asset for its intended use of sale are in progress. Expenditures on qualifying asset are reduced by any progress payments received and grants received in connection with the asset. The average carrying amount of the asset during a period, including borrowing costs previously capitalized, is normally a reasonable approximation of the expenditures to which the capitalisation rate is applied in that period.

16 ACTIVITIES NECESSARY TO PREPARE ASSET The activities include not only physical construction, but also technical and administrative work prior to the commencement of physical construction. (Ex: Obtaining permits prior to the commencement of the physical construction) Ex: Borrowing costs incurred while land is under development TO BE CAPITALIZED Such activities exclude the holding of an asset when no production or development that changes the asset's condition is taking place. Ex: Borrowing costs incurred while land acquired for building purposes is held without any associated development activity DOES NOT QUALIFY FOR CAPITALIZATION

17 SUSPENSION OF CAPITALIZATION Capitalization of borrowing costs should be suspended during extended periods in which active development is interrupted (Ex: Cost of holding partially completed assets) However, capitalization is not normally suspended During a period when substantial technical and administrative work is being carried out or When a temporary delay is a necessary part of the process of getting an asset ready for its intended use or sale (Ex: Extended period needed for inventories to mature)

18 CESSATION OF CAPITALIZATION Capitalization of borrowing costs should be ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. When completion is in parts and each part is capable of being used while construction continues on other parts, capitalization of borrowing costs should cease when substantially all the activities necessary to prepare that part for its intended use or sale are completed.

19 COMPLETION OF ACTIVITIES TO PREPARE ASSET FOR INTENDED USE The physical construction of the asset is complete even though routine administrative work might still continue. Substantially all the activities are complete if at the most, minor modifications are outstanding (Ex: The decoration of a property to the purchaser's or user's specification).

20 DISCLOSURES (a) the amount of borrowing costs capitalized during the period; and (b) the capitalization rate used to determine the amount of borrowing costs eligible for capitalization.

21 Questions????

22 AS-19 LEASES ICAI BKC 9 TH August, 2014 Zubin F. Billimoria

23 CONTENTS Scope Definitions Classification Characteristics of a Finance Lease Calculation of Minimum Lease payments Accounting and disclosures by lessees Accounting and disclosures by lessors

24 Scope Applies to all leases other than: Lease agreements to explore or use natural resources like oil, gas, mineral rights etc. Licencing arrangements for films, plays, patents, copyrights etc. (rights for exclusive use of such assets are covered) Lease agreements to use land Separation of contracts for use assets and provision of services

25 Definitions Lease Finance Lease Operating Lease

26 Lease An agreement whereby the lessor conveys to the lessee in return for a series of payments, the right to use an asset for an agreed period of time. Includes hire purchase agreements (property in the asset passes to the hirer on payment of last instalment with a right of termination available to the hirer at anytime before property passes).

27 Finance Lease Substantially transfers all the risks and rewards of ownership to the lessee Risks incidental to ownership- losses from idle capacity or technological obsolescence Rewards incidental to ownership- expectation of profitable operation over the assets economic life or gain from appreciation in value

28 Characteristics of a Finance Lease Primary indicators Other indicators

29 Primary Indicators of Finance Lease Ownership transferred to lessee at the end of the lease term (legal title- within or through side agreement) Option to lessee to purchase asset at a price significantly lower than the fair value reasonably certainty for exercise of such option at inception (purchase at a nominal amount- existence of simeltaneous put and call options)

30 Primary Indicators of Finance Lease Lease term is for a major part of the economic life of the asset (losses from idle capacity, technological obsolesence, expectation of profitable operation etc.) Present value of MLPs is substantially the fair value at inception- lessor to receive the full return on his investment Asset of a specialised nature for use of the lesseeonly lessee can use without major modificationsconstruction based on lessee s specifications

31 Other indicators of a Finance lease Cancellation by lessee- lessors losses associated therewith borne by lessee (lessee suffers a penalty for cancellation) Gains or losses from fluctuation in fair value fall on the lessee (rent rebate equalling most of the sale proceeds) balloon rental followed by repayment of substantially all the sale proceeds Ability of lessee to continue in secondary period rent substantially lower than market rent- lessor has recovered his investment- bargain renewal option

