New or revised pronouncement | When effective | Application at 30 September 2014 to |
1st qtrs | 2nd qtrs | 3rd qtrs | Full yrs |
Deferred Tax: Recovery of Underlying Assets (Amendments to IAS 12)
Amends IAS 12 Income Taxes to provide a presumption that recovery of the carrying amount of an asset measured using the fair value model in IAS 40 Investment Property will, normally, be through sale.
As a result of the amendments, SIC-21 Income Taxes — Recovery of Revalued Non-Depreciable Assets would no longer apply to investment properties carried at fair value. The amendments also incorporate into IAS 12 the remaining guidance previously contained in SIC-21, which is accordingly withdrawn.
Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted
Issued: 20 December 2010 (newsletter)
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Applicable to annual periods beginning on or after 1 January 2013 |
See note 1 below - already adopted in Q1 2011 (July 2014) |
See note 1 below - already adopted in Q1 2014 (April 2014) |
See note 1 below - already adopted in Q1 2014 (January 2014) |
Mandatory |
Disclosures — Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7)
Amends the disclosure requirements in IFRS 7 Financial Instruments: Disclosures to require information about all recognised financial instruments that are set off in accordance with paragraph 42 of IAS 32 Financial Instruments: Presentation.
The amendments also require disclosure of information about recognised financial instruments subject to enforceable master netting arrangements and similar agreements even if they are not set off under IAS 32. The IASB believes that these disclosures will allow financial statement users to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with an entity's recognised financial assets and recognised financial liabilities, on the entity's financial position.
Issued: 16 December 2011 (article, newsletter)
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Applicable to annual periods beginning on or after 1 January 2013 and interim periods within those periods |
See note 1 below - already adopted in Q1 2011 (July 2014) |
See note 1 below - already adopted in Q1 2014 (April 2014) |
See note 1 below - already adopted in Q1 2014 (January 2014) |
Mandatory |
Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32)
Amends IAS 32 Financial Instruments: Presentation to clarify certain aspects because of diversity in application of the requirements on offsetting, focused on four main areas:
- the meaning of 'currently has a legally enforceable right of set-off'
- the application of simultaneous realisation and settlement
- the offsetting of collateral amounts
- the unit of account for applying the offsetting requirements.
Issued: 16 December 2011 (article, newsletter)
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Applicable to annual periods beginning on or after 1 January 2014 |
Mandatory |
Mandatory |
Mandatory |
Optional |
Government Loans (Amendments to IFRS 1)
Amends IFRS 1 First-time Adoption of International Financial Reporting Standards to address how a first-time adopter would account for a government loan with a below-market rate of interest when transitioning to IFRSs. The amendments mirror the requirements for existing IFRS preparers in relation to the application of amendments made to IAS 20 Accounting for Government Grants and Disclosure of Government Assistance in relation to accounting for government loans.
First-time adopters of IFRSs are permitted to apply the requirements in paragraph 10A of IAS 20 only to new loans entered into after the date of transition to IFRSs. The first-time adopter is required to apply IAS 32 Financial Instruments: Presentation to classify the loan as a financial liability or an equity instrument at the transition date. However, if it did not, under its previous GAAP, recognise and measure a government loan at a below-market rate of interest on a basis consistent with IFRS requirements, it would be permitted to apply the previous GAAP carrying amount of the loan at the date of transition as the carrying amount of the loan in the opening IFRS statement of financial position. An entity would then apply IAS 39 or IFRS 9 in measuring the loan after the transition date.
Issued: 13 March 2012 (article, newsletter)
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Applicable to annual periods beginning on or after 1 January 2013 |
See note 1 below - already adopted in Q1 2011 (July 2014) |
See note 1 below - already adopted in Q1 2014 (April 2014) |
See note 1 below - already adopted in Q1 2014 (January 2014) |
[Note 2] |
Annual Improvements 2009-2011 Cycle
Makes amendments to the following standards:
- IFRS 1 — Permit the repeated application of IFRS 1, borrowing costs on certain qualifying assets
- IAS 1 — Clarification of the requirements for comparative information
- IAS 16 — Classification of servicing equipment
- IAS 32 — Clarify that tax effect of a distribution to holders of equity instruments should be accounted for in accordance with IAS 12 Income Taxes
- IAS 34 — Clarify interim reporting of segment information for total assets in order to enhance consistency with the requirements in IFRS 8 Operating Segments
Issued: 17 May 2012 (article, newsletter)
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Applicable to annual periods beginning on or after 1 January 2013 |
See note 1 below - already adopted in Q1 2011 (July 2014) |
See note 1 below - already adopted in Q1 2014 (April 2014) |
See note 1 below - already adopted in Q1 2014 (January 2014) |
Mandatory |
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
Amends IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities to provide additional transition relief in by limiting the requirement to provide adjusted comparative information to only the preceding comparative period. Also, amendments to IFRS 11 and IFRS 12 eliminate the requirement to provide comparative information for periods prior to the immediately preceding period.
