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I F i ir s t ., e d i t io n 2 [ j [] '7R i f l lh e d it io n N lo v e m b e r 2m 0I S 8 ! N 9780 75117 8895 2 ( P r , e v io U is e d i i ti 'c m 9 '780 7517 6749! 0 )

B , r i~ i s lh l L . il b l ra l r yC a t a l lo g l U l i in g ~ i f 1 l ~ ' t J 'b l l i: o a U o n I D a t aA c a ~ a J o g u e r e c o rd fo :r t lh is b o o k is a v a li l la b le f r o m th e B lr i t i s lh I l ib ra lr yIP u b l is h o o b y

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cm r I le a r n in g i m a te ria ls ! p u b lis h o o b y IB P IP I le a r n i~ 'g M e d ia L td ,a re p rin ~ o o o n p a p e r s o u rc e d f r o m s U ls ta i'm l l ib lie , m a n a g e d f o m s ts .

A n o u r r ig h ts r e s e r v e d " N io p a lr 1 o f t h i i s p u b l ic a t i : o ~ m a y b e r e p r o d u o o o , s tm e d in a r e t r ie v a l ls y s te rn o :r im n sm i iU e d , i in a n [Y k m m o r by a n [Y m e e n s , e le c ~ ro :n iQ J 'm e e h a n ie a l, p h n t o c o p y in g ,r e o o m in g o r . o th e r w is e ! w ~ h ( d t h e p rim w r i i t t r e ln p e rm i is s io l1 o O f B IP P L e a lm i in g lM o o i ia ltd"

eB P P le a r n in :g M e d ia L t d l20U )

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Contems

W e lco me , to B P P le arn in g M e dia 's ACCA lP as sc ards fo r P ap er F7 Fina .~c i ia lRepor t i ing {I n ~ ematio ~ a ll a n d U lKSt ream) .iii l~ey roous om YOUI ! ' exam and save you time",iii l~ ey in om pa :ra te o iia gmmsto k ick s ta rt Y OU llrmemor y .iii l~ e yfo illo w tlh e o v :e ra lills tm c tu ire o f t~ e lBP lP le a rn iin g M edia S tU idy le x ts , b U iltB IPP L e am in g l M edia .'s A O C AP a ss ca rds a l~ e no t ju st a c en de rs ed b oo k" lE a .c hmu d h a s. b ee n s ep amte liy die sii!g ne dlfo r c le a r pm se n lta ~ io n .

lo pics e re se R co nta iin ed a nd ca n b e g ra sp ed v isu allliy "iii ACGA lP a ss ca K lls am s tilillJ us t th e Iri'g ht s lim fo r lP o c~ ets ~,b rie fc as es e n d b a :g iS .iii A CGA 'a ss ca lro s s ho U ild b e u se d in c on ju l1 clile :n w i~ ~ t~ e re viis iio :np la n in tlh efro :n t p ag 'e s o f t~ e U .llh e p la nidemti i~iesk ey q ue stio ns fo :r y ou to hy in ~h e k itH u n tlh ro u gh th e P a ss ca rds a s o f[e n a s y ou c an du rin gl y ou rfin a ll r 'Em Jis io ne rile d., R e f:e :rto th e r,e vis io n p la n in1 Jh ep ra ctic e a nd m v is io n k it to s ee w lh io h q ue siiio :n s to p ra otiis e. T h e da y b efo re ~ h e e x a lm ~ ,~ ryto g o thm ug h th ePa s s ca lr ds a g la lln ~ o l!Jwill tlh en b e w e 1 11 1n yo ur w ay to pass ing l yo ur exam s.

(lo od Iu eld[ P a g e (iii)

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1234i s618910111213

T h e c o :n c e p t l ! . i a l fm m e w m kT h e r e g lJ l l , a to r y fm m e w n r kP r e s e n t a t io n o f p u b l is lh e d f i n a ll c ii a ls t a r t e m e n t sN o n - c t ll r U ' lE d a s s e t sI In t ~ m g i b l ie a s s e t sI In n l p a i im e n t o . f a s s e t sI R e p o r t in g l f il '1 ! 8 J m l ia l p e r lo r n n ! a m leI In t ro d u : c ti i o l l t o g r o u p sT h e c o n s o l id a te d s ta te m e l n t o f f i n a rn c i i a llp o s a i o l lT h e c o n s o lid a t e d s t a te m e ln t o fc o m p r e h e ln s ii v e in o o m eA c o o u n ti n g f o r a s s D c ia t : e sI Ir w e n t D : ri ie s a n d c O l " ls h i u c : t i o n c o n t r n d sI P r o v i is i o l lS , c o n t i n g i 9 l n t I li i a h i li i ti ie s a n dc O l " ll ti in : g e n ta s s e t s

P a . g i e191319273341496386717379

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F i n a r l ' 1 c i ia l la s s e t s a n d I l i i a b i l i i t i ie sT .h : e l ie ~ a l v e rs t l . ~ t ~ e c o n nm e r d a lV i le w o f a c c o lm t l l l n gI l . e a s i i n : gA c o o u n tin g l f o r t a x a ti io nE a n ii n g s p e r s h a r eA l l a . I y . s i i n . u a n d in t e ~ p : r e t i l " llg f i in a n c i a ls t : a t e m e n l sI l im i t a t iD : n s o f f ~ i n a n c ia l l s ta t > e lm e n t s a n di in t e r p r ,e t ' a l t ic m t e c ~ n i q l J l e sS t a t : e m 9 ln ts o f c a s h n o w sA I ~ e r m I l l t i~ e m o d e l s and p m c t i o e sI N o t - f o r - p m f i i t . and p U I ~ l i i cs e c t o r e l l t i t ie s

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1 : The c o nc e p tu a l framewo rk

co nce pfua l fram ew o rkGA A POb je ctiv es : a ss u mptio n sQ u a l l i ~ S J t iv e c h a r a c t e r i 's t r i c s

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Q I J f f l i i a t i v e I E ! e m e n t s

Concep t ua l f ra me w ork - a s ta te me nt o f g en era ~ly a cc ep te d th eo re tic a l p rin cip le s w h ic h fo rm th efram e o f re fe re n c e fe r fin a n cia ~ r,e p o rtin g l.

