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New and revised pronouncements as at 30 September 2014

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18 Dec 2014

Our popular summary of new and revised financial reporting requirements, updated for financial reporting periods ending on 30 September 2014. This listing can be used to perform a quick check that all the 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.

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

The information below reflects developments to 18 December 2014 and will be updated through to December 2014 to reflect new and revised financial reporting requirements that need to be considered for financial reporting periods ending on 30 September 2014.

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 2014, for various quarterly reporting periods:

PronouncementEffective date*Mandatory at 30 September 2014?
1st qtrs2nd qtrs3rd qtrsFull yrs
NEW OR REVISED STANDARDS
IFRS 10 Consolidated Financial Statements
1 January 2013# ** ** ** Yes
IFRS 11 Joint Arrangements
1 January 2013# ** ** ** Yes
IFRS 12 Disclosure of Interests in Other Entities
1 January 2013# ** ** ** Yes
IFRS 13 Fair Value Measurement
1 January 2013 ** ** ** Yes
IAS 19 Employee Benefits
1 January 2013 ** ** ** Yes
IAS 27 Separate Financial Statements (2011)
1 January 2013# ** ** ** Yes
IAS 28 Investments in Associates and Joint Ventures (2011)
1 January 2013# ** ** ** Yes
AMENDMENTS
Disclosures — Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7)
1 January 2013 ** ** ** Yes
Government Loans (Amendments to IFRS 1)
1 January 2013 ** ** ** Yes
Annual Improvements 2009-2011 Cycle
1 January 2013 ** ** ** Yes
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance
1 January 2013# ** ** ** Yes
Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32)
1 January 2014 Yes Yes Yes -
Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
1 January 2014 Yes Yes Yes -
Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36)
1 January 2014 Yes Yes Yes -
Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39)
1 January 2014 Yes Yes Yes -
Defined Benefit Plans: Employee Contributions (Amendments to IAS 19)
1 July 2014 Yes - - -
Annual Improvements 2010-2012 Cycle
1 July 2014 Yes - - -
Annual Improvements 2011-2013 Cycle
1 July 2014 Yes - - -
INTERPRETATIONS
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
1 January 2013 ** ** ** Yes
IFRIC 21 Levies
1 January 2014# Yes 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).

# IFRS 10, IFRS 11, IFRS 12, IAS 27 (2011) and IAS 28 (2011), and the subsequent amendments made by Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance, have been endorsed for use in the European Union to apply to financial years starting on or after 1 January 2014. IFRIC 21 Levies applies in the European Union from 17 June 2014 (being 3 days after publication of EU endorsement in the EU Official Journal). In addition, other pronouncements not listed on this table also apply in the European Union at later dates than made by the IASB, e.g. Deferred Tax: Recovery of Underlying Assets (Amendments to IAS 12) and Severe Hyperinflation and Removal of Fixed dates for first time adopters - (Amendments to IFRS 1) apply in the EU from 1 January 2013 - details about these pronouncements can be found in earlier editions of this resource.

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 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, 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


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)

First quarters ending 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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)

First quarters ending 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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)

First quarters ending 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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: 19 November 2013

Effective date:

Effective for annual periods beginning on or after 1 January 2018

First quarters ending 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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.

Issued: 12 May 2011

Effective date:

Applicable to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 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.

Issued: 12 May 2011

Effective date:

Applicable to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 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.

Issued: 12 May 2011

Effective date:

Applicable to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 2014:

Mandatory


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

Effective date:

Applicable to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 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

Effective date:

Applicable to an entity's first annual IFRS financial statements for a period beginning on or after 1 January 2016

First quarters ending 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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 2017

First quarters ending 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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

Effective date:

Applicable to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 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.

Issued: 12 May 2011

Effective date:

Applicable to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 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.

Issued: 12 May 2011

Effective date:

Applicable to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 2014:

Mandatory


 

 

Amendments


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

Effective date:

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

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 2014:

Mandatory


Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32)

Amends IAS 32 Financial Instruments: Presentation to clarify certain aspects because of diversity in application of the requirements on offsetting, focused on four main areas:

  • the meaning of 'currently has a legally enforceable right of set-off'
  • the application of simultaneous realisation and settlement
  • the offsetting of collateral amounts
  • the unit of account for applying the offsetting requirements.

Issued: 16 December 2011

Effective date:

Applicable to annual periods beginning on or after 1 January 2014

First quarters ending 30 September 2014:

Mandatory

Second quarters ending 30 September 2014:

Mandatory

Third quarters ending 30 September 2014:

Mandatory

Annual periods ending 30 September 2014:

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

Effective date:

Applicable to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 2014:

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


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

Effective date:

Applicable to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 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.

Issued: 28 June 2012

Effective date:

Applicable to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 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

Effective date:

Applicable to annual periods beginning on or after 1 January 2014

First quarters ending 30 September 2014:

Mandatory

Second quarters ending 30 September 2014:

Mandatory

Third quarters ending 30 September 2014:

Mandatory

Annual periods ending 30 September 2014:

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

Effective date:

Applicable to annual periods beginning on or after 1 January 2014

First quarters ending 30 September 2014:

Mandatory

Second quarters ending 30 September 2014:

Mandatory

Third quarters ending 30 September 2014:

Mandatory

Annual periods ending 30 September 2014:

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

Effective date:

Applicable to annual periods beginning on or after 1 January 2014

First quarters ending 30 September 2014:

Mandatory

Second quarters ending 30 September 2014:

Mandatory

Third quarters ending 30 September 2014:

Mandatory

Annual periods ending 30 September 2014:

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.

Issued: 21 November 2013

Effective date:

Applicable to annual periods beginning on or after 1 July 2014

First quarters ending 30 September 2014:

Mandatory

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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

Effective date:

Applicable to annual periods beginning on or after 1 July 2014

First quarters ending 30 September 2014:

Mandatory

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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

Effective date:

Applicable to annual periods beginning on or after 1 July 2014

First quarters ending 30 September 2014:

Mandatory

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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

Effective date:

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

First quarters ending 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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

First quarters ending 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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 July 2016

First quarters ending 30 September 2014:

Optional

Second quarters ending 30 September 2014:

Optional

Third quarters ending 30 September 2014:

Optional

Annual periods ending 30 September 2014:

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 2014:

Optional

Second quarters ending 31 December 2014:

Optional

Third quarters ending 31 December 2014:

Optional

Annual periods ending 31 December 2014:

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.

First quarters ending 31 December 2014:

Optional

Second quarters ending 31 December 2014:

Optional

Third quarters ending 31 December 2014:

Optional

Annual periods ending 31 December 2014:

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, March 2014, September 2014 and December 2014.

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


 

New and revised Interpretations


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

Effective date:

Applies to annual periods beginning on or after 1 January 2013

First quarters ending 30 September 2014:

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

Second quarters ending 30 September 2014:

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

Third quarters ending 30 September 2014:

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

Annual periods ending 30 September 2014:

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.

Issued: 20 May 2013

Effective date:

Applies to annual periods beginning on or after 1 January 2014

First quarters ending 30 September 2014:

Mandatory

Second quarters ending 30 September 2014:

Mandatory

Third quarters ending 30 September 2014:

Mandatory

Annual periods ending 30 September 2014:

Optional


 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.