Illustrative disclosures: IFRS 9 Financial Instruments ? Â· Illustrative disclosures: IFRS 9 Financial Instruments ... IFRS 7 upon adoption of IFRS 9 have not been presented in ... Illustrative disclosures: IFRS 9 Financial

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<ul><li><p>Appendix 1</p><p>Illustrative disclosures: IFRS 9 Financial Instruments</p><p>VALUE IFRS 9 Plc</p><p>The IASB issued the final version of IFRS 9 Financial Instruments in July 2014,which replaces earlier versions of IFRS 9 issued in 2009 and 2010 (classificationand measurement requirements) and 2013 (a new hedge accounting model). It alsoincludes a forward looking expected loss impairment model.</p><p>The mandatory date of application is annual reporting periods beginning on orafter 1 January 2018. The standard can be applied early.</p><p>This document illustrates the types of disclosures that would be required ifVALUE IFRS 9 Plc (the company) had decided to adopt IFRS 9 for itsreporting period ending 31 December 2015. Only those disclosures which areincrementally required as a result of adopting IFRS 9 are illustrated in thispublication. These are contained within the following paragraphs of IFRS 7Financial Instruments Disclosures: 3-5A, 8-12D, 14, 16A, 20-24G, 28-30, 35A-36,42C-42E, 42I-42S, 44Z-44ZA. Disclosure requirements which exist independentlyof the adoption of IFRS 9 including fair value disclosures required by IFRS 13Fair Value Measurement; disclosures about transferred receivables; and offsettingdisclosures as per IFRS 7 are not illustrated as these can be found in our VALUEIFRS Plc publication.</p><p>Note that a separate company VALUE IFRS 9 Plc, which is independent of theVALUE IFRS Plc group has been used for this Appendix in order to illustratedisclosures that would not have been applicable to VALUE IFRS Plc. We haveomitted disclosures that are not relevant to VALUE IFRS 9 Plcs circumstances.</p><p>Disclosures not illustrated</p><p>Depending on individual facts and circumstances, other disclosures may berelevant that are not applicable to VALUE IFRS 9 Plc. Additional disclosurerequirements which are not illustrated are explained in the commentary sectionat the end of this Appendix. References to the relevant commentary areincluded as superscript numbers at the beginning of each section. Thedisclosures in this publication must be read in the context of theassumptions set out below. Different facts and circumstances could result indifferent classifications, measurements and disclosures.</p><p># 2015 PricewaterhouseCoopers LLP. All rights reserved. App1001</p></li><li><p>Assumptions made1-4</p><p>In compiling these illustrative disclosures, we have made the followingassumptions:</p><p>&amp; The company has chosen 1 January 2015 as the date of initial application forthe adoption of the new standard.</p><p>&amp; The company has elected to apply the limited exemption in IFRS 9paragraph 7.2.15 relating to transition for classification and measurementand impairment, and accordingly has not restated comparative periods inthe year of initial application. As a consequence:</p><p>&amp; any adjustments to carrying amounts of financial assets or liabilitiesare recognised at the beginning of the current reporting period, withthe difference recognised in opening retained earnings;</p><p>&amp; financial assets are not reclassified in the balance sheet for thecomparative period;</p><p>&amp; provisions for impairment have not been restated in the comparativeperiod;</p><p>&amp; the transition is a change in accounting policy, and disclosuresrequired by IAS 8 are illustrated;</p><p>&amp; a third balance sheet as at 31 December 2013 is not presented as thereis no impact of restatement on the balance sheet for the year ended31 December 2013;</p><p>&amp; disclosure requirements arising from the consequential amendments toIFRS 7 upon adoption of IFRS 9 have not been presented in relationto the comparative period. To the extent relevant, the financialinstrument disclosures presented in VALUE IFRS Plc for thecomparative period would be presented in respect of thecomparative period;</p><p>&amp; new accounting policies have been disclosed, and references to the oldpolicies included, which are applied to the amounts presented in thecomparative period.