II Avo i id is 'p a tdhwo rk ' o r f iir e fi gh tii n l9 app roachII le ss open to maicisr1f1l f po' l l i~i~. l /e 'xtennalpressureII S om e standams may oo:ncenimte o n t~ e

i'n o o :me s ta temen t! o ~h er s on th e Iba lanoe shee~

II Finan.ci ia l s ta te rnen ls a re ill1 ~en .oed fo : ra va ri ie tyQ i f f u s er s - s in g llie fr amn :ewo rkm ay no t sua a ll

II M a y need d if~ e r,e rn ts ta nda rd s fo r d ii~ f:e re n tpu rposes

II Prepar in .g l a n d i imp leme ln ti ng l s ta r noa ros i s s ti lllo i if ili c lU l tw i ii~ a f ramework

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Q I J a l l i i a t i v e

----------------------------------------------------------------------GA AP ' s i'Q ln if ie s a ll th e r u l e s , fro m w ha te ve r s eu rce , w h ic h g m 1 e r n accoun t i ng .

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O t h e r c o u n tr ie s ' s ta tu to r y r e q u i r e m e n ts

li n m a r n y o o u n tr i ie s , l l i l k e 1 1 h eU K , G A A P d o e s n o t h a ve a n y s ta tu tm y o r r , e , g lU l a ! ~ o r ya L U l t~ o r it y o r d e f i n i i t l o : n . . ,G A A P i isa d y n a m i io concep t ,

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O b j e c t i v e s , o f f i n a n l c i a l s t a l e m e n eS ta teme nt o ,f f i n a nc ia l p o sitio n

S ta te me nt o f c om p re he ns iv e in com eS ta te me nt o f ca sh flb ws

.Aoc~ua ls U n d e r l y i n g a s s U l m p t i o n s

Q I J f f l i i a t i v e I E ! e m e n t s

S ta te m e nt ,o f o omp re h en siv e in comeS ta te m e nt ,o f c as h flo w sS ta te m en t o f ch an ge s in e qu iilyN b te s to th e ~ in an cia l s ta tem en tsD i re c to rs ' r e po rt

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~----------~~,~~I _I I IIR e le vaJ l0B B e liiab ilityI I ~I I ~I IM a~e ri'a lliity F a ith fu ll S ubs ta nce ~ !B ~ tra lliity I P irude~oB COn rllp l'B t.e neo ore p re s en ta tio n o V ie rfo rm

I P ' F I ' E S I E N r f A l I I O N I~~~~~~~~~~~~~~~~

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A oo !~ ts IL ia b \litie s+ IEqui ty

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R e c o g n i t i o n The item ha s a cos t o rya lue~ha t Ga i n b e m ea su re dw a h relli iabili i t.y

P ro b ab ility ;;; a de g re e o ~ u n c erta in ty th a t th e ~ utu re e c o nom ic b e n efits wil l ~ Io w to o rfre rn th e e n tilty .

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M e a s u r e m e l ti H i i s t ow i c c o s t( acqu i s i i t i i o n v a l l l H ~ )

ou..r e. I n .h . ) . o . s t ( amOU . l n l . t . n . ~ - , 1 . HOW. :S . . . . ~.O. ' . U l d. i 8 J . - . , " i t ema c q u i r e d G LU ln r e n ~ ly ) ~ be v a l l u e d ?

R e a l lis a ! b le { s e t t I I B tm e n t )v a l l l . ~ , e ( a m o u n t se l l i i n gin Gl l I l r r , e rn t s t a t e )

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P rQ i~ its e arn ed iff th e fin an cia l a mo un t o f th e, n eta sse ts a t th e e nd o ff a p erio d e xce edls th e fin an cia lam ou nt o f ne t a sse ts a t th e b eg inn in g o ff a pe rioda fte r e xc lu din g a ny dis trib u~ io n s to , a ndc on trib u tio ns from , o w ne rs du rin gl p e jic d,Can b e m ea su re d! in e ith er n om in al m on eta ry u nitso f u n iits O 'fc on sta n t p u r oh a si n g p o we r.

Q I J f f l i i a t i v e I E ! e m e n t s

P ro flit is e a rn e d iif th e p h ys ic a l p ro du c tii\fe c a pa c ity(o r o pe ra tin g ca pac ity ) o f th e en tity a t th e e nd o f th ep o e riio d e xc ee ds th e p hy sic al p ro du ctive c ap ac ity a tth e b eg in nin g o ff th e p erio d, a fte r e xc lu din gl a nyd i stri b u tio ns to ' a n d c on tri b u tio n s from , o w ne rsdur iin g th e pe r i od T his co nce pt re qu ire s th e cu rre ntc o st b a sis o ,f me a su re n n en tt.

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2 : The reg ula to ry fram ew ork

lASSIFRSC r i it i' c : is m s

~ llil a lre ad y h alv e c ov ere d th e JASS' in you r earl ierstudies.

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l A s e

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I F i in l t l ln c ia l r e p o l i i in g i i s g o v e m e d on a w o r ld w id e bas i s b y lh e I n te rn a .i io :n a l A c c o u n tin g l S t a n d a rd ls B o a rd .lD e c is io n s o n a a o cm n t in g l p r i in c ip il , e s a m m a d e b y t h e B o a r d a n d i is s u e d in t h e fo rm o f I I IF R S , ( I. A S ) ..

M ay 2000 - 10Soo gave'qual i f ied b a c k i ng to 3 0 I I I A S . EC d i i r e c t i t v e : fm m 2005c on s olida te d a cc ou n ts ,o flis te d e ntitie s m u st u se lA S

(I F R S ) . .

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T he lA SS , issue d 41 ~A Ses . S ta~da rrls a re now ealledlFR S and 8 IF IR SISha~e been issued so far" The ,p ro ce du re fo r i'ss ui~ g an IIF RS cs n b e su rn ma ris edl a sfo lillo ws .

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D tiln in g th e e arliy sta Jg es o f a IP :ru jo cl, IA S IB m a y e sta Jb lis lh a n A dv iis ory C 'om lm iiltte e ~o gliv e a dv io e o nis su e s. a lris iin g iin th e p ro ~ le ct G o :n su lta ti'o :n w iit~ t~ e A div is o:ry C omm itte e a nd tie S ta n dams Adv is o:ryG o un oil o ccms th nn JIQ lh cd th e p ro je ct,lA S S , m ay de ~e llo p a nd p ub lis lh Im so us s~ on IP ap e:rs ,fo r p ub llic c ommen t.F o!llb wlin g~ he re ce ip t a nd re vie w o f c ommen t s , ~ AS B w ou ld de ve lbp , a nd p ub iiis ih an IE X po su re D ra ft: fo rpub l li :c comm ent .F o !llb w lin g~ he r,B c eip t a nd re vie w o f oommen t s , th e I IASBwou l ld is sue a f in r allllli ltemH ia~ io lila ~F inanc iia l1F! 'eiPorU l ilg Stal i ldard.

