PSAK 50 dan 55. Dwi Martani Ketua Departemen Akuntansi FEUI Anggota Tim Implementasi IFRS

PSAK 50 dan 55 Overview Dwi Martani Ketua Departemen Akuntansi FEUI Anggota Tim Implementasi IFRS

1

Agenda

1

Overview PSAK 50 dan 55 dan perubahanya

2

Definisi

3

Pengakuan, g pengukuran, p g penyajian p y j

4

Ilustrasi dan Contoh

2

Instrumen Keuangan 50,55,60 Instrumen Keuangan IAS 32

IAS 39

PSAK 50

PSAK 55

• Definisi dan klasifikasi • Pemisahan liabilitas keuangan dan ekuitas • Akuntansi untuk instrumen keuangan majemuk. • Akuntansi untuk penarikan saham dan saham treasury • Saling hapus atas aset dan liablitas

•

Definisi, klasifikasi Definisi dan reklasifikasi • Pengakuan dan penghapusan • Pengukuran setelah pengakuan awal • Akuntansi untuk derivarif untuk diperdagangkan dan hedging.

IFRS 7 PSAK 60 ƒ Pengungkapan instrumen keuangan dan risiko

3

Challenging issues from financial instruments

Distinguishing b t between financial fi i l liability and equity instrument

Separation of embedded derivatives

Recognition of “off-balance sheet” instruments including executory contracts Different accounting treating for hedging and trading instruments

4

Perbandingan Pengaturan - Transaksi ƒ PSAK 50 (1998): ƒ Investor ƒ Investasi dalam efek tertentu • Efek utang • Efek ekuitas

ƒ PSAK 55 (1999): ƒ Investor ƒ Intrumen derivatif dan transaksi lindung nilai.

ƒ Aspek Perlakuan Akuntansi: ƒ Pengakuan, Pengukuran, Penyajian dan Pengungkapan

ƒ PSAK 50 (Rev. 2010): ƒ Penerbit efek ƒ Penyajian Kewajiban keuangan dan Ekuitas ƒ saling hapus aset keuangan dengan kewajiban keuangan ƒ Revisi 2010 Æ Puttable instrument

ƒ PSAK 55 (Rev.2006): ƒ Investor/pemilik hak tagih ƒ Pengakuan dan pengukuran • Instrumen keuangan – Aset keuangan – Kewajiban e aj ba keuangan eua ga

ƒ Instrumen derivatif ƒ Akuntansi lindung nilai

ƒ PSAK 60 (Rev.2010): ƒ P Pengungkapan k i t instrumen keuangan 5

Perbedaan Pengaturan ƒ Ruang lingkup ƒ Pengakuan ƒ Kategori instrumen keuangan ƒ Fair value al e option

ƒ Reklasifikasi ƒ Penurunan nilai ƒ Penghentian pengakuan

6

PSAK 50 R –

Instrumen Keuangan Penyajian

ƒ Skop meliputi seluruh tipe instrumen keuangan ƒ Definisi detail atas instrumen keuangan : aset keuangan, liabilitas keuangan dan instrumen ekuitas k it ƒ Instrumen ekuitas adalah kontrak yang memberikan b ik kkepada d pemegangnya h hak k residu id atas aset entitas setelah dikurangi dengan semua liabilitas ƒ Alokasi nilai buku instrumen keuangan untuk komponen ekuitas dan utang utang. Nilai utang ditetapkan terlebih dahulu 7

PSAK 50 R –

Instrumen Keuangan Penyajian

ƒ Pembelian saham diperoleh kembali (treasury stock) dicatat sebagai perubahan atas ekuitas sehingga tidak ada keuntungan/kerugian yang diakui ƒ Termasuk dalam definisi aset dan liabilitas keuangan adalah kontrak yang diselesaikan dengan instrumen ekuitas suatu entitas. ƒ Aset dan liabilitas keuangan diakui ketika entitas mengambil bagian dalam suatu kontrak provisi atas suatu instrumen 8

PSAK 50 R (2010) –

Instrumen Keuangan Penyajian

ƒ Semua ketentuan tentang pengungkapan dipindahkan ke PSAK 60 (IFRS 7) ƒ Tambahan pengaturan khusus tentang : ƒ puttable p instrument , kewajiban j untuk menyerahkan y bagian g aset neto secara prorata saat likuidasi, dan rights, opsi, waran dikategorikan dan disajikan sebagai liabilitas keuangan, akan tetapi dapat dikategorikan sebagai instrumen ekuitas jika memenuhi syarat-syarat tertentu.puttable instrument

ƒ Instrumen yang mempunyai fitur opsi jual (puttable instrument) adalah instrumen keuangan yang memberikan hak kepada pemegangnya untuk menjual j kembali instrumen kepada p p penerbit dan memperoleh p kas atau aset keuangan lain atau secara otomatis menjual kembali kepada penerbit pada saat terjadinya suatu peristiwa yang tidak pasti di masa yang akan datang atau kematian atau purna karya dari pemegang instrumen.

9

PSAK 55 R – Instrumen keungan pengakuan dan Pengukuran ► Instrumen keuangan diukur pada pengakuan awal sebesar nilai wajar ditambah dengan biaya transaksi kecuali untuk instrumen yang diukur dengan menggunakan nilai wajar. ► Penghapusan (dererecognition) aset keuangan didasarkan atas kombinasi “risk and reward” dan pendekatan pengendalian. Evaluasi atas risk and reward diakukan sebelum evaluasi atas transfer pengendalian ► Pengakuan gain/loss atas penghapusan (extinguishment) liabilitas keuangan ketika utang baru diterbitkan memiliki persyaratan (term) yang berbeda dengan utang lama. ► Restrukturisasi utang yang menyebabkan modifikasi p menghasilkan g g gain/loss p pada saat substansial term dapat penerbitan liabilitas baru. 10

PSAK 55 R – Instrumen keungan pengakuan dan Pengukuran ƒ Empat kategori aset keuangan: 1. 2. 3. 4.

Aset keuangan g y yang g ditetapkan p untuk diukur p pada nilai wajar j melalui laporan laba rugi; Investasi dimiliki hingga jatuh tempo; Pinjaman yang diberikan atau piutang; dan Aset keuangan tersedia untuk dijual.

ƒ Dua kategori liabilitas keuangan 1) Kewajiban keuangan yang diukur pada nilai wajar melalui laporan laba rugi 2) Kewajiban lain

ƒ Pengukuran aset keuangan dengan menggunakan nilai wajar dalam arti luas ƒ Beberapa perbedaan dalam praktik dalam mengidentifikasi derivatif majemuk. 11

PSAK 55 R – Instrumen keungan pengakuan dan Pengukuran ƒ Harga pasar atas aset yang dimiliki atau liabilitas yang akan k diterbitkan dit bitk adalah d l hh harga penawaran(bid (bid price) i )d dan untuk aset yang akan dibeli atau liabilitas yang dimiliki adalah harga permintaan (asking price). ƒ Pengukuran instrumen keuangan sebesar nilai amortisasi, premium dan diskon dimartisasi dengan menggunakan effective interest rate rate. ƒ Aturan tainting atas held to maturity investment, pembatasan selama 2 tahun tidak boleh melakukan transfer antar kategori investasi.

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PSAK 55 R – Instrumen keungan pengakuan dan Pengukuran ► Bukti obyektif atas penurunan nilai aset keuangan dan penilaiannya dilakukan setiap tanggal laporan keuangan. ► Penilaian penurunan nilai dilakukan secara individu dan k l k if kolektif ► Pembalikan atas penurunan atas piutang, investasi HTM dan AFS instrumen utang dapat dilakukan jika memenuhi kriteria. ► Reklasifikasi menjadi atau keluar dari FVPL dilarang f yang didesain untuk tujuan hedging

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PSAK 60 –

Instrumen Keuangan Pengungkapan

ƒ Secara lebih tegas mensyaratkan Entitas harus untuk mengungkapkan informasi yang memungkinkan pengguna laporan keuangan untuk mengevaluasi signifikansi instrumen keuangan terhadap posisi dan kinerja keuangan. ƒ Pengungkapan hirarki nilai wajar ƒ Tingkat 1 harga kuotasi pasar ƒ Tingkat 2 Input selain harga kuotasian (dapat diobservasi) ƒ Tingkat 3 Input yang bukan berdasar harga pasar ƒ Jenis dan tingkat risiko yang timbul dari instrumen keuangan ƒ Pengungkapak kualitatif (ekposure timbulnya risiko, tujuan, kebijak dan proses penelolaan risiko) ƒ Pengungkapan kuantatif (risiko kredit, risiko likuiditas, analisa sensitivitas) 14

Klasifikasi Instrumen Keuangan Definisi Instrumen Keuangan setiap kontrak yang menambah nilai aset keuangan entitas dan kewajiban keuangan atau instrumen ekuitas entitas lain Aset Keuangan Kas

Instrumen ekuitas entitas lain

Hak kontraktual

Kontrak diselesaikan dengan instrumen ekuitas entitas

Liabilitas keuangan Kewajiban j kontraktual

kontrak yang diselesaikan dengan instrumen ekuitas entitas

Ekuitas Kontrak yang memberikan hak residual atas aset suatu entitas setelah ikurangi dengan seluruh kewajibannya 15

Instrumen Keuangan ƒ setiap kontrak yang menambah nilai: ► aset keuangan g entitas , dan ((disisi lain)) ► kewajiban keuangan atau instrumen ekuitas entitas lain. ►Aset Keuangan

ƒ Kas ƒ Instrumen ekuitas yang diterbitkan entitas lain ƒ Hak kontraktual: • untuk menerima kas atau aset keuangan lainnya dari entitas lain; atau • untuk mempertukarkan aset keuangan dengan entitas lain dengan kondisi berpotensi untung; atau ƒ Kontrak yang akan diselesaikan dengan penerbitan instrumen ekuitas entitas • nonderivatif • derivatif

►Kewajiban Keuangan ƒ Kewajiban kontraktual: • untuk menyerahkan kas atau aset keuangan lain kepada entitas lain; atau • untuk mempertukarkan aset keuangan atau kewajiban keuangan dengan entitas tit lain l i dengan d k di i yang kondisi berpotensi tidak menguntungkan entitas; ƒ kontrak yang akan atau mungkin diselesaikan dengan g menggunakan gg instrumen ekuitas yang diterbitkan entitas dan merupakan suatu: • non derivatif; atau • derivatif

