PwC AWM Insights IFRS for Asset Management
Asset managers and fund companies are now playing on a field marked by turbulent markets and complex regulatory reform. In this kind of environment, a trusted advisor with a balanced, comprehensive and international perspective can be an invaluable resource.
In depth – A look at current financial reporting issues The IASB and FASB issued their converged standard on revenue recognition. This ‘in depth’ focuses on the accounting for transactions that are not insurance contracts or financial instruments. This includes any service components required to be separated (or optionally separated under IFRS 4) from those contracts and accounted for under the new revenue standard. http://pwc.to/2lRQxer In depth – A look at current financial reporting issues IFRS 10 for asset managers and other related issues IFRS 10, ‘Consolidated Financial Statements’, sets out principles for the presentation and preparation of consolidated financial statements where an entity controls one or more other entities. The assessment of whether an investor or any other party controls a fund can be complex and depends heavily on facts and circumstances. This publication provides guidance on how to apply the requirements of IFRS 10 in different scenarios. http://pwc.to/2kBeFQn IFRS 13 Disclosure requirements – Questions & Answers IFRS 13 expanded the guidance on assessing fair value measurements within the three levels of the fair value hierarchy which was originally introduced in IFRS 7. As a result, the classification as Level 1, Level 2 or Level 3 became required for nonfinancial assets and liabilities measured at fair value and disclosures of fair values in the notes to the financial statements. http://pwc.to/1LNqEkj Practical Guide In depth – IFRS 7 and IFRS 13 disclosures (May 2014) Investment funds, PE funds, RE funds and investment managers will be impacted by recent amendments to IFRS 7 Financial Instruments: Disclosures, including disclosures that have been transferred to IFRS 13 Fair Value Measurement. The amendments relate to transfers of financial assets and offsetting assets and financial liabilities. http://pwc.to/23cK50J
A practical guide to IAS 32 for investment funds (Dec 2013) The main focus of this publication is on the amendment to IAS 32 and IAS 1, “Puttable financial instruments and obligations arising on liquidation” applicable for financial periods beginning on or after 1 January 2009. Investment funds that issue puttable instruments or for which there is an obligation to deliver cash or financial instruments that arises on liquidation should evaluate whether the fund is required to classify the fund’s capital as equity or liability. http://joom.ag/umZb
A practical guide to IFRS 10 and 12 – Questions and Answers (Nov 2013) This practical guide sets out our views on some of the most common issues that arise during the implementation of the new standards. It is an update to – and therefore replaces – the October 2012 edition. http://joom.ag/ssZb
Practical guide to IFRS 10 – Investment entities: Exception to Consolidation (Dec 2012) In November 2012, the IASB published an exposure draft proposing limited amendments to IFRS 9 ‘Financial Instruments (2010)’. This practical guide summarises the key proposals and their implications as compared to the financial instruments classification and measurement model that exists in IFRS 9 today. http://joom.ag/SsZb Practical guide to IFRS – IFRS 10 for asset managers (Jun 2012) This practical guide sets out a framework for an asset manager to use when interpreting IFRS 10 to determine whether control exists − in particular, the assessment of principal versus agent. http://joom.ag/ZsZb
In depth – Frequently asked questions: Offsetting financial instruments for investment funds The IAS 32 and IFRS 7 offsetting amendments have required investment funds to (i) reassess when they offset financial instruments for accounting purposes; and (ii) analyse what additional financial statement disclosures in relation to offsetting may be required. This ‘in depth’ sets out our views on the main questions we are seeing in practice specifically for investment funds. http://joom.ag/Vkvb In depth – Investment entities amendment: Exception to consolidation This publication contains a number of questions and answers on the application of the investment entities amendment to consolidation and assists the management on the exception to consolidation and assists the management of real estate structures in whether an entity or entities within those structures meet the criteria of an investment entity. http://joom.ag/Okvb Similarities and Differences … A comparison of US GAAP and IFRS for investment companies (Feb 2011) The report, which primarily looks at the accounting and reporting requirements of non- registered investment companies, is intended to give an understanding of the key similarities and differences between IFRS and US GAAP. The key divergences are outlined in more detail and the probable impact of recent proposals explained. http://joom.ag/EsZb Illustrative financial statements Illustrative IFRS financial statements 2016 – Investment funds This publication is based on the requirements of IFRS standards and interpretations for the financial year beginning on 1 January 2016. There were no new standards or amendments effective for annual periods beginning on 1 January 2016 which had a material impact on the example fund. As a result, our 2016 edition is largely consistent with our 2015 publication. A new feature in this year's edition is the inclusion of hyperlinks which make it easier to navigate between sections and find related information. http://pwc.to/2fGOrgk
Illustrative IFRS financial statements 2016– Private Equity Funds & Illustrative Financial Statements of Private Equity Fund holding an Investment Entity subsidiary This publication provides an illustrative set of financial statements, prepared in accordance with IFRS for a fictional private equity limited partnership. The second publication provides illustrative disclosures applying the investment entities consolidation exception: Amendments to IFRS 10, IFRS 12 and IAS 28. http://pwc.to/2laKUI0 & http://pwc.to/2lmGG2t
Illustrative IFRS financial statements 2016 – Investment property This publication provides an illustrative set of consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), for a fictional investment property group (IP Group). http://pwc.to/2kVLWcN
First-time IFRS annual financial statements, investment funds – An illustration (Second edition) (Oct 2013) This publication demonstrates the application of the more common IFRS requirements for first-time annual IFRS financial statements for Canadian investment funds. http://joom.ag/7mZb For more information on our global asset management practice, please visit: www.pwc.com/assetmanagement
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