IAI IFRS Seminar 20160525 Sesi 1 IASB Update

8/15/2019 IAI IFRS Seminar 20160525 Sesi 1 IASB Update

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The views expressed in this presentation are those of the presenter,

not necessarily those of the International Accounting Standards Board (the Board)

or IFRS Foundation.

Copyright © IFRS Foundation. All rights reserved

IFRS® Foundation

IFRS Update

Ian Mackintosh, IASB Vice-Chairman

25 May 2016


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2Session Overview

Progress towards global Standards

Recently Issued IFRS Standards

Forthcoming IFRS Standards

The Conceptual Framework

Forthcoming Amendments and IFRIC Interpretations

Agenda Consultation and Trustees Review


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3Progress towards global Standards

143 jurisdictions researched to date


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IFRS Foundation

Recently issued IFRS Standards- IFRS 9: Financial Instruments

- IFRS 15: Revenue from Contracts with Customers

- IFRS 16: Leases



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5IFRS 9: Financial Instruments

Status

• IFRS 9 issued in July 2014

• Effective date 1 January 2018; early application permitted

Key Effects

Single classification and

measurement approach forfinancial assets

Will reflect the business model in which

they are managed and their cash flowcharacteristics

Forward looking expected creditloss model

Will result in more timely recognition of

loan losses

Will better link the economics of risk

management with its accounting treatment

Improved hedge accountingmodel


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6

IFRS 15: Revenue from Contractswith Customers

Status

• IFRS 15 issued in May 2014• Clarifications to IFRS 15 issued in April 2016

• Effective date 1 January 2018; early application permitted

Key Effects

Introduces a single

comprehensive framework forrevenue recognition across

sectors and industries

Nature and extent of change will varybetween industries

More useful disclosuresWill help investors understand the nature,

amount, timing and uncertainty of revenue

and related cash flows


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7IFRS 16: Leases

Status

• Issued in January 2016• Effective date 1 January 2019; early application permitted if IFRS 15 is also

applied

Key Effects

Lessees: Right-of-use assets

and lease liabilities recognisedfor almost1 all leases

Increase in non-current assets and financialliabilities

Lessees: Operating lease ‘rent’replaced by depreciation and

interest

Decrease in operating expenses/cash flows

Increase in finance expenses/cash flows

Lessors: some additionaldisclosure

Improved information on residual asset risk

1Exemptions for short-term leases and leases of low-value assets


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IFRS Foundation

Upcoming IFRS Standards- Upcoming IFRS Standard: Insurance Contracts

- Amendments to IFRS 4: Different effective dates of IFRS9 and the new insurance contracts Standard



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9Insurance Contracts 9

Status

• Board has completed planned technical discussions• Publication targeted for around the end of 2016

Key Effects

• Information about:

• the effect of insurance contracts on financial

performance• sources of profits or losses through underwriting activityand investing premiums from customers

• the nature and extent of risks from insurance contracts

Improved

quality(relevance andtransparency)

• Easier to make comparisons between insurancecontracts and other types of contracts

• Replaces huge variety of accounting treatments thatdepend on type of contract and type of company thatissues the contracts

Improvedcomparability


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10 Amendments to IFRS 4 10

Different effective dates of IFRS 9 and the new insurance contracts Standard

Status

• Planned technical discussions completed in May 2016

• Publication targeted for September 2016

Expected effect of amendments

• Introduces two approaches to address concerns about the different

effective dates of IFRS 9 and the new insurance contracts standard A temporary exemption from

applying IFRS 9

• An option available for reportingentities considered as insurers

• Results in an entity applying IAS39to all of its financial instruments

• Only for a limited period

An overlay approach

• An option available to all entitiesissuing IFRS 4 contracts andapplying IFRS 9

• Results to reclassify from P&L toOCI the incremental volatility thatarises when IFRS 9 is applied withIFRS 4


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IFRS Foundation

The Conceptual Framework



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12The Conceptual Framework 12

Status

• Board redeliberating the May 2015 Exposure Draft: Conceptual Frameworkfor Financial Reporting

What does the Conceptual Framework do?

• Assist the Board to develop IFRS Standard

• Assist preparers to develop consistent accounting policies

• Assist others to understand and interpret IFRS Standards

Provides apractical tool

• The new Conceptual Framework will affect future IFRS Standards developed by

the Board

Underpinsdecisions

• What is the objective of financial reporting?

• What makes financial information useful?

• What are assets, liabilities, equity, income and expenses, when should they be

recognised and how should they be measured, presented and disclosed?

Addressesfundamental

issues


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IFRS Foundation

Forthcoming Amendments and IFRICInterpretations- Amendments to IAS 40: Transfers of Investment Property

- Amendments to IAS 19 and IFRIC 14: Remeasurement on aplan amendment, curtailment or settlement and availability of arefund from a defined benefit plan

-IFRIC Interpretation: Uncertainty over income tax treatments

-IFRIC Interpretation: Foreign currency translations and advanceconsideration



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IFRS Foundation

Board’s Agenda Consultation

Trustees’ Review of Structureand Effectiveness



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15 Agenda Consultation

• More than 110 comment letters, discussed in 30+ forums

• Respondents want us to focus now on: – Finishing insurance contracts and Conceptual Framework; should

(and did!) finish leases

– Improving communication of financial information: eg Principles of

Disclosure and Primary Financial Statements

– Implementation and maintenance, and period of calm

• Most respondents like our evidence-based approach (research

programme) and post-implementation reviews

• IASB to set draft work plan (May 2016), receive input from IFRS

Advisory Council and ASAF (June / July), then finalise


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176Contact us 17

Documents

IAI IFRS Seminar 20160525 Sesi 1 IASB Update