This edition covers current developments and upcoming standards released prior to March 31, 2016.
Companies that have calendar year ends and are preparing interim financial statements will need to consider newly effective standards. Further information on these amendments are provided in the section ‘StandardsEffective Within the Coming Year’.
In the first quarter of 2016, the IASB issued Amendments to IAS 7 Cash Flows and IAS 12 Income tax which are effective for annual periods beginning on or after January 1, 2017.
In January, the IASB issued its final lease accounting standard which requires companies to bring most leases on balance sheet – a significant change from current IFRS. While the standard is not effective until 2019, companies that have adopted IFRS 15 Revenue from Contracts with Customers may early adopt the new leases standard.
With the New Standards on financial instruments and revenue being effective in 2018, and with the new leases standard being effective in 2019, companies might want to begin the implementation effort as soon as possible to put the company in the best possible position for a successful transition.