ifrs 5 case study

Non-Current Assets Held for Sale and Discontinued Operations: IFRS 5

Updated: Sep 2, 2019

Entities sometimes intend to sell their non-current assets (e.g. Property, Plant and Equipment) and/or their operations. While the intention to sell a small piece of equipment may not affect investment decisions, the intention to sell off factories and operating units can affect investors’ choices. Because we must abide by the Financial Reporting Characteristics (specifically " Relevance ") and ensure that we are presenting all relevant information, we must ensure that readers of the financial statements know whether non-current assets and disposal groups are being held for sale. IFRS 5 provides guidance to help us determine when and how we should classify a non-current asset or disposal group as held for sale.

In this article, we review:

When to classify the non-current asset or disposal group as "Held for Sale."

How to recognize and measure the asset or disposal group once it is "Held for Sale."

How to present the potential sale in the Financial Statements.

When To Classify:

Non-Current assets (e.g. Property, Plant and Equipment) and disposal groups should be classified as “Held-for-Sale” when the “carrying amount will be recovered principally through a sale transaction rather than through continuing use.” (IFRS 5)

A disposal group is a group of assets that are to be disposed of together, in a single transaction (including their directly associated liabilities - e.g. a mortgage on a property). The group should include any goodwill acquired through a business combination and directly attributed to the disposal group. Examples of disposal groups include: operating units, cash generating units, and subsidiaries.

Throughout this article it is important to make clear that we are distinguishing between current and non-current assets. Current assets (such as most inventory) are expected to be sold or disposed of within the year. Therefore, there is no need to classify them in any special manner. We only address non-current assets when referring to “assets” in this article. However, disposal groups may include current assets as part of their bundle. For example - the sale of a subsidiary may include the subsidiary’s inventory on hand.

Now back to our original classification... In order for us to expect the carrying amount to be recovered principally through a sale, the following must be true about the non-current asset and/or disposal group:

1) It must be available for immediate sale in its current condition, AND

2) The sale must be highly probable:

The appropriate level of management must be committed to selling the asset AND

An active plan to find a buyer for the asset must have been initiated AND

The asset must be actively marketed at a reasonable price AND

A sale should be expected within 12 months from classification as held for sale. If the asset/disposal group takes longer than 12 months to sell, it will remain classified as Held-for-Sale as long as the remaining criteria are met, and as the delay is caused by events or circumstances that are not within the entity's control (e.g. a market downturn).

If an entity acquires asset(s) or disposal group(s) with the intention of selling/disposing of them, the entity can classify the asset(s)/disposal group(s) as Held-for-Sale at the acquisition date, as long as the criteria above are met.

Recognition and Measurement:

Initial recognition.

The asset(s) or disposal groups are initially valued at the lower of:

1) Carrying amount

2) Fair value (FV) less selling cost

Selling costs do not include tax on disposal

If FV less selling cost is < Carrying Amount, then we need to record an Impairment Loss . For more information about Impairment Losses , click here .

Sample Journal Entry:

The following is a sample journal entry assuming there is an impairment loss.

Subsequent Recognition

After the asset(s) or disposal group(s) have been classified as held for sale, they must be measured at every reporting period, at the lower of:

Carrying amount

FV less selling cost

Subsequent recognition can result in a further impairment loss (if FV less cost to sell < Carrying Amount), which is reported in Statement of Profit or Loss, as per the Impairment Criteria . Subsequent recognition can also result in a gain (if FV less cost to sell > Carrying Amount). As described in our article about Revaluations , gains first reverse any prior impairments and then anything more than the impairment loss becomes a Revaluation Surplus . See this article to review Revaluations .

The following is a sample journal entry assuming there is a gain after a prior impairment loss.

Depreciation

No depreciation is recorded when assets or disposal groups are held for sale.

Presentation

Non-Current Assets or Disposal Groups:

Non-Current Assets and disposal groups Held for Sale are presented in their own category “Non-Current Assets Classified as Held for Sale” in the Statement of Financial Position under the “Assets” category.

Disposal groups can include both assets and liabilities - we must therefore ensure that all elements are presented transparently. As such, the liabilities of a disposal group classified as held for sale must be presented separately from other liabilities. These liabilities cannot be offset by assets or presented as a single amount.

Discontinued Operations:

In order for an asset to be considered a discontinued operation, it must have been disposed of or classified as Held for Sale, and:

“represent a separate major line of business or geographical area of operations, OR

be part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations OR

be a subsidiary acquired exclusively with a view to resale.” (IFRS 5)

The discontinued operation is presented in the Statement of Comprehensive Income as the total of:

“the post-tax profit or loss of discontinued operations AND

the post-tax gain or loss recognized on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation.” (IFRS 5)

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IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

International financial reporting standard 5.

