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vi Preface

standards, it is clear that the impact is quite significant in individual cases and that the
new disclosures provide considerably more detailed information.
Similarly, the implementation of IFRS 16 – Leases (effective from 1 January 2019
onwards) and its interactions with other standards has given rise to challenging
implementation questions. The Interpretations Committee has discussed the interaction
with IAS 12 – Income Taxes and IFRS 11 – Joint Arrangements – and practitioners are
considering how the recognition of right-of-use assets and lease liabilities affects the
application of IAS 36 – Impairment of Assets – and IAS 37 – Provisions, Contingent
Liabilities and Contingent Assets.
IFRS 17 – Insurance Contracts – was published in June 2017, but only comes into effect
in 2021. The standard has already been endorsed in a number of important jurisdictions,
others are still considering the impact that the standard will have on the insurance
industry. The IASB has devoted additional resources in support of insurance companies
facing significant implementation challenges. The IFRS 17 Transition Resource Group
(TRG) has met three times to discuss implementation issues. Hans Hoogervorst, the
IASB’s chairman, noted at a conference in June 2018 that ‘[t]he discussions are also
useful for us at the IASB to see if any action is needed to assist with education, to address
unforeseen issues of inconsistencies, lack of clarity or unforeseen complexities when
implementing the new Standard. The experience with the previous Revenue
Recognition TRG has made clear that sometimes it can be necessary for the IASB to
consider amendments to address questions and indeed we have considered some for
IFRS 17 last week.’ At the time of writing, the IASB is expected to have a discussion at
its October 2018 meeting not just about the issues brought forward by the TRG but also
other requests by participants that may result in future amendments to IFRS 17.

The IASB is continuing to work on the projects in its work plan for the period from 2017
until 2021, which can be divided into three elements: the Better Communication in
Financial Reporting initiative, the research projects, and the standard-setting and
maintenance projects. Constituents will welcome the fact that the IASB’s standard-
setting and maintenance agenda is, for the first time, not dominated by the development
of a series of ambitious and major new standards, but rather focusses on narrow scope
projects that address certain aspects of existing standards.
The IASB made progress in 2018 on its Better Communication in Financial Reporting
initiative and published a practice statement on materiality and a discussion paper on
the wider principles of disclosure. In addition, the Board continues to work on other
aspects of the initiative, such as the presentation of financial statements, management
commentary and the taxonomy. Hans Hoogervorst acknowledged in a speech this year
‘…there is a lot going on in the world of wider corporate reporting. There is increasing
interest in trends like sustainability reporting, integrated reporting and reporting for
public policy interests. … there is a lot of broader financial information that is not
adequately captured in financial statements: intangibles, business model, economic
environment and increasingly sustainability issues (climate change).’ The IASB believes
that the natural place to consider these developments is in the context of its project on
updating the guidance on the management commentary section. Although the IASB has
 Preface vii

limited resources, we believe it should take an active role when it comes to the efforts
to improve the ‘broader financial report’.
As part of its active research agenda, the IASB published a discussion paper on financial
instruments with characteristics of equity. The discussion paper looks at ways to help
entities determine whether instruments are liabilities or equity by providing a clear
rationale for this distinction, while also providing investors with better information
about them. The IASB discussion papers on business combinations under common
control, dynamic risk management, and rate-regulated activities are now no longer
expected in 2018. We encourage the IASB to continue its work on these technically
complex but important projects as they deal with issues that have been the source of
many accounting questions. In particular, any improvements and simplifications that
may follow from the project on goodwill and impairment would be welcomed by
preparers, users and auditors alike.

This edition of International GAAP covers the many interpretations, practices and solutions
that have now been developed based on our work with clients, and discussions with
regulators, standard-setters and other professionals. We believe that International GAAP,
now in its fourteenth edition, plays an important role in helping companies as they apply
IFRS 9, IFRS 15 and IFRS 16 for the first time. Each of these standards introduces changes
that have given rise to implementation challenges and questions about the recognition,
measurement, presentation and disclosure requirements.
Our team of authors and reviewers hails from all parts of the world and includes not
only our global technical experts but also senior client-facing staff. This gives us an in-
depth knowledge of practice in many different countries and industry sectors, enabling
us to go beyond mere recitation of the requirements of standards to explaining their
application in many varied situations.
We are deeply indebted to many of our colleagues within the global organisation of EY
for their selfless assistance and support in the publication of this book. It has been a
truly international effort, with valuable contributions from EY people around the globe.
Our thanks go particularly to those who reviewed, edited and assisted in the preparation
of drafts, most notably: Elisa Alfieri, John Alton, Danielle Austin, Paul Beswick, Silke
Blaschke, Brian Byrne, Wan Yi Cao, Larissa Clark, Tony Clifford, Angela Covic, Tai
Danmola, Laney Doyle, Josh Forgione, Tommy Fung, Peter Gittens, Laure Guégan, Paul
Hebditch, Jason Janoff, Junyoung Jeong, Guy Jones, Steinar Kvifte, Vincent de La
Bachelerie, Twan van Limpt, Michiel van der Lof, James Luke, Mark Mahar, Hassam
Malik, John O’Grady, Margaret Pankhurst, Christiana Panayidou, Pierre Phan van phi,
Gerard van Santen, Nicola Sawaki, Alison Spivey, Leo van der Tas, Paula Tashima,
Evangelia Tsakiroglou, Hans van der Veen, Arne Weber and Luci Wright.
Our thanks also go to everyone who directly or indirectly contributed to the book’s
creation, including the following members of the Financial Reporting Group in the UK:
Denise Brand, Maria Kingston, Anna Malcolm, Andrea Maylor, Mqondisi Ndlovu and
Anna Pickup.
We also thank Jeremy Gugenheim for his assistance with the production technology
throughout the period of writing.
viii Preface

