OtherOthercomprehensiveincome(OCI)areincomeandexpensesrecognisedoutsideofprofitorloss,asrequiredbyparticularIFRSStandards.Totalcomprehensiveincome(TCI)isthetotaloftheentity'sprofitorlossandothercomprehensiveincomefortheperiod.IAS1requiresthatOCIisIAS1requiresthatOCIisclassifiedintotwogroupsas?itemsthatmightbereclassified(orrecycled)toprofitlossinsubsequentaccounting––foreignexchangegainsandlossesarisingontranslationaforeignoperation(IAS21)effectivepartsofcashflowhedging(IFRS–RemeasurementofinvestmentsindebtinstrumentsareclassifiedasfairvaluethroughOCI(IFRS?itemsthat?itemsthatwillnotbereclassified(orrecycled)toprofitorlossinsubsequentaccountingperiods:changesinrevaluationsurplus(IAS16&IAS38)remeasurementcomponentsondefinedbenefitplans(IASremeasurementofinvestmentsinequityinstrumentsthatareclassifiedasfairvaluethroughOCI(IFRS9)–––Question-Question-(b)ThedirectorsofRationaleareconfusedoverthenatureofareclassificationadjustmentandunderstandthattheIASBhasissuedpronouncementsonthesubject.Discuss,withexamples,thenatureofaadjustmentandtheargumentsforandagainstreclassificationofitemstoprofitor(8AnswerAnswer-(b)ReclassificationadjustmentsareamountsrecycledtoprofitorlossinthecurrentperiodwhichwererecognisedinOCIinthecurrentorpreviousperiods.AnexampleofitemsrecognisedinOCIwhichmaybereclassifiedtoprofitorlossareforeigncurrencygainsonthedisposalofaforeignoperationandrealisedgainsorlossesoncashflowhedges.ThoseitemswhichmaynotbereclassifiedarechangesinarevaluationsurplusunderIAS16Property,PlantandEquipment,andactuarialgainsandlossesonadefinedbenefitplanunderIAS19EmployeeBenefits.AnswerAnswer-AnswerAnswer-Thereareseveralargumentsforandagainstreclassification.Ifreclassificationceased,thentherewouldbenoneedtodefineprofitorloss,oranyothertotalorsubtotalinprofitorloss,andanypresentationdecisionscanbelefttospecificIFRSs.Itisarguedthatreclassificationprotectstheintegrityofprofitorlossandprovidesuserswithrelevantinformationaboutatransactionwhichoccurredintheperiod.Additionally,itcanimprovecomparabilitywhereIFRSpermitssimilaritemstoberecognisedineitherprofitorlossorOCI.AnswerAnswer-AnswerAnswer-ThelackofaconsistentbasisfordetermininghowitemsshouldbepresentedhasledtoaninconsistentuseofOCIinIFRS.OpinionsvarybutthereisafeelingthatOCIhasbecomeahomeforanythingcontroversialbecauseofalackofcleardefinitionofwhatshouldbeincludedinthestatement.ManyusersarethoughttoignoreOCI,asthechangesreportedarenotcausedbytheoperatingflowsusedforpredictivepurposes.AnswerAnswer-TheEDstatesthatitisnotfeasibletoattempttodefineintheConceptualFrameworkwhenanitemofincomeorexpenseshouldbeincludedinthestatementofprofitorlossorOCI.Instead,highlevelguidanceonreclassificationhasbeenTheEDproposesthatthereisapresumptionthatifincomeandexpensesareincludedinOCIinoneperiod,theywillbereclassifiedinsomefutureperiodwhenincludingtheincomeinthestatementofprofitorlossenhancestherelevanceoftheinformationinthatperiod.AnswerAnswer-Thepresumptioncanberebuttedifthereisnoclearbasisforidentifyingtheperiodinwhichthereclassificationwouldenhancetherelevanceoftheinformationinthestatementofprofitorloss.ThismayindicatethattheincomeorexpenseshouldnothavebeenincludedinOCIoriginally.Itcanbearguedthatreclassificationadjustmentsdonotmeetthedefinitionofincomeandexpensesintheperiodtheyoccurandthat,therefore,theIASBshouldacknowledgeintheConceptualFrameworkthoseadjustmentsasitemsofthestatement(s)ofperformancewhichdonotfulfilthedefinitionofincomeandEarningsEarningsTheThedirectorsmayalsowishtopresentthecompanyfavorablyinordertomaintainastrongpositionwithinthemarket.Themotiveisnotalwaysprivategain-heorshemaybethinkingofthecompany'sstakeholders,suchasemployees,suppliersorcustomers-butinthelongterm,earningsmanagementisnotasubstituteforsoundandprofitablebusiness,andcannotbesustained.