As issued by the IASB the amendments have a mandatory effective date of 1 January 2013, or if the standards themselves are adopted earlier the amendments shall be applied for that earlier period. These amendments were endorsed by the EU on 4 April 2013 with a mandatory effective date of accounting periods starting on or after 1 January 2014.
Issued: 28 June 2012 (article, newsletter)
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Applicable to annual periods beginning on or after 1 January 2014. |
Mandatory |
Mandatory |
Mandatory |
Optional |
Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
Amends IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements to:
- provide 'investment entities' (as defined) an exemption from the consolidation of particular subsidiaries and instead require that an investment entity measure the investment in each eligible subsidiary at fair value through profit or loss in accordance with IFRS 9 Financial Instruments or IAS 39 Financial Instruments: Recognition and Measurement
- require additional disclosure about why the entity is considered an investment entity, details of the entity's unconsolidated subsidiaries, and the nature of relationship and certain transactions between the investment entity and its subsidiaries
- require an investment entity to account for its investment in a relevant subsidiary in the same way in its consolidated and separate financial statements (or to only provide separate financial statements if all subsidiaries are unconsolidated).
Issued: 31 October 2012 (article, newsletter)
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Applicable to annual periods beginning on or after 1 January 2014 |
Mandatory |
Mandatory |
Mandatory |
Optional |
Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36)
Amends IAS 36 Impairment of Assets to reduce the circumstances in which the recoverable amount of assets or cash-generating units is required to be disclosed, clarify the disclosures required, and to introduce an explicit requirement to disclose the discount rate used in determining impairment (or reversals) where recoverable amount (based on fair value less costs of disposal) is determined using a present value technique.
Issued: 29 May 2013 (article, newsletter)
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Applicable to annual periods beginning on or after 1 January 2014 |
Mandatory |
Mandatory |
Mandatory |
Optional |
Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39)
Amends IAS 39 Financial Instruments: Recognition and Measurement to make it clear that there is no need to discontinue hedge accounting if a hedging derivative is novated, provided certain criteria are met.
A novation indicates an event where the original parties to a derivative agree that one or more clearing counterparties replace their original counterparty to become the new counterparty to each of the parties. In order to apply the amendments and continue hedge accounting, novation to a central counterparty (CCP) must happen as a consequence of laws or regulations or the introduction of laws or regulations.
Issued: 27 June 2013 (article, newsletter)
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Applicable to annual periods beginning on or after 1 January 2014 |
Mandatory |
Mandatory |
Mandatory |
Optional |
Defined Benefit Plans: Employee Contributions (Amendments to IAS 19)
Amends IAS 19 Employee Benefits to clarify the requirements that relate to how contributions from employees or third parties that are linked to service should be attributed to periods of service. In addition, it permits a practical expedient if the amount of the contributions is independent of the number of years of service, in that contributions, can, but are not required, to be recognised as a reduction in the service cost in the period in which the related service is rendered.
EU endorsement expected Q4 2014.
Issued: 21 November 2013 (article, newsletter)
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Not yet endorsed for use in the EU. IASB effective date is 1 July 2014. |
Annual Improvements 2010-2012 Cycle
Makes amendments to the following standards:
- IFRS 2 — Amends the definitions of 'vesting condition' and 'market condition' and adds definitions for 'performance condition' and 'service condition'
- IFRS 3 — Require contingent consideration that is classified as an asset or a liability to be measured at fair value at each reporting date
- IFRS 8 — Requires disclosure of the judgements made by management in applying the aggregation criteria to operating segments, clarify reconciliations of segment assets only required if segment assets are reported regularly
- IFRS 13 — Clarify that issuing IFRS 13 and amending IFRS 9 and IAS 39 did not remove the ability to measure certain short-term receivables and payables on an undiscounted basis (amends basis for conclusions only)
- IAS 16 and IAS 38 — Clarify that the gross amount of property, plant and equipment is adjusted in a manner consistent with a revaluation of the carrying amount
- IAS 24 — Clarify how payments to entities providing management services are to be disclosed
EU endorsement expected Q4 2014.