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C r i t i c i s m sI R i g i d i t y I C l ri ii li c i ,sm sII la c k o f f le x i ib i il l i i i y in a P 1 p i l y l i ~ gru lesII R o o e l n t s 1 a n d i a : r d s e g l lA . S 3 i 9 ' v e ryd e ~ a i le d l a n d p : r e s c r ip i i i v eII R u l ! e s may n o t b e a p p lic a b l le i r l a li l l

c i i r c u m s i a r l c e s

1 1 1 1 I B e n c hm a m k t r e a tm e n t a n d a il l io w e da l 1 e r n a t i ' v e s . T h e s e a r i e l D e i i n ge l i im i n a i e d . . ,

1 1 1 1 S ta ln d a rd s m a y b e , s u b je c t t oI l o b o } t i l n g o r g o v e rn m e n t p re s s u re

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3,: P re s en ta tlo n o f' p ub n sh e d fln a nc la ls ta tements

S ta te nnen t o f fln a n c ia l p o s lto nS ta te n n en t o f c ompre h ells iv e in o omeC h allg es in e qu i~o th er n n atte rs

.A li o f you rs f,w :: Jies f 'O rPape r F7 will b e o on ce rn ed w ith, t h e accounts ( ) I f lim i ted lia b ilit y c ( ).mpan i~~ , so it isi m p o n a l 1 ' , t that y o u ,a re fam ilia l' w ith th e lAS 1 t 'O,rmats.

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Staltement i Q ; f S ta te me nt o J

, s t a t e m e n t D l f c h i a n l g e s i n l e q U l i t y ( l i A S 1 1 r e v i s e d )Share Reifained R e v a r u a f i o , l ! } N O f N ) Q r # r o J l i n g T o t a Jc a p # a J ~mings surp lus T o t a J i n f res f equi ly$1000 $ '000 $ '000 $ '000 :$ '000 $"000

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S ta te m e n t o f

l A S 1 1

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T he s ta nd1 ard sU lQ iQ ,e stsh at a ll s ets o f m ln aJ n,c i'a llm a temenmsmou ld a pp ly th e dis cllo s ulre s. A n e n iiity mu st,e xp la in a ll de p artu re s a n d! ~ r,e l!e v,('.d~w lh yby fo i llow i~g IASJ lllFRS fa iir p r, eS !e ln ta ti cm is no t a ch~ ,eved"

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3 : IP m o om a tio n 1 1 o f p u b lis h e d f in a J r1 I c ia l s ' t a te r n em s

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4 : N on -cu rren t a sse ts

lAS 16lA S 20lA S 40lA S 23

lA S 1 6 s 'h ou id b e tam iJ ia r t o ) "DU . fmm ) "DU l ' ear l ierstu die s. lA S 2 0, ,o n g . o v e , r n m e n t grants, is as tra igh .t fo rwam s tanda. rd and y o u should h a l v e te wp. rob Iemswi th . i i .Borrowing oos ts are ' rur re red .b y lA S 23 (~ev ised)

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I I I A S 1,6 Pfoper~ plant and , e q u i p m e n t Gove r n al i l laspeots ( ) i f f a .c co un tim g fo r th es e item s, w~ iiG ~ a re m oo t talngibl,e'n om -c u rr en t a s se ts .I P r o b a J b l e t h a i f u t l U w , eeoon.o :mic bene i i tsa ss o cia te d w iit~ ~ h e a ss e tswiilill low t O o t~ e I~dity.

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S u b s e q u e n t e x p e n d i t U l r eS ame c ri~ eriia a s in ~ia l c os ts . O ~ he rw is e do n ot c ap ita lis e b llt. G ~ tn gi~ to iin oo :m e s ta tBm en t.S u b s e q u e n t m e a s u r e m e n t

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II I R e v a J : u e s ll l~ W ir i9 '~ l y r e g U l I~ u l :ys o c 1 : l n y i n g amou rn t n o t ma f f i B I J ' ~iaJllydifferent f H l m l f a i r value

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I I I A S 2 0 .A!Cl{ lQunlingOf gD v ernmen t gmnts an d disclosure o f gam,mme.n tass is tanoo r e q tu l in ~ J s ~ e f b i l i r o w i n ga o c e u m t in g t r , e a . tm e m t

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B e c o g n is e o n l iy w h e m r e a s o n a b le a s s t u lm n .o o i ~ a J t a Jn yo o :n d i~ io r J :sw i l i lb e m e t a n .d m o n ie s r , o o e i iv e d i .

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l A S 2 , 3 B o r r o w i n l g c o , s t sT h e s t a rn a C lJ r od l 8 C l J lsw i i t ~ I b o : r ro w i in g cos t s f o r s e l if . .o o : n s t i ir t lc t e d a s s e t s , I n c l u d e d in b O fH ) W il r n g c o s t sIn te re s t a n d o th e r c os ts in cu rre d b y a n e ntity in c on ne ctio n w ithth e b o rro w in g l o f fu n ds .

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I In te re s t o n b a n k o \ l i8 i r d r a !W t sa n d s h a ria n d l ic m g tenn b o m r o w i i n : g s

.A m o r ~ is a t io n , o f d i: s o o u n t s o r p r e m iu m sr e la tedtn b o m n w i r n g s . A m o r ~ is a t io n o f a r n c i i l i l l a r y cos t s i n c l U l l Y ' o ow i t h t h e a rm r n g e n n e rn t . o f f b o r r o w in g :s I F i' r n C lJ n c eh a rg e s in r e sp e c t ( ) i f f i i r n C l J n o ele a se s u n de r lA S . ~ 7 IE x c lh ~ lJ n ig l8 iiU e r e n o e s as f a r a s t h e ya re e n C l J d jU i s tm e n tt o in ~ e re s t c o s ts

C C lJ p ita l l is a tib :n is m a ln d a to : r y n ~ h e c o s ts a re ( I i ' r e c ti l y a H , r ib t l t a b ile t o th e a c q l i i i s ii t lo :n ~ , c o n s tm c t i io n o r p r o d u :c li io rn o f fa q U i a ll ii fy i il i lg a s s e t

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s : In ta ng ib le a ss ets

lA S 38G o o d w W I

lA S ';38a im s to p re sC fib e th e a c c o u n t i n g tre atment fo ri n t a n g i b l e ' assets n o [ d ea lt w ith u nd er a n o t h e r lAS. T h e 'standa.rd d e a l s w ith th e' c r i t e , f r a ' s x recogni fio .n andm e , a s , u r e m e n tGoodwi l l t e a oont ro ve rs ia l a r e ,a . f t oom~su p a ga in inconneci ionwi ih g l iOUp ,accoun. ts .

