New and revised pronouncements as at 30 June 2019
07 Jun 2019
Our popular summary of new and revised financial reporting requirements, updated for financial reporting periods ending on 30 June 2019. 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 30 June 2019 would mean that the annual reporting period began on 1 April 2019. Similarly, 2nd quarters ending on 30 June 2019 refer to annual periods that began on 1 January 2019, 3rd quarters ending on 30 June 2019 refer to annual periods that began on 1 October 2018, and 4th quarters ending on 30 June 2019 refer to annual periods that began on 1 July 2018.
The information below reflects developments to 26 September 2019 and will be updated through to September 2019 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 30 June 2019. For accounts approved after June 2019, 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
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 30 June 2019, for various quarterly reporting periods:
| Pronouncement | Effective date* | Mandatory at 30 June 2019? | |||
|---|---|---|---|---|---|
| 1st qtrs | 2nd qtrs | 3rd qtrs | Full yrs | ||
| STANDARDS | |||||
| IFRS 9 Financial Instruments | 1 January 2018 | ** | ** | Yes | Yes |
|
IFRS 15 Revenue from Contracts with Customers
|
1 January 2018 | ** | ** | Yes | Yes |
|
IFRS 16 Leases
|
1 January 2019 | Yes | Yes | - | - |
| INTERPRETATIONS | |||||
| IFRIC 22 Foreign Currency Transactions and Advance Consideration | 1 January 2018 | ** | ** | Yes | Yes |
| IFRIC 23 Uncertainty over Income Tax Treatments | 1 January 2019 | Yes | Yes | - | - |
| AMENDMENTS | |||||
|
Clarifications to IFRS 15 'Revenue from Contracts with Customers'
|
1 January 2018 | ** | ** | Yes | Yes |
|
Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2)
|
1 January 2018 | ** | ** | Yes | Yes |
|
Applying IFRS 9 'Financial Instruments' with IFRS 4 'Insurance Contracts' (Amendments to IFRS 4)
|
1 January 2018 | Optional° | Optional° | Optional° | Optional° |
|
Transfers of Investment Property (Amendments to IAS 40)
|
1 January 2018 | ** | ** | Yes | Yes |
|
Annual Improvements to IFRS Standards 2014–2016 Cycle (Amendments to IFRS 1 and IAS 28)
|
1 January 2018 | ** | ** | Yes | Yes |
|
Prepayment Features with Negative Compensation (Amendments to IFRS 9)
|
1 January 2019 | Yes | Yes | - | - |
|
Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28)
|
1 January 2019 | Yes | Yes | - | - |
|
Annual Improvements to IFRS Standards 2015–2017 Cycle
|
1 January 2019 | Yes | Yes | - | - |
|
Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)
|
1 January 2019 | 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).
° The application of both approaches (overlay approach/ deferral approach) is optional and an entity is permitted to stop applying them before the new insurance contracts standard is applied.
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:
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
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)
Effective date:
Effective for annual periods beginning on or after 1 January 2018
First quarters ending 30 June 2019:
Second quarters ending 30 June 2019:
Third quarters ending 30 June 2019:
Mandatory
Annual periods ending 30 June 2019:
Mandatory
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.
Effective date:
Applicable to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2018
First quarters ending 30 June 2019:
Second quarters ending 30 June 2019:
Third quarters ending 30 June 2019:
Mandatory
Annual periods ending 30 June 2019:
Mandatory
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.
Effective date:
Applicable to annual reporting periods beginning on or after 1 January 2019
First quarters ending 30 June 2019:
Mandatory
Second quartersending 30 June 2019:
Mandatory
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
IFRS 17 Insurance Contracts
IFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. IFRS 17 supersedes IFRS 4 Insurance Contracts as of 1 January 2021.
Effective date:
Applicable to annual reporting periods beginning on or after 1 January 2021
Not yet endorsed for use in the EU.
First quarters ending 30 June 2019:
Optional
Second quarters ending 30 June 2019:
Optional
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
New or revised interpretations
IFRIC 22 Foreign Currency Transactions and Advance Consideration
The interpretation addresses foreign currency transactions or parts of transactions where:
- there is consideration that is denominated or priced in a foreign currency;
- the entity recognises a prepayment asset or a deferred income liability in respect of that consideration, in advance of the recognition of the related asset, expense or income; and
- the prepayment asset or deferred income liability is non-monetary.
The Interpretations Committee came to the following conclusion:
- The date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability.
- If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.
