IFRS

At Deloitte we have the expertise to help you navigate the way forward. Our audit and technical accounting professionals provide assurance and advisory services to clients in a wide range of industries and up-to-date advice on the latest technical accounting issues affecting organisations. We have also developed useful resources to assist you in achieving compliance with today’s complex and rapidly changing financial reporting requirements.

Resources for adopting new standards

A Closer Look — Financial instrument disclosures when applying Interest Rate Benchmark Reform – Phase 1 amendments to IFRS 9 and IAS 39 and Phase 2 amendments to IFRS 9, IAS 39, IFRS 4 and IFRS 16

This publication addresses financial instrument disclosures when applying the IBOR amendments.

A Closer Look — Revenue recognition - evaluating whether an entity is acting as a principal or as an agent

In April 2016, the IASB issued Clarifications to IFRS 15 which amended the principal-versus-agent implementation guidance and illustrations in IFRS 15 to clarify how the principal-versus-agent indicators should be evaluated to support an entity’s conclusion that it controls a specified good or service before it is transferred to a customer. However, given the complexities of some arrangements, including those involving three or more parties, the evaluation of whether an entity is acting as a principal or as an agent continues to require significant judgement, and conclusions reached under IAS 18 may not be the same as those reached under IFRS 15.

Revenue from contracts with customers – a guide to IFRS 15

This guide is intended to assist preparers and users of financial statements to understand the impact of IFRS 15 and includes a high level summary of the new requirements along with more detailed guidance on the important issues, choices available for entities on transition, and illustrative disclosures.

Thinking Allowed – The new lease accounting

This publication explains the new requirements of NZ IFRS 16 Leases and gives you some tools for assessing how your financial statements are likely to be affected. It identifies the areas where judgement will be required, including identifying whether a contract contains a lease or a service agreement (or both), evaluating the impact of renewal options, and determining the discount rate.

Leases - A guide to IFRS 16

This guide, in addition to providing a detailed summary and explanation of the requirements of IFRS 16, includes a section focusing specifically on the practicalities of transition and presentation/disclosure checklists.

A guide to the incremental borrowing rate – Assessing the impact of IFRS 16 Leases

Adoption of IFRS 16 will result in a significant number of companies bringing operating leases onto their balance sheets and changing the way in which lease-related expenses are recorded in their income statements. The discount rate assumption is one of the most important judgements that management will need to make and the one which may have the largest quantitative impact on the lease asset and liability valuations. This guide sets out how companies could meet the requirement to determine appropriate discount rates at transition and on an ongoing basis.

A Closer Look — Measurement of expected credit losses for intercompany loan assets with no documented contractual term

This publication focuses on how to assess the expected credit loss of an intercompany loan asset with no stated terms in separate financial statements.

A Closer Look — Applying the expected credit loss model to trade receivables using a provision matrix

The first half of this publication considers the new accounting requirements for impairment of financial assets and the second half suggests a potential way of applying a provision matrix approach in practice.

A Closer Look — Impact of transition from IAS 39 to IFRS 9 on the exchange or modification of financial liabilities

The accounting for certain modifications and exchanges of financial liabilities measured at amortised cost (e.g. bank loans and issued bonds) will change on transition from IAS 39 Financial Instruments: Recognition and Measurement to IFRS 9 Financial Instruments. This change arises from a clarification by the IASB in the Basis for Conclusions of the amendments to IFRS 9 Prepayment Features with Negative Compensation issued on 12 October 2017. The IFRS 9 accounting treatment is applicable from 1 January 2018 (the effective date of IFRS 9, or earlier if IFRS 9 is adopted early) and will need to be applied retrospectively to all affected financial liabilities that continue to be recognised on transition from IAS 39. This will result in a transition adjustment and a change to the effective interest rate for the financial liabilities affected.

IFRS in Focus – Disclosing the adoption of new accounting standards in interim financial statements

Both IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers are mandatorily effective for annual reporting periods beginning on or after 1 January 2018. IFRS 16 Leases is also available for early adoption. For many entities, the first financial statements reflecting adoption of these significant standards will be an interim report. This IFRS in Focus discusses the key disclosure requirements in interim financial statements for adoption of new standards.

IAS Plus: A comprehensive source of global accounting news

IAS Plus features an extensive collection of news and resources about International Financial Reporting Standards, the International Accounting Standards Board, and international accounting and auditing developments.

Keep ahead and influence current IASB projects

The IASB’s current agenda includes a number of projects that will significantly impact on financial statements, including improving financial reporting to promote better communication between an entity’s management and its stakeholders and a providing guidance on business combinations under common control. You can influence the outcome of IASB projects by offering a commercial perspective on the technical debates. Details of all current IASB projects can be found at our specialist site IASPlus.com.