IFRS publications library | IFRS Outlook, Supplements, Illustrative Financial Statements and more - Ernst & Young - Belgium

May/June 2011                  Download issue  (pdf, 486kb)

• What you need to know about the new consolidation, joint arrangements and disclosure standards
• Fair value measurement: What you need to know about the new standard
• IFRS monthly update
• Resources

March/April 2011                  Download issue  (pdf, 486kb)

• Effective dates - when will proposed new IFRS standards apply?
• What we think of the new proposed approach for impairment of financial assets
• Our views on the hedge accounting proposals
• IFRS update
• Resources

January/February 2011                  Download issue  (pdf, 486kb)

• Past, present and future state of IFRS — regulators reflect on the adoption of IFRS in Europe and Australia
• IFRS monthly update
• Resources

• Proposed improvements to IFRS
  IFRS Developments issue 8
  The IASB has proposed seven necessary, but non-urgent, improvements to IFRS as part of its annual improvements project. The amendments are intended to clarify existing IFRS, typically where ambiguity exists. The comment period for the exposure draft closes on 21 October 2011. Our IFRS Developments publication summarises what you need to know about these developments.
  
  
• Changes to the presentation of other comprehensive income — amendments to IAS 1
  IFRS Developments issue 7
  On 16 June 2011, the IASB and the US FASB issued amendments that are intended to improve and align the presentation of items of other comprehensive income (OCI) in financial statements prepared in accordance with IFRS and US GAAP. The amendments to IAS 1 Presentation of Financial Statementsrequire companies preparing financial statements in accordance with IFRS to group together items within OCI that may be reclassified to the profit or loss section of the income statement. The amendments also reaffirm existing requirements that items in OCI and profit or loss should be presented as either a single statement or two consecutive statements.The amendments are effective for annual periods beginning on or after 1 July 2012.Our IFRS Developments publication summarises what you need to know about these developments.
  
  
• Significant changes to accounting for pensions
  IFRS Developments issue 6
  The IASB has published amendments to IAS 19 Employee Benefits today, which proposes major changes to the accounting for employee benefits, including the removal of the option for deferred recognition of changes in pension plan assets and liabilities (known as the "corridor approach"). The result is greater balance sheet volatility for those entities currently applying the corridor approach. In addition, these amendments will limit the changes in the net pension asset (liability) recognised in profit or loss to net interest income (expense) and service costs. Expected returns on plan assets will be replaced by a credit to income based on the corporate bond yield rate. Our IFRS Developments publication summarises what you need to know about these developments.
  
  
• Boards to re-expose revenue proposal, delaying project to seek comments
  IFRS Developments issue 5
  The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB), (collectively, the Boards), have elected to formally expose their joint revenue recognition proposal for a second time because they have made significant changes to the model they proposed last year. Their decision will delay the project, possibly until September 2012, according to the staff paper presented to the Boards, but will give constituents a chance to comment on the changes. We support the Boards' decision to re-expose and strongly encourage companies to re-evaluate the proposed revised model and provide feedback to the Boards.
  
  
• SEC Staff Paper explores possible approach to incorporating IFRS
  IFRS Developments issue 4
  The staff of the Securities and Exchange Commission (SEC) has published a Staff Paper exploring a possible approach for incorporating IFRS into the US financial reporting system. This issue of IFRS Developments provides a high-level summary of the Staff Paper. Under the proposed approach in the Staff Paper, US GAAP would be retained and the US FASB would incorporate IFRS into US GAAP during a transition period. Newly issued or amended IFRSs would be incorporated following an endorsement protocol. The SEC is seeking comments on this and other approaches for incorporating IFRS into US GAAP by 31 July 2011.
  
  
• A U-turn on straight-line lease expense
  IFRS Developments issue 3
  At their joint meeting on 19 May 2011, the IASB and the US FASB reversed course on their tentative decision to introduce lease classification and straight-line rent expense into their new accounting model for lessees. The Boards have decided to go back to their exposure draft approach of requiring lessees to recognize interest expense using the interest method and separately amortize the right-of-use asset (generally on a straight-line basis). This approach accelerates lease expense for today's operating leases.
  
