EY In Balance – Issue 5/2022
Welcome to EY In Balance, providing you with the latest insights in financial reporting.
The team
Featured
Changes in sale and leaseback accounting
AASB 16 rules on sale and leaseback transactions have been amended to include all variable lease payments in the lease liability. This is to ensure that gains and losses related to the retained right of use assets are not recognised. This EY publication provides an overview.
New Dynamic Risk Management (DRM) accounting model
The IASB has outlined what may become the future hedge accounting model for interest rate risk for many banks. This model may be extended to other types of risks for entities other than banks. This EY publication provides an overview of how the model is expected to work once finalised and future considerations.
“Let’s Chat Mining & Metals”
Listen to EY videos about mining and metal sector related matters.
IAS 1 amended for new debt covenant disclosures
An entity classifying a long-term debt with covenants as non-current will in the future need to:
- Present them separately in the balance sheet
- Provide disclosures about the covenants, and whether and how it expects to comply with them
This EY publication provides a summary. The AASB is expected to make similar amendments to AASB 101.
Cash transferred via electronic transfers – future amendment to IFRS 9
The IFRIC discussed the recognition of cash received via an electronic transfer and concluded that a trade receivable should be derecognised only at the settlement date. The IASB will explore amending IFRS 9 instead of approving the agenda decision. Until the IASB finalises those amendments, diversity in accounting for similar transactions are expected. EY publication provides a summary.
EY views on proposed sustainability reporting standards
This Video provides a summary of EY views on the ISSB’s proposed IFRS S1 (General disclosures) and IFRS S2 (climate-related disclosures).