London, Jeremy Barnes Alan Garry Richard Moore

October 2018 Martin Beyersdorff Archie Groenewald Tina Patel
Mike Bonham Prahalad Halgeri Michael Pratt
Linzi Carr Jane Hurworth Tim Rogerson
Rob Carrington Ted Jones Vadim Shelaginov
Victor Chan Bernd Kremp Anna Sirocka
Wei Li Chan Sanjeev Kumar David Stolker
Larissa Connor Max Lienhard Claire Taylor
Pieter Dekker Dean Lockhart Michael Varila
Tim Denton Sharon MacIntyre Tracey Waring
Dennis Deysel Takahiro Makino Jane Watson
Dennis Esterhuizen Amanda Marrion
Diego Fernandez Emily Moll
 ix

Lists of chapters

Volume 1

1 International GAAP ............................................................................................................ 1

2 The IASB’s Conceptual Framework ............................................................................. 35
3 Presentation of financial statements and accounting policies............................... 107
4 Non-current assets held for sale and discontinued operations..............................181
5 First-time adoption ....................................................................................................... 209
6 Consolidated financial statements .............................................................................. 357
7 Consolidation procedures and non-controlling interests .................................... 463
8 Separate and individual financial statements............................................................ 531
9 Business combinations .................................................................................................. 587
10 Business combinations under common control .......................................................705
11 Investments in associates and joint ventures ............................................................ 745
12 Joint arrangements ........................................................................................................ 823
13 Disclosure of interests in other entities ..................................................................... 875
14 Fair value measurement ................................................................................................ 931
15 Foreign exchange ......................................................................................................... 1105
16 Hyperinflation ................................................................................................................ 1175
17 Intangible assets ........................................................................................................... 1209
18 Property, plant and equipment .................................................................................. 1293
19 Investment property .................................................................................................... 1349
20 Impairment of fixed assets and goodwill ................................................................. 1421
21 Capitalisation of borrowing costs .............................................................................. 1547
22 Inventories ..................................................................................................................... 1575

Index of extracts from financial statements .............................................................. index 1

Index of standards ........................................................................................................... index 7
Index ...............................................................................................................................index 105

The lists of chapters in volumes 2 and 3 follow overleaf.

x Lists of chapters

Volume 2

23 Leases (IAS 17) ............................................................................................................... 1601

24 Leases (IFRS 16) ............................................................................................................ 1685
25 Government grants ........................................................................................................ 1771
26 Service concession arrangements ............................................................................. 1793
27 Provisions, contingent liabilities and contingent assets ...................................... 1863
28 Revenue .......................................................................................................................... 1957
29 Income taxes ................................................................................................................ 2333
30 Share-based payment ................................................................................................. 2499
31 Employee benefits ........................................................................................................ 2761
32 Operating segments ..................................................................................................... 2843
33 Earnings per share ....................................................................................................... 2887
34 Events after the reporting period .............................................................................. 2941
35 Related party disclosures ............................................................................................ 2961
36 Statement of cash flows ............................................................................................. 2997
37 Interim financial reporting ......................................................................................... 3043
38 Agriculture ..................................................................................................................... 3127
39 Extractive industries .................................................................................................... 3179

Index of extracts from financial statements .............................................................. index 1

Index of standards ........................................................................................................... index 7
Index ..............................................................................................................................index 105

The list of chapters in volume 3 follows overleaf.

 Lists of chapters xi

Volume 3

40 Financial instruments: Introduction .........................................................................3401

41 Financial instruments: Definitions and scope ........................................................ 3409
42 Financial instruments: Derivatives and embedded derivatives ......................... 3443
43 Financial instruments: Financial liabilities and equity ......................................... 3483
44 Financial instruments: Classification ........................................................................ 3591
45 Financial instruments: Recognition and initial measurement .............................3657
46 Financial instruments: Subsequent measurement ................................................. 3681
47 Financial instruments: Impairment ........................................................................... 3719
48 Financial instruments: Derecognition ......................................................................3875
49 Financial instruments: Hedge accounting .............................................................. 3963
50 Financial instruments: Presentation and disclosure .............................................. 4163
51 Insurance contracts (IFRS 4) ...................................................................................... 4277
52 Insurance contracts (IFRS 17) ..................................................................................... 4419

Index of extracts from financial statements .............................................................. index 1

Index of standards ........................................................................................................... index 7
Index ...............................................................................................................................index 105
xii Lists of chapters
 xiii

Abbreviations

The following abbreviations are used in this book:

Professional and regulatory bodies:

