IFRS Project Insights Financial Instruments: Classification and Measurement
|
|
- Lauren Clarke
- 5 years ago
- Views:
Transcription
1 IFRS Project Insights Financial Instruments: Classification and Measurement 2 October 2012 The IASB s financial instrument project will replace IAS 39 Financial Instruments: Recognition and Measurement. The financial instruments project is being addressed by the IASB (the Board) in phases: classification and measurement, impairment, hedge accounting and offsetting of financial assets and liabilities. In November 2009, the IASB published IFRS 9 Financial Instruments which addresses the classification and measurement of financial assets. In October 2010, the requirements for classifying and measuring financial liabilities were added to IFRS 9. In November 2011, the IASB decided to make targeted improvements to IFRS 9. In December 2011, the IASB amended the effective date and transition requirements of IFRS 9 to provide the Board more time to make the improvements to IFRS 9, complete the remaining phases of the financial instruments project and finalise the insurance project. The objective of the targeted improvements to IFRS 9 is to address specific application questions raised by constituents, consider the interaction of the classification and measurement model for financial assets with the insurance project, and to consider differences with the FASB s tentative decisions on classification and measurement. In January 2012, the IASB and FASB (the Boards) agreed to jointly redeliberate selected aspects of their respective classification and measurement models. Their efforts have focused on: the contractual cash flow characteristics of financial assets; the need, and basis for, bifurcating financial assets; the basis for and the scope of a possible third classification category to measure debt instruments at fair value through other comprehensive income; and interrelated issues from these topics. The July 2012 joint meeting was likely the final joint meeting between the Boards prior to the publishing of an exposure draft. The IASB intends to publish an exposure draft during the fourth quarter of Tentative decisions reached during redeliberations Topic discussed at the September 2012 meeting Transition: o Presentation of gains or losses on financial liabilities arising from changes in own credit risk o Limited amendments to classification and measurement Prior-period disclosures for classification and measurement Current-period disclosures for classification and measurement o IFRS 9 as a whole Phased early application of IFRS 9 New or amended tentative decisions as a result of the September 2012 meeting have been referenced below. 1
2 Contractual cash flow criteria The Boards tentatively decided that a financial asset could be eligible for a measurement category other than fair value through profit or loss ( FVTPL ) (presuming the business model criterion is also met) if the contractual terms of the financial asset result in cash flows that are solely payments of principal and interest on the principal amount outstanding. Principal is considered the amount transferred at initial recognition while interest is consideration for the time value of money and the associated credit risk. If a financial asset contains a component other than principal or compensation for time value of money and credit risk, then the financial asset must be measured at FVTPL. If the financial asset only contains components that are principal and consideration for the time value of money and credit risk, but the relationship between the components is modified, an entity would need to consider the effect of the modification when assessing whether the cash flows on the financial asset are still consistent with the notion of being solely principal and interest. The Boards tentatively decided that contractual terms which change the timing or amount of payments of principal and interest would not preclude the financial asset from being eligible for a measurement category other than FVTPL if the variability reflects only changes in the time value of money and the associated credit risk of the instrument. The Boards also tentatively decided that the probability of contingent cash flows that are not solely principal and interest should not be considered. Financial assets that contain contingent cash flows that are not solely principal and interest would be measured at FVTPL unless they relate to non-genuine features. For the IASB, this does not represent a change to IFRS 9. The Boards tentatively decided an entity would need to compare a financial asset with modified features (e.g., a variable interest rate that does not match the interest rate reset period) to a benchmark instrument that contains features that are solely principal and interest to assess the effect of the modification. An appropriate benchmark instrument would be a contract of the same credit quality and with the same terms, except for the contractual term under evaluation. The Boards also tentatively decided that if the difference between the cash flows of the benchmark instrument and the instrument under assessment is more than insignificant, the instrument must be measured at FVTPL as its contractual cash flows do not represent solely principal and interest. The Boards tentatively decided that a prepayment or extension option, including those whose exercise are based on contingencies, would not preclude a financial asset from being eligible for a measurement category other than FVTPL as long as these features are consistent with the notions of solely principal and interest. No changes to IFRS 9 would be needed based on this tentative decision but for the FASB, this guidance will be included as part of the contractual cash flow characteristics assessment. Introduction of a FVTOCI category for debt investments The IASB tentatively decided to introduce a fair value through other comprehensive income ( FVTOCI ) classification category for debt investments to IFRS 9. The Board decided that interest income would be recognised in profit or loss utilising the effective interest method and credit impairment losses and reversals would be recognised in profit or loss using the same methodology as those instruments measured at amortised cost. The Board also tentatively decided the cumulative fair value gains or losses recognised in other comprehensive income would be recycled to profit or loss upon derecognition. The IASB and the FASB then discussed the scope of the FVTOCI measurement category for debt instruments and reaffirmed that a debt instrument would be measured at FVTOCI only if: The debt instrument passes the contractual cash flow characteristics assessment (see the Contractual cash flow criteria section above); and The debt instrument is managed within the relevant business model (see the Business model assessment for FVTPL and FVTOCI for financial assets section below). 2
