IFRS Update for 31 December 2013 year ends
ar endsPage 1
МСФО и интегрированная отчетность: настоящее и будущее
Update for...
• New, amended, and revised standards effective for
periods ending 31 December 2013
• New, amended, and revised standards ...
New, amended, and revised standards effective
for periods ending 31 December 2013
New, amended, and revised standards
Reporting periods beginning on after 1 July 2012
Amendments
i. Presentation of Items o...
New, amended, and revised standards (31 Dec 2013)
i. Presentation of Items of Other Comprehensive Income (1/2)
• Amendment...
New, amended, and revised standards (31 Dec 2013)
i. Presentation of Items of Other Comprehensive Income (2/2)
Title of th...
New, amended, and revised standards
Reporting periods beginning on after 1 January 2013
Consolidation suite (new and revis...
New, amended, and revised standards
Reporting periods beginning on after 1 January 2013
Amendments
iv. Employee Benefits (...
New, amended, and revised standards (31 Dec 2013)
ii. Consolidation suite - Consolidated Financial Statements (1/5)
• New ...
New, amended, and revised standards (31 Dec 2013)
ii. Consolidation suite - Joint Arrangements (2/5)
• New standard IFRS 1...
New, amended, and revised standards (31 Dec 2013)
ii. Consolidation suite - Disclosure of Interests in Other Entities (3/5...
New, amended, and revised standards (31 Dec 2013)
ii. Consolidation suite - Separate Financial Statements (4/5)
• Revised ...
New, amended, and revised standards (31 Dec 2013)
ii. Consolidation suite - Investments in Associates and Joint Ventures (...
New, amended, and revised standards (31 Dec 2013)
iii. Stripping Costs in the Production Phase of a Surface Mine (1/2)
• I...
New, amended, and revised standards (31 Dec 2013)
iii. Stripping Costs in the Production Phase of a Surface Mine (2/2)
• C...
New, amended, and revised standards (31 Dec 2013)
iv. Employee benefits (1/2)
• Amendment to IAS 19 Employee Benefits
• Ma...
New, amended, and revised standards (31 Dec 2013)
iv. Employee benefits (2/2)
Impacts for entities with DBP
• Full recogni...
New, amended, and revised standards (31 Dec 2013)
v. Government loans (1/1)
• Amendment to IFRS 1 First-Time Adoption of I...
New, amended, and revised standards (31 Dec 2013)
vi. Offsetting Financial Assets and Financial Liabilities (1/2)
• Amendm...
New, amended, and revised standards (31 Dec 2013)
vi. Offsetting Financial Assets and Financial Liabilities (2/2)
• New di...
New, amended, and revised standards (31 Dec 2013)
• vii(a) Repeat application of IFRS 1 (IFRS 1)
• vii(b) Borrowing costs ...
New, amended, and revised standards effective
for periods beginning on or after 1 January 2014
New, amended, and revised standards
Reporting periods beginning on after 1 January 2014
Amendments
i. Investment Entities ...
New, amended, and revised standards (31 Dec 2013)
i. Investment Entities (1/1)
• Amendment to IFRS 10 Consolidated financi...
Status of IASB projects
IASB Work Plan (1/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Financial Crisis related projects
Classification &...
IASB Work Plan (2/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Previous Memorandum of Understanding projects
Leas...
IASB Work Plan (3/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Other Significant Projects
Insurance contracts
(co...
IASB Work Plan (4/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Narrow-scope amendments
Acquisition of an Interest...
IASB Work Plan (5/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Narrow-scope amendments (Cont’d)
Bearer Plants – a...
IASB Work Plan (6/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Narrow-scope amendments (Cont’d)
Equity Method: Sh...
IASB Work Plan (7/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Narrow-scope amendments (Cont’d)
Recognition of De...
IASB Work Plan (8/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Post-implementation reviews
IFRS 8 Operating Segme...
IASB Work Plan (9/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Conceptual Framework
Conceptual Framework chapters...
IFRS Update for 31 December 2013 year ends
ar endsPage 35
МСФО и интегрированная отчетность: настоящее и будущее
Update fo...
