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New and revised pronouncements

New and revised pronouncements as at 31 December 2015

11 Dec 2015

Our popular summary of new and revised financial reporting requirements, updated for financial reporting periods ending on 31 December 2015. This listing can be used to perform a quick check that new financial reporting requirements such as new and revised accounting standards and interpretations, and amendments to standards and interpretations, have been fully considered in the reporting close process. The information below can also 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 IFRSs that are in issue but not yet effective and which are likely to impact the entity.

This table can be used for all annual accounting periods. A 1st quarter ending on 31 December 2015 would mean that the annual reporting period began on 1 October 2015. Similarly, 2nd quarters ending on 31 December 2015 refer to annual periods that began on 1 July 2015, 3rd quarters ending on 31 December 2015 refer to annual periods that began on 1 April 2015, and 4th quarters ending on 31 December 2015 refer to annual periods that began on 1 January 2015.

The information below reflects developments to 29 January 2016 and will be updated through to March 2016 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 31 December 2015.

The information below is organised as follows:

 

Summary

Pronouncements applicable to entities applying IFRSs at the IASB effective dates

The table below provides a summary of the pronouncements which will be mandatorily applied by entities for the first time at 31 December 2015, for various quarterly reporting periods:

PronouncementEffective date*Mandatory at 31 December 2015?
1st qtrs2nd qtrs3rd qtrsFull yrs
AMENDMENTS
Defined Benefit Plans: Employee Contributions (Amendments to IAS 19)
1 July 2014 **# **# Yes# Yes#
Annual Improvements 2010-2012 Cycle
1 July 2014 **# **# Yes# Yes#
Annual Improvements 2011-2013 Cycle
1 July 2014 **# **# Yes# Yes#

* Generally annual periods beginning on or after the date indicated, may only apply to first-time adopters in some limited cases (see the detailed information for each pronouncement below for full details).

** This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

# Refer to the table below for the effective date and application in the European Union (EU).

Pronouncements where the European Union has adopted an mandatory application date later than the IASB

The table below provides a summary of the pronouncements which will be mandatorily applied by entities applying IFRSs as adopted in the European Union (EU) for the first time at 31 December 2015, for various reporting periods. This table does not include pronouncements that have not yet been endorsed for use within the EU.

PronouncementEffective date in the EU*Mandatory in European Union at 31 December 2015?
1st qtrs2nd qtrs3rd qtrsFull yrs
Defined Benefit Plans: Employee Contributions (Amendments to IAS 19)
1 February 2015
(IASB: 1 July 2014)
Yes# Yes# Yes# -#
Annual Improvements 2010-2012 Cycle
1 February 2015
(IASB: 1 July 2014)
Yes# Yes# Yes# -#
Annual Improvements 2011-2013 Cycle
1 January 2015
(IASB: 1 July 2014)
Yes# Yes# Yes# Yes#
IFRIC 21 Levies
17 June 2014
(IASB: 1 January 2014)
**# **# Yes# Yes#

* Generally annual periods beginning on or after the date indicated, may only apply to first-time adopters in some limited cases (see the detailed information for each pronouncement below for full details).

** This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

# This pronouncement has already been applied by entities applying IFRSs as promulgated by the IASB.

% No consequential amendments were made to IAS 34 Interim Financial Reporting on the issuance of IFRS 12 and, as such, the requirements of IFRS 12 do not directly apply to interim financial statements. However, entities should consider whether any details of interests in other entities should be disclosed as part of the general requirement of paragraph 15 of IAS 34 to disclose significant events and transactions in the period.

More information about these pronouncements, and all new and revised pronouncements, is set out below.

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:

  • Impact of transitional provisions. IAS 8 Accounting Policies, Changes in Accounting 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 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, 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.

 

New or revised standards


IFRS 9 Financial Instruments (2009)

IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:

  • Debt instruments meeting both a 'business model' test and a 'cash flow characteristics' test are measured at amortised cost (the use of fair value is optional in some limited circumstances)
  • Investments in equity instruments can be designated as 'fair value through other comprehensive income' with only dividends being recognised in profit or loss
  • All other instruments (including all derivatives) are measured at fair value with changes recognised in the profit or loss
  • The concept of 'embedded derivatives' does not apply to financial assets within the scope of the Standard and the entire instrument must be classified and measured in accordance with the above guidelines.

* IFRS 9 (2014) was issued on 24 July 2014 and supersedes IFRS 9 (2009), but this version of the standard remains available for application if the relevant date of initial application is before 1 February 2015.

Issued: 12 November 2009

Effective date:

No stated effective date (see notes above)
Not yet endorsed for use in the EU.


First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


IFRS 9 Financial Instruments (2010)

A revised version of IFRS 9 incorporating revised requirements for the classification and measurement of financial liabilities, and carrying over the existing derecognition requirements from IAS 39 Financial Instruments: Recognition and Measurement.

The revised financial liability provisions maintain the existing amortised cost measurement basis for most liabilities. New requirements apply where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the portion of the change in fair value related to changes in the entity's own credit risk is presented in other comprehensive income rather than within profit or loss.

* IFRS 9 (2014) was issued on 24 July 2014 and supersedes IFRS 9 (2010), but this version of the standard remains available for application if the relevant date of initial application is before 1 February 2015.

Issued: 28 October 2010

Effective date:

No stated effective date (see notes above)
Not yet endorsed for use in the EU.


First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) (2013)

A revised version of IFRS 9 which:

  • Introduces a new chapter to IFRS 9 on hedge accounting, putting in place a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures
  • Permits an entity to apply only the requirements introduced in IFRS 9 (2010) for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss without applying the other requirements of IFRS 9, meaning the portion of the change in fair value related to changes in the entity's own credit risk can be presented in other comprehensive income rather than within profit or loss
  • Removes the mandatory effective date of IFRS 9 (2013), IFRS 9 (2010) and IFRS 9 (2009), leaving the effective date open pending the finalisation of the impairment and classification and measurement requirements. Notwithstanding the removal of an effective date, each standard remains available for application*.

* IFRS 9 (2014) was issued on 24 July 2014 and supersedes IFRS 9 (2013), but this version of the standard remains available for application if the relevant date of initial application is before 1 February 2015.

Issued: 19 November 2013

Effective date:

No stated effective date (see notes above)
Not yet endorsed for use in the EU.

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


IFRS 9 Financial Instruments (2014)

A finalised version of IFRS 9 which contains accounting requirements for financial instruments, replacing IAS 39 Financial Instruments: Recognition and Measurement. The standard contains requirements in the following areas:

  • Classification and measurement. Financial assets are classified by reference to the business model within which they are held and their contractual cash flow characteristics. The 2014 version of IFRS 9 introduces a 'fair value through other comprehensive income' category for certain debt instruments. Financial liabilities are classified in a similar manner to under IAS 39, however there are differences in the requirements applying to the measurement of an entity's own credit risk.
  • Impairment. The 2014 version of IFRS 9 introduces an 'expected credit loss' model for the measurement of the impairment of financial assets, so it is no longer necessary for a credit event to have occurred before a credit loss is recognised
  • Hedge accounting. Introduces a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures
  • Derecognition. The requirements for the derecognition of financial assets and liabilities are carried forward from IAS 39.

Note: Depending on the chosen approach to applying IFRS 9, the transition can involve one or more than one date of initial application for different requirements.

Note: IFRS 9 (2014) supersedes IFRS 9 (2009), IFRS 9 (2010) and IFRS 9 (2013), but these standards remain available for application if the relevant date of initial application is before 1 February 2015.

Issued: 24 July 2014

Effective date:

Effective for annual periods beginning on or after 1 January 2018
Not yet endorsed for use in the EU.

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


IFRS 14 Regulatory Deferral Accounts

IFRS 14 permits an entity which is a first-time adopter of International Financial Reporting Standards to continue to account, with some limited changes, for 'regulatory deferral account balances' in accordance with its previous GAAP, both on initial adoption of IFRS and in subsequent financial statements.

Note: Entities which are eligible to apply IFRS 14 are not required to do so, and so can chose to apply only the requirements of IFRS 1 First-time Adoption of International Financial Reporting Standards when first applying IFRSs. However, an entity that elects to apply IFRS 14 in its first IFRS financial statements must continue to apply it in subsequent financial statements. IFRS 14 cannot be applied by entities that have already adopted IFRSs.

Issued: 30 January 2014

Effective date:

Applicable to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2016
Will not be endorsed for use in the EU.

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


IFRS 15 Revenue from Contracts with Customers

IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers.

The five steps in the model are as follows:

  • Identify the contract with the customer
  • Identify the performance obligations in the contract
  • Determine the transaction price
  • Allocate the transaction price to the performance obligations in the contracts
  • Recognise revenue when (or as) the entity satisfies a performance obligation.

Guidance is provided on topics such as the point in which revenue is recognised, accounting for variable consideration, costs of fulfilling and obtaining a contract and various related matters. New disclosures about revenue are also introduced.

Issued: 28 May 2014

Effective date:

Applicable to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2018

Not yet endorsed for use in the EU.

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


IFRS 16 Leases

IFRS 16 specifies how an IFRS reporter will recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17.

Issued: 13 January 2016

Effective date:

Applicable to annual reporting periods beginning on or after 1 January 2019

Not yet endorsed for use in the EU.

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


 

 

Amendments


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.

Issued: 21 November 2013

Effective date:

Applicable to annual periods beginning on or after 1 July 2014

First quarters ending 31 December 2015:

[Note 1]

Second quarters ending 31 December 2015:

[Note 1]

Third quarters ending 31 December 2015:

Mandatory

Annual periods ending 31 December 2015:

Mandatory


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

Issued: 12 December 2013

Effective date:

Applicable to annual periods beginning on or after 1 July 2014

First quarters ending 31 December 2015:

[Note 1]

Second quarters ending 31 December 2015:

[Note 1]

Third quarters ending 31 December 2015:

Mandatory

Annual periods ending 31 December 2015:

Mandatory


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

Effective date:

Applicable to annual periods beginning on or after 1 July 2014

First quarters ending 31 December 2015:

[Note 1]

Second quarters ending 31 December 2015:

[Note 1]

Third quarters ending 31 December 2015:

Mandatory

Annual periods ending 31 December 2015:

Mandatory


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

Effective date:

Applicable to annual periods beginning on or after 1 January 2016 (see note above)

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


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

Effective date:

Applicable to annual periods beginning on or after 1 January 2016

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)

Amends IAS 16 Property, Plant and Equipment and IAS 41 Agriculture to:

  • include 'bearer plants' within the scope of IAS 16 rather than IAS 41, allowing such assets to be accounted for a property, plant and equipment and measured after initial recognition on a cost or revaluation basis in accordance with IAS 16
  • introduce a definition of 'bearer plants' 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
  • clarify that produce growing on bearer plants remains within the scope of IAS 41.

Issued: 30 June 2014

Effective date:

Applicable to annual periods beginning on or after 1 January 2016

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


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

Effective date:

Applicable to annual periods beginning on or after 1 January 2016

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


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

Effective date:

Applicable on a prospective basis to a sale or contribution of assets occurring in annual periods beginning on or after 1 January 2016 Effective date deferred indefinitely
EU endorsement currently halted.

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

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

Effective date:

Applicable to annual periods beginning on or after 1 January 2016

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


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

Effective date:

Effective for annual periods beginning on or after 1 January 2016

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


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.

Issued: 18 December 2014

Effective date:

Effective for annual periods beginning on or after 1 January 2016
Not yet endorsed for use in the EU.

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12)

Amends IAS 12 Income Taxes to clarify the following aspects:

  • Unrealised losses on debt instruments measured at fair value and measured at cost for tax purposes give rise to a deductible temporary difference regardless of whether the debt instrument's holder expects to recover the carrying amount of the debt instrument by sale or by use.
  • The carrying amount of an asset does not limit the estimation of probable future taxable profits.
  • Estimates for future taxable profits exclude tax deductions resulting from the reversal of deductible temporary differences.
  • An entity assesses a deferred tax asset in combination with other deferred tax assets. Where tax law restricts the utilisation of tax losses, an entity would assess a deferred tax asset in combination with other deferred tax assets of the same type.

Issued: 19 January 2016

Effective date:

Effective for annual periods beginning on or after 1 January 2017
Not yet endorsed for use in the EU.

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


Disclosure Initiative (Amendments to IAS 7)

Amends IAS 7 Statement of Cash Flowsto clarify that entities shall provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities.

Issued: 29 January 2016

Effective date:

Effective for annual periods beginning on or after 1 January 2017
Not yet endorsed for use in the EU.

First quarters ending 31 December 2015:

Optional

Second quarters ending 31 December 2015:

Optional

Third quarters ending 31 December 2015:

Optional

Annual periods ending 31 December 2015:

Optional


Editorial Corrections (various)

The IASB periodically issues Editorial Corrections and changes to IFRSs and other pronouncements. Since the beginning of calendar 2013, such corrections have been made in March 2013, September 2013, November 2013, March 2014, September 2014, December 2014, March 2015, April 2015, September 2015, and December 2015.

Note: For details of these editorial corrections, see our IASB editorial corrections page.

Effective date:

As minor editorial corrections, these changes are effectively immediately applicable under IFRS


 

Pronouncements where the European Union has adopted a mandatory application date later than the IASB


Entities applying IFRSs as promulgated by the IASB have already applied the standards listed in the table below in previous reporting periods. This table does not include pronouncements that have not yet been endorsed for use within the EU (this includes IFRS 9 and IFRS 15). Note that earlier application of the pronouncements below is permitted in the EU, so EU companies can adopt in accordance with the IASB effective date.



IFRIC 21 Levies

Provides guidance on when to recognise a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain.

The Interpretation identifies the obligating event for the recognition of a liability as the activity that triggers the payment of the levy in accordance with the relevant legislation. It provides the following guidance on recognition of a liability to pay levies:

  • The liability is recognised progressively if the obligating event occurs over a period of time
  • If an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is reached.

Issued: 20 May 2013

Effective date:

Applies to annual periods beginning on or after 17 June 2014 (IASB: 1 January 2014)

First quarters ending 31 December 2015:

[Note 1]

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Second quarters ending 31 December 2015:

[Note 1]

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Third quarters ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Annual periods ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement


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.

Issued: 21 November 2013

Effective date:

Applicable to annual periods beginning on or after 1 February 2015 (IASB: 1 July 2014)

First quarters ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Second quarters ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Third quarters ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Annual periods ending 31 December 2015:

Optional in EU

[Note 3]


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

Issued: 12 December 2013

Effective date:

Applicable to annual periods beginning on or after 1 February 2015 (IASB: 1 July 2014)

First quarters ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Second quarters ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Third quarters ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Annual periods ending 31 December 2015:

Optional in EU

[Note 3]


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

Effective date:

Applicable to annual periods beginning on or after 1 January 2015 (IASB: 1 July 2014)

First quarters ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Second quarters ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Third quarters ending 31 December 2015:

Mandatory in EU

Entities applying IFRSs as promulgated by the IASB are required to apply this pronouncement

Annual periods ending 31 December 2015:

Mandatory in EU

[Note 3]


 

 

New and revised pronouncements as at 30 September 2015

21 Sep 2015

Our popular summary of new and revised financial reporting requirements, updated for financial reporting periods ending on 30 September 2015. This listing can be used to perform a quick check that new financial reporting requirements such as new and revised accounting standards and interpretations, and amendments to standards and interpretations, have been fully considered in the reporting close process. We have highlighted the IASB mandatory adoption dates as well as those dates for which application is mandatory within the EU. Where an EU entity chooses to prepare financial statements in accordance with IFRSs as issued by the IASB, as well as in compliance with IFRSs as adopted by the EU, that entity should comply with the earlier IASB effective date for those items. The information below can also 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 IFRSs that are in issue but not yet effective and which are likely to impact the entity. For accounts approved after December 2015, please also refer to subsequent versions of this document for any new and revised IFRSs that have additionally been issued that might require disclosure in the accounts under IAS 8:30.

The information below reflects developments to 24 December 2015 and will be updated through to December 2015 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 30 September 2015.  For accounts approved after September 2015, please also refer to subsequent versions of this document for any new and revised IFRSs that have additionally been issued that might require disclosure in the accounts under IAS 8:30. 

The information below is organised as follows:

Summary

The table below provides a summary of the pronouncements which will be mandatorily applied by entities for the first time at 30 September 2015, for various quarterly reporting periods.  Where an EU entity chooses to prepare financial statements in accordance with IFRSs as issued by the IASB, as well as in compliance with IFRSs as adopted by the EU, that entity should comply with the earlier IASB effective date for those items. The table below provides a summary of these pronouncements, and which reporting periods they apply to:

PronouncementIASB Effective date*EU effective date*EU Mandatory at 30 September 2015?
1st qtrs.**2nd qtrs.***3rd qtrs.****Full yrs*****
 IFRS 10 Consolidated Financial Statements
1 January 2013
1 January 2014
Already adopted in prior year (July 2014)  Already adopted in prior year (April 2014)  Already adopted in prior year (January 2014)  Yes
 IFRS 11 Joint Arrangements
1 January 2013
 
1 January 2014
 
Already adopted in prior year (July 2014)   Already adopted in prior year (April 2014) Already adopted in prior year (January 2014)  Yes
 IFRS 12 Disclosure of Interests in Other Entities
1 January 2013 
1 January 2014 
Already adopted in prior year (July 2014)   Already adopted in prior year (April 2014) Already adopted in prior year (January 2014)  Yes#
 IAS 27 Separate Financial Statements (2011)
1 January 2013
 
1 January 2014
 
Already adopted in prior year (July 2014)    Already adopted in prior year (April 2014) Already adopted in prior year (January 2014)  Yes
IAS 28 Investments in Associates and Joint Ventures (2011)
 
1 January 2013
 
1 January 2014
Already adopted in prior year (July 2014)    Already adopted in prior year (April 2014) Already adopted in prior year (January 2014)  Yes
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
1 January 2013
1 January 2014
Already adopted in prior year (July 2014)    Already adopted in prior year (April 2014) Already adopted in prior year (January 2014)  Yes
Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32)
1 January 2014
1 January 2014
Already adopted in prior year (July 2014)    Already adopted in prior year (April 2014) Already adopted in prior year (January 2014)  Yes
 Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
1 January 2014
1 January 2014
Already adopted in prior year (July 2014)    Already adopted in prior year (April 2014) Already adopted in prior year (January 2014)  Yes
Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36)
1 January 2014
1 January 2014
Already adopted in prior year (July 2014)       Already adopted in prior year (April 2014) Already adopted in prior year (January 2014)  Yes
Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39)
1 January 2014
1 January 2014
Already adopted in prior year (July 2014)    Already adopted in prior year (April 2014) Already adopted in prior year (January 2014)  Yes
 Defined Benefit Plans: Employee Contributions (Amendments to IAS 19)
1 July 2014 Effective in the EU for annual periods beginning on or after 1 February 2015, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 July 2014). Yes Yes No No
 Annual Improvements 2010-2012 Cycle
1 July 2014^
All amendments are effective in the EU for annual periods beginning on or after 1 February 2015, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 July 2014).
Yes Yes No No
 Annual Improvements 2011-2013 Cycle
1 July 2014
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).
Yes Yes Yes No
INTERPRETATIONS
 IFRIC 21 Levies
1 January 2014 IFRIC 21 was endorsed for use in the EU in June 2014 and is effective for accounting periods beginning on or after 17 June 2014. However earlier application is permitted so companies applying IFRSs as adopted in the EU will be able to adopt it in accordance with the IASB effective date of 1 January 2014. Already adopted in prior year (July 2014)    Yes Yes Yes

* 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 30 September 2015 (accounting period began on 1 July 2015).