‘Aggressive’earningsmanagementisaformoffraudanddiffersfromreportingerror.Nevertheless,allformsofearningsmanagementmaybeethicallyquestionable,evenifnotEarningsEarningsmanagementgoesagainsttheprincipleofcorporatesocialresponsibility.Companieshaveadutynottomisleadstakeholders,whethertheirownshareholders,suppliers,employeesorthegovernment.Becausethetemptationtoindulgeinearningsmaybestrong,particularlyintimesoffinancialcrisis,itisimportanttohaveethicalframeworksandguidelinesinplace.Theletterofthelawmaynotbeenough.IntegratedIntegrated–SBR–SBRSBL的例題，如果沒有學(xué)習(xí)過SBL要聽錄像，學(xué)過Integrated 是ACCA的熱門考點，正常概率應(yīng)該Integrated 是ACCA的熱門考點，正常概率應(yīng)該是在SBLTheaimofintegratedreportingistodemonstratethelinkagebetweenstrategy,governanceandfinancialperformanceandthesocial,environmentalandeconomiccontextwithinwhichthebusinessoperates.Bymakingtheseconnections,businessesshouldbeabletotakemoresustainabledecisions,helpingtoensuretheeffectiveallocationofscarceresources.Investorsandotherstakeholdersshouldbetterunderstandhowanorganisationisreallyperforming.Inparticulartheyshouldmakeameaningfulassessmentofthelong-termviabilityoftheorganisation’sbusinessmodelanditsIntegratedIntegratedreporting-IntegratedIntegratedreporting-IntegratedreportingIntegratedreporting-Manufacturedphysicalobjectsusedinproductionorserviceprovision:???IntegratedIntegratedreporting-IntegratedIntegratedreporting-IntegratedIntegratedreporting-IntegratedIntegratedreporting-IntegratedIntegratedreporting-GuidingStrategicfocusandfutureInsightsintostrategy,andhowitrelatestoorganisation'sabilitytocreatevalueintheshort,mediumandlongterm,andhowitaffectsthecapitalsIntegratedIntegratedreporting-GuidingConnectivityofAholisticviewofthecombination,interrelatednessanddependenciesbetweenthefactorstheaffecttheabilitytocreatevalueovertimeIntegratedIntegratedreporting-GuidingStakeholderThenatureandqualityofrelationshipswithkeystakeholdersandhowtheirlegitimateneedsandinterestsaretakenintoaccountIntegratedIntegratedreporting-GuidingProvisionofimportantandreliableinformationincludingallmaterialitems,bothpositiveandnegative,inaconcisemannerIntegratedIntegratedreporting-GuidingConsistencyandConsistentovertimeandcomparablewithother(ii)AnevaluationoftheoverallperformanceofDCSCompany(ii)AnevaluationoftheoverallperformanceofDCSCompanybetween20X2and20X5fromanintegratedreporting(12Extractsoftheintegratedreportingdata(20X2~20X5)fromthefinancedirector-ToshFinancialperformance:(allfiguresinFinancialSalesrevenueExtractsoftheintegratedreportingdata(20X2~20X5)fromthefinancedirector-ToshFinancialperformance:(allfiguresinFinancialSalesrevenue(domesticandCostofOverheadFinanceProfitfortheOther NumberofStaffturnover%ofordersdeliveredForwardcontractorderOther