DOCSLIB.ORG

IFRS 9, 15, and 16 - a Leap Forward

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
IFRS 9, 15, and 16 - a Leap Forward IFRS 9, 15, and 16 - a leap forward KPMG’s 2017 Annual report market watch June 2018 2 | IFRS 9, 15, and 16 - a leap forward IFRS 9, 15, and 16 - a leap forward Introduction The review has prompted our thoughts on key items With the introduction of IFRS 15 Revenue from Contracts for reporters to consider for 2018 reporting and beyond. with Customers (effective 1 January 2018), IFRS 9 Financial (refer to “things to consider”). Instruments (effective 1 January 2018), and IFRS 16 Leases (effective 1 January 2019), IFRS reporters currently face a Sample populations tide of change. The IFRS 15 and 16 analysis covers the 2017 annual reports of the top 75 Dutch listed companies2. Ahead of the adoption dates of these new standards, the European Securities and Markets Authority (ESMA)1 The IFRS 9 analysis focuses on corporate entities only. The published its expectations with regards to the level of detail impact on financial institutions is far greater and demands in companies’ transition disclosures as required its own separate review. We have therefore excluded such by IAS 8. entities from this analysis3. This has resulted in a sample size of 55 entities for IFRS 9. In this market watch publication, we have analysed the transition disclosures in the 2017 annual reports of 75 Dutch listed companies and summarised our key The analysis for each standard is presented separately. observations on the disclosure details, expected impact, and transition approach. IFRS 9: hedge accounting options available! The following observations regarding Expected impact IFRS 9 have followed from a review of the 2017 annual reports of 55 Dutch • 50 companies (91%) stated that the listed corporates: impact of IFRS 9 will be immaterial. • The remaining 5 companies (9%) did Stage of transition project not explicitly qualify the significance of the IFRS 9 impact. • 2 companies (4%) indicated they are ready for full implementation of IFRS 9 as at the 2017 year-end. Stage of transition project IFRS 9 Expected impact IFRS 9 • 36 companies (65%) indicated that 0% their initial impact assessment is 4% complete. 9% 22% • A further 5 companies (9%) explained that their IFRS 9 impact assessment is still in progress, and 9% • The remaining 12 companies (22%) 65% did not explicitly comment on the 91% progress of the project. Ready for full implementation Material Completed initial assessment Not material Initial assessment in progress Not disclosed Not disclosed 1 In October 2017 ESMA published its Public Statement on the European common enforcement priorities for 2017 IFRS financial statements that 2017 annual reports would contain specific quantitative and qualitative disclosures regarding the new standards to be adopted in the following period (https://www.esma.europa.eu) 2 Companies included in AEX, AMX and AScX-indices. One company early adopted IFRS 15 and is therefore excluded from the IFRS 15 analysis. 3 For an analysis of IFRS 9 impact on financial institutions, we refer readers to the KPMG Real-time IFRS 9 web page. © 2018 KPMG Advisory N.V. 2 | IFRS 9, 15 and 16 – the countdown continues IFRS 9, 15, and 16 - a leap forward | 3 Type of disclosure • All companies provided qualitative In summary the review shows disclosures on the impact of IFRS 9. that for the vast majority of Dutch • 18 companies (33%) also disclosed listed corporate companies the the expected quantitative impact of impact of IFRS 9 is relatively minor. the transition. This corresponds with Nevertheless, there are still things the fact that for the vast majority of to consider. corporate entities the impact of IFRS 9 is immaterial. •The quantitative impacts that were disclosed related mainly to the impact of the new Expected Credit Loss Type of disclosure IFRS 9 Transition approach IFRS 9 impairment methodology. These disclosed impacts had a negligible impact on equity. This is expected given the stable credit environment 33% we are currently in. 55% 45% Transition approach 67% • 25 companies (45%) have chosen to make use of the available practical 0% expedient to not restate the Qualitative and quantitative Without restatement comparative period. Qualitative only With restatement • The remaining 30 companies (55%) Not disclosed did not comment on the transition approach. Things to consider Hedge accounting disclosures on this topic. Given the benefits IFRS 9 offers additional hedge accounting and new options provided by IFRS 9 in the 1 options for corporates in comparison to IAS area of hedge accounting, this may be a topic 39. Such opportunities include hedging of risk for additional considerations for corporate components of non-financial items and companies. hedging of aggregate exposures. The "cost of hedging" method also reduces P&L volatility Disclosures further. Effectiveness testing under IFRS 9 IFRS 9 expands the disclosure requirements is required only on a prospective basis and 2 for all companies. The additional information includes a qualitative assessment of required will of course depend on the economic relationships instead of the relevance of the different requirements for 80%-125% rule. each individual company. It is important to assess the additional disclosures rules fully. Our review of the annual reports highlighted Changes to data-gathering processes, IT that only 20 companies (36%) have chosen systems and controls are likely to be required. to adopt IFRS 9 for hedge accounting on It is also important to note that the new transition4. The remaining 35 companies hedge accounting disclosures in IFRS 7 may (64%) plan to defer the adoption of hedge not be deferred even if an entity continues to accounting under IFRS 9 or did not provide apply the IAS 39 hedge accounting model. 