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CONTENTS About the Authors vii 1 Introduction To International Financial Reporting Standards 1 2 Conceptual Framework 15 3 Presentation of Financial Statements 41 4 Statement of Financial Position 63 5 Statements of Profit or Loss and Other Comprehensive Income, and Changes in Equity 77 6 Statement of Cash Flows 99 7 Accounting Policies, Changes in Accounting Estimates and Errors 117 8 Inventories 139 9 Property, Plant and Equipment 157 10 Borrowing Costs 187 11 Intangible Assets 195 12 Investment Property 225 13 Impairment of Assets and Non- Current Assets Held for Sale 239 14 Consolidations, Joint Arrangements, Associates and Separate Financial Statements 261 15 Business Combinations 313 16 Shareholders’ Equity 365 17 Share- Based Payment 389 18 Current Liabilities, Provisions, Contingencies and Events After the Reporting Period 423 19 Employee Benefits 457 20 Revenue from Contracts with Customers 483 21 Government Grants 523 22 Leases 537 23 Foreign Currency 567 24 Financial Instruments 599 25 Fair Value 729 v vi Contents 26 Income Taxes 759 27 Earnings Per Share 797 28 Operating Segments 815 29 Related Party Disclosures 835 30 Accounting and Reporting by Retirement Benefit Plans 849 31 Agriculture 857 32 Extractive Industries 873 33 Accounting for Insurance Contracts 883 34 Interim Financial Reporting 909 35 Hyperinflation 929 36 First- Time Adoption of International Financial Reporting Standards 939 Index 971 ABOUT THE AUTHORS Salim Alibhai, FCCA, CPA (K), CPA (U), is an audit partner at PKF Kenya and is involved in audits across diverse sectors and specialises in group audits. He is also part of the IT Risk Advisory Team of the Eastern Africa PKF member firms. Erwin Bakker, RA, CDPSE, is international audit partner of PKF Wallast in the Netherlands, mainly involved in international (group) audits both as group audit lead and component auditor. He serves as chairman of the IFRS working group of PKF Wallast and was previously part of the Technical Bureau of PKF Wallast. He is a member of the NBA (Koninklijke Nederlandse Beroepsorganisatie van Accountants – The Royal Netherlands Institute of Chartered Accountants). T V Balasubramanian, FCA, CFE, Registered Valuer and Insolvency Professional, is a senior partner in PKF Sridhar & Santhanam LLP, Chartered Accountants, India, and pre- viously served as a member of the Auditing and Assurance Standards Board of the ICAI, India, and Committee on Accounting Standards for Local Bodies of the ICAI, India. He has been part of the technical team of the firm engaged in transition to Ind AS (the con- verged IFRS Standards) and the ongoing implementation of new and revised standards. Kunal Bharadva, FCCA, CPA (K), ACA, is a partner at PKF Kenya LLP and is the Head of Training across the Eastern Africa PKF member firms. Asif Chaudhry, FCCA, FCPA (K), MBA, ACA, is an audit partner at PKF Kenya and heads the technical and quality control functions across the Eastern Africa PKF member firms. He is also a member of the Kenyan Institute’s Professional Standards Committee. Danie Coetsee, PhD (Accounting Sciences), CA (SA), is Professor of Accounting at the University of Johannesburg, specialising in financial accounting. He is the former chair of the Accounting Practice Committee of the South African Institute of Chartered Account- ants, and of the Financial Reporting Technical Committee of the Financial Reporting Standards Council of South Africa. Patrick Kuria, B/Ed (Hons), CPA (K), is a partner at PKF Kenya and specialises in the audits of financial services and the not-f or- profit sector. He is a member of the Institute of Certified Public Accountants of Kenya (ICPAK), PKF Eastern Africa technical committee and also serves as the chair of PKF Eastern Africa CSR Committee. He is a Life Member of Award Holders Alumni Kenya (AHA-K) and a member of the finance committee for President’s Awards Kenya. Darshan Shah, FCCA, CPA (K), CPA (U), ACA, is a partner with PKF Kenya LLP, a director with PKF Taxation Services Limited and is the Head of Audit and Assurance for the Eastern Africa PKF member firms. Ramanarayanan J, FCA, Cert. in IFRS (ICAEW), is a partner in PKF Sridhar & Santhanam LLP, Chartered Accountants, India. He has been part of the Ind AS (the con- verged IFRS Standards) technical team of the firm and actively involved in the ongoing implementation of new and revised standards. Jamie Drummond, Head of Assurance with PKF International, Jamie Drummond supports the PKF membership around the world deliver high quality audit and assurance engagements. Jamie’s career in auditing has spanned more than 25 years, including previ- ous roles leading engagements with PwC and KPMG in a variety of locations, including Scotland, Australia, Canada, Moscow and London. vii