Overview of IFRS 5

• Issued: in 2004; followed by amendments
• Effective date: 1 January 2005
• the accounting for assets or disposal groups held for sale (those whose carrying amount will be recovered principally through a sale transaction rather than continuing use); and
• the presentation and disclosure of discontinued operation (component of an entity – subsidiary, line of business, geographical area of operations, etc. – that either has been disposed of or is classified as held for sale).
• IFRS 5 establishes conditions when the entity shall classify a non-current asset or a disposal group as held for sale.
• It sets out the rules for measurement of assets or disposal groups held for sale, recognition of impairment losses and their reversals, and rules for the situation when an entity makes changes to a plan of sale and asset or disposal group can no longer be classified as held for sale.
• IFRS 5 explains the term “discontinued operation”;
• It prescribes what shall be reported in the statement of comprehensive income and statement of cash flows with regard to it;
• Additional disclosures in the notes to the financial statements are also required.

Articles about IFRS 5

• Summary of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

Questions and Answers

• Asset held for sale not sold after 1 year - how shall you report it in our accounts since we failed to meet the conditions in IFRS 5?

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A Case Study on Top 10 common finance integration complexities.

From the IFRS Institute – March 11, 2022

KPMG recently assisted a large US manufacturing company when it was acquired by a European company reporting under IFRS Standards. The US company reported under US GAAP. In a matter of months, the US company successfully completed a GAAP conversion and a purchase price allocation, aligned its accounting policies, reporting structure and processes to those of the new parent. Discover here what made success possible.

Being acquired requires an alignment of accounting policies, financial reporting processes and controls, with the acquirer. When the acquirer applies IFRS Standards and the acquiree US GAAP, the exercise becomes even more complex because of the necessary conversion to IFRS Standards. In this article, we discuss what we believe are the 10 most common finance integration complexities that – if dealt with early on – can help make your finance integration successful.

1. IFRS Standards conversion A comprehensive and detailed accounting gap analysis is critical because it informs many of the other aspects of the finance integration discussed below. See KPMG Handbook,  IFRS® Standards compared to US GAAP , for a comprehensive comparison of the accounting standards.

From our case study

GAAP differences are highly dependent on the company and sector. In the Case Study, the following differences between US GAAP and IFRS Standards were the most impactful to the opening balance sheet.

2. Accounting policy alignment

Unlike US GAAP, IFRS Standards require uniform accounting policies across the group and many IFRS Standards preparers have detailed group accounting policy manuals. As a result, differences between acquirer and acquiree accounting policies may exist even in areas where no significant IFRS Standards vs US GAAP differences are identified. From our case study

To roll out the acquirer’s capitalization policy for development costs, it was necessary to reconcile how the company and the acquirer monitored the phases of a development project. It also required understanding how the acquirer identified when the capitalization criteria – such as technical feasibility and availability of adequate resources for the completion and use or sale of the intangible asset – are met in the circumstances.

Other instances in which the acquirer and acquiree’s accounting policies had to be aligned included:

• capitalization thresholds for PP&E and software development costs;
• useful life ranges for the depreciation and amortization of long-lived assets; and
• estimation methodologies for variable consideration and guarantees in revenue from customer contracts.

3. Purchase price allocation (PPA)

An acquiree expects to spend time and resources supporting the acquirer-selected valuation service provider in measuring acquisition date fair values, including of acquired intangible assets, PP&E, inventory and contingent consideration. This exercise is often the most impactful to the opening balance sheet.

However, a PPA does not stop there and IFRS 3 provides measurement exceptions from fair value for certain assets and liabilities, which instead are measured based on other applicable IFRS Standards. It is therefore important for management to understand the interaction between business combination accounting under IFRS 3 and other IFRS Standards. For example, vesting of pre-acquisition share-based payments may be accelerated under IFRS Standards as a result of a change in control, or certain liabilities may need to be remeasured using the acquirer’s assumptions. This often requires input from different parties, such as the tax department to conform deferred taxes, legal department to measure contingencies, and actuaries to measure defined benefit obligations.

In the Case Study, lease liabilities, defined benefit obligations and certain long-term provisions had to be remeasured using the acquirer’s incremental borrowing rate or discount rates and other relevant market-based measurement assumptions chosen by the acquirer in line with its policies. This had a much greater impact than any related differences between IFRS Standards and US GAAP itself. Quantification of such PPA adjustments also required the help of actuaries in addition to the valuation service provider.

