Instructor’s Manual V
International Financi V
al Reporting: A Pract
V V V
ical Guide V
Eighth editionV
Alan Melville
V
ForVfurtherVinstructorVmaterialVplea
seVvisit:
go.pearson.com/uk/he/resources
ISBN:V 978-1-292-43945-7
©VPearsonVEducationVLimitedV2022
LecturersVadoptingVtheVmainVtextVareVpermittedVtoVdownloadVandVphotocopyVtheVmanualVasVreq
uired.
,PEARSONVEDUCATIONVLIMITED
KaoVTwoV
KaoVParkV
HarlowVC
M17V9NA
UnitedVKingdom
Tel:V+44V(0)1279V623623
Web:Vwww.pearson.com/uk
ThisVeditionVpublishedV2022
©VPearsonVEducationVLimitedV2022
TheVrightsVofVAlanVMelvilleVtoVbeVidentifiedVasVauthorVofVthisVworkVhasVbeenVassertedV
byVhimVinVaccordanceVwithVtheVCopyright,VDesignsVandVPatentsVActV1988.
PearsonVEducationVisVnotVresponsibleVforVtheVcontentVofVthird-partyVinternetVsites.
ISBN:V 978-1-292-V43945-7
AllVrightsVreserved.VPermissionVisVherebyVgivenVforVtheVmaterialVinVthisVpublicationVt
oVbeVreproducedVforVOHPVtransparenciesVandVstudentVhandouts,VwithoutVexpressVperm
issionVofVtheVPublishers,VforVeducationalVpurposesVonly.VInVallVotherVcases,VnoVpartVo
fVthisVpublicationVmayVbeVreproduced,VstoredVinVaVretrievalVsystem,VorVtransmittedVinV
anyVformVorVbyVanyVmeans,Velectronic,Vmechanical,Vphotocopying,Vrecording,VorVother
wiseVwithoutVeitherVtheVpriorVwrittenVpermissionVofVtheVPublishersVorVaVlicenceVperm
ittingVrestrictedVcopyingVinVtheVUnitedVKingdomVissuedVbyVtheVCopyrightVLicensingV
AgencyVLtd.,VBarnard’sVInn,V86VFetterVLane,VLondonVEC4AV1EN.VThisVbookVmayVno
tVbeVlent,Vresold,VhiredVoutVorVotherwiseVdisposedVofVbyVwayVofVtradeVinVanyVformV
ofVbindingVorVcoverVotherVthanVthatVinVwhichVitVisVpublished,VwithoutVtheVpriorVcons
entVofVtheVPublishers.
ThisVpublicationVcontainsVcopyrightVmaterialVofVtheVIFRS®V FoundationVinVrespectVofV
whichVallVrightsVareVreserved.VReproducedVbyVPearsonVEducation,VLtdVwithVtheVpermi
ssionVofVtheVIFRSVFoundation.VNoVpermissionVgrantedVtoVthirdVpartiesVtoVreproduceVo
rVdistribute.VForVfullVaccessVtoVIFRSVStandardsVandVtheVworkVofVtheVIFRSVFoundatio
nVpleaseVvisitVhttp://eifrs.ifrs.org.
TheVInternationalVAccountingVStandardsVBoard®,VtheVIFRSVFoundation,VtheVauthorsVan
dVtheVpublishersVdoVnotVacceptVresponsibilityVforVanyVlossVcausedVbyVactingVorVrefrai
ningVfromVactingVinVrelianceVonVtheVmaterialVinVthisVpublication,VwhetherVsuchVlossV
isVcausedVbyVnegligenceVorVotherwise.
