IFRS News

Many companies have underestimated the impact of the adoption of IFRS 16 Leases and the key judgements involved in the transition to the new leasing standard. 

Introduction This newsletter will discuss reporting requirements as of December 31, 2019. The first section will discuss key topics and reminders that financial statement preparers and reviewers should consider in preparing their statements and provide an illustrative example of common issues encountered from the past 3 quarters.

Applications of the Provision Matrix Practical Expedient in the Calculation of Lifetime Expected Credit Losses Scope

RSM World of IFRS summarises key matters arising from recent IASB discussions and decisions, highlights RSM thought leadership from around the world, and addresses an IFRS application question each month.

Accounting for COVID-19 related rent concessions and other modifications to lease contracts, from the lessee’s perspective Implementing IFRS 16 Leases was a substantial task for many preparers, and COVID-19 has brought a new and unexpected source of difficulty and complexity.

by RSM IFRS Advisory Committee

As business becomes more complex, accounting standards become more complex and everyone needs some help with applying some of the new requirements.

RSM World of IFRS summarises key matters arising from recent IASB discussions and decisions, highlights RSM thought leadership from around the world, and addresses an IFRS application question each month.

RSM News in Brief on IFRS summarises recent IASB discussions and decisions, highlights RSM thought leadership from around the world, and addresses an IFRS application question each month.

This months IFRS News in brief issue summarises recent IASB discussions and decisions, highlights RSM thought leadership from around the world, and addresses an IFRS application question each month.

PUBLICATIONS AND ANNOUNCEMENTS The IFRS Foundation has published its annual report and audited financial statements for the year ended 31 December 2018: https://www.ifrs.org/-/media/feature/about-us/funding/annual-report-2018.pdf?la=en

PUBLICATIONS AND ANNOUNCEMENTS

NTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) LATEST DECISIONS SUMMARY The following is a summarised update of the main discussions and tentative decisions taken by the IASB at its meeting on 7 – 8 February 2019.     For more details and comprehensive information on the IASB’s discussion see:

INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) LATEST DECISIONS SUMMARY The following is a summarised update of the main discussions and tentative decisions taken by the IASB at its meeting on 11, 12 and 13 December 2018.  

PUBLICATIONS AND ANNOUNCEMENTS The IASB issued the seventeenth edition of the ‘Investor Update’ on 27 November 2018. The issue provides investors with information that helps them keep up to date with changes in the world of IFRS and how those changes may affect their work. 

PUBLICATIONS AND ANNOUNCEMENTS

PUBLICATIONS AND ANNOUNCEMENTS

PUBLICATIONS AND ANNOUNCEMENTS The following materials have been published to support the implementation of IFRS 17 Insurance Contracts:

PUBLICATIONS AND ANNOUNCEMENTS The following six IFRS for SMEs modules have been published on the IFRS Foundation website; https://www.ifrs.org/supporting-implementation/supporting-materials-for-the-ifrs-for-smes/modules/

PUBLICATIONS AND ANNOUNCEMENTS

PUBLICATIONS AND ANNOUNCEMENTS The IFRS Foundation has released the first three of 35 stand-alone modules designed to provide support to anyone learning about, applying or reading financial statements prepared using the IFRS for SMEs.

PUBLICATIONS AND ANNOUNCEMENTS The International Accounting Standards Board issued a revised version of the Conceptual Framework for Financial Reporting on 29 March 2018. It sets out the fundamental concepts of financial reporting that underpin IFRS. It will replace the 2010 Conceptual Framework.

PUBLICATIONS AND ANNOUNCEMENTS IAS 19 amended for plan amendment, curtailment or settlement 

PUBLICATIONS AND ANNOUNCEMENTS IFRS 9 and IFRS 15 are effective for reporting periods starting on or after 1 January 2018. IFRS 9 Financial Instruments

IFRS 16 comes into effect for periods commencing on or after 1 January 2019. All businesses that have contracts which are currently treated as operating leases in their financial statements (i.e. any business who pays rent) will definitely be affected by the forthcoming changes.