4. Close calendar and reporting structure alignment

Acquirees are advised to coordinate with the new parent early to understand the group close calendar for when reporting is due and the reporting structure post-acquisition. Acquirers, especially large or multi-national companies, may have tight reporting deadlines and complex and rigid reporting structures. For example, subsidiaries may be asked to shorten their closing procedures and follow a required sequence of reporting, maintain several ledgers, or track purchase price adjustments a certain way within their reporting structure.

In the Case Study, the acquiree had to reduce its month-end close process from 10 to five days. The acquirer also instructed the acquiree to maintain a separate ledger to record and track the US GAAP to IFRS Standards adjustments and yet another separate ledger to record and track the purchase price adjustments (including goodwill) resulting from the acquisition accounting. The requirement for separate ledgers led to questions about the ledger in which certain adjustments that had elements of both (e.g. leases) would need to be tracked.

5. IT system integration

Until the acquiree’s systems are fully integrated into the systems landscape of the acquirer, the acquiree might need to resort to interim workarounds. Often, data is temporarily reported in Excel and uploaded into the parent’s system manually. To support a proper integration, the acquiree may need to revisit its chart of accounts structure to allow proper mapping to the parent’s reporting system. Consideration should also be given to the acquiree’s other financial reporting systems currently configured to support US GAAP. For example,  lease accounting  under US GAAP is different from IFRS Standards. Often a separate solution, or a significant update or remake of an existing one, is needed to be able to report under IFRS Standards.

In the Case Study, a third-party digital solutions provider was engaged to update the acquiree’s lease accounting software solution. The software was upgraded to recognize and measure leases under IFRS Standards in addition to US GAAP and calculate the resulting adjustments to the lease liability and the right-of-use asset.

6. Dual reporting

Post-acquisition, in addition to reporting to the parent under group accounting policies for consolidation purposes, the acquiree may need or wish to maintain a US GAAP ledger. For example, the company’s banks may require stand-alone US GAAP financial statements.

In this case, the acquiree needs to determine its primary versus secondary reporting – i.e. how the books and records are maintained and the order in which adjustments are calculated. If the primary reporting remains US GAAP, the company needs to track parent basis adjustments separately. If IFRS Standards become the primary reporting, adjustments are recorded to revert back to a US GAAP stand-alone basis.

In the Case Study, the acquiree changed its primary reporting to IFRS Standards. Standalone US GAAP financial information was required only on an annual basis for certain management reporting, primarily for determination of management compensation.

7. Management reporting, financial planning and analysis (FP&A)

Often the acquiree’s management is required to provide updated forecasts under IFRS Standards to the parent shortly after the deal. The FP&A team will also be looking for information on IFRS Standards and PPA adjustments to incorporate into its forecast. These might be requested sooner than actual numbers are available, so the acquiree should consider its plan for preparing information to be provided to the parent.

In the Case Study, the first forecast under IFRS Standards was due prior to the first quarterly reporting to the parent when many policy alignment and purchase price adjustments were not yet finalized. As a result, the FP&A team and the financial reporting team needed to work together closely and agree on areas that would be preliminarily included in the first forecast and updated once the numbers were known.

8. Tax and other regulatory compliance

The acquiree may need to comply with new tax filing requirements as a result of being acquired by a foreign company – e.g. provide specific data to the parent to comply with its local regulations. In addition, the acquiree will need to consider the impact of accounting for income tax under IFRS Standards versus US GAAP.

Related to the acquiree’s decision to maintain dual reporting (see Item 6 above), it is important to note that US federal tax is GAAP-agnostic, meaning a US company can choose its GAAP for book purposes independent of tax and does not have to maintain US GAAP books just for tax purposes. However, if US GAAP books are prepared, they will take priority for tax purposes.

In the Case Study, the acquiree obtained from the new parent a full list of internal and external parent reporting requirements for which the acquiree was expected to provide supporting data. For example, in addition to balance sheet and income statement information, the reporting included detailed information to support the parent financial statements notes, separate detailed reporting related to defined benefit obligations, separate current and deferred tax information.

In addition to financial information, reporting requirements included sustainability information to support the parent’s compliance with the EU’s Non-Financial Reporting Directive and EU taxonomy. The US subsidiary also was informed that beginning in fiscal 2023 it would be required to provide more extensive sustainability data to support the parent’s compliance with the EU’s currently proposed Corporate Sustainability Reporting Directive (CSRD).

