【正确答案】(i) IAS 1 Presentation of Financial Statementsdefines profit or loss as ‘the total of income less expenses, excluding thecomponents of other comprehensive income’ and other comprehensive income as comprising ‘items of income andexpense (including reclassification adjustments) that are not recognised in profit or loss as required or permitted by otherIFRSs’. IFRS currently requires the statement of profit or loss and other comprehensive income to be presented as eitherone statement, being a combined statement of profit or loss and other comprehensive income or two statements, beingthe statement of profit or loss and the statement of comprehensive income. An entity has to show separately in OCI,those items which would be reclassified (recycled) to profit or loss and those items which would never be reclassified(recycled) to profit or loss. The related tax effects have to be allocated to these sections. IAS 1 states that profit or loss includes all items of income or expense (including reclassification adjustments) exceptthose items of income or expense which are recognised in OCI as required or permitted by IFRS. IAS 1 further statesthat the other comprehensive income section is required to present line items which are classified by their nature, andgrouped between those items which will or will not be reclassified to profit and loss in subsequent periods. (ii) Reclassification adjustments are amounts recycled to profit or loss in the current period which were recognised in OCIin the current or previous periods. An example of items recognised in OCI which may be reclassified to profit or loss areforeign currency gains on the disposal of a foreign operation and realised gains or losses on cash flow hedges. Those items which may not be reclassified are changes in a revaluation surplus under IAS 16 Property, Plant and Equipment ,and actuarial gains and losses on a defined benefit plan under IAS 19 Employee Benefits. However, there is a generallack of agreement about which items should be presented in profit or loss and in OCI. The interaction between profit orloss and OCI is unclear, especially the notion of reclassification and when or which OCI items should be reclassified. Acommon misunderstanding is that the distinction is based upon realised versus unrealised gains. There are several arguments for and against reclassification. If reclassification ceased, then there would be no need todefine profit or loss, or any other total or subtotal in profit or loss, and any presentation decisions can be left to specificIFRSs. It is argued that reclassification protects the integrity of profit or loss and provides users with relevant informationabout a transaction which occurred in the period. Additionally, it can improve comparability where IFRS permits similaritems to be recognised in either profit or loss or OCI. Those against reclassification argue that the recycled amounts add to the complexity of financial reporting, may lead toearnings management and the reclassification adjustments may not meet the definitions of income or expense in theperiod as the change in the asset or liability may have occurred in a previous period. Those against reclassification argue that the recycled amounts add to the complexity of financial reporting, may lead toearnings management and the reclassification adjustments may not meet the definitions of income or expense in theperiod as the change in the asset or liability may have occurred in a previous period. The lack of a consistent basis for determining how items should be presented has led to an inconsistent use of OCI inIFRS. Opinions vary but there is a feeling that OCI has become a home for anything controversial because of a lack ofclear definition of what should be included in the statement. Many users are thought to ignore OCI, as the changesreported are not caused by the operating flows used for predictive purposes. A Discussion Paper on the Conceptual Framework is seeking to clarify what distinguishes recognised items of incomeand expense which are presented in profit or loss from items of income and expense presented in OCI. It further wishesto clarify why items presented in OCI in one period should be reclassified into profit or loss in the same period or a laterperiod. It suggests that the Conceptual Framework should require a profit or loss total or subtotal which also results, orcould result, in some items of income or expense being recycled and should limit the use of OCI to items of income orexpense resulting from changes in current measures of assets and liabilities (remeasurements). However, not all suchremeasurements would be eligible for recognition in OCI. (iii)The International Integrated Reporting Council (IIRC) has released a framework for integrated reporting. The Framework establishes principles and concepts which govern the overall content of an integrated report. An integrated report setsout how the organisation’s strategy, governance, performance and prospects can lead to the creation of value. The IIRChas set out a principles-based framework rather than specifying a detailed disclosure and measurement standard. Thisenables each company to set out its own report rather than adopting a checklist approach. The integrated report aimsto provide an insight into the company’s resources and relationships, which are known as the capitals and how thecompany interacts with the external environment and the capitals to create value. These capitals can be financial,manufactured, intellectual, human, social and relationship, and natural capital