4 A deferral of applying IFRS 9 hedge accounting is available until the standard resulting from the IASB’s project on accounting for dynamic risk management is completed. © 2018 KPMG Advisory N.V. 4 | IFRS 9, 15, and 16 - a leap forward IFRS 15: we are not yet there! Last year’s 2016 Annual report market 5 watch revealed that the majority of the Stage of transition project IFRS 15 Expected impact IFRS 15 companies listed in the Netherlands 0% were still assessing the impact of 10% 5% 4% IFRS 15 or had not commenced implementation. Studying the 2017 12% annual reports resulted in the following observations: 9% Stage of transition project 78% 91% • Our review found that 58 companies Ready for full implementation Material (78%) indicated that their initial Completed initial assessment Not material impact assessment is complete. Initial assessment in progress Not disclosed •A further 9 companies (12%) Not disclosed indicated that their IFRS 15 impact assessment is still in progress. • The remaining 7 companies (10%) did not disclose the stage of their IFRS 15 transition project. are the revenue streams driving • We understand that a small number these material impacts. of companies are continuing to work Expected impact •A large majority (91% or 67 through the implications of all areas companies) have indicated the new of the standard and consequently • Only 3 companies (4%) disclosed standard will not have a material were unable to include a reasonable that the implementation of IFRS 15 impact on their financial statements. estimate of the financial impact in will have a material impact on the • The remaining 4 companies (5%) their 2017 transition disclosures. financial statements. Software have not disclosed the impact of licensing and telecommunications IFRS 15. 5 KPMG: IFRS 15 Revenue recognition – A (final) call to action © 2018 KPMG Advisory N.V. IFRS 9, 15, and 16 - a leap forward | 5 Type of disclosure • The remaining 26 companies (35%) did not disclose whether they would Type of disclosure IFRS 15 • All companies provided qualitative opt for the cumulative effect method information on the impact of IFRS 15. or the full retrospective method. • 19 companies (26%) included a • The choice of transition option will 26% quantitative disclosure of the depend on each companies’ unique expected financial effect on results set of circumstances. The cumulative and the statement of financial effect method involves no position. restatement of the comparative 9% 74% • The remaining 55 companies (74%) period but does require dual reporting relied solely on the qualitative under both the outgoing standards disclosure to inform readers of the and IFRS 15 in the year of adoption. Qualitative and quantitative expected impact of IFRS 15. The retrospective method does Qualitative only • Often the qualitative disclosure involve restating the comparative explains that the initial effect is period but in turn does not require expected to be immaterial and that dual reporting. Each company Transition approach IFRS 15 IFRS 15 will not have a significant therefore faces a level of trade-off impact on revenue recognition between effort and comparability. compared to the current accounting policy. In summary the review shows that 35% the impact of IFRS 15 is expected to 35% Transition approach be immaterial for the vast majority of Dutch listed companies. Despite this • With regards to the transition there are some items which are worth 30% approach 26 companies (35%) considering no matter how minor the indicated that they have opted for impact. Cumulative effect approach the cumulative effect method. Retrospective (full or modified) •A further 22 companies (30%) Not disclosed have chosen the full retrospective approach. Things to consider New disclosure requirements information to meet the new disclosure IFRS 15 introduces new qualitative and requirements in an efficient manner. This may 1 quantitative disclosure requirements. The aim require significant changes to the existing of the new disclosure is to enable financial data-gathering processes and cause statement users to understand the nature, companies to reassess their IT system amount, timing and uncertainty of revenue capabilities. and cash flows arising from contracts with customers. No matter how minor the impact Embedding new processes of IFRS 15, the requirement to build the new Companies may wish to embed the new disclosures remains.