Further, there were US tax compliance implications from the change in fiscal year-end (see below) and transactions with the new foreign parent.

9. Fiscal year-end change

If the US company has a fiscal year-end different from its parent, it might be worth changing to match the parent’s. While there is typically no legal requirement to do so, in the long run, aligning the year-end may bring efficiencies. The acquiree will need to close its books in support of the parent’s close schedule for group reporting purposes regardless. However, changing year-end may also be disruptive in the short run and have tax consequences. All impacts need to be considered.

In the Case Study, the fiscal year-ends did not match. The acquirer asked the acquiree to align with its year-end. This required engaging an IT service provider to make the necessary systems changes.

10. Project management

Many parallel workstreams are necessary to address all areas of the finance integration. Having a designated Project Management Office function ensures that all workstreams progress as planned and interdependencies are considered.

In the Case Study, the acquirer and acquiree formed a joint Steering Committee that presided over multiple workstreams, including accounting integration (including close process and chart of accounts alignment), FP&A, IFRS conversion, year-end alignment, PPA and valuation, tax integration, and project control. The joint Steering Committee held weekly meetings with the workstream leads to discuss the status of each workstream and share information.

The takeaway

In summary, for a company reporting under US GAAP, being acquired by an IFRS Standards preparer is more complex than just an IFRS Standards conversion and requires careful planning and constant communication with the new parent. Often, matters are made more complicated by cultural differences, language barriers and staff turnover.

We are here to help address these complexities as they arise for your company’s acquisition by a company that prepares financial statements under IFRS Standards. Visit KPMG Accounting Advisory Services –  Accounting Change Services : to see how KPMG may help you.

For related content,  see the following KPMG IFRS Perspectives articles  Converting from US GAAP to IFRS   and  Acquired by an IFRS company – more than a GAAP conversion .

1. KPMG IFRS Perspectives article,  IFRS vs. US GAAP: R&D costs

2. KPMG IFRS Perspectives article,  Accounting for legal claims: IFRS compares to US GAAP

3. KPMG IFRS Perspectives article,  Do you have an onerous contract?

4. KPMG IFRS Perspectives article,  Investment property: IFRS® Standard vs US GAAP

5. KPMG IFRS Perspectives article,  Customer accounting for software-as-a-service arrangements

6. KPMG IFRS Perspectives article,  Inventory accounting:  IFRS® Standard vs US GAAP

Meet the IFRS team

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How IAS 40 works, and our Top 5 differences from real estate accounting under US GAAP.

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Determining whether earnouts are consideration or compensation for services under IFRS® Standards.

Revenue accounting: IFRS® Standards vs US GAAP

Top 10 differences between IFRS 15 and ASC Topic 606 for revenue recognition.

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CPD technical article

01 January 2017

The challenge of implementing IFRS 5

Multiple-choice questions

Graham Holt

Implementation of ifrs 5 can be a complex and time-consuming exercise with significant judgment required, explains graham holt, studying this technical article and answering the related questions can count towards your verifiable cpd if you are following the unit route to cpd and the content is relevant to your learning and development needs. one hour of learning equates to one unit of cpd. we'd suggest that you use this as a guide when allocating yourself cpd units..

This article was first published in the January 2017 international edition of Accounting and Business magazine.

Over the last few years, the Interpretations Committee of the International Accounting Standards Board (IASB) has been considering certain issues relating to IFRS 5, Non-current Assets Held for Sale and Discontinued Operations . This article discusses some of those issues.

IFRS 5 requires an entity to classify non-current assets as held for sale when the assets' carrying amount will be recovered principally through a sale transaction rather than through continuing use. The standard further sets out more detailed conditions that an entity has to meet within the context of a typical sale transaction. 

These conditions include: a commitment to a plan to sell the asset; the asset being available for immediate sale; and the sale being highly probable within a 12-month time period. When an assets is classified as held for sale, the entity has to measure the asset at the lower of its carrying amount and fair value less costs to sell. At first sight these conditions and accounting practices seem straightforward but several issues have arisen since the standard was introduced.

One issue relates to whether loss of control other than through outright sale can result in a held-for-sale classification. For example, an entity could lose control through dilution of the shares held by the entity or due to call options held by a non-controlling shareholder.

The question therefore is whether ‘loss of control' is a factor that brings the event within the scope of IFRS 5, or whether there also needs to be a disposal. The loss of control is a significant economic event that meets the IFRS 5 requirements, and triggers the held-for-sale classification, provided the other relevant criteria are met. This is regardless of whether the entity will retain a non-controlling interest in its former subsidiary after the sale. This means that the recovery of the carrying amount of non-current assets or disposal group has changed to a method other than continuing use. 