32 Factors to consider Bargain Renewal Option Nature of the leased asset Possibility of technological obsolescence Possibility of higher operating and maintenance cost in the secondary period Costs to be incurred by lessor to find new lessee and prepare the asset for new lessee

33 Operating Lease Any lease other than a finance lease always a preferred option- better financial gearing picture Key point of distinction- short term hire arrangement (operating lease) or an arrangement for financing the acquisition of an asset (finance lease) Analysis of the lease agreement / other arrangement weightage to the terms having greater commercial effect

34 Factors relevant for classification Examination of the lease agreement, schedules and side letters Most relevant clauses: Rental payments and rebates Arrangements on termination options, balloon payments, disposal process etc. Less relevant clauses: Maintenance and insurance Termination and insolvency

35 Calculation of Minimum Lease Payments (MLP) Critical for classification and accounting Payments over the lease term to be made by the lessee including: In case of the lessee any residual value guaranteed by or on behalf of the lessee In case of the lessor Any residual value guaranteed by the lessor on behalf of the lessee or by an independent third party

36 Purchase Option Purchase option by lessee expected at a price significantly lower than the fair value to evaluate for reasonable certainty at the inception of the lease- IF YES- MLP to include such payments

37 Exclusion from MLP Contingent rentals non fixed and based on a factor other than passage of time like sales, interest rates, price indices etc. Costs for services and taxes to be paid by and reimbursed to the lessor

38 Lease Term Non cancellable period for which the lessee has agreed to lease the asset plus the future periods for which lessee has option to continue with or without further payment which is reasonably certain at the inception Factors to evaluate reasonable certainty Lessee has the right to prescribe the lease term Lease rentals on renewal expected to be lower than market rates Lessee is economically compelled to renew Existence of break clauses

39 Evaluation of certain components for inclusion in MLP Security Deposit to include if refundable at the end of the lease term if substantial to distort the economics of the lease then exclude Variable rentals generally to exclude Rent reviews to include only if fixed at inception based on time Maintenance and administration cost exclude since reimbursed to the lessor

40 Accounting and Disclosures by Lessee s- Finance Leases Initial Recognition recognition of leased asset and leased obligation in BS at lower of fair value or PV of MLP PV of MLP Interest rate implicit in the lease Finance charge= Total MLP- recorded outstanding liability Subsequent Recognition Allocation of finance charges apportionment of rental payment between finance charge and reduction of lease obligation- Actuarial Method; sum of digits method or straight line method

41 Accounting and Disclosures by Lessee s- Finance Leases Disclosures Net carrying amount Reconciliation between the total future MLPs and their PV (other than for SMCs) Total future MLPs and their present value for certain future periods (other than for SMCs) Contingent rents recognised as an expense Sub lease payments received General description of significant leasing arrangements (other than for SMCs) Disclosures as per AS-6

42 Accounting and Disclosures by Lessee s- Operating Leases Rentals to be charged off as expense on a straight line basis over the lease term Vacating of leased property onerous contract under AS-29? Lease payments increasing by a fixed % during the lease term- straight line basis or other systematic basis representing the time pattern of the user s benefit

43 Accounting and Disclosures by Lessee s- Operating Leases Disclosures Total future MLPs under non-cancellable leases for certain future periods on cash basis (other than for SMCs) Total future sub-lease payments expected to be received on non-cancellable leases Expenses recognised contingent rents and others General description of significant leasing arrangements (other than for SMCs)

44 Accounting and Disclosures by Lessor- Finance Lease Initial measurement Show receivable Net investment in the lease Net Investment in the lease = Gross investment in the lease Unearned Income Gross investment in lease = MLPs + Unguaranteed residual value Unearned finance income difference between gross investment and PV of MLP and Unguaranteed residual value at the interest rate implicit in the lease

45 Accounting and Disclosures by Lessor- Finance Lease Initial direct cost expense immediately or allocate against finance income over the lease term(general marketing and administration overheads to be excluded) Subsequent measurement- allocation of the rentals between finance income and repayment of receivable at a constant periodic rate of return on net investment

