This edition covers current developments released prior to December 31, 2017.
What happened this quarter?
This quarter, the International Accounting Standards Board (IASB) issued Annual Improvements to IFRS Standards (2015-2017) Cycle which proposes narrow scope amendments to several standards, Prepayment Features with Negative Compensation (Amendments to IFRS 9), and Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28).
During the year, the IASB issued IFRS 17 Insurance Contracts, effective January 1, 2021, IFRIC Interpretation 23 Uncertainty over Income Tax Treatments, effective January 1, 2019, and a Materiality Practice Statement which provides non-mandatory guidance on applying materiality in the financial statements.
Additionally, the IASB issued a number of exposure drafts, including proposed amendments to IAS 16 Property, Plant and Equipment to clarify the accounting for sale proceeds before an asset becomes available for use, proposed clarifications to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; and proposed minor amendments to IAS 1 Presentation of Financial Statements and IAS 8 on the definition of 'material'.
Also, the IASB issued its discussion paper with respect to the Disclosure Initiative: Principles of Disclosure.
As a reminder, the effective date for the IASB's new Revenue and Financial Instruments is finally here. IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments are effective January 1, 2018. The effective date of the new leases standard, IFRS 16, is also rapidly approaching being effective January 1, 2019.
As companies prepare their 2017 annual financial statements (assuming a calendar year end) it is imperative to remember that there is an expectation from regulators and investors, and a requirement under the accounting framework, that detailed and entity-specific disclosures will be provided with respect to the impact of the new standards, and the adoption and implementation efforts. These disclosures should include both qualitative and quantitative data and should be sufficiently robust to provide users with decision useful information. Even for those entities that anticipate little change to the statement of financial position or statement of profit or loss, the changes related to disclosures may be material. When assessing the impact of the new standards, entities should consider possible changes to recognition, measurement, presentation, and disclosures.