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Ruang Lingkup PSAK 50 & 55

PSAK 50

DiluarPSAK 50 & 5

Investasi Efek Utang dan Efek Ekuitas

Investasi di anak perusahaan, perusahaan asosiasi, ventura

Kredit dan tagihan

Piutan sewa

Utang

Ekuitas

Utang sewa, Utang Pajak dan M f t Karyawan Manfaat K

Derivatif yang ditukarkan dengan kas atau aset keuangan lain atau instrumen ekuitas entitas

Kotrak komoditi yang digunakan sendiri Jaminan keuangan

Kas dan Setara Kas Derivatif

Derivatif pada anak perusahaan, asosiasi i id dan ventura Derivatif melekat Komitmen pinjaman yang tersedia untuk dijual

Komitmen pinjaman lainnya Kontrak asuransi 17

Jenis Instrumen Keuangan Instrumen Keuangan Aset Keuangan

Liabilitas Keuangan

Aset Keuangan yang diukur pada nilai wajar p j melalui laporan laba rugi

Liabilitas Keuangan yang diukur pada nilai wajar melalui laporan laba rugi

Investas dimiliki hingga gg jjatuh tempo Pinjaman diberikan dan Piutang Aset keuangan tersedia untuk dijual

Kewajiban Lainnya

Instrumen Ekuitas

Instrumen Derivatif

Instrumen Lindung Nilai

Instrumen Ekuitas Biasa

Derivatif Biasa

Atas Nilai Wajar

Instrumen Ekuitas Majemuk j

Derivatif Melekat

Atas Arus Kas

Instrumen Ekuitas Sinstesis

Atas Investasi Neto pada Operasi Luar Negeri

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Kategori Aset Keuangan Pinjaman atau Piutang

NO

Bentuk Investasi dlm Utang

NO

Tujuan Spekulatif NO

YES YES

Keinginan memegang

Available for Sale

Trading

Diukur dg Nilai Wajar

YES Held to maturity

YES

No

YES

Nilai Wajar Nilai Beli

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Aset/Kewajiban Keuangan yang Diukur pada Nilai Wajar melalui Laporan Laba Rugi

‰ Diperdagangkan: p g g – Diperoleh/dimiliki untuk tujuan dijual/dibeli kembali dalam waktu dekat (trading); – Bagian dari portofolio instrumen keuangan tertentu yang memiliki pola ambil untung dalam jangka pendek; atau – merupakan derivatif (kecuali derivatif yang ditetapkan sebagai instrumen lindung nilai dan efektif).

‰ Ditetapkan untuk dinilai pada Nilai Wajar melalui L Laporan L b Rugi Laba R i

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Investasi Dimiliki hingga Jatuh Tempo

Kriteria: ƒ Aset keuangan non derivatif; ƒ Pembayaran P b tetap/telah ditentukan; ƒ Jatuh tempo telah ditetapkan; ƒ Entitas memiliki maksud dan kemampuan untuk memiliki hingga jatuh tempo

Kecuali: ¾dit t k ¾ditetapkan sbg b asett keu pada nilai wajar melalui L/R; ¾ ditetapkan sbg AFS; ¾ memenuhi definisi pinjaman yang diberikan dan piutang.

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Pinjaman Diberikan dan Piutang

Kecuali:

Kriteria: ƒ Aset keuangan non derivatif; ƒ Pembayaran tetap/telah / l h ditentukan; di k ƒ tidak mempunyai kuotasi di pasar aktif,

¾ dimaksudkan utk dijual dlm waktu dekat (trading); ¾ ditetapkan sbg aset keu pada nilai wajar mel L/R; ¾ diklasifikasikan sbg g AFS;; ¾ pinjaman yang diberikan/ piutang yg investasi awalnya tdk akan diperoleh kembali scr substansial (kecuali krn penurunan kualitas), shg hrs diklasifikasikan sbg AFS.

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Aset Keuangan Tersedia untuk Dijual Kriteria:: Kriteria ƒ Aset keuangan non derivatif; ƒ Ditetapkan sebagai AFS; AFS; ƒ Tidak diklasifikasikan sbg sbg:: ƒ pinjaman yang diberikan diberikan//piutang, piutang, ƒ dimiliki hingga jatuh tempo, atau ƒ dinilai p pada nilai wajar j melalui L/R. / 23

Saling Hapus ƒ Aset keuangan dan liabilitas keuangan saling hapus dan nilai netonya disajikan dalam laporan posisi keuangan jika, dan hanya jika, entitas: ƒ saat ini memiliki hak yang dapat dipaksakan secara hukum untuk melakukan l k k saling li hapus h atas t jumlah j l h yang telah t l h di diakui k i tersebut; t b t dan d ƒ berniat untuk menyelesaikan secara neto atau untuk merealisasikan aset dan menyelesaikan liabilitasnya secara simultan.

ƒ Dalam akuntansi untuk transfer atas aset keuangan yang tidak memenuhi kualifikasi penghentian pengakuan, maka entitas tidak boleh melakukan saling hapus aset keuangan yang y g ditransfer dan liabilitas terkait

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Ilustration ƒ In 2007 an entity enters into a contract that requires it to issue shares to the value of CU10,000 on 1 January 2010. ƒ This is a financial liabilityy since the entityy is required to settle the contract by issuing a variable number of shares based on a fixed monetary amount.

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Review ƒ In accordance with IAS32 Financial instruments: presentation, which ONE of the following types of instrument is best described as a contract that evidences a residual interest in the assets of an entity after deducting the liabilities? ƒ ƒ ƒ ƒ

A Financial liability B Guarantee C Equity. D Financial asset

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Review ƒ In accordance with IAS32 Financial instruments: presentation, which ONE of the following types of instrument is best described as a contract that evidences a residual interest in the assets of an entity after deducting the liabilities? ƒ ƒ ƒ ƒ

A Financial liability B Guarantee C Equity. D Financial asset

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Review ƒ The Stone Company has an account receivable from The Knowles Company of CU55,000. Stone also has an account payable to Knowles of CU15,000. ƒ Local law allows the enforceable right of set-off of the recognised amounts. It is not normal business practice to settle the amounts net. ƒ What amount for accounts receivable and accounts payable should be presented in Stone's statement of financial position, according to IAS32 Financial instruments: presentation? Accounts receivable Accounts payable ƒ A CU55,000 , CU15,000 , ƒ B CU40,000 Nil ƒ C CU55,000 Nil ƒ D Nil CU15 000 CU15,000 28

Transfer / Reklasifikasi HTM

Allowed when justified Æ change intention or eng of tainting period Allowed under conditions TAINTING RULE

No transfer into or out of trading

FVTPL

AFS

Reclassification among Sub-categories •

IAS 39 impose strict rules on reclassification of financial assets – Prevent earning management through selective recognition or non nonrecognition of gains or loss by reclassification

Reclassification of financial asset From

To

Reason

Accounting treatment

HTM

AFS

Change in intention or ability to hold

1. 2.

Asset is remeasured at fair value Difference between carrying amount and fair q y value taken to equity

AFS

HTM

Re-demonstrated positive intent and ability to hold; Rare situation where reliable measure of fair value is no longer available

1.

Fair value carrying amount on that date becomes new amortized cost Previous gain/loss in equity amortized to income statement over remaining life using effective interest method Difference between new amortized cost and maturity amount amortized using effective interest method

2. 3.

Loan

HTM or AFS S

Not allowed

None

FVTPL

HTM or AFS

Not allowed

None

HTM or AFS

FVTPL

Not allowed

None

Tainting ƒ Entitas tidak boleh mengklasifikasikan g aset keuangan g sebagai investasi dimiliki hingga jatuh tempo, jika dalam tahun berjalan atau dalam kurun waktu dua tahun sebelumnya telah menjual atau mereklasifikasi sebelumnya, investasi dimiliki hingga jatuh tempo dalam jumlah yang lebih dari jumlah yang tidak signifikan (more than insignificant) f ) sebelum jatuh tempo

Tainting ƒ Kecuali p penjualan j atau reklasifikasi tersebut dilakukan: ƒ Mendekati jatuh tempo atau tanggal pembelian kembali (contohnya, kurang dari tiga bulan sebelum j t h tempo) jatuh t ) ƒ Setelah entitas telah memperoleh secara substansial seluruh jumlah pokok aset keuangan tersebut sesuai jadwal pembayaran atau entitas telah memperoleh pelunasan dipercepat; atau ƒ (Terkait (T k it dengan d k j di tertentu kejadian t t t yang berada b d di luar l kendali entitas, tidak berulang, dan tidak dapat diantisipasi p secara wajar j oleh entitas.

Pengukuran Awal Aset dan Kewajiban Keuangan

Diukur pada nilai wajar melalui laba rugi

Tidak diukur pada nilai wajar melalui laba rugi

Nilai wajar

Nilai wajar ditambah Biaya Transaksi

(biaya transaksi expense)

(biaya transaksi dikapitalisasi) 33

Nilai Wajar

Nilaii di mana suatu aset d Nil dapat di dipertukarkan k k atau suatu kewajiban diselesaikan antara pihak yang memahami dan berkeinginan g untuk melakukan transaksi wajar (arm’s length transaction) Bukan nilai yang akan diterima atau dibayarkan entitas dalam suatu transaksi yang dipaksakan, likuidasi yang dipaksakan, atau penjualan akibat kesulitan keuangan.

Pengukuran – Nilai Wajar

Hirarki Penentuan Nilai Wajar* ƒ Kuotasi harga di pasar aktif; ƒ Jika pasar tidak aktif, maka menggunakan teknik penilaian yang meliputi: ƒ penggunaan transaksi-transaksi pasar wajar yang terkini antara pihak-pihak yang mengerti, berkeinginan jika tersedia; berkeinginan, ƒ referensi atas nilai wajar terkini dari instrumen lain yang secara substansial sama; ƒ analisis arus kas yang didiskonto (discounted cash flow analysis); dan ƒ model d l penetapan t h harga opsii (option ( ti pricing i i model) d l)

Measurement - at initial recognition Case Study 1: Interest-free long-term loan to employees ƒ Bank grants IDR50 million interest interest-free free loan to an employee who has reached 5 years employment payable at end of 5th year. ƒ Normal interest rate for 5 year loan to individual is 10.8%. ƒ Assuming the present value of IDR50 million over 5 years with monthly repayment at 10 10.8% 8% interest rate is IDR30 million. Question: What is the initial measurement amount of the loan?