3 Business model assessment for amortised cost classification for financial assets An entity assesses both the cash flow characteristics of financial assets and its business model to determine which financial assets should be classified and measured at amortised cost. The Boards tentatively decided that financial assets would qualify for amortised cost if the assets are held within a business model whose objective is to hold the assets in order to collect contractual cash flows. The Boards tentatively decided to provide implementation guidance on the types of business activities and the frequency and nature of sales that would prohibit financial assets from qualifying for amortised cost measurement. Business model assessment for FVTPL and FVTOCI for financial assets The Board tentatively decided to define the objective of the business model that results in classifying financial assets at FVTOCI and as a result, those business models which do not qualify for either amortised cost or FVTOCI would be measured at FVTPL (the residual category). The business model for classifying financial assets at FVTOCI would be a portfolio of financial assets managed with the objective of both collecting contractual cash flows and selling financial assets. Reclassification of financial assets between measurement categories Scope of reclassifications of financial assets between measurement categories The IASB agreed to extend the current reclassification requirements in IFRS 9 to the FVTOCI category with the disclosure requirements in IFRS 7 Financial Instruments: Disclosures applying to all reclassifications. The FASB also agreed to require reclassification of financial assets when the business model changes. IFRS 9 currently requires that the reclassification occurs at the beginning of the period following the change in business model. Reclassification date The IASB did not consider this issue given current requirements in IFRS 9 to recognise reclassifications as of the first day of the period beginning immediately after the period in which the change in business model that results in a reclassification occurs. The FASB tentatively decided not to converge with the current IFRS 9 requirement. Rather, the FASB tentatively decided that entities should recognise reclassifications between any of the categories as of the last day of the period in which the change in business model that results in a reclassification occurs. The FASB will discuss disclosures related to reclassifications under its model at a later date. IFRS 9 does not require disclosures describing the reclassification or financial statement impact until the reclassification is recognised. Reclassification mechanics Both Boards tentatively agreed that entities should account for reclassifications between categories as follows: For reclassifications from FVTOCI to FVTPL, amounts accumulated in other comprehensive income ( OCI ) are recycled from OCI to profit or loss, and the financial asset continues to be measured at fair value. For reclassifications from FVTPL to FVTOCI, changes in fair value occurring after the reclassification date are recognised in OCI, and the financial asset continues to be measured at fair value. On the date a reclassification is recognised, an entity should calculate an effective interest rate ( EIR ) on the basis of the new carrying amount (i.e., fair value on the reclassification date) to determine the amounts of interest and amortisation it should recognise in profit or loss going forward. For reclassifications from amortised cost to FVTOCI, the financial asset is remeasured at fair value, and any difference between the amortised cost and fair value is recognised in OCI. 3
4 For reclassifications from FVTOCI to amortised cost, the financial asset is transferred at fair value, but amounts accumulated in OCI are derecognised with an offsetting entry to the financial asset balance (i.e., the new carrying amount is treated as though it had always been classified at amortised cost). The FASB alone tentatively decided that entities should account for reclassifications between categories as follows: For reclassifications from FVTPL to amortised cost, the fair value of the financial instrument becomes the amortised cost on the reclassification date, and an entity would calculate the EIR on the basis of this new carrying amount. This accounting is consistent with existing requirements in IFRS 9. For reclassifications from amortised cost to FVTPL, an entity remeasures the asset at fair value and recognises the difference between amortised cost and fair value in profit or loss. This accounting is also consistent with IFRS 9. Bifurcation of financial assets and financial liabilities The Boards tentatively decided that financial assets that contain cash flows that are not solely principal and interest would not be eligible for bifurcation. Instead, the entire instrument would be classified and measured at fair value through profit or loss. This tentative decision is consistent with the current classification and measurement model in IFRS 9 but eliminates the bifurcation requirements for financial assets in the FASB s tentative model. The Boards tentatively decided that financial liabilities would be bifurcated using the existing requirements in IFRS 9 and US GAAP. Under this approach, the cash flow characteristics assessment would not be applied to financial liabilities. The 'own credit' requirements in IFRS 9 will be retained. Fair value option The FASB discussed the fair value option for financial assets and financial liabilities and tentatively decided to provide an irrevocable fair value option to designate hybrid financial liabilities at FVTPL unless the embedded derivative or derivatives do not significantly modify the cash flows that otherwise would be required by the contract or it is clear with little or no analysis when a similar hybrid instrument is first considered that separation of the embedded derivative or derivatives is prohibited. The FASB also tentatively decided to provide an irrevocable fair value option at initial recognition to designate a group of financial assets and liabilities at FVTPL if the entity manages the net exposure relating to those financial assets and financial liabilities (which may be derivative instruments) on a fair value basis and the entity provides information on that basis to the reporting entity s management. The IASB discussed the fair value option for debt investments measured at FVTOCI and tentatively decided to extend the current eligibility condition in IFRS 9 for designating financial assets under the accounting mismatch fair value option to debt investments that would otherwise be measured at FVTOCI if doing so eliminates or significantly reduces an accounting mismatch. Disclosure The IASB discussed disclosures related to reclassifying eligible debt investments into and out of the FVTOCI measurement category. The IASB tentatively decided that the reclassification disclosures in: paragraph 12B of IFRS 7 should be extended to all reclassifications into and out of FVTOCI. paragraph 12C of IFRS 7 should be extended to reclassifications from FVTPL to FVTOCI. paragraph 12D of IFRS 7 should be extended to apply to reclassifications from FVTPL to FVTOCI and from FVTOCI to amortised cost. The IASB also discussed presentation and disclosure requirements due to the proposed limited amendments to IFRS 9 and the interaction of proposed disclosures in the classification and measurement project with disclosures proposed in the impairment project. 4