Issued: 12 December 2013 (newsletter)
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Not yet endorsed for use in the EU. IASB effective date is 1 July 2014. |
Annual Improvements 2011-2013 Cycle
Makes amendments to the following standards:
- IFRS 1 — Clarify which versions of IFRSs can be used on initial adoption (amends basis for conclusions only)
- IFRS 3 — Clarify that IFRS 3 excludes from its scope the accounting for the formation of a joint arrangement in the financial statements of the joint arrangement itself
- IFRS 13 — Clarify the scope of the portfolio exception in paragraph 52
- IAS 40 — Clarifying the interrelationship of IFRS 3 and IAS 40 when classifying property as investment property or owner-occupied property
Issued: 12 December 2013 (newsletter)
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The amendments are effective in the EU for annual periods beginning on or after 1 January 2015, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 July 2014). |
Optional |
Optional |
Optional |
Optional |
Annual Improvements 2012-2014 Cycle
Makes amendments to the following standards:
- IFRS 5 — Adds specific guidance in IFRS 5 for cases in which an entity reclassifies an asset from held for sale to held for distribution or vice versa and cases in which held-for-distribution accounting is discontinued
- IFRS 7 — Additional guidance to clarify whether a servicing contract is continuing involvement in a transferred asset, and clarification on offsetting disclosures in condensed interim financial statements
- IAS 9 — Clarify that the high quality corporate bonds used in estimating the discount rate for post-employment benefits should be denominated in the same currency as the benefits to be paid
- IAS 34 — Clarify the meaning of 'elsewhere in the interim report' and require a cross-reference
Issued: 25 September 2014 (article, newsletter)
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Applicable to annual periods beginning on or after 1 July 2016. Not yet endorsed for use in the EU. |
Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11)
Amends IFRS 11 Joint Arrangements to require an acquirer of an interest in a joint operation in which the activity constitutes a business (as defined in IFRS 3 Business Combinations) to:
- apply all of the business combinations accounting principles in IFRS 3 and other IFRSs, except for those principles that conflict with the guidance in IFRS 11
- disclose the information required by IFRS 3 and other IFRSs for business combinations.
The amendments apply both to the initial acquisition of an interest in joint operation, and the acquisition of an additional interest in a joint operation (in the latter case, previously held interests are not remeasured).
Note: The amendments apply prospectively to acquisitions of interests in joint operations in which the activities of the joint operations constitute businesses, as defined in IFRS 3, for those acquisitions occurring from the beginning of the first period in which the amendments apply. Amounts recognised for acquisitions of interests in joint operations occurring in prior periods are not adjusted.
Issued: 6 May 2014 (article).
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Applicable to annual periods beginning on or after 1 January 2016 (see note in previous column). Not yet endorsed for use in the EU. |
Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)
Amends IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets to:
- clarify that a depreciation method that is based on revenue that is generated by an activity that includes the use of an asset is not appropriate for property, plant and equipment
- introduce a rebuttable presumption that an amortisation method that is based on the revenue generated by an activity that includes the use of an intangible asset is inappropriate, which can only be overcome in limited circumstances where the intangible asset is expressed as a measure of revenue, or when it can be demonstrated that revenue and the consumption of the economic benefits of the intangible asset are highly correlated
- add guidance that expected future reductions in the selling price of an item that was produced using an asset could indicate the expectation of technological or commercial obsolescence of the asset, which, in turn, might reflect a reduction of the future economic benefits embodied in the asset.
Issued: 12 May 2014 (article)
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Applicable to annual periods beginning on or after 1 January 2016 (IASB effective date). Not yet endorsed for use in the EU. |
Editorial Corrections (various)
The IASB periodically issues Editorial Corrections and changes to IFRSs and other pronouncements. Since the beginning of calendar 2012, such corrections have been made in February 2012, July 2012, March 2013, September 2013, November 2013, March 2014, September 2014 and December 2014.
Note: For details of these editorial corrections, see our IASB editorial corrections page.
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As minor editorial corrections, these changes are effectively immediately applicable under IFRS |
See comment in previous column |
Severe Hyperinflation and Removal of Fixed dates for first time adopters - (Amendments to IFRS 1)
On 20 December 2010, the IASB amended IFRS 1 to:
- provide relief for first-time adopters of IFRSs from having to reconstruct transactions that occurred before their date of transition to IFRSs.
- provide guidance for entities emerging from severe hyperinflation either to resume presenting IFRS financial statements or to present IFRS financial statements for the first time.
