Instructor’sManual g
International Financi g
al Reporting: A Pract
g g g
ical Guide g
Eighth edition g
Alan Melville
g
Forgfurtherginstructorgmaterialgpleas
egvisit:
go.pearson.com/uk/he/resources
ISBN:g 978-1-292-43945-7
gPearsongEducationgLimitedg2022
Lecturersgadoptinggthegmaingtextgaregpermittedgtogdownloadgandgphotocopygthegmanualgasgrequired
.
,PEARSONgEDUCATIONgLIMITED
KaogTwog
KaogParkg
HarlowgC
M17g9NA
UnitedgKingdom
Tel:g+44g(0)1279g623623
Web:gwww.pearson.com/uk
Thisgeditiongpublishedg2022
©gPearsongEducationgLimitedg2022
ThegrightsgofgAlangMelvillegtogbegidentifiedgasgauthorgofgthisgworkghasgbeengassertedgbyghimgi
ngaccordancegwithgthegCopyright,gDesignsgandgPatentsgActg1988.
PearsongEducationgisgnotgresponsiblegforgthegcontentgofgthird-partyginternetgsites.
ISBN:g 978-1-292-g43945-7
Allgrightsgreserved.gPermissiongisgherebyggivengforgthegmaterialgingthisgpublicationgtogbegre
producedgforgOHPgtransparenciesgandgstudentghandouts,gwithoutgexpressgpermissiongofgtheg
Publishers,gforgeducationalgpurposesgonly.gIngallgothergcases,gnogpartgofgthisgpublicationgma
ygbegreproduced,gstoredgingagretrievalgsystem,gorgtransmittedginganygformgorgbyganygmeans,gel
ectronic,gmechanical,gphotocopying,grecording,gorgotherwisegwithoutgeithergthegpriorgwritten
gpermissiongofgthegPublishersgorgaglicencegpermittinggrestrictedgcopyinggingthegUnited gKing
domgissuedgbygthegCopyrightgLicensinggAgencygLtd.,gBarnard’sgInn,g86gFettergLane,gLondo
ngEC4Ag1EN.gThisgbookgmaygnotgbeglent,gresold,ghiredgoutgorgotherwisegdisposedgofgbygw
aygofgtradeginganygformgofgbindinggorgcovergothergthangthatgingwhichgitgisgpublished,gwitho
utgthegpriorgconsentgofgthegPublishers.
ThisgpublicationgcontainsgcopyrightgmaterialgofgthegIFRS®g Foundationgingrespectgofgwhichg
allgrightsgaregreserved.gReproducedgbygPearsongEducation,gLtdgwithgthegpermissiongofgthegI
FRSgFoundation.gNogpermissionggrantedgtogthirdgpartiesgtogreproducegorgdistribute.gForgfullg
accessgtogIFRSgStandardsgandgthegworkgofgthegIFRSgFoundationgpleasegvisitghttp://eifrs.ifrs
.org.
ThegInternationalgAccountinggStandardsgBoard®,gthegIFRSgFoundation,gthegauthorsgandgthe
gpublishersgdognotgacceptgresponsibilitygforganyglossgcausedgbygactinggorgrefraininggfromgac
tinggingreliancegongthegmaterialgingthisgpublication,gwhethergsuchglossgisgcausedgbygneglige
ncegorgotherwise.