5 Regarding the amended contractual cash flow characteristics assessment, the IASB tentatively decided: The judgement involved in the assessment of contractual cash flow characteristics should be added to IAS 1 Presentation of Financial Statements as an example of a judgement that could have a significant effect on the amounts recognised in the financial statements. Quantitative disclosures should not be required when the assessment of contractual cash flow characteristics could have a significant effect on the amounts recognised in the financial statements. Relating to the proposed addition of a FVTOCI category for eligible debt instruments, the IASB tentatively decided: No new requirements should be added related to the presentation of gains or losses arising from the derecognition of debt instruments measured at FVTOCI. The impairment disclosures for debt instruments measured at FVTOCI should be consistent with those for assets measured at amortised cost, including disclosure of an accumulated impairment amount. Presentation of an allowance balance on the face of the statement of financial position should be prohibited for debt instruments measured at FVTOCI. Transition The IASB discussed how and when the classification and measurement requirements in IFRS 9 should be applied. The IASB also discussed the transition to IFRS 9 as a whole considering the interaction between its phases, as well as disclosure requirements when an entity first applies IFRS 9. Presentation of gains or losses on financial liabilities arising from changes in own credit New The Board discussed relief to accelerate the application of the own credit requirements introduced by IFRS 9. Those requirements necessitate presentation of fair value gains or losses attributable to changes in the issuer s own credit risk for financial liabilities measured under the fair value option in the statement of other comprehensive income. The IASB tentatively decided to amend IFRS 9 to allow early application of the requirement for the presentation of fair value gains or losses attributable to changes in the issuer s own credit risk without the need to early apply IFRS 9 in its entirety. Limited amendments to classification and measurement Updated The IASB tentatively decided that on transition to the amended classification and measurement requirements, an entity would be required to: retrospectively apply the contractual cash flow characteristics assessment as set out in IFRS 9 (2010) where it is impracticable to apply the amended contractual cash flow characteristics assessment retrospectively; and disclose the carrying values of the financial assets whose contractual cash flows have been assessed under IFRS 9 (2010) as opposed to the amended classification and measurement requirements due to impracticability until the affected financial assets are derecognised. The IASB also tentatively agreed that no amendments to the existing IFRS 9 transition requirements are required as a result of: the proposed amendments to the business model assessment, or the proposed extension of the fair value option for accounting mismatches to debt instruments that would otherwise be measured at FVTOCI. 5
6 The IASB tentatively decided to confirm that in the period in which IFRS 9 is initially applied, disclosure of the line item amounts that would have been reported in prior periods in accordance with the classification and measurement model in IFRS 9 would not be required. Similarly, disclosure of the current-period line item amounts that would have been reported in accordance with the classification and measurement model in IAS 39 would not be required. IFRS 9 as a whole Updated The IASB tentatively decided that entities which have applied IFRS 9 (2009) or IFRS 9 (2010) before applying the limited amendments to IFRS 9 must revoke previous fair value option elections if an accounting mismatch no longer exists at initial application of the amended classification and measurement requirements. Entities would be permitted to apply the fair value option to new accounting mismatches created by the initial application of the amended classification and measurement requirements. The IASB tentatively decided that earlier versions of IFRS 9 should be withdrawn for early application six months after the publication of the final version of IFRS 9. For example, if all chapters of IFRS 9 were finalised on 30 June 2013, entities would no longer be permitted to early apply previous versions of IFRS 9 in reporting periods beginning on or after 1 January Those entities which applied a previous version of IFRS 9 prior to the publication of the complete version of IFRS 9 would be permitted to continue applying that version until the mandatory effective date of IFRS 9. The IASB also tentatively decided that early application of the entire IFRS 9 would be permitted once all of the requirements are issued. Finally, the IASB tentatively decided to reaffirm that restatement of comparative classification and measurement information would not be required. Entities would be permitted to restate comparative information only if the information is available without the use of hindsight. Next steps The IASB intends to publish an exposure draft in the fourth quarter of Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's more than 195,000 professionals are committed to becoming the standard of excellence. This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the Deloitte Network ) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication Deloitte Global Services Limited 6
FINANCIAL INSTRUMENTS. The future of IFRS financial instruments accounting IFRS NEWSLETTER
IFRS NEWSLETTER FINANCIAL INSTRUMENTS Issue 4, July 2012 In July, differences in approach emerged between the IASB and FASB on the way forward to achieving a converged impairment model; these are a cause
More informationIASB finalises IFRS 9 which changes the classification and measurement of financial assets and introduces an expected loss impairment model
Published on: July, 2014 IASB finalises IFRS 9 which changes the classification and measurement of financial assets and introduces an expected loss impairment model Background and effective date The lasb's
More informationFINANCIAL INSTRUMENTS. The future of IFRS financial instruments accounting IFRS NEWSLETTER
IFRS NEWSLETTER FINANCIAL INSTRUMENTS Issue 3, June 2012 In June, the IASB decided to extend the existing fair value option for financial assets in IFRS 9 to financial assets in the new FVOCI measurement
More informationAccounting for Financial Instruments
International Financial Reporting Standards Accounting for Financial Instruments (IFRS 9) Executive IFRS workshop for Regulators Diplomatic Academy of Vienna Darrel Scott, IASB member The views expressed
More informationFirst Impressions: IFRS 9 Financial Instruments
IFRS First Impressions: IFRS 9 Financial Instruments September 2014 kpmg.com/ifrs Contents Fundamental changes call for careful planning 2 Setting the standard 3 1 Key facts 4 2 How this could impact you
More informationFINANCIAL INSTRUMENTS. The future of IFRS financial instruments accounting IFRS NEWSLETTER
IFRS NEWSLETTER FINANCIAL INSTRUMENTS Issue 20, February 2014 All the due process requirements for IFRS 9 have been met, and a final standard with an effective date of 1 January 2018 is expected in mid-2014.