PUBLICATIONS AND ANNOUNCEMENTS Four Standards amended under Annual Improvements to IFRS Standards 2015-2017 Cycle

In May 2014, the International Accounting Standards Board (IASB) published IFRS 15 which replaces IAS 18 Revenue, IAS 11 Construction Contracts and their associated interpretations.

IFRS INTERPRETATIONS COMMITTEE (IC) LATEST DECISIONS SUMMARY The following is a summarised update on some of the main discussions or tentative decisions taken by the IC at its meeting on 20 November 2017.

PUBLICATIONS AND ANNOUNCEMENTS IFRS 9 amended for the classification of particular prepayable financial assets

On 24 July 2014, the International Accounting Standards Board (IASB) published the complete version of IFRS 9 which becomes mandatorily effective for periods commencing on or after 1 January 2018.

PUBLICATIONS AND ANNOUNCEMENTS Proposed narrow-scope amendments to IAS 8 open for comment until 15 January 2018

INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) LATEST DECISIONS SUMMARY The following is a summarised update on the main tentative decisions taken by the IASB at its meeting on 18-19 July 2017.

When a company makes the decision to sell an asset or to stop some part of its business, it is making a decision that affects the future cash flows, profitability and overall financial situation. The users of the financial statements should be informed about these events.

PUBLICATIONS AND ANNOUNCEMENTS Release of IFRIC Interpretation 23 Uncertainty over Income Tax Treatments

PUBLICATIONS AND ANNOUNCEMENTS Release of the final standard on insurance accounting

PUBLICATIONS AND ANNOUNCEMENTS Proposed minor amendments to IFRS 9 open for comment until 24 May 2017

PUBLICATIONS AND ANNOUNCEMENTS Proposed amendments to IFRS 8 open for comment until 31 July 2017

The implementation of IFRS 16 (Leases) is around the corner, while IFRS 15 (Revenue from Contracts with Customers) is already in place. It is important that companies start evaluating what impact the introduction of these two accounting standards will have on the Annual Financial Statements as well as on the business as a whole.

The implementation of IFRS 15 (Revenue from Contracts with Customers) has come into effect, while IFRS 16 (Leases) is around the corner. It is important that companies start evaluating what impact the introduction of these two accounting standards will have on the Annual Financial Statements as well as on the business as a whole.

PUBLICATIONS AND ANNOUNCEMENTS Annual Improvements to IFRSs 2015-2017 Cycle open for comment until 12 April 2017 On 12 January 2017, the IASB published an exposure draft covering narrow-scope amendments to:

INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) LATEST DECISIONS SUMMARY

PUBLICATIONS AND ANNOUNCEMENTS IFRS 4 amended to address temporary volatility in reported results on implementation of IFRS 9

PUBLICATIONS AND ANNOUNCEMENTS IFRS 2 amended for the classification and measurement of certain types of share-based payment (SBP) transactions

IFRS INTERPRETATIONS COMMITTEE LATEST DECISIONS SUMMARY The following is a summarised update on some of the main discussions or provisional decisions taken by the IFRS Interpretations Committee (IC) at its meeting on 10 May 2016.

IFRS 15 Revenue from Contracts with Customers was issued by the IASB on 28 May 2014 with a planned introduction for periods beginning on or after 1 January 2017. The effective date was delayed to 1 January 2018 to allow for extended clarification and public consultation.

Small and Medium Entities (SMEs) operate in simpler and less complex environments compared to larger companies. Although SMEs are small in size and capacity, they account for around 95% of all companies around the world.

In this issue we report on the IASB’s endeavour to publish a new Conceptual Framework, which is approaching a successful completion.

Part 2 - How to calculate HEPS

Part 1 - What is HEPS and why the need for it

Fair value measurement guidance is spread across various standards. In certain standards the guidance is incomplete or silent. This creates a potential for inconsistencies in the interpretation and application when determining an estimate of fair value.

In the world of the ever-changing International Financial Reporting Standards (IFRS), most of us find it difficult to keep up to date with the new standards, interpretations or amendments to current standards. It doesn’t take long before everything you know has changed or no longer applies.