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disposal was recognized. The same accounting treatment would be applied to the loss of joint control of a joint venture or the loss of significant influence over an
associate. If an entity applies the IAS 27 amendments to an earlier period it should apply the amendments to IAS 21.
The amendments apply to annual periods beginning on or after July 1, 2009.
An entity should disclose
DISCLOSURE
• The amount of exchange differences recognized in profit or loss but not differences arising on financial instruments measured at fair value through profit or loss
in accordance with IAS 39
• The net exchange differences classified in a separate component of equity and a reconciliation of the amount of such exchange differences at the beginning and
end of the period
• When the presentation currency is different from the functional currency, disclosure of that fact together with the functional currency is required, as well as the
reason for using a different presentation currency
• Any change in the functional currency of either the reporting entity or significant foreign operation and the reasons for the change
When an entity presents its financial statements in a currency that is different from its functional currency, it may describe those financial statements as complying
with International Financial Reporting Standards (IFRS) only if they comply with all the requirements of each applicable Standard and Interpretation.
If an entity displays its financial statements or other financial information in a currency that is different from either its functional or presentation currency or if the
requirements just listed are not met, then it should
• Clearly identify the information as supplementary information to distinguish it from the information that complies with IFRS.
• Disclose the currency in which the supplementary information is displayed.
• Disclose the entity’s functional currency and the method of translation used to determine the supplementary information.
Assets:
CASE STUDY 6
Jocatt Statement of Financial Position
Noncurrent assets
December 31, 20X9
€m
Property, plant, and equipment (PPE) 1,900
Financial assets
250
2,150
Current assets 1,650
Total assets 3,800
Equity and liabilities:
Share capital 1,000
Retained earnings 1,500
Total equity 2,500
Noncurrent liabilities 800
Current liabilities 500
Total liabilities 1,300
Total equity and liabilities 3,800
An entity acquired 60% of the share capital of Jocatt on January 1, 20X9 for €1,380 million when Jocatt’s retained earnings were €1,100 million. The fair
value of the identifiable net assets of Jocatt on January 1, 20X9, was €2,475 million and related to nondepreciable PPE. The fair value of the
noncontrolling interest (NCI) in Jocatt at January 1, 20X9, was €1,250 million. The entity wishes to use the “full goodwill” method to prepare the group