IFRS
Insights and perspectives in International Financial Reporting Standards
Our latest issue of IFRS Outlook includes the following articles:
- Global Accounting Standards post-2011 – a way forward
- Hedge accounting moves closer to risk management practices
- IFRS project update
Plus an up-to-date list of our recent publications.
Applying IFRS: revenue from contracts with customers
We provide an analysis of the single revenue model that would align IFRS and US GAAP and could significantly change the timing of revenue recognition.
Applying IFRS: New mandatory effective date and transition disclosures
The IASB issued amendments to the classification and measurement model in IFRS 9. The amendments move the mandatory effective date to 1 January 2015. Earlier application continues to be permitted. The amendments no longer require the restatement of comparative figures. Instead, IFRS 7 has been amended to require additional disclosures on transition from IAS 39 to IFRS 9. The new disclosures are either required or permitted, based on the entity's date of transition.
IFRS Developments - Issue 23: Limited improvements to the IFRS 9 classification and measurement model.
At its recent meeting, the IASB reached a tentative decision to consider making limited improvements to IFRS 9 Financial Instruments. While limiting the scope of the review, the IASB seeks to address the interaction between this standard's classification and measurement model and the accounting for insurance contract liabilities. The IASB also seeks to address specific application issues in IFRS 9 and consider possible alignment between IFRS 9 and the FASB's proposed classification and measurement model.
IFRS Developments - Issue 22: Offsetting of financial instruments
Summary of recent amendments to IAS 32 and IFRS 7 on offsetting of financial instruments, intended to clarify existing application issues relating to the offsetting rules, reduce the level of diversity in current practice and to overcome the differences in the offsetting requirements under IFRS and US GAAP.
IFRS Developments - Issue 21: Impairment
Summary of tentative decisions the IASB and FASB made at their recent joint board meeting about the "three-bucket" expected loss approach to the impairment of financial assets.
IFRS Developments - Issue 20: Support grows for keeping US GAAP but basing future standards on IFRS
Representatives of the SEC, the IASB and the FASB discussed the incorporation of IFRS into the US financial reporting system at the AICPA National Conference on Current SEC and PCAOB Developments (the Conference) in Washington D.C. last week. Our IFRS Developments publication summarises the highlights of the speeches made at the conference.
Boards discuss onerous contract testing and measurement of options and guarantees
On December 15 and 16, the IASB and the FASB, held joint meetings to continue their re-deliberations of the tentative decisions in the IASB's Exposure Draft Insurance Contracts (ED) and in the FASB's Discussion Paper Preliminary Views on Insurance Contracts (DP). A large part of the meeting was devoted to discussing the definition of portfolio grouping of cash flows for determining the residual/ single margin, and the risk adjustment (IASB only).
Read Ernst & Young's latest Insurance Accounting Alert to learn more about these developments.
Current issues and financial statement survey 2010-11
Surveying IFRS for real estate highlights accounting policies and disclosures of 38 property companies from Europe, Australia, the Middle East, Asia and Canada.
Implications of IFRS 4, 9 and Solvency II for insurers
We focus on business implementation and project management considerations, analyzing the main areas that will be impacted by IFRS 4 Phase II and IFRS 9.
Applying IFRS in Banking and Capital Markets
The recent financial crisis highlighted the need for better accounting to reflect the substance of relationships between entities. It also highlighted the need for consistency, transparency and comparability in the accounting for and disclosure of such relationships. In May 2011, the IASB issued IFRS 10 and IFRS 12 Disclosure of Interests in Other Entities, with the aim of increasing consistency, transparency and comparability across these areas. These new standards are effective for annual periods beginning on or after 1 January 2013, and must be applied retrospectively.
Revised revenue recognition proposals – implications for the real estate and construction industries
In this issue we consider the potential impact of the IASB's and FASB's latest proposals on revenue recognition and the key implications for entities in the real estate and construction industries, including real estate investment trusts, funds and homebuilders.
IFRS 10 Consolidated Financial Statements – an insurer's perspective
In this issue we outline the challenges that are likely to face insurers under IFRS 10 Consolidated Financial Statements and advise on preparing for these challenges. The changes introduced by IFRS 10 will require management to exercise significant judgement to determine which entities are controlled, and therefore are required to be consolidated by a parent, compared with the requirements that were in IAS 27.
Resource nationalism
As the mining and metals sector rebounded quickly from the global financial crisis, it became an early target of national governments to help restore their treasuries. From the outset of 2011, more than 25 countries have changed their fiscal environment (such as taxes and/or royalties) for mining and metals companies. Resource nationalism places a large cost burden on mining and metals companies and increases the risk of achieving long term project profitability. It can influence an entity's decision whether to invest in a particular country.
This publication focuses on the following types of resource nationalism and the consequential financial reporting implications:
- Imposition of a new resource rent tax
- Amendments to royalty regimes or other tax rates/levies
Boards discuss fixed-fee service contracts
On 20 October, the IASB and FASB continued their re-deliberations of the tentative decisions in the IASB's Exposure Draft Insurance Contracts, and the FASB's Discussion Paper Preliminary Views on Insurance Contracts. At this meeting, the Boards discussed excluding certain fixed-fee contracts from the scope of the insurance contract standard, the eligibility criteria for the premium allocation approach (PAA); and certain topics on presentation and disclosure related to the statements of financial position and comprehensive income.
Read Ernst & Young's latest Insurance Accounting Alert to learn more about these developments.