  
• Fair value measurement guidance converges
  IFRS Developments issue 2
  We've summarised the key points of IFRS 13 Fair Value Measurementand included our perspectives on the new standards.
  
  
• IASB issues three new standards
  IFRS Developments issue 1
  We've summarised the key points of IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosures of Interests in Other Entities and included our perspectives on the new standards.

Issue 101:             Download issue (pdf, 232kb)

• At their April 2011 meeting, the IASB and the US FASB redeliberated the remaining significant aspects of the revenue recognition exposure draft. This included estimating the transaction price when variable consideration exists, allocation of the transaction price, the accounting for licenses and the rights to use intellectual property, put options on sale and repurchase agreements, and fulfilment costs.

Issue 100:             Download issue (pdf, 261kb)

• The IASB and the FASB have continued to refine their proposed accounting for leases. They have completed their targeted outreach activities and have tentatively agreed to changes to the expense recognition pattern for lessees, accounting for variable lease payments and the guidance on the definition of a lease. They decided to introduce a distinction between different types of leases into their new accounting model and to require different expense recognition for leases that contain a significant financing component and those that do not. In this supplement, we summarise what you need to know about these developments.

Issue 99:             Download issue (pdf, 221kb)

• The IASB and the FASB are currently in the process of addressing the concerns raised by respondents about their June 2010 proposal for the new revenue recognition standard. Although the Boards still have a number of issues to redeliberate, this supplement considers the significant decisions that have already been made by the Boards in the first quarter of 2011.

Issue 98:             Download issue (pdf, 421kb)

• The IASB and the FASB have continued to refine their proposed accounting for leases and address certain concerns raised by constituents. The Boards have tentatively agreed to changes involving separating lease and non-lease components, accounting for purchase options included in a lease, initial measurement of lease-related assets and liabilities and accounting for short-term leases. The Boards have also tentatively agreed to make significant changes to the criteria for sale-leaseback transactions. Supplement to IFRS Outlook Issue 98 summarizes what you need to know about these developments.

Issue 97:             Download issue (pdf, 321kb)

• IFRS 7 Financial Instruments: Disclosures (IFRS 7) is continually evolving in response to demands for more robust disclosures in respect of financial instruments. During 2010, several changes were made to IFRS 7 that are set to take effect in 2011 and 2012. Generally, these changes are intended to simplify the disclosures and reduce the amount of time and effort needed to prepare an entity's financial statements. However, the new requirement to disclose the financial effect of collateral held as security is likely to be a systems challenge or a labour intensive exercise for many entities. In this supplement, we take a look at some of the practical considerations that may arise when implementing the changes in 2011 and 2012.

Issue 96:             Download issue (pdf, 421kb)

• In reponse to criticism, IASB and the FASB decided to make changes to their proposed model for lease accounting. commenters found the model overly complex and potentially costly to implement. The Boards tentatively agreed to revise the proposed definition of the lease term and the treatment of variable lease payments, but they still remain committed to requiring that all leases be recognised on the balance sheet.

Issue 95:             Download issue (pdf, 478kb)

• The IASB and US FASB jointly proposed a common approach to account for impairment of financial assets managed in an open portfolio. This proposals require that financial assets would be separated into a 'good book' and 'bad book'. Credit losses on the good book would be recognised over time, while all credit losses on the bad book would be recognised immediately on transfer. The IASB published these proposals as a supplementary document to its November 2009 Exposure Draft Financial Instruments: Amortised Cost and Impairment and is seeking feedback on this approach. Here, we take a look at the proposals and consider their likely impact on businesses. The comment are due April 2011.

Issue 94:             Download issue (pdf, 478kb)

• Ever since the introduction of IFRS in Europe, the offsetting of financial assets and liabilities on the balance sheet has been a controversial issue. The ability to offset under IFRS is more limited than under US GAAP, especially for derivatives. Given the greater focus on banks' risks since the financial crisis, the Basel Committee on Banking Supervision and the Financial Stability Board have raised concerns about the major GAAP difference. In response to these concerns, the IASB and the US FASB issued a joint exposure draft on 28 January 2011, proposing changes to their existing requirements to address such differences. This supplement considers the proposals and their likely impact on existing IFRS reporters.