Measurement - at initial recognition Case Study 2: Off-market loan with origination fee ƒ Bank lends US$1,000 US$1 000 to ABC Company repayable in full at end of 5th year ƒ Interest at 5% p payable y annually y ƒ Market rate of similar loan is 8% ƒ ABC Company pays the Bank credit facility fee of US$120 ƒ Present value at discount rate of 8% of US$1,000 payable in full at end of 5th year plus 5% interest payable annually is equal to US$880 Question: At what amount shall the Bank record the loan at initial recognition - US$1,000 $ or US$880? $

Ilustrasi ƒ An entity issues 100,000 new CU1 ordinary shares which have a fair value l off CU2 CU2.50 50 per share. h ƒ Professional fees in respect of the share issue are CU50,000. The costs are deductible in arriving at the entity’s income tax liability. The rate t off tax t is i 40%. 40% The Th managementt off the th entity tit estimates ti t that th t costs t incurred internally for time incurred working on the share issue are CU25,000. ƒ The internal costs sho should ld be recognised in profit or loss for the period. The professional fees are directly attributable to the transaction and CU30,000 should be deducted from equity (CU50 000 net of 40% tax). (CU50,000 tax) ƒ Equity will increase by CU220,000 ((100,000 x CU2.50) - CU30,000).

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Review ƒ The Grovemet Company acquired a financial asset at its market value l off CU32. CU32 B Brokers k ffees off CU2 were incurred i d in i relation l ti tto th the purchase. ƒ In accordance with IAS39 Financial instruments: recognition and measurementt att what h t amountt should h ld the th financial fi i l assett iinitially iti ll b be recognised if it is classified as at fair value through profit or loss, or as available for sale? At fair value al e thro through gh A ailable Available profit or loss for sale ƒ A CU34 CU32 ƒ B CU32 CU32 ƒ C CU32 CU34 ƒ D CU34 CU34 40

Review ƒ The Polar Company issued 200 new CU1 ordinary shares at a fair value l off CU1.80 CU1 80 each. h Polar P l identified id tifi d the th following f ll i costs t iin relation l ti to the shareissue: ƒ (1) Professional fees of CU40. ƒ (2) Internal management time in managing the process of CU30 CU30.

ƒ These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%. ƒ In accordance with IAS32 Financial instruments: presentation presentation, the increase in equity in the statement of financial position of Polar as a result of the transaction will be ƒ A CU360 ƒ B CU332 ƒ C CU311 ƒ D CU320 41

Pengukuran Setelah Pengakuan Awal a) Nilai wajar b) Biaya diamortisasi c) Biaya aya (pe (penggunaan ggu aa te terbatas batas hanya a ya jjika a nilai wajar tidak dapat ditentukan) ƒ PSAK 55 mengklasifikasikan: ƒ 4 kategori aset keuangan ƒ 2 kategori k t i kewajiban k jib keuangan k ƒ Kategori tersebut menentukan metode yang digunakan untuk pengukuran selanjutnya 42

Biaya Amortisasi

Jumlah saat pengukuran awal

PLUS OR MINUS MINUS

Akumulasi amortisasi dg effectiv interest method Pembayaran

MINUS Penurunan Nilai

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Suku bunga efektif ƒ Suku bunga g yyang g menyamakan y antara nilai awal aset dengan nilai kini dari pembayaran yang diterima di masa mendatang. ƒ Nilai Nil i awall asett kkeuangan ttermasuk k bi biaya ttransaksi k i dan biaya lain terkait dengan perolehan/penerbitan aset/liabilitas keuangan ƒ Suku bunga efektif tidak selalu sama dengan suku bunga yang ditetapkan. ƒ Suku S k bunga b efektif f ktif di digunakan k untuk t k mengitung it amortisasi premium atau diskon

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Measurement - amortised cost (continued) The “effective Th “ ff ti interest i t t rate” t ” is i th the rate t th thatt exactly tl discounts: • Estimated future cash payments or receipts over the expected life of the instrument or, when appropriate, a shorter period, to the instrument’s instrument s net carrying amount amount. • Should include all fees, transaction costs, premiums or discounts p p paid or received between contracting parties to the extent they are an integral part of the effective interest rate.

Measurement - amortised cost Example 1: Fixed-stepped interest rates 5 year US$1 US$1,000,000 000 000 bond with net proceeds of ƒ Company issued 5-year US$1,000,000 (including transaction costs). ƒ Bond pays interest at each anniversary date at 5% for the first 2 years; then 7% for the 3rdd & 4th year; and 8% for the 5th year. ƒ Company may prepay at the end of 4th year at amortised cost with no significant penalty. ƒ Company expects to redeem the bond after 4 years since market interest rate is expected to decline in long term. ƒ What is the effective yield? ƒ What will be the interest expense to be recognized in the profit & loss for each year?

Measurement - amortised cost Example 1: Fixed -stepped interest rates (continued) Effective Yield 5.94235% Year

Amortised cost at start of year

Cash flows

Amortization of interest expense

Amortised cost at end of year

1 1,000,000

(50,000)

59,424

1,009,424

1,009,424

(50,000)

59,983

1,019,407

3

1,019,407

(70,000)

60,577

1,009,984

4

1,009,984

(1,070,000)

60,017

0

2

Measurement - amortised cost Example 2: Fixed interest rate with discount ƒ Company purchased bond with 5 years maturity for US$950 plus US$50 transaction costs on Dec. 31, 2007. ƒ Principal p amount of bond is US$1,250 , ƒ Bond has fixed interest of 4.7% payable annually (US$1,250 x 4.7% = US$59 a year) ƒ What is the effective yield? ƒ What will be the interest income to be recognized in the profit & loss for each year?

Measurement - amortised cost Example 2: Fixed interest rate with discount (continued) Effective Yield 10% Year

Amortised cost at start of year

Amortization of interest income

Cash flows

Amortised cost at end of year

2008

1,000

100

(59)

1,041

2009

1 041 1,041

104

(59)

1 086 1,086

2010

1,086

109

(59)

1,136

2011

1,136

113

(59)

1,190

2012

1,190

119 (1,250) + (59)

0

Measurement - amortised cost Floating rate debt instruments ƒ Periodic re re-estimation estimation of cash flows to reflect movements in market interest rates does alter the effective interest rate. ƒ If a floating rate financial asset or liability is recognized initially at an amount equal to the principal receivable or payable on maturity, re-estimating the future interest payments normally has no significant effect on the carrying amount of the asset or liability. ƒ Amortization of discount or premium: ƒ if it results from change in credit spread or other variables that are not reset to market rates, it is amortised over the expected life of instrument; ƒ if it reflects interest that has accrued since interest last paid, or changes in market rates since the floating rate was reset, it will be amortised to the next date when interest rate is reset to market rates.

Pengukuran Selanjutnya

Klasifikasi

FVTPL HTM

Pinjaman Diberikan dan Piutang

Neraca

Biaya Transaksi

Keuntunga Bunga n atau dan Kerugian Dividen Nilai Wajar

Penurunan Pembalikan Nilai Penurunan Nilai

Nilai wajar Dibebankan Laba atau Laba atau By default rugi rugi y Dikapitalisasi p Biaya Diamortisasi Biaya Dikapitalisasi diamortisasi

By default

-

Laba rugi g

Laba rugi g

Laba rugi g

-

Laba rugi r gi

Laba rugi r gi

Laba rugi r gi

Pengukuran Selanjutnya

Klasifikasi

Laporan Keuntungan Jenis / Biaya Posisi atau Transaksi Keuangan Kerugian Nilai Wajar

Bunga dan Dividen

Penurunan Pemulihan Nilai Penurunan Nilai

Utang/ Dikapitalisasi

Nilai wajar

Pendapatan Laba Rugi komprehensif lain*

Laba Rugi

Laba Rugi

Ekuitas/ Dikapitalisasi

Nilai wajar

Pendapatan Laba Rugi komprehensif lain*

Laba Rugi

Pendapatan komprehensif lain

Ekuitas: Ek i Tidak dapat diukur secara andal/ Dikapitalisasi

Harga H perolehan

L b R Laba Rugii

-

AFS

-

L b R Laba Rugii

* Dibebankan ke laba rugi saat pelepasan atau terjadi penurunan nilai

Initial recognition and subsequent measurement Category

Initial recognition

Subsequent measurement

Treatment of changes in carrying amount

FVTPL

Cost

Fair value

1. 2.

Change in fair value to income statement. Interest income recognized using effective interest method

HTM

Cost

Amortized cost using effective interest method

1 1.

Amortized interest, interest impairment loss and foreign exchange gain/ loss goes to income statement

Loans and Receivables

Cost

Amortized cost using effective interest method

1.

Amortized interest, impairment loss and foreign exchange gain/ loss goes to income statement

AFS

Cost

Fair value

1. 2.

Change in fair value taken to equity Interest income recognized using effective interest method Debt instrument – impairment loss and foreign exchange gain/loss goes to income statement Hedged item – change in fair value attributable to hedged risk taken to income statement to offset gain/loss on hedging instrument

3. 4.

53

Ilustrasi ƒ An entity classifies as available-for-sale a financial asset with a fair value on initial recognition of CU150 CU150. At 31 December 2006 the cumulative gains recognised in respect of this asset in other comprehensive income are CU50. CU50 ƒ On 31 December 2007 the entity disposes of the asset for CU320. ƒ Profit or loss for the year will include: ƒ Gain on sale of available-for-sale investments CU120 (CU320 proceeds – CU200 carrying amount (CU150 + CU50)) ƒ Reclassified to profit or loss CU50 (recognised in other comprehensive income for the year ended 31 December 2006)

54

Review ƒ Are the following statements concerning the measurement of financial instruments after initial recognition true or false, according to IAS39 Financial instruments: recognition and measurement? (1) Held-for-trading financial assets are measured at amortised cost. ((2)) Held-to-maturity y investments are measured at fair value. ƒ Statement (1) Statement (2) ƒ ƒ ƒ ƒ

A False False B False True C True False D True True

55

Review ƒ The Redmires Company acquired an equity investment a number of years ago for CU300 and classified it as available for sale. At 31 December 20X5 the cumulative loss recognised in other comprehensive income was CU40 and the carrying amount of the investment was CU260. ƒ At 31 December 20X6 the issuer of the equity was in severe financial difficulty and the fair value of the equity investment had fallen to CU120. ƒ In accordance with IAS39 Financial instruments, recognition and measurement, what amount should be recognised in profit or loss in the yearended 31 December 20X6? ƒ A CU140 ƒ B CU180 ƒ C CU100 ƒ D Nil 56

Share Repurchase •

Listed company buy back their own share to – Provide support for share price – Market signal of “undervaluation” – Improve earnings per share

•

Classified as “treasury shares” – Pool of repurchased shares

•

Accounting treatment – Deduct treasury shares from total shareholder’s equity – No gain or loss recorded on repurchase

57

Journal Entries Pertaining to Share Repurchase

Initial repurchase of treasury shares Dr

Treasury shares ………………..