, Melville:VInternationalVFinancialVReporting,VInstructor'sVManual,V8thVed
ition
Contents
PrefaceVAcknowledg v
ements V
vi
ChapterV1 TheVregulatoryVframeworkVSoluti
onsV1.8VandV1.9 1
ChapterV2 TheVIASB®VconceptualVframewor
kVSolutionsV2.7VandV2.8 3
ChapterV3 PresentationVofVfinancialVstatementsVSolut
ionV3.7 5
ChapterV4 AccountingVpolicies,VestimatesVandVerrors
VSolutionV4.7,V4.8VandV4.9 8
ChapterV5 Property,VplantVandVequipmentVS
olutionsV5.7VandV5.8 10
ChapterV6 IntangibleVassetsVSo
lutionsV6.8VandV6.9 13
ChapterV7 ImpairmentVofVasset
sVSolutionsV7.7Vand 15
V7.8
ChapterV8 Non-
currentVassetsVheldVforVsaleVandVdiscontinuedVoperationsVSolutio 16
nV8.7
ChapterV9 Leases
SolutionsV9.7VandV9.8 17
ChapterV10 Inventories
SolutionsV10.5VandV10.6 19
ChapterV11 FinancialVinstrument
sVSolutionV11.6 21
ChapterV12 ProvisionsVandVeventsVafterVtheVreportingVperiodVSol
utionV12.8 23
ChapterV13 RevenueVfromVcontractsVwithVcustomersV
SolutionsV13.7VandV13.8 24
ChapterV14 EmployeeVbenefitsVSolutio
nsV14.6VandV14.7 26
ChapterV15 TaxationVinVfinancialVstatementsV
SolutionsV15.7,V15.8VandV15.9 28
ChapterV16 StatementVofVcashVflowsVSoluti
onsV16.8,V16.9VandV16.10 34
ChapterV17 FinancialVreportingVinVhyperinflationaryVeconomiesV
SolutionV17.5 39
iii
©V2022VPearsonVEducationVLimited.VAllVRightsVReser
ved.
, Melville:VInternationalVFinancialVReporting,VInstructor'sVManual,V8thVed
ition
ChapterV18 GroupsVofVcompaniesV(1)VSoluti
onsV18.6VandV18.7 40
ChapterV19 GroupsVofVcompaniesV(2)VSoluti
onsV19.5VandV19.6 45
ChapterV20 AssociatesVandVjointVarrangementsVSolut
ionV20.5 51
ChapterV21 RelatedVpartiesVandVchangesVinVforeignVexchangeVratesVSo
lutionV21.4 53
ChapterV22 RatioVanalysis
SolutionsV22.5,V22.6VandV22.7 54
ChapterV23 EarningsVperVshare
SolutionsV23.6,V23.7,V23.8VandV23.9 59
ChapterV24 SegmentalVanalysi
sVSolutionV24.6 61
iv
©V2022VPearsonVEducationVLimited.VAllVRightsVReser
ved.
International Financi V
al Reporting: A Pract
V V V
ical Guide V
Eighth editionV
Alan Melville
V
ForVfurtherVinstructorVmaterialVplea
seVvisit:
go.pearson.com/uk/he/resources
ISBN:V 978-1-292-43945-7
©VPearsonVEducationVLimitedV2022
LecturersVadoptingVtheVmainVtextVareVpermittedVtoVdownloadVandVphotocopyVtheVmanualVasVreq
uired.
,PEARSONVEDUCATIONVLIMITED
KaoVTwoV
KaoVParkV
HarlowVC
M17V9NA
UnitedVKingdom
Tel:V+44V(0)1279V623623
Web:Vwww.pearson.com/uk
ThisVeditionVpublishedV2022
©VPearsonVEducationVLimitedV2022
TheVrightsVofVAlanVMelvilleVtoVbeVidentifiedVasVauthorVofVthisVworkVhasVbeenVassertedV
byVhimVinVaccordanceVwithVtheVCopyright,VDesignsVandVPatentsVActV1988.
PearsonVEducationVisVnotVresponsibleVforVtheVcontentVofVthird-partyVinternetVsites.
ISBN:V 978-1-292-V43945-7
AllVrightsVreserved.VPermissionVisVherebyVgivenVforVtheVmaterialVinVthisVpublicationVt
oVbeVreproducedVforVOHPVtransparenciesVandVstudentVhandouts,VwithoutVexpressVperm
issionVofVtheVPublishers,VforVeducationalVpurposesVonly.VInVallVotherVcases,VnoVpartVo
fVthisVpublicationVmayVbeVreproduced,VstoredVinVaVretrievalVsystem,VorVtransmittedVinV
anyVformVorVbyVanyVmeans,Velectronic,Vmechanical,Vphotocopying,Vrecording,VorVother
wiseVwithoutVeitherVtheVpriorVwrittenVpermissionVofVtheVPublishersVorVaVlicenceVperm
ittingVrestrictedVcopyingVinVtheVUnitedVKingdomVissuedVbyVtheVCopyrightVLicensingV
AgencyVLtd.,VBarnard’sVInn,V86VFetterVLane,VLondonVEC4AV1EN.VThisVbookVmayVno
tVbeVlent,Vresold,VhiredVoutVorVotherwiseVdisposedVofVbyVwayVofVtradeVinVanyVformV
ofVbindingVorVcoverVotherVthanVthatVinVwhichVitVisVpublished,VwithoutVtheVpriorVcons
entVofVtheVPublishers.