*** 2nd quarter ending 30 September 2015 (accounting period began 1 April 2015).

**** 3rd quarter ending 30 September 2015 (accounting period began 1 January 2015).

***** 4th quarter ending 30 September 2015 (accounting period began 1 October 2014).

# No consequential amendments were made to IAS 34 Interim Financial Reporting on the issuance of IFRS 12 and, as such, the requirements of IFRS 12 do not directly apply to interim financial statements. However, entities should consider whether any details of interests in other entities should be disclosed as part of the general requirement of paragraph 15 of IAS 34 to disclose significant events and transactions in the period. 

^ Annual improvements to IFRSs 2010-2012 Cycle issued in December 2013 amended a number of standards. The amendments to IFRS 2 apply prospectively to share-based payment transactions with a grant date on or after 1 July 2014. The amendments to IFRS 3 apply prospectively to business combinations for which the acquisition date is on or after 1 July 2014. All the other amendments have a mandatory effective date of periods beginning on or after 1 July 2014. Earlier application is permitted in all instances (subject to EU endorsement). Where applicable, entities should disclose if certain amendments within the improvements are effective whilst others are not.

More information about these pronouncements, and all new and revised pronouncements, is set out below.

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. IFRS 10 contains a new definition and guidance around when control, IFRS 11 requires joint ventures to be equity accounted rather then accounted for using proportionate consolidation, and 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, e.g. IFRS 10 Consolidated Financial Statements contains specific transitional provisions dealing with making the 'control' assessment, and how to account for situations such as investees that were or were not previously consolidated under superseded pronouncements
  • Disclosures about changes in accounting policies. Where an entity changes its accounting policy as a result of the initial application of an IFRS 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, 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.

 

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 IFRSs that are in issue but not yet effective and which are likely to impact the entity

New or revised pronouncementWhen EU effectiveApplication at 30 September 2015 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRS 9 Financial Instruments (2009)

IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:

  • Debt instruments meeting both a 'business model' test and a 'cash flow characteristics' test are measured at amortised cost (the use of fair value is optional in some limited circumstances)
  • Investments in equity instruments can be designated as 'fair value through other comprehensive income' with only dividends being recognised in profit or loss
  • All other instruments (including all derivatives) are measured at fair value with changes recognised in the profit or loss
  • The concept of 'embedded derivatives' does not apply to financial assets within the scope of the Standard and the entire instrument must be classified and measured in accordance with the above guidelines.

 

* IFRS 9 (2014) was issued on 24 July 2014 and supersedes IFRS 9 (2009), but this version of the standard remains available for application if the relevant date of initial application is before 1 February 2015.

Issued: 12 November 2009 (article, newsletter)

No stated effective date (see notes in prior column).  Not yet endorsed for use in the EU. 

IFRS 9 Financial Instruments (2010)

A revised version of IFRS 9 incorporating revised requirements for the classification and measurement of financial liabilities, and carrying over the existing derecognition requirements from IAS 39 Financial Instruments: Recognition and Measurement.

The revised financial liability provisions maintain the existing amortised cost measurement basis for most liabilities. New requirements apply where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the portion of the change in fair value related to changes in the entity's own credit risk is presented in other comprehensive income rather than within profit or loss.

* IFRS 9 (2014) was issued on 24 July 2014 and supersedes IFRS 9 (2009), but this version of the standard remains available for application if the relevant date of initial application is before 1 February 2015.

Issued: 28 October 2010 (article, newsletter)

No stated effective date (see notes in prior column).  Not yet endorsed for use in the EU. 

IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) (2013)

A revised version of IFRS 9 which:

  • Introduces a new chapter to IFRS 9 on hedge accounting, putting in place a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures
  • Permits an entity to apply only the requirements introduced in IFRS 9 (2010) for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss without applying the other requirements of IFRS 9, meaning the portion of the change in fair value related to changes in the entity's own credit risk can be presented in other comprehensive income rather than within profit or loss
  • Removes the mandatory effective date of IFRS 9 (2013), IFRS 9 (2010) and IFRS 9 (2009), leaving the effective date open pending the finalisation of the impairment and classification and measurement requirements. Notwithstanding the removal of an effective date, each standard remains available for application.

* IFRS 9 (2014) was issued on 24 July 2014 and supersedes IFRS 9 (2009), but this version of the standard remains available for application if the relevant date of initial application is before 1 February 2015.

Issued: 19 November 2013 (article, newsletter)

No stated effective date (see notes in prior column).  Not yet endorsed for use in the EU. 

 IFRS 9 Financial Instruments (2014)

A finalised version of IFRS 9 which contains accounting requirements for financial instruments, replacing IAS 39 Financial Instruments: Recognition and Measurement. The standard contains requirements in the following areas:

  • Classification and measurement. Financial assets are classified by reference to the business model within which they are held and their contractual cash flow characteristics. The 2014 version of IFRS 9 introduces a 'fair value through other comprehensive income' category for certain debt instruments. Financial liabilities are classified in a similar manner to under IAS 39, however there are differences in the requirements applying to the measurement of an entity's own credit risk.
  • Impairment. The 2014 version of IFRS 9 introduces an 'expected credit loss' model for the measurement of the impairment of financial assets, so it is no longer necessary for a credit event to have occurred before a credit loss is recognised
  • Hedge accounting. Introduces a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures
  • Derecognition. The requirements for the derecognition of financial assets and liabilities are carried forward from IAS 39.

Note: Depending on the chosen approach to applying IFRS 9, the transition can involve one or more than one date of initial application for different requirements.

Note: IFRS 9 (2014) supersedes IFRS 9 (2009), IFRS 9 (2010) and IFRS 9 (2013), but these standards remain available for application if the relevant date of initial application is before 1 February 2015.

Issued: 25 July 2014 (Summary of IFRS 9,article, newsletter)

Effective for annual period beginning on or after 1 January 2018.  Not yet endorsed for use in the EU.

IFRS 10 Consolidated Financial Statements

Requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities.

The Standard identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements.

The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in 'special purpose entities'). Under IFRS 10, control is based on whether an investor has:

  • Power over the investee
  • Exposure, or rights, to variable returns from its involvement with the investee, and
  • The ability to use its power over the investee to affect the amount of the returns.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted. Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014 (see note regarding early adoption)
Already adopted in prior year (July 2014)  Already adopted in prior year (April 2014)  Already adopted in prior year (January 2014)  Mandatory

 IFRS 11 Joint Arrangements

Replaces IAS 31 Interests in Joint Ventures. Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement.

Joint arrangements are either joint operations or joint ventures:

  • A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognise their assets, liabilities, revenue and expenses in relation to its interest in a joint operation (including their share of any such items arising jointly)
  • A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with IAS 28 Investments in Associates and Joint Ventures (2011). Unlike IAS 31, the use of 'proportionate consolidation' to account for joint ventures is not permitted.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted. Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

 
Applicable to annual reporting periods beginning on or after 1 January 2014 (see note regarding early adoption)
Already adopted in prior year (July 2014)  Already adopted in prior year (April 2014)  Already adopted in prior year (January 2014)  Mandatory

IFRS 12 Disclosure of Interests in Other Entities

Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows.

In high-level terms, the required disclosures are grouped into the following broad categories:

  • Significant judgements and assumptions - such as how control, joint control, significant influence has been determined
  • Interests in subsidiaries - including details of the structure of the group, risks associated with structured entities, changes in control, and so on
  • Interests in joint arrangements and associates - the nature, extent and financial effects of interests in joint arrangements and associates (including names, details and summarised financial information)
  • Interests in unconsolidated structured entities - information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities

IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the extensive disclosures required.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted. Entities are encouraged to voluntarily provide the information required by IFRS 12 prior to its adoption. Providing some of the disclosures required by IFRS 12 does not compel an entity to comply with all of the requirements of the IFRS or to also apply the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

 
Applicable to annual reporting periods beginning on or after 1 January 2014 (see note regarding early adoption)
Already adopted in prior year (July 2014)  Already adopted in prior year (April 2014)  Already adopted in prior year (January 2014)  Mandatory

 IAS 27 Separate Financial Statements (2011)

Amended version of IAS 27 which now only deals with the requirements for separate financial statements, which have been carried over largely unchanged from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements.

The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with IFRS 9 Financial Instruments / IAS 39 Financial Instruments: Recognition and Measurement.

The Standard also deals with the recognition of dividends, certain group reorganisations and includes a number of disclosure requirements.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted. Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

 
Applicable to annual reporting periods beginning on or after 1 January 2014 (see note regarding early adoption)
Already adopted in prior year (July 2014)  Already adopted in prior year (April 2014)  Already adopted in prior year (January 2014)  Mandatory

IAS 28 Investments in Associates and Joint Ventures (2011)

This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

The Standard defines 'significant influence' and provides guidance on how the equity method of accounting is to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in associates and joint ventures should be tested for impairment.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted. Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements (2011).

Issued: 12 May 2011 (article, newsletter)

 
Applicable to annual reporting periods beginning on or after 1 January 2014 (see note regarding early adoption)
Already adopted in prior year (July 2014)  Already adopted in prior year (April 2014)  Already adopted in prior year (January 2014) Mandatory

IFRS 14 Regulatory Deferral Accounts

IFRS 14 permits an entity which is a first-time adopter of International Financial Reporting Standards to continue to account, with some limited changes, for 'regulatory deferral account balances' in accordance with its previous GAAP, both on initial adoption of IFRS and in subsequent financial statements.

Note: Entities which are eligible to apply IFRS 14 are not required to do so, and so can chose to apply only the requirements of IFRS 1 First-time Adoption of International Financial Reporting Standards when first applying IFRSs. However, an entity that elects to apply IFRS 14 in its first IFRS financial statements must continue to apply it in subsequent financial statements. IFRS 14 cannot be applied by entities that have already adopted IFRSs.

Issued: 30 January 2014 (Summary of IFRS 14, article)

 

Applicable to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2016 IASB effective date is 1 January 2016.  The European Commission has decided not to propose IFRS 14 Regulatory Deferral Accounts for endorsement in the EU because very few European companies would fall within its scope.

IFRS 15 Revenue from Contracts with Customers

IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers.

The five steps in the model are as follows:

  • Identify the contract with the customer
  • Identify the performance obligations in the contract
  • Determine the transaction price
  • Allocate the transaction price to the performance obligations in the contracts
  • Recognise revenue when (or as) the entity satisfies a performance obligation.

Guidance is provided on topics such as the point in which revenue is recognised, accounting for variable consideration, costs of fulfilling and obtaining a contract and various related matters.  New disclosures about revenue are also introduced.

Issued: 28 May 2014 (Summary of IFRS 15, article, newsletter, revenue resources) 

Applicable to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2018.  See related news article. Not yet endorsed for use in the EU.  Endorsement expected Q2 2016. 

 

Amendments

New or revised pronouncementWhen effectiveApplication at 30 September 2015 to
1st qtrs2nd qtrs3rd qtrsFull yrs

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)

Applicable to annual periods beginning on or after 1 January 2014
Already adopted in prior year (July 2014)  Already adopted in prior year (April 2014)  Already adopted in prior year (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)

 
Applicable to annual periods beginning on or after 1 January 2014.
Already adopted in prior year (July 2014)  Already adopted in prior year (April 2014)  Already adopted in prior year (January 2014) Mandatory

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)

 
Applicable to annual periods beginning on or after 1 January 2014
Already adopted in prior year (July 2014) Already adopted in prior year (April 2014)  Already adopted in prior year (January 2014) Mandatory

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)

 
Applicable to annual periods beginning on or after 1 January 2014
Already adopted in prior year (July 2014) Already adopted in prior year (April 2014)  Already adopted in prior year (January 2014) Mandatory

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)

 
Applicable to annual periods beginning on or after 1 January 2014
Already adopted in prior year (July 2014) Already adopted in prior year (April 2014)  Already adopted in prior year (January 2014) Mandatory

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.

Issued: 21 November 2013 (article, newsletter)

Effective in the EU for annual periods beginning on or after 1 February 2015, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 July 2014). Mandatory Mandatory Optional Optional

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

Issued: 12 December 2013 (article, newsletter)

All amendments are effective in the EU for annual periods beginning on or after 1 February 2015, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 July 2014).
Mandatory Mandatory Optional Optional

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 (article, newsletter)

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).
Mandatory Mandatory Mandatory 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)

Applicable to annual periods beginning on or after 1 January 2016.   Optional Optional Optional Optional

 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).

Applicable to annual periods beginning on or after 1 January 2016 (see note in previous column). 

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)

Applicable to annual periods beginning on or after 1 January 2016  Optional Optional Optional Optional

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 and December 2015.

Note: For details of these editorial corrections, see our IASB editorial corrections page.

As minor editorial corrections, these changes are effectively immediately applicable under IFRS See comment in previous column

 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:

  1. is used in the production or supply of agricultural produce;
  2. is expected to bear produce for more than one period; and
  3. 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)

The amendments are effective for annual periods beginning on or after 1 January 2016.  Earlier application is permitted Optional Optional Optional Optional

 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)

Applicable to annual periods beginning on or after 1 January 2016.  

 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)

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).  Effective date deferred indefinitely  EU endorsement currently halted.
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).

Effective for annual periods beginning on or after 1 January 2016.  
 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.
Issued: 18 December 2014 (article, newsletter).
 
Effective for annual periods beginning on or after 1 January 2016.  Not yet endorsed for use in the EU.

 

New and revised Interpretations

New or revised pronouncementWhen effectiveApplication at 30 September 2015 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRIC 21 Levies

Provides guidance on when to recognise a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain.

The Interpretation identifies the obligating event for the recognition of a liability as the activity that triggers the payment of the levy in accordance with the relevant legislation. It provides the following guidance on recognition of a liability to pay levies:

  • The liability is recognised progressively if the obligating event occurs over a period of time
  • If an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is reached.

Issued: 20 May 2013 (article, newsletter)

IFRIC 21 is effective in the EU for annual periods beginning on or after 17 June 2014, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 January 2014). Already adopted in prior year (July 2014)   Mandatory Mandatory Mandatory

 

 

New and revised pronouncements as at 31 December 2014

08 Dec 2014

Our popular summary of new and revised financial reporting requirements, updated for financial reporting periods ending on 31 December 2014. This listing can be used to perform a quick check that all the new financial reporting requirements have been fully considered in the reporting close process. We have highlighted the IASB mandatory adoption dates as well as those dates for which application is mandatory within the EU. Where an EU entity chooses to prepare financial statements in accordance with IFRSs as issued by the IASB, as well as in compliance with IFRSs as adopted by the EU, that entity should comply with the earlier IASB effective date for those items.

The information below reflects developments to 7 January 2015 and will be updated through to March 2015 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 31 December 2014.  The information below can also 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 IFRSs that are in issue but not yet effective and which are likely to impact the entity.

The information below is organised as follows:

Summary

The table below provides a summary of the pronouncements which will be mandatorily applied by entities for the first time at 31 December 2014, for various quarterly reporting periods.  Where an EU entity chooses to prepare financial statements in accordance with IFRSs as issued by the IASB, as well as in compliance with IFRSs as adopted by the EU, that entity should comply with the earlier IASB effective date for those items. The table below provides a summary of these pronouncements, and which reporting periods they apply to:

PronouncementIASB Effective date*EU effective date*EU Mandatory at 31 December 2014?
1st qtrs.**2nd qtrs.***3rd qtrs.****Full yrs*****
NEW OR REVISED STANDARDS
IFRS 10 Consolidated Financial Statements
1 January 2013 1 January 2014 Yes Yes Yes Yes
IFRS 11 Joint Arrangements
1 January 2013 1 January 2014 Yes Yes Yes Yes
IFRS 12 Disclosure of Interests in Other Entities
1 January 2013 1 January 2014 Yes# Yes# Yes# Yes#
IAS 27 Separate Financial Statements (2011)
1 January 2013 1 January 2014 Yes Yes Yes Yes
IAS 28 Investments in Associates and Joint Ventures (2011)
1 January 2013 1 January 2014 Yes Yes Yes Yes
AMENDMENTS
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
1 January 2013 1 January 2014 Yes Yes Yes Yes
 Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32)
1 January 2014 1 January 2014 Yes Yes Yes Yes
 Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
1 January 2014 1 January 2014 Yes Yes Yes Yes
 Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36)
1 January 2014 1 January 2014 Yes Yes Yes Yes
 Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39)
1 January 2014 1 January 2014 Yes Yes Yes Yes
 Defined Benefit Plans: Employee Contributions (Amendments to IAS 19)
1 July 2014 Effective in the EU for annual periods beginning on or after 1 February 2015, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 July 2014). No No No No
 Annual Improvements 2010-2012 Cycle
1 July 2014^
All amendments are effective in the EU for annual periods beginning on or after 1 February 2015, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 July 2014).
No No No No
 Annual Improvements 2011-2013 Cycle
1 July 2014
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).
No No No No
INTERPRETATIONS
 IFRIC 21 Levies
1 January 2014 17 June 2014 Yes% Yes% 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 December 2014 (accounting period began on 1 October 2014).

*** 2nd quarter ending 31 December 2014 (accounting period began 1 July 2014).

**** 3rd quarter ending 31 December 2014 (accounting period began 1 April 2014).

***** 4th quarter ending 31 December 2014 (accounting period began 1 January 2014).

# No consequential amendments were made to IAS 34 Interim Financial Reporting on the issuance of IFRS 12 and, as such, the requirements of IFRS 12 do not directly apply to interim financial statements. However, entities should consider whether any details of interests in other entities should be disclosed as part of the general requirement of paragraph 15 of IAS 34 to disclose significant events and transactions in the period.

% IFRIC 21 was endorsed for use in the EU in June 2014 and is effective for accounting periods beginning on or after 17 June 2014. However earlier application is permitted so companies applying IFRSs as adopted in the EU will be able to adopt it in accordance with the IASB effective date of 1 January 2014.

^ Annual improvements to IFRSs 2010-2012 Cycle issued in December 2013 amended a number of standards. The amendments to IFRS 2 apply prospectively to share-based payment transactions with a grant date on or after 1 July 2014. The amendments to IFRS 3 apply prospectively to business combinations for which the acquisition date is on or after 1 July 2014. All the other amendments have a mandatory effective date of periods beginning on or after 1 July 2014. Earlier application is permitted in all instances (subject to EU endorsement). Where applicable, entities should disclose if certain amendments within the improvements are effective whilst others are not.