AASB Australian Accounting Standards Board
AcSB Accounting Standards Board of Canada
AICPA American Institute of Certified Public Accountants
AOSSG Asian-Oceanian Standard-Setters Group
APB Accounting Principles Board (of the AICPA, predecessor of the FASB)
ARC Accounting Regulatory Committee of representatives of EU Member States
ASAF Accounting Standards Advisory Forum
ASB Accounting Standards Board in the UK
ASBJ Accounting Standards Board of Japan
ASU Accounting Standards Update
CASC China Accounting Standards Committee
CESR Committee of European Securities Regulators, an independent committee
whose members comprised senior representatives from EU securities
regulators (replaced by ESMA)
CICA Canadian Institute of Chartered Accountants
EC European Commission
ECB European Central Bank
ECOFIN The Economic and Financial Affairs Council
EDTF Enhanced Disclosure Task Force of the (FSB)
EFRAG European Financial Reporting Advisory Group
EITF Emerging Issues Task Force in the US
EPRA European Public Real Estate Association
ESMA European Securities and Markets Authority (see CESR)
EU European Union
FAF Financial Accounting Foundation
FASB Financial Accounting Standards Board in the US
FCAG Financial Crisis Advisory Group
xiv Abbreviations

FEE Federation of European Accountants

FSB Financial Stability Board (successor to the FSF)
FSF Financial Stability Forum
G4+1 The (now disbanded) group of four plus 1, actually with six members, that
comprised an informal ‘think tank’ of staff from the standard setters from
Australia, Canada, New Zealand, UK, and USA, plus the IASC
G7 The Group of Seven Finance Ministers (successor to G8)
G8 The Group of Eight Finance Ministers
G20 The Group of Twenty Finance Ministers and Central Bank Governors
GPPC Global Public Policy Committee of the six largest accounting networks
HKICPA Hong Kong Institute of Certified Public Accountants
ICAI Institute of Chartered Accountants of India
IASB International Accounting Standards Board
IASC International Accounting Standards Committee. The former Board of the
IASC was the predecessor of the IASB
IASCF International Accounting Standards Committee Foundation (predecessor of
the IFRS Foundation)
ICAEW Institute of Chartered Accountants in England and Wales
ICAS Institute of Chartered Accountants of Scotland
IFAC International Federation of Accountants
IFASS International Forum of Accounting Standard Setters
IFRIC The IFRS Interpretations Committee (formerly the International Financial
Reporting Interpretations Committee) of the IASB
IGC Implementation Guidance Committee on IAS 39 (now disbanded)
IOSCO International Organisation of Securities Commissions
IPSASB International Public Sector Accounting Standards Board
IPTF International Practices Task Force (a task force of the SEC Regulations
Committee)
ISDA International Swaps and Derivatives Association
IVSC International Valuation Standards Council
KASB Korea Accounting Standards Board
RICS Royal Institution of Chartered Surveyors
SAC Standards Advisory Council, predecessor of the IFRS Advisory Council
which provides advice to the IASB on a wide range of issues
SEC Securities and Exchange Commission (the US securities regulator)
SIC Standing Interpretations Committee of the IASC (replaced by IFRIC)
TEG Technical Expert Group, an advisor to the European Commission
 Abbreviations xv

TRG Joint Transition Resource Group for Revenue Recognition

Accounting related terms:

ADS American Depositary Shares
AFS Available-for-sale investment
ARB Accounting Research Bulletins (issued by the AICPA)
ARS Accounting Research Studies (issued by the APB)
ASC Accounting Standards Codification®. The single source of authoritative US
GAAP recognised by the FASB, to be applied to non-governmental entities
for interim and accounting periods ending after 15 September 2009
ASU Accounting Standards Update
BCUCC Business Combinations Under Common Control
CCIRS Cross Currency Interest Rate Swap
CDO Collateralised Debt Obligation
CGU Cash-generating Unit
CU Currency Unit
DD&A Depreciation, Depletion and Amortisation
DPF Discretionary Participation Feature
E&E Exploration and Evaluation
EBIT Earnings Before Interest and Taxes
EBITDA Earnings Before Interest, Taxes, Depreciation and Amortisation
EIR Effective Interest Rate
EPS Earnings per Share
FAS Financial Accounting Standards (issued by the FASB). Superseded by
Accounting Standards Codification® (ASC)
FC Foreign currency
FICE Financial Instruments with the Characteristics of Equity
FIFO First-In, First-Out basis of valuation
FRS Financial Reporting Standard (issued by the ASB)
FTA First-time Adoption
FVLCD Fair value less costs of disposal
FVLCS Fair value less costs to sell (following the issue of IFRS 13, generally replaced
by FVLCD)
FVPL Fair value through profit and loss
FVOCI Fair value through other comprehensive income
xvi Abbreviations