ThisVpublicationVcontainsVcopyrightVmaterialVofVtheVIFRS®V FoundationVinVrespectVofV
whichVallVrightsVareVreserved.VReproducedVbyVPearsonVEducation,VLtdVwithVtheVpermi
ssionVofVtheVIFRSVFoundation.VNoVpermissionVgrantedVtoVthirdVpartiesVtoVreproduceVo
rVdistribute.VForVfullVaccessVtoVIFRSVStandardsVandVtheVworkVofVtheVIFRSVFoundatio
nVpleaseVvisitVhttp://eifrs.ifrs.org.
TheVInternationalVAccountingVStandardsVBoard®,VtheVIFRSVFoundation,VtheVauthorsVan
dVtheVpublishersVdoVnotVacceptVresponsibilityVforVanyVlossVcausedVbyVactingVorVrefrai
ningVfromVactingVinVrelianceVonVtheVmaterialVinVthisVpublication,VwhetherVsuchVlossV
isVcausedVbyVnegligenceVorVotherwise.
, Melville:VInternationalVFinancialVReporting,VInstructor'sVManual,V8thVed
ition
Contents
PrefaceVAcknowledg v
ements V
vi
ChapterV1 TheVregulatoryVframeworkVSoluti
onsV1.8VandV1.9 1
ChapterV2 TheVIASB®VconceptualVframewor
kVSolutionsV2.7VandV2.8 3
ChapterV3 PresentationVofVfinancialVstatementsVSolut
ionV3.7 5
ChapterV4 AccountingVpolicies,VestimatesVandVerrors
VSolutionV4.7,V4.8VandV4.9 8
ChapterV5 Property,VplantVandVequipmentVS
olutionsV5.7VandV5.8 10
ChapterV6 IntangibleVassetsVSo
lutionsV6.8VandV6.9 13
ChapterV7 ImpairmentVofVasset
sVSolutionsV7.7Vand 15
V7.8
ChapterV8 Non-
currentVassetsVheldVforVsaleVandVdiscontinuedVoperationsVSolutio 16
nV8.7
ChapterV9 Leases
SolutionsV9.7VandV9.8 17
ChapterV10 Inventories
SolutionsV10.5VandV10.6 19
ChapterV11 FinancialVinstrument
sVSolutionV11.6 21
ChapterV12 ProvisionsVandVeventsVafterVtheVreportingVperiodVSol
utionV12.8 23
ChapterV13 RevenueVfromVcontractsVwithVcustomersV
SolutionsV13.7VandV13.8 24
ChapterV14 EmployeeVbenefitsVSolutio
nsV14.6VandV14.7 26
ChapterV15 TaxationVinVfinancialVstatementsV
SolutionsV15.7,V15.8VandV15.9 28
ChapterV16 StatementVofVcashVflowsVSoluti
onsV16.8,V16.9VandV16.10 34
ChapterV17 FinancialVreportingVinVhyperinflationaryVeconomiesV
SolutionV17.5 39
iii
©V2022VPearsonVEducationVLimited.VAllVRightsVReser
ved.
, Melville:VInternationalVFinancialVReporting,VInstructor'sVManual,V8thVed
ition
ChapterV18 GroupsVofVcompaniesV(1)VSoluti
onsV18.6VandV18.7 40
ChapterV19 GroupsVofVcompaniesV(2)VSoluti
onsV19.5VandV19.6 45
ChapterV20 AssociatesVandVjointVarrangementsVSolut
ionV20.5 51
ChapterV21 RelatedVpartiesVandVchangesVinVforeignVexchangeVratesVSo
lutionV21.4 53
ChapterV22 RatioVanalysis
SolutionsV22.5,V22.6VandV22.7 54
ChapterV23 EarningsVperVshare
SolutionsV23.6,V23.7,V23.8VandV23.9 59
ChapterV24 SegmentalVanalysi
sVSolutionV24.6 61
iv
©V2022VPearsonVEducationVLimited.VAllVRightsVReser
ved.
