Consequential Amendment to FRS 101 Presentation of Financial Statements
The amendment in this addendum shall be applied for annual periods beginning on or after 1 January 2010. If an entity applies FRS 7 Financial Instruments: Disclosures for an earlier period, these amendments shall be applied for that earlier period. In the amended paragraphs, new text is underlined and deleted text is struck through.
FRS 101 Presentation of Financial Statements is amended as described below.
In the Introduction, paragraph IN20 is added as follows
IN20. In November 2008, the Board added requirements for disclosures of:
the entity's objectives, policies and processes for managing capital;.
quantitative data about what the entity regards as capital;.
whether the entity has complied with any capital requirements; and.
if it has not complied, the consequences of such non-compliance.
Paragraph 4 is deleted.
In paragraph 56, 'FRS 132' is replaced by 'FRS 7 Financial Instruments: Disclosures', and in paragraphs 105(d)(ii) and 124, 'FRS 132' is replaced by 'FRS 7'.
The last sentence of paragraph 71(b) is amended as follows:
For example, a bank financial institution may amends the above descriptions to provide information that is relevant to the operations of a financial institution apply the more specific requirements in IAS 30.
The fourth sentence of paragraph 84 is amended as follows:
... For example, a bank financial institution may amends the descriptions to provide information that is relevant to the operations of a financial institution. apply the more specific requirements in IAS 30.
A heading and paragraphs 124A.124C are added as follows.
An entity shall disclose information that enables users of its financial statements to evaluate the entity's objectives, policies and processes for managing capital.
To comply with paragraph 124A, the entity discloses the following:
qualitative information about its objectives, policies and processes for managing capital, including (but not limited to):
a description of what it manages as capital;
when an entity is subject to externally imposed capital requirements, the nature of those requirements and how those requirements are incorporated into the management of capital; and
how it is meeting its objectives for managing capital.
summary quantitative data about what it manages as capital. Some entities regard some financial liabilities (eg some forms of subordinated debt) as part of capital. Other entities regard capital as excluding some components of equity (eg components arising from cash flow hedges).
any changes in (a) and (b) from the previous period.
whether during the period it complied with any externally imposed capital requirements to which it is subject.
when the entity has not complied with such externally imposed capital requirements, the consequences of such non-compliance.
These disclosures shall be based on the information provided internally to the entity's key management personnel.
An entity may manage capital in a number of ways and be subject to a number of different capital requirements. For example, a conglomerate may include entities that undertake insurance activities and banking activities, and those entities may also operate in several jurisdictions. When an aggregate disclosure of capital requirements and how capital is managed would not provide useful information or distorts a financial statement user's understanding of an entity's capital resources, the entity shall disclose separate information for each capital requirement to which the entity is subject.