The IFRSs on revenue and financial instruments are effective from January 2018. Are you ready for them?
The IFRSs on revenue and financial instruments are effective from January 2018.
The impact of IFRS 9 Financial Instruments is significant on the banking industry, but also on other sectors. The standard introduces new criteria for how to classify a financial asset, which now requires assessment of contractual cash flows and of how the investment is managed. It also introduces an impairment model based on forward-looking information and on expected credit losses. Additionally, it brings a new hedge accounting model that is aligned with risk management.
IFRS 15 Revenue from Contracts with Customers, the new revenue standard, introduces a new model for how and when to recognise revenue. It's likely to affect all companies that have revenue streams.
IFRS 16 Leases, which is effective for annual periods beginning on or after 1 January 2019 (early adoption permitted), requires recognition of most leases on the balance sheet. It changes the accounting treatment of leases by lessees substantially. Early adoption is permitted if done at the same time as the entity applies IFRS 15.
The new insurance contract standard (IFRS 17) brings fundamental changes to international insurance accounting.
Please find below our websites dedicated to the new standards. You can also find the effective dates of IFRS in the EU and outside the EU in our IFRS Calendar.