46 Accounting and Disclosures by Lessor- Finance Lease Disclosures Reconciliation between the total gross investment in the lease as at the BS date and the PV of the MLP (other than for SMCs) total gross investment in the lease as at the BS date and the PV of the MLP for future periods (other than for SMCs) Unearned finance income; unguaranteed residual value and accumulated provision for uncollectible MLPs Contingent rents recognised General description of significant leasing agreements (other than for SMCs) Accounting policy for initial direct costs

47 Accounting and Disclosures by Lessor- Operating Lease Fixed assets Lease income on straight line basis over the lease term Cost including depreciation to be charged off Initial direct cost expense immediately or allocate against finance income over the lease term(general marketing and administration overheads to be excluded) Depreciation in accordance with the normal policy

48 Accounting and Disclosures by Lessor- Operating Lease Disclosures Disclosures as per AS-10, AS-6 and AS-28 for each class of assets Total future MLPs under non-cancellable leases for certain future periods on cash basis (other than for SMCs) Contingent rents recognised as income General description of significant leasing arrangements (other than for SMCs) Accounting policy for initial direct costs

49 Questions????

50 AS-26 INTANGIBLE ASSETS ICAI BKC 9 TH August, 2014 Zubin F. Billimoria 1

51 Contents AS-26 The Standard addresses the following aspects: Effective Date and Applicability Objective and Scope Definitions Recognition and Measurement Impairment Disclosures 2

52 Applicability, superseding and objective AS-26 The standard is already mandatory for all enterprises (accounting periods commencing on or after ) When promulgated it replaced AS 8 (R&D), AS 6 (Depreciation) with respect to amortisation of intangible assets, & AS 10 (Fixed Assets) paras , 37 & 38 Objectives Prescribes accounting for intangible assets not dealt with in another standard Requires that intangible assets can only be recognised if certain criteria are met Specifies measurement and disclosure of the intangible assets recognised 3

53 Exclusions AS-26 AS 26 does not apply to Intangible assets covered by another standard Intangible assets held for sale: AS 2, AS 7; Deferred tax: AS 22; Leases: AS 19; Goodwill on amalgamation: AS 14; Goodwill on consolidation: AS 21 Financial assets Cash, contractual right to receive cash or another financial asset, contractual right to exchange financial instruments under potentially favourable conditions, or ownership interest in another enterprise Extractive industries Insurance contracts with policyholders Expenditure in respect of termination benefits (per 2004 limited revision) Eg VRS Other items of specialised accounting Discount/premium and ancillary costs relating to borrowings, share issue expenses, discount allowed on the issue of shares 4

54 Examples of assets to which AS 26 applies AS-26 Research and development expenditure Rights under licensing agreements for motion pictures, video recordings, plays, patents, trademarks, copyrights, intellectual property.. Intangible assets held under finance lease Computer software, motion picture films Customer lists, franchises, customer loyalty, market share, marketing rights Import licenses Goodwill 5

55 What is an intangible asset? 6

56 Definition of intangible asset AS-26 An intangible asset is an identifiable non-monetary asset, without physical substance, held for use in production or supply of goods or services, for rental to others, or for administrative purposes 7

57 Definition of asset AS-26 An asset is a resource Controlled by an enterprise as a result of past events, and From which future economic benefits are expected to flow to the enterprise 8

58 Identifiability AS-26 Must be clearly distinguishable from goodwill It is clearly distinguishable if the asset is separable i.e. if the future economic benefits embodied in the asset can be rented, sold, exchanged, or distributed But separability is not essential to establish identifiability if asset can be identified in some other indirect way E.g. when the intangible asset is acquired with a group of other assets, the transaction may require transfer of legal rights such transfer can help identify the intangible asset E.g. when the intangible asset generates future economic benefits in combination with other assets, if the enterprise can determine the future economic benefits that will flow from that asset, then such determination can help identify the intangible asset 9

59 Control AS-26 Control must be demonstrable An enterprise has control if it has the power to obtain the future economic benefits and also restrict others access to those benefits e.g. through legally enforceable rights But legally enforceable rights are not a necessity if control can be demonstrated in some other way E.g. market knowledge or technical intellectual property may be controlled by a contractual (legal) duty on employees to maintain confidentiality Employee skills (and training) disqualify as intangible asset because there is insufficient control Portfolio of customers, market share, customer loyalty also disqualify as intangible assets for lack of control 10