Issue 93:             Download issue (pdf, 478kb)

• The IASB issued Deferred Tax: Recovery of Underlying Assets (amendments to IAS 12) concerning the determination of deferred tax on investment property measured at fair value. The amendments introduce a rebuttable presumption that deferred tax in relation to such property should be measured on the basis that the carrying amount will be recovered through sale as well, they also incorporate SIC-21 Income Taxes - Recovery of Revalued Non-Depreciable Assets into IAS 12.

Issue 92:             Download issue (pdf, 248kb)

• The IASB issued Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to IFRS 1). The amendments to IFRS 1 First-time adoption of International Financial Reporting Standards introduce a new deemed cost exemption for entities that have been subject to severe hyperinflation. They also remove the legacy fixed dates in IFRS 1 relating to derecognition and day one gain or loss transactions.

Issue 91:             Download issue (pdf, 138kb)

• The IASB has just released an Exposure Draft - Hedge Accounting (ED) with proposals to substantially simplify hedge accounting. This is the third phase of the IASB's project to replace IAS 39. However, proposals relating to macro (portfolio) hedge accounting have not been included in this ED. In this supplement, we take a look at the main changes proposed in the ED.

Issue 90:             Download issue (pdf, 148kb)

• On 29 November 2010, the IASB and the FASB jointly issued an updated progress report on their convergence projects. This supplement summarises the reports that have been prioritised for completion by 30 June 2011, those that have been deferred, and our views on the revised agenda.

Issue 89:             Download issue (pdf, 198kb)

• The IASB has issued the first part of Phase 1 of IFRS 9 dealing with the classification and measurement of financial assets. On 28 October 2010, the IASB issued amendments to IFRS 9 to address financial liabilities. Furthermore, these amendments also incorporate the current derecognition principles of IAS 39 into IFRS 9. Our supplement summarises the amendments.

Issue 88:             Download issue (pdf, 268kb)

• The Boards are requesting comments about the time and effort required to adapt to the new standards and when they should become effective.

Issue 86:             Download issue (pdf, 458kb)

• The IASB and FASB announced the completion of the first phase of their joint project to develop an improved conceptual framework for IFRS and US GAAP. The project's objective is to create a sound foundation for future accounting standards that are principles-based, internally consistent and internationally converged. The first phase includes Chapter 1 The objective of general purpose financial statements and Chapter 3 Qualitative characteristics of useful financial information.

Issue 85:             Download issue (pdf, 389kb)

• The IASB issued Amendments to IFRS 7: Financial Instruments: Disclosures on 7 October 2010 to enhance the transparency of disclosure requirements for the transfer of financial assets. The amendments will assist users to understand the implications of transfers of financial assets and the potential risks that may remain with the transferor. This Supplement considers these new requirements and their possible impact.

Issue 84:             Download issue (pdf, 128kb)

• Our supplement summarises the staff draft of the proposed standard Consolidated Financial Statements. The new IFRS will replace portions of IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation—Special Purpose Entities with a single standard on consolidation.

Issue 81:             Download issue (pdf, 614kb)

• The IFRS Interpretations Committee issued a draft interpretation (DI) on stripping costs that are incurred during the production phase of a mine. The Interpretations Committee reached a consensus that the costs of a stripping campaign should form a component of the underlying asset to which the benefits of the campaign relate. Subsequently, these costs would be depreciated or amortised on a rational and systematic manner over the useful life of the specific ore body that becomes available as a result of the stripping campaign. This supplement provides a high-level summary of the DI.

Issue 80:             Download issue (pdf, 372kb)

• The IASB posted a staff draft of the proposed standard Fair Value Measurement to its website on 19 August 2010. The proposed standard Fair Value Measurement will establish a single source of guidance for all fair value measurements, when fair value is required or permitted by IFRS. The staff draft reflects the tentative decisions to date of the US FASB and the IASB regarding how to measure fair value. This staff draft might be useful for those IFRS constituents wishing to interact with the IASB on their proposed Fair Value Measurement standard, or those planning for their eventual adoption of the standard when it is issued.

