IFRS (International Financial
Reporting Standards)

Current IFRS projects

• Overview of IFRS projects
  • IFRS Developments, Issue 138: IASB issues amendments to the definition of material
  • IFRS Update of standards and interpretations in issue at 30 September 2018
  • IFRS Update of standards and interpretations in issue at 30 June 2018
  • IFRS Update of standards and interpretations in issue at 31 March 2018
  • IASB issues revised Conceptual Framework for Financial Reporting
  • IFRS Update of standards and interpretations in issue at 31 December 2017
  • IFRS Developments Issue 131: IASB concludes 2015-2017 Annual Improvements Cycle
  • IFRS Update of standards and interpretations in issue at 30 September 2017
  • IFRS Developments, Issue 129: Disclosure Initiative – updates on the materiality project
  • IFRS Update of standards and interpretations in issue at 30 June 2017
  • IFRS Developments, Issue 124: Disclosure Initiative – Principles of Disclosure
  • IFRS Update of standards and interpretations in issue at 31 March 2017
  • IFRS Update of standards and interpretations in issue at 31 December 2016
  • IFRS Update of standards and interpretations in issue at 30 September 2016
  • IFRS Update of standards and interpretations in issue at 30 June 2016

  IFRS Update is an overview of upcoming changes in standards and interpretations issued by the IASB and the IFRS IC as at 30 June 2016 that will be effective for the first-time for reporting periods ended at that date or thereafter. It also summarises key features of selected IASB projects and recent IFRS IC agenda rejection notices.

• Revenue recognition

  The IASB and the FASB have issued new requirements for recognising revenue under both IFRS and US GAAP. IFRS 15 Revenue from Contracts with Customers provides a single revenue recognition model based on the transfer of control of a good or service to a customer.

  The new revenue standard marks a significant change from current requirements under IFRS. It provides a more structured approach to measuring and recognising revenue, with detailed application guidance. Therefore, adoption may be a significant undertaking for many entities. Early assessment will be key to managing a successful implementation.

  The standard is effective on 1 January 2018, with early adoption only permitted under IFRS.

  EY video

  Watch this 3-minute video about preparing to implement the new revenue recognition standard

  

  EY thought leadership

  General materials

  • Applying IFRS: A closer look at IFRS 15, the revenue recognition standard (Updated October 2018)
  • Applying IFRS: Presentation and disclosure requirements of IFRS 15 (Updated July 2018)
  • IFRS Developments, Issue 128: Revenue earned before an asset is ready for its intended use
  • IFRS Developments, Issue 126: Are you ready to quantify the effect of adopting IFRS 15?
  • Applying IFRS: Transition Resource Group for Revenue Recognition (TRG) items of general agreement
  • IFRS Developments, Issue 120: IASB debriefs the April 2016 FASB TRG meeting on revenue
  • IFRS Developments Issue 119: IASB issues clarifications to IFRS 15 (April 2016)
  • Applying IFRS: TRG addresses more revenue implementation issues (November 2015)
  • IFRS Developments Issue 110: IASB decides to defer the new revenue standard by one year (July 2015)
  • Joint Transition Resource Group discusses additional revenue implementation issues (July 2015)
  • Applying IFRS: Joint Transition Resource Group for Revenue Recognition discusses more implementation issues (April 2015)
  • Applying IFRS: The new revenue recognition standard - Joint Transaction Resource Group (January 2015)
  • IFRS Developments Issue 95: Joint Transition Resource Group tackles new revenue topics (November 2014)
  • IFRS Developments Issue 92: Audit committee considerations for the new revenue standard (October 2014)
  • IFRS Developments Issue 85: Joint Transition Resource Group for Revenue Recognition debates implementation issues (July 2014)
  • IFRS Developments Issue 80: IASB and FASB issue new revenue recognition standard — IFRS 15 (May 2014)