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A n in ta ng ib le a ss et i,s a n ide n~ im ia ble n en -m en eta ry a ss et w ~ ho ut p hy siic aJ ls ub sta nc e held fo r use in thepro duc tio n o r supp liy o f go ods o r se rv ices ! fo r ren ta l to o the rs ! o r fo r adm in is tra tive pu rpo se s.

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~ N T E IRN A L L Y ,8 E N IE R A T IE D I IN I A J N ,a ~ IB lE A S S E T S~.I~. ~~~~~~~~~I II~~~~~~~~., tResear6~ phase Deve lf o jpmen t pbase+ , f ~ : ~~I ~

I R eoog niis e a s IE l'X pB ln s ewh e ~ i~ clu ne d Cap ita lis e a ndiamo rti:S !8 iiffo illo w i~ g o o :n da io n sa re me t: R e co gn is e a s: e xp en sew ~ e n iin o urre dII P roba ib le fu ltl! J lre eoor lo :m ic bene i itsII I I "lI te l n tion~o comlP ile te and U lS!e lse llII R e so ure es a de qu at,e to Gomp le~e a rld I!J s eJ s ellII A . b i ll ii iy to . I !JseJsel l..Ieclhn ica l feas i ib i ll ii t. yII E xp endli'tu ir e c a n b e r elliia b ly mea su redI lln tema llly gene ra~ed baJnds~mas tlh eads ", pU I~ lii s~ i ingm les~ cus tome r li sts and s im li ila r ii te lms s lh ou ld no t be

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S u b s e q u e n t i e x p e n d i t u r eSu b se q ue n t e xp e ndiiID u remu st m e et th e o rig in a lre cogn it io n c~ ite ria to be added to the cos t o f thein ta n g ib l e a s s et.

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S u b s e q u e n m r e m e a s u r e m e n tC o sl m o d el: c o st le s s a r oum ru lla tte d amo r tis a ID lo nandim p a irm e n t lo s se s ,Re va lu atjo n mode l: re va lu ed m ou nt le ss . s u bs eq ue nta cc um ula te d amo rfis ato n e nd im pa irm en t lo ss es .R ev alu ed amo un t iis fa ir ve lu e a t da te ,o f r ev alu atio nb y re fe re nc e to a n a ctiv e m ark et.A lii o the r asse ts in the sam e class shouk l b e revaluedu nlle ss th ere is n o a ctirv e m a rke t fo r th em r, in w hic hca se the co st m ode ll va lu e sh ou lk :i be us ed fo r th oseasse ts .Reva l ua fons so tha t the ca rry ing va l ue does no t o ffe rm a te ria lly fmm fa ir v alu e.

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I m p , a i r m e m t l o s s e sThe r ec o ve ra b lie amoun t o f t~ e asse t should b e de te rrW1 liin :~ dt le as t a t e ac h fiin am :ia l y ea r e nd a nda ~yim p aiirm e nt lo ss s lh o ulid b e aCCQunt,o ofo r iin aeeo rdance w i't~ lAS 3ftI D i s c l o s u r e s ,Need to maJkethe fo llowin ,g l d li i,sc liosures.II Di s tin gu is lh be tween ii~ te rnalliy gen :e 'r a ted andl o t~e lr itn tan :g~b leasse tsII Use ful lliiv e so ff a sse ts an ,d [amc lr tiis a tio n m ,B ,~hod! sII ,B ro ss a an yin g l amou nt a n d amumu lla te dl amo rtis atiio n a t s ta rt a nd e nd o f f [periodII Wh ere th eamo riiis atio n is , i nduded in th e s ta teme~ i o n o o :m p r,e lh en rs iiv encomeII A Ir :eoo,~c i ll ii a ti ionf o p erliin g b ala n oe to c lo sir ng b ala no eII I f r es e a rc h and deve l!opn f1 le~ t' r~ow r nuch wa s c ~a r'g ie d a s e xp en se

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G o oo wilil c an b e p um ha Sie d o r be a oq uiire d a s p art o f a b us in es s c om oiin ra tiio n.lln e ith er c ase , th e tr ea tmen t iscap ita lliis a tio : n a t c o s t o r fa i r v a llu ,e u nde r I F IRS3 .N e g a t i v e g o o d W i l lA ris es w h en a cq uire r's in te re st iin ide ntifia ble n eta ss ets e 'xoo ods th e cos t o f th e oo mb in ati on . R es u ltsf r om e r ro rs o r a barga i nReassess cost .o f c o m b in atio n a nd a ss ets .R eco gn is e a ny re ma in ing g oo dw ill iim me dia te ly iinprof i t o r lo ss " th at is iin th e iin co me s ta te me nt

G o o d w i l lFuture e c onom i c b en efits a ris in gl fro m a ss ets th ata re n o t c ap a ble .o f b e iin g iin div idu a lly ide n tilf ie d a n ds e pa ra te ly r ec og n is e dR ecogn ise as an asse t and m easure a t co s tle xce sso f f p urch as e co st a v e r a c q u i red iin te re s tD o n o t amort i seT es t a t le as t annua lly fo r iim pa irm en t (lA S 36)

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6 1 : Impa i rmen t o f' assets

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The a rn o f ~ AS 3 6 . lmp~irmfmrj ( J f a ss ets iis t o em ;IU If7 e th a.t s s ets e ne e an ie d in tlh efin am c i:a Jls ta temem ts a t n omo re tlh a n th e iir I r,e c ov e ra lb l~ e ,a rmo llln if.N lo te t~ ~ t liAS 36 doe s , mo t a pp ly to nO rl,"c u rr en t in v es tme ln ts h e !df or s a lew lh ic h a re o ov er ed b y I FRS 5.