, Melville:gInternationalgFinancialgReporting,gInstructor'sgManual,g8thgediti
on
Contents
PrefacegAcknowledge v
ments gv
i
Chapterg1 ThegregulatorygframeworkgSolutio
nsg1.8gandg1.9 1
®
Chapterg2 ThegIASB gconceptualgframeworkg
Solutionsg2.7gandg2.8 3
Chapterg3 PresentationgofgfinancialgstatementsgSolutio
ng3.7 5
Chapterg4 Accountinggpolicies,gestimatesgandgerrorsgS
olutiong4.7,g4.8gandg4.9 8
Chapterg5 Property,gplantgandgequipmentgSol
utionsg5.7gandg5.8 10
Chapterg6 IntangiblegassetsgSol
utionsg6.8gandg6.9 13
Chapterg7 Impairmentgofgassets
gSolutionsg7.7gandg7. 15
8
Chapterg8 Non-
currentgassetsgheldgforgsalegandgdiscontinuedgoperationsgSolutiong8. 16
7
Chapterg9 Leases
Solutionsg9.7gandg9.8 17
Chapterg10 Inventories
Solutionsg10.5gandg10.6 19
Chapterg11 Financialginstruments
gSolutiong11.6 21
Chapterg12 ProvisionsgandgeventsgaftergthegreportinggperiodgSoluti
ong12.8 23
Chapterg13 RevenuegfromgcontractsgwithgcustomersgSo
lutionsg13.7gandg13.8 24
Chapterg14 EmployeegbenefitsgSolutio
nsg14.6gandg14.7 26
Chapterg15 TaxationgingfinancialgstatementsgSo
lutionsg15.7,g15.8gandg15.9 28
Chapterg16 StatementgofgcashgflowsgSolutio
nsg16.8,g16.9gandg16.10 34
Chapterg17 FinancialgreportingginghyperinflationarygeconomiesgSol
utiong17.5 39
iii
©g2022gPearsongEducationgLimited.gAllgRightsgReserve
d.
, Melville:gInternationalgFinancialgReporting,gInstructor'sgManual,g8thgediti
on
Chapterg18 Groupsgofgcompaniesg(1)gSolutio
nsg18.6gandg18.7 40
Chapterg19 Groupsgofgcompaniesg(2)gSolutio
nsg19.5gandg19.6 45
Chapterg20 AssociatesgandgjointgarrangementsgSolutio
ng20.5 51
Chapterg21 RelatedgpartiesgandgchangesgingforeigngexchangegratesgSoluti
ong21.4 53
Chapterg22 Ratioganalysis
Solutionsg22.5,g22.6gandg22.7 54
Chapterg23 Earningsgpergshare
Solutionsg23.6,g23.7,g23.8gandg23.9 59
Chapterg24 Segmentalganalysis
gSolutiong24.6 61
iv
©g2022gPearsongEducationgLimited.gAllgRightsgReserve
d.
International Financi g
al Reporting: A Pract
g g g
ical Guide g
Eighth edition g
Alan Melville
g
Forgfurtherginstructorgmaterialgpleas
egvisit:
go.pearson.com/uk/he/resources
ISBN:g 978-1-292-43945-7
gPearsongEducationgLimitedg2022
Lecturersgadoptinggthegmaingtextgaregpermittedgtogdownloadgandgphotocopygthegmanualgasgrequired
.
,PEARSONgEDUCATIONgLIMITED
KaogTwog
KaogParkg
HarlowgC
M17g9NA
UnitedgKingdom
Tel:g+44g(0)1279g623623
Web:gwww.pearson.com/uk
Thisgeditiongpublishedg2022
©gPearsongEducationgLimitedg2022
ThegrightsgofgAlangMelvillegtogbegidentifiedgasgauthorgofgthisgworkghasgbeengassertedgbyghimgi
ngaccordancegwithgthegCopyright,gDesignsgandgPatentsgActg1988.
PearsongEducationgisgnotgresponsiblegforgthegcontentgofgthird-partyginternetgsites.
ISBN:g 978-1-292-g43945-7
Allgrightsgreserved.gPermissiongisgherebyggivengforgthegmaterialgingthisgpublicationgtogbegre
producedgforgOHPgtransparenciesgandgstudentghandouts,gwithoutgexpressgpermissiongofgtheg
Publishers,gforgeducationalgpurposesgonly.gIngallgothergcases,gnogpartgofgthisgpublicationgma
ygbegreproduced,gstoredgingagretrievalgsystem,gorgtransmittedginganygformgorgbyganygmeans,gel
ectronic,gmechanical,gphotocopying,grecording,gorgotherwisegwithoutgeithergthegpriorgwritten
gpermissiongofgthegPublishersgorgaglicencegpermittinggrestrictedgcopyinggingthegUnited gKing
domgissuedgbygthegCopyrightgLicensinggAgencygLtd.,gBarnard’sgInn,g86gFettergLane,gLondo
ngEC4Ag1EN.gThisgbookgmaygnotgbeglent,gresold,ghiredgoutgorgotherwisegdisposedgofgbygw
aygofgtradeginganygformgofgbindinggorgcovergothergthangthatgingwhichgitgisgpublished,gwitho
utgthegpriorgconsentgofgthegPublishers.