  Industry materials

  • Applying IFRS: How IFRS 15 Revenue from Contracts with Customers affects life sciences entities
  • Applying IFRS in Engineering and Construction: The new revenue recognition standard (July 2015)
  • Applying IFRS in Mining and Metals: The new revenue recognition standard - mining and metals (June 2015)
  • Applying IFRS in Retail and Consumer Products: The new revenue recognition standard - retail and consumer products (May 2015)
  • Applying IFRS in Real Estate: The new revenue recognition standard - real estate (March 2015)
  • Applying IFRS in Telecommunications: The new revenue recognition standard - telecommunications (March 2015)
  • Applying IFRS in Software and Cloud Services: The new revenue recognition standard - software and cloud services (January 2015)
  • Applying IFRS in Technology: The new revenue recognition standard – technology (January 2015)
  • Applying IFRS in Asset Management: The new revenue recognition standard – asset management (January 2015)
  • Applying IFRS in Automotive Industry: The new revenue standard – automotive (December 2014)

  
  

   

• Leases

  The IASB has issued IFRS 16 Leases, its new leases standard that requires lessees to recognise assets and liabilities for most leases. Lessees applying IFRS 16 will have a single accounting model, with certain exemptions. Lessors applying IFRS 16 will classify leases using the same principle as in IAS 17 and lessor accounting is substantially unchanged. The IASB and the FASB have made different decisions during their deliberations. In some cases, these differences will result in similar transactions being accounted for differently under IFRS and US GAAP.

  EY video

  Watch this short video about preparing to implement the new leases standard

  

  EY thought leadership

  General materials

  • IFRS Developments Issue 146 - Subsurface rights (IFRS 16 – Leases)
  • Applying IFRS – Impairment considerations when applying the new leasing standard (IFRS 16)
  • Applying IFRS – A closer look at IFRS 16 Leases
  • Applying IFRS – Presentation and disclosure requirements of IFRS 16 Leases
  • Applying IFRS - A closer look at the new leases standard
  • How will IFRS 16 Leases impact the real estate sector?
  • Leases make their way onto the balance sheet: Navigating the journey for a smooth landing
  • IFRS Developments Issue 117: IASB issues new leases standard (January 2016)

  Industry materials

  • Applying IFRS: New IASB leases standard – engineering and construction
  • Applying IFRS - Leases standard for consumer products and retail
  • Applying IFRS: New IASB leases standard – Mining and metals
  • Applying IFRS: New IASB leases standard – tank terminals
  • Applying IFRS: New IASB leases standard – Oil and Gas
  • Applying IFRS: New IASB leases standard – Oilfield services
  • Applying IFRS: New IASB leases standard – Mining and metals
  • Applying IFRS: New IASB leases standard - engineering and construction
  • Applying IFRS in Financial Services: The new leases standard - financial services
  • Applying IFRS in telecommunications: IASB issues new leases standard – telecommunications
• Financial instruments

  The International Accounting Standards Board (IASB) issued the final version of IFRS 9 Financial Instruments on 24 July 2014. IFRS 9 brings together the classification and measurement, impairment and hedge accounting phases of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement and is expected to be effective for annual periods beginning on or after 1 January 2018.

  Accounting for dynamic risk management, commonly referred to as macro hedging, does not form part of IFRS 9 and is a separate project.

  IFRS 9 introduces principles-based requirements for classification and measurement. Also, the IASB has addressed the key concern that arose as a result of the financial crisis that the incurred loss model in IAS 39 contributed to the delayed recognition of credit losses, by issuing the new impairment requirements that are based on a more forward-looking expected credit loss model. The hedge accounting requirements in IFRS 9 were developed with a view to providing better information about the management activities that involve hedging.

  EY thought leadership

  Classification and measurement

  • IFRS Developments Issue 135: IASB issues discussion paper on financial instruments with characteristics of equity
  • Good Bank - Illustrative disclosures for IFRS 9 impairment and transition
  • IFRS Developments, Issue 130: IASB issues an Amendment to IFRS 9
  • IFRS Developments, Issue 125: IASB proposes amendment to IFRS 9
  • Applying IFRS: IFRS 9 for non-financial entities
  • Applying IFRS: Classification of financial instruments under IFRS 9
  • IFRS Developments Issue 86: IASB issues IFRS 9 Financial Instruments – classification and measurement
  • Comment letter: Limited amendments to IFRS 9 Proposed amendments to IFRS 9 (2010) (March 2013)

