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The most important developments regarding the International Financial Reporting Standards
Deloitte Hungary's monthly newsletter to inform its clients about the most important developments regarding the International Financial Reporting Standards
IFRS 16 - Lease
In response to concerns raised over the cost of applying the requirements of the new Standard, the IASB decided to provide a recognition exemption for preparers by allowing short-term leases and leases of low value assets to be accounted for by simply recognising an expense, typically straight-line, over the lease term (so, in a manner consistent with the current accounting for operating leases).
Effects of changes in foreign exchange rates
IAS 21 deals with the effects of changes in foreign exchange rates. In order to understand what responsibilities entities will have, we must first understand what the standard means by the concepts of functional currency and presentation currency. The functional currency is the currency of the primary economic environment in which the entity operates, i.e. in which it primarily generates and expends cash. The presentation currency is the one in which the entity presents its financial statements.
Requirements for financial statements under the International Financial Reporting Standards
Disclosure requirements provide guidance on the types of information to be presented in the financial statements, whether such data are qualitative or quantitative. The disclosure requirements are explained in detail in the respective standards, while the overall requirements are set forth in IAS 1 Presentation of Financial Statements (hereinafter: IAS 1). Under IAS 1, complete financial statements contain the following elements:
- A statement of financial position as at the end of the period
- A statement of profit or loss and other comprehensive income for the period
- A statement of changes in equity for the period
- A statement of cash flows for the period
- Notes, comprising a summary of significant accounting policies and other explanatory information
- Other disclosures
14 September 2015
First-time Adoption of International Financial Reporting Standards (IFRS1)
In the second edition of our IFRS newsletter series, read about the first time adoption IFRS, transition schedule, related principles and accounting policies, prohibitions and exemptions and disclosure requirements in terms of the transition to IFRS.
21 July 2015
IFRS adoption for standalone reporting
In its resolution no. 1387/2015 passed on 12 June 2015, the Government approved the schedule for the adoption of the International Financial Reporting Standards (IFRSs) in Hungary for standalone reporting purposes. Learn more about timing, advantages and expected challenges from the first edition of our monthly newsletter series.
18 June 2015