More informationHeads Up. IASB Issues IFRS on Classification and Measurement of Financial Assets.
vember 17, 2009 Volume 16, Issue 42 Heads Up In This Issue: Introduction Scope Classification Classification Criteria Equity Investments Embedded Derivatives Application Issues Reclassification Impact
More informationIAS 39 the sequel. Time for new measures. August Background
August 2009 IAS 39 the sequel. Time for new measures Background On 14 July 2009, the International Accounting Standards Board (IASB) issued an exposure draft (ED), ED/2009/7, Financial Instruments: Classification
More informationFinancial instruments
International Financial Reporting Standards Financial instruments The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS Foundation IASB s work on
More informationIFRS 9 FINANCIAL INSTRUMENTS (2014) INTERNATIONAL FINANCIAL REPORTING BULLETIN 2014/12
IFRS 9 FINANCIAL INSTRUMENTS (2014) INTERNATIONAL FINANCIAL REPORTING BULLETIN 2014/12 Summary On 24 July 2014, the International Accounting Standards Board (IASB) completed its project on financial instruments
More informationIFRS News. Special Edition on IFRS 9 (2014) IFRS 9 Financial Instruments is now complete
Special Edition on IFRS 9 (2014) IFRS News IFRS 9 Financial Instruments is now complete Following several years of development, the IASB has finished its project to replace IAS 39 Financial Instruments:
More informationRegular way purchase or sale of financial assets
International Financial Reporting Standard 9 Financial Instruments Chapter 1 Objective 1.1 The objective of this IFRS is to establish principles for the financial reporting of financial assets and financial
More informationIASB issued an amendment to IFRS 4 Insurance Contracts to address concerns about the different effective dates of IFRS 9 and the new insurance
IASB issued an amendment to Insurance Contracts to address concerns about the different effective dates of IFRS 9 and the new insurance contracts Standard that will replace Published on: September, 2016
More informationContents. Financial instruments the complete standard. Fundamental changes call for careful planning. 1. Overview Complete IFRS 9
Financial instruments the complete standard Contents Fundamental changes call for careful planning 1. Overview Complete IFRS 9 2. Classification and measurement Facts 3. Classification and measurement
More informationComparison of the FASB s and the IASB s Proposed Models for Financial Instruments (as of May 2010)
Comparison of the FASB s and the IASB s Proposed Models for Financial Instruments (as of May 2010) The following table provides a side-by-side comparison of the FASB s and the IASB s proposed models for
More informationIFRS model financial statements 2017 Contents
Model Financial Statements under IFRS as adopted by the EU 2017 Contents Section 1 New and revised IFRSs adopted by the EU for 2017 annual financial statements and beyond... 3 Section 2 Model financial
More informationOverview Why the introduction of IFRS 9?
Overview Why the introduction of IFRS 9? Response to G20 and Financial Stability Board (FSB) 2008 Financial crisis Excessive risk-taking by banks and late recording of impairments on instruments which
More informationIASB issues 2015 Amendments to the IFRS for SMEs
Published on: June 5, 2015 IASB issues 2015 Amendments to the IFRS for SMEs Why are there amendments to the IFRS for SMEs? The IFRS for SMEs was initially issued in 2009. At the time, the IASB proposed
More informationInternational Financial Reporting Standards (IFRS)
FACT SHEET September 2011 IFRS 9 Financial Instruments (This fact sheet is based on the standard as at 1 January 2011.) Important note: This fact sheet is based on the requirements of the International
More informationFinancial Instruments: Replacement of IAS 39; Financial Instruments: Recognition and Measurement
IASB Meeting Agenda reference 7 Staff Paper Date September 2009 Project Topic Financial Instruments: Replacement of IAS 39; Financial Instruments: Recognition and Measurement Financial Instruments: Classification
More informationChanges to the financial reporting framework in Singapore
Changes to the financial reporting framework in Singapore November 2017 2 The information in this booklet was prepared by the IFRS Centre of Excellence* of Deloitte & Touche LLP in Singapore ( Deloitte
More informationNavigating the changes to New Zealand Equivalents to International Financial Reporting Standards
Navigating the changes to New Zealand Equivalents to International Financial Reporting Standards Contents Overview 3 Effective dates of new standards, interpretations and amendments (issued as at 31 Dec
More informationPRESTIGE ASSURANCE PLC THE UNAUDITED FINANCIAL STATEMENTS
PRESTIGE ASSURANCE PLC THE UNAUDITED FINANCIAL STATEMENTS FIRST QUARTER 2018 2 TABLE OF CONTENT Cover Page 1 Table of Content 2 Certification 3 Summary of Significant Accounting Policies 4-33 Financial
More informationIASB Projects A pocketbook guide. As at 31 December 2013
IASB Projects A pocketbook guide As at 31 December 2013 In this edition... Introduction... 2 Timeline for major IFRS projects... 3 Financial instruments classification and measurement... 4 Financial instruments
More informationIASB issues exposure draft: Annual Improvements to IFRSs Cycle