More information about these pronouncements, and all new and revised pronouncements, is set out below.

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. IFRS 10 contains a new definition and guidance around when control, IFRS 11 requires joint ventures to be equity accounted rather then accounted for using proportionate consolidation, and 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, e.g. IFRS 10 Consolidated Financial Statements contains specific transitional provisions dealing with making the 'control' assessment, and how to account for situations such as investees that were or were not previously consolidated under superseded pronouncements
  • Disclosures about changes in accounting policies. Where an entity changes its accounting policy as a result of the initial application of an IFRS 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, 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.

 

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 IFRSs that are in issue but not yet effective and which are likely to impact the entity
 
New or revised pronouncementWhen EU effectiveApplication at 31 December 2014 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRS 9 Financial Instruments (2009)

IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:

  • Debt instruments meeting both a 'business model' test and a 'cash flow characteristics' test are measured at amortised cost (the use of fair value is optional in some limited circumstances)
  • Investments in equity instruments can be designated as 'fair value through other comprehensive income' with only dividends being recognised in profit or loss
  • All other instruments (including all derivatives) are measured at fair value with changes recognised in the profit or loss
  • The concept of 'embedded derivatives' does not apply to financial assets within the scope of the Standard and the entire instrument must be classified and measured in accordance with the above guidelines.

 

* IFRS 9 (2014) was issued on 24 July 2014 and supersedes IFRS 9 (2009), but this version of the standard remains available for application if the relevant date of initial application is before 1 February 2015.

Issued: 12 November 2009 (article, newsletter)

No stated effective date (see notes in prior column).  Not yet endorsed for use in the EU. 

IFRS 9 Financial Instruments (2010)

A revised version of IFRS 9 incorporating revised requirements for the classification and measurement of financial liabilities, and carrying over the existing derecognition requirements from IAS 39 Financial Instruments: Recognition and Measurement.

The revised financial liability provisions maintain the existing amortised cost measurement basis for most liabilities. New requirements apply where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the portion of the change in fair value related to changes in the entity's own credit risk is presented in other comprehensive income rather than within profit or loss.

* IFRS 9 (2014) was issued on 24 July 2014 and supersedes IFRS 9 (2009), but this version of the standard remains available for application if the relevant date of initial application is before 1 February 2015.

Issued: 28 October 2010 (article, newsletter)

No stated effective date (see notes in prior column).  Not yet endorsed for use in the EU. 

IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) (2013)

A revised version of IFRS 9 which:

  • Introduces a new chapter to IFRS 9 on hedge accounting, putting in place a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures
  • Permits an entity to apply only the requirements introduced in IFRS 9 (2010) for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss without applying the other requirements of IFRS 9, meaning the portion of the change in fair value related to changes in the entity's own credit risk can be presented in other comprehensive income rather than within profit or loss
  • Removes the mandatory effective date of IFRS 9 (2013), IFRS 9 (2010) and IFRS 9 (2009), leaving the effective date open pending the finalisation of the impairment and classification and measurement requirements. Notwithstanding the removal of an effective date, each standard remains available for application.

* IFRS 9 (2014) was issued on 24 July 2014 and supersedes IFRS 9 (2009), but this version of the standard remains available for application if the relevant date of initial application is before 1 February 2015.

Issued: 19 November 2013 (article, newsletter)

No stated effective date (see notes in prior column).  Not yet endorsed for use in the EU. 

 IFRS 9 Financial Instruments (2014)

A finalised version of IFRS 9 which contains accounting requirements for financial instruments, replacing IAS 39 Financial Instruments: Recognition and Measurement. The standard contains requirements in the following areas:

  • Classification and measurement. Financial assets are classified by reference to the business model within which they are held and their contractual cash flow characteristics. The 2014 version of IFRS 9 introduces a 'fair value through other comprehensive income' category for certain debt instruments. Financial liabilities are classified in a similar manner to under IAS 39, however there are differences in the requirements applying to the measurement of an entity's own credit risk.
  • Impairment. The 2014 version of IFRS 9 introduces an 'expected credit loss' model for the measurement of the impairment of financial assets, so it is no longer necessary for a credit event to have occurred before a credit loss is recognised
  • Hedge accounting. Introduces a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures
  • Derecognition. The requirements for the derecognition of financial assets and liabilities are carried forward from IAS 39.

Note: Depending on the chosen approach to applying IFRS 9, the transition can involve one or more than one date of initial application for different requirements.

Note: IFRS 9 (2014) supersedes IFRS 9 (2009), IFRS 9 (2010) and IFRS 9 (2013), but these standards remain available for application if the relevant date of initial application is before 1 February 2015.

Issued: 25 July 2014 (article, newsletter)

Effective for annual period beginning on or after 1 January 2018.  Not yet endorsed for use in the EU.

IFRS 10 Consolidated Financial Statements

Requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities.

The Standard identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements.

The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in 'special purpose entities'). Under IFRS 10, control is based on whether an investor has:

  • Power over the investee
  • Exposure, or rights, to variable returns from its involvement with the investee, and
  • The ability to use its power over the investee to affect the amount of the returns.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted. Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014 (see note regarding early adoption) Mandatory Mandatory Mandatory Mandatory

IFRS 11 Joint Arrangements

Replaces IAS 31 Interests in Joint Ventures. Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement.

Joint arrangements are either joint operations or joint ventures:

  • A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognise their assets, liabilities, revenue and expenses in relation to its interest in a joint operation (including their share of any such items arising jointly)
  • A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with IAS 28 Investments in Associates and Joint Ventures (2011). Unlike IAS 31, the use of 'proportionate consolidation' to account for joint ventures is not permitted.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted. Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014 (see note regarding early adoption) Mandatory Mandatory Mandatory Mandatory

IFRS 12 Disclosure of Interests in Other Entities

Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows.

In high-level terms, the required disclosures are grouped into the following broad categories:

  • Significant judgements and assumptions - such as how control, joint control, significant influence has been determined
  • Interests in subsidiaries - including details of the structure of the group, risks associated with structured entities, changes in control, and so on
  • Interests in joint arrangements and associates - the nature, extent and financial effects of interests in joint arrangements and associates (including names, details and summarised financial information)
  • Interests in unconsolidated structured entities - information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities

IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the extensive disclosures required.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted. Entities are encouraged to voluntarily provide the information required by IFRS 12 prior to its adoption. Providing some of the disclosures required by IFRS 12 does not compel an entity to comply with all of the requirements of the IFRS or to also apply the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014 (see note regarding early adoption) Mandatory Mandatory Mandatory Mandatory

IFRS 14 Regulatory Deferral Accounts

IFRS 14 permits an entity which is a first-time adopter of International Financial Reporting Standards to continue to account, with some limited changes, for 'regulatory deferral account balances' in accordance with its previous GAAP, both on initial adoption of IFRS and in subsequent financial statements.

Note: Entities which are eligible to apply IFRS 14 are not required to do so, and so can chose to apply only the requirements of IFRS 1 First-time Adoption of International Financial Reporting Standards when first applying IFRSs. However, an entity that elects to apply IFRS 14 in its first IFRS financial statements must continue to apply it in subsequent financial statements. IFRS 14 cannot be applied by entities that have already adopted IFRSs.

Issued: 30 January 2014 (article)

 

Applicable to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2016 Not yet endorsed for use in the EU. IASB effective date is 1 January 2016.

IFRS 15 Revenue from Contracts with Customers

IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers.

The five steps in the model are as follows:

  • Identify the contract with the customer
  • Identify the performance obligations in the contract
  • Determine the transaction price
  • Allocate the transaction price to the performance obligations in the contracts
  • Recognise revenue when (or as) the entity satisfies a performance obligation.

Guidance is provided on topics such as the point in which revenue is recognised, accounting for variable consideration, costs of fulfilling and obtaining a contract and various related matters.  New disclosures about revenue are also introduced.

Issued: 28 May 2014 (article, newsletter, revenue resources) 

Applicable to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2017 Not yet endorsed for use in the EU.  Endorsement expected Q2 2015.  IASB effective date is 1 January 2017.

IAS 27 Separate Financial Statements (2011)

Amended version of IAS 27 which now only deals with the requirements for separate financial statements, which have been carried over largely unchanged from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements.

The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with IFRS 9 Financial Instruments / IAS 39 Financial Instruments: Recognition and Measurement.

The Standard also deals with the recognition of dividends, certain group reorganisations and includes a number of disclosure requirements.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted. Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014 (see note regarding early adoption) Mandatory Mandatory Mandatory Mandatory

IAS 28 Investments in Associates and Joint Ventures (2011)

This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

The Standard defines 'significant influence' and provides guidance on how the equity method of accounting is to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in associates and joint ventures should be tested for impairment.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted. Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014 (see note regarding early adoption) Mandatory Mandatory Mandatory Mandatory

 

Amendments

New or revised pronouncementWhen effectiveApplication at 31 December 2014 to
1st qtrs2nd qtrs3rd qtrsFull yrs

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)

Applicable to annual periods beginning on or after 1 January 2014 Mandatory Mandatory Mandatory 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)

Applicable to annual periods beginning on or after 1 January 2014. Mandatory Mandatory Mandatory Mandatory

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)

Applicable to annual periods beginning on or after 1 January 2014 Mandatory Mandatory Mandatory Mandatory

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)

Applicable to annual periods beginning on or after 1 January 2014 Mandatory Mandatory Mandatory Mandatory

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)

Applicable to annual periods beginning on or after 1 January 2014 Mandatory Mandatory Mandatory Mandatory

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.

Issued: 21 November 2013 (article, newsletter)

Effective in the EU for annual periods beginning on or after 1 February 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 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

Issued: 12 December 2013 (newsletter)

All amendments are effective in the EU for annual periods beginning on or after 1 February 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 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)

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)

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).

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)

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 and March 2014, September 2014, and December 2014.

Note: For details of these editorial corrections, see our IASB editorial corrections page.

As minor editorial corrections, these changes are effectively immediately applicable under IFRS See comment in previous column

 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:

  1. is used in the production or supply of agricultural produce;
  2. is expected to bear produce for more than one period; and
  3. 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)

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)

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)

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).

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.
Issued: 18 December 2014 (article, newsletter).
 
Effective for annual periods beginning on or after 1 January 2016.  Not yet endorsed for use in the EU.

 

New and revised Interpretations

New or revised pronouncementWhen effectiveApplication at 30 September 2014 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRIC 21 Levies

Provides guidance on when to recognise a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain.

The Interpretation identifies the obligating event for the recognition of a liability as the activity that triggers the payment of the levy in accordance with the relevant legislation. It provides the following guidance on recognition of a liability to pay levies:

  • The liability is recognised progressively if the obligating event occurs over a period of time
  • If an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is reached.

Issued: 20 May 2013 (article, newsletter)

IFRIC 21 is effective in the EU for annual periods beginning on or after 17 June 2014, however, earlier application is permitted so EU companies can adopt in accordance with the IASB effective date (1 January 2014). Mandatory Mandatory Optional Optional

 

Notes

Note 1. This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

Note 2. This pronouncement only applies to first-time adopters of IFRSs and must be applied by such entities on a mandatory basis.

Note 3. This pronouncement only applies to first-time adopters of IFRSs and can be optionally applied by such entities.

New and revised pronouncements as at 31 December 2013

30 Jan 2014

Our popular summary of new and revised financial reporting requirements, updated for financial reporting periods ending on 31 December 2013. This listing can be used to perform a quick check that all the new financial reporting requirements have been fully considered in the reporting close process. We have highlighted the IASB mandatory adoption dates as well as those dates for which application is mandatory within the EU. Where an EU entity chooses to prepare financial statements in accordance with IFRSs as issued by the IASB, as well as in compliance with IFRSs as adopted by the EU, that entity should comply with the earlier IASB effective date for those items.

The information reflects developments to 20 February 2014 and will be updated through to March 2014 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 31 December 2013.

The information below is organised as follows:

 

Summary

During 2013, a number of significant new and revised pronouncements will be applied by many entities on a mandatory basis for the first time.  Where an EU entity chooses to prepare financial statements in accordance with IFRSs as issued by the IASB, as well as in compliance with IFRSs as adopted by the EU, that entity should comply with the earlier IASB effective date for those items.  The table below provides a summary of these pronouncements, and which reporting periods they apply to:

PronouncementIASB Effective date*EU effective date*EU Mandatory at 31 December 2013?
1st qtrs.**2nd qtrs.***3rd qtrs.****Full yrs*****
NEW OR REVISED STANDARDS
IFRS 10 Consolidated Financial Statements
1 January 2013 1 January 2014 No No No No
IFRS 11 Joint Arrangements
1 January 2013 1 January 2014 No No No No
IFRS 12 Disclosure of Interests in Other Entities
1 January 2013 1 January 2014 No No No No
IFRS 13 Fair Value Measurement
1 January 2013 1 January 2013 Yes Yes Yes Yes
IAS 19 Employee Benefits
1 January 2013 1 January 2013 Yes Yes Yes Yes
IAS 27 Separate Financial Statements (2011)
1 January 2013 1 January 2014 No No No No
IAS 28 Investments in Associates and Joint Ventures (2011)
1 January 2013 1 January 2014 No No No No
AMENDMENTS
 Deferred Tax: Recovery of Underlying Assets (Amendments to IAS 12)
1 January 2012 1 January 2013 Yes Yes Yes Yes
Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)
1 July 2012 1 July 2012 Yes - already adopted in Q1 2012 (Oct 2012). Yes  - already adopted in Q1 2012 (July 2012). Yes Yes
Disclosures — Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7)
1 January 2013 1 January 2013 Yes Yes Yes Yes
Government Loans (Amendments to IFRS 1)
1 January 2013 1 January 2013 Yes Yes Yes Yes
Annual Improvements 2009-2011 Cycle
1 January 2013 1 January 2013 Yes Yes Yes Yes
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
1 January 2013 1 January 2014 No No No No
 Severe Hyperinflation and Removal of Fixed dates for first time adopters - (Amendments to IFRS 1)
1 July 2011 1 January 2013 Yes Yes Yes Yes
INTERPRETATIONS
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
1 January 2013 1 January 2013 Yes Yes Yes Yes

* 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 December 2013 (accounting period began on 1 October 2013).

*** 2nd quarter ending 31 December 2013 (accounting period began 1 July 2013).

**** 3rd quarter ending 31 December 2013 (accounting period began 1 April 2013).

***** 4th quarter ending 31 December 2013 (accounting period began 1 January 2013).

More information about these pronouncements, and all new and revised pronouncements, is set out below.

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. IFRS 10 contains a new definition and guidance around when control, IFRS 11 requires joint ventures to be equity accounted rather then accounted for using proportionate consolidation, and 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, e.g. IFRS 10 Consolidated Financial Statements contains specific transitional provisions dealing with making the 'control' assessment, and how to account for situations such as investees that were or were not previously consolidated under superseded pronouncements
  • Disclosures about changes in accounting policies. Where an entity changes its accounting policy as a result of the initial application of an IFRS 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, 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.

 

New or revised standards

New or revised pronouncementWhen EU effectiveApplication at 31 December 2013 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRS 9 Financial Instruments (2009)

IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:

  • Debt instruments meeting both a 'business model' test and a 'cash flow characteristics' test are measured at amortised cost (the use of fair value is optional in some limited circumstances)
  • Investments in equity instruments can be designated as 'fair value through other comprehensive income' with only dividends being recognised in profit or loss
  • All other instruments (including all derivatives) are measured at fair value with changes recognised in the profit or loss
  • The concept of 'embedded derivatives' does not apply to financial assets within the scope of the Standard and the entire instrument must be classified and measured in accordance with the above guidelines.

Note: This Standard is superseded by IFRS 9 (2010) and and IFRS 9 (2013), but all standards remain available for application (see IFRS 9 (2013) below for more information regarding the adoption options).

Note: On 16 December 2011, the IASB issued Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7), which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015 (originally 1 January 2013), and modified the relief from restating comparative periods and the associated disclosures in IFRS 7. The release of IFRS 9 (2013) on 19 November 2013 contained consequential amendments which removed the mandatory effective date of IFRS 9 (2009). At its November 2013 meeting, the IASB tentatively decided that the mandatory effective date of IFRS 9 will be no earlier than annual periods beginning on or after 1 January 2017.  The IASB then tentatively decided at its February 2014 meeting to select an effective date of 1 January 2018 as the effective date for mandatory application of IFRS 9.

Issued: 12 November 2009 (article, newsletter)

The IASB tentatively decided at its February 2014 meeting to select an effective date of 1 January 2018 as the effective date for mandatory application of IFRS 9.  Not yet endorsed for use in the EU. 

IFRS 9 Financial Instruments (2010)

A revised version of IFRS 9 incorporating revised requirements for the classification and measurement of financial liabilities, and carrying over the existing derecognition requirements from IAS 39 Financial Instruments: Recognition and Measurement.

The revised financial liability provisions maintain the existing amortised cost measurement basis for most liabilities. New requirements apply where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the portion of the change in fair value related to changes in the entity's own credit risk is presented in other comprehensive income rather than within profit or loss.

Note: This Standard supersedes IFRS 9 (2009) and is superseded by IFRS 9 (2013), but all standards remain available for application (see IFRS 9 below for more information regarding the adoption options).

Note: On 16 December 2011, the IASB issued Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7), which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015 (originally 1 January 2013), and modified the relief from restating comparative periods and the associated disclosures in IFRS 7. The release of IFRS 9 (2013) on 19 November 2013 contained consequential amendments which removed the mandatory effective date of IFRS 9 (2010) and permitted an entity to apply the requirements on the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss without applying the other requirements. At its November 2013 meeting, the IASB tentatively decided that the mandatory effective date of IFRS 9 will be no earlier than annual periods beginning on or after 1 January 2017.  The IASB then tentatively decided at its February 2014 meeting to select an effective date of 1 January 2018 as the effective date for mandatory application of IFRS 9.

Issued: 28 October 2010 (article, newsletter)

The IASB tentatively decided at its February 2014 meeting to select an effective date of 1 January 2018 as the effective date for mandatory application of IFRS 9.  Not yet endorsed for use in the EU. 

IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) (2013)

A revised version of IFRS 9 which:

  • Introduces a new chapter to IFRS 9 on hedge accounting, putting in place a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures
  • Permits an entity to apply only the requirements introduced in IFRS 9 (2010) for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss without applying the other requirements of IFRS 9, meaning the portion of the change in fair value related to changes in the entity's own credit risk can be presented in other comprehensive income rather than within profit or loss
  • Removes the mandatory effective date of IFRS 9 (2013), IFRS 9 (2010) and IFRS 9 (2009), leaving the effective date open pending the finalisation of the impairment and classification and measurement requirements. Notwithstanding the removal of an effective date, each standard remains available for application.

Note: At its November 2013 meeting, the IASB tentatively decided that the mandatory effective date of IFRS 9 will be no earlier than annual periods beginning on or after 1 January 2017.  The IASB then tentatively decided at its February 2014 meeting to select an effective date of 1 January 2018 as the effective date for mandatory application of IFRS 9.

