cfas pas

• an entity over which the investor has significant influence

  associate
• the power to participate in the financial and operating policy decisions of the investee but is not control or joint control those operating policies

  significant influence
• significant influence is presumed to exist if the investor holds, directly or indirectly (e.g. through subsidiaries), 20% or more of the voting power of the investee.
• investments in associate are accounted for using the equity method.
• under the equity method, the investment is initially recognized at cost and subsequently adjusted for the investor's share in the investee's change in equity
• if cost is greater than the fair value of the interest acquired, the excess is goodwill.
• if cost is less than the fair value of the interest acquired, the deficiency is included as income in determining the entity's share in the investee's profit or loss in the period of acquisition.
• the difference between the investor's and investee's end of reporting periods shall not exceed three months.
• interest in the associate or joint venture does not include trade receivables and payables and secured long-term receivables or loans.
• an investor is exempt from applying the equity method if it is exempted from preparing consolidated financial statements.
• inflation refers to a general increase in prices and decrease in the purchasing power of money.
• pas 29 does not prescribe an absolute rate at which hyperinflation is deemed to arise.
• pas 29 prescribes the restatement procedures for the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy.
• the gain or loss on the net monetary position resulting from the restatement is recognized in profit or loss.
• the financial statements of an entity that reports in the currency of a hyperinflationary economy are restated in terms of the measuring unit current at the end of reporting period.
• when translating the current-year financial statements, only nonmonetary items and income and expenses are restated.
• any contract that gives rise to a financial asset of one entity and a financial liability or equity instruments of another entity.

  financial instruments
• any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

  equity instruments
• a financial instruments that, from the issuer's perspective, contains both a liability and an equity component.

  compound financial instruments
• bonds that can be converted into shares of stocks of the issuer.

  convertible bonds
• what is the example of compound instruments?

  convertible bonds
• an entity's own share that were previously issued but were subsequently reacquired but not retired.

  treasury shares (treasury stocks)
• treasury shares are presented separately either in the statement of financial position or in the notes as deduction from equity.
• no gain or loss arises from the purchase, sale, issue or cancellation of the entity's own equity instruments.
• the consideration paid or received from such transactions is recognized directly in equity.
• the costs of an abandoned equity transaction are recognized as expense.
• pas 33 requires publicly listed entities, including those in the process of enlisting, to present eps information.
• one of those ordinary shares or potential ordinary shares are traded in a public market.

  publicly listed entity
• a computation made for ordinary shares

  earning per share
• earnings per share - a form of profitability ratio which provides a measure of how much profit (loss) each ordinary share has earned (incurred) during the period.
• ordinary shares - an equity instruments that is subordinate to all other classes of equity instruments.
• preference share -is one that has preference over other classes of shares, such as preference over dividends or preference over net assets in cases of liquidation, but typically does not have voting rights.
• types of earning per share

  • basic earnings per share
  • diluted earnings per share
• outstanding share - entitled to participate in dvidends
• outstanding shares are (1) issued shares + (2) subscribe shares - (3) treasury shares
• calculated by adding the aggregate market value of the shares immediately before the exercise of the rights to the proceeds from the exercise of the rights, and dividing by the number of shares outstanding after the exercise of the rights.

  theoretical ex-rights fair value per share
• a financial instrument or other contract that may entitle its holder to ordinary shares

  potential ordinary share
• are preference shares that are convertible into the issuer's ordinary shares

  convertible preference shares
• financial instruments that give the holder the right to purchase ordinary shares

  options, warrants and their equivalents
• pas 34 does not mandate which entities should produce interim financial reports.