Published on: November 2015 IASB issues exposure draft: Annual Improvements to IFRSs 2014-2016 Cycle Why is the Interpretation being proposed? The draft Interpretation was developed in response to a request
More informationIFRS 9 Financial Instruments
A C C O U N T I N G S U M M A R Y IFRS 9 Financial Instruments Objective The objective of this Standard is to establish principles for the financial reporting of financial assets and financial liabilities
More informationFINANCIAL REPORTING WORKSHOP **IFRS 9: FINANCIAL INSTRUMENTS** Presentation by: CPA Boniface L Souza, ACIM, CFIP Wednesday, 15 th November 2017
FINANCIAL REPORTING WORKSHOP **IFRS 9: FINANCIAL INSTRUMENTS** Presentation by: CPA Boniface L Souza, ACIM, CFIP Wednesday, 15 th November 2017 Uphold public interest Agenda Why the transition to IFRS
More informationSTAFF PAPER 15-19 October 2012 REG IASB Meeting Project Paper topic CONTACT(S) Impairment Summary of decisions to date (information only) Manuel Kapsis mkapsis@ifrs.org +44 (0)20 7246 6459 Jana Streckenbach
More informationNZ International Financial Reporting Standard 9 (2009) (PBE) Financial Instruments (NZ IFRS 9 (2009) (PBE))
NZ International Financial Reporting Standard 9 (2009) (PBE) Financial Instruments (NZ IFRS 9 (2009) (PBE)) Issued November 2012 This Standard was issued by the New Zealand Accounting Standards Board of
More informationIASB publishes IFRS 9: Phase 1 of new standard to replace IAS 39
ey.com/ifrs Issue 60 / November 2009 Supplement to IFRS outlook IASB publishes IFRS 9: Phase 1 of new standard to replace IAS 39 Background On 12 November 2009, the International Accounting Standards Board
More informationIFRS Center of Excellence (CoE) Newsletter
Luxembourg Audit 13 July 2017 IFRS Center of Excellence (CoE) Newsletter Dear all, Welcome to this edition of the IFRS Newsletter prepared by the Deloitte Luxembourg IFRS Centre of Excellence. We are happy
More informationIFRS 9 Financial Instruments
November 2009 Project Summary and Feedback Statement IFRS 9 Financial Instruments Part 1: Classification and measurement Planned reform of financial instruments accounting 2009 2010 Q1 Q2 Q3 Q4 Q1 Q2 Q3
More informationRe: Exposure Draft Classification and Measurement: Limited Amendments to IFRS 9
16 April 2013 International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom Dear Sir/Madam, Re: Exposure Draft Classification and Measurement: Limited Amendments to IFRS 9 On
More informationOur Ref.: C/FRSC. Sent electronically through the IASB website ( 19 April 2013
Our Ref.: C/FRSC Sent electronically through the IASB website (www.ifrs.org) 19 April 2013 International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom Dear Sirs, IASB Exposure
More informationPutting IFRS 9 into practice Presentation by: CPA Stephen Obock February 2018
Putting IFRS 9 into practice Presentation by: CPA Stephen Obock February 2018 Uphold public interest IFRS 9 What are the key changes? What are the transition requirements? Presentation agenda Introduction
More informationIFRS Project Insights Insurance Contracts
IFRS Project Insights Insurance Contracts October 2015 The International Accounting Standards Board ( IASB / the Board ) is undertaking a comprehensive project on the accounting for insurance contracts,
More informationClassification of financial instruments under IFRS 9
Applying IFRS Classification of financial instruments under IFRS 9 May 2015 Contents 1. Introduction... 4 2. Classification of financial assets... 4 2.1 Debt instruments... 5 2.2 Equity instruments and
More informationIASB Projects A pocketbook guide. As at 30 June 2013
IASB Projects A pocketbook guide As at 30 June 2013 In this edition... Introduction... 2 Timeline for major IFRS projects... 3 Financial instruments classification and measurement (proposed limited scope
More informationIASB Projects A pocketbook guide. As at 30 September 2013
IASB Projects A pocketbook guide As at 30 September 2013 In this edition... Introduction... 2 Timeline for major IFRS projects... 3 Financial instruments classification and measurement (proposed limited
More informationRevised Standards on Financial Instruments
Published for our clients and staff throughout the world DELOITTE TOUCHE TO February 2004 Special Edition DELOITTE TOUCHE TOHMATSU GLOBAL IAS LEADERSHIP TEAM IAS GLOBAL OFFICE Global IAS Leader: Ken Wild,
More informationIASB Meeting Project Prepayment Features with Negative Compensation
IASB Agenda ref 3B STAFF PAPER IASB Meeting Project Prepayment Features with Negative Compensation Paper topic Modifications or exchanges of financial liabilities: The IFRS Interpretations Committee s
More informationAcumen Financial Institutions Accounting and Reporting. IFRS 9 Financial Instruments Classification 9 June 2015
Acumen 2015 Financial Institutions Accounting and Reporting IFRS 9 Financial Instruments Classification 9 June 2015 About the presenters Presenter 1 George W. Prieksaitis Partner +1 416 943 2542 george.w.prieksaitis@ca.ey.co
More informationApplying IFRS. IFRS 9: New mandatory effective date and transition disclosures
Applying IFRS IFRS 9: New mandatory effective date and transition disclosures January 2012 Contents Overview 2 Background 2 Disclosures on transition to IFRS 9 3 Transition adjustments 3 Appendix 4 8
More informationIFRSs, IFRICs AND AMENDMENTS AVAILABLE FOR EARLY ADOPTION FOR 31 DECEMBER 2016 YEAR ENDS
