IFRS for Real Estate | KPMG | LU

IFRS for Real Estate

IFRS for Real Estate

IFRS requirements are evolving, especially for real estate sector! Are you good to go?

IFRS requirements are evolving, especially for real estate sector! Are you good to go?

The International Accounting Standards Board (IASB) has issued new accounting standards (IFRS 9, IFRS 15, and IFRS 16) that bring unique challenges—in particular to the real estate sector. Additionally, regulators expect issuers to provide certain entity-specific qualitative and quantitative information about the impact of these new standards.

IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement and introduces new guidance for classification and measurement, impairment of financial instruments, and hedge accounting. IFRS 15 Revenue from Contracts with Customers introduces a new recognition model for contracts with customers and extensive new disclosure requirements, some of which will have a notable impact within the global real estate sector. IFRSs 9 and 15 are effective for annual periods beginning on or after 1 January 2018.

IFRS 16 Leases, which is effective for annual periods beginning on or after 1 January 2019 (early adoption permitted), requires lessees to recognise new assets and liabilities using an on-balance-sheet accounting model that is similar to current finance lease accounting.

KPMG Luxembourg has created this site to assist real estate companies with how to address and deal with the IFRS requirements, which are expected to evolve and to continue affecting the real estate sector in the coming years.

If you would like an overview of the effective dates for IFRS inside and outside the EU, have a look at our IFRS Calendar. Please find also our Guides to IFRS financial statements.

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