ThisgpublicationgcontainsgcopyrightgmaterialgofgthegIFRS®g Foundationgingrespectgofgwhichg
allgrightsgaregreserved.gReproducedgbygPearsongEducation,gLtdgwithgthegpermissiongofgthegI
FRSgFoundation.gNogpermissionggrantedgtogthirdgpartiesgtogreproducegorgdistribute.gForgfullg
accessgtogIFRSgStandardsgandgthegworkgofgthegIFRSgFoundationgpleasegvisitghttp://eifrs.ifrs
.org.
ThegInternationalgAccountinggStandardsgBoard®,gthegIFRSgFoundation,gthegauthorsgandgthe
gpublishersgdognotgacceptgresponsibilitygforganyglossgcausedgbygactinggorgrefraininggfromgac
tinggingreliancegongthegmaterialgingthisgpublication,gwhethergsuchglossgisgcausedgbygneglige
ncegorgotherwise.
, Melville:gInternationalgFinancialgReporting,gInstructor'sgManual,g8thgediti
on
Contents
PrefacegAcknowledge v
ments gv
i
Chapterg1 ThegregulatorygframeworkgSolutio
nsg1.8gandg1.9 1
®
Chapterg2 ThegIASB gconceptualgframeworkg
Solutionsg2.7gandg2.8 3
Chapterg3 PresentationgofgfinancialgstatementsgSolutio
ng3.7 5
Chapterg4 Accountinggpolicies,gestimatesgandgerrorsgS
olutiong4.7,g4.8gandg4.9 8
Chapterg5 Property,gplantgandgequipmentgSol
utionsg5.7gandg5.8 10
Chapterg6 IntangiblegassetsgSol
utionsg6.8gandg6.9 13
Chapterg7 Impairmentgofgassets
gSolutionsg7.7gandg7. 15
8
Chapterg8 Non-
currentgassetsgheldgforgsalegandgdiscontinuedgoperationsgSolutiong8. 16
7
Chapterg9 Leases
Solutionsg9.7gandg9.8 17
Chapterg10 Inventories
Solutionsg10.5gandg10.6 19
Chapterg11 Financialginstruments
gSolutiong11.6 21
Chapterg12 ProvisionsgandgeventsgaftergthegreportinggperiodgSoluti
ong12.8 23
Chapterg13 RevenuegfromgcontractsgwithgcustomersgSo
lutionsg13.7gandg13.8 24
Chapterg14 EmployeegbenefitsgSolutio
nsg14.6gandg14.7 26
Chapterg15 TaxationgingfinancialgstatementsgSo
lutionsg15.7,g15.8gandg15.9 28
Chapterg16 StatementgofgcashgflowsgSolutio
nsg16.8,g16.9gandg16.10 34
Chapterg17 FinancialgreportingginghyperinflationarygeconomiesgSol
utiong17.5 39
iii
©g2022gPearsongEducationgLimited.gAllgRightsgReserve
d.
, Melville:gInternationalgFinancialgReporting,gInstructor'sgManual,g8thgediti
on
Chapterg18 Groupsgofgcompaniesg(1)gSolutio
nsg18.6gandg18.7 40
Chapterg19 Groupsgofgcompaniesg(2)gSolutio
nsg19.5gandg19.6 45
Chapterg20 AssociatesgandgjointgarrangementsgSolutio
ng20.5 51
Chapterg21 RelatedgpartiesgandgchangesgingforeigngexchangegratesgSoluti
ong21.4 53
Chapterg22 Ratioganalysis
Solutionsg22.5,g22.6gandg22.7 54
Chapterg23 Earningsgpergshare
Solutionsg23.6,g23.7,g23.8gandg23.9 59
Chapterg24 Segmentalganalysis
gSolutiong24.6 61
iv
©g2022gPearsongEducationgLimited.gAllgRightsgReserve
d.