but companies need not adopt theseclassifications. Integrated reporting is built around the following key components: (i)Organisational overview and the external environment under which it operates (ii)Governance structure and how this supports its ability to create value (iii)Business model (iv) Risks and opportunities and how they are dealing with them and how they affect the company’s ability to createvalue (v)Strategy and resource allocation (vi)Performance and achievement of strategic objectives for the period and outcomes (vii)Outlook and challenges facing the company and their implications (viii)The basis of presentation needs to be determined including what matters are to be included in the integrated report and how the elements are quantified or evaluated. The Framework does not require discrete sections to be compiled in the report but there should be a high level reviewto ensure that all relevant aspects are included. An integrated report should provide insight into the nature and qualityof the organisation’s relationships with its key stakeholders, including how and to what extent the organisationunderstands, takes into account and responds to their needs and interests. Further, the report should be consistent overtime to enable comparison with other entities. The IIRC considered the nature of value and value creation. These terms can include the total of all the capitals, thebenefit captured by the company, the market value or cash flows of the organisation and the successful achievement ofthe company’s objectives. However, the conclusion reached was that the Framework should not define value from anyone particular perspective because value depends upon the individual company’s own perspective. It can be shownthrough movement of capital and can be defined as value created for the company or for others. An integrated reportshould not attempt to quantify value as assessments of value are left to those using the report. The report does not contain a statement from those ‘charged with governance’ acknowledging their responsibility for theintegrated report. This may undermine the reliability and credibility of the integrated report. There has been discussionabout whether the Framework constitutes suitable criteria for report preparation and for assurance. There is a degree ofuncertainty as to measurement standards to be used for the information reported and how a preparer can ascertain thecompleteness of the report. The IIRC has stated that the prescription of specific measurement methods is beyond thescope of a principles-based framework. The Framework contains information on the principles-based approach andindicates that there is a need to include quantitative indicators whenever practicable and possible. Additionally,consistency of measurement methods across different reports is of paramount importance. There is outline guidance onthe selection of suitable quantitative indicators. There are additional concerns over the ability to assess future disclosures, and there may be a need for confidenceintervals to be disclosed. The preparation of an integrated report requires judgement but there is a requirement for thereport to describe its basis of preparation and presentation, including the significant frameworks and methods used toquantify or evaluate material matters. Also included is the disclosure of a summary of how the company determined themateriality limits and a description of the reporting boundaries. A company should consider how to describe the disclosures without causing a significant loss of competitive advantage.The entity will consider what advantage a competitor could actually gain from information in the integrated report, andwill balance this against the need for disclosure.

【正确答案】At 30 April 2015, Cloud should write down the steel, in accordance with IAS 2 Inventories, to its net realisable value of $6 million, therefore reducing profit by $2 million. Cloud should reclassify an equivalent amount of $2 million from equity toprofit or loss. Thus there is no net impact on profit or loss of the write down of inventory. The gain remaining in equity of $1 million will affect profit or loss when the steel is sold. Therefore on 3 June 2015, the gain on the sale of $0·2 millionwith be recognised in profit or loss, and the remaining gain of $1 million will be transferred to profit or loss from equity. As regards the property, plant and equipment, at 30 April 2014, there is a revaluation gain of $4 million being the differencebetween the carrying amount of $8 million ($10 million –$2 million) and the revalued amount of $12 million. Thisrevaluation gain is recognised in other comprehensive income. At 30 April 2015 the asset’s value has fallen to $4 million and the carrying amount of the asset is $9 million ($12 million –$3 million). The entity will have transferred $1 million from revaluation surplus to retained earnings being the differencebetween historical cost depreciation of $2 million and that on the revalued amount depreciation of $3 million. The revaluationloss of $5 million will be charged first against the revaluation surplus remaining in equity of ($4 million –$1 million), i.e.$3 million and the balance of $2 million will be charged against profit or loss. IAS 1 requires an entity to present a separate statement of changes in equity showing amongst other items, totalcomprehensive income for the period, reconciliations between the carrying amounts at the beginning and the end of the periodfor each component of equity, and an analysis of other comprehensive income.