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I PV o f e s tiima te d fU ltu rr ec a sh flowse xp ede d to a !riis e fro m fh e co:nt inui 'm9use o f am aS S!e tend its disposa l a t theend ()i f i~ s u s e fu l I liife

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C a l c u l a t i o n o l f v a l u e i n u s e

II lDiIfOC iliyaIti~1u ~a lb!eII A n a pp ro pria Ite p ro po rtio n t~ at ca n b e a llo ca te do n a rfJ as on ab le a nd ,a om ;ijs ie nt b as isII Net cash flows to be rece i~ed o r pa id fo rth edisposal l o , i the asse t a t the end o u it s lI:S!efullli ife

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I R e v e r s a l o l f p a s , t i m p a i r m e n l t s ,Whe re th e re oo vem blle am ou nt iin cre as es , ~ he Ir,e su litim gre ve rs al s ~o u!d b e re co gn is oo in th e c urmm t p erio dloth ee lde nt t~ at. iit in cre as es th e c aJ rry lin g am o lln t u p to th e am ou nt t~ at iit WG u lldh av e b ee n (n et o f am o:rtiis atiio n o rde pm oia tio m) h ad n o im pa Jimmn t lo ss b ee n re oo gn iis ed in p rio r ye ars . in d i v id u a l a s s e is : mcogniis e a s in e ome iimm lo o iia t:e lyiin ~ h e s t.a temen t o f 'o ompm '~ e n s il. lle in c o :me un le s s th e 'a ss et is ca rr ie d a t m :va llu ed a mo un t u nde r a no th er I . A S in w hich ca sea :P iP ily th e ru le s o f th at lA S C G L ls , " e xa d o pp os iite o f f iits o riig iima l r eo o gn iitiio nw lh ille e n s ur iin g t~ a t a s s ets a re n o t in o re a s ed abo ve ~hBIlo w e r o f th e iir re o ov e ra b lle amo un t a n d th e ir .c am ry lim gmo un t I(a fte r de p re cia ~ io n l o r amor tis a tio n ) ~ a .dth e re

b e e n n o in n ,p a iilnmen to s s G o o d w iJ i : mo t Ir ev e rn e d iin s u bs e qlle n t p e rio d u n le s s:

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I D i s c l o s u r eII T h e a m o u n t o f in f l lp a ii r m e n t lo s s e s r 1 e c o g n is o o i 'n t h e ' s t. a te n n :e ln to f c O r n 1 lp re h e ~ s iiv e in c o m e d u r in g l t h e p e :r i i o dend t h e l in e i t e m s a ff e c t e dII T h e a m o u n t o f in n lp a ii r m e n t lo s s m : \I \ e : r s a ls I~ e a o g n is e d i n t h e s ta t J E ! lm e n r t f o o m p r ,e lh e n s i v e i r lc o n n le d u m iri g t l h ep e r io d a n d ih e I li~ lE !i t e l m s a f f e c t e dII T h e a m o u n t o f in n lp a ii r m e n t lo s s e s d le ib ii t : e dd ir , e d lY a J g a in s t e q u i i l y in t h e per iodII T h e a m o u n t o f in n lp a i i r m e n t lo s s m : \ I \ e i r s a ls Q r e d i' t e d d i l r e c tl i y ~ o , e q ~ ii t y i~ t ~ e p e rio d fo r n n l a ie r ia l i im p a i rm e l n tbsse s o r l o ss r e v e r s a l l s :

The e v e n t s a n d c i r cums tancesT ~ e amo un lThe ~ a t U i r e ( ) i f f ~ h e a s s e t or c a s ~ g e n e r a t i n g l U r l i i !F o r in ~ i a i l lo s s e s w h e t~ e r r , e c o \ l \E ! r a b J le n n r m J l n ~s N I S P o r V I I I U I { a n . d d e t a il s o f b a s i s o f s e ll i in g p ri c e o rd i s c o u r lt . r a te a S a jp p l r q p :n l a . t : e )

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7 : R ep ortin g fina nc ia l pe r f o rmance

lA S 8I F RS5

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l A S SS ~ o u ld l in c lu d e a ll I I i t , e m s o f i in o o :m e a nd e x p e r n s e f o r ~ h e p e r io d ( i i1 eno t I h id d ie rn i 'r n re s e rv e s ) u n le s s a n I I I A Sm q u il r ; e ~ p e r tm it s o ~ h e rw i is e .A c c O U l 1 I l i n g p a l i c i e !Accoun iu n g p o ilid es a re ttle s p ec ific p rin c ip le s " O O O O S , ' oornven t~orns !u les a rnd p rac ti ces aRp l ll: edby an en tity ~ np re pa rin g a nd p re se n tin g s ta temen ts .A n en tity fo llow s e x ta n t S ta nda rd s a nd Iin te rp re ta tio n s wh en dete rm iin ir ng i~ s a c ooun ti'n g pO lic [e s "In th e a bs en ce o f a S 1 arn da rdo r In te rpm ta ti:o rn c ov erin g a sp ee fic tra n sa ctio n , o f h e ir e v en t o r o o ndn io rn "man a gemen tu se s ills jU dg eme rn t to de v elo p a n a cc o urn tirn g po lic y w h l~ h re su lts ~ nin fo rma tio n th at is re le va rn t an d Ire li~ e ~rons[de r ir ng ii n t h e f o llow~ng o rde r :1 . s ta nda lrds o r In rte ~ pre ta tio n s de alin g w ith s im ila lr a nd re la te d is su e s2. The . F i ' a m e w o r k def~nni :ornsand !recogni tion cr i ter ia3. o the r n ati:on al G A A Ps base d e n a s im ila r coo re ptua l T rram ew ork .~ pro vidin g th e ~ re a trn e nt do e s n o t c on flic t w ithextant s tandalrds" I ln te lrp reta t iOO Isor the mmewo r k ) .

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On ly a llow ed if :R e q u i r e d b y s t a n d a J r d o r i n t e r p r e t a t i o nI l f th e c h a n g e w i l l i p : r , o v id e m o r e r c le v a n t , a i r r e l ia b l ie i n f o rm a t io n a b o u t e v e n ts o r t r a n s a c t io n sA o c o o n t i i n g 1 r e a t m e n 1 :R e s ta t t e p r ~ o r y e a r s ta te m e n l : o f c o m p re h e n s i v e in c o m e and s ta t e m e n t o f f in a n c ia l p o s it io nR e s ta t t e o p e n in g b a lla n c e o f r e ta in e d e a J r n in g sln e lu e e a s s e c o n d I l i n e o f S O C l I ES h o w e ff e c t o n p r~ a r p e r io d a t f o o t o f p r~ a r y e a r S a C IE

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11 : A cco u ntin g to r assoc ia tes

Associ iates

.A s ya uk now~ an in ve stment canbfJ ' c arrie d a t cl ls f1 fullyco.nsol idated , o r a cc ou nte d to r u sin g th e'e qu ity m .e tilo d fdepend ing , o n ' the 'degree O f con , froJf lxerc tsed , Ana ss ocw a'teis a cc ou nte d fo r u sin g th e'e qu ity me th od .