It is argued that the current objective of IFRS 5 is to capture non-current assets (or disposal groups) over which an entity is committed to lose control, irrespective of the form of the transaction other than abandonment. Additionally, the non-current assets (or disposal group) must be available for immediate disposal, and it must be highly probable that the entity will lose control. The loss of control is a significant economic event and information about the event helps users to assess the timing, amount and uncertainty of an entity's future cashflows.

Another issue relates to whether an impairment loss recognised for a disposal group should be allocated to non-current assets in the group to the extent that it reduces the carrying amount of such assets to below their fair value less costs to sell. The Interpretations Committee has discussed this issue and noted that in determining the order of an impairment allocation to non-current assets, IFRS 5 does not refer to IAS 36, Impairment of Assets , which states that an impairment loss for a CGU (cash-generating  unit) should not reduce the carrying amount of an asset below the highest of:

• its fair value less costs of disposal (if measurable)
• its value in use (if determinable)

As a result, the Interpretations Committee has tentatively stated that IAS 36 does not affect the allocation of an impairment loss for a disposal group. However, it is still unsure as to whether the amount of impairment losses should be limited to: the carrying amount of the non-current assets measured under IFRS 5; the net assets of a disposal group; the total assets of a disposal group; or the non-current assets with the possible recognition of any liability for the excess. 

The interpretation of the definition of ‘discontinued operation' has come under scrutiny, particularly with regard to the concept in IFRS 5 of ‘separate major line of business or geographical area of operations'. IFRS 5 says that a discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale and meets certain conditions, two of which are part of a single coordinated plan, and that the discontinuance ‘represents separate major line of business or geographical area of operations'. 

This latter concept can be interpreted differently depending on how the entity determines its operating segments. Generally speaking, the disposal of a reportable segment will be the type of strategic shift that qualifies as a discontinued operation. The definition of discontinued operations is an area that the IASB has attempted to revise, but the issue has not yet been resolved. 

There are different practices as regards how transactions between continuing and discontinued operations are treated. Some entities eliminate the transactions in full without any adjustments, while others eliminate with adjustments to reflect how transactions between continuing or discontinued operations will be reflected in continuing operations going forward.

Finally, some entities do not eliminate such transactions. IFRS 5 attempts to address this issue by requiring an entity to ‘present and disclose information that enables users of the financial statements to evaluate the financial effects of discontinued operations and disposals of non-current assets (or disposal groups)'.

The standard itself does address how to reflect the impact of transactions between continuing and discontinued operations, but some believe that IFRS 5 requires adjustments to reflect the anticipated impact of the disposal to be included on the income statement itself rather than providing additional information in the notes. 

The Interpretations Committee discussed this issue and concluded that there were no requirements or guidance in IFRS 5 or IAS 1, Presentation of Financial Statements , in relation to the presentation of discontinued operations that could override the consolidation requirements in IFRS 10, Consolidated Financial Statements . At this point, the committee agreed that an entity was required to eliminate intra-group transactions in full prior to determining the presentation of continuing and discontinued operations. However, subsequently the committee felt that this and other issues were too broad for it to address, which indicated that a broad-scope project on IFRS 5 was necessary. 

Clarification

In 2013, IFRS 5 was amended to clarify the situation where a disposal group or non-current asset ceases to be classified as held for sale and is a subsidiary, joint operation, joint venture, associate or a portion of an interest in a joint venture or an associate (subsidiary et al). However, for a non-current asset (or a disposal group) that is not a subsidiary et al, ceasing to be classified as held for sale results in the inclusion of any measurement adjustment in profit or loss in the current period. 

In contrast, if a change to a sale plan involves a subsidiary et al, then IFRS 5 requires retrospective amendments. Questions have arisen as to why there is inconsistency between the two treatments and whether retrospective amendment applies not only to measurement but also to presentation. The Interpretations Committee felt that the retrospective amendment should apply to both measurement and presentation aspects of financial statements but because there was no observable diversity in practice, it has not taken this any further. 

Another issue relates to a situation in which an impairment loss recorded for a disposal group that is classified as held for sale subsequently reverses. IFRS 5 requires the recognition of a gain for a subsequent increase in fair value less costs to sell of a disposal group.  However, specifically, the question focuses on whether an impairment loss relating to goodwill can be reversed. 