GAAP Generally accepted accounting practice (as it applies under IFRS), or

generally accepted accounting principles (as it applies to the US)
HTM Held-to-maturity investment
IAS International Accounting Standard (issued by the former board of the IASC)
IBNR Incurred but not reported claims
IFRS International Financial Reporting Standard (issued by the IASB)
IGC Q&A Implementation guidance to the original version of IAS 39 (issued by the IGC)
IPO Initial Public Offering
IPR&D In-process Research and Development
IPSAS International Public Sector Accounting Standard
IRR Internal Rate of Return
IRS Interest Rate Swap
JA Joint Arrangement
JCA Jointly Controlled Asset
JCE Jointly Controlled Entity
JCO Jointly Controlled Operation
JO Joint Operation
JV Joint Venture
LAT Liability Adequacy Test
LC Local Currency
LIBOR London Inter Bank Offered Rate
LIFO Last-In, First-Out basis of valuation
NCI Non-controlling Interest
NBV Net Book Value
NPV Net Present Value
NRV Net Realisable Value
OCI Other Comprehensive Income
PP&E Property, Plant and Equipment
R&D Research and Development
SCA Service Concession Arrangement
SE Structured Entity
SFAC Statement of Financial Accounting Concepts (issued by the FASB as part of
its conceptual framework project)
SFAS Statement of Financial Accounting Standards (issued by the FASB).
Superseded by Accounting Standards Codification® (ASC)
SME Small or medium-sized entity
 Abbreviations xvii

SPE Special Purpose Entity

SV Separate Vehicle
TSR Total Shareholder Return
VIU Value In Use
WACC Weighted Average Cost of Capital

References to IFRSs, IASs, Interpretations and supporting documentation:

AG Application Guidance
AV Alternative View
BCZ Basis for Conclusions on IASs
BC Basis for Conclusions on IFRSs and IASs
DI Draft Interpretation
DO Dissenting Opinion
DP Discussion Paper
ED Exposure Draft
IE Illustrative Examples on IFRSs and IASs
IG Implementation Guidance
IN Introduction to IFRSs and IASs
PIR Post-implementation Review
xviii Abbreviations
 xix

Authoritative literature

The content of this book takes into account all accounting standards and other relevant
rules issued up to September 2018. Consequently, it covers the IASB’s Conceptual
Framework for Financial Reporting and authoritative literature listed below.
References in the main text of each chapter to the pronouncements below are generally
to the versions of those pronouncements as approved and expected to be included in
the Blue Book edition of the Bound Volume 2019 International Financial Reporting
Standards – IFRS – Consolidated without early application – Official pronouncements
applicable on 1 January 2019, to be published by the IASB.
References to those pronouncements below which have an effective date after
1 January 2019 (such as IFRS 17 – Insurance contracts) are to the versions of those
pronouncements as denoted by the ISBN references noted below. These are expected
to be included in the Red Book edition of the Bound Volume 2019 International
Financial Reporting Standards – IFRS – Official pronouncements issued at
1 January 2019, to be published by the IASB.
US GAAP accounting standards are organised within a comprehensive FASB
Accounting Standards Codification®, which is now the single source of authoritative US
GAAP recognised by the FASB to be applied to non-governmental entities and has been
applied in this publication.

† The standards and interpretations marked with a dagger have been withdrawn or superseded.

IASB Framework
The Conceptual Framework for Financial Reporting

International Financial Reporting Standards (2019 Bound Volume)

IFRS 1 First-time Adoption of International Financial Reporting Standards

IFRS 2 Share-based Payment
IFRS 3 Business Combinations
† IFRS 4 Insurance Contracts
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
IFRS 6 Exploration for and Evaluation of Mineral Resources
IFRS 7 Financial Instruments: Disclosures
IFRS 8 Operating Segments
IFRS 9 Financial Instruments
IFRS 10 Consolidated Financial Statements
xx Authoritative literature

IFRS 11 Joint Arrangements

IFRS 12 Disclosure of Interests in Other Entities
IFRS 13 Fair Value Measurement
IFRS 14 Regulatory Deferral Accounts
IFRS 15 Revenue from Contracts with Customers
IFRS 16 Leases

International Financial Reporting Standards (mandatory after 1 January 2019)

IFRS 17 Insurance Contracts

International Accounting Standards (2019 Bound Volume)

IAS 1 Presentation of Financial Statements

IAS 2 Inventories
IAS 7 Statement of Cash Flows
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
IAS 10 Events after the Reporting Period
IAS 12 Income Taxes
IAS 16 Property, Plant and Equipment
† IAS 17 Leases
IAS 19 Employee Benefits
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
IAS 21 The Effects of Changes in Foreign Exchange Rates
IAS 23 Borrowing Costs
IAS 24 Related Party Disclosures
IAS 26 Accounting and Reporting by Retirement Benefit Plans
IAS 27 Separate Financial Statements
IAS 28 Investments in Associates and Joint Ventures
IAS 29 Financial Reporting in Hyperinflationary Economies
IAS 32 Financial Instruments: Presentation
IAS 33 Earnings per Share
IAS 34 Interim Financial Reporting
IAS 36 Impairment of Assets
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
IAS 38 Intangible Assets
IAS 39 Financial Instruments: Recognition and Measurement
IAS 40 Investment Property
 Authoritative literature xxi

IAS 41 Agriculture

IFRS Interpretations Committee Interpretations

IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities

IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments
† IFRIC 4 Determining whether an Arrangement contains a Lease
IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental
Rehabilitation Funds
IFRIC 6 Liabilities arising from Participating in a Specific Market – Waste Electrical and
Electronic Equipment
IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in
Hyperinflationary Economies
IFRIC 10 Interim Financial Reporting and Impairment
IFRIC 12 Service Concession Arrangements
IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements
and their Interaction
IFRIC 16 Hedges of a Net Investment in a Foreign Operation
IFRIC 17 Distributions of Non-cash Assets to Owners
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
IFRIC 21 Levies
IFRIC 22 Foreign Currency Transactions and Advance Consideration