Note: This Standard supersedes IFRS 9 (2009) and IFRS 9 (2010), but these standards remain available for application. The various standards also permit various transitional options. Accordingly, entities can effectively choose which parts of IFRS 9 they apply, meaning they can choose to apply: (1) the classification and measurement requirements for financial assets (2) the classification and measurement requirements for both financial assets and financial liabilities (3) the classification and measurement requirements and the hedge accounting requirements. In addition, entities may choose to apply only the requirements for presenting in other comprehensive income the 'own credit' gains or losses on financial liabilities designated under the fair value option without early applying the other requirements of IFRS 9, and entities can elect to apply the hedge accounting requirements of IAS 39 Financial Instruments: Recognition and Measurement instead of IFRS 9. The IASB has proposed in ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 to remove the choice of which version of IFRS 9 may be applied once the remaining financial instrument projects are finalised.

Issued: 19 November 2013 (article, newsletter)

The IASB tentatively decided at its February 2014 meeting to select an effective date of 1 January 2018 as the effective date for mandatory application of IFRS 9.  Not yet endorsed for use in the EU. 

IFRS 10 Consolidated Financial Statements

Requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities.

The Standard identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements.

The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in 'special purpose entities'). Under IFRS 10, control is based on whether an investor has:

  • Power over the investee
  • Exposure, or rights, to variable returns from its involvement with the investee, and
  • The ability to use its power over the investee to affect the amount of the returns.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted.  Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 11 Joint Arrangements

Replaces IAS 31 Interests in Joint Ventures. Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement.

Joint arrangements are either joint operations or joint ventures:

  • A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognise their assets, liabilities, revenue and expenses in relation to its interest in a joint operation (including their share of any such items arising jointly)
  • A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with IAS 28 Investments in Associates and Joint Ventures (2011). Unlike IAS 31, the use of 'proportionate consolidation' to account for joint ventures is not permitted.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted.  Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 12 Disclosure of Interests in Other Entities

Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows.

In high-level terms, the required disclosures are grouped into the following broad categories:

  • Significant judgements and assumptions - such as how control, joint control, significant influence has been determined
  • Interests in subsidiaries - including details of the structure of the group, risks associated with structured entities, changes in control, and so on
  • Interests in joint arrangements and associates - the nature, extent and financial effects of interests in joint arrangements and associates (including names, details and summarised financial information)
  • Interests in unconsolidated structured entities - information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities

IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the extensive disclosures required.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted.  Entities are encouraged to voluntarily provide the information required by IFRS 12 prior to its adoption. Providing some of the disclosures required by IFRS 12 does not compel an entity to comply with all of the requirements of the IFRS or to also apply the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 13 Fair Value Measurement

Replaces the guidance on fair value measurement in existing IFRS accounting literature with a single standard.

The IFRS is the result of joint efforts by the IASB and FASB to develop a converged fair value framework. The IFRS defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13 does not change the requirements regarding which items should be measured or disclosed at fair value.

IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements). With some exceptions, the standard requires entities to classify these measurements into a 'fair value hierarchy' based on the nature of the inputs:

  • Level 1 - quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
  • Level 2 - inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
  • Level 3 - unobservable inputs for the asset or liability

Entities are required to make various disclosures depending upon the nature of the fair value measurement (e.g. whether it is recognised in the financial statements or merely disclosed) and the level in which it is classified.

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Mandatory Mandatory Mandatory Mandatory

 IFRS 14 Regulatory Deferral Accounts

IFRS 14 permits an entity which is a first-time adopter of International Financial Reporting Standards to continue to account, with some limited changes, for 'regulatory deferral account balances' in accordance with its previous GAAP, both on initial adoption of IFRS and in subsequent financial statements.

Note: Entities which are eligible to apply IFRS 14 are not required to do so, and so can chose to apply only the requirements of IFRS 1 First-time Adoption of International Financial Reporting Standards when first applying IFRSs. However, an entity that elects to apply IFRS 14 in its first IFRS financial statements must continue to apply it in subsequent financial statements. IFRS 14 cannot be applied by entities that have already adopted IFRSs.

Issued: 30 January 2014 (article)

 

Applicable to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2016 Not yet endorsed for use in the EU.  IASB effective date is 1 January 2016.

IAS 19 Employee Benefits (2011)

An amended version of IAS 19 Employee Benefits with revised requirements for pensions and other post-retirement benefits, termination benefits and other changes.

The key amendments include:

  • Requiring the recognition of changes in the net defined benefit liability (asset) including immediate recognition of defined benefit cost, disaggregation of defined benefit cost into components, recognition of remeasurements in other comprehensive income, plan amendments, curtailments and settlements (eliminating the 'corridor approach' permitted by the existing IAS 19)
  • Introducing enhanced disclosures about defined benefit plans
  • Modifying accounting for termination benefits, including distinguishing benefits provided in exchange for service and benefits provided in exchange for the termination of employment and affect the recognition and measurement of termination benefits
  • Clarifying various miscellaneous issues, including the classification of employee benefits, current estimates of mortality rates, tax and administration costs and risk-sharing and conditional indexation features
  • Incorporating other matters submitted to the IFRS Interpretations Committee.

Issued: 16 June 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Mandatory Mandatory Mandatory Mandatory

IAS 27 Separate Financial Statements (2011)

Amended version of IAS 27 which now only deals with the requirements for separate financial statements, which have been carried over largely unchanged from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements.

The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with IFRS 9 Financial Instruments / IAS 39 Financial Instruments: Recognition and Measurement.

The Standard also deals with the recognition of dividends, certain group reorganisations and includes a number of disclosure requirements.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted.  Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014
(see note regarding early adoption)
Optional Optional Optional Optional

IAS 28 Investments in Associates and Joint Ventures (2011)

This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

The Standard defines 'significant influence' and provides guidance on how the equity method of accounting is to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in associates and joint ventures should be tested for impairment.

Note: Although the EU regulation adopting this standard/amendment has set a later effective date for mandatory application, earlier adoption is permitted.  Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements (2011).

Issued: 12 May 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014
(see note regarding early adoption)
Optional Optional Optional Optional

 

Amendments

New or revised pronouncementWhen effectiveApplication at 31 December 2013 to
1st qtrs2nd qtrs3rd qtrsFull 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)

Applicable to annual periods beginning on or after 1 January 2013 Mandatory Mandatory Mandatory Mandatory

 

Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)

Amends IAS 1 Presentation of Financial Statements to revise the way other comprehensive income is presented.

The amendments:

  • Preserve the amendments made to IAS 1 in 2007 to require profit or loss and OCI to be presented together, i.e. either as a single 'statement of profit or loss and comprehensive income', or a separate 'statement of profit or loss' and a 'statement of comprehensive income' – rather than requiring a single continuous statement as was proposed in the exposure draft
  • Require entities to group items presented in OCI based on whether they are potentially reclassifiable to profit or loss subsequently. i.e. those that might be reclassified and those that will not be reclassified
  • Require tax associated with items presented before tax to be shown separately for each of the two groups of OCI items (without changing the option to present items of OCI either before tax or net of tax).

Issued: 16 June 2011 (article, newsletter)

Applicable to annual reporting periods beginning on or after 1 July 2012  [Note 1]  [Note 1] Mandatory 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)

Applicable to annual periods beginning on or after 1 January 2013 and interim periods within those periods Mandatory Mandatory Mandatory 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)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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)

Applicable to annual periods beginning on or after 1 January 2013 [Note 2] [Note 2] [Note 2] [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)

Applicable to annual periods beginning on or after 1 January 2013 Mandatory Mandatory Mandatory 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)

Applicable to annual periods beginning on or after 1 January 2014. Optional Optional Optional 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)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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)

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)

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

EU endorsement expected Q4 2014.

Issued: 12 December 2013 (newsletter)

Not yet endorsed for use in the EU.  IASB effective date is 1 July 2014.

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 and November 2013.

Note: For details of these editorial corrections, see our IASB editorial corrections page.

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

Applicable to annual periods beginning on or after 1 January 2013 with early application permitted. Mandatory Mandatory Mandatory Mandatory

 

New and revised Interpretations

New or revised pronouncementWhen effectiveApplication at 31 December 2013 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

Clarifies the requirements for accounting for stripping costs associated with waste removal in surface mining, including when production stripping costs should be recognised as an asset, how the asset is initially recognised, and subsequent measurement.

The Interpretation requires stripping activity costs which provide improved access to ore are recognised as a non-current 'stripping activity asset' when certain criteria are met. The stripping activity asset is depreciated or amortised on a systematic basis, over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity, using the units of production method unless another method is more appropriate.

Issued: 19 October 2011 (article, newsletter)

Applies to annual periods beginning on or after 1 January 2013 Mandatory Mandatory Mandatory Mandatory

IFRIC 21 Levies

Provides guidance on when to recognise a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain.

The Interpretation identifies the obligating event for the recognition of a liability as the activity that triggers the payment of the levy in accordance with the relevant legislation. It provides the following guidance on recognition of a liability to pay levies:

  • The liability is recognised progressively if the obligating event occurs over a period of time
  • If an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is reached.

EU endorsement expected Q2 2014.

Issued: 20 May 2013 (article, newsletter)

Not yet endorsed for use in the EU.  IASB effective date is 1 January 2014.

 

Notes

Note 1. This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

Note 2. This pronouncement only applies to first-time adopters of IFRSs and must be applied by such entities on a mandatory basis.

Note 3. This pronouncement only applies to first-time adopters of IFRSs and can be optionally applied by such entities.

New and revised pronouncements as at 30 September 2013

21 Nov 2013

Our popular summary of new and revised financial reporting requirements, updated for financial reporting periods ending on 30 September 2013. This listing can be used to perform a quick check that all the new financial reporting requirements have been fully considered in the reporting close process. We have highlighted the IASB mandatory adoption dates as well as those dates for which application is mandatory within the EU. Where an EU entity chooses to prepare financial statements in accordance with IFRSs as issued by the IASB, as well as in compliance with IFRSs as adopted by the EU, that entity should comply with the earlier IASB effective date for those items.

The information reflects developments to 20 December 2013 and will be updated through to December 2013 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 30 September 2013.

The information below is organised as follows:

 

Summary

During 2013, a number of significant new and revised pronouncements will be applied by many entities on a mandatory basis for the first time in the EU.  Where an EU entity chooses to prepare financial statements in accordance with IFRSs as issued by the IASB, as well as in compliance with IFRSs as adopted by the EU, that entity should comply with the earlier IASB effective date for those items.  The table below provides a summary of these pronouncements, and which reporting periods they apply to:

PronouncementIASB Effective date*EU effective date*EU Mandatory at 30 September 2013?
1st qtrs.**2nd qtrs.***3rd qtrs.****Full yrs*****
NEW OR REVISED STANDARDS
IFRS 10 Consolidated Financial Statements
1 January 2013 1 January 2014 No No No -
IFRS 11 Joint Arrangements
1 January 2013 1 January 2014 No No No -
IFRS 12 Disclosure of Interests in Other Entities
1 January 2013 1 January 2014 No No No -
IFRS 13 Fair Value Measurement
1 January 2013 1 January 2013 Yes Yes Yes -
IAS 19 Employee Benefits
1 January 2013 1 January 2013 Yes Yes Yes -
IAS 27 Separate Financial Statements (2011)
1 January 2013 1 January 2014 No No No -
IAS 28 Investments in Associates and Joint Ventures (2011)
1 January 2013 1 January 2014 No No No -
AMENDMENTS
Deferred Tax: Recovery of Underlying Assets (Amendments to IAS 12)
1 January 2012 1 January 2013 Yes Yes Yes -
Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)
1 July 2012 1 July 2012 Yes - already adopted in Q1 2012 (July 2012). Yes Yes Yes
Disclosures — Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7)
1 January 2013 1 January 2013 Yes Yes Yes -
Government Loans (Amendments to IFRS 1)
1 January 2013 1 January 2013 Yes Yes Yes -
Annual Improvements 2009-2011 Cycle
1 January 2013 1 January 2013 Yes Yes Yes -
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
1 January 2013 1 January 2014 No No No -
 Severe Hyperinflation and Removal of Fixed dates for first time adopters - (Amendments to IFRS 1)
1 July 2011 1 January 2013 Yes Yes Yes
INTERPRETATIONS
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
1 January 2013 1 January 2013 Yes Yes Yes -

* 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 30 September 2013 (accounting period began on 1 July 2013).

*** 2nd quarter ending 30 September 2013 (accounting period began 1 April 2013).

**** 3rd quarter ending 30 September 2013 (accounting period began 1 January 2013).

***** 4th quarter ending 30 September 2013 (accounting period began 1 October 2012).

More information about these pronouncements, and all new and revised pronouncements, is set out below.

 

New or revised standards

New or revised pronouncementWhen effectiveApplication at 30 September 2013 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRS 9 Financial Instruments (2009)

IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:

  • Debt instruments meeting both a 'business model' test and a 'cash flow characteristics' test are measured at amortised cost (the use of fair value is optional in some limited circumstances)
  • Investments in equity instruments can be designated as 'fair value through other comprehensive income' with only dividends being recognised in profit or loss
  • All other instruments (including all derivatives) are measured at fair value with changes recognised in the profit or loss
  • The concept of 'embedded derivatives' does not apply to financial assets within the scope of the Standard and the entire instrument must be classified and measured in accordance with the above guidelines.

Note: This Standard is superseded by IFRS 9 (2010) and and IFRS 9 (2013), but all standards remain available for application (see IFRS 9 (2013) below for more information regarding the adoption options).

Note: On 16 December 2011, the IASB issued Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7), which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015 (originally 1 January 2013), and modified the relief from restating comparative periods and the associated disclosures in IFRS 7. The release of IFRS 9 (2013) on 19 November 2013 contained consequential amendments which removed the mandatory effective date of IFRS 9 (2009).

Issued: 12 November 2009 (newsletter)

No stated effective date.  Not yet endorsed for use in the EU. 

IFRS 9 Financial Instruments (2010)

A revised version of IFRS 9 incorporating revised requirements for the classification and measurement of financial liabilities, and carrying over the existing derecognition requirements from IAS 39 Financial Instruments: Recognition and Measurement.

The revised financial liability provisions maintain the existing amortised cost measurement basis for most liabilities. New requirements apply where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the portion of the change in fair value related to changes in the entity's own credit risk is presented in other comprehensive income rather than within profit or loss.

Note: This Standard supersedes IFRS 9 (2009) and is superseded by IFRS 9 (2013), but all standards remain available for application (see IFRS 9 below for more information regarding the adoption options).

Note: On 16 December 2011, the IASB issued Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7), which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015 (originally 1 January 2013), and modified the relief from restating comparative periods and the associated disclosures in IFRS 7. The release of IFRS 9 (2013) on 19 November 2013 contained consequential amendments which removed the mandatory effective date of IFRS 9 (2010) and permitted an entity to apply the requirements on the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss without applying the other requirements.

Issued: 28 October 2010 (newsletter)

No stated effective date.  Not yet endorsed for use in the EU. 

IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) (2013)

A revised version of IFRS 9 which:

  • Introduces a new chapter to IFRS 9 on hedge accounting, putting in place a new hedge accounting model that is designed to be more closely aligned with how entities undertake risk management activities when hedging financial and non-financial risk exposures
  • Permits an entity to apply only the requirements introduced in IFRS 9 (2010) for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss without applying the other requirements of IFRS 9, meaning the portion of the change in fair value related to changes in the entity's own credit risk can be presented in other comprehensive income rather than within profit or loss
  • Removes the mandatory effective date of IFRS 9 (2013), IFRS 9 (2010) and IFRS 9 (2009), leaving the mandatory effective date open pending the finalisation of the impairment and classification and measurement requirements. Notwithstanding the removal of an effective date, each standard remains available for application.

Note: This Standard supersedes IFRS 9 (2009) and IFRS 9 (2010), but these standards remain available for application. The various standards also permit various transitional options. Accordingly, entities can effectively choose which parts of IFRS 9 they apply, meaning they can choose to apply: (1) the classification and measurement requirements for financial assets (2) the classification and measurement requirements for both financial assets and financial liabilities (3) the classification and measurement requirements and the hedge accounting requirements. In addition, entities may choose to apply only the requirements on the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss without applying the other requirements of IFRS 9, and entities can elect to apply the hedge accounting requirements of IAS 39 Financial Instruments: Recognition and Measurement instead of IFRS 9. The IASB has proposed in ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 to remove the choice of which version of IFRS 9 may be applied once the remaining financial instrument projects are finalised.

Issued: 19 November 2013 (newsletter)

No stated effective date.  Not yet endorsed for use in the EU. 

IFRS 10 Consolidated Financial Statements

Requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities.

The Standard identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements.

The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in 'special purpose entities'). Under IFRS 10, control is based on whether an investor has:

  • Power over the investee
  • Exposure, or rights, to variable returns from its involvement with the investee, and
  • The ability to use its power over the investee to affect the amount of the returns.

Note: Although the EU regulation adopting this standard/amendment has set a later effective for mandatory application, earlier adoption is permitted.  Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 11 Joint Arrangements

Replaces IAS 31 Interests in Joint Ventures. Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement.

Joint arrangements are either joint operations or joint ventures:

  • A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognise their assets, liabilities, revenue and expenses in relation to its interest in a joint operation (including their share of any such items arising jointly)
  • A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with IAS 28 Investments in Associates and Joint Ventures (2011). Unlike IAS 31, the use of 'proportionate consolidation' to account for joint ventures is not permitted.

Note: Although the EU regulation adopting this standard/amendment has set a later effective for mandatory application, earlier adoption is permitted.  Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 12 Disclosure of Interests in Other Entities

Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows.

In high-level terms, the required disclosures are grouped into the following broad categories:

  • Significant judgements and assumptions - such as how control, joint control, significant influence has been determined
  • Interests in subsidiaries - including details of the structure of the group, risks associated with structured entities, changes in control, and so on
  • Interests in joint arrangements and associates - the nature, extent and financial effects of interests in joint arrangements and associates (including names, details and summarised financial information)
  • Interests in unconsolidated structured entities - information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities

IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the extensive disclosures required.

Note: Although the EU regulation adopting this standard/amendment has set a later effective for mandatory application, earlier adoption is permitted.  Entities are encouraged to voluntarily provide the information required by IFRS 12 prior to its adoption. Providing some of the disclosures required by IFRS 12 does not compel an entity to comply with all of the requirements of the IFRS or to also apply the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 13 Fair Value Measurement

Replaces the guidance on fair value measurement in existing IFRS accounting literature with a single standard.

The IFRS is the result of joint efforts by the IASB and FASB to develop a converged fair value framework. The IFRS defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13 does not change the requirements regarding which items should be measured or disclosed at fair value.

IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements). With some exceptions, the standard requires entities to classify these measurements into a 'fair value hierarchy' based on the nature of the inputs:

  • Level 1 - quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
  • Level 2 - inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
  • Level 3 - unobservable inputs for the asset or liability

Entities are required to make various disclosures depending upon the nature of the fair value measurement (e.g. whether it is recognised in the financial statements or merely disclosed) and the level in which it is classified.

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Mandatory Mandatory Mandatory Optional

IAS 19 Employee Benefits (2011)

An amended version of IAS 19 Employee Benefits with revised requirements for pensions and other post-retirement benefits, termination benefits and other changes.

The key amendments include:

  • Requiring the recognition of changes in the net defined benefit liability (asset) including immediate recognition of defined benefit cost, disaggregation of defined benefit cost into components, recognition of remeasurements in other comprehensive income, plan amendments, curtailments and settlements (eliminating the 'corridor approach' permitted by the existing IAS 19)
  • Introducing enhanced disclosures about defined benefit plans
  • Modifying accounting for termination benefits, including distinguishing benefits provided in exchange for service and benefits provided in exchange for the termination of employment and affect the recognition and measurement of termination benefits
  • Clarifying various miscellaneous issues, including the classification of employee benefits, current estimates of mortality rates, tax and administration costs and risk-sharing and conditional indexation features
  • Incorporating other matters submitted to the IFRS Interpretations Committee.

Issued: 16 June 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Mandatory Mandatory Mandatory Optional

IAS 27 Separate Financial Statements (2011)

Amended version of IAS 27 which now only deals with the requirements for separate financial statements, which have been carried over largely unchanged from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements.

The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with IFRS 9 Financial Instruments / IAS 39 Financial Instruments: Recognition and Measurement.

The Standard also deals with the recognition of dividends, certain group reorganisations and includes a number of disclosure requirements.

Note: Although the EU regulation adopting this standard/amendment has set a later effective for mandatory application, earlier adoption is permitted.  Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014
(see note regarding early adoption)
Optional Optional Optional Optional

IAS 28 Investments in Associates and Joint Ventures (2011)

This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

The Standard defines 'significant influence' and provides guidance on how the equity method of accounting is to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in associates and joint ventures should be tested for impairment.

Note: Although the EU regulation adopting this standard/amendment has set a later effective for mandatory application, earlier adoption is permitted.  Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2014
(see note regarding early adoption)
Optional Optional Optional Optional

 

Amendments

New or revised pronouncementWhen effectiveApplication at 30 September 2013 to
1st qtrs2nd qtrs3rd qtrsFull 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 for mandatory application, earlier adoption is permitted

Issued: 20 December 2010 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Mandatory Mandatory Mandatory Optional

Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)

Amends IAS 1 Presentation of Financial Statements to revise the way other comprehensive income is presented.

The amendments:

  • Preserve the amendments made to IAS 1 in 2007 to require profit or loss and OCI to be presented together, i.e. either as a single 'statement of profit or loss and comprehensive income', or a separate 'statement of profit or loss' and a 'statement of comprehensive income' – rather than requiring a single continuous statement as was proposed in the exposure draft
  • Require entities to group items presented in OCI based on whether they are potentially reclassifiable to profit or loss subsequently. i.e. those that might be reclassified and those that will not be reclassified
  • Require tax associated with items presented before tax to be shown separately for each of the two groups of OCI items (without changing the option to present items of OCI either before tax or net of tax).

Issued: 16 June 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 July 2012 [Note 1] Mandatory Mandatory 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 and interim periods within those periods Mandatory Mandatory Mandatory Optional

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 [Note 2] [Note 2] [Note 2] [Note 3]

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Mandatory Mandatory Mandatory Optional

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 with earlier application permitted. Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional Optional

 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 Q3 2014.

Issued: 12 December 2013 (newsletter)

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

EU endorsement expected Q3 2014.

Issued: 12 December 2013 (newsletter)

Not yet endorsed for use in the EU.  IASB effective date is 1 July 2014.

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 in Q3 2014.

Issued: 21 November 2013 (newsletter)

Not yet endorsed for use in the EU.  IASB effective date is 1 July 2014..

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 and November 2013.

Note: For details of these editorial corrections, see our IASB editorial corrections page.

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

Applicable to annual periods beginning on or after 1 January 2013 with early application permitted. Mandatory Mandatory Mandatory Optional

 

New and revised Interpretations

New or revised pronouncementWhen effectiveApplication at 30 September 2013 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

Clarifies the requirements for accounting for stripping costs associated with waste removal in surface mining, including when production stripping costs should be recognised as an asset, how the asset is initially recognised, and subsequent measurement.

The Interpretation requires stripping activity costs which provide improved access to ore are recognised as a non-current 'stripping activity asset' when certain criteria are met. The stripping activity asset is depreciated or amortised on a systematic basis, over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity, using the units of production method unless another method is more appropriate.

Issued: 19 October 2011 (newsletter)

Applies to annual periods beginning on or after 1 January 2013 Mandatory Mandatory Mandatory Optional

IFRIC 21 Levies

Provides guidance on when to recognise a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain.

The Interpretation identifies the obligating event for the recognition of a liability as the activity that triggers the payment of the levy in accordance with the relevant legislation. It provides the following guidance on recognition of a liability to pay levies:

  • The liability is recognised progressively if the obligating event occurs over a period of time
  • If an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is reached.

 EU endorsement expected Q2 2014.

Issued: 20 May 2013 (newsletter)

Not yet endorsed for use in the EU.  IASB effective date is 1 January 2014

 

Notes

Note 1. This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

Note 2. This pronouncement only applies to first-time adopters of IFRSs and must be applied by such entities on a mandatory basis.

Note 3. This pronouncement only applies to first-time adopters of IFRSs and can be optionally applied by such entities.

New and revised pronouncements as at 30 June 2013

18 Sep 2013

Our popular summary of new and revised financial reporting requirements, updated for financial reporting periods ending on 30 June 2013. This listing can be used to perform a quick check that all the new financial reporting requirements have been fully considered in the reporting close process.

Editions of this summary for later accounting periods can be found here.

The information reflects developments to 18 September 2013 and will be updated through to September 2013 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 30 June 2013.

The information below is organised as follows:

 

Summary

During 2013, a number of significant new and revised pronouncements will be applied by many entities on a mandatory basis for the first time. The table below provides a summary of these pronouncements, and which reporting periods they apply to:

PronouncementEffective date*Mandatory at 30 June 2013?
1st qtrs2nd qtrs3rd qtrsFull yrs
NEW OR REVISED STANDARDS
IFRS 10 Consolidated Financial Statements
1 January 2013 Yes Yes - -
IFRS 11 Joint Arrangements
1 January 2013 Yes Yes - -
IFRS 12 Disclosure of Interests in Other Entities
1 January 2013 Yes# Yes# - -
IFRS 13 Fair Value Measurement
1 January 2013 Yes Yes - -
IAS 19 Employee Benefits
1 January 2013 Yes Yes - -
IAS 27 Separate Financial Statements (2011)
1 January 2013 Yes Yes - -
IAS 28 Investments in Associates and Joint Ventures (2011)
1 January 2013 Yes Yes - -
AMENDMENTS
Deferred Tax: Recovery of Underlying Assets (Amendments to IAS 12)
1 January 2012 n/a n/a Yes Yes
Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)
1 July 2012 Yes Yes Yes Yes
Disclosures — Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7)
1 January 2013 Yes Yes - -
Government Loans (Amendments to IFRS 1)
1 January 2013 Yes Yes - -
Annual Improvements 2009-2011 Cycle
1 January 2013 Yes Yes - -
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
1 January 2013 Yes Yes - -
INTERPRETATIONS
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
1 January 2013 Yes Yes - -

* 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).

# No consequential amendments were made to IAS 34 on issuance of IFRS 12 and, as such, the requirements of IFRS 12 do not directly apply to interim financial statements. However, entities should consider whether any details of interests in other entities should be disclosed as part of the general requirement of paragraph 15 of IAS 34 to disclose significant events and transactions in the period.

More information about these pronouncements, and all new and revised pronouncements, is set out below.

 

New or revised standards

New or revised pronouncementWhen effectiveApplication at 30 June 2013 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRS 9 Financial Instruments (2009)

IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:

  • Debt instruments meeting both a 'business model' test and a 'cash flow characteristics' test are measured at amortised cost (the use of fair value is optional in some limited circumstances)
  • Investments in equity instruments can be designated as 'fair value through other comprehensive income' with only dividends being recognised in profit or loss
  • All other instruments (including all derivatives) are measured at fair value with changes recognised in the profit or loss
  • The concept of 'embedded derivatives' does not apply to financial assets within the scope of the Standard and the entire instrument must be classified and measured in accordance with the above guidelines.

Note: In October 2010, the IASB reissued IFRS 9 Financial Instruments, including revised requirements for financial liabilities and carrying over the existing derecognition requirements from IAS 39 'Financial Instruments: Recognition and Measurement'. IFRS 9 (2010) supersedes IFRS 9 (2009). However, for annual reporting periods beginning before 1 January 2015, an entity may early adopt IFRS 9 (2009) instead of IFRS 9 (2010). However, the IASB has proposed in ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 to remove the choice of which version of IFRS 9 may be applied early.

Note: On 16 December 2011, the IASB issued Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7), which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.

Issued: 12 November 2009 (newsletter)

Applies on a modified retrospective basis to annual periods beginning on or after 1 January 2015
(see note)
Optional Optional Optional Optional

IFRS 9 Financial Instruments (2010)

A revised version of IFRS 9 incorporating revised requirements for the classification and measurement of financial liabilities, and carrying over the existing derecognition requirements from IAS 39 Financial Instruments: Recognition and Measurement.

The revised financial liability provisions maintain the existing amortised cost measurement basis for most liabilities. New requirements apply where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the portion of the change in fair value related to changes in the entity's own credit risk is presented in other comprehensive income rather than within profit or loss.

Note: This Standard supersedes IFRS 9 (2009). However, for annual reporting periods beginning before 1 January 2015, an entity may early adopt IFRS 9 (2009) instead of applying this Standard. However, the IASB has proposed in ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 to remove the choice of which version of IFRS 9 may be applied early.

Note: On 16 December 2011, the IASB issued Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7), which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.

Issued: 28 October 2010 (newsletter)

Applies to annual periods beginning on or after 1 January 2015
(see note)
Optional Optional Optional Optional

IFRS 10 Consolidated Financial Statements

Requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities.

The Standard identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements.

The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in 'special purpose entities'). Under IFRS 10, control is based on whether an investor has:

  • Power over the investee
  • Exposure, or rights, to variable returns from its involvement with the investee, and
  • The ability to use its power over the investee to affect the amount of the returns.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Mandatory Mandatory Optional Optional

IFRS 11 Joint Arrangements

Replaces IAS 31 Interests in Joint Ventures. Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement.

Joint arrangements are either joint operations or joint ventures:

  • A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognise their assets, liabilities, revenue and expenses in relation to its interest in a joint operation (including their share of any such items arising jointly)
  • A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with IAS 28 Investments in Associates and Joint Ventures (2011). Unlike IAS 31, the use of 'proportionate consolidation' to account for joint ventures is not permitted.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Mandatory Mandatory Optional Optional

IFRS 12 Disclosure of Interests in Other Entities

Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows.

In high-level terms, the required disclosures are grouped into the following broad categories:

  • Significant judgements and assumptions - such as how control, joint control, significant influence has been determined
  • Interests in subsidiaries - including details of the structure of the group, risks associated with structured entities, changes in control, and so on
  • Interests in joint arrangements and associates - the nature, extent and financial effects of interests in joint arrangements and associates (including names, details and summarised financial information)
  • Interests in unconsolidated structured entities - information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities

IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the extensive disclosures required.

Note: Entities are encouraged to voluntarily provide the information required by IFRS 12 prior to its adoption. Providing some of the disclosures required by IFRS 12 does not compel an entity to comply with all of the requirements of the IFRS or to also apply the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

# No consequential amendments were made to IAS 34 on issuance of IFRS 12 and, as such, the requirements of IFRS 12 do not directly apply to interim financial statements. However, entities should consider whether any details of interests in other entities should be disclosed as part of the general requirement of paragraph 15 of IAS 34 to disclose significant events and transactions in the period.

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Mandatory# Mandatory# Optional Optional

IFRS 13 Fair Value Measurement

Replaces the guidance on fair value measurement in existing IFRS accounting literature with a single standard.

The IFRS is the result of joint efforts by the IASB and FASB to develop a converged fair value framework. The IFRS defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13 does not change the requirements regarding which items should be measured or disclosed at fair value.

IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements). With some exceptions, the standard requires entities to classify these measurements into a 'fair value hierarchy' based on the nature of the inputs:

  • Level 1 - quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
  • Level 2 - inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
  • Level 3 - unobservable inputs for the asset or liability

Entities are required to make various disclosures depending upon the nature of the fair value measurement (e.g. whether it is recognised in the financial statements or merely disclosed) and the level in which it is classified.

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Mandatory Mandatory Optional Optional

IAS 19 Employee Benefits (2011)

An amended version of IAS 19 Employee Benefits with revised requirements for pensions and other post-retirement benefits, termination benefits and other changes.

The key amendments include:

  • Requiring the recognition of changes in the net defined benefit liability (asset) including immediate recognition of defined benefit cost, disaggregation of defined benefit cost into components, recognition of remeasurements in other comprehensive income, plan amendments, curtailments and settlements (eliminating the 'corridor approach' permitted by the existing IAS 19)
  • Introducing enhanced disclosures about defined benefit plans
  • Modifying accounting for termination benefits, including distinguishing benefits provided in exchange for service and benefits provided in exchange for the termination of employment and affect the recognition and measurement of termination benefits
  • Clarifying various miscellaneous issues, including the classification of employee benefits, current estimates of mortality rates, tax and administration costs and risk-sharing and conditional indexation features
  • Incorporating other matters submitted to the IFRS Interpretations Committee.

Issued: 16 June 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Mandatory Mandatory Optional Optional

IAS 27 Separate Financial Statements (2011)

Amended version of IAS 27 which now only deals with the requirements for separate financial statements, which have been carried over largely unchanged from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements.

The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with IFRS 9 Financial Instruments / IAS 39 Financial Instruments: Recognition and Measurement.

The Standard also deals with the recognition of dividends, certain group reorganisations and includes a number of disclosure requirements.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Mandatory Mandatory Optional Optional

IAS 28 Investments in Associates and Joint Ventures (2011)

This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

The Standard defines 'significant influence' and provides guidance on how the equity method of accounting is to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in associates and joint ventures should be tested for impairment.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Mandatory Mandatory Optional Optional

 

Amendments

New or revised pronouncementWhen effectiveApplication at 30 June 2013 to
1st qtrs2nd qtrs3rd qtrsFull 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.

Issued: 20 December 2010 (newsletter)

Applicable to annual periods beginning on or after 1 January 2012 [Note 1] [Note 1] Mandatory Mandatory

Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)

Amends IAS 1 Presentation of Financial Statements to revise the way other comprehensive income is presented.

The amendments:

  • Preserve the amendments made to IAS 1 in 2007 to require profit or loss and OCI to be presented together, i.e. either as a single 'statement of profit or loss and comprehensive income', or a separate 'statement of profit or loss' and a 'statement of comprehensive income' – rather than requiring a single continuous statement as was proposed in the exposure draft
  • Require entities to group items presented in OCI based on whether they are potentially reclassifiable to profit or loss subsequently. i.e. those that might be reclassified and those that will not be reclassified
  • Require tax associated with items presented before tax to be shown separately for each of the two groups of OCI items (without changing the option to present items of OCI either before tax or net of tax).

Issued: 16 June 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 July 2012 Mandatory Mandatory Mandatory 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 and interim periods within those periods Mandatory Mandatory Optional Optional

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 [Note 2] [Note 2] [Note 3] [Note 3]

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Mandatory Mandatory Optional Optional

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.

Issued: 28 June 2012 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Mandatory Mandatory Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional Optional

Novation of Derivatives and Continuation of Hedge Accounting' (Amendments to IAS 39)

Amends IAS 39 Financial Instruments: Recognition and Measurement 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional Optional

Editorial Corrections (various)

The IASB periodically issues Editorial Corrections and changes to IFRSs and other pronouncements. Since January 2011, such corrections have been made in February 2011, March 2011, April 2011, May 2011, June 2011 (revised October 2011), November 2011, February 2012, July 2012, March 2013 and September 2013.

Note: For details of these editorial corrections, see our IASB editorial corrections page.

As minor editorial corrections, these changes are effectively immediately applicable under IFRS See comment in previous column

 

New and revised Interpretations

New or revised pronouncementWhen effectiveApplication at 30 June 2013 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

Clarifies the requirements for accounting for stripping costs associated with waste removal in surface mining, including when production stripping costs should be recognised as an asset, how the asset is initially recognised, and subsequent measurement.

The Interpretation requires stripping activity costs which provide improved access to ore are recognised as a non-current 'stripping activity asset' when certain criteria are met. The stripping activity asset is depreciated or amortised on a systematic basis, over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity, using the units of production method unless another method is more appropriate.

Issued: 19 October 2011 (newsletter)

Applies to annual periods beginning on or after 1 January 2013 Mandatory Mandatory Optional Optional

IFRIC 21 Levies

Provides guidance on when to recognise a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain.

The Interpretation identifies the obligating event for the recognition of a liability as the activity that triggers the payment of the levy in accordance with the relevant legislation. It provides the following guidance on recognition of a liability to pay levies:

  • The liability is recognised progressively if the obligating event occurs over a period of time
  • If an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is reached.

 

Issued: 20 May 2013 (newsletter)

Applies to annual periods beginning on or after 1 January 2014 Optional Optional Optional Optional

 

Notes

Note 1. This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

Note 2. This pronouncement only applies to first-time adopters of IFRSs and must be applied by such entities on a mandatory basis.

Note 3. This pronouncement only applies to first-time adopters of IFRSs and can be optionally applied by such entities.

New and revised pronouncements as at 31 March 2013

26 Jun 2013

The information on this page provides a high level overview of new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 31 March 2013. This listing can be used to perform a quick check that all the new financial reporting requirements have been fully considered in the reporting close process.

The information below is organised as follows:

The information reflects developments to 27 June 2013 and will be updated through to June 2013 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 31 March 2013.

 

The March 2013 reporting period represents the first period in which a number of significant new and revised pronouncements will be applied by entities on a mandatory basis. Specifically, entities with annual reporting periods ending on 31 December 2013 will be required to apply many pronouncements for the first time in preparing first quarter interim reports for the three months ending 31 March 2013. These pronouncements include:

  • the 'suite of five' standards on consolidation, joint arrangements and disclosures (IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011))
  • the new standard on fair value measurement (IFRS 13 Fair Value Measurement)
  • revised requirements for pensions and other post-retirement benefits, termination benefits and other changes (IAS 19 Employee Benefits (2011))
  • a new Interpretation, IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine.

More information about these pronouncements, and all new and revised pronouncements, is set out below.