Guidance on the reversal of an impairment loss for goodwill generally is set out in IAS 36, which states that an impairment loss recognised for goodwill should not be reversed in a subsequent period. IFRS 5 includes multiple references to IAS 36 but omits any reference to the above requirement. By not recognising a reversal of an impairment loss for goodwill, it essentially means that the disposal group is seen as comprising separate assets and liabilities, which are subject to different measurement requirements within IFRS.

No consensus

If the disposal group is seen as a single asset or liability, then the recognition and measurement requirements should be applied to the disposal group as a whole, rather than the individual assets and liabilities. The Interpretations Committee has discussed this issue three times at its past meetings and could not reach a consensus.

Another issue is whether IFRS 5 applies to a disposal group that consists mainly, or entirely, of financial instruments. IFRS 5 states that financial assets are excluded from its scope for measurement purposes. This issue is particularly relevant where the disposal group is expected to be sold at a loss. In applying the requirement of IFRS 5, it is possible that the loss is recognised only when the sale effectively occurs and this conflicts with the measurement principles in IFRS 5, which require measurement at fair value less costs to sell at the date of a ‘disposal group' classification. The Interpretations Committee noted that this was another example of the IFRS 5 measurement challenges.

Discontinuing a business operation or deciding to sell a major asset are important commercial events, which are likely to have a significant effect on an entity's results and net assets. IFRS 5 can have a significant effect on a company's profit or loss, the carrying values of its assets and on the presentation of results.

Implementation of IFRS 5 can be a complex and time-consuming exercise with significant judgment required especially in the areas above.

Graham Holt is director of professional studies at the accounting, finance and economics department at Manchester Metropolitan Business School

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IFRS 9 – case studies

Financial instruments are pervasive across all reporting entities and even more so in the financial services sector. In the nineties, there were a lot of problems with the accounting for financial instruments. In response to that the IASB issued IAS 39. However, the global financial crisis of 2008 has shown us that simplifications to the complex IAS 39 were necessary, so the IAS 39 has been replaced by IFRS 9 effective as of 1 January 2018. There are a number of IFRS standards that are relevant to financial instruments. 

This e-learning module provides practice cases relating to IFRS 9 financial instruments. The cases will go into more detail of the application of the scoping, classification and measurement and the impairment under IFRS 9. Hedge accounting is not included these practice cases for IFRS 9 but is covered in a separate module.

Different modules in the IFRS for Banks curriculum cover the different subtopics of IFRS 9 (classification, measurement, impairment and hedge accounting). In this case study e-learning, you will learn how to apply what has been covered in those modules. As such a basic understanding of IFRS 9 is expected. You can complete this course without having completed the other IFRS 9 e-learnings in the series, but is advisable to complete the others first.

This e-learning module will illustrate the application of some sections of IFRS 9 by means of cases.

At the end of this module, the participant will be able to:

Apply the theoretical knowledge in a case study on the scoping of IFRS 9

Apply the theoretical knowledge in a case study on classification and measurement

Apply the theoretical knowledge in a case study on impairment

This e-learning course is part of an e-learning series designed by PwC for the introduction of the IFRS 9 standard and to explain the impact for banks.

Our financial instruments related IFRS e-learnings are specifically designed for those in financial and actuarial functions within banks. These modules are also of interest to those working within Reporting, Controlling, IT, Internal Audit, Risk, ALM / Treasury, Account Management and Tax.

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The IFRS subject matter experts within our Capital Markets and Accounting Advisory Services group have designed the modules together with learning experts. They have extensive knowledge of and experience in implementing IFRS for banks and other financial institutions. In designing the modules, they have focused on the relevance and impact of IFRS, in theory and in practice, for banks specifically.

This e-learning course takes approximately 50 minutes to complete, and as such, it can provide 1 learning hour – 1 CPD point based on a 50-minute hour. Upon completion of this course, you can print the certificate of completion as an evidence that you undertook the course.

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• Topics: IFRS, Reporting
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Change Management Case Study Examples: Lessons from Industry Giants

Explore some transformative journeys with efficient Change Management Case Study examples. Delve into case studies from Coca-Cola, Heinz, Intuit, and many more. Dive in to unearth the strategic wisdom and pivotal lessons gleaned from the experiences of these titans in the industry. Read to learn about and grasp the Change Management art!

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In the fast-paced world of business, staying ahead means being able to adapt. Have you ever wondered how some brands manage to thrive despite huge challenges? This blog dives into a collection of Change Management Case Studies, sharing wisdom from top companies that have faced and conquered adversity. These aren’t just stories; they’re success strategies.  