IFRIC 23 Uncertainty over Income Tax Treatments

Standing Interpretations Committee Interpretations

SIC-7 Introduction of the Euro

SIC-10 Government Assistance – No Specific Relation to Operating Activities
† SIC-15 Operating Leases – Incentives
SIC-25 Income Taxes – Changes in the Tax Status of an Entity or its Shareholders
† SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease
SIC-29 Service Concession Arrangements: Disclosures
SIC-32 Intangible Assets – Web Site Costs

IASB Exposure Drafts

ED/2015/1 Classification of Liabilities (Proposed amendments to IAS 1)

ED/2015/5 Remeasurement on a Plan Amendment, Curtailment or Settlement/Availability of a
Refund from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14)
ED/2017/1 Annual Improvements to IFRS Standards 2015––2017 Cycle
xxii Authoritative literature

ED/2017/2 Improvements to IFRS 8 Operating Segments (Proposed amendments to IFRS 8

and IAS 34)
ED/2017/3 Prepayment Features with Negative Compensation (Proposed amendments to IFRS 9)
ED/2017/4 Property, Plant and Equipment—Proceeds before Intended Use (Proposed
amendments to IAS 16)
ED/2017/5 Accounting Policies and Accounting Estimates (Proposed amendments to IAS 8)
ED/2017/6 Definition of Material (Proposed amendments to IAS 1 and IAS 8)
ED/2018/1 Accounting Policy Changes (Proposed amendments to IAS 8)

IASB Discussion Papers

DP/2014/1 Accounting for Dynamic Risk Management: a Portfolio Revaluation Approach to

Macro Hedging
DP/2014/2 Reporting the Financial Effects of Rate Regulation
DP/2017/1 Disclosure Initiative—Principles of Disclosure
DP/2018/1 Financial Instruments with Characteristics of Equity

Other IASB publications

IFRS for SMEs International Financial Reporting Standard (IFRS) for Small and Medium-sized
Entities (SMEs)
Practice Management Commentary
Statement 1
Practice Making Materiality Judgements
Statement 2
PTU/2018/1 IFRS Taxonomy 2018 – Common Practice (IFRS 13 Fair Value Measurement)
 1

Chapter 1 International GAAP

1 WHY INTERNATIONAL FINANCIAL REPORTING STANDARDS

MATTER ..............................................................................................................3

2 THE IFRS FOUNDATION AND THE IASB ....................................................... 4

2.1 The standard-setting structure............................................................................... 4
2.2 The IFRS Foundation .............................................................................................. 4
2.3 The Monitoring Board ............................................................................................. 6
2.4 The International Accounting Standards Board (IASB) .................................... 8
2.5 The IFRS Interpretations Committee (the Interpretations
Committee) ................................................................................................................ 9
2.6 The IASB’s and IFRS Interpretations Committee’s Due Process
Handbook ................................................................................................................. 10
2.7 The IFRS Advisory Council (the Advisory Council) ........................................ 11
2.8 Accounting Standards Advisory Forum (ASAF) ............................................... 12
2.9 Other advisory bodies ............................................................................................ 13
3 THE IASB’S TECHNICAL AGENDA AND CONVERGENCE WITH US
GAAP ............................................................................................................... 14
3.1 The IASB’s current priorities and future agenda.............................................. 14
3.2 IFRS/US GAAP convergence ............................................................................... 14
4 THE ADOPTION OF IFRS AROUND THE WORLD ........................................... 15
4.1 Worldwide adoption .............................................................................................. 15
4.2 Europe....................................................................................................................... 18
4.2.1 EU .............................................................................................................. 18
4.2.2 Russia ........................................................................................................22
4.3 Americas ................................................................................................................... 23
4.3.1 US ............................................................................................................... 23
4.3.2 Canada ...................................................................................................... 23
4.3.3 Brazil .........................................................................................................24
Another random document with
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nearby county school systems. One of the rangers, Lloyd Foster,
became so attached to the ideas being presented that he obtained a
leave of absence from his work, persistently promoted the project,
and became Tremont’s first director. Experienced teachers such as
Elsie Burrell and Randolph Shields helped Foster convert talk into
action, rhetoric into experience.
The center soon offered a real alternative to conventional and
overcrowded schools caught in the midst of industrialization.
Teacher-led or parent-supervised classes from a multitude of states
and cities organized themselves, paid a base fee for each member,
and came to the valley for one week during the year. Within months,
Tremont was teaching elementary students at the rate of thousands
per year. The organizers retained their informal, camp-like approach
to interested groups and added to the original dining room and two
dormitories an audiovisual room and a laboratory complete with
powerful microscopes. As the program expanded, children could
fulfill their imaginative promptings in an art room, or build a miniature
skidder in the crafts room, or turn to a library of extensive readings.
As the idea of environmental education at Tremont and elsewhere
spread by word of mouth, volunteers from across the country arrived
and aided those already at work. High school and college students
participated in and still attend weekend conferences on the activities
and the progress of the Center.
They learn, first of all, fundamental concepts that are expressed
simply: “You don’t have to have a lot of fancy buildings to do a good
program,” or “You know, sometimes we teach a lot of theory and we
don’t really get down to—I guess you’d call it the nitty-gritty,” or even
“Now don’t chicken out, the way some of you did last time, step in
the water.”
They learn of “quiet hour,” when, at the beginning of the week, each
child stakes out a spot for himself in the woods, beside the stream,
wherever choice leads. For an hour each day, in sun or rain,
everybody seeks his or her own place and is assured of peace and
privacy. A girl writes a poem to her parents; a fourth-grader
contemplates on a rock by the water; and almost everyone who
observes the quiet
hour looks forward to
it eagerly each day.