Load more

Recommended publications
  • IATA Industry Accounting Working Group Guidance IFRS 15, Revenue from Contracts with Customers
    IATA Industry Accounting Working Group Guidance IFRS 15, Revenue from Contracts with Customers 2nd Edition Issued May 2018 IATA Industry Accounting Working Group Guidance IFRS 15, Revenue from Contracts with Customers NOTICE DISCLAIMER. This document has been compiled by the IATA Industry Accounting Working Group (IAWG), which consists of senior finance representatives from IATA member airlines. This working group’s mandate is to promote consistency in the application of International Financial Reporting Standards (IFRS) and to lobby accounting standard setters to take into consideration the interests of airlines globally. It is distributed with the understanding that IATA, the IAWG and its members, observers and advisors are not rendering accounting, legal or other professional services in this publication. If accounting, legal advice or other expert assistance is required, the services of a competent professional should be sought. The paper addresses a specific issue related to the adoption of IFRS 15, Revenue from Contracts with Customers. This paper is not intended to provide accounting advice or a definitive analysis of the underlying issue as fact patterns, regulatory environment, practices and interpretations may vary. The views taken should not be used as a substitute for referring to the standards and interpretations of IFRS or professional advice from your auditor or other professional accounting advisor. The information contained in this publication is subject to constant review in the light of changing government requirements and regulations. No subscriber or other reader should act on the basis of any such information without referring to applicable laws and regulations and/or without taking appropriate professional advice. Although every effort has been made to ensure accuracy, the International Air Transport Association shall not be held responsible for any loss or damage caused by errors, omissions, misprints or misinterpretation of the contents hereof.
    [Show full text]
  • IFRS 15 IFRS 15 Revenue from Contracts with Customers Is Issued
    IFRS 15 IFRS 15 Revenue from Contracts with Customers is issued by the International Accounting Standards Board (the Board). IFRS Standards together with their accompanying documents are issued by the International Accounting Standards Board (the “Board”). Disclaimer: To the extent permitted by applicable law, the Board and the IFRS Foundation (Foundation) expressly disclaim all liability howsoever arising from this publication or any translation thereof whether in contract, tort or otherwise (including, but not limited to, liability for any negligent act or omission) to any person in respect of any claims or losses of any nature including direct, indirect, incidental or consequential loss, punitive damages, penalties or costs. Information contained in this publication does not constitute advice and should not be substituted for the services of an appropriately qualified professional. Copyright © IFRS Foundation All rights reserved. Reproduction and use rights are strictly limited. Contact the Foundation for further details at [email protected]. Copies of IASB publications may be obtained from the Foundation’s Publications Department. Please address publication and copyright matters to: IFRS Foundation Publications Department 30 Cannon Street, London, EC4M 6XH, United Kingdom. Tel: +44 (0)20 7332 2730 Fax: +44 (0)20 7332 2749 Email: [email protected] Web: www.ifrs.org The IFRS Foundation logo, the IASB logo, the IFRS for SMEs logo, the “Hexagon Device”, “IFRS Foundation”, “eIFRS”, “IAS”, “IASB”, “IFRS for SMEs”, “IASs”, “IFRS”, “IFRSs”,