IFRSs, IFRICs AND AMENDMENTS AVAILABLE FOR EARLY ADOPTION FOR 31 DECEMBER 2016 YEAR ENDS INTERNATIONAL FINANCIAL REPORTING BULLETIN 2017/05 IFRSs, IFRICs and amendments available for early adoption for
More informationInternational Financial Reporting Standard 1 First-time Adoption of International Financial Reporting Standards
International Financial Reporting Standard 1 First-time Adoption of International Financial Reporting Standards Objective 1 The objective of this IFRS is to ensure that an entity s first IFRS financial
More informationIASB issues IFRIC 23 Uncertainty over Income Tax Treatments
IASB issues IFRIC 23 Uncertainty over Income Tax Treatments Published on: June, 2017 Issues A question has arisen in practice as to how uncertainty about the acceptability by a tax authority of a particular
More informationFirst Impressions: IFRS 9 Financial Instruments. International Financial Reporting Standards December 2009
First Impressions: IFRS 9 Financial Instruments International Financial Reporting Standards Foreword IFRS 9 Financial Instruments was published in November 2009. This is the first instalment of a phased
More informationIFRSs, IFRICs AND AMENDMENTS AVAILABLE FOR EARLY ADOPTION FOR 31 DECEMBER 2015 YEAR ENDS
IFRSs, IFRICs AND AMENDMENTS AVAILABLE FOR EARLY ADOPTION FOR 31 DECEMBER 2015 YEAR ENDS INTERNATIONAL FINANCIAL REPORTING BULLETIN 2016/02 IFRSs, IFRICs and amendments available for early adoption for
More informationJoint Project Watch. IASB/FASB joint projects from an IFRS perspective. December 2011
Joint Project Watch IASB/FASB joint projects from an IFRS perspective December 2011 The standard-setting activities of the International Accounting Standards Board (IASB) and the US Financial Accounting
More informationAccounting for Financial Instruments: A Comprehensive Update on the Joint Project
The Dbriefs Financial Reporting series presents: Accounting for Financial Instruments: A Comprehensive Update on the Joint Project Robert Uhl, Partner, Deloitte & Touche LLP Magnus Orrell, Director, Deloitte
More informationRe: Invitation to comment Exposure Draft ED/2012/4 Classification and measurement: Limited amendments to IFRS 9 Proposed amendments to IFRS 9 (2010)
Ernst & Young Global Limited Becket House 1 Lambeth Palace Road London SE1 7EU Tel: +44 [0]20 7980 0000 Fax: +44 [0]20 7980 0275 www.ey.com International Accounting Standards Board 30 Cannon Street London
More informationIFRS 9 Financial Instruments. IICPAK: The Financial Reporting Workshop 4 th and 5 th December 2014 Hilton Hotel, Nairobi
IFRS 9 Financial Instruments IICPAK: The Financial Reporting Workshop 4 th and 5 th December 2014 Hilton Hotel, Nairobi Why are we discussing this topic? Why are we discussing this topic? Area that is
More informationAnother step closer to finalising IFRS 4 Phase II More education on participating contracts while IFRS 9 is issued in final text
Another step closer to finalising IFRS 4 Phase II More education on participating contracts while IFRS 9 is issued in final text Francesco Nagari Deloitte Global IFRS Insurance Lead Partner 31 July 2014
More informationGlobal Financial Reporting.
Asia Pacific Dbriefs Presents: Global Financial Reporting. IFRS: Important Developments Joel Osnoss / Randall Sogoloff / Andrew Spooner 25 July 2012 Agenda IFRS update Project update Financial instruments
More informationIFRS IN PRACTICE IFRS 9 Financial Instruments
IFRS IN PRACTICE 2018 IFRS 9 Financial Instruments 2 IFRS IN PRACTICE 2018 IFRS 9 FINANCIAL INSTRUMENTS IFRS IN PRACTICE 2018 IFRS 9 FINANCIAL INSTRUMENTS 3 TABLE OF CONTENTS 1. Introduction 5 2. Definitions
More informationStay informed. Visit IFRS pocket guide 2012
Stay informed. Visit www.pwcinform.com IFRS pocket guide 2012 Introduction Introduction This pocket guide provides a summary of the recognition and measurement requirements of International Financial Reporting
More informationIASB Projects A pocketbook guide. As at 31 March 2013
IASB Projects A pocketbook guide As at 31 March 2013 In this edition... Introduction... 2 Timeline for major IFRS projects... 3 Financial instruments classification and measurement (proposed limited scope
More informationIFRS 9 Classification and Measurement Presentation by: CPA Stephen Obock March 2018
IFRS 9 Classification and Measurement Presentation by: CPA Stephen Obock March 2018 Uphold public interest IFRS 9 Classification and Measurement Classification and Similar categories: FVTPL Amortised cost
More informationErnst & Young IFRS Core Tools April IFRS Update. of standards and interpretations in issue at 31 March 2012
Ernst & Young IFRS Core Tools April 2012 IFRS Update of standards and interpretations in issue at 31 March 2012 Contents Introduction 2 Section 1: New pronouncements issued as at 31 March 2012 4 Table
More informationUnderstanding IFRS 9 (2014) for Directors By Tan Liong Tong
Understanding IFRS 9 (2014) for Directors By Tan Liong Tong 1. Introduction Many preparers and users of financial statements and other interested parties have expressed concerns that the requirements of
More informationIFRS News Special Edition
IFRS News Special Edition We welcome the IASB s efforts to reduce the complexity in accounting for financial instruments, and believe that IFRS 9 represents a good start in the project to replace IAS 39.