</p><p>&amp; Investments in financial assets are classified as either debt or equityinvestments in accordance with IAS 32 Financial Instruments: Presentation.</p><p>&amp; The company adopts the general expected credit loss model for loans tocustomers, debt investments carried at amortised cost and debt investmentscarried at fair value through other comprehensive income.</p><p>&amp; The company has adopted the simplified expected credit loss model for tradereceivables, as permitted by IFRS 9, paragraph 5.5.15.</p><p>&amp; The company applied hedge accounting for forward contracts under IAS 39Financial Instruments: Recognition and Measurement in prior periods. The</p><p># 2015 PricewaterhouseCoopers LLP. All rights reserved.App1002</p><p>Illustrative disclosures: IFRS 9 Financial Instruments</p></li><li><p>company has elected to restate prior periods for the change in fair valuerelating to forward points by:</p><p>&amp; reclassifying the change in fair value relating to forward points fromthe statement of profit or loss to the statement of other comprehensiveincome; and</p><p>&amp; ultimately including the forward points in the initial cost of inventorywhen it is recognised.</p><p>&amp; Only those forward contracts which are outstanding at the prior period endand those for which the related inventory remained on hand at the priorperiod end have a restatement impact. The comparative periods presentedfor the statement of profit and loss, statement of other comprehensiveincome and statement of changes in equity for the year ended 31 December2014 have been restated for the impact of this change in policy. Theretrospective impact on the year ended 31 December 2013 has been reflectedas a reclassification from retained earnings to reserves. There was noinventory on hand at 31 December 2013 for which hedge accounting hadbeen applied.</p><p>Index</p><p>The following notes to the financial statements are affected by the adoption ofIFRS 9 for VALUE IFRS 9 Plc and are included within this document:</p><p>&amp; 7 Financial assets and liabilities</p><p>&amp; 9 Equity</p><p>&amp; 12 Financial risk management</p><p>&amp; 25 Summary of significant accounting policies</p><p>&amp; 26 Change in accounting policies</p><p># 2015 PricewaterhouseCoopers LLP. All rights reserved. App1003</p><p>Illustrative disclosures: IFRS 9 Financial Instruments</p></li><li><p>IAS 1(10)(b),(10A)</p><p>Statement of profit or loss (extract)</p><p>Restated**IAS 1(51)(c),(e)IAS 11(113)</p><p>Notes 2015CU000</p><p>2014CU000</p><p>Continuing operationsIAS1(82)(a) Revenue 51,824 42,350</p><p>Other income 6,956 2,965Other gains/(losses) net (265) 824</p><p>Operating profit 58,515 46,139</p><p>IFRS7(20)(a)(b) Finance income 2,140 912IAS1(82)(b),IFRS7(20)(a)(b)</p><p>Finance costs (7,330) (6,220)</p><p>Finance costs net (5,190) (5,308)</p><p>Profit before income tax 53,325 40,831IAS1(82)(d)IAS12(77)</p><p>Income tax expense (16,675) (11,827)</p><p>Profit from continuing operations 36,650 29,004</p><p>IAS1(10)(b),(10A)</p><p>Statement of comprehensive income (extract)</p><p>Restated**Notes 2015</p><p>CU0002014</p><p>CU000IAS1(81A)(a) Profit for the period 36,650 29,004</p><p>Other comprehensive incomeIAS1(82A)(b) Items that may be reclassified to profit or loss</p><p>Changes in the fair value of debt instrumentsat FVOCI</p><p>7(a) (118) </p><p>Changes in the fair value of debt instruments(available for sale)</p><p>7(c) 65</p><p>Loss reclassified to profit or loss from OCIon sale of equity security classified as AFS</p><p>7(c)* 148</p><p>Income tax relating to these items 35 (64)IAS1(82A)(a) Items that will not be reclassified to profit or</p><p>lossChanges in the fair value of equityinvestments at FVOCI</p><p>7(a) (248) </p><p>Changes in fair value of liabilities designatedat FVPL due to changes in the companysown credit risk</p><p>9(c) 15 </p><p>Deferred gains and losses on cash flowhedges</p><p>12(a) 1,335 825</p><p>Deferred costs of hedging 12(a) 88 77Income tax relating to these items (357) (270)</p><p>IAS1(81A)(b) Other comprehensive income for the period, netof tax 750 781</p><p>IAS1(81A)(c) Total comprehensive income for the period37,400 29,785</p><p>* see our VALUE IFRS Plc publication for this note disclosure.