IFRS-Update

Since November 2006 we regularly provide updates on changes within the International Financial Reporting Standards (IFRS).

122 - Beyond the GAAP - May 2018

Target: the half-year accounts! With the disclosures required by the two standards that came into force on 1 January 2018 and the full list of applicable texts, three ‘A Closer look’ studies will support you in their preparation.
In passing, take the time to review the details of IAS 34 on interim financial statements in our crossword!

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120 - Beyond the GAAP - March 2018

The year began quietly with few major developments relating to standards, but March has seen a whole series of projects coming to fruition. Some of these are highly concrete, with three very detailed decisions published by the IFRS IC on the application of IFRS 15, which we explore in our ‘A Closer Look’ feature. Others are much more conceptual, such as the publication of the IFRS Conceptual Framework, and still others are forward-looking and are prompted by the European Union’s action plans on sustainable development and the fitness of public reporting by companies.
Meanwhile, the European standards adoption process has started up again, with no fewer than five documents adopted into EU law since this February. At the last count published by EFRAG, there are still six documents due to be adopted in the near future and in time for entities to be able to apply them at the IASB’s proposed effective date.

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121 - Beyond the GAAP - April 2018

Again this month IFRS 9 and IFRS 15 take centre stage in our highlights as they are the focus of attention for market regulators and the Monitoring Board of the IFRS Foundation.

As announced in our previous edition, our closer look study this month presents the key features of the new IFRS Conceptual Framework. In summary, the final text confirms and expands the main outlines proposed in the 2015 exposure draft.

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119 - Beyond the GAAP - February 2018

With less than a year to go before the effective date of IFRS 16 on Leases, the report of the ANC’s (The French accounting standards setter) decisions on the duration of 3/6/9 leases, published in February, is certainly the most anticipated announcement for French entities. This is because it should enable most of them to resolve this thorny question in their plans for implementation. This decision will of course also be useful to entities with subsidiaries in France.

Europe is continuing its lengthy work on long-term investment and sustainable finance, with studies and consultations which could well eventually have impacts on the accounting and reporting frameworks of European entities. For its part, the IASB has held a first working meeting of the transition resource group supporting the implementation of IFRS 17, Insurance contracts.

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118 - Beyond the GAAP - 01-2018

Since 1 January 2018, IFRS 9 - Financial instruments and IFRS 15 - Revenue from Contracts with Customers have been effective, as the the IASB headline announced on its website on 8 January. In parallel, work to assess the impact of IFRS 9 on long-term investment is continuing at the European level, with the publication of the outcomes of a first factual analysis by EFRAG. This research has also acted as a spur to the IASB, which has followed up the EFRAG publication by issuing two presentations of its own on the contributions of IFRS standards to financial stability and long-term investment.

At the last minute, 2017 witnessed the passing of a tax reform bill in the US, which is expected to have substantial impacts - to the extent that the US accounting authorities have published some texts intended to facilitate accounting for its effects, but which ESMA says are unacceptable under IFRSs. This month’s special study describes these aspects.

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117 - Beyond the GAAP - 12-2017

2017 ended fairly quietly, since the European Commission had already endorsed several texts in November and the IASB’s December meeting decided to postpone publication of most of its texts and draft texts, with the exception of the annual improvements to IFRSs, which we discuss in this month’s ‘A closer look’ study. This being the case, the implementation of IFRS 9 and IFRS 15 in January 2018 will be more than enough to keep entities and their auditors busy, on top of the preparation of the 2017 financial statements.

This month’s crossword reviews the year’s accounting events! We’d like to take this opportunity to wish you a Happy New Year and a smooth passage to the new standards on behalf of all the team of columnists at Beyond the GAAP!

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116 - Beyond the GAAP - 11-2017

Over the past decade, the IASB has been working on the process of converging IFRS with US GAAP, and this month saw EU endorsement of the remaining resulting standards. With implementation now set to go ahead, this marks the end of a chapter. The one remaining major standard awaiting endorsement – namely IFRS 17 - Insurance Contracts – was not a joint project with the FASB, and moreover is not scheduled for endorsement until the end of next year.

After summarising the regulators’ recommendations for you in last month’s issue, our ‘A Closer Look’ feature this month provides further assistance with year-end preparations. It presents our traditional overview of all the standards and interpretations applicable for 2017 financial statements.

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115 - Beyond the GAAP - 10-2017

The IASB has put some last-minute finishing touches to IFRS 9, with an amendment on debt instruments with symmetric prepayment options and with the inclusion (in the Basis for Conclusions) of its analysis of the standard’s provisions on the modification of financial liabilities. All that remains is for the European Union to accelerate the endorsement of the amendment so that European entities do not have to switch accounting policies between 2018 and 2019!

In France and in Europe, the month of October has once again seen the regulators issue recommendations for the preparation of the 2017 accounts under IFRS. Their advice is the topic of one of this month’s two ‘A Closer Look’ studies. The other study concerns another aspect of the preparation of financial statements: guidance on making materiality judgments, the subject of an IASB Practice statement which was published last September.

Stop press: IFRS 16 on Leases, the clarifications to IFRS 15 on Revenue and the option for deferred application of IFRS 9 for insurers were endorsed by the EU on 9 November 2017.

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114 - Beyond the GAAP 09-2017

After a quiet summer on the accounting front, September started brightly with two exposure drafts and a Practice Statement from the IASB.
With the imminent approach of the effective date of IFRS 15, our first special study updates our benchmark (see Beyond the GAAP no 109 of March 2017) on the disclosures published by leading European entities on their implementation of the standard at 30 June 2017.
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113 - Beyond the GAAP 07+08-2017

July was a busier period for Europe than for the IASB. The European Commission sent two draft texts (deferred application of IFRS 9 for insurers and financial conglomerates, and IFRS 16 on Leases) to the European Parliament and Council for endorsement before the end of the year, while ESMA published three documents on financial information and its enforcement activities.

Meanwhile the IASB confirmed the IFRS IC’s tentative decision on the modification of financial liabilities under the new IFRS 9. The Interpretations Committee had expressed some doubts at its last meeting in the light of the comments received. The far-reaching impacts of this decision are discussed in this edition’s special study.
All the team at Beyond the GAAP hope you have had an enjoyable break and welcome you back to work after an August free of any accounting news!

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