Each Change Management Case Study reveals the smart choices and creative fixes that helped companies navigate rough waters. How did they turn crises into chances to grow? What can we take away from their successes and mistakes? Keep reading to discover these inspiring stories and learn how they can reshape your approach to change in your own business. 

Table of Contents  

1) What is Change Management in Business? 

2) Top Examples of Case Studies on Change Management 

    a) Coca-Cola 

    b) Adobe 

    c) Heinz  

    d) Intuit  

    e) Kodak 

    f) Barclays Bank 

3) Conclusion

What is Change Management in Business?  

Change management in business refers to the structured process of planning, implementing, and managing changes within an organisation. It involves anticipating, navigating, and adapting to shifts in strategy, technology, processes, or culture to achieve desired outcomes and sustain competitiveness.  

Effective Change Management entails identifying the need for change, engaging stakeholders, communicating effectively, and mitigating resistance to ensure smooth transitions. By embracing Change Management principles, businesses can enhance agility, resilience, and innovation, driving growth and success in dynamic environments. 

Top Examples of Case Studies on Change Management  

Let's explore some transformative journeys of industry leaders through compelling case studies on Change Management: 

1) Coca-Cola  

Coca-Cola, the beverage titan, acknowledged the necessity to evolve with consumer tastes, market shifts, and regulatory changes. The rise of health-conscious consumers prompted Coca-Cola to revamp its offerings and business approach. The company’s proactive Change Management centred on innovation and diversification, leading to the launch of healthier options like Coca-Cola Zero Sugar.  

Strategic alliances and acquisitions broadened Coca-Cola’s market reach and variety. Notably, Coca-Cola introduced eco-friendly packaging like the PlantBottle and championed sustainability in its marketing, bolstering its brand image. 

Acquire the expertise to facilitate smooth changes and propel your success forward – join our Change Management Practitioner Course now!  

2) Adobe  

Adobe, with its global workforce and significant revenue, faced a shift due to technological advancements and competitive pressures. In 2011, Adobe transitioned from physical software sales to cloud-based services, offering free downloads or subscriptions.  

This shift necessitated a transformation in Adobe’s HR practices, moving from traditional roles to a more human-centric approach, aligning with the company’s innovative and millennial-driven culture. 

3) Heinz  

Berkshire Hathaway and 3G Capital’s acquisition of Heinz led to immediate, sweeping changes. The new management implemented cost-cutting measures and altered executive perks.  

Additionally, it introduced a more insular leadership style, contrasting with 3G’s young, mobile, and bonus-driven executive team. 

Commence on a journey of transformative leadership and achieve measurable outcomes by joining our Change Management Foundation Course today!  

4) Intuit  

Steve Bennett’s leadership at Intuit marked a significant shift. Adopting the McKinsey 7S Model, he restructured the organisation to enhance decision-making, align rewards with strategy, and foster a performance-driven culture. His changes resulted in a notable increase in operating profits. 

5) Kodak  

Kodak, the pioneer of the first digital and megapixel cameras in 1975 and 1986, faced bankruptcy in 2012. Initially, digital technology was costly and had subpar image quality, leading Kodak to predict a decade before it threatened their traditional business. Despite this accurate forecast, Kodak focused on enhancing film quality rather than digital innovation.  

Dominating the market in 1976 and peaking with £12,52,16 billion in sales in 1999, Kodak’s reluctance to adopt new technology led to a decline, with revenues falling to £4,85,11,90 billion in 2011.  

In contrast, Fuji, Kodak’s competitor, embraced digital transformation and diversified into new ventures. 

Empower your team to manage change effectively through our Managing Change With Agile Methodology Training – sign up now!  

6) Barclays Bank  

The financial sector, particularly hit by the 2008 mortgage crisis, saw Barclays Capital aiming for global leadership under Bob Diamond. However, the London Inter-bank Offered Rate (LIBOR) scandal led to fines and resignations, prompting a strategic overhaul by new CEO Antony Jenkins in 2012.  

Changes included rebranding, refocusing on core markets, altering the business model away from high-risk lending, fostering a customer-centric culture, downsizing, and embracing technology for efficiency. These reforms aimed to strengthen Barclays, improve shareholder returns, and restore trust. 

Conclusion  

The discussed Change Management Case Study examples serve as a testament to the transformative power of adept Change Management. Let these insights from industry leaders motivate and direct you as you navigate your organisation towards a path of continuous innovation and enduring prosperity. 

Enhance your team’s ability to manage uncertainty and achieve impactful results – sign up for our comprehensive Risk Management For Change Training now!  