Cr

Cash …………………………….

XX,XXX XX,XXX

Repurchase p of treasuryy shares Equity section after repurchase Issued share capital ………………………………...

$XX,XXX,XX

R t i d earnings Retained i …………………………………..

X XXX XXX X,XXX,XXX

Total shareholders’ equity .………………………….

$XX,XXX,XX

Less cost of treasury shares ……………………….

(XX,XXX)

Total shareholders’ equity

$XX,XXX,XX

Cancellation of treasury shares Dr

Issued share capital capital…………..

Cr

Treasury shares……………….

Cancellation of treasury shares

XX XXX XX,XXX XX,XXX

Ketentuan Umum – Penurunan Nilai ƒ Aset keuangan atau kelompok aset keuangan mengalami penurunan nilai apabila: ƒ Nilai tercatat/biaya perolehan diamortisasi > Nilai yang dapat diperoleh kembali ƒ Evaluasi atas apakah terdapat bukti objektif penurunan nilai harus dilakukan pada setiap tanggal neraca

ƒ Bila terdapat bukti objektif penurunan nilai, maka harus dilakukan estimasi nilai yang dapat diperoleh kembali dan mengakui kerugian penurunan nilai

Bukti Objektif Penurunan Nilai ƒ Entitas harus melakukan evaluasi apakah p terdapat p bukti objektif penurunan nilai pada setiap tanggal neraca. ƒ Bukti Objektif antara lain: ƒ Kesulitan keuangan signifikan yang dialami penerbit atau peminjam; ƒ Pelanggaran kontrak, seperti terjadinya wanprestasi atau tunggakan pembayaran pokok atau bunga; ƒ Restrukturisasi atau keringanan (konsesi) akibat pihak peminjam mengalami kesulitan; ƒ Peminjam akan dinyatakan pailit atau melakukan reorganisasi keuangan lainnya; ƒ Hilangnya pasar aktif dari aset keuangan akibat kesulitan keuangan; atau ƒ Kemungkinan besar bangkrut

Bukti Objektif Penurunan Nilai ƒ Penurunan y yang g dapat p diukur atas estimasi arus kas masa datang g dari kelompok aset keuangan sejak pengakuan awal aset dimaksud, meskipun penurunannya belum dapat diidentifikasi terhadap aset keuangan secara individual dalam kelompok aset tersebut, termasuk: ƒ memburuknya status pembayaran pihak peminjam dalam kelompok tertentu (misalnya meningkatnya tunggakan pembayaran atau meningkatnya jumlah pihak peminjam kartu kredit yang mencapai batas kreditnya dan hanya mampu membayar cicilan bulanan minimal); atau ƒ kondisi ekonomi nasional atau lokal yang berkorelasi dengan wanprestasi atas aset dalam kelompok tersebut (misalnya bertambahnya tingkat pengangguran di area geografis pihak peminjam, peminjam turunnya harga komoditas, komoditas atau memburuknya kondisi industri).

Penurunan Nilai – Aset Keuangan yang Dicatat Berdasarkan Biaya Perolehan Diamortisasi ƒ Meliputi p investasi dalam kelompok p dimiliki hingga gg jjatuh tempo p serta pinjaman yang diberikan dan piutang

ƒ Aset Individual yang Signifikan: ƒ Pertama kali harus dinilai secara individu ƒ Jika tidak ada bukti penurunan nilai saat penilaian individu-harus dinilai dalam kelompok yang sama karakteristik risiko kreditnya

ƒ Penilaian Kelompok: ƒ Untuk aset-aset yang secara individu tidak signifikan dan asetaset lain ƒ Tidak dapat dievaluasi secara individual

Penurunan Nilai Kolektif – Aset Keuangan yang Dicatat Berdasarkan Biaya Perolehan Diamortisasi

Penurunan nilai kolektif aset keuangan yang dicatat berdasarkan biaya perolehan diamortisasi meliputi: 1. Kelompok aset keuangan sejenis yang tidak signifikan secara individual; dan 2. Aset keuangan yang signifikan secara individual yang tidak mengalami penurunan nilai il i b berdasarkan d k evaluasi l i secara iindividual; di id l

Penurunan Nilai Kolektif – Aset Keuangan Biaya Perolehan Diamortisasi ƒ Jumlah kerugian diukur sebagai selisih antara nilai tercatat aset dengan nilai kini estimasi arus kas masa depan yang didiskonto menggunakan suku bunga efektif awal dari aset tersebut ƒ Nilai tercatat aset tersebut dikurangi, baik secara langsung maupun menggunakan pos cadangan. ƒ Jumlah J l h kerugian k i yang terjadi j di diakui di k i pada d laporan laba rugi.

Penurunan Nilai Kolektif – Aset Keuangan Biaya Perolehan Diamortisasi ƒ Jika,, p pada p periode berikutnya, y , jjumlah kerugian g penurunan nilai berkurang, maka kerugian penurunan nilai yang sebelumnya diakui harus dipulihkan. ƒ Pemulihan P lih tersebut t b t tidak tid k boleh b l h mengakibatkan kib tk nilai il i tercatat aset keuangan melebihi biaya perolehan diamortisasi sebelum adanya pengakuan penurunan nilai pada tanggal pemulihan dilakukan. ƒ Jumlah pemulihan aset keuangan diakui pada laporan laba rugi. rugi

Penurunan Nilai – Aset Keuangan yang Dicatat pada Biaya Perolehan ƒ Jumlah kerugian g penurunan nilai diukur berdasarkan p selisih antara nilai tercatat aset keuangan dengan nilai kini dari estimasi arus kas masa depan yang didiskontokan pada tingkat pengembalian yang berlaku di pasar untuk aset keuangan serupa ƒ Kerugian penurunan nilai tersebut tidak dapat dipulihkan.

Penurunan Nilai – Aset Keuangan yang Tersedia untuk Dijual ƒ Ketika penurunan nilai wajar atas aset keuangan yang diklasifikasikan dalam kelompok tersedia untuk dijual telah diakui secara langsung dalam ekuitas dan terdapat bukti objektif bahwa aset tersebut mengalami penurunan nilai, maka kerugian kumulatif yang sebelumnya b l di k i secara langsung diakui l d l dalam ekuitas k it harus h dikeluarkan dari ekuitas dan diakui pada laporan laba rugi ƒ Kerugian penurunan nilai yang diakui pada laporan laba rugi atas i investasi t i instrumen i t ekuitas k it yang diklasifikasikan dikl ifik ik sebagai b i instrumen i t ekuitas yang tersedia untuk dijual tidak boleh dipulihkan melalui laporan laba rugi. ƒ Jika, Jik pada d periode i d berikutnya, b ik t nilai il i wajar j instrumen i t utang t yang diklasifikasikan dalam kelompok tersedia untuk dijual meningkat, maka kerugian penurunan nilai tersebut harus dipulihkan melalui laporan laba rugi. rugi

Impairment of Financial Assets •

Requirements for impairment testing under IAS 39 – Required for all financial instruments except those measured at fair value – Only when there is objective evidence as a result of “loss event(s)”

•

Example of “loss event(s)” include: – – – – – –

•

Issuer encounters significant financial difficulties; Default of payments Lender has to grant special concession to the borrower Borrower faces probable bankruptcy Disappearance of an active market Objective evidence on a decrease of estimated cash flows of the issuer

A Accounting ti ttreatment t t depends d d on how h fi financial i l assett iis measured d 68

Impairment of Financial Assets M Measured d att Amortized A ti d Cost C t Procedures for assessing impairment (IAS 39: 63-65) 63 65) Test for impairment for Financial Assets Individually Significant Individually Fail

Pass

Not Individually Significant Individually Fail

Collectively

Pass

Collectively tested with similar credit risk 69

Impairment of Financial Assets Measured at Cost

•

Example – Unquoted equity instruments – Derivatives linked to unquoted equity instruments

Impairment loss

•

=

Carrying amount

-

PV of estimated future cash flows

Impairment loss cannot be reversed

70

Impairment of AFS Financial Assets

Changes in fair value of AFS taken to equity Decline in fair value must be determined Objective evidence of impairment Cumulative loss in equity transferred to income statement

Decline in fair value

Acquisition Current fair cost value

Previous impairment loss

Debt instrument: Reversible Equity instrument: Non reversible 71

Impairment of Amortized Costs Assets Example

At January 1, 2006, XYZ Coy lends $5,000,000 to Company A. The effective interest rate on the loan is 8%. As at December 31, 2006, XYZ Coy expects that Company A will not be able to repay all amounts due. A comparison of the original contractual cash flows and estimated expected cash flows follows:

Impairment of Amortized Costs Assets Example Year

2006 2007 2008 2009 EIR

Original C Contractual l Cash flow (5,000,000) 1,650,000 1,550,000 1,450,000 1,350,000 6,000,000 8.0%

Expected C h Fl Cash Flow

Impairment C l l i Calculation

(5,000,000)

((4,413,390) , 3,390)

250,000 2,100,000 3,000,000 5,350,000 1.9%

250,000 2,100,000 3,000,000 5,350,000 8%

Impairment of Amortized Costs Assets Example Year

Accrued Interest

Cash Received

2006

Loan Balance

Valuation Allowance

Net Carrying Amount

5,000,000

(586,610)

4,413,390

2007

353 071 353,071

250 000 250,000

5 103 071 5,103,071

(586 610) (586,610)

4 516 461 4,516,461

2008

361,317

2,100,000

3,364,388

(586,610)

2,777,778

2009

222,222

3,000,000

586,610

(586,610)

-

5,350,000

Impairment of Amortized Costs Assets Example Interest income recognition assuming the use of interest method Journal: 2006 Dr. Provision for doubtful debtors 586.610 Cr. Allowance for doubtful debtors

(586.610)

2007 Dr Dr. Loan Cr. Interest income

353 071 353.071 (353.071)

Dr. C D Cash h and dB Bank k Cr. Loan

250 000 250.000 (250.000)

Penghentian Pengakuan Aset Keuangan Entitas menghentikan g pengakuan g aset keuangan, g jjika dan hanya jika: (a) hak kontraktual atas arus kas yang berasal dari aset keuangan tersebut berakhir; atau (b) entitas mentransfer aset keuangan yang memenuhi kriteria p penghentian g pengakuan p g

Penghentian Pengakuan Aset Keuangan 1. Consolidate subsidiaries (including SPEs) 2. Do derecognition principles apply to part or all of assets? 3. Have the rights g to cash flows expired?