  Financial Instruments – impairment

  • EY IFRS 9 Survey Impairment Survey – challenges remain
  • IFRS updates and challenges for UK banks (July 2016)
  • EY IFRS 9 impairment banking survey (September 2016)
  • The Basel Committee Guidance on credit risk and accounting for expected credit losses
  • Applying IFRS: ITG discusses IFRS 9 impairment issues at December 2015 ITG meeting
  • IFRS Developments Issue 112: ITG discusses IFRS 9 impairment issues
  • Applying IFRS: Impairment of financial instruments under IFRS 9 (December 2014)
  • IFRS Developments Issue 105: The ITG discusses IFRS 9 impairment implementation issues
  • Basel Committee proposes guidance on accounting for expected credit losses
  • IFRS Developments Issue 87: IASB issues IFRS 9 Financial Instruments – expected credit losses
  • IFRS Developments Issue 74: IASB completes redeliberations on expected credit loss model; sets 2018 effective date

  Financial instruments – hedging

  • Good Bank (International) Limited - Illustrative disclosures under IFRS 7R (December 2018)
  • IFRS Developments Issue 109: Next steps for the accounting for dynamic risk management project
  • Thought Center webcast: Hedge Accounting for non-financial entities (January 2014)
  • Applying IFRS: Hedge accounting under IFRS 9
  • IFRS Developments Issue 68: The IFRS issues IFRS 9 (2013) - hedge accounting is now complete
  • IFRS Developments, Issue 62: Amendments to IAS 39 - continuing hedge accounting after novation

  Financial instruments – other

  • Applying IFRS - Impairment of financial instruments under IFRS 9
  • IFRS Developments Issue 77: IASB issues a discussion paper on accounting for macro hedging
  • Applying IFRS: Credit valuation adjustments for derivative contracts
  • IFRS changes impacting the banking industry. An update for the CFO (May 2013)
  • Applying IFRS, Offsetting financial instruments: clarifying the amendments (May 2012)
• Consolidation and joint arrangements

  The IASB issued IFRS 10 Consolidated Financial Statements in May 2011, establishing a new definition of control that may significantly change which entities are considered to be controlled, and therefore consolidated. The IASB also issued IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities in May 2011. The IASB and FASB are working jointly to consider issues relating to consolidation accounting for qualifying investment entities.

  EY thought leadership

  General materials

  • IFRS Developments, Issue 122: IASB proposes amendments to IFRS 3 and IFRS 11
  • Applying IFRS: IFRS Interpretations Committee agenda decisions relating to IFRS 11 (April 2015)
  • IFRS Developments, Issue 97: IASB issues amendments to the investment entities exception
  • Applying IFRS - Challenges in adopting and applying IFRS 11 (June 2014)
  • IFRS Developments, Issue 82: The IASB proposes additional guidance on the investment entity exception. (June 2014)
  • IFRS Developments, Issue 79: Recent IASB and Interpretations Committee discussions on the investment entity exception. (May 2014)
  • Applying IFRS: IFRS 12 - Structured entities - considerations for fund managers.
  • Applying IFRS - Challenges in adopting and applying IFRS 10
  • Applying IFRS - IFRS 12 Example disclosures for interests in unconsolidated structured entities
  • IFRS Developments, Issue 35: Transition guidance amendments for IFRS 10, IFRS 11 and IFRS 12
  • IFRS Developments, Issue 34: Investment entities - the plot thickens (June 2012)
  • Comment Letter: Comments on Exposure Draft 2011/4 Investment Entities (January 2012)
  • Applying IFRS: Challenges for banks and their structural entities in adopting and applying IFRS 10 (January 2012)
  • Applying IFRS: Challenges in adopting and applying IFRS 11 (September 2011)
  • IFRS Developments, Issue 1: IASB issues three new standards: Consolidated Financial Statements, Joint Arrangements, and Disclosure of Interests in Other Entities (May 2011)
  • IFRS Practical Matters: What do the new consolidation, joint arrangements and disclosure accounting standards mean to you? (June 2011)