 

New or revised standards

New or revised pronouncementWhen effectiveApplication at 31 March 2013 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IAS 27 Separate Financial Statements (2011)

Amended version of IAS 27 which now only deals with the requirements for separate financial statements, which have been carried over largely unchanged from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements.

The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with IFRS 9 Financial Instruments / IAS 39 Financial Instruments: Recognition and Measurement.

The Standard also deals with the recognition of dividends, certain group reorganisations and includes a number of disclosure requirements.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Mandatory Optional Optional Optional

IAS 28 Investments in Associates and Joint Ventures (2011)

This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

The Standard defines 'significant influence' and provides guidance on how the equity method of accounting is to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in associates and joint ventures should be tested for impairment.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial Statements (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Mandatory Optional Optional Optional

IFRS 9 Financial Instruments (2009)

IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:

  • Debt instruments meeting both a 'business model' test and a 'cash flow characteristics' test are measured at amortised cost (the use of fair value is optional in some limited circumstances)
  • Investments in equity instruments can be designated as 'fair value through other comprehensive income' with only dividends being recognised in profit or loss
  • All other instruments (including all derivatives) are measured at fair value with changes recognised in the profit or loss
  • The concept of 'embedded derivatives' does not apply to financial assets within the scope of the Standard and the entire instrument must be classified and measured in accordance with the above guidelines.

Note: In October 2010, the IASB reissued IFRS 9 Financial Instruments, including revised requirements for financial liabilities and carrying over the existing derecognition requirements from IAS 39 'Financial Instruments: Recognition and Measurement'. IFRS 9 (2010) supersedes IFRS 9 (2009). However, for annual reporting periods beginning before 1 January 2015, an entity may early adopt IFRS 9 (2009) instead of IFRS 9 (2010). However, the IASB has proposed in ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 to remove the choice of which version of IFRS 9 may be applied early.

Note: On 16 December 2011, the IASB issued Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7), which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.

Issued: 12 November 2009 (newsletter)

Applies on a modified retrospective basis to annual periods beginning on or after 1 January 2015
(see note)
Optional Optional Optional Optional

IFRS 9 Financial Instruments (2010)

A revised version of IFRS 9 incorporating revised requirements for the classification and measurement of financial liabilities, and carrying over the existing derecognition requirements from IAS 39 Financial Instruments: Recognition and Measurement.

The revised financial liability provisions maintain the existing amortised cost measurement basis for most liabilities. New requirements apply where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the portion of the change in fair value related to changes in the entity's own credit risk is presented in other comprehensive income rather than within profit or loss.

Note: This Standard supersedes IFRS 9 (2009). However, for annual reporting periods beginning before 1 January 2015, an entity may early adopt IFRS 9 (2009) instead of applying this Standard. However, the IASB has proposed in ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 to remove the choice of which version of IFRS 9 may be applied early.

Note: On 16 December 2011, the IASB issued Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7), which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.

Issued: 28 October 2010 (newsletter)

Applies to annual periods beginning on or after 1 January 2015
(see note)
Optional Optional Optional Optional

IFRS 10 Consolidated Financial Statements

Requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities.

The Standard identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements.

The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in 'special purpose entities'). Under IFRS 10, control is based on whether an investor has:

  • Power over the investee
  • Exposure, or rights, to variable returns from its involvement with the investee, and
  • The ability to use its power over the investee to affect the amount of the returns.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Mandatory Optional Optional Optional

IFRS 11 Joint Arrangements

Replaces IAS 31 Interests in Joint Ventures. Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement.

Joint arrangements are either joint operations or joint ventures:

  • A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognise their assets, liabilities, revenue and expenses in relation to its interest in a joint operation (including their share of any such items arising jointly)
  • A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with IAS 28 Investments in Associates and Joint Ventures (2011). Unlike IAS 31, the use of 'proportionate consolidation' to account for joint ventures is not permitted.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Mandatory Optional Optional Optional

IFRS 12 Disclosure of Interests in Other Entities

Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows.

In high-level terms, the required disclosures are grouped into the following broad categories:

  • Significant judgements and assumptions - such as how control, joint control, significant influence has been determined
  • Interests in subsidiaries - including details of the structure of the group, risks associated with structured entities, changes in control, and so on
  • Interests in joint arrangements and associates - the nature, extent and financial effects of interests in joint arrangements and associates (including names, details and summarised financial information)
  • Interests in unconsolidated structured entities - information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities

IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the extensive disclosures required.

Note: Entities are encouraged to voluntarily provide the information required by IFRS 12 prior to its adoption. Providing some of the disclosures required by IFRS 12 does not compel an entity to comply with all of the requirements of the IFRS or to also apply the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IAS 27 Separate Financial Statements (2011) and IAS 28 Investments in Associates and Joint Ventures (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Mandatory Optional Optional Optional

IFRS 13 Fair Value Measurement

Replaces the guidance on fair value measurement in existing IFRS accounting literature with a single standard.

The IFRS is the result of joint efforts by the IASB and FASB to develop a converged fair value framework. The IFRS defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13 does not change the requirements regarding which items should be measured or disclosed at fair value.

IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements). With some exceptions, the standard requires entities to classify these measurements into a 'fair value hierarchy' based on the nature of the inputs:

  • Level 1 - quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
  • Level 2 - inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
  • Level 3 - unobservable inputs for the asset or liability

Entities are required to make various disclosures depending upon the nature of the fair value measurement (e.g. whether it is recognised in the financial statements or merely disclosed) and the level in which it is classified.

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Mandatory Optional Optional Optional

 

Amendments

New or revised pronouncementWhen effectiveApplication at 31 March 2013 to
1st qtrs2nd qtrs3rd qtrsFull yrs

Amendments to IFRS 7 Financial Instruments: Disclosures

Makes amendments to IFRS 7 Financial Instruments: Disclosures resulting from the IASB's comprehensive review of off balance sheet activities.

The amendments introduce additional disclosures, designed to allow users of financial statements to improve their understanding of transfer transactions of financial assets (for example, securitisations), including understanding the possible effects of any risks that may remain with the entity that transferred the assets. The amendments also require additional disclosures if a disproportionate amount of transfer transactions are undertaken around the end of a reporting period.

Note: In the first year of application, comparative information is not required.

Issued: 7 October 2010 (newsletter)

Applies to annual periods beginning on or after 1 July 2011 [Note 1] [Note 1] [Note 1] Mandatory

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.

Issued: 20 December 2010 (newsletter)

Applicable to annual periods beginning on or after 1 January 2012 [Note 1] Mandatory Mandatory Mandatory

Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to IFRS 1)

Amends IFRS 1 First-time Adoption of International Financial Reporting Standards to:

  • Replace references to a fixed date of '1 January 2004' with 'the date of transition to IFRSs', thus eliminating the need for companies adopting IFRSs for the first time to restate derecognition transactions that occurred before the date of transition to IFRSs
  • Provide guidance on how an entity should resume presenting financial statements in accordance with IFRSs after a period when the entity was unable to comply with IFRSs because its functional currency was subject to severe hyperinflation.

Issued: 20 December 2010 (newsletter on hyperinflation, newsletter on fixed dates)

Applicable to annual periods beginning on or after 1 July 2011 [Note 1] [Note 1] [Note 1] [Note 2]

IAS 19 Employee Benefits (2011)

An amended version of IAS 19 Employee Benefits with revised requirements for pensions and other post-retirement benefits, termination benefits and other changes.

The key amendments include:

  • Requiring the recognition of changes in the net defined benefit liability (asset) including immediate recognition of defined benefit cost, disaggregation of defined benefit cost into components, recognition of remeasurements in other comprehensive income, plan amendments, curtailments and settlements (eliminating the 'corridor approach' permitted by the existing IAS 19)
  • Introducing enhanced disclosures about defined benefit plans
  • Modifying accounting for termination benefits, including distinguishing benefits provided in exchange for service and benefits provided in exchange for the termination of employment and affect the recognition and measurement of termination benefits
  • Clarifying various miscellaneous issues, including the classification of employee benefits, current estimates of mortality rates, tax and administration costs and risk-sharing and conditional indexation features
  • Incorporating other matters submitted to the IFRS Interpretations Committee.

Issued: 16 June 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Mandatory Optional Optional Optional

Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)

Amends IAS 1 Presentation of Financial Statements to revise the way other comprehensive income is presented.

The amendments:

  • Preserve the amendments made to IAS 1 in 2007 to require profit or loss and OCI to be presented together, i.e. either as a single 'statement of profit or loss and comprehensive income', or a separate 'statement of profit or loss' and a 'statement of comprehensive income' – rather than requiring a single continuous statement as was proposed in the exposure draft
  • Require entities to group items presented in OCI based on whether they are potentially reclassifiable to profit or loss subsequently. i.e. those that might be reclassified and those that will not be reclassified
  • Require tax associated with items presented before tax to be shown separately for each of the two groups of OCI items (without changing the option to present items of OCI either before tax or net of tax).

Issued: 16 June 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 July 2012 Mandatory Mandatory Mandatory Optional

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 and interim periods within those periods Mandatory Optional Optional Optional

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 [Note 2] [Note 3] [Note 3] [Note 3]

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Mandatory Optional Optional Optional

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.

Issued: 28 June 2012 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Mandatory Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional Optional

Novation of Derivatives and Continuation of Hedge Accounting' (Amendments to IAS 39)

Amends IAS 39 Financial Instruments: Recognition and Measurement 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)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional Optional

Editorial Corrections (various)

The IASB periodically issues Editorial Corrections and changes to IFRSs and other pronouncements. Since January 2011, such corrections have been made in February 2011, March 2011, April 2011, May 2011, June 2011 (revised October 2011), November 2011, February 2012, July 2012 and March 2013.

Note: For details of these editorial corrections, see our IASB editorial corrections page.

As minor editorial corrections, these changes are effectively immediately applicable under IFRS See comment in previous column

 

New and revised Interpretations

New or revised pronouncementWhen effectiveApplication at 31 March 2013 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

Clarifies the requirements for accounting for stripping costs associated with waste removal in surface mining, including when production stripping costs should be recognised as an asset, how the asset is initially recognised, and subsequent measurement.

The Interpretation requires stripping activity costs which provide improved access to ore are recognised as a non-current 'stripping activity asset' when certain criteria are met. The stripping activity asset is depreciated or amortised on a systematic basis, over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity, using the units of production method unless another method is more appropriate.

Issued: 19 October 2011 (newsletter)

Applies to annual periods beginning on or after 1 January 2013 Mandatory Optional Optional Optional

IFRIC 21 Levies

Provides guidance on when to recognise a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain.

The Interpretation identifies the obligating event for the recognition of a liability as the activity that triggers the payment of the levy in accordance with the relevant legislation. It provides the following guidance on recognition of a liability to pay levies:

  • The liability is recognised progressively if the obligating event occurs over a period of time
  • If an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is reached.

 

Issued: 20 May 2013 (newsletter)

Applies to annual periods beginning on or after 1 January 2014 Optional Optional Optional Optional

 

Other pronouncements

New or revised pronouncementWhen effectiveApplication at 31 March 2013 to
1st qtrs2nd qtrs3rd qtrsFull yrs

Conceptual Framework for Financial Reporting

First phase of the IASB and FASB joint project to develop an improved revised conceptual framework for International Financial Reporting Standards (IFRSs) and US generally accepted accounting practices (US GAAP).

The first phase deals with the objective and qualitative characteristics of financial reporting, incorporating the following chapters:

  • Chapter 1 The objective of financial reporting
  • Chapter 3 Qualitative characteristics of useful financial information
  • Chapter 4 The 1989 Framework: the remaining text.

Note: The Conceptual Framework project was originally being conducted in phases as a joint project with the United States Financial Accounting Standards Board (FASB), but was put on hold pending the finalisation of other convergence projects. During 2012, the IASB reactivated the conceptual framework project as a comprehensive single-phase IASB-only project.

Issued: 28 September 2010 (newsletter)

The Conceptual Framework is not an IFRS and hence does not define standards for any particular measurement or disclosure issue. Nothing in the Conceptual Framework overrides any specific IFRS Effectively applicable on issue

International Financial Reporting Standard (IFRS) Practice Statement Management Commentary

A broad, non-binding framework for the presentation of narrative reporting to accompany financial statements prepared in accordance with IFRSs.

Note: The Practice Statement is not an IFRS. Consequently, entities applying IFRSs are not required to comply with the Practice Statement, unless specifically required by their jurisdiction. Furthermore, non-compliance with the Practice Statement will not prevent an entity's financial statements from complying with IFRSs, if they otherwise do so.

Issued: 8 December 2010 (newsletter)

An entity may apply the Practice Statement to management commentary presented prospectively from 8 December 2010 Optional Optional Optional Optional

 

Notes

Note 1. This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

Note 2. This pronouncement only applies to first-time adopters of IFRSs and must be applied by such entities on a mandatory basis.

Note 3. This pronouncement only applies to first-time adopters of IFRSs and can be optionally applied by such entities.

New and revised pronouncements as at 31 December 2012

04 Mar 2013

The information on this page provides a high level overview of new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 31 December 2012. This listing can be used to perform a quick check that all the new financial reporting requirements have been fully considered in the reporting close process.

Editions of this summary for later accounting periods can be found here.

The information below is organised as follows:

The information reflects developments to 4 March 2013 and will be updated through to March 2013 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 31 December 2012.

 

New or revised standards

New or revised pronouncementWhen effectiveApplication at 31 December 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IAS 27 Separate Financial Statements (2011)

Amended version of IAS 27 which now only deals with the requirements for separate financial statements, which have been carried over largely unchanged from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements.

The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with IFRS 9 Financial Instruments.

The Standard also deals with the recognition of dividends, certain group reorganisations and includes a number of disclosure requirements.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities' and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IAS 28 Investments in Associates and Joint Ventures (2011)

This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

The Standard defines 'significant influence' and provides guidance on how the equity method of accounting is to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in associates and joint ventures should be tested for impairment.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities' and IAS 27 'Separate Financial Statements' (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 9 Financial Instruments (2009)

IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:

  • Debt instruments meeting both a 'business model' test and a 'cash flow characteristics' test are measured at amortised cost (the use of fair value is optional in some limited circumstances)
  • Investments in equity instruments can be designated as 'fair value through other comprehensive income' with only dividends being recognised in profit or loss
  • All other instruments (including all derivatives) are measured at fair value with changes recognised in the profit or loss
  • The concept of 'embedded derivatives' does not apply to financial assets within the scope of the Standard and the entire instrument must be classified and measured in accordance with the above guidelines.

Note: In October 2010, the IASB reissued IFRS 9 'Financial Instruments', including revised requirements for financial liabilities and carrying over the existing derecognition requirements from IAS 39 'Financial Instruments: Recognition and Measurement'. IFRS 9 (2010) supersedes IFRS 9 (2009). However, for annual reporting periods beginning before 1 January 2015, an entity may early adopt IFRS 9 (2009) instead of IFRS 9 (2010). However, the IASB has proposed in ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 to remove the choice of which version of IFRS 9 may be applied early.

Note: On 16 December 2011, the IASB issued 'Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7)', which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.

Issued: 12 November 2009 (newsletter)

Applies on a modified retrospective basis to annual periods beginning on or after 1 January 2015
(see note)
Optional Optional Optional Optional

IFRS 9 Financial Instruments (2010)

A revised version of IFRS 9 incorporating revised requirements for the classification and measurement of financial liabilities, and carrying over the existing derecognition requirements from IAS 39 Financial Instruments: Recognition and Measurement.

The revised financial liability provisions maintain the existing amortised cost measurement basis for most liabilities. New requirements apply where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the portion of the change in fair value related to changes in the entity's own credit risk is presented in other comprehensive income rather than within profit or loss.

Note: This Standard supersedes IFRS 9 (2009). However, for annual reporting periods beginning before 1 January 2015, an entity may early adopt IFRS 9 (2009) instead of applying this Standard. However, the IASB has proposed in ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 to remove the choice of which version of IFRS 9 may be applied early.

Note: On 16 December 2011, the IASB issued 'Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7)', which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.

Issued: 28 October 2010 (newsletter)

Applies to annual periods beginning on or after 1 January 2015
(see note)
Optional Optional Optional Optional

IFRS 10 Consolidated Financial Statements

Requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities.

The Standard identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements.

The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in 'special purpose entities'). Under IFRS 10, control is based on whether an investor has:

  • Power over the investee
  • Exposure, or rights, to variable returns from its involvement with the investee, and
  • The ability to use its power over the investee to affect the amount of the returns.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities', IAS 27 'Separate Financial Statements' (2011) and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 11 Joint Arrangements

Replaces IAS 31 Interests in Joint Ventures. Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement.

Joint arrangements are either joint operations or joint ventures:

  • A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognise their assets, liabilities, revenue and expenses in relation to its interest in a joint operation (including their share of any such items arising jointly)
  • A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with IAS 28 Investments in Associates and Joint Ventures (2011). Unlike IAS 31, the use of 'proportionate consolidation' to account for joint ventures is not permitted.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 12 'Disclosure of Interests in Other Entities', IAS 27 'Separate Financial Statements' (2011) and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 12 Disclosure of Interests in Other Entities

Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows.

In high-level terms, the required disclosures are grouped into the following broad categories:

  • Significant judgements and assumptions - such as how control, joint control, significant influence has been determined
  • Interests in subsidiaries - including details of the structure of the group, risks associated with structured entities, changes in control, and so on
  • Interests in joint arrangements and associates - the nature, extent and financial effects of interests in joint arrangements and associates (including names, details and summarised financial information)
  • Interests in unconsolidated structured entities - information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities

IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the extensive disclosures required.

Note: Entities are encouraged to voluntarily provide the information required by IFRS 12 prior to its adoption. Providing some of the disclosures required by IFRS 12 does not compel an entity to comply with all of the requirements of the IFRS or to also apply the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IAS 27 'Separate Financial Statements' (2011) and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 13 Fair Value Measurement

Replaces the guidance on fair value measurement in existing IFRS accounting literature with a single standard.

The IFRS is the result of joint efforts by the IASB and FASB to develop a converged fair value framework. The IFRS defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13 does not change the requirements regarding which items should be measured or disclosed at fair value.

IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements). With some exceptions, the standard requires entities to classify these measurements into a 'fair value hierarchy' based on the nature of the inputs:

  • Level 1 - quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
  • Level 2 - inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
  • Level 3 - unobservable inputs for the asset or liability

Entities are required to make various disclosures depending upon the nature of the fair value measurement (e.g. whether it is recognised in the financial statements or merely disclosed) and the level in which it is classified.

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Optional Optional Optional Optional

 

Amendments

New or revised pronouncementWhen effectiveApplication at 31 December 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

Amendments to IFRS 7 Financial Instruments: Disclosures

Makes amendments to IFRS 7 Financial Instruments: Disclosures resulting from the IASB's comprehensive review of off balance sheet activities.