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12 : Inven to ries a nd co nstru ctio n co ntra cts

lA S 2lA S 11

~llve met in v en .ta ry and in v en tD r yv a iu a tio n in y o u . rf J a rM e r st1Jdi~~ s o o n J y is ! bde f . s u m m a r y t e g iv en .h e re .Cons tr uc t ion con tr ac t s ~ e f t l ~ ( J i i v , e J y long-term ' w o r k inp .r o g ,e s 'S ~ a r e ' a n e w a re a . Y o u o o e d to fa a .k a t f h ed m J b J e e . n 1 r y care~lJlly.

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1III'lventoiesI II lowe:r o f~ I INlet r ,ea li isab l ie va lueoo t

J t O fICos t o fpl!JlrchaS!e

mhe rcosts

E s~ im ate d s elliin g p ric e le ss c os ts toc omp ile tio n le ss c o sts n e oe .o o a.ry tom ake the sa lle

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W lh ere t~ e o U I~ oom eo f a c on tra ct c an b e e stim a te d re lliia Jb !y , p :ro po :rti:o ~ ( ) i f f o o:n tra ct re ve nu e a nd c os ts s ho uldb e re co gn is oo in th e iin oo :m e s ta Jtem en rtby mfe r e~ o e to ~ he s ta g )e ',o f , o omp le ticm ( iilea . p: ropo: r ti :o~t~at mi i rl iyr ,e f lle c ts ~he amrO lL lll1 tf wo r k done ). ,Th e s ia .g e o f c om p ile tio n c an be ,ealrmllatedin var i ous way s in c ludi~ g :P r 'q p o riio n o f c o n tr ac t c o s tsi ncurred:C os ts to da te x E stim ate dl~ ota Jllo ta Jl e s~ im a te d' re ve nu e/o os tscosts

Su r v e y s o f w ork per le rmed:W o rk ce rtifie d x IE stllm ated to ta lC on tra ct p ric e re ve nu e/co s ts

Ph ys ic al p ro p or tio n c omp le te d

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13 ,: P rev ls lcns , cont ingent l labll ltes andco ntin gen t a sse ts

lA S 37

lA S ,37 s 'h ou id b e tam iJ ia r to )"o u {mm you r e arlie rs tu r j es . If is pa r ii c -u far ly t op ica l in t he . lig h t o f increasingenvironmenta l awa reness .

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l A S 3 7IPmrvi iS i iOlnS.Iii E nta ie s s ho ulld n ot: IP ro vide fo r 'c os ts Um lt n ee d to b e im cu lrm d to

,o lp era te , i n th e fu tlllre ., if th oo e ,c os ts c ou ld Ib ea rlllo iidle d b y th e,emti ty 'sf l !Jt Iur,eaci i io :ns

Iii Co sts ,o , f In !s t l! 'l ll c1 il ll l! 'i ng la re to b e r,e oo gn is edi a s a p roe is ion on iyw h en 1 Jh ee ntiity h as am o lb l ig M io lil to GElJfY o u t th e r ,e s ir u du riin g

Iii llh e 'f u lill 3m lO lU llilto ~ any deOOMml iis s i'o : ni ililg c o s ts o r , e rn v ir ,om lmen r ta ll!ia bilila ie ss hn ulld b e Ir!e oo gn iis ed fro M th e da le o nw h ic h t h ey ari ise

Shou ld be dec lo sed un le ss Ile poss ib ility o f an yo lltlla w o ff e oo n o mic b en efits to s ettle it is re mo te .

P r o v i s i o n lA lia bilir ty o f u nc erte in ~ im in g o ramoun t. L iab illiiti es a re ob liig a tio n s~otran sfe r e co no mic be ne fits a s are s u lt o f p as ttren sac lie ns o r even t s ,

S ho uld be disc lo se d w he re a n in flb w o ff e co no micb en efits is p ro ba ble .

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""'D I~- -~~ I

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14 : F ina nc ia l a sse ts a nd l labll lt les

lA S 32lA S 39I FRS7I FRS9

.A f in a n c ~ a i in s ' im m e r l! i is d e fin e r} in lA S 32 ' as a n yc O . ri ' i r a c t t h a t g i v e s r i s , e t o , b o t h a f in a n c ia l a s s e t o f o n e,e n t i t y a n d a f in a n c ia l / ia b i l i iy o r e q u i t y in s , t r o .m m t o fa n o th e r . lA S 3 1 9 ' d e a ls w i t h h o w f in a n c ia l in v e s tm e n tsa r e m e a s u r e d a n d IF R S 7 c m r e r s d is c lo s u r e ' ., I F R S 1 9 ' i s t h e m o s t , r e c e n t s ta n ria rd w h lC h dea ls w i t hd a s s if i c a t io n a n d me ,asu~emm fo f . a s s e~s .W h e n i f n a sb e e .n e x te .n d e d to r o v e r . I ia b i i i t ie s it w i l l r e p fa c e ' a J i o f, lA S 3 19 .'.

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Because o f the iin ~e r ,e~ t,d ii] fic lU l ~ ie siin th is c omp le x cnea, i i t ish ard fo r u se rs to a ss es s th e ~ a,tu r,e '~ ,n n,o un ta nd co st o fa ~en , tiily "'sdeb t and equ iily r e s c t r e e s ,Be fo re lA S 32 and lA S 3 9 many 'f in a n cia ll in s tr umen ts , we r etre ate d a s. o ff b ala nc e s he et ID in an oea nd iin vis ib le to th e u se r,o f ac co un ts . B ec au se o f th eir s ig nifica nce , th e IA S IB ta ode dthe p ru j o c t in 3 phases :11 . lA S 32: Presentat ion (1995) ensu red the use r w as aw are

o f the ins tru men ts a nd riisks2. lA S 39: IReoogn ii~ io nand Measu remen t (199B) prescr ibed

spec f ie a c cO lm tJ ln g tr oo tr ne n t a s a n i nte rir 1 l1 ln e a sur eB oths landa rds w ere rev ised in D ecem be r 20013"3. IIF RS 7 :: D is clo su re (2005) spec f i es dis do su re s re qu ire df a r f in anc ia ll in s tr umen ts ,

I F in l a n c i 0 1 j n a t r u m e n t :A ny co ntrac t th at g iive s rise to a ID ina nc ia la s se t o f o n e e n tity a n d a fin a nc ia llliia Jb iliityo r e qu ity in stru me nt o f a no ith er.

