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HM Treasury consults on application of IFRS 15 and IFRS 9 for the public sector and amendments to the FReM

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10 Aug 2016

HM Treasury has issued consultations containing proposals for applying International Financial Reporting Standard (IFRS) 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers for the public sector and amendments to the Government Financial Reporting Manual (FReM) to incorporate the two standards.

The consultation on IFRS 9 application covers:

  • classification and measurement;
  • impairment methodology;
  • hedge accounting;
  • transition arrangements;
  • other considerations with implementation such as practical considerations and timetable;
  • presentation and disclosures;
  • whole of government accounts; and
  •  amendments to the FReM. 

The consultation on IFRS 15 application covers:

  •  the five-step model in IFRS 15, considering each in the public sector context;
  • contract costs;
  • transition;
  • other considerations with implementation such as practical considerations and timetable;
  • consolidated fund revenue;
  • whole of government accounts; and
  •  amendments to the FReM. 

HM Treasury proposes to apply both IFRS 9 and IFRS 15 from 1 April 2018 for the public sector.  Comments on the exposure drafts are requested by 30 September 2016.

UPDATE - response to the above exposure drafts have now been published and are below. 

Click for (all links to HM Treasury website):

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