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While these newsletters are written from an IFRS perspective, they are relevant to the Australian environment as Australian Accounting Standards incorporate IFRSs issued by the International Accounting Standards Board. If you have any queries regarding these special edition newsletters please don’t hesitate to contact your local Grant Thornton office.
In March 2018 the International Accounting Standards Board (IASB) concluded its long-running project by publishing a revised version of its Conceptual Framework. While the Conceptual Framework is primarily a tool for the IASB, it might have an impact on preparers of financial statements who use the Conceptual Framework to develop accounting policies for transactions or events to which no IFRS Standard applies or where a Standard allows a choice of accounting policy.
This Special Edition of IFRS News explains the key features of the revised Conceptual Framework and provides practical insights into its application and impact.
After twenty years of development the IASB has published IFRS 17 ‘Insurance Contracts’ (the Standard).
The Standard introduces insurance contract measurement principles requiring:
Day one profits should be deferred as a contractual service margin and allocated systematically to profit or loss as entities provide coverage and are released from risk.
Revenue is no longer equal to written premiums but to the change in the contract liability covered by consideration.
A separate measurement model applies to reinsurance contracts held. Modifications are allowed for qualifying short-term contracts and participating contracts.
Increased disclosure requirements apply.
This publication is designed to get you ready for the Standard. It explains the key features of the Standard and provides insights into their application and impact.
IFRS 15 ‘Revenue from Contracts with Customers’ represents the culmination of more than five years of cooperation between the IASB and FASB, and will affect almost every revenue-generating business that applies IFRSs. While achieving convergence has been challenging and sometimes controversial, we believe the new Standard will provide a major boost for investors looking to compare company performance across borders.
IFRS 15 will apply to most revenue arrangements, including constructions contracts. Among other things, it changes the criteria for determining whether revenue is recognised at a point in time or over time. IFRS 15 also has more guidance in areas where current IFRSs are lacking – such as multiple element arrangements, variable pricing, rights of return, warranties and licensing. The actual impact on each company’s top line will depend on their specific customer contracts and how they have applied existing Standards. For some it will be a significant shift, and systems changes will be required, while others may see only minor changes. With IFRS 15 taking effect in 2018, management should begin their impact assessment now.
The IASB has published IFRS 16 'Leases' completing its long-running project on lease accounting.
This special edition of IFRS News explains the key features of the new Standard and provides practical insights into its application and impact.
Following several years of development, the IASB has finished its project to
replace IAS 39 ‘Financial Instruments: Recognition and Measurement’ by
publishing IFRS 9 ‘Financial Instruments (2014)’.
This special edition of IFRS News takes you through the requirements of the
new Standard. It covers all of the individual chapters that make up the Standard
but focuses in particular on the chapters added in July 2014 dealing with:
The IASB has published ‘Investment Entities – Amendments to IFRS 10, IFRS 12 and IAS 27’ (the Amendments). The Amendments introduce an exception for investment entities to the well-established principle that a parent entity must consolidate all its subsidiaries.
The Amendments:
This special edition of IFRS News explains the key features
of the Amendments and provides practical insights into their
application and impact.
The IASB has published IFRS 13 ‘Fair Value Measurement’.
The Standard:
IFRS 13 applies to both financial and non-financial items but does not address or change the requirements on when fair value should be used.
The IASB has published the following five new Standards dealing with group issues and off-balance sheet activity:
This special edition of IFRS News informs you about the new Standards and the implications they may have.