    [Show full text]
  • IFRS 9, Financial Instruments Understanding the Basics Introduction
    www.pwc.com/ifrs9 IFRS 9, Financial Instruments Understanding the basics Introduction Revenue isn’t the only new IFRS to worry about for 2018—there is IFRS 9, Financial Instruments, to consider as well. Contrary to widespread belief, IFRS 9 affects more than just financial institutions. Any entity could have significant changes to its financial reporting as the result of this standard. That is certain to be the case for those with long-term loans, equity investments, or any non- vanilla financial assets. It might even be the case for those only holding short- term receivables. It all depends. Possible consequences of IFRS 9 include: • More income statement volatility. IFRS 9 raises the risk that more assets will have to be measured at fair value with changes in fair value recognized in profit and loss as they arise. • Earlier recognition of impairment losses on receivables and loans, including trade receivables. Entities will have to start providing for possible future credit losses in the very first reporting period a loan goes on the books – even if it is highly likely that the asset will be fully collectible. • Significant new disclosure requirements—the more significantly impacted may need new systems and processes to collect the necessary data. IFRS 9 also includes significant new hedging requirements, which we address in a separate publication – Practical guide – General hedge accounting. With careful planning, the changes that IFRS 9 introduces might provide a great opportunity for balance sheet optimization, or enhanced efficiency of the reporting process and cost savings. Left too long, they could lead to some nasty surprises.
    [Show full text]
  • Update IFRS 9: Current Implementation Challenges and Solution Approaches
    Update IFRS 9: Current implementation challenges and solution approaches Risk EMEA conference, 10 May 2017 Implementation of IFRS 9 is much more than just a simple Change in Bank Accounting – enormous changes and challenges to be considered Impact of IFRS 9 on financial institutions Impact of IFRS 9 Challenges for Top Management IFRS 9 Accounting rules will replace actual Standard IAS 39 per 1.1.2018 GET guidance for IFRS 9 defines new standards for P&L & equity impact financial instruments with significant 1 impact on financial institutions FOSTER co-operation IFRS 9 directly affects P&L and Strong Impact between Risk and balance sheet positions, regulatory of IFRS 9 Finance function capital and major KPIs challenges Top In addition, due to numerous new Management MANAGE high change regulatory requirements business, and run the bank costs process and IT dependencies with IFRS 9 need to proactively considered and managed PREPARE EBA “stress test” 2018 with focus Therefore a change management for on IFRS 9 impact the organization, processes and IT landscape is necessary 1 With new requirements for the insurance contract insurance companies have a longer transition period with 2021. Big players have started in 2017 with goal to complete in 2018. Source: zeb Risk EMEA Conference 2017 20170510_IFRS 9 impact - 2 IFRS 9 implies significant economic and organizational impact on banks which report their financial statements according to IFRS IFRS 9 impact on banks Based on EBA Impact Study Survey results based on a sample of 58 institutions zeb view 1 CET1 ratio is estimated to decrease on “What effect does IFRS 9 have on existing equity?” average by up to 80 bps and total capital Equity <-10 bps >-70bps ratio by up to 50 bps.