** in accordance with the transitional provisions in IFRS comparative figureshave only been restated with respect to certain aspects of hedge accounting; see note 26 fordetails about changes in accounting policies.</p><p># 2015 PricewaterhouseCoopers LLP. All rights reserved.App1004</p><p>Illustrative disclosures: IFRS 9 Financial Instruments</p></li><li><p>IAS1(10)(a),(54) Balance sheet (extract)</p><p>Restated*IAS1(51)(c),(e)IAS1(113)</p><p>Notes 2015CU000</p><p>2014CU000</p><p>IAS1(60),(66) ASSETSIAS1(60),(66)IFRS7(8)</p><p>Non-current assets</p><p>Financial assets at fair value through othercomprehensive income 7(a) 6,782 Held-to-maturity investments 7(b)** 1,175Available-for-sale financial assets 7(c)** 10,948Loans to customers 7(d) 67,316 53,149Other financial assets at amortised cost 7(e) 3,255 900Financial assets at fair value through profit orloss 7(f) 5,610 1,150Other non-current assets 141,099 139,121</p><p>Total non-current assets 224,062 206,443</p><p>Current assetsLoans to customers 7(d) 24,875 20,000Trade and other receivables 7(d) 18,269 11,583Derivative financial instruments 12(a) 1,901 1,152Other financial assets at fair value throughprofit or loss 7(f) 11,300 10,915Cash and cash equivalents (excluding bankoverdrafts) 7(g) 45,239 24,693Other current assets 23,429 21,490</p><p>Total current assets 125,013 89,833</p><p>IAS1(60),(69) LIABILITIESNon-current liabilitiesConvertible debenture 7(h) 104,715 88,863</p><p>Total non-current liabilities 104,715 88,863</p><p>EQUITYContributed equity 140,942 140,942Other reserves 2,380 2,029Retained earnings 101,038 64,442</p><p>Total equity 244,360 207,413</p><p>* in accordance with the transitional provisions in IFRS comparative figures haveonly been restated with respect to certain aspects of hedge accounting; see note 26 fordetails about changes in accounting policies.** see our VALUE IFRS Plc publication for this note disclosure.</p><p># 2015 PricewaterhouseCoopers LLP. All rights reserved. App1005</p><p>Illustrative disclosures: IFRS 9 Financial Instruments</p></li><li><p>IAS1(10)(c),(106)</p><p>Consolidated statement of changes in equity (extract)</p><p>Attributable to owners of VALUE IFRS 9 Plc</p><p>Notes</p><p>Contributed</p><p>Equity</p><p>CU000</p><p>Other</p><p>reserves</p><p>CU000</p><p>Retained</p><p>earnings</p><p>CU000</p><p>Total</p><p>CU000</p><p>Balance at 31 December 2013 140,942 1,303 35,383 177,628</p><p>Adjustment on adoption of</p><p>IFRS 9 (net of tax) 26(b) 25 (25) </p><p>Restated total equity at</p><p>1 January 2014 140,942 1,328 35,358 177,628</p><p>Profit for the period 29,004 29,004</p><p>Other comprehensive income 781 781</p><p>781qq Total comprehensive income 781 29,004 29,785</p><p>Deferred hedging gains and</p><p>losses and costs of hedging</p><p>transferred to the carrying</p><p>value of inventory purchased</p><p>in the year (80) 80 </p><p>IAS1(106)(d) Balance at 31 December 2014 140,942 2,029 64,442 207,413</p><p>Adjustment on adoption of</p><p>IFRS 9 (net of tax) 26 (60) (142) (202)</p><p>Restated total equity at</p><p>1 January 2015 140,942 1,969 64,300 207,211</p><p>Profit for the period 36,650 36,650</p><p>Other comprehensive income 750 750</p><p>IAS1(106)(a) Total comprehensive income</p><p>for the period 750 36,650 37,400</p><p>IFRS</p><p>Deferred hedging gains and</p><p>losses and costs of hedging</p><p>transferred to the carrying</p><p>value of inventory purchased</p><p>in the year 9(c) (251) (251)</p><p>Transfer of gain on disposal</p><p>of equity investments at</p><p>FVOCI to retained earnings 9(c) (88) 88 </p><p>IAS1(106)(d) Balance at 31 December 2015 140,942 2,380 101,038 244,360</p><p># 2015 PricewaterhouseCoopers LLP. All rights reserved.App1006</p><p>Illustrative disclosures: IFRS 9 Financial Instruments</p></li><li><p>7 Financial assets and financial liabilities (extracts)10</p><p>Not mandatory This note provides information about the companys financial instruments,including:</p><p>&amp; an overview of all financial instruments held by the company</p><p>&amp; specific information about each type of financial instrument</p><p>&amp; accounting policies</p><p>&amp; information about determining the fair value of the instruments, includingjudgements and estimation uncertainty involved [see note 7(h) in ourVALUE IFRS Plc publication].