More informationFinancial Instruments
Financial Instruments A summary of IFRS 9 and its effects March 2017 IFRS 9 Financial Instruments Roadmap financial assets Debt (including hybrid contracts) Derivatives Equity (at instrument level) Pass
More informationIFRS pocket guide inform.pwc.com
IFRS pocket guide 2016 inform.pwc.com Introduction 1 Introduction This pocket guide provides a summary of the recognition and measurement requirements of International Financial Reporting Standards (IFRS)
More informationEY IFRS Core Tools IFRS Update
EY IFRS Core Tools IFRS Update of standards and interpretations in issue at 31 August 2014 Contents Introduction 2 Section 1: New pronouncements issued as at 31 August 2014 4 Table of mandatory application
More informationThe Use of IFRS for Prudential and Regulatory Purposes
REPARIS A REGIONAL PROGRAM The Use of IFRS for Prudential and Regulatory Purposes IFRS 9 THE ROAD TO EUROPE: PROGRAM OF ACCOUNTING REFORM AND INSTITUTIONAL STRENGTHENING (REPARIS) IFRS 9 Financial Instruments
More informationHKFRSs / IFRSs UPDATE 2011/02
28 FEBRUARY 2011 WWW.BDO.COM.HK HKFRSs / IFRSs UPDATE 2011/02 NEW AND REVISED HKFRSs 2010 YEAR ENDS REPORTING (A) New and revised HKFRSs that are mandatory for the first time for 2010 year ends 1. HKFRS
More informationSri Lanka Accounting Standard SLFRS 9. Financial Instruments
Sri Lanka Accounting Standard SLFRS 9 Financial Instruments CONTENTS from paragraph Sri Lanka Accounting Standard SLFRS 9 Financial Instruments CHAPTERS 1. OBJECTIVE 1.1 2. SCOPE 2.1 3. RECOGNITION AND
More informationIFRS 9 Financial Instruments Thai Life Assurance Association
IFRS 9 Financial Instruments Thai Life Assurance Association 13 December 2016 What impact will IFRS 9 have on your business? More data required IFRS 9 More judgment involved Detailed guidance which may
More informationNovember Changes to the financial reporting framework in Singapore.
November 2008 Changes to the financial reporting framework in Singapore. The information in this booklet was prepared by the Technical Department of Deloitte & Touche LLP in Singapore ( Deloitte Singapore
More informationThe LIAJ s Comments on the ED. Classification and Measurement: Limited Amendments to IFRS 9
The LIAJ s Comments on the ED Classification and Measurement: Limited Amendments to IFRS 9 Proposed amendments to IFRS 9 (2010) 28 March 2013 The Life Insurance Association of Japan (LIAJ) The Life Insurance
More informationIFRS 9 Classification and Measurement
IFRS 9 Classification and Measurement January 2017 0 Contents Overview of IFRS 9 What s new? Main changes from IAS 39 Classification of financial assets Measurement of financial assets Reclassifications
More informationIFRS 9 Financial Instruments Thai General Assurance Association
IFRS 9 Financial Instruments Thai General Assurance Association 9 March 2017 What impact will IFRS 9 have on your business? More data required IFRS 9 More judgment involved Detailed guidance which may
More informationGet ready for FRS 109: Classifying and measuring financial instruments. July 2018
Get ready for FRS 109: Classifying and measuring financial instruments July 2018 Contents Preface 03 1 Overview of classification and measurement requirements 04 2 The business model test 06 2.1 Determining
More informationIhre Ansprechpartner
Ihre Ansprechpartner Sehr geehrte Damen und Herren, für Rückfragen zu der beigefügten Publikation In depth zur Thematik IFRS 9 Financial Instruments stehen Ihnen folgende Ansprechpartner gerne zur Verfügung:
More informationPresentation of items of Other Comprehensive Income (OCI) Frequently asked questions
Presentation of items of Other Comprehensive Income (OCI) Amendment to IAS 1 Presentation of Financial Statements Frequently asked questions 1. What are the current requirements for presenting profit or
More informationQAU. Alert IN THIS ISSUE. Issue No
QAU Alert Issue No. 02-2015 IN THIS ISSUE In July 2014, the International Accounting Standard Board (IASB) issued the final version of IFRS 9 Financial Instruments that combines together the classification
More informationIFRS 9 Readiness for Credit Unions
IFRS 9 Readiness for Credit Unions Classification & Measurement Implementation Guide June 2017 IFRS READINESS FOR CREDIT UNIONS This document is prepared based on Standards issued by the International
More informationAASB 9: Financial Instruments Transition. Tuesday 20 June 2017
AASB 9: Financial Instruments Transition Tuesday 20 June 2017 Your facilitators are Patricia Stebbens Aaron Laurie Mohamad Shahin Justin Turnbull 2 Agenda Introduction Classification and measurement Impairment
More informationDear Sir David, Discussion Paper Reducing Complexity in Reporting Financial Instruments
19 September 2008 Deloitte Touche Tohmatsu 2 Little New Street London EC4A 3BZ United Kingdom Tel: National +44 20 7936 3000 Direct Telephone: +44 20 7007 0907 Direct Fax: +44 20 7007 0158 www.deloitte.com
More informationFirst-time Adoption of International Financial Reporting Standards
IFRS Standard 1 First-time Adoption of International Financial Reporting Standards In April 2001 the International Accounting Standards Board (the Board) adopted SIC-8 First-time Application of IASs as
More informationErnst & Young IFRS Core Tools. IFRS Update. of standards and interpretations in issue at 28 February 2013
Ernst & Young IFRS Core Tools IFRS Update of standards and interpretations in issue at 28 February 2013 Contents Introduction 2 Section 1: New pronouncements issued as at 28 February 2013 4 Table of mandatory