Effective date:
Applicable to annual reporting periods beginning on or after 1 January 2018
First quarters ending 30 June 2019:
Second quarters ending 30 June 2019:
Third quarters ending 30 June 2019:
Mandatory
Annual periods ending 30 June 2019:
Mandatory
IFRIC 23 Uncertainty over Income Tax Treatments
The interpretation addresses the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12. It specifically considers:
- Whether tax treatments should be considered collectively
- Assumptions for taxation authorities' examinations
- The determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates
- The effect of changes in facts and circumstances
Effective date:
Applicable to annual reporting periods beginning on or after 1 January 2019
First quarters ending 30 June 2019:
Mandatory
Second quarters ending 30 June 2019:
Mandatory
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
Amendments
Clarifications to IFRS 15 'Revenue from Contracts with Customers'
Amends IFRS 15 Revenue from Contracts with Customers to clarify three aspects of the standard (identifying performance obligations, principal versus agent considerations, and licensing) and to provide some transition relief for modified contracts and completed contracts.
Effective date:
Effective for annual periods beginning on or after 1 January 2018
First quarters ending 30 June 2019:
Second quarters ending 30 June 2019:
Third quarters ending 30 June 2019:
Mandatory
Annual periods ending 30 June 2019:
Mandatoy
Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2)
Amends IFRS 2 Share-based Payment to clarify the standard in relation to the accounting for cash-settled share-based payment transactions that include a performance condition, the classification of share-based payment transactions with net settlement features, and the accounting for modifications of share-based payment transactions from cash-settled to equity-settled.
Effective date:
Effective for annual periods beginning on or after 1 January 2018
First quarters ending 30 June 2019:
Second quarters ending 30 June 2019:
Third quarters ending 30 June 2019:
Mandatory
Annual periods ending 30 June 2019:
Mandatory
Applying IFRS 9 'Financial Instruments' with IFRS 4 'Insurance Contracts' (Amendments to IFRS 4)
Amends IFRS 4 Insurance Contracts provide two options for entities that issue insurance contracts within the scope of IFRS 4:
- an option that permits entities to reclassify, from profit or loss to other comprehensive income, some of the income or expenses arising from designated financial assets; this is the so-called overlay approach;
- an optional temporary exemption from applying IFRS 9 for entities whose predominant activity is issuing contracts within the scope of IFRS 4; this is the so-called deferral approach.
The application of both approaches is optional and an entity is permitted to stop applying them before the new insurance contracts standard is applied.
Effective date:
Overlay approach to be applied when IFRS 9 is first applied. Deferral approach effective for annual periods beginning on or after 1 January 2018 and only available for three years after that date.
First quarters ending 30 June 2019:
Optional
Second quarters ending 30 June 2019:
Optional
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
Transfers of Investment Property (Amendments to IAS 40)
The amendments to IAS 40 Investment Property:
- Amends paragraph 57 to state that an entity shall transfer a property to, or from, investment property when, and only when, there is evidence of a change in use. A change of use occurs if property meets, or ceases to meet, the definition of investment property. A change in management’s intentions for the use of a property by itself does not constitute evidence of a change in use.
- The list of examples of evidence in paragraph 57(a) – (d) is now presented as a non-exhaustive list of examples instead of the previous exhaustive list.
Effective date:
Effective for annual periods beginning on or after 1 January 2018
First quarters ending 30 June 2019:
Second quarters ending 30 June 2019:
Third quarters ending 30 June 2019:
Mandatory
Annual periods ending 30 June 2019:
Mandatory
Annual Improvements to IFRS Standards 2014–2016 Cycle
Makes amendments to the following standards:
- IFRS 1 - Deletes the short-term exemptions in paragraphs E3–E7 of IFRS 1, because they have now served their intended purpose
- IFRS 12 - Clarifies the scope of the standard by specifying that the disclosure requirements in the standard, except for those in paragraphs B10–B16, apply to an entity’s interests listed in paragraph 5 that are classified as held for sale, as held for distribution or as discontinued operations in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
- IAS 28 - Clarifies that the election to measure at fair value through profit or loss an investment in an associate or a joint venture that is held by an entity that is a venture capital organisation, or other qualifying entity, is available for each investment in an associate or joint venture on an investment-by-investment basis, upon initial recognition
Effective date:
The amendments to IFRS 1 and IAS 28 are effective for annual periods beginning on or after 1 January 2018, the amendment to IFRS 12 was effective for annual periods beginning on or after 1 January 2017 and has already been implemented in previous periods
First quarters ending 30 June 2019:
Second quarters ending 30 June 2019:
Third quarters ending 30 June 2019:
Mandatory for IFRS 1 and IAS 28
Annual periods ending 30 June 2019:
Mandatory for IFRS 1 and IAS 28
Prepayment Features with Negative Compensation (Amendments to IFRS 9)
Amends the existing requirements in IFRS 9 regarding termination rights in order to allow measurement at amortised cost (or, depending on the business model, at fair value through other comprehensive income) even in the case of negative compensation payments.
