The information below reflects developments to 16 May 2024 and will be updated through to 30 June 2024 to reflect new and revised financial and sustainability reporting requirements that need to be considered for financial reporting periods ending on 31 March 2024. For accounts approved after June 2024, please also refer to subsequent versions of this document for any new and revised IFRS Accounting and Sustainability reporting Standards that have additionally been issued that might require disclosure in the accounts under IAS 8:30. The tables below also cover the sustainability disclosure standards published by the International Sustainability Disclosure Standards Board (ISSB).
The information below is organised as follows:
Summary
Financial reporting considerations related to the Russia-Ukraine War
Below is our usual analysis of new and amended standards, however, we are also aware that many entities will have been impacted by Russia's invasion into Ukraine. Please see our Need to know — Financial reporting considerations related to the Russia-Ukraine War highlighting some of the key issues to be considered by the entities in preparing their financial statements.
The table below provides a summary of the pronouncements which will be mandatorily applied by UK entities for the first time at 31 March 2024, for various quarterly reporting periods. Where a UK entity chooses to prepare financial statements in accordance with IFRS Accounting Standards as issued by the IASB, as well as in compliance with International Accounting Standards as adopted in conformity with the requirements of the Companies Act 2006, that entity should comply with the earlier IASB effective date for those items.
Endorsement of IFRS Accounting Standards by the EU has not applied in the UK since the end of the transition period following the UK’s withdrawal from the EU (31 December 2020). The UK Endorsement Board (UKEB) is responsible for endorsing IFRS Accounting Standards for use in the UK which all UK companies that are required or choose to apply IFRS Accounting Standards must apply. However, because UK endorsed IFRS Accounting Standards have not been granted equivalence to EU endorsed IFRS Accounting Standards by the EU, UK companies that are listed in the EEA may need to state compliance with both EU-endorsed and UK-endorsed IFRS Accounting Standards. Alternatively, they may state compliance with both UK-endorsed IFRS Accounting Standards and IFRS Accounting Standards as issued by the IASB, if this is permitted by the relevant listing authority.
Further information on IFRS Accounting Standards in the UK is available here.
The table below provides a summary of these pronouncements, and which reporting periods they apply to:
| Pronouncement |
IASB/ISSB Effective date* |
EU/UK effective date* |
UK Mandatory at 31 March 2024?
|
| 1st qtrs.** |
2nd qtrs.*** |
3rd qtrs.**** |
Full yrs***** |
|
|
|
|
|
|
|
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IFRS 17 Insurance Contracts
|
1 January 2023 |
1 January 2023 |
Already applied in the prior year (January 2023) |
Mandatory |
Mandatory |
Mandatory |
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
|
1 January 2024 |
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU. |
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU. |
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU. |
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU. |
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU. |
IFRS S2 - Climate-related financial disclosures
|
1 January 2024 |
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU. |
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU. |
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU. |
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU. |
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU. |
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|
|
|
|
|
|
|
| Amendments to IFRS 17 |
1 January 2023 |
1 January 2023 |
Already applied in the prior year (January 2023) |
Mandatory |
Mandatory |
Mandatory |
| Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) |
1 January 2023 |
1 January 2023 |
Already applied in the prior year (January 2023) |
Mandatory |
Mandatory |
Mandatory |
| Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) |
1 January 2023 |
1 January 2023 |
Already applied in the prior year (January 2023) |
Mandatory |
Mandatory |
Mandatory |
| Initial Application of IFRS 17 and IFRS 9 — Comparative Information (Amendment to IFRS 17) |
available on first application of IFRS 17 |
available on first application of IFRS 17 |
Optional |
Optional |
Optional |
Optional |
| Definition of Accounting Estimates (Amendments to IAS 8) |
1 January 2023 |
1 January 2023 |
Already applied in the prior year (January 2023) |
Mandatory |
Mandatory |
Mandatory |
| International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) - application of the exception and disclosure of that fact |
Issued on 23 May 2023 with immediate effect |
Endorsed for use in the UK on 19 July 2023 with retrospective application
|
Mandatory |
Mandatory |
Mandatory |
Mandatory |
| International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) — other disclosure requirements # |
1 January 2023 |
1 January 2023
|
Mandatory |
Mandatory |
Mandatory |
Mandatory |
| Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) |
1 January 2024 |
1 January 2024
|
Mandatory |
Optional
|
Optional |
Optional |
| Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) |
1 January 2024 |
1 January 2024
|
Mandatory |
Optional
|
Optional |
Optional |
| Non-current Liabilities with Covenants (Amendments to IAS 1) |
1 January 2024 |
1 January 2024
|
Mandatory |
Optional
|
Optional |
Optional |
| Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7) |
1 January 2024 |
1 January 2024
|
Mandatory |
Optional
|
Optional |
Optional |
* Generally annual reporting periods beginning on or after the date indicated, may only apply to first-time adopters in some limited cases (see below for full details).