Yes

Derecognise g

No

Don’tt derecognise Don

Yes

Derecognise

Yes

Don’t derecognise

No

Derecognise

No

4. Has entity transferred its right to receive cash flows? No Yes

Has entityy assumed obligation g to pass through cash flows? Yes

5. Has entity transferred substantially all risks/rewards? No

5. Has entity retained substantially all risks/rewards? No

6. Has entity retained control of the assets? Yes

Continue to recognise the assets to extent of continuing involvement

Penghentian Pengakuan Kewajiban Keuangan

ƒ Entitas mengeluarkan kewajiban keuangan (atau bagian dari kewajiban keuangan) dari neracanya, jika dan hanya jika, ƒ

Kewajiban keuangan tersebut berakhir, yaitu ketika kewajiban yang ditetapkan dalam kontrak dilepaskan atau dibatalkan atau kadaluwarsa. kadaluwarsa

Penghentian Pengakuan Kewajiban Keuangan

ƒ Pertukaran di antara p peminjam j dan p pemberi p pinjaman j yang saat ini ada atas instrumen utang dengan persyaratan yang berbeda secara substansial dicatat sebagai penghapusan (extinguishment) kewajiban keuangan awal dan pengakuan kewajiban keuangan baru. ƒ Demikian juga, modifikasi secara substansial atas ketentuan kewajiban keuangan yang saat ini ada atau bagian dari kewajiban keuangan tersebut dicatat sebagai penghapusan kewajiban keuangan awal dan pengakuan kewajiban keuangan baru.

Penghentian Pengakuan Kewajiban Keuangan

ƒ Syarat-syarat Syarat syarat yang digunakan berbeda secara substansial apabila: ƒ Nilai kini arus kas yang didiskonto berdasarkan syarat-syarat didiskonto menggunakan gg suku bunga g efektif awal,, berbeda sedikitnya 10 persen dari nilai kini sisa arus kas yang didiskonto yang berasal dari kewajiban keuangan semula.

Derecognition of a Financial Asset •

Refers to the removal of the financial asset from the balance sheet – In a group, all subsidiaries and special purpose entities are consolidated before derecognition (IAS 39:15)

•

Conditions for partial derecognition of financial asset (IAS 39:16) – Contains specifically identified cash flows – Forms fully proportionate share of cash flows – Forms fully proportionate share of specifically identified cash flows

•

E g of partial derecognition E.g. – interest rate strip from the transfer of interest cash flows while principal cash flows remain with transferor

81

Derecognition of a Financial Asset

Derecognition of financial asset Gain/ (loss) recognized in income statement

Entirety Sum of consideration received less carrying amount less cumulative gain/ loss recognized in equity

Partial Sum of consideration received for part less carrying amount of part less proportionate share of cumulative gain/ loss recognized in equity

82

Derecognition of a Financial Asset

Right to cash flows of the asset has expired

Conditions for derecognition Transferred right to receive cash flows and substantially all risks i k and d rewards d

Retained not substantially some risks and reward, and not retained control t l 83

Derecognition of a Financial Asset

Conditions for derecognition

Right g to cash flows of the asset has expired

Transferred right to receive cash flows and substantially all risks and rewards

Retained not substantiallyy some risks and reward, and not retained control

84

Derecognition of a Financial Asset Event

Why it qualify

A sale, sale together with an option to repurchase at fair value of the asset at the time of repurchase

Seller has transferred substantially all risks and rewards and is not obligated to repurchase the financial asset

A sale, sale together with a put option held by the buyer or a call option held by a seller that is deeply out-of-the-money

Seller is unlikely to be exposed to risk associated with changes in the fair value of the financial asset

Event

Why it does not qualify

A sale with an agreement by the seller to repurchase the same asset at a fixed price

There is no transfer of substantial risk and rewards

A sale, together with a put or call option that is deeply in-the-money

Highly unlikely that the option will become out-of-the-money before expiry p y and seller is likely y to repurchase p the asset 85

Derecognition of a Financial Liability •

Only when the borrower’s borrower s obligation relating to the liability are fully discharged, cancelled or expired (IAS 39:39)

•

Treatment of financial liability – Replacement of debt instrument should be treated as an extinguishment of original financial liability and the recognition of a new financial liability ((IAS 39:40)) – Partial derecognition permitted

•

Gain/ (losses) reported in income statement as with financial asset

86

Instrumen Keuangan Majemuk ƒ Komponen-komponen p p tersebut harus diklasifikasikan secara terpisah sebagai kewajiban keuangan, aset keuangan, atau instrumen ekuitas ƒ Nilai Nil i tercatat t t t awall suatu t instrumen i t k keuangan majemuk j k dialokasikan pada komponen ekuitas dan kewajiban: ƒ Komponen ekuitas yang dialokasikan adalah nilai sisa dari nilai wajar instrumen keuangan secara keseluruhan dikurangi dengan nilai komponen kewajiban yang ditetapkan secara terpisah

ƒ Contoh: Obligasi Konversi

Compound Financial Instruments Definition of compound financial instruments Instruments that have both debt or equity instruments

Non-derivative host instrument and embedded derivative

Accounting standards IAS 32 : Accounting from issuer’s perspective

IAS 39: Accounting from investor’s perspective

Example of convertible bond Issuer’s perspective Lower coupon rate leads to lower cash outflow

Investor’s perspective Investor willing to accept lower coupon rate in exchange for the equity i option i ffor potential i l capital i l gain i 88

Controversies • Main issue: whether the debt and equity component should be separately recognized on balance sheet • IAS 32 – Requires debt and equity elements to be separated • More relevant information, resulting in the reflection of effective borrowing cost

– Total proceeds allocated using incremental method • Fair value of debt instrument calculated from the present value of the cash flow from the instrument • Residual (total proceeds – FV of debt) allocated to equity component under “Capital Reserve – Equity option)

89

Illustration : Initial recognition of debt and equity Scenario ƒ Convertible bond issued at par on 1 Jan 20x1 ƒ Nominal value of $100,000 ƒ Repayable at 31 December 20x3 ƒ Annual coupon at 4% per annum ƒ Convertible at $1 of bond to 0.75 ordinary shares ƒ Effective interest of 10% per annum

90

Illustration : Initial recognition of debt and equity

Debt Component PV of interest payment (2,000 x PVIFA10%,3) ………..

$ 9,947

PV of principal at maturity (100,000 x PVF10%,3) ………

75,132

PV of debt component …….…………………………….

$85,079

Note: 1. Discount rate based on effect market interest rate of 10% 2. PVIFA10%,3 is PV of ordinary annuity at 10% for 3 periods 3 PVF10%,3 3. 10% 3 is the PV of $1 at the end of period 3 at 10% discount

91

Illustration : Initial recognition of debt and equity

Equity Component Value of equity

= $100,000 – Value of debt component = $100,000,000 $100 000 000 - $85,079 $85 079 = $14,921

Note: 1. Bond issued at discount of $14,921 (equals to value of equity) because bond issue at par 2. Discount of bond = Fair value – Nominal value 3. Value of equity = Nominal value – Value of debt component

92

Illustration : Initial recognition of debt and equity Journal entry at date of issue Dr

Cash

Dr

Unamortized discount on bond (B/S)

Cr

4% Bond p payable y ((B/S))

Cr

Capital reserve – Equity option (B/S)

100,000 14,921 100,000 14,921

Record debt and equity components of convertible bond

93

Illustration : Initial recognition of debt and equity Journal entry y at year-end y Dr

Interest expense ……………………… 8,508

Cr

Unamortized bond discount …………

4,508

Cr

Cash ……………………………………

4,000

Record interest expense using effective interest rate method Note: N t 1. Interest expense is based on the effective interest rate of 10%: $85,079 x 0.1 2. Amortization of bond discount is the difference between the effective interest expense p and the cash interest p paid: $8,508 , - $4,000 ,

94

Journal Entries Pertaining to Amortization of Bond Dr

Amortization of discount (I/S) ………..

Cr

Unamortized discount (B/S) …………

XX XXX XX,XXX XX,XXX

Amortization of discount for first half-year Dr

Interest expense (I/S) ………………...

Cr

Cash (B/S) …………………………….

XX,XXX XX,XXX

C h iinterest Cash t t paid id Or combined as follows Dr

Interest expense (I/S) ………………...

XX,XXX

Cr

Cash (B/S) …………………………….