The amendments introduce additional disclosures, designed to allow users of financial statements to improve their understanding of transfer transactions of financial assets (for example, securitisations), including understanding the possible effects of any risks that may remain with the entity that transferred the assets. The amendments also require additional disclosures if a disproportionate amount of transfer transactions are undertaken around the end of a reporting period.

Note: In the first year of application, comparative information is not required.

Issued: 7 October 2010 (newsletter)

Applies to annual periods beginning on or after 1 July 2011 [Note 1] [Note 1] Mandatory Mandatory

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.

Issued: 20 December 2010 (newsletter)

Applicable to annual periods beginning on or after 1 January 2012 Mandatory Mandatory Mandatory Mandatory

Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to IFRS 1)

Amends IFRS 1 First-time Adoption of International Financial Reporting Standards to:

  • Replace references to a fixed date of '1 January 2004' with 'the date of transition to IFRSs', thus eliminating the need for companies adopting IFRSs for the first time to restate derecognition transactions that occurred before the date of transition to IFRSs
  • Provide guidance on how an entity should resume presenting financial statements in accordance with IFRSs after a period when the entity was unable to comply with IFRSs because its functional currency was subject to severe hyperinflation.

Issued: 20 December 2010 (newsletter on hyperinflation, newsletter on fixed dates)

Applicable to annual periods beginning on or after 1 July 2011 [Note 1] [Note 1] [Note 2] [Note 2]

IAS 19 Employee Benefits (2011)

An amended version of IAS 19 Employee Benefits with revised requirements for pensions and other post-retirement benefits, termination benefits and other changes.

The key amendments include:

  • Requiring the recognition of changes in the net defined benefit liability (asset) including immediate recognition of defined benefit cost, disaggregation of defined benefit cost into components, recognition of remeasurements in other comprehensive income, plan amendments, curtailments and settlements (eliminating the 'corridor approach' permitted by the existing IAS 19)
  • Introducing enhanced disclosures about defined benefit plans
  • Modifying accounting for termination benefits, including distinguishing benefits provided in exchange for service and benefits provided in exchange for the termination of employment and affect the recognition and measurement of termination benefits
  • Clarifying various miscellaneous issues, including the classification of employee benefits, current estimates of mortality rates, tax and administration costs and risk-sharing and conditional indexation features
  • Incorporating other matters submitted to the IFRS Interpretations Committee.

Issued: 16 June 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Optional Optional Optional Optional

Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)

Amends IAS 1 Presentation of Financial Statements to revise the way other comprehensive income is presented.

The amendments:

  • Preserve the amendments made to IAS 1 in 2007 to require profit or loss and OCI to be presented together, i.e. either as a single 'statement of profit or loss and comprehensive income', or a separate 'statement of profit or loss' and a 'statement of comprehensive income' – rather than requiring a single continuous statement as was proposed in the exposure draft
  • Require entities to group items presented in OCI based on whether they are potentially reclassifiable to profit or loss subsequently. i.e. those that might be reclassified and those that will not be reclassified
  • Require tax associated with items presented before tax to be shown separately for each of the two groups of OCI items (without changing the option to present items of OCI either before tax or net of tax).

Issued: 16 June 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 July 2012 Mandatory Mandatory Optional Optional

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 and interim periods within those periods Optional Optional Optional Optional

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 [Note 3] [Note 3] [Note 3] [Note 3]

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Optional Optional Optional Optional

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.

Issued: 28 June 2012 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional Optional

Editorial Corrections (various)

The IASB periodically issues Editorial Corrections and changes to IFRSs and other pronouncements. Since January 2011, such corrections have been made in February 2011, March 2011, April 2011, May 2011, June 2011 (revised October 2011), November 2011, February 2012, July 2012 and March 2013.

Note: For details of these editorial corrections, see our IASB editorial corrections page.

As minor editorial corrections, these changes are effectively immediately applicable under IFRS See comment in previous column

 

New and revised Interpretations

New or revised pronouncementWhen effectiveApplication at 31 December 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

Clarifies the requirements for accounting for stripping costs associated with waste removal in surface mining, including when production stripping costs should be recognised as an asset, how the asset is initially recognised, and subsequent measurement.

The Interpretation requires stripping activity costs which provide improved access to ore are recognised as a non-current 'stripping activity asset' when certain criteria are met. The stripping activity asset is depreciated or amortised on a systematic basis, over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity, using the units of production method unless another method is more appropriate.

Issued: 19 October 2011 (newsletter)

Applies to annual periods beginning on or after 1 January 2013 Optional Optional Optional Optional

 

Other pronouncements

New or revised pronouncementWhen effectiveApplication at 31 December 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

Conceptual Framework for Financial Reporting

First phase of the IASB and FASB joint project to develop an improved revised conceptual framework for International Financial Reporting Standards (IFRSs) and US generally accepted accounting practices (US GAAP).

The first phase deals with the objective and qualitative characteristics of financial reporting, incorporating the following chapters:

  • Chapter 1 The objective of financial reporting
  • Chapter 3 Qualitative characteristics of useful financial information
  • Chapter 4 The 1989 Framework: the remaining text.

Note: The Conceptual Framework project was originally being conducted in phases as a joint project with the United States Financial Accounting Standards Board (FASB), but was put on hold pending the finalisation of other convergence projects. During 2012, the IASB reactivated the conceptual framework project as a comprehensive single-phase IASB-only project.

Issued: 28 September 2010 (newsletter)

The Conceptual Framework is not an IFRS and hence does not define standards for any particular measurement or disclosure issue. Nothing in the Conceptual Framework overrides any specific IFRS Effectively applicable on issue

International Financial Reporting Standard (IFRS) Practice Statement Management Commentary

A broad, non-binding framework for the presentation of narrative reporting to accompany financial statements prepared in accordance with IFRSs.

Note: The Practice Statement is not an IFRS. Consequently, entities applying IFRSs are not required to comply with the Practice Statement, unless specifically required by their jurisdiction. Furthermore, non-compliance with the Practice Statement will not prevent an entity's financial statements from complying with IFRSs, if they otherwise do so.

Issued: 8 December 2010 (newsletter)

An entity may apply the Practice Statement to management commentary presented prospectively from 8 December 2010 Optional Optional Optional Optional

 

Notes

Note 1. This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

Note 2. This pronouncement only applies to first-time adopters of IFRSs and must be applied by such entities on a mandatory basis.

Note 3. This pronouncement only applies to first-time adopters of IFRSs and can be optionally applied by such entities.

New and revised pronouncements as at 30 September 2012

28 Sep 2012

The information on this page provides a high level overview of new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 30 September 2012. This listing can be used to perform a quick check that all the new financial reporting requirements have been fully considered in the reporting close process.

The information below is organised as follows:

The information reflects developments to 31 October 2012 and will be updated through to December 2012 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 30 September 2012.

 

New or revised standards

New or revised pronouncementWhen effectiveApplication at 30 September 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IAS 24 Related Party Disclosures (2009)

Amends the requirements of the previous version of IAS 24 to:

  • Provide a partial exemption from related party disclosure requirements for government-related entities
  • Clarify the definition of a related party
  • Include an explicit requirement to disclose commitments involving related parties.

Issued: 4 November 2009 (newsletter)

Applies to annual periods beginning on or after 1 January 2011 [Note 1] [Note 1] [Note 1] Mandatory

IAS 27 Separate Financial Statements (2011)

Amended version of IAS 27 which now only deals with the requirements for separate financial statements, which have been carried over largely unchanged from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements.

The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with IFRS 9 Financial Instruments.

The Standard also deals with the recognition of dividends, certain group reorganisations and includes a number of disclosure requirements.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities' and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IAS 28 Investments in Associates and Joint Ventures (2011)

This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

The Standard defines 'significant influence' and provides guidance on how the equity method of accounting is to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in associates and joint ventures should be tested for impairment.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities' and IAS 27 'Separate Financial Statements' (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 9 Financial Instruments (2009)

IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:

  • Debt instruments meeting both a 'business model' test and a 'cash flow characteristics' test are measured at amortised cost (the use of fair value is optional in some limited circumstances)
  • Investments in equity instruments can be designated as 'fair value through other comprehensive income' with only dividends being recognised in profit or loss
  • All other instruments (including all derivatives) are measured at fair value with changes recognised in the profit or loss
  • The concept of 'embedded derivatives' does not apply to financial assets within the scope of the Standard and the entire instrument must be classified and measured in accordance with the above guidelines.

Note: In October 2010, the IASB reissued IFRS 9 'Financial Instruments', including revised requirements for financial liabilities and carrying over the existing derecognition requirements from IAS 39 'Financial Instruments: Recognition and Measurement'. IFRS 9 (2010) supersedes IFRS 9 (2009). However, for annual reporting periods beginning before 1 January 2015, an entity may early adopt IFRS 9 (2009) instead of IFRS 9 (2010).

Note: On 16 December 2011, the IASB issued 'Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7)', which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.

Issued: 12 November 2009 (newsletter)

Applies on a modified retrospective basis to annual periods beginning on or after 1 January 2015
(see note)
Optional Optional Optional Optional

IFRS 9 Financial Instruments (2010)

A revised version of IFRS 9 incorporating revised requirements for the classification and measurement of financial liabilities, and carrying over the existing derecognition requirements from IAS 39 Financial Instruments: Recognition and Measurement.

The revised financial liability provisions maintain the existing amortised cost measurement basis for most liabilities. New requirements apply where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the portion of the change in fair value related to changes in the entity's own credit risk is presented in other comprehensive income rather than within profit or loss.

Note: This Standard supersedes IFRS 9 (2009). However, for annual reporting periods beginning before 1 January 2015, an entity may early adopt IFRS 9 (2009) instead of applying this Standard.

Note: On 16 December 2011, the IASB issued 'Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7)', which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.

Issued: 28 October 2010 (newsletter)

Applies to annual periods beginning on or after 1 January 2015
(see note)
Optional Optional Optional Optional

IFRS 10 Consolidated Financial Statements

Requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities.

The Standard identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements.

The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in 'special purpose entities'). Under IFRS 10, control is based on whether an investor has:

  • Power over the investee
  • Exposure, or rights, to variable returns from its involvement with the investee, and
  • The ability to use its power over the investee to affect the amount of the returns.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities', IAS 27 'Separate Financial Statements' (2011) and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 11 Joint Arrangements

Replaces IAS 31 Interests in Joint Ventures. Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement.

Joint arrangements are either joint operations or joint ventures:

  • A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognise their assets, liabilities, revenue and expenses in relation to its interest in a joint operation (including their share of any such items arising jointly)
  • A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with IAS 28 Investments in Associates and Joint Ventures (2011). Unlike IAS 31, the use of 'proportionate consolidation' to account for joint ventures is not permitted.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 12 'Disclosure of Interests in Other Entities', IAS 27 'Separate Financial Statements' (2011) and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 12 Disclosure of Interests in Other Entities

Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows.

In high-level terms, the required disclosures are grouped into the following broad categories:

  • Significant judgements and assumptions - such as how control, joint control, significant influence has been determined
  • Interests in subsidiaries - including details of the structure of the group, risks associated with structured entities, changes in control, and so on
  • Interests in joint arrangements and associates - the nature, extent and financial effects of interests in joint arrangements and associates (including names, details and summarised financial information)
  • Interests in unconsolidated structured entities - information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities

IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the extensive disclosures required.

Note: Entities are encouraged to voluntarily provide the information required by IFRS 12 prior to its adoption. Providing some of the disclosures required by IFRS 12 does not compel an entity to comply with all of the requirements of the IFRS or to also apply the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IAS 27 'Separate Financial Statements' (2011) and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 13 Fair Value Measurement

Replaces the guidance on fair value measurement in existing IFRS accounting literature with a single standard.

The IFRS is the result of joint efforts by the IASB and FASB to develop a converged fair value framework. The IFRS defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13 does not change the requirements regarding which items should be measured or disclosed at fair value.

IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements). With some exceptions, the standard requires entities to classify these measurements into a 'fair value hierarchy' based on the nature of the inputs:

  • Level 1 - quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
  • Level 2 - inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
  • Level 3 - unobservable inputs for the asset or liability

Entities are required to make various disclosures depending upon the nature of the fair value measurement (e.g. whether it is recognised in the financial statements or merely disclosed) and the level in which it is classified.

Issued: 12 May 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013
Optional Optional Optional Optional

 

Amendments

New or revised pronouncementWhen effectiveApplication at 30 September 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

Prepayments of a Minimum Funding Requirement

Makes limited-application amendments to IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The amendments apply when an entity is subject to minimum funding requirements and makes an early payment of contributions to cover those requirements, permitting the benefit of such an early payment to be recognised as an asset.

Issued: 26 November 2009 (newsletter)

Applies to annual periods beginning on or after 1 January 2011 (applied retrospectively from the beginning of the earliest comparative period presented) [Note 1] [Note 1] [Note 1] Mandatory

Improvements to IFRSs (2010)

Amends seven pronouncements (plus consequential amendments to various others) as a result of the IASB's 2008-2010 cycle of annual improvements.

Key amendments include:

  • IFRS 1 - accounting policy changes in year of adoption and amendments to deemed cost (revaluation basis, regulatory assets)
  • IFRS 3/IAS 27 - clarification of transition requirements, measurement of non-controlling interests, unreplaced and voluntarily replaced share-based payment awards
  • Financial statement disclosures - clarification of content of statement of changes in equity (IAS 1), financial instrument disclosures (IFRS 7) and significant events and transactions in interim reports (IAS 34)
  • IFRIC 13 - fair value of award credits.

Issued: 6 May 2010 (newsletter)

Generally effective for annual reporting periods beginning on or after 1 January 2011
(IFRS 3/IAS 27 transition clarifications apply to annual reporting periods beginning on or after 1 July 2010)
[Note 1] [Note 1] [Note 1] [Note 4]

Amendments to IFRS 7 Financial Instruments: Disclosures

Makes amendments to IFRS 7 Financial Instruments: Disclosures resulting from the IASB's comprehensive review of off balance sheet activities.

The amendments introduce additional disclosures, designed to allow users of financial statements to improve their understanding of transfer transactions of financial assets (for example, securitisations), including understanding the possible effects of any risks that may remain with the entity that transferred the assets. The amendments also require additional disclosures if a disproportionate amount of transfer transactions are undertaken around the end of a reporting period.

Note: In the first year of application, comparative information is not required.

Issued: 7 October 2010 (newsletter)

Applies to annual periods beginning on or after 1 July 2011 [Note 1] Mandatory Mandatory Mandatory

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.

Issued: 20 December 2010 (newsletter)

Applicable to annual periods beginning on or after 1 January 2012 Mandatory Mandatory Mandatory Optional

Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to IFRS 1)

Amends IFRS 1 First-time Adoption of International Financial Reporting Standards to:

  • Replace references to a fixed date of '1 January 2004' with 'the date of transition to IFRSs', thus eliminating the need for companies adopting IFRSs for the first time to restate derecognition transactions that occurred before the date of transition to IFRSs
  • Provide guidance on how an entity should resume presenting financial statements in accordance with IFRSs after a period when the entity was unable to comply with IFRSs because its functional currency was subject to severe hyperinflation.

Issued: 20 December 2010 (newsletter on hyperinflation, newsletter on fixed dates)

Applicable to annual periods beginning on or after 1 July 2011 [Note 1] [Note 2] [Note 2] [Note 2]

IAS 19 Employee Benefits (2011)

An amended version of IAS 19 Employee Benefits with revised requirements for pensions and other post-retirement benefits, termination benefits and other changes.

The key amendments include:

  • Requiring the recognition of changes in the net defined benefit liability (asset) including immediate recognition of defined benefit cost, disaggregation of defined benefit cost into components, recognition of remeasurements in other comprehensive income, plan amendments, curtailments and settlements (eliminating the 'corridor approach' permitted by the existing IAS 19)
  • Introducing enhanced disclosures about defined benefit plans
  • Modifying accounting for termination benefits, including distinguishing benefits provided in exchange for service and benefits provided in exchange for the termination of employment and affect the recognition and measurement of termination benefits
  • Clarifying various miscellaneous issues, including the classification of employee benefits, current estimates of mortality rates, tax and administration costs and risk-sharing and conditional indexation features
  • Incorporating other matters submitted to the IFRS Interpretations Committee.

Issued: 16 June 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 January 2013 Optional Optional Optional Optional

Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)

Amends IAS 1 Presentation of Financial Statements to revise the way other comprehensive income is presented.

The amendments:

  • Preserve the amendments made to IAS 1 in 2007 to require profit or loss and OCI to be presented together, i.e. either as a single 'statement of profit or loss and comprehensive income', or a separate 'statement of profit or loss' and a 'statement of comprehensive income' – rather than requiring a single continuous statement as was proposed in the exposure draft
  • Require entities to group items presented in OCI based on whether they are potentially reclassifiable to profit or loss subsequently. i.e. those that might be reclassified and those that will not be reclassified
  • Require tax associated with items presented before tax to be shown separately for each of the two groups of OCI items (without changing the option to present items of OCI either before tax or net of tax).

Issued: 16 June 2011 (newsletter)

Applicable to annual reporting periods beginning on or after 1 July 2012 Mandatory Optional Optional Optional

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 and interim periods within those periods Optional Optional Optional Optional

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Optional Optional Optional Optional

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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Optional Optional Optional Optional

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.

Issued: 28 June 2012 (newsletter)

Applicable to annual periods beginning on or after 1 January 2013 Optional Optional Optional 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 (newsletter)

Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional Optional

Editorial Corrections (various)

The IASB periodically issues Editorial Corrections and changes to IFRSs and other pronouncements. Since January 2011, such corrections have been made in February 2011, March 2011, April 2011, May 2011, June 2011 (revised October 2011), November 2011, February 2012 and July 2012.

As minor editorial corrections, these changes are effectively immediately applicable under IFRS See comment in previous column

 

New and revised Interpretations

New or revised pronouncementWhen effectiveApplication at 30 September 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

Clarifies the requirements for accounting for stripping costs associated with waste removal in surface mining, including when production stripping costs should be recognised as an asset, how the asset is initially recognised, and subsequent measurement.

The Interpretation requires stripping activity costs which provide improved access to ore are recognised as a non-current 'stripping activity asset' when certain criteria are met. The stripping activity asset is depreciated or amortised on a systematic basis, over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity, using the units of production method unless another method is more appropriate.

Issued: 19 October 2011 (newsletter)

Applies to annual periods beginning on or after 1 January 2013 Optional Optional Optional Optional

 

Other pronouncements

New or revised pronouncementWhen effectiveApplication at 30 September 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

Conceptual Framework for Financial Reporting

First phase of the IASB and FASB joint project to develop an improved revised conceptual framework for International Financial Reporting Standards (IFRSs) and US generally accepted accounting practices (US GAAP).

The first phase deals with the objective and qualitative characteristics of financial reporting, incorporating the following chapters:

  • Chapter 1 The objective of financial reporting
  • Chapter 3 Qualitative characteristics of useful financial information
  • Chapter 4 The 1989 Framework: the remaining text.