    [Show full text]
  • VALUE IFRS Plc Illustrative IFRS Consolidated Financial Statements December 2019
    VALUE IFRS Plc Illustrative IFRS consolidated financial statements December 2019 This publication presents the sample annual financial reports of a fictional listed company, VALUE IFRS Plc. It illustrates the financial reporting requirements that would apply to such a company under International Financial Reporting Standards as issued at 31 May 2019. Supporting commentary is also provided. For the purposes of this publication, VALUE IFRS Plc is listed on a fictive Stock Exchange and is the parent entity in a consolidated entity. VALUE IFRS Plc 2019 is for illustrative purposes only and should be used in conjunction with the relevant financial reporting standards and any other reporting pronouncements and legislation applicable in specific jurisdictions. Global Accounting Consulting Services PricewaterhouseCoopers LLP This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. About PwC At PwC, our purpose is to build trust in society and solve important problems. We're a network of firms in 158 countries with more than 250,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com © 2019 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. VALUE IFRS Plc Illustrative IFRS consolidated financial statements December
    [Show full text]
  • Extension of the Temporary Exemption from Applying IFRS 9
    June 2020 IFRS® Standards Extension of the Temporary Exemption from Applying IFRS 9 Amendments to IFRS 4 Extension of the Temporary Exemption from Applying IFRS 9 Amendments to IFRS 4 Extension of the Temporary Exemption from Applying IFRS 9 is issued by the International Accounting Standards Board (Board). Disclaimer: To the extent permitted by applicable law, the Board and the IFRS Foundation (Foundation) expressly disclaim all liability howsoever arising from this publication or any translation thereof whether in contract, tort or otherwise to any person in respect of any claims or losses of any nature including direct, indirect, incidental or consequential loss, punitive damages, penalties or costs. Information contained in this publication does not constitute advice and should not be substituted for the services of an appropriately qualified professional. ISBN: 978-1-911629-76-4 Copyright © 2020 IFRS Foundation All rights reserved. Reproduction and use rights are strictly limited. Please contact the Foundation for further details at [email protected]. Copies of Board publications may be ordered from the Foundation by emailing [email protected] or visiting our shop at https://shop.ifrs.org. The Foundation has trade marks registered around the world (Marks) including ‘IAS®’, ‘IASB®’, the IASB® logo, ‘IFRIC®’, ‘IFRS®’, the IFRS® logo, ‘IFRS for SMEs®’, the IFRS for SMEs® logo, ‘International Accounting Standards®’, ‘International Financial Reporting Standards®’, the ‘Hexagon Device’, ‘NIIF®’ and ‘SIC®’. Further details of the Foundation’s Marks are available from the Foundation on request. The Foundation is a not-for-profit corporation under the General Corporation Law of the State of Delaware, USA and operates in England and Wales as an overseas company (Company number: FC023235) with its principal office in the Columbus Building, 7 Westferry Circus, Canary Wharf, London, E14 4HD.
    [Show full text]
  • IAS 7 STATEMENT of CASH FLOWS Contents 1
    IFRS IN PRACTICE 2019-2020: IAS 7 STATEMENT OF CASH FLOWS Contents 1. Introduction 4 2. Definition of cash and cash equivalents 5 2.1. Demand deposits 5 2.2. Short term maturity 6 2.3. Investments in equity instruments 6 2.4. Changes in liquidity and risk 6 2.5 Cryptocurrencies 6 2.6 Short-term credit lending and cash and cash equivalent classification 7 3. Restricted cash and cash equivalent balances – disclosure requirements 8 3.1. Interaction with IAS 1 8 4. Classification of cash flows as operating, investing or financing 9 4.1. Operating activities 9 4.2. Investing activities 9 4.3. Financing activities 9 4.3.1. Disclosure of changes in liabilities arising from financing activities 10 4.4. Classification of interest and dividends 10 4.5. Common classification errors in practice 11 5. Offsetting cash inflows and outflows in the statement of cash flows 13 5.1. Effect of bank overdrafts on the carrying amount of cash and cash equivalents 13 5.2. Refinancing of borrowings with a new lender 14 6. Presentation of operating cash flows using the direct or indirect method 15 7. Income taxes and sales taxes 16 8. Foreign exchange 17 8.1. Worked example – foreign currency translation 17 9. Group cash pooling arrangements in an entity’s separate financial statements 20 10. Securities and loans held for dealing or trading 22 11. Classification of cash flows arising from a derivative used in an economic hedge 23 12. Revenue from Contracts with Customers 24 13. Leases 25 13.1. Payments made on inception of a lease 25 13.2.
