Showing posts with label IFRS Guidance. Show all posts
Showing posts with label IFRS Guidance. Show all posts

Monday, March 21, 2011

A Practical Guide to New IFRSs 2011 (PwC IFRS Publications)

In March 2011, one of the Big 4 accounting firm PricewaterhouseCoopers published its IFRS implementation guidance “A Practical Guide to New IFRSs for 2011”.

Within the 24-page guide book in Q & A format, it provides a high-level outline of the key requirements of new IFRS standards and interpretations that come into effect in 2011. Significant changes to IFRS are due to be published in 2011, but there is a relatively small number of changes that come into effect for 2011 year ends.

One of the significant changes was the IFRS 9, Financial Instruments which was reissued in 2010 to include guidance on financial liabilities and derecognition of financial instruments. This material was relocated from IAS 39, Financial Instruments : Recognition and Measurement, without change, except for financial liabilities that are designated at fair value through profit or loss. The rules on the classification and measurement of financial assets were previously published in the earlier version of IFRS 9. The standard is being added to as the IASB endorses different phases of the project to replace IAS 39. The reissued IFRS 9 applies to 2013 year ends but can be adopted with immediate effect.

Another changes was regarding IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments which comes into effect in 2011.

Two further amendments that have effective dates in 2010 and will impact 2011 year ends. Amendments to IAS 32, Financial Instruments : Presentation, on classification of right issues and amendment to IFRS 1, First-time Adoption of IFRS, on financial instrument disclosures. Amendments that apply from 1 January 2011 include an amendment to IAS 24, Related Party Disclosures, and an amendment to IFRIC 14, IAS 19 – The limit on a defined benefit asset, minimum funding requirements and their interaction.

Download the publication directly from here : A Practical Guide to New IFRSs for 2011

Monday, November 22, 2010

The publication of 2011 IFRS (Blue Book) Consolidated without early application

Dropped into my email inbox on last Saturday, November 20, 2010, below was the announcement of the publication of 2011 IFRS Blue Book.

The IFRS Foundation is pleased to announce that the 2011 IFRS (Blue Book) Consolidated without early application will be published in December 2010.

International Financial Reporting Standards (IFRSs). Official pronouncements applicable on 1 January 2011. Does not include IFRSs with an effective date after 1 January 2011.

This single volume presents the International Financial Reporting Standards (IFRSs), including International Accounting Standards (IASs), IFRIC and SIC Interpretations, and the accompanying documents - illustrative examples, implementation guidance, bases for conclusions and dissenting opinions - as issued by the IASB and with an effective date no later than 1 January 2011.

This edition does not consolidate those IFRSs or changes to IFRSs with an effective date after 1 January 2011. Readers seeking the consolidated text of IFRSs issued at 1 January 2011 (including IFRSs with an effective date after 1 January 2011) should refer to the two-part 2011 IFRS Red Book, which is being published in parallel with this edition, expected March 2011.

Copies are priced at £60 each, plus shipping. Discounts are available for:

  • academics/students
  • middle income and low income countries
  • multiple orders.

The 2011 IFRSs (Blue Book) Consolidated without early application Bound Volume (978-1-907026-85-0) (Product code7) is priced at £60 per copy, plus shipping. Further information can be found on IFRS Foundation web shop. Please register your interest in this product if you wish to be notified of its publication.

Friday, November 12, 2010

In the Absence of an IFRS, where to turn to ?

The IASB publishes its standards in a series of pronouncements called International Financial Reporting Standards (IFRSs). The term ‘International Financial Reporting Standards’ includes IFRSs, IASs and Interpretation developed by the IFRIC or its predecessor, the former SIC.

The Interpretation of IFRSs are prepared by the IFRIC to give authoritative guidance on issues that are likely to receive divergent or unacceptable treatment, in the absence of such guidance.

As stated in paragraph 9 of IAS 8, Accounting Policies, Changes in Accounting Estimates, and Errors that IFRS are accompanied by guidance to assist entities in applying their requirements. All such guidance states whether it is an integral part of IFRS. Guidance that is an integral part of the IFRSs is mandatory. Guidance that is not an integral part of the IFRSs does not contain requirements for financial statements.

Further, paragraph 10 states that in the absence of an IFRS that specifically applies to a transaction, other event or condition, management shall use its judgement in developing and applying an accounting policy that results in information that is :

(1)  relevant to the economic decision-making needs for users; and

(2)  reliable, in that the financial statements :

  1. represent faithfully the financial position, financial performance and cash flows of the entity;
  2. reflect the economic substance of transactions, other events and conditions, and not merely the legal form;
  3. are neutral, ie. free from bias;
  4. are prudent; and
  5. are complete in all material respects

Following, paragraph 11 states that in making the judgement described in paragraph 10, management shall refer to, and consider the applicability of, the following sources in descending order :

  1. the requirements in IFRSs dealing with similar and related issues; and
  2. the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the Framework.

Paragraph 12 states that in making the judgement described in paragraph 10, management may also consider the most recent pronouncements of other standard-setting bodies that use a similar concept framework to develop accounting standards, other accounting literature and accepted industry practices, to the extent that these do not conflict with the sources in paragraph 11 (HRD).