Fred R. Bell
In an attempt to capture the spirit
of the old days, a family climbs
about a Cades Cove barn.
 Pages 142-143: Members of the Tilman Ownby family
of Dudley Creek, near Gatlinburg, gather for a reunion
in the early 1900s. Many of their descendants still live
in the Smokies area today.
National Park Service
 Children anxiously line up to go back a few years with
Elsie Burrell at the one-room schoolhouse in Little
Greenbrier.
Clair Burket
They learn about the highly effective lessons that are scattered
throughout the week, lessons such as “man and water,” “stream
ecology,” “continuity and change.” Imaginative gatherings become
not the exception but the rule: “Sometimes we take a group of
children, divide them into members of a make-believe pioneer family,
and take them up into a wilderness area, an area which is truly
pristine, almost a virgin forest. And we let the kids imagine that they
are this pioneer family, and that they are going to pick out a house
site.” In one game called “succession,” a boy from blacktopped,
“civilized” Atlanta might search along a road for signs of life on the
pavement, then in the gravel, then in the grass, then within the vast,
teeming forest. And a day’s trip to the Little Greenbrier schoolhouse
gives the children of today a chance to experience what it was like
when the Walker sisters and their ancestors sat on the hard wooden
benches and learned the three R’s and felt the bite of a hickory
switch.
It may seem odd that modern children should enjoy so much a trip to
school. But enjoy it they do, for as they fidget on the wooden
benches or spell against each other in an old-fashioned “spelldown”
or read a mid-1800s dictionary that defines a kiss as “a salute with
the lips,” they enter into a past place and a past time. For a few
minutes, at least, they identify with the people who used to be here
in these Smokies—not “play-acting” but struggling to survive and
improve their lives.
The schoolhouse itself is old, built in 1882 out of poplar logs and
white oak shingles. Its single room used to double as a church for
the community, but now the two long, narrow windows on either side
open out onto the protected forest of the park. A woman stands in
the doorway, dressed in a pink bonnet and an old-fashioned, ankle-
length dress. She rings a cast iron bell. The children, who have been
out walking on this early spring morning, hear the bell and begin to
run toward it. Some of them see the school and shout and beckon
the others. In their hurry, they spread out and fill the clearing with
flashes of color and expectation. The woman in the doorway is their
teacher.
They have spanned a century and longer. They now live in more
worlds than one, because they have come to the place where their
spirit lives. It is again homecoming in the Great Smoky Mountains.
 Part 3