60 Discussion AS-26 A company employs a highly skilled set of employees, paying them a premium, not otherwise paid in the market. Is the premium paid an intangible asset? A company invests huge amounts in training its staff. Is the training expense incurred an intangible asset? A company acquires a portfolio of loyal customers during an acquisition. Is the price paid for this portfolio an intangible asset? 11

61 Discussion AS-26 A company has a license to operate a telecom circle. The license is not transferable, saleable or assignable. By itself the license is of no use, unless combined with other assets. Does this license qualify as an intangible asset? 12

62 Discussion AS-26 Whether premium paid by a company to acquire a 99 year lease for a premises is an intangible asset? A company was granted the right by Highway Authority to build a highway under the BOT scheme. Is this right an intangible asset? 13

63 Future economic benefits AS-26 An asset is a resource from which future economic benefits are expected to flow to the enterprise These may be of two types The intangible asset may generate future revenue The intangible asset may reduce future expenses 14

64 Recognition and initial measurement 15

65 Recognition and measurement criteria AS-26 An intangible asset (as defined) is recognised if and only if It is probable that the future economic benefits attributable to it will flow to the enterprise, and The cost of the asset can be measured reliably Probability should be assessed using reasonable and supportable assumptions that favourable economic conditions will exist over the asset s useful life Judgement used to assess probability is based on evidence available at initial recognition An intangible asset is measured initially at cost 16

66 Cost AS-26 Separate acquisition Cost can usually be measured reliably e.g. purchase consideration is in cash or monetary assets Comprises: purchase price including import duties and nonrecoverable taxes ADD directly attributable expense on making asset ready for intended use (e.g. legal fees) LESS trade discounts / rebates deducted in arriving at cost Cost of asset acquired in exchange for shares / securities is its FV, or the FV of the shares / securities whichever is clearer 17

67 Cost AS-26 Acquisition as part of amalgamation Accounted per AS 14 (Amalgamations) consideration allocated to identifiable assets / liabilities at FV FV is based on (a) active market, or (b) most recent similar transaction, or (c) special measurement techniques Item can be intangible asset for transferee, even if it was not an intangible asset for transferor If cost cannot be reliably measured, to treat as goodwill Unless there is active market, cost of an intangible asset cannot create or increase capital reserve 18

68 Cost AS-26 Acquisition by government grant Eg airport landing rights, licence to operate radio/tv stations, import licences/quotas, rights to access restricted resources Cost recognised per AS 12 (Govt Grants) If acquired free of charge or at nominal cost, recorded at nominal value Acquisition by barter Cost recognised per principles laid down in AS 10 (Fixed Assets) 19

69 Internally generated intangible assets AS-26 Internally generated goodwill Not recognised as an asset Internally generated intangible assets addl recognition requirements Classified into research phase and development phase If phase cannot be distinguished expenditure treated as in research phase Research Phase: All costs expensed (Original and planned investigation undertaken to gain new scientific and technical knowledge) 20

70 Internally generated intangible assets AS-26 Development Phase ( Application of research findings or other knowledge for production of new or substantially improved materials, devices, products, processes or systems etc. prior to commencement of commercial production) : Costs can be capitalised subject to ALL the following: Technical feasibility Intention to complete Ability to use/sell How future economic benefits will arise Availability of resources to complete development Ability to measure the expenditure reliably 21

71 Internally generated intangible assets AS-26 Internally generated brands, mastheads, publishing titles, customer lists and the like not capitalised Cost of internally generated asset includes: materials / services, direct personnel cost, direct expenses (eg registration fee), and allocable overheads The following are excluded from components of cost: Selling, administrative and general overhead, Inefficiencies and losses Training expenses for operating the asset Expenditure once written off cannot be reinstated for capitalisation 22

72 Discussion AS-26 A pharmaceutical company develops new molecules which take years of research. It also does backward R&D for existing molecules whose patent is about to expire. Can R&D expenses be capitalised per AS 26? 23