XX,XXX

Cr

Unamortized discount (B/S) …………

XX,XXX

Interest paid for period ended 30 June 20x0 95

Conversion of Bond Before or At Maturity Occurs: • At specific ifi titime iintervals t l tto minimize i i i dil dilution ti effect • Only when there is economic interest The following are recorded when partial conversion occurs: 1. Issue of paid-up shares on conversion, 2. The balance in the discount on the bond adjusted dj t d proportionately ti t l

96

Jurnal Entries Conversion of Bond

Conversion of bond Dr

Bond payable

Dr

Capital reserve – Equity options

Cr

Ordinary shares

Cr

Unamortized discount on bond

XXX,XXX XX,XXX XXX,XXX XX XXX XX,XXX

Conversion of bond to ordinary shares

97

Effect of the Separation of Debt and Equity Elements in a Compound Financial Instrument

No split accounting g

Split accounting g

Net income

Net earnings higher

Net earnings lower

Balance sheet

Higher carrying amount; lower equity

Lower carrying amount; higher equity

Net profit margin

Higher

Lower

Debt-equity ratio

Higher

Lower

Return on equity

Higher

Lower

Times interest earned

Higher

Lower

Selected financial ratios

98

Allocation of Transaction Costs •

Cost incurred in issuing debt instruments, and convertible bonds – Include professional fees, registration fees, stamp duties, and advertising costs Transaction cost on debt

Transaction cost on equity

Accounted for as yield adjustments to the effective interest rate

Accounted for as deduction from equity after deducting any related income tax benefit

99

Allocation of Transaction Costs to Debt and Equity Components

Amount allocated to debt component: =

Fair value of debt component Total proceeds of convertible bond

x Transaction costs

Amount allocated to equity component: =

Value of equity component T t l proceeds Total d off convertible tibl b bond d

x Transaction costs

100

Ilustrasi ƒ An entity issues 3,000 convertible, 10-year bonds at CU100 each, with a nominal interest rate of 5%. ƒ The fair value of similar 10 year bonds with no convertible element is CU250,000. ƒ The conversion details are 100 shares for each bond to be exercised after 5 years but before the redemption date in 10 years time. ƒ At the date of issuance of the financial instrument, the following amounts should be recognised: ƒ Proceeds of bond issue (3,000 x CU100) CU300,000 ƒ Fair value of liability component CU250,000 ƒ Equity component (CU300,000 less CU250,000) CU50,000

101

Offsetting Financial Assets and Financial Liabilities

Offsetting Refers to the reporting of a recognized financial asset/ liability as a single net financial asset/ liability in the balance sheet Conditions (IAS 32:42) Currently has a legal enforceable right to set off recognized amounts

Intends to either settle on net basis, or realize asset and settle liability simultaneously

Prohibiting of offsetting when

Creation of “synthetic” instrument

Different counterparties involved

Financial assets pledged as collateral or set aside in trust

Obligations expected to be paid off through insurance claims 102

Evaluation of Fair Value as a Basis of the Measurement of Financial Instruments

Arguments for fair value accounting Fair value g accounting Discourage earning management Provide relevant and useful information to users of financial statements

Cost accounting Opportunities for earning management Reluctance of loan managers to foreclose problem loans

103

Evaluation of Fair Value as a Basis of the Measurement of Financial Instruments

Undue fluctuations in reported earnings Arguments against fair value accounting Reliability issues

Does not reflect purpose

104

Derivatif ƒ Instrumen keuangan atau kontrak lain dengan karakteristik: ƒ Nilainya berubah akibat dari perubahan variabel yang mendasari d i ((sptt suku k b bunga, h harga, nilai il i ttukar, k dll). ƒ Tanpa investasi awal neto atau nilainya lebih kecil dari nilai kontrak sejenis yang memberi pengaruh yang sama terhadap perubahan faktor pasar. ƒ Diselesaikan Di l ik pd d ttanggall ttertentu t t di masa mendatang.

Derivative Financial Instruments

A derivative is a financial instrument that meets the following three criteria: Its value changes in response to a change in an “underlying”

Requires little or no initial investment

Settled at a future date

Scope Exemption: IAS 39:5 exempts contracts which meet the definition of a derivative from the standard if the contract is entered into to meet the entity’s usual purchase, sale or usage requirements

106

Karakteristik Derivatif ƒ Derivatif yang berdiri sendiri (Freestanding derivative). ƒ Misalnya option, forward contract, swap, future contract

ƒ Derivatif Melekat (Embedded derivative) ƒ Komponen dari hybrid/combined instrument; ƒ Didalamnya terdapat kontrak utama non derivatif; ƒ Sebagian arus kas yg berasal dari instrumen yang di b digabungkan k bervariasi b i i seperti ti d derivatif i tif yg b berdiri di i sendiri. p p persyaratan y untuk diakui terpisah p ƒ Terdapat

Derivative Financial Instruments Example of derivative instruments and their underlying Types of derivative instruments

Underlying

Used by

Option contracts (call and put)

Security price

Producers, trading firms Producers firms, financial institutions, and speculators

Forward contracts e.g. foreign exchange forward contract

Foreign g exchange g rate

Various companies p

Future contracts e.g. commodity futures

Commodity prices

Producers and consumers

Swaps

Interest rate

Financial institutions

108

Derivative Financial Instruments •

Use of derivatives 1. Manage market risk 2. Reduce borrowing cost 3 Profit from trading or speculation 3.

•

Types of derivatives 1 Forward type derivatives such as forward contracts 1. contracts, future contracts and swaps 2. Option-type derivatives such as call and put options, caps and collars and warrants 3. Free standing derivatives 4. Embedded derivatives

109

Forward Contracts •

An agreement between two parties (counterparties) whereby one party agrees to buy and the other party agrees to sell a specified amount (notional amount) of an item at a fixed price (forward rate) for delivery at a specified future date (forward date)

•

Can either be a forward purchase contract or a forward sales contract, depending on the perspective of the counterparties

“A” Company

“Forward sales contract”

Sells Forward Contract

“B” Company

“Forward purchase contract” 110

Forward Contracts •

Not standardized contracts as they are not traded on an exchange – They entail counterparty risks – They are can be tailored to specific needs of counterparties – They involve lower transaction costs

•

Fair value of forward contract: Notional x amount where

(‫׀‬Current forward rate – contracted forward rate ‫)׀‬ (1+r)

t

Contracted forward rate is forward rate fixed at inception

r = discount rate

Current forward rate is forward rate for remaining period to maturity

t = period to maturity

At inception date, the fair value of a forward contract is nil. 111

Future Contracts •

A future contract is similar to a forward contract except that it is a standardized contract and is traded on an exchange

•

Futures contracts are marked-to-market and settled on a daily basis

•

Futures contracts require payment of a margin deposit which has to be maintained throughout the contract period

•

Wide range of exchange-traded future contracts – Commodity futures – Interest rate futures – Currencyy futures

112

Option Contracts •

Contract that gives holder the right but not the obligation to buy or sell a specified item at a specified price

•

2 type of option contracts 1. Call option – right, but not obligation to buy 2. Put option – right, but not obligation to sell

•

Can be American option (exercisable anytime to expiration) or European option (exercisable only on maturity date)

•

Can also be customized (not traded) or standard contract quoted on exchange (listed options)

113

Option Contracts •

Main features – Purchaser (holder) pays premium to seller (writer of option) – Holder has the right, but not obligation to perform; while write has obligation g to p perform – Asymmetrical pay-off profile • Holder has limited loss (due to premium) and unlimited gain • Writer has limited g gain and unlimited loss

Relationship between the strike price and the underlying Strike price> Underlying y g (spot price)

Strike price> Underlying y g (spot price)

Strike price> Underlying y g (spot price)

Holder of call option

Out-of-the-money

At-the-money

In-the-money

Holder of put option

In-the-money

At-the-money

Out-of-the-money 114

Option Contracts

•

Fair value of option contract Fair value of an option = Intrinsic value + Time value

Listed options = quoted price Not traded options = Valuation model ( Black-Scholes model)

Diminishes over time Zero at expiration

Call option = Max [0, Notional amount x (Spot price – Strike Price) Put option = Max [0, Notional amount x (Strike price – Spot Price)

Tan & Lee Chapter 9

©2009

115

Embedded Derivatives •

Derivative that is part of a hybrid financial instrument Hybrid Instrument Host Instrument Embedded derivative: Linked to underlying and change in underlying causes change in cash flow

•

Example is bond whose ultimate proceed are linked to price of commodity, such as oil, or to a consumer price index 116

Split Accounting of Embedded Derivatives •

IAS 39 requires embedded derivatives to be separately recognized from the host instrument and accounted for in the same way as a stand-alone derivative if the following conditions are met:

Conditions for separation of embedded derivative Economic characteristics and risk of host instrument are not closely related to that of the derivative

Tan & Lee Chapter 9

There is a separate instrument with same terms as the embedded derivative

©2009

Hybrid instrument is not measured at fair value, with changes in fair value recognized in profit and loss

117

Derivatif Melekat ƒ Entitas yang diharuskan untuk memisahkan derivatif melekat dari kontrak utamanya, namun tidakdapat mengukur derivatif melekatnya secara terpisah, t i h maka k kkeseluruhan l h kkontrak t k yang digabungkan diperlakukan sebagai aset/liabilitas keuangan yang dimiliki untuk diperdagangkan

Accounting for Derivatives

Default accounting treatment for derivatives under IAS 39: • Derivatives are classified under the Fair Value through Profit or Loss category and changes in their fair values are taken to income statement • Exception - when a derivative is designated as a hedge of an identified risk and the hedge is effective effective. In this case case, accounting for the derivative follows hedge accounting rules

119

Accounting for Forward Contract

At inception

During life of contract Dr Forward Contract (asset) Cr Gain on forward contract

No jjournal entry y as fair value is nil

Closing position or at expiration Dr Cash Cr Forward contract

or Dr Loss on forward contract Cr Forward Contract (liability)

Dr Forward contract

j fair value and Adjust record gain/loss

Close out and record net settlement of contract

Cr Cash

120

Accounting for Future Contract

At inception

During life of contract Dr Cash Cr Gain on future contract

Dr Margin deposit Cr Cash

payment y of Record p initial margin deposit

Closing position or at expiration Dr Cash Dr Gain on future f t re contract Cr Margin Contract

or Dr Loss on futures contract Cr Cash

Dr Cash Cr Loss on future contract Cr Margin Contract

Record dailyy settlement of future contracts

Close out and recover margin deposit 121

Accounting for Purchased Option Contract

At inception

During life of contract Dr Option Contract Cr Gain on option contract

Dr Option contract (asset) Cr Cash

Closing position or at expiration Dr Cash* Dr Gain on option contract Cr Option Contract

or Dr Loss on option contract Cr Option p Contract

Dr Cash* Cr Loss on option contract Cr Option Contract (* assume expires in-the-money)

payment y of Record p initial margin deposit

Adjust j for fair value and record gain/loss

Close out and record net settlement of contract 122

Accounting for Written Option Contract

At inception

During life of contract Dr Option Contract Cr Gain on future contract

Dr Cash Cr Option contract (liability)

or Dr Loss on futures contract Cr Option p Contract

Closing position or at expiration Dr Option contract Cr Gain on Option Contract (Expires out-of-themoney) Dr Option contract Dr Loss on option Cr Cash (Expires in-the-money)

