IFRS 9 Financial Instruments (Oct 2015)
This BDO IFRS in Practice publication sets out practical information and examples about the application of key aspects of IFRS 9.
IFRS 9 (2014) has been developed by the International Accounting Standards Board (IASB) to replace IAS 39 Financial Instruments: Recognition and Measurement.
The IASB completed IFRS 9 in July 2014, by publishing a final standard which incorporates the final requirements of all three phases of the financial instruments projects, being:
• Classification and Measurement,
• Impairment, and
• Hedge Accounting
The IASB’s project was initially carried out as a joint project with the US Financial Accounting Standards Board (FASB). However, FASB ultimately decided to make more limited changes to the classification and measurement of financial instruments, and to develop a more US specific impairment model for financial assets.
IFRS 15 Revenue from Contracts with Customers - Transition (Apr 2015)
This publication summarises the transitional requirements of IFRS 15 and provides practical examples to illustrate the effect of the transitional provisions.
The guidance in IFRS 15 is considerably more detailed than existing IFRSs for revenue recognition and includes extensive application guidance and illustrative examples, and may bring significant changes which will need careful planning.
Entities need to start thinking about the impact of this new standard and this needs to cover not only changes to how revenue will be recognised in future, but also how they will transition to the new requirements. This is because a number of different approaches are permitted which may have a significant effect on amounts that are included in profit or loss.
IFRS 15 Revenue from Contracts with Customers (Oct 2014)
This publication provides practical information and examples about the application of key aspects of IFRS 15.
The new Standard establishes a single and comprehensive framework which sets out how much revenue is to be recognised, and when.
The core principle is that a vendor should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the vendor expects to be entitled in exchange for those goods or services.
IFRS 15 also introduces an overall disclosure objective together with significantly enhanced disclosure requirements for revenue recognition.