  Industry materials

  • Applying IFRS: Potential implications of the amendments to IFRS 11 Joint Arrangements
  • Applying IFRS in Life Sciences: Accounting for collaborations in the life sciences sector
  • Applying IFRS: Banking and Capital Markets – Challenges for banks and their structured entities in adopting and applying IFRS 10 (January 2012)
  • IFRS Developments for Insurers: IFRS 10 – Consolidated Financial Statements – an insurer's perspective (December 2011)
  • Applying IFRS: Accounting for joint arrangements in the power and utilities sector (November 2011)
  • Exploring IFRS: Managing the risk – joint venturing (August 2011)
  • Refining IFRS: Managing the risk – joint venturing (August 2011)
  • Applying IFRS: Oil & Gas – Impact of the new joint arrangements and consolidation standards (August 2011)
  • Applying IFRS: Mining & Metals – Impact of the new joint arrangements and consolidation standards (August 2011)
  • IFRS insights for asset managers: Consolidated financial statements (May 2011)
  • IFRS 10, 11 and 12 on consolidation and joint arrangements: A changing balance sheet – Implications for the real estate and construction industries (May 2011)
• Insurance contracts

  Under a joint project, the IASB and FASB have proposed measurement models for insurance liabilities that incorporate current estimates of discounted cash flows re-measured at each reporting date.

  EY thought leadership

  • Good General Insurance - Selected Illustrative disclosures for IFRS 17, IFRS 9 and IFRS 7
  • Insurance Accounting Alert - IASB meeting (February 2019)
  • Insurance Accounting Alert - IASB meeting (January 2019)
  • Insurance Accounting Alert - IASB meeting (December 2018)
  • Insurance Accounting Alert - IASB agrees to defer IFRS 17 to 2022 (November 2018)
  • Insurance Accounting Alert - IASB meeting October 2018
  • Good Life Insurance - Selected Illustrative disclosures for IFRS 17, IFRS 9 and IFRS 7
  • Third technical discussion of the IASB’s TRG for IFRS 17 insurance contracts
  • Applying IFRS 17 - A closer look at the new Insurance Contracts standard
  • Insurance Accounting Alert June 2018
  • Second technical discussion of the IASB’s TRG for IFRS 17 Insurance Contracts
  • First technical discussion of the IASB’s TRG for IFRS 17 insurance contracts
  • Good Insurance - Illustrative Consolidated Financial Statements (2017)
  • IASB issues IFRS 17 Insurance Contracts – the new standard for insurance contracts
  • Insurance Accounting Alert – February 2017
  • Good Insurance - Illustrative Financial Statements 2016
  • Insurance Accounting Alert, November 2016: IASB sets 1 January 2021 as the effective date of IFRS 17 Insurance Contracts
  • Insurance Accounting Alert, September 2016: IASB amendments to IFRS 4 to address different effective dates of IFRS 9 and IFRS 17
  • Insurance Accounting Alert, June 2016: IASB provides further guidance on the level of aggregation of the CSM
  • Insurance Accounting Alert, May 2016: IASB completes redeliberations on amendments to IFRS 4 regarding the application of IFRS 9
  • Insurance Accounting Alert, April 2016: IASB decides to broaden eligibility for the temporary exemption from IFRS 9
  • Insurance Accounting Alert, March 2016: IASB gives guidance for finalization of amendments to IFRS 4 relating to IFRS 9 adoption
  • Insurance Accounting Alert, February 2016: IASB decides not to re-expose draft insurance contracts standard
  • Insurance Accounting Alert, January 2016: IASB makes decisions on level of aggregation and the effect of discretion for participating contracts
  • Insurance Accounting Alert, December 2015: IASB issues proposal to address different effective dates of IFRS 9 and new insurance contracts standard
  • Insurance Accounting Alert, November 2015: IASB compares the general model and variable fee approach and agrees to retain differences
  • Insurance Accounting Alert, October 2015: IASB sets comment period for amendments to current IFRS 4 regarding IFRS 9 implementation
  • Insurance Accounting Alert, September 2015: IFRS 9 deferred for insurance entities; further progress on participating contracts model
  • Insurance Accounting Alert, July 2015: IASB decides to mitigate impact of applying IFRS 9 before IFRS 4 Phase II
  • Insurance Accounting Alert, June 2015: IASB adopts variable fee approach for certain participating contracts
  • Insurance Accounting Alert, May 2015: IASB holds further discussions on participating contracts
  • Insurance Accounting Alert, March 2015: IASB continues its discussions on participating contracts
  • Insurance Accounting Alert, February 2015: IASB discusses level of aggregation for insurance contracts
  • Insurance Accounting Alert, February 2015: IASB discusses transition relief for financial assets upon the adoption of the new insurance contracts standard
  • Insurance Accounting Alert, December 2014: IASB discusses alternative proposal for participating contracts
  • Insurance Accounting Alert, November 2014: IASB discusses transition for non-participating contracts
  • Insurance Accounting Alert, October 2014: IASB makes progress on the PAA; and continues educational discussions on participating contracts
  • Insurance Accounting Alert, August 2014: IASB discusses OCI for participating contracts, CSM and policy change requirements
  • Insurance Accounting Alert, July 2014: IASB discusses discount rates, reinsurance contracts and level of aggregation
  • Insurance Accounting Alert, June 2014: IASB continues re-deliberations on insurance contracts
  • Insurance Accounting Alert, May 2014: IASB confirms the use of insurance contracts revenue
  • Insurance Accounting Alert, March 2014: IASB makes use of OCI optional and confirms unlocking of Contractual Service Margin
  • Insurance Accounting Alert, February 2014: IASB sets 2018 effective date for IFRS 9; FASB scales back scope of its insurance project
  • Insurance Accounting Alert, February 2014: Boards discuss comment letter responses
  • Insurance Accounting Alert, June 2013: IASB issues revised exposure draft on insurance contracts
• Other projects