Record p payment y of initial margin deposit

Adjust j for fair value and record gain/loss

Close out and record net settlement of contract 123

Hedging •

Propose is to neutralize an exposed risk – Loss on hedge item offset by gain on hedging instrument – Reduce volatility than preserve gains

•

Other ways of hedging through non-derivative derivatives – Money market instruments (money market hedge) – Natural hedge (offsetting foreign currency assets and liability in the same currency)

•

Special accounting rules called “hedge hedge accounting accounting” applies when derivatives are used for hedging purposes

124

Rationale of Hedge Accounting •

Arises because of the mismatch of income-offsetting income offsetting effect between hedged item and hedging instrument

•

Situations requiring hedge accounting – Hedge item and hedging instrument are measured using different bases (One is at cost while the other is at fair value) – Hedged item yet to be recognized in financial statement – Different treatment for changes in fair value (changes taken to equity while the other is taken to income statement)

125

Risks That Qualify for Hedge Accounting

Interest rate risk

Foreign exchange risk

Spec c risks Specific s s that qualify for hedge accounting

Risks must be specific risk, not general business risks

Price risk

Credit risk

Possible for a derivative to hedge more than one risk

126

Qualifying Hedging Instruments (IAS 39: 72 – 73)

•

Instruments that qualify include: – Designated derivatives (except written options) – Embedded Derivatives – Designated non-derivatives non derivatives financial asset/ liability that hedge foreign exchange risks only

•

Value used to determine hedge effectiveness – If used in its entirety, fair value is used – If broken into time value and intrinsic value, permissible to use intrinsic value. However,, it must be explicitly p y documented at inception p

•

If derivative is used as a hedge of more than 1 risk – Individual designated component must meet hedge accounting criteria – Permissible for portion of notional amount to be designated 127

Qualifying Hedged Items (IAS 39: 78 -79) Qualify

Do not qualify

•

Financial assets and liabilities with exposure to changes in fair value

•

Held-to-maturity instruments (regardless of fixed rate or variable rate)

•

Non-financial assets exposed to foreign exchange or price risks

•

Investment in an associated company

•

Firm commitment

•

Highly g yp probable forecast transaction with exposures to future cash flows

•

Net investment in foreign entity 128

Criteria for Hedge Accounting (IAS 39: 88)

C diti Conditions tto b be mett ffor h hedge d accounting ti tto apply l Enterprise must have exposure to risk that affects income statement Derivative contract specifically entered to hedge underlying exposure Hedge must be highly effective Effectiveness of hedge can be reliably measured Hedging relationship must be formally documented at the inception of the hedge 129

Classification of Hedging Relationships Causes Fair value hedge

Cash C h flflow hedge

Hedge of a net investment in a foreign entity

Explanation Hedge of “the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or an identified portion of such asset, liability or firm commitment, commitment which is attributable to a particular risk and could affect profit or loss” (IAS 39:86a) Hedge of “the exposure to variability in cash flows that (i) is attributable to a particular risk associated with a recognized asset or liability (such as all or some future interest payment on variable debt instrument )or a highly probable future transaction, and (ii) could affect profit or loss” (IAS 39:86b) Hedge of the foreign currency risk associated with a o e g operation ope at o whose ose financial a c a state statements e ts are a e required equ ed foreign to be translated into the presentation currency of the parent company 130

Jenis Lindung Nilai ƒ Lindung g nilai atas nilai wajar: j suatu lindung nilai terhadap eksposure: ƒ perubahan pe uba a nilai a wajar aja atas aset atau kewajiban yang telah diakui pasti yyang g belum diakui,, atau ƒ atau komitmen p bagian yang telah diidentifikasi dari aset, kewajiban, atau komitmen pasti tersebut, yang dapat diatribusikan pada risiko tertentu dan dapat memengaruhi laporan laba rugi

Jenis Lindung Nilai ƒ Lindung nilai atas arus kas: suatu lindung nilai terhadap eksposur variabilitas arus kas yang: ƒ d dapatt diatribusikan di t ib ik pada d risiko i ik tertentu t t t yang terkait t k it dengan aset atau kewajiban yang telah diakui ((misalnya y seluruh atau sebagian g pembayaran y bunga g di masa depan atas utang dengan suku bunga variabel) atau yang dapat diatribusikan pada risiko tertentu yang terkait dengan prakiraan transaksi yang kemungkinan besar terjadi, dan ƒ dapat memengaruhi laporan laba rugi.

Classification of Hedging Relationships •

The designation of a derivative as a fair value hedge or a cash flow hedge is determined by the hedged risk, that is, whether the entity has a fair value exposure or a cash flow exposure

•

An exception where a derivative can be designated as either a fair value hedge or a cash flow hedge is where the hedged risk is the foreign exchange risk of a firm commitment

133

Jenis Lindung Nilai ƒ Lindung g nilai atas investasi neto pada operasi di luar negeri ƒ Sama Sa a seperti sepe t Lindung du g Nilai a Arus us Kas as ƒ Effective Hedge to be disclosed in Equity Capital p ƒ Non effective hedge to be disclosed in P/L ƒ Foreign Operation in Foreign Currency Area

Akuntansi Lindung Nilai ƒ Perlakuan akuntansi khusus bagi g transaksi hedging g g yang mencakup instrumen hedging dan hedge item, yang bertujuan untuk memastikan keuntungan atau kerugian atas instrumen hedging dan hedge item diakui dalam laporan Laba Rugi periode yang sama. ƒ Jik Jika tid tidak k dit diterapkan, k kkemungkinan ki missmatch i t h antara t keuntungan/kerugian instrumen hedge dengan keuntungan/kerugian g g hedge g item ƒ Tidak seluruh lindung nilai dapat memenuhi persyaratan untuk Hedge Accounting menurut PSAK 55

Kriteria ●

Pada  saat dimulainya  lindung nilai  terdapat penetapan dan  Pada saat dimulainya lindung nilai terdapat penetapan dan pendokumentasian formal atas hubungan  lindung nilai dan   tujuan manajemen  risiko entitas  serta strategi pelaksanaan   li d lindung nilai.  il i

●

Lindung nilai diharapkan akan sangat efektif dalam rangka  saling hapus atas perubahan nilai wajar atau perubahan arus saling hapus atas perubahan nilai wajar atau perubahan arus  kas 

●

Untuk lindung nilai atas arus kas, suatu prakiraan transaksi  Untuk lindung nilai atas arus kas suatu prakiraan transaksi yang merupakan subjek dari suatu  lindung nilai harus  bersifat kemungkinan besar  terjadi dan  terdapat eksposur  perubahan arus kas yang dapat memengaruhi laporan laba  b h k d t hi l l b rugi

Kriteria (Lanjutan) ●

Efektivitas lindung nilai dapat diukur secara andal Efektivitas lindung nilai dapat diukur secara andal

●

Lindung  nilai  dinilai  secara  berkesinambungan  dan   ditentukan bahwa efektivitasnya sangat tinggi sepanjang ditentukan  bahwa efektivitasnya  sangat  tinggi  sepanjang  periode pelaporan keuangan di mana lindung nilai tersebut  ditetapkan

Perlakuan Akuntansi Lindung Nilai atas Nilai W j Wajar

Lindung Nilai Arus Kas

1.

Keuntungan atau kerugian dari hedging instrument

Langsung diakui di laba atau rugi

Jika efektif, diakui di ekuitas

2.

Penyesuaian atas hedged item

Untuk perubahan nilai wajar yang disebabkan hedged risk, keuntungan atau kerugian langsung diakui di laba atau rugi

N/A

3.

Ketidakefektifan lindung nilai dicatat di laba atau rugi

By default

Dihitung

4.

Keuntungan atau kerugian di ekuitas ditransfer ke laba atau rugi

N/A

Pada saat yang sama dengan g hedged g item diakui di laba atau rugi

Hedge Effectiveness

Hedge is ineffective 125% Hedge is effective

100% Hedge is effective

80% Hedge is ineffective

Assessing Hedge Effectiveness •

IAS 39:9 - The degree to which changes in the fair value or cash flows of the hedged item that is attributable to a hedged risk are offset by changes in the fair value or cash flow of the hedging instrument

•

Hedge effectiveness is evaluated – Prospectively on inception of hedge; and – Retrospectively on an ongoing basis

•

On inception, inception hedge effectiveness is assessed on – Comparison of the principal or critical terms – Historical analysis – Correlation analysis 140

Assessing Hedge Effectiveness •

During the duration of hedge, hedge effectiveness is assessed on dollar-offset method:

•

Hedge effectiveness ratio (HER):

Hedge effectiveness Changes in fair value or future cash flow of hedging instrument = (or delta ratio) Changes in fair value or future cash flow of hedged item 08 0.8

12 1.25

Effective hedge (IAS 39: AG 105b)

•

Exceptions for effective hedge even if HER falls out of range – IAS S 39 a allows o s hedge edge e effectiveness ect e ess to be assessed o on cu cumulative u at e bas basis s if hedge is designated and conditions are properly documented

Tan & Lee Chapter 9

©2009

141

Assessing Hedge Effectiveness •

Exclusion of time value of certain derivatives to be excluded from hedge relationship – Derivative separated into 2 component 1. Time value (options) or interest (forwards) 2. Intrinsic (options) or spot element (forwards) – Excluded time value taken to income statement as per default treatment – Should result in highly effective hedge, as intrinsic/ spot component moves in tandem with underlying, while time/interest component does not – If critical terms of hedging instruments and hedged item are exactly the same, HER should be equal or around 1

142

Accounting for a Fair Value Hedge

Hedged Item (recognized asset or liability or firm commitment)

Hedging Instruments

Change in fair value

Change in fair value Income statement Gain (loss) on hedging instrument offset loss (gain) on hedged item

Balance sheet Change in fair value adjusted against carrying amount

Change in fair value adjusted against carrying amount 143

Illustration g of inventory y ((fair value hedge) g ) Hedge Scenario 31/10/20x3 ƒ Inventory of 10,000 ounces of gold ƒ Carried at cost of $3 $3,000,000 000 000 ($300 per ounce) ƒ Price of gold was $352 per ounce

1/11/20x3 ƒ Sold forward contract on 10,000 10 000 ounce for forward price of $350 ounce ƒ Forward contract matures on 31/3/20x4

31/12/20x3 ƒ F Forward d price i ffor 31/3/20 31/3/20x4 4 contract t t was $340 per ounce and d spott price i of gold was $342 per ounce ƒ Hedge effective ratio of 1 on 31/12/20x3

144

Illustration g of inventory y ((fair value hedge) g ) Hedge 1/11/20x3 No entry or just a memorandum entry as the fair value of the forward contract is nil 31/12/20 3 31/12/20x3 Dr

Forward contract ……………….

