Blog Article

IFRS: Hot Topics 2017

Wednesday 25 January 2017

2017 is critical for preparers to finalise their detailed plans for applying in 2018 two key Standards, IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers. Published in 2014, the long lead times for implementation reflect the complexities for sectors such as financial services and telecoms. But all IFRS preparers are affected to some extent and time is running out.

For example, which transition approaches will you follow? Full retrospective application involves restating the balance sheet at 1 January 2017 for those that report for calendar years. If a modified retrospective approach is taken, adjustments are required on 1 January 2018. These standards (as well as IFRS 16 Leases) also offer practical expedients aimed at simplifying accounting by reducing cost and complexity; which of these do you intend to use? And it is now time to consider the impact of a new disclosure climate; how much disclosure is relevant in your case and what are the systems implications?

IFRS 16 follows (mandatory for annual periods beginning on or after 1 January 2019) but requires implementation planning this year. Will you use the recognition exemptions for short-term leases (available by class of underlying asset) and/or for leases of low-value assets (elect asset-by-asset)? Transition approaches and practical expedients must also be decided on and once more new disclosure requirements apply. While it may be that some businesses will not see significant changes in recognition and measurement under IFRSs 9 and 15, capitalisation of current operating leases will impact nearly all financial statements, with implications for financial covenants, investor communications and even perhaps the terms of new leases.

As well as our comprehensive two-day Technical Update course which covers all these new Standards, IASeminars has also developed standalone two day programs on each of IFRS 9, 15 and 16. These are offered throughout 2017 in different regions. 2017 is the year for training on these important Standards.

2017 is a year of relative calm for applying changes. Narrow scope amendments to three Standards must be implemented:

  1. IAS 7 - Statement of Cash Flows - part of the Disclosure Initiative
  2. IAS 12 - Income Taxes: Recognition of Deferred Tax Assets for Unrealised Losses
  3. IFRS 12 - Disclosure of Interests in Other Entities: clarification of IFRS 12's scope

2017 will also see the long awaited Standard on insurance contracts, IFRS 17. Publication is expected in May, mandatory for 2021. Other than IFRS 17, the IASB's Work Plan mainly involves developing aspects of its Disclosure Initiative and completing the revised Conceptual Framework.

2017 is a year for preparation (and training).

With this in mind, IASeminars offers a range of courses which look in detail at these topics:

Contact Us today to discuss your training requirements, we will help you to identify the correct course for your needs!

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