Issued: 20 December 2010 (newsletter)
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Applicable to annual periods beginning on or after 1 January 2013 with early application permitted. |
See note 1 below - already adopted in Q1 2014 (July 2014) |
See note 1 below - already adopted in Q1 2014 (April 2014) |
See note 1 below - already adopted in Q1 2014 (January 2014) |
Mandatory |
Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)
The amendments bring bearer plants, which no longer undergo significant biological transformation, into the scope of IAS 16 so that they are accounted for in the same way as property, plant and equipment.
For the purpose of bringing bearer plants from the scope of IAS 41 into the scope of IAS 16 and therefore enabling entities to measure them at cost subsequent to initial recognition or at revaluation, a definition of a 'bearer plant' is introduced into both standards. A bearer plant is defined as "a living plant that:
- is used in the production or supply of agricultural produce;
- is expected to bear produce for more than one period; and
- has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales."
The scope sections of both standards are then amended to clarify that biological assets except for bearer plants are accounted for under IAS 41 while bearer plants are accounted for under IAS 16.
The amendments also clarify that produce growing on bearer plants continues to be accounted for under IAS 41 and that government grants related to bearer plants no longer fall into the scope of IAS 41 but need to be accounted for under IAS 20 Accounting for Government Grants and Disclosure of Government Assistance.
Issued: 30 June 2014 (article)
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Not yet endorsed for use in the EU. The amendments are effective for annual periods beginning on or after 1 January 2016 (IASB effective date). Earlier application is permitted |
Equity Method in Separate Financial Statements (Amendments to IAS 27)
Amends IAS 27 Separate Financial Statements to permit investments in subsidiaries, joint ventures and associates to be optionally accounted for using the equity method in separate financial statements.
Issued: 18 August 2014 (article)
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Applicable to annual periods beginning on or after 1 January 2016. Not yet endorsed for use in the EU. EU endorsement expected Q3 2015. |
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)
Amends IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures (2011) to clarify the treatment of the sale or contribution of assets from an investor to its associate or joint venture, as follows:
- require full recognition in the investor's financial statements of gains and losses arising on the sale or contribution of assets that constitute a business (as defined in IFRS 3 Business Combinations)
- require the partial recognition of gains and losses where the assets do not constitute a business, i.e. a gain or loss is recognised only to the extent of the unrelated investors’ interests in that associate or joint venture.
These requirements apply regardless of the legal form of the transaction, e.g. whether the sale or contribution of assets occurs by an investor transferring shares in an subsidiary that holds the assets (resulting in loss of control of the subsidiary), or by the direct sale of the assets themselves.
Issued: 11 September 2014 (article, newsletter)
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Applicable on a prospective basis to a sale or contribution of assets occurring in annual periods beginning on or after 1 January 2016 (IASB effective date). Not yet endorsed for use in the EU. |
Disclosure Initiative (Amendments to IAS 1)
Amends IAS 1 Presentation of Financial Statements to address perceived impediments to preparers exercising their judgement in presenting their financial reports by making the following changes:
- clarification that information should not be obscured by aggregating or by providing immaterial information, materiality considerations apply to the all parts of the financial statements, and even when a standard requires a specific disclosure, materiality considerations do apply;
- clarification that the list of line items to be presented in these statements can be disaggregated and aggregated as relevant and additional guidance on subtotals in these statements and clarification that an entity's share of OCI of equity-accounted associates and joint ventures should be presented in aggregate as single line items based on whether or not it will subsequently be reclassified to profit or loss;
- additional examples of possible ways of ordering the notes to clarify that understandability and comparability should be considered when determining the order of the notes and to demonstrate that the notes need not be presented in the order so far listed in paragraph 114 of IAS 1.
Issued: 18 December 2014 (article, newsletter).
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Effective for annual periods beginning on or after 1 January 2016. Not yet endorsed for use in the EU.
|
Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)
Amends IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011) to address issues that have arisen in the context of applying the consolidation exception for investment entities by clarifying the following points:
-
The exemption from preparing consolidated financial statements for an intermediate parent entity is available to a parent entity that is a subsidiary of an investment entity, even if the investment entity measures all of its subsidiaries at fair value.
-
A subsidiary that provides services related to the parent's investment activities should not be consolidated if the subsidiary itself is an investment entity.
-
When applying the equity method to an associate or a joint venture, a non-investment entity investor in an investment entity may retain the fair value measurement applied by the associate or joint venture to its interests in subsidiaries.
-
An investment entity measuring all of its subsidiaries at fair value provides the disclosures relating to investment entities required by IFRS 12.
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Effective for annual periods beginning on or after 1 January 2016. Not yet endorsed for use in the EU.
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