Note: The Conceptual Framework project is being conducted in phases. As a chapter is finalised, the relevant paragraphs in the 'Framework for the Preparation and Presentation of Financial Statements' that was published in 1989 will be replaced. Chapter 2 will deal with the reporting entity concept.

Issued: 28 September 2010 (newsletter)

The Conceptual Framework is not an IFRS and hence does not define standards for any particular measurement or disclosure issue. Nothing in the Conceptual Framework overrides any specific IFRS Effectively applicable on issue

International Financial Reporting Standard (IFRS) Practice Statement Management Commentary

A broad, non-binding framework for the presentation of narrative reporting to accompany financial statements prepared in accordance with IFRSs.

Note: The Practice Statement is not an IFRS. Consequently, entities applying IFRSs are not required to comply with the Practice Statement, unless specifically required by their jurisdiction. Furthermore, non-compliance with the Practice Statement will not prevent an entity's financial statements from complying with IFRSs, if they otherwise do so.

Issued: 8 December 2010 (newsletter)

An entity may apply the Practice Statement to management commentary presented prospectively from 8 December 2010 Optional Optional Optional Optional

 

Notes

Note 1. This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

Note 2. This pronouncement only applies to first-time adopters of IFRSs and must be applied by such entities on a mandatory basis.

Note 3. This pronouncement only applies to first-time adopters of IFRSs and can be optionally applied by such entities.

Note 4. The amendments to IFRS 3/IAS 27 have already been implemented, the remaining amendments are mandatory.

New and revised pronouncements as at 31 March 2012

28 Jun 2012

The information on this page provides a high level overview of new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 31 March 2012. This listing can be used to perform a quick check that all the new financial reporting requirements have been fully considered in the reporting close process.

The information below is organised as follows:

The information reflects developments to 28 June 2012 and will be updated through to June 2012 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 31 March 2012.

 

New or revised standards

New or revised pronouncementWhen effectiveApplication at 31 March 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IAS 24 Related Party Disclosures (2009)

Amends the requirements of the previous version of IAS 24 to:

  • Provide a partial exemption from related party disclosure requirements for government-related entities
  • Clarify the definition of a related party
  • Include an explicit requirement to disclose commitments involving related parties.
Applies to annual periods beginning on or after 1 January 2011 [Note 1] Mandatory Mandatory Mandatory

IAS 27 Separate Financial Statements (2011)

Amended version of IAS 27 which now only deals with the requirements for separate financial statements, which have been carried over largely unchanged from IAS 27 Consolidated and Separate Financial Statements. Requirements for consolidated financial statements are now contained in IFRS 10 Consolidated Financial Statements.

The Standard requires that when an entity prepares separate financial statements, investments in subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance with IFRS 9 Financial Instruments.

The Standard also deals with the recognition of dividends, certain group reorganisations and includes a number of disclosure requirements.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities' and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IAS 28 Investments in Associates and Joint Ventures (2011)

This Standard supersedes IAS 28 Investments in Associates and prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

The Standard defines 'significant influence' and provides guidance on how the equity method of accounting is to be applied (including exemptions from applying the equity method in some cases). It also prescribes how investments in associates and joint ventures should be tested for impairment.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities' and IAS 27 'Separate Financial Statements' (2011).

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 9 Financial Instruments (2009)

IFRS 9 introduces new requirements for classifying and measuring financial assets, as follows:

  • Debt instruments meeting both a 'business model' test and a 'cash flow characteristics' test are measured at amortised cost (the use of fair value is optional in some limited circumstances)
  • Investments in equity instruments can be designated as 'fair value through other comprehensive income' with only dividends being recognised in profit or loss
  • All other instruments (including all derivatives) are measured at fair value with changes recognised in the profit or loss
  • The concept of 'embedded derivatives' does not apply to financial assets within the scope of the Standard and the entire instrument must be classified and measured in accordance with the above guidelines.

Note: In October 2010, the IASB reissued IFRS 9 'Financial Instruments', including revised requirements for financial liabilities and carrying over the existing derecognition requirements from IAS 39 'Financial Instruments: Recognition and Measurement'. IFRS 9 (2010) supersedes IFRS 9 (2009). However, for annual reporting periods beginning before 1 January 2015, an entity may early adopt IFRS 9 (2009) instead of IFRS 9 (2010).

Note: On 16 December 2011, the IASB issued 'Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7)', which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.

Applies on a modified retrospective basis to annual periods beginning on or after 1 January 2015
(see note)
Optional Optional Optional Optional

IFRS 9 Financial Instruments (2010)

A revised version of IFRS 9 incorporating revised requirements for the classification and measurement of financial liabilities, and carrying over the existing derecognition requirements from IAS 39 Financial Instruments: Recognition and Measurement.

The revised financial liability provisions maintain the existing amortised cost measurement basis for most liabilities. New requirements apply where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the portion of the change in fair value related to changes in the entity's own credit risk is presented in other comprehensive income rather than within profit or loss.

Note: This Standard supersedes IFRS 9 (2009). However, for annual reporting periods beginning before 1 January 2015, an entity may early adopt IFRS 9 (2009) instead of applying this Standard.

Note: On 16 December 2011, the IASB issued 'Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7)', which amended the effective date of IFRS 9 to annual periods beginning on or after 1 January 2015, and modified the relief from restating comparative periods and the associated disclosures in IFRS 7.

Applies to annual periods beginning on or after 1 January 2015
(see note)
Optional Optional Optional Optional

IFRS 10 Consolidated Financial Statements

Requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation - Special Purpose Entities.

The Standard identifies the principles of control, determines how to identify whether an investor controls an investee and therefore must consolidate the investee, and sets out the principles for the preparation of consolidated financial statements.

The Standard introduces a single consolidation model for all entities based on control, irrespective of the nature of the investee (i.e. whether an entity is controlled through voting rights of investors or through other contractual arrangements as is common in 'special purpose entities'). Under IFRS 10, control is based on whether an investor has:

  • Power over the investee
  • Exposure, or rights, to variable returns from its involvement with the investee, and
  • The ability to use its power over the investee to affect the amount of the returns.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities', IAS 27 'Separate Financial Statements' (2011) and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 11 Joint Arrangements

Replaces IAS 31 Interests in Joint Ventures. Requires a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and then account for those rights and obligations in accordance with that type of joint arrangement.

Joint arrangements are either joint operations or joint ventures:

  • A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operators recognise their assets, liabilities, revenue and expenses in relation to its interest in a joint operation (including their share of any such items arising jointly)
  • A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. A joint venturer applies the equity method of accounting for its investment in a joint venture in accordance with IAS 28 Investments in Associates and Joint Ventures (2011). Unlike IAS 31, the use of 'proportionate consolidation' to account for joint ventures is not permitted.

Note: Entities early adopting this standard must also adopt the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 12 'Disclosure of Interests in Other Entities', IAS 27 'Separate Financial Statements' (2011) and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 12 Disclosure of Interests in Other Entities

Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows.

In high-level terms, the required disclosures are grouped into the following broad categories:

  • Significant judgements and assumptions - such as how control, joint control, significant influence has been determined
  • Interests in subsidiaries - including details of the structure of the group, risks associated with structured entities, changes in control, and so on
  • Interests in joint arrangements and associates - the nature, extent and financial effects of interests in joint arrangements and associates (including names, details and summarised financial information)
  • Interests in unconsolidated structured entities - information to allow an understanding of the nature and extent of interests in unconsolidated structured entities and to evaluate the nature of, and changes in, the risks associated with its interests in unconsolidated structured entities

IFRS 12 lists specific examples and additional disclosures which further expand upon each of these disclosure objectives, and includes other guidance on the extensive disclosures required.

Note: Entities are encouraged to voluntarily provide the information required by IFRS 12 prior to its adoption. Providing some of the disclosures required by IFRS 12 does not compel an entity to comply with all of the requirements of the IFRS or to also apply the other standards included in the 'suite of five' standards on consolidation, joint arrangements and disclosures: IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IAS 27 'Separate Financial Statements' (2011) and IAS 28 'Investments in Associates and Joint Ventures' (2011).

Applicable to annual reporting periods beginning on or after 1 January 2013
(see note regarding early adoption)
Optional Optional Optional Optional

IFRS 13 Fair Value Measurement

Replaces the guidance on fair value measurement in existing IFRS accounting literature with a single standard.

The IFRS is the result of joint efforts by the IASB and FASB to develop a converged fair value framework. The IFRS defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. However, IFRS 13 does not change the requirements regarding which items should be measured or disclosed at fair value.

IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements). With some exceptions, the standard requires entities to classify these measurements into a 'fair value hierarchy' based on the nature of the inputs:

  • Level 1 - quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
  • Level 2 - inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
  • Level 3 - unobservable inputs for the asset or liability

Entities are required to make various disclosures depending upon the nature of the fair value measurement (e.g. whether it is recognised in the financial statements or merely disclosed) and the level in which it is classified.

Applicable to annual reporting periods beginning on or after 1 January 2013
Optional Optional Optional Optional

 

Amendments

New or revised pronouncementWhen effectiveApplication at 31 March 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

Prepayments of a Minimum Funding Requirement

Makes limited-application amendments to IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The amendments apply when an entity is subject to minimum funding requirements and makes an early payment of contributions to cover those requirements, permitting the benefit of such an early payment to be recognised as an asset.

Applies to annual periods beginning on or after 1 January 2011 (applied retrospectively from the beginning of the earliest comparative period presented) [Note 1] Mandatory Mandatory Mandatory

Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters

Provides additional exemption on IFRS transition in relation to IFRS 7 Financial Instruments: Disclosures, to avoid the potential use of hindsight and to ensure that first-time adopters are not disadvantaged as compared with current IFRS preparers.

Applies to annual periods beginning on or after 1 July 2010 [Note 1] [Note 1] [Note 1] [Note 2]

Improvements to IFRSs (2010)

Amends seven pronouncements (plus consequential amendments to various others) as a result of the IASB's 2008-2010 cycle of annual improvements.

Key amendments include:

  • IFRS 1 - accounting policy changes in year of adoption and amendments to deemed cost (revaluation basis, regulatory assets)
  • IFRS 3/IAS 27 - clarification of transition requirements, measurement of non-controlling interests, unreplaced and voluntarily replaced share-based payment awards
  • Financial statement disclosures - clarification of content of statement of changes in equity (IAS 1), financial instrument disclosures (IFRS 7) and significant events and transactions in interim reports (IAS 34)
  • IFRIC 13 - fair value of award credits.
Generally effective for annual reporting periods beginning on or after 1 January 2011
(IFRS 3/IAS 27 transition clarifications apply to annual reporting periods beginning on or after 1 July 2010)
[Note 1] [Note 5] [Note 5] Mandatory

Amendments to IFRS 7 Financial Instruments: Disclosures

Makes amendments to IFRS 7 Financial Instruments: Disclosures resulting from the IASB's comprehensive review of off balance sheet activities.

The amendments introduce additional disclosures, designed to allow users of financial statements to improve their understanding of transfer transactions of financial assets (for example, securitisations), including understanding the possible effects of any risks that may remain with the entity that transferred the assets. The amendments also require additional disclosures if a disproportionate amount of transfer transactions are undertaken around the end of a reporting period.

Note: In the first year of application, comparative information is not required.

Applies to annual periods beginning on or after 1 July 2011 Mandatory Mandatory Mandatory Optional

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.

Applicable to annual periods beginning on or after 1 January 2012 Mandatory Optional Optional Optional

Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to IFRS 1)

Amends IFRS 1 First-time Adoption of International Financial Reporting Standards to:

  • Replace references to a fixed date of '1 January 2004' with 'the date of transition to IFRSs', thus eliminating the need for companies adopting IFRSs for the first time to restate derecognition transactions that occurred before the date of transition to IFRSs
  • Provide guidance on how an entity should resume presenting financial statements in accordance with IFRSs after a period when the entity was unable to comply with IFRSs because its functional currency was subject to severe hyperinflation.
Applicable to annual periods beginning on or after 1 July 2011 [Note 2] [Note 2] [Note 2] [Note 3]

IAS 19 Employee Benefits (2011)

An amended version of IAS 19 Employee Benefits with revised requirements for pensions and other post-retirement benefits, termination benefits and other changes.

The key amendments include:

  • Requiring the recognition of changes in the net defined benefit liability (asset) including immediate recognition of defined benefit cost, disaggregation of defined benefit cost into components, recognition of remeasurements in other comprehensive income, plan amendments, curtailments and settlements (eliminating the 'corridor approach' permitted by the existing IAS 19)
  • Introducing enhanced disclosures about defined benefit plans
  • Modifying accounting for termination benefits, including distinguishing benefits provided in exchange for service and benefits provided in exchange for the termination of employment and affect the recognition and measurement of termination benefits
  • Clarifying various miscellaneous issues, including the classification of employee benefits, current estimates of mortality rates, tax and administration costs and risk-sharing and conditional indexation features
  • Incorporating other matters submitted to the IFRS Interpretations Committee.
Applicable to annual reporting periods beginning on or after 1 January 2013 Optional Optional Optional Optional

Presentation of Items of Other Comprehensive Income (Amendments to IAS 1)

Amends IAS 1 Presentation of Financial Statements to revise the way other comprehensive income is presented.

The amendments:

  • Preserve the amendments made to IAS 1 in 2007 to require profit or loss and OCI to be presented together, i.e. either as a single 'statement of profit or loss and comprehensive income', or a separate 'statement of profit or loss' and a 'statement of comprehensive income' – rather than requiring a single continuous statement as was proposed in the exposure draft
  • Require entities to group items presented in OCI based on whether they are potentially reclassifiable to profit or loss subsequently. i.e. those that might be reclassified and those that will not be reclassified
  • Require tax associated with items presented before tax to be shown separately for each of the two groups of OCI items (without changing the option to present items of OCI either before tax or net of tax).
Applicable to annual reporting periods beginning on or after 1 July 2012 Optional Optional Optional Optional

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.

Applicable to annual periods beginning on or after 1 January 2013 and interim periods within those periods Optional Optional Optional Optional

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.
Applicable to annual periods beginning on or after 1 January 2014 Optional Optional Optional 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.

Applicable to annual periods beginning on or after 1 January 2013 Optional Optional Optional Optional

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
Applicable to annual periods beginning on or after 1 January 2013 Optional Optional Optional Optional

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.

Issued: 28 June 2012 (news article)

Applicable to annual periods beginning on or after 1 January 2013 Optional Optional Optional Optional

Editorial Corrections (various)

The IASB periodically issues Editorial Corrections and changes to IFRSs and other pronouncements. Since January 2011, such corrections have been made in February 2011, March 2011, April 2011, May 2011, June 2011 (revised October 2011), November 2011 and February 2012.

As minor editorial corrections, these changes are effectively immediately applicable under IFRS See comment in previous column

 

New and revised Interpretations

New or revised pronouncementWhen effectiveApplication at 31 March 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

IFRIC 19 Extinguishing Liabilities with Equity Instruments

Requires the extinguishment of a financial liability by the issue of equity instruments to be measured at fair value (preferably using the fair value of the equity instruments issued) with the difference between the fair value of the instrument issued and the carrying value of the liability extinguished being recognised in profit or loss. The Interpretation does not apply where the conversion terms were included in the original contract (such as in the case of convertible debt) or to common control transactions.

Applies to annual periods beginning on or after 1 July 2010 (applied retrospectively from the beginning of the earliest comparative period presented) [Note 1] [Note 1] [Note 1] Mandatory

IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine

Clarifies the requirements for accounting for stripping costs associated with waste removal in surface mining, including when production stripping costs should be recognised as an asset, how the asset is initially recognised, and subsequent measurement.

The Interpretation requires stripping activity costs which provide improved access to ore are recognised as a non-current 'stripping activity asset' when certain criteria are met. The stripping activity asset is depreciated or amortised on a systematic basis, over the expected useful life of the identified component of the ore body that becomes more accessible as a result of the stripping activity, using the units of production method unless another method is more appropriate.

Applies to annual periods beginning on or after 1 January 2013 Optional Optional Optional Optional

 

Other pronouncements

New or revised pronouncementWhen effectiveApplication at 31 March 2012 to
1st qtrs2nd qtrs3rd qtrsFull yrs

International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs)

This Standard provides an alternative framework that can be applied by eligible entities in place of the full set of International Financial Reporting Standards (IFRSs) on issue.

The IFRS for SMEs is a self-contained Standard, incorporating accounting principles that are based on full IFRSs but that have been simplified to suit the entities within its scope (known as SMEs). By removing some accounting treatments permitted under full IFRSs, eliminating topics and disclosure requirements that are not generally relevant to SMEs, and simplifying requirements for recognition and measurement, the IFRS for SMEs reduces the volume of accounting requirements applicable to SMEs by more than 90 per cent when compared with the full set of IFRSs.

The IASB has not set an effective date for the Standard because the decision as to whether to adopt the IFRS for SMEs (and also, therefore, the timing for adoption) is a matter for each jurisdiction Jurisdiction specific

 Conceptual Framework for Financial Reporting

First phase of the IASB and FASB joint project to develop an improved revised conceptual framework for International Financial Reporting Standards (IFRSs) and US generally accepted accounting practices (US GAAP).

The first phase deals with the objective and qualitative characteristics of financial reporting, incorporating the following chapters:

  • Chapter 1 The objective of financial reporting
  • Chapter 3 Qualitative characteristics of useful financial information
  • Chapter 4 The 1989 Framework: the remaining text.

Note: The Conceptual Framework project is being conducted in phases. As a chapter is finalised, the relevant paragraphs in the 'Framework for the Preparation and Presentation of Financial Statements' that was published in 1989 will be replaced. Chapter 2 will deal with the reporting entity concept.

The Conceptual Framework is not an IFRS and hence does not define standards for any particular measurement or disclosure issue. Nothing in the Conceptual Framework overrides any specific IFRS Effectively applicable on issue

International Financial Reporting Standard (IFRS) Practice Statement Management Commentary

A broad, non-binding framework for the presentation of narrative reporting to accompany financial statements prepared in accordance with IFRSs.

Note: The Practice Statement is not an IFRS. Consequently, entities applying IFRSs are not required to comply with the Practice Statement, unless specifically required by their jurisdiction. Furthermore, non-compliance with the Practice Statement will not prevent an entity's financial statements from complying with IFRSs, if they otherwise do so.

An entity may apply the Practice Statement to management commentary presented prospectively from 8 December 2010 Optional Optional Optional Optional

 

Notes

Note 1. This pronouncement has already been implemented in previous periods by entities with this reporting date (where it applied to the entity).

Note 2. This pronouncement only applies to first-time adopters of IFRSs and must be applied by such entities on a mandatory basis.

Note 3. This pronouncement only applies to first-time adopters of IFRSs and can be optionally applied by such entities.

Note 4. The first tranche has already been implemented, the second tranche must be mandatorily applied for the first time.

Note 5. The amendments to IFRS 3/IAS 27 have already been implemented, the remaining amendments are mandatory.

Note 6. The amendments to IFRS 3/IAS 27 are mandatory, the remaining amendments are optional.

Correction list for hyphenation

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