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II I F i'~am) ia l i i ns trume[n~s s lhou ld be c l1ass ii fi iedas ,e ii tlhe r~ , Ilia bility {de ib it) o r~ , IS q tliit,y

II Compound ii ln s t~umen ts { exhi bi~ i ng cha ra c~e1 ris t1 oso f bn th )mu st b e s p lliitiin tn th e jilr d eb t a nd '9 qu iiiy c ompcmenr tsII S ub sta ~c e m th elrth a~ Ile ga l m rma jp pliie s I~ eg lr ,edeem.ab !e p re f, e :renoe s .h~uesa re a , f li~anc ia lli iab i li ty ) 'II I In t~ r est~ d ii vi d! e~ds~ los s o rg ia ii n s r e la ting l to a f in !tJ ln c ia lin stm m en t e le im ed a s a Iliia Jb iili itya re repe ted in th e ~!'wh ile dis trib U Jtio n sto h olldle :rs o f e qu iity in stmmen ts a rede bite d dir,o ctliy to ,e qu ity (in th e SOC II E )II O ffS !e t o f a fi~ am )ia l a ss et a nd !ia bilility is o nly a illo w oowhe re th e re iis a le g allliy e n fo ro e a blle r iig h t a ndth ee~tiit.yin te ~ds to s eU ie n et o r s iim ulta ne ou sly

F i n a n c i a l l i a b i l i t y :Con tra ctu al o blig ~~ io n to de liv e r c as h/,o th e rfin an cia l a ss et; c on tra ctu al o blig atio n toE ! 'x change fi nand ia J l in : st~u rnen ts unde rpo ten ti a lli y u n fa vo ll r a bie conditi ons .

E q u i t y i n s t r u m e n t :C on tra ct tha t e vide nce s a re sidu al in te re stin the asse ts o f an en tilty a fte r deducting a lli t s l iabilaies.

1 4 : F i r n a ri l l : : ia l a s s e ts a n d l l ia b i l i t i e s

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l A S 3 9 I R e c o g l 1 l i t i 0 1 1 1a n d m e a s u r e m e n l tRe c og n itio n a n d de re c og ln iitio nF in an cia l in stru me nts s ha uld b e re C ()g nis edw hen the en tity b e c ome s a party to Ihe, co n tr ac tu a l p ro v is io n s of~he i n s t rumen tDe recogn i t i on

- f in an c ia l a s se ts : w he re th e oom rac tua lr ig h ts ~ o the ca sh flow s e xp ire o r th e1 in a o c ia ll a s s e t is tr a ns fe r re d

- fin an cia llia bil'iti:e s: w h en o bl'ig 8!tio nse xp ir e /a r e d is cha rged1ca lllCe l ll~1

IMea su r emen tF in an da l in stru me nts a re in iltia lly m ea su re d a t f air v alu e plustmnsaot ion cos t s dire c'lly atilr ib uta ble ~ o t he .a cq uis itio n o r is su elrans8!c' l ion co s t s a re in clu de d in in itia l m ea su re me nt (Ib ut n ots ub se qu en t m e as ure m en t}F in anda l a sse ts s re div ided in to fo u r type s fo r sub s equemmeasu remen t

L oa ns a nd re oe hm ble s o :r i:gn 8!te d b y th e e nti't.y (M d n ot h eld fo rtrad' ing)

- H e ldto -m atu rity in ve stm en ts- F in an c ia l a sse ts a t fa ilr va lu e th ro ugh p ro fit a nd less'- A v:a il8!b le fo rs a.le f in M cia ia ss ets (a ny o me r fin a.n cia l a ss ets ).. Th is m ea ns e ith er a n a sse t th at is h el:dl fo r tra din gl (ie a de riva tiv eo ra 1 in ao cia ll a sse t a cq uire d p rin cip all/ i fo r se ll i n g in th e n ea r te lrm )o r .a ny h aoc ia ll a sse t th at th e e ntity de cide s u po n in itia l re C()g nitio nto de sig na te a s h eld a t fa ir W lJ I :u eh ro ug h p ro fit o :r l o ss .

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Subse quer nt lI 1I le aSU lr emen t:f i lnancial lassels ( F A ) !

Amor t i s ed cos t

II H e l f d . ; t o - t r m a t ur i l y loa rus andr e c e i v a b l e s

o r i i g i i n a t o o by 'leln~i~yaru d ruo t heldfo r t m d i i i n r g

F a i i r val:Llle

1 1 1 1 F i m u r n c i i a l l assets a tf a .i 'r va lue th roug l~prof i !t o r I b ss

illi A v a i i I ! a i b l e - f o r - s a l l ef 1 n a n c i ia ll a s s etsI ( a n y ntlher)

S ub se quer nt lI 1I le aSU lr emen t:l i ln ia r n c ia l I l ia b i ll i i t i ie s ( F L )

F air v alu e

II Ri~aruciall i iabil i t iesa t fair v a l l U J eth rougl~ lP:rof~orloss

II Fil 8 1 r i s i i n g w h e nt ransfer o f F Adoes ~O~q u a l l i f yfo r d e r e c o g l ~ i i t i o : n

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C a l c U i l a t i i 0 n sT he m eth od u se d in th efdillo w in g e xa mp lie ~p pliie s to de ep dj's co un t b on ds a nd o th er s im illa r iin stm m ern s(in c llu d iir n gz e ro oou p on b ends ],

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$315, ,526$ 3 1 1 5 , 5 2 6

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80,0008 4 , 4 7 4 1

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CRED IT Liability

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I F R S 7 : F i n a n c ia l i n l s , l r u m e l 1 l l s : D i s c J o s U i r eThe ob je c ti\ l\ e ( ) i f f I F IRS? i s to I r 'equ i ireen r ti iti ie s ,o . p ro viid le d iisdbsuw ,e s in 'the iir f illa n c ia l s ta ltemen ts 'tha t , em lJb lleu se rs tn 'B V allu ate :(a ) T he s ig lil~ ic am le ( l i f f fu n arm ia ll in s tmmen ts fo rth e ,em tiity s fin ra In c ia lp o sitio n a nd pe rlo rman ce(0) T he n atll~ e a nd e 'n ellt, o ff m is ksa ris i'n g fro m fin rtm ciia l i lls tmme llts to w hiich ~ he e ntiily is e xp os ed a nd h ow th e

,e ln~ i~ymanH ges those r isks,Th is in fo rm !f!J tio :nc a n in flu e llc e a user 's a ss e ssmee t o f th e fin allc iia llp o 5iit~ o n a n d p e :rr fiO :nman o ef a n ie ln ~itya nd o fth e n atm e o f ~ s fU ~lIre c8s hflo ws .I lln ad.diiiio :n to th e n umer ic a l dis c lo s ur es r eq u iir ed b y I.A ,S 39 ', IF RS 7 ellc ou ra ge s a lI l!a lrrn U ve ,oommernlary byis sue rs o f f iin r aln c ia liills ,tfU lme ln~s~h ic h w i lli , e llab l, e, use r sto undle : rs ta lld ~he ir 8 !tl: i~ lI deto r is k ."

