International GAAP Holdings Limited Model financial statements for the yearended31 December 2014 Deloittes website provides comprehensive information about international financial reporting in general and IASB activities in particular. Unique features include: daily news about financial reporting globally. summaries of all Standards, Interpretations and proposals. many IFRS-related publications available for download. model IFRS financial statements and checklists. an electronic library of several hundred IFRS resources. all Deloitte Touche Tohmatsu Limited comment letters to the IASB. links to several hundred international accounting websites. e-learning modules for each IAS and IFRS at no charge. information about adoptions of IFRSs around the world. updates on developments in national accounting standards. Acknowledgement These model financial statements have been prepared by the IFRS Centre of Excellence in Hong Kong, Deloitte China, with special thanks to Candy Fong (team leader) and Cecilia Kwei. Global IFRS Leader Veronica Poole ifrsglobalofficeukdeloitte.co.uk Key contacts IFRS centres of excellence Americas Canada LATCO United States AsiaPacific Australia China Japan Singapore EuropeAfrica Belgium Denmark France Germany Italy Luxembourg Netherlands Russia South Africa Spain United Kingdom Karen Higgins Fermin del Valle Robert Uhl Anna Crawford Stephen Taylor Shinya Iwasaki Shariq Barmaky Thomas Carlier JanPeterLarsen Laurence Rivat AndreasBarckow Massimiliano Semprini Eddy Termaten RalphTerHoeven MichaelRaikhman Nita Ranchod CleberCustodio ElizabethChrispin ifrsdeloitte.ca ifrsLATCO .au ifrstohmatsu.co.jp ifrsdeloitte.dk ifrsdeloitte.fr ifrsdeloitte.de ifrsitdeloitte.it ifrsdeloitte.lu ifrsdeloitte.nl ifrsdeloitte.ru ifrsdeloitte.co.za ifrsdeloitte.es deloitteifrsdeloitte.co.uk Contents Page Section 1 New and revised IFRSs for 2014 annual financial statementsand beyond 3 Section 2 Model financial statements of International GAAP Holdings Limited for the year ended 31 December 2014 11 2 Section 1 New and revised IFRSs for 2014 annual financial statements and beyond This section provides you with a high level summary of the new and revised IFRSs that are effective for 2014 and beyond. Specifically, this section covers the following: An overview of the amendments to IFRSs and of the new Interpretation that are mandatorily effective for the year ending 31 December 2014; and An overview of new and revised IFRSs that are not yet mandatorily effective (but allow early application) for the year ending 31 December 2014. For this purpose, the discussion below reflects IFRSs issued on or before 31 July 2014. When entities prepare financial statements for the year ending 31 December 2014, they should also consider and disclose the potential impact of the application of any new and revised IFRSs issued by the IASB after 31 July 2014 but before the financial statements are authorised for issue. Section 1A: Amendments to IFRSs and the new Interpretation that are mandatorily effective for the year ending 31December2014 After the mandatory adoption of various complex standards in 2013, 2014 is a relatively quieter year in which a number of amendments to IFRSs and a new Interpretation have become mandatorily effective. All of these amendments to IFRSs and the new Interpretation generally require full retrospective application (i.e. comparative amounts have to be restated), with some amendments providing specific transitional provisions. Below is a list of the amendments to IFRSs and the new Interpretation that are mandatorily effective for accounting periods that begin on or after 1 January 2014. Amendments to IFRS 10, IFRS 12 and IAS 27 Investment Entities; Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities; Amendments to IAS 36 Recoverable Amount Disclosures for Non-Financial Assets; Amendments to IAS 39 Novation of Derivatives and Continuation of Hedge Accounting; and IFRIC 21 Levies. Amendments to IFRS 10, IFRS 12 and IAS 27 Investment Entities The amendments to IFRS 10 define an investment entity and introduce an exception from the requirement to consolidate subsidiaries for an investment entity. In terms of the exception, an investment entity is required to measure its interests in subsidiaries at fair value through profit or loss. The exception does not apply to subsidiaries of investment entities that provide services that relate to the investment entitys investment activities. To qualify as an investment entity, certain criteria have to be met. Specifically, an entity is an investment entity when it: obtains funds from one or more investors for the purpose of providing them with investment management services; commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and measures and evaluates performance of substantially all of its investments on a fair valu