Issue 79:             Download issue (pdf, 310kb)

• The IASB and the US FASB published for public comment joint proposals to improve the reporting of lease contracts. The proposals, if adopted, will greatly improve the financial reporting information available to investors about the financial effects of lease contracts. Our supplement summarises the proposed accounting changes to leases.

Issue 78:             Download issue (pdf, 446kb)

• The IASB and the US FASB have posted to their respective websites, a staff draft of an exposure draft (the draft ED) of a new financial statement presentation standard. The draft ED reflects the Boards' tentative decisions to date regarding their efforts in developing a new financial statement presentation standard. The Boards' proposals are fundamentally the same, although there are some minor differences around segment disclosures.

Issue 77:             Download issue (pdf, 368kb)

• This supplement explores a number of topics following the release of the IASB's June 2010 exposure draft (ED 2010 7) Measurement Uncertainty Analysis Disclosure for Fair Value Measurements including:
  • the specific proposals of the ED for disclosures related to measurement uncertainty
  • how the ED fits in with the joint project with the FASB on Fair Value Measurements
  • how it compares with current IFRS, the May 2009 ED and US GAAP

Issue 75:             Download issue (pdf, 310kb)

• The IASB and the US FASB recently issued an Exposure Draft Revenue from Contracts with Customers (ED), containing a joint proposal for a single revenue recognition model for most revenue transactions.

Issue 74:             Download issue (pdf, 199kb)

• The IASB has issued for comment an Exposure Draft Presentation of Items of Other Comprehensive Income (amendments to IAS 1 Presentation of Financial Statements),proposing limited changes to the presentation of other comprehensive income (OCI). Our supplement summarises the proposed changes.

Issue 73:             Download issue (pdf, 749kb)

• The US FASB released new proposals on accounting for financial instruments. If adopted as proposed, this would be a significant change from current US GAAP because many more financial instruments, including loans, will be measured at fair value.

Issue 70:             Download issue (pdf, 107kb)

• The IASB published a new ED Employee Benefits which proposes major changes to the accounting for long-term employee benefits. Chief among the new proposals is the removal of the 'corridor mechanism' that many companies use for accounting for pension obligations to defer actuarial gains and losses. This change would lead to greater volatility in the value of net assets, in turn requiring companies to consider the potential implications for debt covenant ratios and other ratios.

Issue 69:             Download issue (pdf, 201kb)

• The lack of comprehensive financial reporting guidance for the minerals and oil and gas industries has led to significant divergence in financial reporting for extractive activities under IFRS. In response, the IASB has published a Discussion Paper (DP) for comment (that was first published in a working draft of the DP in August 2009). The DP presents the results of the research project and contains the views of the project team, which is comprised of staff from the national standard setters in Australia, Canada, Norway and South Africa. The DP does not represent the views of the Board. This supplement provides an overview of the DP.

Issue 68:             Download issue (pdf, 168kb)

• Our supplement summarises the proposed description of a reporting entity included in the Conceptual Framework exposure draft, which includes a discussion of what the proposals mean for consolidated financial statements, combined financial statements and parent-only financial statements.

Issue 64:             Download issue (pdf, 169kb)

• This issue summarises the IASB's amendment to correct an unintended consequence of IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and Their Interaction. The requirements of IFRIC 14 meant that some entities that were subject to minimum funding requirements could not treat any surplus in a defined benefit pension plan as an economic benefit. This amendment will allow these entities to recognise a prepayment of pension contributions as an asset rather than an expense.

Issue 62:             Download issue (pdf, 159kb)

• The IFRIC has issued Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments which clarifies the treatment of financial liabilities that are extinguished with equity instruments. In this supplement, we summarise the key features of IFRIC 19 and consider the potential impact the interpretation may have on businesses.