73 Recognition of an expense and Subsequent expenditure 24

74 Recognition of an expense and subsequent expenditure Expenditure on an intangible item to be expensed when accrued unless: It is part of cost that meets recognition criteria It is part of assets acquired on amalgamation but cannot be recognised as an intangible and is included in goodwill Expenditure on research, start-up costs, training costs, advertising and promotion costs, relocating and reorganising costs are always expensed What is once expensed either in interim or final FS, cannot later be capitalised as cost of intangible asset Expenditure incurred subsequent to capitalisation is expensed unless additional future economic benefits are expected, and the expense can be reliably measured and attributed to the intangible very rare Post-recognition, the intangible is carried at cost less accumulated amortisation/impairment loss AS-26 25

75 Discussion AS-26 A company, with a turnover of Rs 100 cr, spent Rs 50 L on an advertising campaign expected to generate sales volumes of Rs 10 cr equally over this and the next year. It charged Rs 25 L to P&L, and deferred the balance Rs 25 L to be set-off against the next year s income. Is this treatment acceptable? 26

76 Measurement subsequent to initial recognition 27

77 Amortisation AS-26 After asset is available for use, it is amortised over its estimated useful life Rebuttable presumption that useful life is < 10 years Where the intangible asset has a legal life, its useful life cannot exceed its legal life unless: the legal rights are renewable, and renewal is virtually certain Amortisation done even if FV of asset increases Amortisation method to reflect consumption pattern of economic benefits (e.g toll roads). If not possible, the straight line method is used Amortisation charge is expensed unless the related economic benefits flow into production of another asset 28

78 Discussion AS-26 A company purchased exclusive right to generate power for 60 years. Cost and demand are expected to be favourable over that period. Should cost of right be amortised over 10 years or 60 yrs? A company bought right to operate a toll bridge for 30 yrs. There is no plan to build alternate route and bridge is expected to be used at least for that period. Should cost of right be amortised over 10 years or 30 yrs? 29

79 Residual value AS-26 Residual value of an intangible asset should be zero unless: There is a third-party commitment to buy the asset at the end of its useful life, or Residual value can be determined by reference to an existing active market, and it is probable that the market will continue to exist at the end of the asset s useful life 30

80 Review of amortisation period and method AS-26 Amortisation period and amortisation method to be reviewed at each year-end If there is change in expected useful life, the amortisation period is accordingly changed If there is change in the pattern of economic benefits, the amortisation method is accordingly changed 31

81 Discussion AS-26 Additional expenditure incurred subsequent to initial recognition extends useful life of an asset from 10 years to 15 years. What is the amortisation period at the end of the 4 th year? 32

82 Impairment 33

83 Impairment AS-26 AS 28 (Impairment) to be applied If impairment is detected in first year after acquisition of an asset in a business combination, the impairment loss is adjusted to goodwill / capital reserve created at acquisition, But if impairment is attributable to an event or circumstances that occurred after acquisition, the adjustment cannot be made to goodwill / capital reserve created at acquisition For assets not yet available for use and assets with useful life > 10 years, recoverable amount is estimated at each year-end and AS 28 applied, even where there is no indication of impairment 34

84 Discussion AS-26 Useful life of an asset was 8 years. Additional expenditure was incurred in the 7 th year to extend useful life by another 4 years. Would annual impairment testing become mandatory even if there is no indication of impairment? If so, from which year? 35

85 Retirements and disposals AS-26 Asset is derecognised when no future economic benefits are expected from its use and subsequent disposal Gain/loss on retirement/disposal are taken to the income statement Retired asset held-for-disposal is carried at its carrying amount on date of retirement, and tested annually for impairment 36

86 Disclosure 37

87 Disclosure AS-26 Disclosures separately for internally generated assets and others: Useful lives or amortisation rates used Amortisation methods used Gross carrying amount and accumulated amortisation (+ impairment losses) at beginning and end Reconciliation of carrying amounts at beginning and end Other disclosures: Reasons why asset is amortised over > 10 yr If an asset is material to the financial statements: its description, carrying amount and remaining amortisation period Existence and carrying amount of asset whose title is restricted and carrying amount of assets that are pledged Commitments for acquisition of intangibles Aggregate amount of R&D expense 38

88 Questions? 39