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I F R S 9~ FR S '9'w as iis su ed a s a n a Ue mp t to s iilm p!ify th e p ro vis io ns o f IA 839'.It. o :n ly a pp lie s to a sse ts a nd do es n otc ome into f o ree u l lt i[ 120 '13 , so I 'W ll l: lr nyn ta iesw i l[1 cOl lti nu !e to a iPp ly IA839 '.

[ I n , i t i i a l [ t n e a S U l r , e M e n t :

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1 5 , : The leg a l ve rsus the comm erc ia l view

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o f' account ing

O ff b a la n .c e s h e e t f l i n a n c eSub s ta n cs o v erfo rmF r a m e w o r kR e v e n u e recogni t ion

T h i ' S i 'S a v e ry t o p io a l is s u e g iv e n fh e . f in a n c ia f 'S C a n C ia ts , o frecent years .~u m ust b e' aw are ' , o f , the va rious ( n r m - s ofof{: .bafanoe , ' S h e e t f i n a n c e and t h e m e , a s u r e . s : taken f i J ip , r e v e n , f it .

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o n b a l a n c e s h e e t f i n a n l C !T he fundillg o r re fillanc ing l o f a ll e ll~ itys op ers fion s iin such a w a y th at, u nde r Ile ga l re qu iire me nts a nd e xis tin gaccoun ting l oonven tions , some o r a ll o f the fin ance m ay no t be s h own a ll ilts s ta tement o f f ia a nc ia l p o s ilio n ,

-& too k m a rke l ad va rl'la ge s.:I lowe r g e a rin g l r a~ io- Ke ,sp a J . comp.a lny w i i~h i n rcu !moomnantsII I E xd iude h igh ly gea red s tu 'b s ild ii, 8. ryrom

cDr l'sd li 'oC l lti on fo r reasons o f d iss i rn i la r ac ti iv ii ti is 'sand t h e r , e i b y r ed uc e ge a riin lg

II IExpec ta ti ro :no ff In lgh ts i ssue ( to redu :oeg isa llr ing )dec rea s ed , t h e r e b y ma iin ta iin in g s ha re p ric e

A s itu a tio n is . cr ea te d wh er e l ISHS o f faccoun ts . dbno t have a c lea r V i l e w on the s ta te o if the en tity 'sa ffa irs .llls uffic ie n t dis clo su re c re ate s p rdb lem s.

O i l h a ~ no e m m e 1 i l J O r k

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S u b s , m n c e o v e r ' f O r mT ra nsac tion s an d o th er e ven ts shou ld be accou nte d fo r a nd p resen ted in a cco rdance w ith th e ir sub s tance an dfin a nc ia l re ality a nd n o t m e re ly w ith th e iir Ile ga lfo rrn { l i A S 1 ).{}II lA S ~7 L ea oo s: ~ risk s a nd riB w aro s.o ff o w ne rs hip t:ra ~s .fB IY 'OOle as e is an a ss et o f th e le ss ee ,e~B~~houg l~tiitl! ~mas no t pa s sedII lA S 1 1 Gans#ud i o f l oon f raa iR"tak ing l a t lr ii bu li ab !e profitsII lA S 2 4 : : r e la ted p 'eu ty tr a nsactionsII IF IR83: d~ iir liitjio n o f s u bs idiia ry b a se d o n c o ntm l

I F r a m e w o r k

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A o c o u n tin lg f o r i t e m s t ) o c o rd il 1 !g t o s u b s t a n o B a ln d e c o n o :m i c r e a l l i t y a n d n n t m e r 'B l l y ! e g a ll f o rm is a lk e yd e t B l r m i n a n t o f r e li ia b l ie i n f o rr n a t i i o n "II M a j o .r i t y o f tmnsanf ions: nil) d if f e r e n o e , s o 11 0 i s s u e O the r ,transac tions : s u b s ~ a n . o B and f o rm d i i ' I J e rg e ; :c lh o ic e o f tm a tm e l 1 t . c a in g iv e d i i f f e r 'B l n t l r e s u li t s d u e t o n o n -r e c o g l l 1 i i t i o : n o f a n a s s e t l l l i l a b ~ l l i ' t y , e v e l 1 i~ o u g l ~ b B ln e f a s J o b l ig a i ib : n s r e s u HI D e t e r m i n i n g t h e s u b s t a n , c e a f : t r a n s a c t ~ o n sD o e s t lh e ~ r .a l n s a c t ic m , c h a ln g e t h B , B x is t i n g l a s s e t s ll l i i , a lb i l i i t ii e s o ff t h e e n t i ' t y , e i t h B , r b y c r , o o . t i in g n e w ones , o r a l ~ B ' r i i l 1 gt h e e x is tin g 0 1 1 -B 's 1A s s e t s ! L i a b i l i t i e s ,R e s o u r c e s c o n tr o l le d b y t h e e n t i t y a s a r e s u l t o fpast e v e n t s a n d f r o m w h ic h f u tu r e e c o n om icb e n e ~ it s a re e x p e c te d t o f lb w t o t h e e n ti t y

P r e s e n t o b lig a ti o n s o f t h e e n ti t y a ~ is in g f r o m p a s te v e n t s , th e s e t t l e m e n t o f v d l i c h is e x p e c t e d t o ' r e s u R i i na n o u t f l o w f r o m t h e e n t i t y o f e c o n o m ic b e n e f ~ s

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I R e c Q g n i l h : mThe p ro e e ss o f in c o~ po nitlr 1g a n iite rn in to th e IP :r iilma rymnanc iia lls ta te lme rlts wn h~pp r,o p riia 1 e he adin g s . I t invol~esde p i:c tir o:no ff 1 1 hetem inwa rds and by mo:n eta l"l( amo un t a nd U ~ e iin du sio n o f th ai amo un t in th e s ia t.e me rl1 to ta ls .

W h e re s iig nific an tly a ll th e ris ks a nd o on efitsW 11 11 1flo w to , th e e ntityS uffic ie nt e vide nc e th at b en efits e xis tA bl,e to m ea su re iin m on eta ry te rm s w ith s uH ic iie ntre liab i l ity

W h e're s ig nifica n~ ly a ll th e ris ks a nd b en elits h aveb ee ntra ns le rre d

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114/145

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115/145

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