This edition covers current developments released prior to September 30, 2017.
What happened this quarter?
In September 2017, the International Accounting Standards Board (IASB) issued two exposure drafts; the first proposes clarifications to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; and the second proposes minor amendments to IAS 1 Presentation of Financial Statements and IAS 8 on the definition of 'material'.
Additionally, the IASB issued a Materiality Practice Statement which provides non-mandatory guidance on applying materiality in the financial statements.
In the first quarter of 2017, the IASB issued two exposure drafts, Annual Improvements to IFRS Standards 2015-2017 Cycle, which proposes narrow scope amendments to several standards, and Improvements to IFRS 8 Operating Segments, which proposes amendments to IFRS 8 and IAS 34 Interim Financial Reporting. Additionally, the IASB issued its discussion paper with respect to the Disclosure Initiative: Principles of Disclosure.
In the second quarter, the IASB issued IFRS 17 Insurance Contracts, effective January 1, 2021 and IFRIC Interpretation 23 Uncertainty over Income Tax Treatments, effective January 1, 2019. Additionally, the IASB issued two exposure drafts; the first proposes narrow-scope amendments to IFRS 9 for Prepayment Features with Negative Compensation; and the second proposes targeted amendments to IAS 16 Property, Plant and Equipment to clarify the accounting for sale proceeds before an asset becomes available for use.
As a reminder, the effective dates of three new standards are rapidly approaching: IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers are effective January 1, 2018 and IFRS 16 Leases is effective January 1, 2019.
As the effective dates for the standards approach, communication and disclosure of their expected impact on the financial statements are required as per IAS 8 and are expected by investors and regulators.
The level of disclosure is expected to be more reliable and progressively more detailed throughout 2017, with the expectation that the 2017 annual statements will include quantitative and qualitative information about the impact of the application and changes to the amounts reported under current GAAP, specifically for IFRS 9 and IFRS 15.