Issue 61:             Download issue (pdf, 2.1mb)

• The IASB is another step closer to replacing IAS 39 with the publication of a new Exposure Draft on financial instruments carried at amortised cost. In our supplement we summarise the ED which proposes a new impairment methodology, and changes the effective interest rate approach. We also look at the business implications of these proposals

Issue 60:             Download issue (pdf, 896kb)

• Phase 1 of the IASBs financial instruments project is now complete, with the issue of IFRS 9 Financial Instruments. Phase 1 establishes a new classification and measurement framework for financial assets, replacing the corresponding sections of IAS 39. In this supplement we highlight the main requirements of IFRS 9, significant issues redeliberated by the Board since June and discuss the key business impacts.

Issue 59:             Download issue (pdf, 89kb)

• The IASB has issued a revised version of IAS 24 Related Party Disclosures that clarifies and simplifies the definition of a related party. The revised standard also provides some relief for government-related entities (as defined in the amended standard) to disclose details of all transactions with other government-related entities (as well as with the government itself). In this supplement, we summarise the changes to IAS 24 and highlight the potential implications for businesses.

Issue 20:             Download issue (pdf, 793kb)

• Summarises the proposed SEC Roadmap addressing US IFRS conversion.

Issue 19:             Download issue (pdf, 180kb)

• Highlights the IASB Expert Advisory Panel's discussion on measuring and disclosing fair value of instruments in financial markets that are no longer active.

Issue 15:             Download issue (pdf, 86kb)

• Summarises the Exposure Draft, proposing amendments to IFRS 5.

Consolidated Financial Statements: Good Group (International) Limited 2010:   Download  (pdf, 775kb)

• This publication contains an illustrative set of consolidated financial statements of Good Group (International) Limited and subsidiaries ('the Group') for the year ended 31 December 2010. These illustrative financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as of 31 August 2010.

Interim Consolidated Financial Statements: Good Group (International) Limited Download  (pdf, 38kb)

• This publication contains an illustrative set of interim condensed consolidated financial statements of Good Group(International) Limited and subsidiaries (the Group) for the six months ending 30 June 2010. These interim financial statements are prepared in accordance with IAS 34 Interim Financial Reporting and International Financial Reporting Standards in issue at 31 March 2010.

Banking: Good Bank (International) Limited             Download issue  (pdf, 812kb)

• This publication provides a practical working model of consolidated financial statements prepared in accordance with IFRS for a fictitious banking entity, Good Bank (International) Limited, and its subsidiaries, incorporated and listed in "Goodland," with a reporting date of 31 December 2008. (Based on IFRS in issue at 31 March 2009.)

Insurance: Good Insurance (International) Limited 2010             Download issue  (pdf, 1.1mb)

• This publication contains the consolidated financial statements of a fictitious insurance group, Good Insurance (International) Limited, prepared in accordance with IFRS issued up to 30 June 2010. The insurance group issues life and non-life insurance products as well as investment products that contain insurance components.

Investment Fund: Good Investment Fund Limited 2010 (Equities):             Download issue  (pdf, 489kb)

• This publications contains the illustrative financial statements of a fictitious investment fund whose puttable shares are classified as equity instruments for the year ended 31 December 2010.

Investment Fund: Good Investment Fund Limited 2010 (Liabilities):             Download issue  (pdf, 566kb)

• This publication contains the illustrative financial statements of a fictitious investment fund whose puttable shares are classified as financial liabilities for the year ended 31 December 2010.

Mining: Good Mining (International) Limited             Download issue  (pdf, 1.2MB)

• This publication provides an illustrative set of consolidated financial statements with a reporting date of 31 December 201-, prepared in accordance with IFRS in issue at 31 August 2010, for Good Mining (International) Limited, a fictitious group of mining companies.

Petroleum: Good Petroleum (International) Limited            Download issue  (pdf, 1.2mb)

• This publication provides an illustrative set of consolidated financial statements for Good Petroleum (International) Limited, a fictitious group of oil and gas companies. The group's activities include oil exploration and field development and production, together with pipeline transportation. (Based on IFRS in issue at 31 May 2010.)

Real Estate: Good Real Estate (International) Limited             Download issue  (pdf, 405kb)

• This publication provides an illustrative set of consolidated financial statements, prepared in accordance with IFRS, for Good Real Estate Group (International) Limited (the Group), a fictitious group of real estate companies. (Based on IFRS in issue at 31 August 2010.)