** 1st quarter ending on 31 March 2024 (accounting period began on 1 January 2024).
*** 2nd quarter ending 31 March 2024 (accounting period began 1 October 2023).
**** 3rd quarter ending 31 March 2024 (accounting period began 1 July 2023).
***** 4th quarter ending 31 March 2024 (accounting period began 1 April 2023).
# Whilst the disclosure requirements are effective for accounting periods beginning on or after 1 January 2023, they are not required for any interim period ending on or before 31 December 2023.
More information about these pronouncements, and all new and revised pronouncements, is set out below.
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Financial statement considerations in adopting new and revised pronouncements
Where new and revised pronouncements are applied for the first time, there can be consequential impacts on annual financial statements, including:
- Updates to accounting policies. The terminology and substance of disclosed accounting policies may need to be updated to reflect new recognition, measurement and other requirements, e.g IAS 19 Employee Benefits may impact the measurement of certain employee benefits.
- Impact of transitional provisions. IAS 8 Accounting Policies, Changes in Estimates and Errors contains a general requirement that changes in accounting policies are retrospectively applied, but this does not apply to the extent an individual pronouncement has specific transitional provisions.
- Disclosures about changes in accounting policies. Where an entity changes its accounting policy as a result of the initial application of an IFRS Accounting Standard and it has an effect on the current period or any prior period, IAS 8 requires the disclosure of a number of matters, e.g. the title of the IFRS Accounting Standard, the nature of the change in accounting policy, a description of the transitional provisions, and the amount of the adjustment for each financial statement line item affected
- Third statement of financial position. IAS 1 Presentation of Financial Statements requires the presentation of a third statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statements in a number of situations, including if an entity applies an accounting policy retrospectively and the retrospective application has a material effect on the information in the statement of financial position at the beginning of the preceding period
- Earnings per share (EPS). Where applicable to the entity, IAS 33 Earnings Per Share requires basic and diluted EPS to be adjusted for the impacts of adjustments result from changes in accounting policies accounted for retrospectively and IAS 8 requires the disclosure of the amount of any such adjustments.
Whilst disclosures associated with changes in accounting policies resulting from the initial application of new and revised pronouncements are less in interim financial reports under IAS 34 Interim Financial Reporting, some disclosures are required, e.g. description of the nature and effect of any change in accounting policies and methods of computation.
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New or revised standards
The information below can be used to assist with the disclosure requirements under paragraph 30 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, which requires entities to disclose any new IFRS Accounting Standards that are in issue but not yet effective and which are likely to impact the entity
| New or revised pronouncement |
Effective date |
UK Application at 31 March 2024 to:
|
| 1st qtrs |
2nd qtrs |
3rd qtrs |
Full yrs |
|
IFRS 17 Insurance Contracts
IFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. IFRS 17 supersedes IFRS 4 Insurance Contracts as of 1 January 2021.
Issued: 18 May 2017 (Summary of IFRS 17, Article, Newsletter).
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Applicable to annual reporting periods beginning on or after 1 January 2023. The original effective date of IFRS 17 of 1 January 2021 was amended by Amendments to IFRS 17 issued by the IASB in June 2020.
Endorsed for use in the EU, albeit with an optional exemption from applying the annual cohort requirement. Also endorsed for use in the UK.
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Already applied in the prior year (January 2023)
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Mandatory
|
Mandatory
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Mandatory
|
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IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
IFRS S1 sets out overall requirements for sustainability-related financial disclosures with the
objective to require an entity to disclose information about its sustainability-related risks and opportunities that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the entity.
Issued: June 2023 (article)
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An entity is required to apply IFRS S1 for annual reporting periods beginning on or after 1 January 2024. Earlier application is permitted. If an entity applies IFRS S1 earlier, it is required to disclose that fact and apply IFRS S2 at the same time. A number of transitional reliefs are available as idetailed in the article link.
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU.
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Not yet endorsed for use in the UK. Will not be endorsed for use in the EU.