NumberofStaffturnover%ofordersdeliveredForwardcontractorderbook(numberofCustomercomplaintsasapercentageoftotalordersandexistingcontractsEmployeesatisfactionsurveyscore(100%Investmentinnon-currentmanufacturingequipmentasapercentageofsalesrevenueR&DexpenditureasapercentageofsalesCarbonemissionsinkgper$1,000salesMJ’sFinancialGrossprofitmarginMJ’sFinancialGrossprofitmarginInterestcover8.11TheThegrossprofitmarginhasdeclinedeveryyearintheperiodunderconsideration,andthereasonsforthisneedtobeHowever,theoperatingcostshavebeenbroughtundercontroltoreflectlessdeterioratedoperatingprofitmargin.In20X5,financecostshaveincreaseddespitethefallinrevenue,leadingtoasuddendeclineinnetprofitmarginintheperiodunderconsideration.Acombinationofdecliningprofitabilityandrisingfinancecosthasresultedininterestcovermultiplesfallingtoadangerous1.26.ManufacturingManufacturingWorkingmanufacturingcapitalseemstobereducing.Thisisconfirmedbytheforwardcontractorderbook.Thishasfallenfrom3,505in20X2to2,500whichwillrequirefewercomponents,work-in-progressandfinishedproductsneededatthefactory.Itisalsoclearthatcapitalbudgetingandinvestmentisslowingfrom10%to7%ofturnoverovertheperiod.TheR&Dbudgetisalsofallingandisat3%ofturnoverin20X5comparedwith6%in20X2,whichisa50%decline.ThesestatisticsindicateacleardepletionofthemanufacturingcapitalofDCS.HumanThereisHumanThereisjustover15%fewerstaffatDCSin20X5comparedwith20X2.ItisalsoclearthatStaffturnoverincreasefrom4%to10%overtheperiod.DCSseemstobeseeingadepletionofhighvaluehumancapitalandmoralemaybeseenaslow.Humancapitalhasperformedreasonablywellfromaproductivityperspective.Analysingthedata,productivityreachedapeakin20X4andhasonlyfallenslightlyinthelastfinancialyear.Howeverthenumberoflatecontractshasdoubledsince20X2andthenumberofcomplaintsfromcustomershasincreasedfrom1.5%ofordersto3.4%.SalesrevenueperemployeeSocialSocialandrelationshipSocialcapitalmeasuresculturalhealthwithinthecompanyandoneofthewaysthiscanbeassessedisbyusingstaffsatisfactionThecaseindicatesthatemployeesatisfactionhasbeendecliningfrom72%in20X2to61%in20X5.Theincreaseintradeunionmembershipmaybeasymptomofthis.IntellectualIntellectualAnotherareawhereDCSseemstobefailingisinitsmaintenanceandtransformationofintellectualcapital.Asstaffturnoverincreasefrom4%to10%overtheperiodandthedecreaseofR&D,therehasbeenadepletionofintellectualcapital,throughskilledstaffbeingeitherunderutilisedorleavingthecompany.NaturalNaturalAlthoughthegovernmentisalsoproposinganewcarbontaxagainstthecompaniesindatacommunicationscomponentsandsystems,theinformationinthecaseshowsthatCarbonemissionshaverisenbyathirdsince20X2.Worsethangrowingcarbon‘footprint’,itisunabletoidentifywherepreciselyinitsvaluechainthecarbonfootprintismost補充補充資1Non-financialperformanceThedirectorsofElevator,apubliclimitedcompanywhichoperatesintheUKtechnologysector,arepaidabonusbasedontheprofitthattheyachieveinayear1Non-financialperformanceThedirectorsofElevator,apubliclimitedcompanywhichoperatesintheUKtechnologysector,arepaidabonusbasedontheprofitthattheyachieveinayear.Employeeshavehistoricallybeenpaidadiscretionarybonusbasedontheirindividualperformanceintheyear.Elevator'syeartodateresultsindicatethatitmaynotachievetherequiredlevelofprofittosecureabonusforthedirectors.Elevator'sChiefExecutiveOfficer(CEO)hassuggestedthatonewayofmanagingthisisnottopaytheemployeesbonusinthecurrentyearwhichwillkeepthewagesandsalariesexpenseataminimum.Elevatorreportsemployeesatisfactionscores,staffturnover,genderequalityandemployeeabsenteeratesasnon-financialperformancemeasuresinitsannualreport.TheCEOhastoldthedirectorsinanemailthat‘nooneeverreadsthenon-financialinformationanyway’andisthereforenotconcernedabouttheimpactofhissuggestionCommentCommentontheethicalconsequencesoftheproposalsmadebytheCEOandthepotentialimplicationsfortheinformationgivenintheannualreport(7marks)Explain,fromtheperspectiveofinvestorsandpotentialinvestor,thebenefitsandpotentialdrawbacksofreportingnon-financialperformancemeasures(4marks)(i)Ethical(i)EthicalEthicalbehaviourinthefairtreatmentofemployeesisimportanttothelongtermsuccessofacompany,andhowitisperceivedbystakeholders.ThedirectorsofElevatorareconsideringnotpayingemployeesadiscretionarybonusinordertoachieveprofittargets.Thiswillenablethedirectorstocollecttheirbonus.Itisworthnotingthatthereisnothingillegalaboutthe-thebonuspaidtoemployeesisdiscretionaryratherthancontractualandthereforethecompanyhasnolegalobligationtopaythebonus.Itisthereasonbehindthenon-paymentthatgivesrisetoethicalconsiderations.ThesuggestionbytheCEOwouldworkinreducingexpensesandimprovingprofit.Morally,Morally,thesuggestionislikelytohavenegativeconsequencesforthecompany.Theemployeeswillbeunhappythattheirbonushasbeenwithdrawn,particularlyiftherehasbeenapastpolicyofpayingannualThismayhaveanegativeimpactonproductivityandstaffmorale,andthereforeonemployeesatisfactionscoresandpossiblyonemployeeretentionratesthatarereportedasnon-financialinformationwithintheannualreport.Itisnotclearwhatthegendercompositionofthecompanyistounderstandwhethertherewouldalsobeimplicationsfortheinformationreportedongenderequality,whichisamatterbeingwidelyreportedinthemedia.Companiesarealsounderincreasingpressuretoreducethewagegapbetweenmanagementandemployees.Notpayingstaffabonuswillhaveanegativeimpactonthismetric.ThecommentsoftheCEOimplythathedoesnotthinkthenegativeThecommentsoftheCEOimplythathedoesnotthinkthenegativeimpactonnon-financialreportingwillhaveanimpactonthecompanyastheinformationisnotwidelyread.Thistypeofinformationisbecomingincreasinglyimportanttotheusersoffinancialstatementsastheycareaboutcompanies'treatmentoftheiremployeesandseeitasbeingimportantinthelongtermsuccessofthecompany.IfElevatordidnotreportemployeematters,itmayhavebeenableto‘hide’theproposaltonotpaytheemployeebonusfromtheusersofthefinancialstatements,howeverthisadditionalreportingwillbringtheissuemoretotheirattention.(ii)Implications(ii)ImplicationsforreportedFinancialperformancemeasuresareoftencriticisedforbeingbackward-lookingastheyreporthistoricalinformation,toofocusedonshort-termismasthereareoftenincentivesforachieving,forexample,profitorrevenuetargetsandforfailingtoprovideenoughrelevantinformationonthefactorsthatdrivethesuccessofthebusiness.Whilstsomespeculativeinvestorsmayonlybeinterestedinshorttermperformance,otherswillbaseinvestmentdecisionsonhowabusinessperformsovertimeandhowwellthebusinessisexpectedtoperforminthefuture.Informationthatcanhelpinvestorstoevaluatethiswillbevaluable.Reportingnon-financialperformanceinformationsuchasthestaffinformationreportedbyElevatorhasthebenefitofdisclosingtotheinvestorsthefactorsthatmanagementconsidersimportantinensuringthelongertermviabilityandsuccessofthebusiness.Staffareseenasimportantassetstobusinessesandemployeesatisfactionisanimportantconsiderationforcompanies.Reportingnon-financialinformationcanhelpcompaniestoattractandretaintheappropriatelevelofstaff..ThereTherearedrawbacksofreportingnon-financialinformation.ItisgenerallymoredifficultforinvestorstoverifythanquantitativeinformationwhichcanleadtoconcernsaboutitsAscompaniesdecidewhatinformationtoreport,itcanbedifficultforinvestorstocomparebetweencompaniesandacrossdifferentperiods.Non-financialinformationisalsomoreopentomanipulationthanIFRS-basedinformationastherearenounderlyingstandardsorprincipleswhichcompaniesmustapply.TheIASB’sDisclosureInitiativeprojectisalsoconcernedastothevolumeofinformationbeingreportedbycompaniesandwhetherextensivedisclosuresarecloudingtheinformationthatisrelevanttoinvestorswithinthefinancialstatements.22 