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EW 14: What spreading methods do
or “Spreading methods divide income and expenses from financial arrangements over time”
You could also call this:

“Explanation of what to include when using spreading methods for financial arrangements”

When you use a spreading method to calculate and allocate income and expenses for a financial arrangement, you need to include certain things. You must count all the money you have received and will receive for the arrangement. However, you don’t need to include some fees depending on the method you’re using. You also need to include all the money you have paid and will pay for the arrangement, again not counting certain fees. You must include any amounts that have been or will be cancelled under the arrangement. You also need to include any amounts you would have had to pay if they hadn’t been cancelled by law. If sections EW 32 to EW 48 apply to your situation, you might need to adjust the amounts you’re counting.

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Next up: EW 15B: Applying IFRSs to financial arrangements

or “Using special accounting rules for financial arrangements”
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Part E Timing and quantifying rules
Financial arrangements rules

EW 15What is included when spreading methods used

  1. A person using a spreading method must include, for the purpose of calculating and allocating income and expenditure under the financial arrangement,—

  2. all consideration that has been paid, and all consideration that is or will be payable, to the person for or under the financial arrangement, ignoring—
    1. non-contingent fees, if the relevant method is not the IFRS financial reporting method in section EW 15D:
      1. non-integral fees, if the relevant method is the IFRS financial reporting method in section EW 15D or the modified fair value method in section EW 15G; and
      2. all consideration that has been paid, and all consideration that is or will be payable, by the person for or under the financial arrangement, ignoring—
        1. non-contingent fees, if the relevant method is not the IFRS financial reporting method in section EW 15D:
          1. non-integral fees, if the relevant method is the IFRS financial reporting method in section EW 15D or the modified fair value method in section EW 15G; and
          2. all amounts that have been remitted, and all amounts that are to be remitted, by the person under the financial arrangement; and
            1. all amounts that would have been payable to the person under the financial arrangement if the amounts had not been remitted by law.

              1. If any of sections EW 32 to EW 48 applies, the consideration referred to in subsection (1)(a) and (b) is adjusted under the relevant section.

              Compare
              Notes
              • Section EW 15(1)(a): amended, on , by section 365(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
              • Section EW 15(1)(a)(i): inserted, on , by section 365(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
              • Section EW 15(1)(a)(ii): amended (with effect on 1 April 2008), on , by section 31(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
              • Section EW 15(1)(b): amended, on , by section 365(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
              • Section EW 15(1)(b)(i): inserted, on , by section 365(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
              • Section EW 15(1)(b)(ii): amended (with effect on 1 April 2008), on , by section 31(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
              • Section EW 15 list of defined terms IFRS: inserted, on , by section 365(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
              • Section EW 15 list of defined terms non-integral fee: inserted, on , by section 365(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).