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Not yet endorsed for use in the UK. Will not be endorsed for use in the EU.
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Not yet endorsed for use in the UK. Will not be endorsed for use in the EU.
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Not yet endorsed for use in the UK. Will not be endorsed for use in the EU.
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IFRS S2 — Climate-related Disclosures
FRS S2 sets out the requirements for identifying, measuring and disclosing information about climate-related risks and opportunities that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the entity
Issued: June 2023 (article)
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An entity is required to apply IFRS S2 for annual reporting periods beginning on or after 1 January 2024. Earlier application is permitted. If an entity applies IFRS S2 earlier, it is required to disclose that fact and apply IFRS S1 at the same time. A number of transitional reliefs are available as idetailed in the article link.
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU.
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Not yet endorsed for use in the UK. Will not be endorsed for use in the EU.
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Not yet endorsed for use in the UK. Will not be endorsed for use in the EU.
|
Not yet endorsed for use in the UK. Will not be endorsed for use in the EU.
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Not yet endorsed for use in the UK. Will not be endorsed for use in the EU.
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IFRS 18 Presentation and Disclosures in Financial Statements
IFRS 18 includes requirements for all entities applying IFRS for the presentation and disclosure of information in financial statements.
Issued: 9 April 2024 (summary of IFRS 18) (Article)
|
Applicable to annual reporting periods beginning on or after 1 January 2027
Not yet endorsed for use in the UK or EU
|
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IFRS 19 Subsidiaries without Public Accountability: Disclosures
IFRS 19 specifies reduced disclosure requirements that an eligible entity is permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards.
Issued: 9 May 2024 (Article)
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Applicable to annual reporting periods beginning on or after 1 January 2027
Not yet endorsed for use in the UK or EU
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Amendments
| New or revised pronouncement |
When effective |
UK Application at 31 March 2024 to: |
| 1st qtrs |
2nd qtrs |
3rd qtrs |
Full yrs |
|
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 and March 2014, September 2014, December 2014, March 2015, April 2015, September 2015, December 2015, March 2016, May 2016, September 2016, December 2016, September 2017, November 2017, December 2018, March 2019, May 2019, December 2019, July 2020, September 2020, October 2020, November 2020, June 2021, October 2021, December 2021, February 2022, July 2022, September 2022, August 2023 and September 2023.
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 |
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Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)
The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current
Issued: 23 January 2020 (article)
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Annual reporting periods beginning on or after 1 January 2024 (see 'Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Amendment to IAS 1)' below). Original effective date 1 January 2022.
.
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Mandatory
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Optional
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Optional
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Optional
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Amendments to IFRS 17
Amends IFRS 17 to address concerns and implementation challenges that were identified after IFRS 17 Insurance Contracts was published in 2017.
The main changes are:
- Deferral of the date of initial application of IFRS 17 by two years to annual periods beginning on or after 1 January 2023
- Additional scope exclusion for credit card contracts and similar contracts that provide insurance coverage as well as optional scope exclusion for loan contracts that transfer significant insurance risk.
- Recognition of insurance acquisition cash flows relating to expected contract renewals, including transition provisions and guidance for insurance acquisition cash flows recognised in a business acquired in a business combination.
- Clarification of the application of IFRS 17 in interim financial statements allowing an accounting policy choice at a reporting entity level.
- Clarification of the application of contractual service margin (CSM) attributable to investment-return service and investment-related service and changes to the corresponding disclosure requirements.
- Extension of the risk mitigation option to include reinsurance contracts held and non-financial derivatives.
- Amendments to require an entity that at initial recognition recognises losses on onerous insurance contracts issued to also recognise a gain on reinsurance contracts held.
- Simplified presentation of insurance contracts in the statement of financial position so that entities would present insurance contract assets and liabilities in the statement of financial position determined using portfolios of insurance contracts rather than groups of insurance contracts.
- Additional transition relief for business combinations and additional transition relief for the date of application of the risk mitigation option and the use of the fair value transition approach.
- Several small amendments regarding minor application issues.
Issued: 25 June 2020 (article)
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The amendment is effective for annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted.
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Already applied in the prior year (January 2023)
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Mandatory
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Mandatory
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Mandatory
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'Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Amendment to IAS 1)'
The amendment defers the effective date of the January 2020 amendments (see above) by one year.