M補充例題AdjustedNAVper‘Adjustednet-assetvalvepershare’(adjustedNAVpershare)isanalternativeperformancemeasure(APM).EntitiesareincreasinglyreportingAPMSinadditiontoIFRSperformancemeasures,suchasearningspershare,inordertoenhanceauser'sunderstandingofthefinancialstatements.ItispossibleforJannetopresentthisAPM,however,itcannotpresentthismeasureinsteadofearningspershare(EPS).EPSisrequiredbyIAS33whichmustbeappliedbylistedentities.Therefore,inordertocomplywithIFRS,EPSanddilutedEPSmustbeAPMSshouldbeprovidedtoenhancetheunderstandingofusersAPMSshouldbeprovidedtoenhancetheunderstandingofusersoftheaccounts.InvestmentpropertiesarelikelytoformthemajorityofJanne’sassets.Thereforemanagementwillbeinterestedintheincreaseinthevalueofthosepropertiesandrelatedfinance(egloans),bothofwhicharetakenintoaccountinadiustedNAVpershare.DisclosingadjustedNAVpershareshouldthereforeenhancetheunderstandingofinvestorasitwillallowthemtoevaluateJannethroughtheeyesofmanagement,Additionaly,asadjustedNAVpershareisusedbyothercompaniesinthesameindustry,disclosingitshouldallowinvestorstomoreeffectivelycomparetheperformanceofJannewithothercompaniesinthesameindustry.However,However,APMScanalsobemisleading.UnlikeEPSthereisnoofficialdefinitionofadjustedNAVPershare,somanagementcanchoosewhatitemstoincludeinthe‘a(chǎn)djustment’.Thereforeitisopentobiasinitscalculationasmanagementcoulddecidetoonlyadjustforitemsthatimprovethemeasure.Inordertocounterthecriticisms,managementshouldprovideadescriptionofwhatisincludedwhenarrivingatadjustedNAVpershareandideallyreconciletheinformationbacktotheIFRSinformationincludedwithinthefinancialstatements.Similarly,inordertobeuseful,thebasisofthecalculationneedstobeconsistentfromyeartoyear,otherwisecomparisonbetweenyearswillbeinaccurate.Furthermore,differentcompaniesmaydefinethesamemeasureindifferentways,whichreducesthecomparabilitybetweenentities.UltimatelyUltimatelyadjustedNAVpersharewillonlyprovideusefulinformationtoJanne'sinvestorsifitisfairlypresented.TheEuropeanSecuritiesandMarketsAuthorityhasdevelopeddraftguidelinesthataddresstheissuessurroundingtheuseofAPMS,whichincludeappropriatedescriptionofAPMS,consistencyfromyeartoyearandguidanceforpresentation.TheIASBhasalsogivenconsiderationtothisissueinitsDiscussionPaperonthePrinciplesofDisclosure.ThisguidanceincludesnotmakingAPMsmoreprominentthanIFRSinformationandreconcilingtheAPMbacktoIFRSmeasures.ItisadvisableforJanne'sdirectorstoconsiderthisguidanceindeterminingwhethertopresentadjustedNAVpershareandhowitshouldbepresented.TheyshouldalsoconsiderwhetherprovidingfurtherinformationintheformofAPMSwillresultinmoreinformationbeingreportedintheannualreportwhichtheyareotherwiseattemptingtoreduce.33AsesstheTheproblemswithReturnonCapitalReturnoncapitalemployed(ROCE)isasimplemeasuretocalculate:itisthepercentagegivenbydividingtheoperatingprofit(profitbeforeinterestandtax)madebyanoperationbyamountofcapital(totalassetslesscurrentliabilities)investedinordertomaketheprofit.Itisausefulmeasureoftheefficiencyofoperations.However,bothelementsoftheROCEfractionpresentproblemsinpractice.Problemswithprofitbeforeinterestandtax(PBIT)ChesterfieldhasaProblemswithprofitbeforeinterestandtax(PBIT)Chesterfieldhasarangeofoperations,withbothmanufacturingandretailcomponentsindiversegeographicallocationsInordertocalculateROCE,ChesterfieldneedstoseparatelycalculateandreportonthePBITforeachoperation.ThemanagementofChesterfieldneeddecidewhatan'operation’isandensurethattheaccountingsystemcanprovidetherelevantinformation.Itisreasonabletoexpectthattheretailoperationswouldgenerateahigherprofitthanthefactories,socomparingretailvmanufacturingisnotareasonablemeasure.Profitisafairlyarbitraryaccountingmeasure.Itdoesnotfocusonthequalityofanoperationsprofits,norhowthatoperationusesandgeneratescash.CashislikelytobeanimportantmeasurewhenconsideringthepotentialrationalisationoftheItisimportantthatthemanagementdonotjustconsidertheItisimportantthatthemanagementdonotjustconsidertheprofitandROCEforthecurrentyear.Theywillhavetoobtainhistoricalinformationinordertodosometrendanalysisonthereturns(whichinitselfhasproblemsashistoricalinformationisnotnecessarilyanindicatoroffutureperformance)orcalculateROCEacrossthenextfewperiodsinordertounderstandthemovementovertime.ProblemsProblemswithcapitalCapitalemployedisallassetslesscurrentliabilitiesofabusiness.Forthebusinessasawholethesefiguresmaybeeasytoidentify,butwhenjudgingtheperformanceoftheseparate0perationsthatmakeupthebusinessitwillbehardtodecidewhatelementofassetssharedbyseveraldifferentoperationsshouldbetakenintoaccount.Forexamplereceivablesandpayablesmaybemanagedcentrallybyheadoffice,ormotorvehiclesusedbyindividualshopsfordeliveriesmightbepartofapoolcoveringseveralshopsinaregion.EveniftheEveniftheassetsusedbyseparateoperationscanbeidentifiedthereisthefurtherproblemofascribingavaluetothem.Ifassetsarevaluedathistoricalcost,thenanolderassetwillhavealowervaluethananidenticaloneacquiredmorerecently,whichwillresultinahigherROCE.ThiscouldmeanthatshopsthathavenothadrecentinvestmentreportabetterROCEthannewershopsorthosethathaverecentlybeenrefitted.Ifthevalueisrestatedatcurrentcost,thismaydisguisetheimpactoftherelativeinefficiencyofolderassetscomparedwithnewerones(forexample,repaircostsandlackoftechnologicalimprovements)Ifdepreciationistakenintoaccount,areallsimilarassetsbeingdepreciatedaccordingtothesameaccountingTheROCEmeasureTheROCEmeasuremay,inanycase,notbeareliableguidetothequalityofthemanagementofthevariousThereisaconsiderabledifferencebetweenthereturnlikelytobeachievablebyafactoryonitsassetscomparedwithashopandits,quitedifferent,assets.Likeshouldbecomparedwithlike,orallowancesshouldbemadefordifferences,otherwiseexercisehasnovalidityIfinvestmentdecisionsaremadecentrallyitmaynotbefairtomeasuremanager'sabilitytoearnareturnoncapitalthatheorshemightnothavechosentoinvestin,inthefirstplace.Ifmanagershavecontrolovertheassetsinuseintheiroperation,theymayinclinedtounder-investinnewassetsinordertokeepcapitalemployedfigurelowwhichwillhelptoinflateROCE.Thisisunlikelytobeintheinterestsofthecompanyasawhole.4cial4cialandenvironmentalThereareanumberoffactorswhichencouragecompaniestodisclosesocialandenvironmentalinformationintheirfinancialstatements.Publicinterestincorporatesocialresponsibilityissteadilyincreasing.Althoughfinancialstatementsareprimarilyintendedforpresentandpotentialinvestors,lendersandothercreditors,thereisgrowingrecognitionthatcompaniesactuallyhaveanumberofdifferentstakeholders.Theseincludecustomers,employeesandthegeneralpublic,allofwhomarepotentiallyinterestedinthewayinwhichacompany‘soperationsaffectthenaturale