IFRS-Update

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

125 - Beyond the GAAP - September 2018

As the IASB is asked to re-examine some aspects of IFRS 17, we enter a period of uncertainty as regards both EFRAG’s work on the endorsement advice and the likely effective date of the standard. This also has implications for the deferral of IFRS 9, an alternative which many European bancassurers and insurance companies opted for. Meanwhile, the IFRS IC has published four agenda discussions; in this issue, we discuss the two relating to capitalisation of borrowing costs.

Following on from last issue’s feature, which provided a general overview of the IASB’s proposals for classifying financial instruments as liabilities or equity, this month our experts examine the impact of the proposals on the much-discussed topic of puts on non-controlling interests.

Happy reading!

124 - Beyond the GAAP - July August 2018

This issue of Beyond the GAAP brings a piece of good news for our readers, as we all return to work following a well-deserved break: our financial instruments experts have saved you some effort by reading and summarising the IASB’s particularly dense Discussion Paper on the classification of financial instruments as liabilities or equity, published at the beginning of the summer. See our ‘A Closer Look’ feature for our summary of the DP.

Finally, a spot of revision to help you get back into the swing of things: our crossword this month is a compilation of clues from previous crosswords.


Welcome back and happy reading!

123 - Beyond the GAAP - June 2018

After focusing on half-yearly reporting and on IFRS 15 and IFRS 9 in our last edition, this month’s special study presents a Benchmark on disclosures by entities at 31 December 2017 on the future impact of IFRS 16. The level of information provided varies greatly, and, unsurprisingly, is on average rather limited. It is as well to remember that entities should expand these disclosures at 30 June 2018.

And to give its stakeholders some holiday reading, the IASB has just published a discussion document on the long-standing issue of the distinction between debt and equity. Evolution or revolution for IAS 32? Make up your own mind!

A happy summer to you all.

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!

Enjoy your reading!

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.

Enjoy your reading!

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.

Enjoy your reading!

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.

Enjoy your reading!

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.

Enjoy your reading!

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!

Enjoy your reading!

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.

Enjoy your reading!

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