    [Show full text]
  • Ifrs-9-Presentation-Of-Interest-Revenue-For-Particular-Financial-Instruments-Mar-18.Pdf
    Presentation of interest revenue for particular financial instruments (IFRS 9 Financial Instruments and IAS 1 Presentation of Financial Statements)—March 2018 The Committee received a request about the effect of the consequential amendment that IFRS 9 made to paragraph 82(a) of IAS 1. That consequential amendment requires an entity to present separately, in the profit or loss section of the statement of comprehensive income or in the statement of profit or loss, interest revenue calculated using the effective interest method. The request asked whether that requirement affects the presentation of fair value gains and losses on derivative instruments that are not part of a designated and effective hedging relationship (applying the hedge accounting requirements in IFRS 9 or IAS 39 Financial Instruments: Recognition and Measurement). Appendix A to IFRS 9 defines the term ‘effective interest method’ and other related terms. Those interrelated terms pertain to the requirements in IFRS 9 for amortised cost measurement and the expected credit loss impairment model. In relation to financial assets, the Committee observed that the effective interest method is a measurement technique whose purpose is to calculate amortised cost and allocate interest revenue over the relevant time period. The Committee also observed that the expected credit loss impairment model in IFRS 9 is part of, and interlinked with, amortised cost accounting. The Committee noted that amortised cost accounting, including interest revenue calculated using the effective interest method and credit losses calculated using the expected credit loss impairment model, is applied only to financial assets that are subsequently measured at amortised cost or fair value through other comprehensive income.
    [Show full text]
  • IFRS 4 Phase II Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts: Update
    Milliman Briefing Note IFRS 4 Phase II Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts: Update Ernst Visser | William Hines | Kurt Lambrechts In this update, we discuss the board’s decisions with respect to amendments in International Financial Reporting Standard (IFRS) 4 Insurance Contracts which were made because of transition issues arising from the different effective dates of IFRS 9 Financial Instruments and the forthcoming replacement of the current standard IFRS 4 Insurance Contracts. This briefing note is an update of our January 2016 briefing note. INTRODUCTION income to remove any additional accounting volatility that may arise from qualifying financial The revised insurance contract accounting standard assets. The second option is called the 'deferral of the International Accounting Standards Board approach' and is available to entities whose (IASB) will not be mandatorily effective before 2020, predominant activity is issuing insurance contracts. while the new standard IFRS 9 Financial This approach provides for a temporary exemption Instruments, which replaces IAS 39, will be effective from applying IFRS 9. on 1 January 2018. Because of this, there will be two consecutive major accounting changes in a short THE OVERLAY APPROACH period of years. IFRS 9 will apply along with the current IFRS 4 Insurance Contracts accounting The overlay approach may be applied by all entities standard. In December 2015 the IASB has issued an from January 2018. Under the overlay approach, an Exposure Draft (ED) on this topic, which we entity would apply IFRS 9 from its effective date but discussed in our January 2016 Briefing Note. The would be allowed at its option to reclassify from profit final amendments to IFRS 4 are expected in and loss (P&L) to other comprehensive income (OCI) September 2016.