  In addition to the priority projects (i.e., revenue recognition, leases, financial instruments, consolidation and joint arrangements, and insurance), the IASB is currently working on other projects. Coverage of those projects is available:

  • IFRS Developments, Issue 138: IASB issues amendments to the definition of material
  • Applying IFRS – Alternative Performance Measures
  • IFRS Developments, Issue 129: Disclosure Initiative – updates on the materiality project
  • Accounting for financing arrangements in the life sciences sector
  • IFRS Developments Issue 124: Disclosure Initiative – Principles of Disclosure
  • Applying IFRS - Enhancing communication effectiveness
  • IFRS Develpments, Issue 121: IASB issues amendments to IFRS 2
  • IFRS Developments,Issue 121: IASB issues amendments to IFRS 2
  • Goodwill hunting - Looking for property investors' missing cash flows
  • IFRS Developments, Issue 115: Disclosure Initiative - proposed guidance on materiality (October 2015)
  • Applying IFRS: IASB issues the Conceptual Framework exposure draft (June 2015)
  • IFRS Developments, Issue 98: IASB makes progress on the Disclosure Initiative (December 2014)
  • Applying IFRS: Improving disclosure effectiveness (July 2014)
  • IFRS Developments, Issue 84: Bearer plants – the new requirements (July 2014)
  • Applying IFRS: Credit valuation adjustments for derivative contracts (April 2014)
  • IFRS Developments, Issue 73: IASB public consultation on post-implementation review of IFRS 3 (February 2013)
  • IFRS Developments, Issue 59: IASB issues IFRIC Interpretation 21 Levies (May 2013)
  • IFRS Developments, Issue 56: IASB to clarify interaction between unit of account and fair value measurement requirements (April 2013)
  • Publications

  Rate regulated activities

  • Comment letter to IASB on Discussion Paper: Reporting the Financial Effects of Rate Regulation IFRS Developments (January 2015)
  • Applying IFRS for IFRS 14 Regulatory Deferral Accounts IFRS Developments (November 2014)
  • IFRS Developments, Issue 93: IASB issues a discussion paper on reporting the financial effects of rate regulation (October 2014)
  • IFRS Developments, Issue 72: The IASB issues IFRS 14 - interim standard on regulatory deferral accounts (February 2014)