</p><p>Not mandatory The company holds the following financial instruments:</p><p>2015 2014</p><p>Notes</p><p>Non-</p><p>current</p><p>CU000</p><p>Current</p><p>CU000</p><p>Total</p><p>CU000</p><p>Non-</p><p>current</p><p>CU000</p><p>Current</p><p>CU000</p><p>Total</p><p>CU000</p><p>Financial assets at fair value</p><p>through OCI</p><p>Equity investments listed 4,350 4,350 </p><p>Equity investments unlisted 1,150 1,150 </p><p>Debt securities listed 685 685 </p><p>Debt securities unlisted 597 597 </p><p>Total financial assets</p><p>FVOCI 7(a) 6,782 6,782 </p><p>Held-to-maturity</p><p>investments 7(b) 1,175 1,175</p><p>Available-for-sale financial</p><p>assets 7(c) 10,948 10,948</p><p>Loans to customers 68,490 25,000 93,490 53,989 20,000 73,989</p><p>Provision for impairment</p><p>of loans to customers (1,174) (125) (1,299) (840) (840)</p><p>7(d) 67,316 24,875 92,191 53,149 20,000 73,149</p><p>Trade receivables 17,855 17,855 11,167 11,167</p><p>Provision for impairment</p><p>of receivables (525) (525) (300) (300)</p><p>7(d) 17,330 17,330 10,867 10,867</p><p>Other financial assets at</p><p>amortised cost</p><p>Loans to related parties 1,300 1,300 700 700</p><p>Other receivables 625 939 1,564 200 716 916</p><p>Debenture assets 750 750 </p><p>Listed corporate bonds 150 150 </p><p>Zero coupon bonds 460 460 </p><p>Impairment provision for</p><p>debt investments at</p><p>amortised cost (30) (30) </p><p>Total other financial assets</p><p>at amortised cost 7(e) 3,255 939 4,194 900 716 1,616</p><p>Total financial assets at</p><p>amortised cost 70,571 43,144 113,715 54,049 31,583 85,632</p><p># 2015 PricewaterhouseCoopers LLP. All rights reserved. App1007</p><p>Illustrative disclosures: IFRS 9 Financial Instruments</p></li><li><p>Derivative financial</p><p>instruments</p><p>12(a) 1,901 1,901 1,152 1,152</p><p>Financial assets at fair value</p><p>through profit or loss</p><p>Money market fund 3,220 3,220 </p><p>Preference shares (equity) 1,100 1,100 </p><p>US listed equity securities 5,190 5,190 4,035 4,035</p><p>Oneland listed equity</p><p>securities 6,110 6,110 6,880 6,880</p><p>Contingent consideration 1,290 1,290 1,150 1,150</p><p>Total financial assets at</p><p>FVPL 7(f) 5,610 11,300 16,910 1,150 10,915 12,065</p><p>Cash and cash equivalents 7(g) 45,239 45,239 24,693 24,693</p><p>Financial liabilities</p><p>Convertible debentures 7(h) 104,715 104,715 88,863 88,863</p><p>The companys financial instruments resulted in the following income, expensesand gains and losses recognised in the statement of profit or loss:</p><p>2015 2014Financial assets Notes CU000 CU000</p><p>IFRS7(11A)(a)</p><p>Dividends from equity investments held atFVOCI 7(a) 1,605 Related to investments derecognised duringthe period 963 Related to investments held at the end of thereporting period 642 </p><p>IAS39(55)(b) Dividends from equity investments held at AFS 7(a) 684IFRS7(20)(a)(viii)</p><p>Interest from debt investments held at FVOCI 7(a) 2,140 </p><p>IAS39(55)(b) Interest from debt investments held at AFS 7(a) 912Loss reclassified from OCI to profit or loss onsale of equity investments classified as availablefor sale 7(c)* (148)Hedging gains/losses 12(a) 4 2Hedge ineffectiveness 4 2</p><p>IFRS 7(20)(a)(i)</p><p>Fair value gains on equity investments at FVPL7(f) 620 120</p><p>IFRS 7(20)(a)(i)</p><p>Fair value gains on debt instruments at FVPL 7(f) 385 180</p><p>IFRS7(20)(a)(vi)</p><p>Impairment expense recognised on loans tocustomers 12(b) (32) (20)</p><p>IFRS7(20)(a)(vi)</p><p>Impairment expense recognised on tradereceivables 12(b) (180) (65)</p><p>IFRS7(20)(a)(iv)</p><p>Impairment expense recognised on debtinvestments at amortised cost 12(b) (23) (3)</p><p>Total 4,519 302</p><p>* see our VALUE IFRS Plc publication for this note disclosure.</p><p># 2015 PricewaterhouseCoopers LLP. All rights reserved.App1008</p><p>Illustrative disclosures: IFRS 9 Financial Instruments</p></li><li><p>(a...</p></li></ul>


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