Frequently Asked Questions

The five key elements of Change Management typically include communication, leadership, stakeholder engagement, training and development, and measurement and evaluation. These elements form the foundation for successfully navigating organisational change and ensuring its effectiveness. 

The seven steps of Change Management involve identifying the need for change, developing a Change Management plan, communicating the change vision, empowering employees, implementing change initiatives, celebrating milestones, and sustaining change through ongoing evaluation and adaptation. 

The Knowledge Academy takes global learning to new heights, offering over 30,000 online courses across 490+ locations in 220 countries. This expansive reach ensures accessibility and convenience for learners worldwide.  

Alongside our diverse Online Course Catalogue, encompassing 17 major categories, we go the extra mile by providing a plethora of free educational Online Resources like News updates, Blogs , videos, webinars, and interview questions. Tailoring learning experiences further, professionals can maximise value with customisable Course Bundles of TKA .

The Knowledge Academy’s Knowledge Pass , a prepaid voucher, adds another layer of flexibility, allowing course bookings over a 12-month period. Join us on a journey where education knows no bounds.  

The Knowledge Academy offers various Change Management Courses , including the Change Management Practitioner Course, Change Management Foundation Training, and Risk Management for Change Training. These courses cater to different skill levels, providing comprehensive insights into Change Management Metrics .   

Our Project Management Blogs cover a range of topics related to Change Management, offering valuable resources, best practices, and industry insights. Whether you are a beginner or looking to advance your Project Management skills, The Knowledge Academy's diverse courses and informative blogs have got you covered.  

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JSmol Viewer

Landscape drivers of floods genesis (case study: mayo mizao peri-urban watershed in far north cameroon).

1. Introduction

2. materials and methods, 2.1. presentation of the mayo mizao watershed, 2.2. field data collection process, 2.2.1. double-opened ring method: device and operation, 2.2.2. porchet method, 2.2.3. field trial deployment method, 2.3. data processing and analysis, 2.3.1. the calculation of the saturated hydraulic conductivity values, 2.3.2. data analysis, 3.1. lithology, land use type, and hydraulic conductivity (k s ) of soils in the mayo mizao watershed, 3.2. impact of soil type on the variability of k s in the mayo mizao watershed.

Click here to enlarge figure

3.3. Influence of Land Use Type on the Variability of K s in the Mayo Mizao Watershed

3.4. combined effects of soil type and land use type on the variability of k s, 3.5. impact of the cultivation practices on the variability of k s in the mayo mizao catchment, 3.5.1. farming practices conducted on the vertisols, 3.5.2. farming practices conducted on the halomorphic soils, 4. discussion, 5. conclusions, supplementary materials, author contributions, data availability statement, conflicts of interest.

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Share and Cite

Bouba, L.; Ayral, P.-A.; Sauvagnargues, S. Landscape Drivers of Floods Genesis (Case Study: Mayo Mizao Peri-Urban Watershed in Far North Cameroon). Water 2024 , 16 , 1672. https://doi.org/10.3390/w16121672

Bouba L, Ayral P-A, Sauvagnargues S. Landscape Drivers of Floods Genesis (Case Study: Mayo Mizao Peri-Urban Watershed in Far North Cameroon). Water . 2024; 16(12):1672. https://doi.org/10.3390/w16121672

Bouba, Lucas, Pierre-Alain Ayral, and Sophie Sauvagnargues. 2024. "Landscape Drivers of Floods Genesis (Case Study: Mayo Mizao Peri-Urban Watershed in Far North Cameroon)" Water 16, no. 12: 1672. https://doi.org/10.3390/w16121672

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The IFRS ® Foundation has today published a case study report showing how companies from different parts of the world have improved communication in their IFRS financial statements. 

Better Communication in Financial Reporting—Making disclosures more meaningful contains six case studies from varied industries. Its aim is to illustrate how improvements can be made and inspire other companies to initiate their own improvement projects.

The report explains the process these companies have gone through to improve disclosures in the notes to their IFRS financial statements and shows examples of the improvements made. By identifying what information is relevant, prioritising it appropriately and presenting it in a clear and simple manner, they have made their financial statements easier for investors to read and understand. Through the use of examples, the report shows that relatively small changes can significantly improve the quality of the financial information that companies provide. 

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The information in financial statements has to be communicated clearly and effectively to help investors make investment decisions. We hope that this report will inspire companies to start or continue their journeys to improve the communication of information in their financial statements.

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The case studies included in the report are Fonterra Co-operative Group Limited, Wesfarmers Limited, PotashCorp, ITV plc, Orange S.A. and Pandora A/S.

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