Effective date:
Annual periods beginning on or after 1 January 2019
First quarters ending 30 June 2019:
Mandatory
Second quarters ending 30 June 2019:
Mandatory
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28)
Clarifies that an entity applies IFRS 9 Financial Instruments to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied.
Effective date:
Annual periods beginning on or after 1 January 2019
First quarters ending 30 June 2019:
Mandatory
Second quarters ending 30 June 2019:
Mandatory
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
Annual Improvements to IFRS Standards 2015–2017 Cycle
Makes amendments to the following standards:
- IFRS 3 and IFRS 11 - The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a joint operation, it remeasures previously held interests in that business. The amendments to IFRS 11 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interests in that business.
- IAS 12 - The amendments clarify that the requirements in the former paragraph 52B (to recognise the income tax consequences of dividends where the transactions or events that generated distributable profits are recognised) apply to all income tax consequences of dividends by moving the paragraph away from paragraph 52A that only deals with situations where there are different tax rates for distributed and undistributed profits.
- IAS 23 - The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings.
Effective date:
Annual periods beginning on or after 1 January 2019
First quarters ending 30 June 2019:
Mandatory
Second quarters ending 30 June 2019:
Mandatory
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)
The amendments in Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) are:
- If a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the net interest for the period after the remeasurement are determined using the assumptions used for the remeasurement.
- In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling.
Effective date:
Annual periods beginning on or after 1 January 2019
First quarters ending 30 June 2019:
Mandatory
Second quarters ending 30 June 2019:
Mandatory
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
Amendments to References to the Conceptual Framework in IFRS Standards
Together with the revised Conceptual Framework published in March 2018, the IASB also issued Amendments to References to the Conceptual Framework in IFRS Standards. The document contains amendments to IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, and SIC-32. Not all amendments, however update those pronouncements with regard to references to and quotes from the framework so that they refer to the revised Conceptual Framework. Some pronouncements are only updated to indicate which version of the framework they are referencing to (the IASC framework adopted by the IASB in 2001, the IASB framework of 2010, or the new revised framework of 2018) or to indicate that definitions in the standard have not been updated with the new definitions developed in the revised Conceptual Framework.
Effective date:
Annual periods beginning on or after 1 January 2020
Not yet endorsed for use in the EU.
First quarters ending 30 June 2019:
Optional
Second quarters ending 30 June 2019:
Optional
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
Definition of a Business (Amendments to IFRS 3)
The amendments in Definition of a Business (Amendments to IFRS 3) are changes to Appendix A Defined terms, the application guidance, and the illustrative examples of IFRS 3 only. They:
- clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs;
- narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by removing the reference to an ability to reduce costs;
- add guidance and illustrative examples to help entities assess whether a substantive process has been acquired;
- remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produce outputs; and
- add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business.
Effective date:
Business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 January 2020
Not yet endorsed for use in the EU.
First quarters ending 30 June 2019:
Optional
Second quarters ending 30 June 2019:
Optional
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
Definition of Material (Amendments to IAS 1 and IAS 8)
The amendments in Definition of Material (Amendments to IAS 1 and IAS 8)clarify the definition of ‘material’ and align the definition used in the Conceptual Framework and the standards.
Effective date:
Annual reporting periods beginning on or after 1 January 2020
Not yet endorsed for use in the EU.
First quarters ending 30 June 2019:
Optional
Second quarters ending 30 June 2019:
Optional
Third quarters ending 30 June 2019:
Optional
Annual periods ending 30 June 2019:
Optional
Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)
The amendments in Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) clarify that entities would continue to apply certain hedge accounting requirements assuming that the interest rate benchmark on which the hedged cash flows and cash flows from the hedging instrument are based will not be altered as a result of interest rate benchmark reform.
Effective date:
Annual reporting periods beginning on or after 1 January 2020
Not yet endorsed for use in the EU.
First quarters ending 30 September 2019:
Optional
Second quarters ending 30 September 2019:
Optional
Third quarters ending 30 September 2019:
Optional
Annual periods ending 30 September 2019:
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, December 2015, March 2016, May 2016, September 2016, December 2016, September 2017, November 2017, December 2018, February 2019, and May 2019.
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
See comment in previous column