Guide and Adviser

 Traveling in the Smokies
“You can’t get there from here,” an oldtimer might tell you about
traveling in the Smokies, and you might think that’s true when you
get on some of the back roads in the area. But if you stick mostly to
the paved roads and use your auto map and the map in this book,
you should not have much or any trouble finding your way around
Great Smoky Mountains National Park.
The park, which is administered by the National Park Service, U.S.
Department of the Interior, is located along the border between North
Carolina and Tennessee. It can be reached by major highways in
both states and by the Blue Ridge Parkway, which connects the park
with Shenandoah National Park in Virginia. Newfound Gap Road, the
only road that crosses the park, connects Gatlinburg, Tennessee,
with Cherokee, North Carolina. It is closed to commercial vehicles.
There are just a few other roads within the park itself, so travel
between distant points is quite roundabout and time consuming. But
you will see plenty of nice scenery along the way. Because this
handbook focuses on the history of the area, the travel information
does, too. But by no means should you let the limited scope
presented here limit what you do. We encourage you to enjoy the
scenic views, flowers, shrubs, and wildlife as you travel to and
through the historic sites. For example, while you’re in the Cable Mill
area at Cades Cove, you might take the trail to Abrams Falls. It’s a
delightful short hike to a beautiful spot in the park. And if you take
the Roaring Fork Auto Tour, you might hike the 2.4 kilometers (1.5
miles) through a hemlock forest to Grotto Falls. There are plenty of
other short hikes in the park, and when you take them you may
come across decaying ruins of early settlements.
Visitor Centers
Park headquarters and the major visitor center are at Sugarlands,
3.2 kilometers (2 miles) south of Gatlinburg. Other visitor centers are
at Cades Cove and at Oconaluftee, both of which are prime historical
areas in the park. The Sugarlands and Oconaluftee centers are open
8 a.m. to 4:30 p.m. during the winter, with extended hours the rest of
the year. The Cades Cove center, located in the Cable Mill area on
the loop road, is open from 9 a.m. to 5 p.m. from mid-April through
October. Exhibits at the Cades Cove and Oconaluftee centers
feature the human history of the Smokies. The relative flatness of the
Cades Cove area makes this the best place to bicycle in the park.
Walks and Talks
Some of the guided walks and evening programs deal with history.
Check schedules at the visitor centers and campgrounds or in the
park newspaper.
Mountain lifeways and skills are demonstrated periodically from early
spring through October at the Pioneer Farmstead at Oconaluftee,
Cades Cove, Mingus Mill, and Little Greenbrier School. At
Oconaluftee you can walk through a typical Smokies farm and see
many of yesteryear’s household chores being demonstrated. At
Cades Cove, you can see, among other things, how sorghum and
wooden shingles were made. Millers seasonally operate the
gristmills near Oconaluftee and at Cades Cove. All of these
demonstrations indicate that the good old days were not easy ones.
Further Information
For more detailed travel and natural history information, see
Handbook 112, Great Smoky Mountains, in this National Park
Service series. This book and an extensive array of literature about
various aspects of the park are sold at the Sugarlands, Oconaluftee,
and Cades Cove visitor centers by a nonprofit organization that
assists the park’s interpretive programs. For a price list, write to:
Great Smoky Mountains Natural History Association, Gatlinburg, TN
37738.
Specific questions can be addressed to: Superintendent, Great
Smoky Mountains National Park, Gatlinburg, TN 37738. The
headquarters’ telephone number is (615) 436-5615.
Accommodations and Services
You can obtain gasoline, food, lodging, and camping supplies in
most communities near the park in both Tennessee and North
Carolina. Several campgrounds are located in both the park and in
the nearby towns.
Within the park, only LeConte Lodge and Wonderland Hotel offer
accommodations, and they are limited. A half-day hike up a
mountain trail is required to reach LeConte Lodge, which is open
from mid-April to late October. Rustic hotel accommodations and
food service are provided at Wonderland Hotel in Elkmont from June
1 to October 1.
Write to the chambers of commerce in the communities near the
park for general travel advice and for current information on the
availability of lodging facilities.
Safety
While touring the park’s historical sites, stay on the trails, keep
children under control, enjoy the farm animals at a distance, and stay
safely away from the millwheels and other machinery.
While traveling throughout the park, beware of the many black bears
no matter how tame they may appear. If they approach your vehicle,
keep the windows closed. Do not feed the bears!
And keep in mind that the weather can change quickly in the
Smokies and that hypothermia can strike not only in the winter but at
any season. Be careful not to become wet and/or chilled. Carry extra
clothing.
See Handbook 112, Great Smoky Mountains, for more precautions
and information about the black bear, hypothermia, and other
dangers.
Regulations
Roads within the park are designed for scenic driving, so stay within
the speed limits and be alert for slow vehicles and for others exiting
and entering. Pull off the roads or park only at designated areas.
Gasoline is not sold in the park, so be sure to fill your tank before
heading on a long trip.
Do not leave valuables inside a locked car where they can be seen.
Leave them home, take them with you when you leave your vehicle,
or lock them in the trunk.
Hunting is prohibited in the park. Firearms must be broken down so
they cannot be used. The use of archery equipment, game calls, and
spotlights also is prohibited.
All plants, animals, and artifacts are protected by Federal law here.
Do not disturb them in any way. Fishing is permitted subject to state
and Federal regulations and licensing.
All overnight camping in the backcountry requires a backcountry
permit. Otherwise, camp and build fires only in designated
campground sites.
We suggest that you do not bring pets. They are permitted in the
park but only if on a leash or under other physical control. They may
not be taken on trails or cross-country hikes. Veterinary services are
found nearby. If you want to board your pet during your stay here,
check with the nearby chambers of commerce.
 Oconaluftee

At the Pioneer Farmstead in Oconaluftee you can get

a glimpse of what daily farm life was like in the
Smokies. Besides the ongoing kitchen tasks, chores
included tending cows and chickens, cutting and
stacking hay, building and repairing barns and
wagons, and a thousand other things.

Self-sufficiency and individuality were strong traits in the Smokies.