    [Show full text]
  • Key Highlights of IFRS 15 and IFRS 9 for the Asset Management Sector
    HeadlineKey highlights Verdana of IFRSBold 15 and IFRS 9 for the asset management sector Malta Asset Management Forum 2018 27 November 2018 IFRS 15 A high level overview © 2018. For information, contact Deloitte Malta. Key highlights of IFRS 15 and IFRS 9 2 IFRS 15 – A high level overview Effective date The new revenue recognition standard is effective from 1 January 2018. Scope IFRS 15 Revenue from Contracts with Customers (“IFRS 15”) prescribes the accounting requirements for all contracts to provide goods or services to customers, unless the contract falls within the scope of another IFRS. Core principle IFRS 15 provides five steps that entities need to follow in accounting for revenue transactions. Recognition Recognition Measurement Measurement Recognition Para. 22–30 Para. 9–21 Para. 46–72 Para. 73–90 Para. 31–45 Recognise Identify the Identify the Allocate the revenue when (or performance Determine the contract with a transaction price as) the entity obligations in the transaction price customer to performance satisfies a contract (Step 3) obligations performance (Step 1) (Step 2) (Step 4) obligation (Step 5) © 2018. For information, contact Deloitte Malta. Key highlights of IFRS 15 and IFRS 9 3 IFRS 15 – A high level overview Step 1 Step 2 Step 3 Step 4 Step 5 Step 1: Identify the contract A legally enforceable contract (including oral or implied) must meet ALL of the following requirements: Contracts are approved and the parties are committed to perform Each party’s rights can be identified Payment terms can be identified Commercial substance It is probable that the entity will collect the consideration to which it will be entitled A contract is outside the scope if: AND Each party can unilaterally terminate the The contract is wholly unperformed contract without compensation © 2018.
    [Show full text]
  • IFRS Example Consolidated Financial Statements 2019
    IFRS Assurance IFRS Example Global Consolidated Financial Statements 2019 with guidance notes Contents Introduction 1 19 Cash and cash equivalents 61 IFRS Example Consolidated Financial 3 20 Disposal groups classified as held for sale and 61 Statements discontinued operations Consolidated statement of financial position 4 21 Equity 63 Consolidated statement of profit or loss 6 22 Employee remuneration 65 Consolidated statement of comprehensive income 7 23 Provisions 71 Consolidated statement of changes in equity 8 24 Trade and other payables 72 Consolidated statement of cash flows 9 25 Contract and other liabilities 72 Notes to the IFRS Example Consolidated 10 26 Reconciliation of liabilities arising from 73 Financial Statements financing activities 1 Nature of operations 11 27 Finance costs and finance income 73 2 General information, statement of compliance 11 28 Other financial items 74 with IFRS and going concern assumption 29 Tax expense 74 3 New or revised Standards or Interpretations 12 30 Earnings per share and dividends 75 4 Significant accounting policies 15 31 Non-cash adjustments and changes in 76 5 Acquisitions and disposals 33 working capital 6 Interests in subsidiaries 37 32 Related party transactions 76 7 Investments accounted for using the 39 33 Contingent liabilities 78 equity method 34 Financial instruments risk 78 8 Revenue 41 35 Fair value measurement 85 9 Segment reporting 42 36 Capital management policies and procedures 89 10 Goodwill 46 37 Post-reporting date events 90 11 Other intangible assets 47 38 Authorisation
    [Show full text]
  • Applying IFRS
    Applying IFRS Impairment of financial instruments under IFRS 9 April 2018 Contents In this issue: 1 Introduction ........................................................................... 6 1.1 Brief history and background of the impairment project .......................................................................... 6 1.2 Overview of IFRS 9 impairment requirements .................... 9 1.3 Key changes from the IAS 39 impairment requirements and the impact and implications ................. 11 1.4 Key differences from the FASB’s standard ....................... 13 1.5 The IFRS Transition Resource Group for Impairment of Financial Instruments (ITG) and IASB webcasts ............ 14 1.6 Other guidance on expected credit losses ........................ 17 2 Scope .................................................................................. 18 3 Approaches .......................................................................... 18 3.1 General approach ......................................................... 19 3.2 Simplified approach ...................................................... 21 3.3 Purchased or originated credit-impaired financial assets ......................................................................... 23 4 Measurement of expected credit losses ................................... 25 4.1 Definition of default ...................................................... 26 4.2 Lifetime expected credit losses ...................................... 26 4.3 12-month expected credit losses ...................................
    [Show full text]