Cr C

Gain on Ga o forward o a d contract co t act ……...

100,000 100,000 00,000

Gain on forward contract: 10,000 x ($340 -$350) Dr

Loss on inventory ………………

Cr

Inventory ………………………..

Taken to income statement

100 000 100,000 100,000

Gain on forward contract: 10,000 x ($342 - $352)

145

Illustration g of inventory y ((fair value hedge) g ) Hedge 31/3/20x4 Inventory is sold to third-party at $330 per ounce (also maturity date of forward contract Dr

Forward contract ……………….

Cr

Gain on forward contract ……...

100 000 100,000 100,000

Gain on forward contract: 10,000 x ($330 -$340) Dr

Loss on inventory ………………

Cr

Inventory ………………………..

120,000 120,000

Gain on forward contract: 10,000 x ($330 - $342) Dr

Cash ……………………………..

C Cr

S l ……………………………. Sales

3,300,000 3 300 000 3,300,000

Sale of inventory: 10,000 x $330 146

Accounting for a Cash Flow Hedge

Effective Cash Flow Hedge (IAS 39:95)

Effective portion of gain/ loss Recognized directly in equity q y through g statement of changes in equity

Ineffective portion of gain/ loss Recognized in profit or loss

147

Accounting for a Cash Flow Hedge

Cash flow hedges are applicable to the following: Forecasted transactions involving financial and non nonfinancial assets/liabilities which will result in cash inflow/ outflow

Interest rate swaps

Other transactions which affect future cash flows

148

Illustration Effective and ineffective portions of a cash flow hedge

Scenario 1/1/20x1 ƒ Entered into futures contract to hedged forecast transaction at 30/4/20x1 ƒ Classified as cash flow hedge P i d ending Period di

∆ in i fair f i value l of future contracts

∆ in i present value l off expected future cash flow

31/1/20x1

$100

$(105)

28/2/20x1

90

(80)

31/3/20x1

103

(105)

30/4/20x1

((38))

45

149

Illustration Effective and ineffective portions of a cash flow hedge Determination of effective and ineffective portions of a cash flow hedge Ineffective Effective portion portion credited/ credited/ (debited) to (debited) to income equity in statement current in current period) period

Period ending

Cumulative ∆ in FV of future contracts (a)

Cumulative ∆ in PV of expected cash flow (b)

Lesser of two cumulative amount in absolute terms (c)

31/1/20x1

$100

$(105)

$100

$100

$0

28/2/20x1

190

((185))

185

85

5

31/3/20x1

293

(290)

290

105

(2)

30/4/20x1

255

(245)

245

(45)

7

150

Ilustrasi An entity has entered into a hedging relationship. At the year-end the entity assesses the fair value of the hedged item and hedging instrument, and the following gains and losses arise: H d d ititem – gain Hedged i off CU500 Hedging instrument – loss of CU600 The effectiveness of the hedge is calculated as: CU600 / CU500 = 120% the hedge is therefore assessed as being highly effective.

151

Ilustrasi

An entity has hedged future cash flows on a financial liability using an interest related derivative. The effectiveness of the hedge g has been ssessed at 90%. % The additional interest costs relating to the derivative are CU20,000. CU18,000 of the interest costs are recognised in other comprehensive income. The CU2,000 remaining (the ineffective portion) is recognised in profit or loss for the period.

152

Hedge of a Net Investment in a Foreign Entity •

Hedge risk is foreign exchange risk – Applies to foreign operations whose functional currencies are the currencies of the country where the foreign operations are located – Closing rate method may result in significant translation loss from depreciating p g currencies

•

Accounting treatment similar to cash flow hedge

Hedge effectiveness =

Cumulative change in fair value of hedging instrument (A) Cumulative translation difference on net investment (B)

– Hedge is effective if the delta ratio is between 0.8 and 1.25. – Unlike a fair value hedge or a cash flow hedge, a non-derivative is allowed to be the hedging instrument instrument, for example example, a foreign currency loan. 153

Illustration Hedge of a Net Investment in a Foreign Entity

Scenario ƒ Functional currency is the dollar ($) ƒ Acquired 100% interest in foreign company (functional currency is FC)

31/12/20x3 ƒ Exchange rate is $1.85 to FC1 ƒ Loan of FC1 FC1,200,000 200 000 at 5% interest taken to hedge foreign investment ƒ Foreign currency translation reserves showed $15,000 (credit balance)

31/12/200x4 31/12/200 ƒ Exchange rate is $1.70 to FC1 ƒ Average rate is $1.78 to FC1 ƒ Foreign company reported net profit of FC380,000 154

Illustration Hedge of a Net Investment in a Foreign Entity Translation difference in foreign investment’s FS for 31/12/20x4 On net assets on 1/1/20x4 (FC 1,200,000 x $(1.70-1.85) …….

$(180,000)

On net profit for 20x4 (FC380,000 x $(1.70-1.85) ……………..

(30,400)

Translation loss for 20x4

$(210,400)

Foreign currency translation reserves (credit balance)

(195,400)

Journal entries for parent 31/12/20x3 Dr

Cash ……………………………..

Cr

Loan payable …………………...

2 200 000 2,200,000 2,200,000

The loan payable is designated as a hedge of the net investment: FC1 200 000 x spott rate FC1,200,000 t off $1 $1.85 85 155

Illustration Hedge of a Net Investment in a Foreign Entity 31/12/20x4 Dr

Interest expense ……………….

Cr

Accrued interest ………………..

106,800 106,800

Interest expense during the year at 5% x FC1 FC1,200,000 200 000 x $1 $1.78 78 Dr

Accrued interest ………………..

Cr C

Cash …………………………….. Cas

Cr

Exchange gain ………………….

106,800 102,000 0 ,000

Taken T k to equity i 4,800 to offset translation loss

Settlement of accrued interest at year-end Dr

Loan payable …………………...

Cr

Foreign currency translation reserves …………………………

180,000

Exchange gain on FC loan taken directly to equity: FC 1,200,000 x ($1.70 - $1.85)

180,000

156

Discontinuation or Termination of Hedge Accounting

Consideration for discontinuation or termination of hedge accounting

Hedging instrument has reached maturity date or is closed off or terminated

Criteria for hedge accounting is no longer met

Hedge designation is revoked

Accounting treatment depends on type of hedge

157

Evaluation of Hedge Accounting •

Objective of hedge accounting – Reflect effectiveness of hedging activities of a firm – Reduce volatility of reported earnings

•

Compliance with hedge accounting may result in considerable expenditure of resources

•

There are challenges in compliance with hedge accounting criteria for macro hedges

•

Issue is whether the additional costs of compliance more than offset the benefit of applying hedge accounting

158

159

PSAK 60 : INSTRUMEN KEUANGAN PENGUNGKAPAN

Ringkasan ƒ Pengaturan g mengenai g p pengungkapan g g p instrumen keuangan yang berbeda dari pengaturan sebeluma: ƒ Ruang lingkup Æ mengatur yang sebelunya belum diatur ƒ Signifikansi dari instrumen keuangan ƒ Penjelasan lebih rinci mengenai risiko likuiditas

Signifikansi Instrumen Keuangan ƒ Instrumen keuangan g signifikan g mempengaruhi p g posisi keuangan perusahaan. ƒ Secara lebih tegas mensyaratkan entitas untuk mengungkapkan informasi yang memungkinkan pengguna laporan keuangan untuk mengevaluasi signifikansi g instrumen keuangan g terhadap p posisi p dan kinerja keuangan.

Pengungkapan Laporan Posisi Keuangan ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ

Kategori Aset Keuangan dan Liabilitas Keuangan Aset Keuangan Atau Liabilitas Keuangan yang Diukur Pada Nilai Wajar Melalui Laporan Laba Rugi Reklasifikasi Penghentian Pengakuan Agunan g Penyisihan Kerugian Kredit Instrumen Keuangan Majemuk Dengan B b Beberapa D Derivatif i tif M Melekat l k t Wanprestasi Dan Pelanggaran

Pengungkapan Laporan Laba Rugi Komp. ƒ Pos-pos Penghasilan, Beban, Keuntungan atau Kerugian ƒ Pengungkapan Lainnya ƒ Kebijakan Akuntansi ƒ Akuntansi Lindung Nilai ƒ Nilai Wajar

Jenis dan Tingkat Risiko yang Timbul ƒ Pengungkapan g g p Kualitatif ƒ Pengungkapan Kuatitaif ƒ Risiko kredit ƒ Aset keuangan yang melewati jatuh tempo atau mengalami penurunan nilai ƒ Agunan dan peningkatan kualitas kredit yang diperoleh ƒ Risiko likuiditas ƒ Risiko Pasar ƒ Analisis Sensitivitas ƒ Pengungkapan risiko pasar lainnya

Review ƒ In accordance with IFRS7 Financial instruments: disclosures which of the following best describes disclosures, the risk that an entity will encounter if it has difficulty in meeting obligations associated with its financial liabilities? ƒ A Liquidity q y risk. ƒ B Credit risk ƒ C Financial risk ƒ D Payment risk

165

Main References ƒ

Standar Akuntansi Keuangan g Dewan Standar Akuntansi Keuangan

ƒ

Materi Publik hearing PSAK 50, 55 dan 60

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IFRS Deloitte Slide Sharing Session Overview on the Impac of PSAK 50 and 55 (Revised 2006)Per June 28, 2010 ct, Enrst & Young

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IAS Plus

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International Financial Reporting Standards – Certificate Learning Material The Institute of Chartered Accountants, England and Wales

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TERIMA KASIH Dwi Martani Departemen Akuntansi FEUI [email protected] atau [email protected] 08161932935

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