More informationNew and revised Standards -Applying IFRS 9 Presentation by: CPA Stephen Obock December 2017
New and revised Standards -Applying IFRS 9 Presentation by: CPA Stephen Obock December 2017 Uphold public interest IFRS 9 What are the key changes? What are the transition requirements? Presentation agenda
More informationRisk and Accounting. IFRS 9 Financial Instruments. Marco Venuti 2018
Risk and Accounting IFRS 9 Financial Instruments Marco Venuti 2018 Agenda Reasons for issuing IFRS 9 Classification approach by IFRS 9 Classification and Measurement of financial assets Contractual cash
More informationWhat s new in financial reporting for March 2009? Quarterly Update
What s new in financial reporting for? Quarterly Update The analysis below provides a high level overview of new and revised financial reporting requirements that need to be considered for financial reporting
More informationIFRS 9 CHAPTER 6 HEDGE ACCOUNTING
HEDGE ACCOUNTING IFRS 9 CHAPTER 6 HEDGE ACCOUNTING Basis for Conclusions 1 IFRS Foundation DRAFT BASIS FOR CONCLUSIONS ON CHAPTER 6 OF IFRS 9 BASIS FOR CONCLUSIONS ON IFRS 9 FINANCIAL INSTRUMENTS from
More informationFirst-Time Adoption of International Financial Reporting Standards
Audit and Assurance First-Time Adoption of International Financial Reporting Standards Discussion Paper December 2003 Contents Contents 1. Executive Summary 3 2. Harmonisation in New Zealand 4 3. Application
More informationpwc.com/ifrs A practical guide to new IFRSs for 2014
pwc.com/ifrs A practical guide to new IFRSs for 2014 February 2014 February 2014 pwc.com/ifrs inform.pwc.com inform.pwc.com for 2013 year ends www.pwc.com/ifrs inform.pwc.com PwC s IFRS, corporate reporting
More informationAppendices STANDARDS ISSUED BUT NOT EFFECTIVE IMMEDIATELY WITH EARLIER APPLICATION PERMISSIBLE
Appendices STANDARDS ISSUED BUT NOT EFFECTIVE IMMEDIATELY WITH EARLIER APPLICATION PERMISSIBLE Appendix A: Financial Instruments (IFRS 9) Appendix B: New IFRS Issued and Amendments to Existing Standards
More informationFinancial Instruments. October 2015 Slide 2
Presented by: Cost transaction price (in general) Amortised Cost (B/s) EIR - Effective interest method (I/s) OCI - Other Comprehensive Income FVTPL Fair value through profit or loss FVOCI Fair value through
More informationOlivier Guersent Director General, Financial Stability, Financial Services and Capital Markets Union European Commission 1049 Brussels
Olivier Guersent Director General, Financial Stability, Financial Services and Capital Markets Union European Commission 1049 Brussels 15 September 2015 Dear Mr Guersent, Endorsement Advice on IFRS 9 Financial
More informationEY IFRS Core Tools. IFRS Update. of standards and interpretations in issue at 28 February 2014
EY IFRS Core Tools IFRS Update of standards and interpretations in issue at 28 February 2014 Contents Introduction 2 Section 1: New pronouncements issued as at 28 February 2014 4 Table of mandatory application
More informationMandatory Effective Date of NZ IFRS 9 and Transition Disclosures (Amendments to NZ IFRS 9 (2009), NZ IFRS 9 (2010) and NZ IFRS 7)
Mandatory Effective Date of NZ IFRS 9 and Transition Disclosures (Amendments to NZ IFRS 9 (2009), NZ IFRS 9 (2010) and NZ IFRS 7) 1 Mandatory Effective Date of NZ IFRS 9 and Transition Disclosures AMENDMENTS
More information5 MF&G TRUST & FINANCE LIMITED Statement of Profit or Loss and Other Comprehensive Income Nine-month period ended (with comparative period for twelve months ended December 31, 2017) Net interest income
More informationConsolidated Financial Statements
Interim Condensed Consolidated Financial Statements For the three month period ended The Saudi British Bank Notes To The Interim Condensed Consolidated Financial Statements 1. General The Saudi British
More informationInterim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Financial Statements For the six month period ended 1 Notes To The Interim Condensed Consolidated Financial Statements 1. General ( SABB ) is a Saudi Joint Stock Company
More informationACCOUNTING POLICIES. for the year ended 30 June MURRAY & ROBERTS ANNUAL FINANCIAL STATEMENTS 13
12 MURRAY & ROBERTS ANNUAL FINANCIAL STATEMENTS 13 ACCOUNTING POLICIES for the year ended 30 June 2013 1 PRESENTATION OF FINANCIAL STATEMENTS These accounting policies are consistent with the previous
More informationFinancial Instruments Overall (Subtopic )
Proposed Accounting Standards Update Issued: February 14, 2013 Comments Due: May 15, 2013 Financial Instruments Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities
More informationFinancial Instruments
IFRS 9 Financial Instruments In April 2001 the International Accounting Standards Board (the Board) adopted IAS 39 Financial Instruments: Recognition and Measurement, which had originally been issued by
More informationKey Elements and Considerations of FASB s New Major Converged Financial Accounting and Reporting Standards
Key Elements and Considerations of FASB s New Major Converged Financial Accounting and Reporting Standards Deloitte & Touche LLP Annual Meeting of the American Accounting Association Panel discussion August
More informationIFRS EU Update. December PRECISE. PROVEN. PERFORMANCE.
IFRS EU Update December 2017 www.moorestephens.co.uk PRECISE. PROVEN. PERFORMANCE. Contents 1 Introduction 2 2 Standards 3 2.1 IAS 7 Statement of Cash Flows 3 2.2 IAS 12 Income Taxes 3 2.3 IFRS 12 Disclosure
More information