Each person had to do a variety of tasks, and each family member
had to help or complement the others. Just as Milas Messer (see
pages 90-91) exemplified these traits personally, the Pioneer
Farmstead at Oconaluftee on the North Carolina side of the park
represents them structurally. Various buildings have been brought
here to create a typical Smokies farmstead on the banks of the
Oconaluftee River.
In the summer and fall farm animals roam about the farmstead and a
man and a woman carry out daily chores to give you an idea of what
the pioneers had to do just to exist. At first these Jacks- and Jills-of-
all-trades had no stores to go to. They made their own tools, built
their own houses and barns and outbuildings, raised their own food,
made their own clothes, and doctored themselves, for the most part.
The log house here is a particularly nice one, for John Davis built it
with matched walls. He split the logs in half and used the halves on
opposite walls. The two stone chimneys are typical of the earliest
houses. Davis’ sons, then 8 and 4, collected rocks for the chimneys
with oxen and a sled.
Behind the house is an essential building, the meathouse. Here
meat, mostly pork, was layered on the shelf at the far end and
covered with a thick coating of salt. After the meat had cured, it was
hung from poles, which go from end to end, to protect it from
rodents. In the early years especially, bear meat and venison hung
alongside the pork.
Apples were a big part of the settlers’ diet in a variety of forms: cider,
vinegar, brandy, sauces, and pies. And of course they ate them, too,
right off the tree. The thick rock walls on the lower floor of the apple
house protect the fruit from freezing in winter. The summer apples
were kept on the log-wall second floor.
The Indians’ maize, or corn, was the most essential crop on the
typical Smokies farmstead. Besides being used as food for livestock,
it was the staple for the pioneers themselves. With corn they made
corn bread, hoe cakes, corn meal mush, and even a little
moonshine. The harvested crop was kept dry in a corncrib until used.
As the pioneers became more settled and turned into farmers, they
built barns to provide shelter for their cows, oxen, sheep, and
horses, plus some of their farming equipment and hay. The large, log
barn at the Oconaluftee Farmstead is unusual. It is a drovers’ barn—
a hotel for cattle and other animals driven to market. The barn is
located close to its original site.
Most farmers had a small blacksmith shop where
they could bang out a few tools, horseshoes,
hinges, and, later on, parts for farm machinery.
These structures were not very sophisticated; they
just had to provide a little shelter so the fire could
be kept going and to protect the equipment—and
to keep the smith dry—during inclement weather.
The springhouse served not only as the source of
water but as a refrigerator. Here milk, melons, and
other foods were kept, many of them in large
crocks. The water usually ran through the
springhouse in one half of a hollowed out log, or in
a rock-lined trench. On hot, muggy days, a child
sent to the springhouse for food or water might
tarry a moment or two to enjoy the air conditioning.
The farmstead is open all year, but the house is
open only from May to November.
Cades Cove
 The Methodist Church, Cable Mill, and Gregg-Cable
house are just three of the many log or frame
structures still standing in Cades Cove today.
Just as Oconaluftee represents self-sufficiency and individuality,
Cades Cove illustrates those traits, plus something else: a sense of
community. Here individuals and families worked hard at eking out a
living from day to day, but here, too, everyone gathered together
from time to time to help harvest a crop, raise a barn, build a church,
and maintain a school. The structural evidence of this helping-hand
attitude still stands today in Cataloochee (see pages 154-155) and in
Cades Cove.
At its peak in 1850, Cades Cove had 685 residents in 132
households. A few years after that the population shrank to 275 as
the soil became overworked and as new lands opened up in the
West. Then the population rose again to about 500 just before the
park was established.
The State of Tennessee had acquired this land in 1820 from the
Cherokees and then sold it to speculators, who in turn sold plots to
the settlers. They cleared most of the trees and built their houses at
the foot of the surrounding hills. Corn, wheat, oats, and rye were
raised on the flat lands, whereas the slopes were used for pastures,
orchards, and vegetable gardens. The Park Service leases some of
the land here today to farmers to keep the cove open as it was in the
early settlement days.
In Cades Cove you will find some of the finest log buildings in
America. Some are original; the others come from elsewhere in the
park. The first log house on the 18-kilometer (11-mile)-loop-road tour
belonged to John and Lurena Oliver, who bought their land in 1826.
Their cabin, with its stone chimney and small windows, is typical of
many in the Smokies, and it remained in the Oliver family until the
park was established. A stone in the Primitive Baptist Church
cemetery just down the road commemorates John and Lurena, the
first permanent white settlers in the cove. The church was organized
in 1827, and the log building was used until 1887, though the
members, who were pro-Union, felt they had to shut it down during
the Civil War because of strong rebel sentiment.
The Methodist Church supposedly was built by one man, J. D.
McCampbell, in 115 days for $115, and after he was done he served
as its preacher for many years. The frame Missionary Baptist Church
was built in 1894 by a group that split from the Primitive Baptists in
1839 because it endorsed missionary work.
Elijah Oliver’s log house may well be one of the first split-levels. The
lower kitchen section off the back formerly was the home of the
Herron family and was brought here and attached to the main house.
This is a good place to see some of the many auxiliary structures
most families had: springhouse, barn, and smokehouse.
Many families also had a tub mill with which they could grind a
bushel of corn a day. When they had more corn to grind, they would
take it to a larger mill, such as John Cable’s. His was not the first
waterwheel mill in Cades Cove, but it is the only remaining one
today. It has been rehabilitated a few times, but the main framing,
the millstones, and some of the gears are original.
In the Cable Mill area are several other structures that have been
brought here from other parts of the park. Among them is the Gregg-
Cable house, possibly the first frame house in Cades Cove. It was
built by Leason Gregg in 1879 and later became the home, until her
death in 1940, of Becky Cable, John’s daughter. At different times
the house served as a store and a boardinghouse. The blacksmith
shop, barns, smokehouse, corncrib, and sorghum mill are
representative of such structures in the Smokies.
Heading east from the mill area, you come to the Henry Whitehead
and Dan Lawson places. At both you can see some of the best log
work, inside and out, within the park, and both have brick instead of
stone chimneys. These houses represent the transition between the
crude log house and the finer log house. Further down the road is
“Hamp” Tipton’s place, where you can see an apiary or bee gum
stand. Honey, sorghum, and maple syrup were common sweets for
folks in the Cove.
The last house on the loop road is the Carter Shields place, a one-
story log house with loft. This cabin is about the average size of
Smokies cabins, but it is a bit fancier than most with its beaded
paneling in the living room and a closed-in stairway.
The buildings in Cades Cove are open all year except for the
churches and a few other structures.