Issued: 15 July 2020 (article)
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The changes in Classification of Liabilities as Current or Non-current — Deferral of Effective Date defer the effective date of Classification of Liabilities as Current or Non-current (Amendments to IAS 1) to annual reporting periods beginning on or after 1 January 2023. Earlier application of the January 2020 amendments continue to be permitted. The effective date has since been amended to 1 January 2024.
.
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Mandatory
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Optional
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Optional
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Optional
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Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
The amendments require that an entity discloses its material accounting policies, instead of its significant accounting policies. Further amendments explain how an entity can identify a material accounting policy. Examples of when an accounting policy is likely to be material are added. To support the amendment, the Board has also developed guidance and examples to explain and demonstrate the application of the ‘four-step materiality process’ described in IFRS Practice Statement 2.
Issued: 12 February 2021 (article)
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Annual reporting periods beginning on or after 1 January 2023. Early application is permitted.
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Already applied in the prior year (January 2023)
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Mandatory
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Mandatory
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Mandatory
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Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations.
The amendments provide an exemption from the initial recognition exemption provided in IAS 12.15(b) and IAS 12.24. Accordingly, the initial recognition exemption does not apply to transactions in which both deductible and taxable temporary differences arise on initial recognition that result in the recognition of equal deferred tax assets and liabilities.
Issued: 7 May 2021 (article)
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Annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted.
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Already applied in the prior year (January 2023)
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Mandatory
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Mandatory
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Mandatory
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Initial Application of IFRS 17 and IFRS 9 — Comparative Information (Amendment to IFRS 17)
The amendment permits entities that first apply IFRS 17 and IFRS 9 at the same time to present comparative information about a financial asset as if the classification and measurement requirements of IFRS 9 had been applied to that financial asset before.
Issued: 9 December 2021 (article)
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An entity that elects to apply the amendment applies it when it first applies IFRS 17
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Optional
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Optional
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Optional
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Optional
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Definition of Accounting Estimates (Amendments to IAS 8)
The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The amendments clarify that a change in accounting estimate that results from new information or new developments is not the correction of an error.
Issued: 12 February 2021 (article)
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Annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted.
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Already applied in the prior year (January 2023)
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Mandatory
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Mandatory
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Mandatory
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| Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
The amendments clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale.
Issued: 22 September 2022 (article)
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Annual reporting periods beginning on or after 1 January 2024, with earlier application permitted.
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Mandatory
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Optional
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Optional
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Optional
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Non-current Liabilities with Covenants (Amendments to IAS 1)
The amendments clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability.
Issued: 31 October 2022 (article)
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Annual reporting periods beginning on or after 1 January 2024. .
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Mandatory
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Optional
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Optional
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Optional
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International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) - application of the exception and disclosure of that fact
The amendments provide a temporary exception to the requirements regarding deferred tax assets and liabilities related to pillar two income taxes.
Issued: 23 May 2023 (article)
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Endorsed for use in the UK on 19 July 2023 with retrospective application
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Mandatory
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Mandatory
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Mandatory
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Mandatory
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International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) - other disclosure requirements
The amendments provide a temporary exception to the requirements regarding deferred tax assets and liabilities related to pillar two income taxes.
Issued: 23 May 2023 (article)
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Disclosure requirements are effective for annual reporting periods beginning on or after 1 January 2023, but not required for any interim period ending on or before 31 December 2023.#
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Mandatory
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Mandatory
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Mandatory
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Mandatory
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Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
The amendments add disclosure requirements, and ‘signposts’ within existing disclosure requirements, that ask entities to provide qualitative and quantitative information about supplier finance arrangements
Issued: 25 May 2023 (article)
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Annual reporting periods beginning on or after 1 January 2024.
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Mandatory
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Optional
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Optional
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Optional
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Lack of Exchangeability (Amendments to IAS 21)
The amendments contain guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not.
Issued: 15 August 2023 (article)
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Annual reporting periods beginning on or after 1 January 2025 with earlier application permitted. Not yet endorsed for use in the EU or the UK.
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| Amendments to the SASB standards to enhance their international applicability
The amendments remove and replace jurisdiction-specific references and definitions in the SASB standards, without substantially altering industries, topics or metrics
Issued: 19 December 2023 (article)
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Annual reporting periods beginning on or after 1 January 2025. Not endorsed for use in the UK. Will not be endorsed for use in the EU
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# Whilst the disclosure requirements are effective for accounting periods beginning on or after 1 January 2023, they are not required for any interim period ending on or before 31 December 2023.