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IFRS update for 31 december 2013 year ends by Katerina Rafalska, IFRS Partner

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IFRS update for 31 december 2013 year ends by Katerina Rafalska, IFRS Partner

  1. 1. IFRS Update for 31 December 2013 year ends ar endsPage 1 МСФО и интегрированная отчетность: настоящее и будущее Update for 31 December 2013 year ends
  2. 2. • New, amended, and revised standards effective for periods ending 31 December 2013 • New, amended, and revised standards effective for periods beginning on or after 1 January 2014 • Status of IASB projects Overview Update for 31 December 2013 year ends IFRS Update for 31 December 2013 year ends Page 2
  3. 3. New, amended, and revised standards effective for periods ending 31 December 2013
  4. 4. New, amended, and revised standards Reporting periods beginning on after 1 July 2012 Amendments i. Presentation of Items of Other Comprehensive Income (IAS 1) IFRS Update for 31 December 2013 year ends Page 4
  5. 5. New, amended, and revised standards (31 Dec 2013) i. Presentation of Items of Other Comprehensive Income (1/2) • Amendment to IAS 1 Presentation of Financial Statements • Amends the presentation of OCI - now split into two categories (by nature): 1) Those that could subsequently be reclassified to profit or loss (reclassification adjustments) - Foreign currency translation differences - Revaluation of Financial assets classified as Available for Sale. 2) Those that that will not be reclassified - Revaluation of property, plant and equipment - Remeasurement of net defined benefit IFRS Update for 31 December 2013 year ends Page 5
  6. 6. New, amended, and revised standards (31 Dec 2013) i. Presentation of Items of Other Comprehensive Income (2/2) Title of the statement • Change to ‘Statement of profit or loss and other comprehensive income’ (however flexibility to use other names remains in IAS 1) Presentation of items of OCI before or net of tax • Option to present items of OCI before or net of tax remains • If presenting before tax, tax is required to be allocated and disclosed separately for each of the two OCI groups IFRS Update for 31 December 2013 year ends Page 6
  7. 7. New, amended, and revised standards Reporting periods beginning on after 1 January 2013 Consolidation suite (new and revised) ii. IFRS 10 Consolidated Financial Statements IFRS 11 Joint Arrangements IFRS 12 Disclosure of Interests in Other Entities IAS 27(R) Separate Financial Statements IAS 28(R) Investments in Associates and Joint Ventures New Standards iii. IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine IFRS Update for 31 December 2013 year ends Page 7
  8. 8. New, amended, and revised standards Reporting periods beginning on after 1 January 2013 Amendments iv. Employee Benefits (IAS 19) v. Government loans (IFRS 1) vi. Offsetting Financial Assets and Financial Liabilities (IFRS 7) vii. Annual Improvements to IFRSs 2009-2011 Cycle IFRS Update for 31 December 2013 year ends Page 8
  9. 9. New, amended, and revised standards (31 Dec 2013) ii. Consolidation suite - Consolidated Financial Statements (1/5) • New standard IFRS 10 Consolidated Financial Statements • High level summary: - Replaces IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation – Special Purposes Entities - Introduces a single control model (power, variable returns, linkage), that is the sole basis for consolidation - Requires potential voting rights to be substantive - Specifically includes guidance relating to:  De-facto control  Agency relationships  Silos (i.e. ring-fenced assets and liabilities IFRS Update for 31 December 2013 year ends Page 9
  10. 10. New, amended, and revised standards (31 Dec 2013) ii. Consolidation suite - Joint Arrangements (2/5) • New standard IFRS 11 Joint Arrangements • High level summary: - Replaces IAS 31 Interests in Joint Ventures - Uses the same control model as IFRS 10 - Only two categories of joint arrangement - Option for proportionate consolidation removed (only equity method) - Structure of the arrangement no longer the principal factor in determining the accounting approach – must consider other facts and circumstances - Joint de-facto control (via IFRS 10) IFRS Update for 31 December 2013 year ends Page 10
  11. 11. New, amended, and revised standards (31 Dec 2013) ii. Consolidation suite - Disclosure of Interests in Other Entities (3/5) • New standard IFRS 12 Disclosure of Interests in Other Entities • High level summary: - All disclosure requirements relating to subsidiaries, joint arrangements, associates, and any other interest held in another entity are solely within IFRS 12. - Disclosures aim to help a user to understand: 1) The nature of, and risks associated with, its interests in other entities (whether these are subsidiaries, joint operations, joint ventures, associates or interests in structured entities that are not consolidated) 2) The effects of those interests on the reporting entity’s financial position, financial performance and cash flows. IFRS Update for 31 December 2013 year ends Page 11
  12. 12. New, amended, and revised standards (31 Dec 2013) ii. Consolidation suite - Separate Financial Statements (4/5) • Revised standard IAS 27 Separate Financial Statements • High level summary: - Deals only with the requirements of separate financial statements - Previous consolidation requirements moved to IFRS 10 and IFRS 12 - Disclosure requirements related to separate financial statements previously in IAS 28 and IAS 31 moved to IAS 27(R) - Expanded disclosure - principal place of business. IFRS Update for 31 December 2013 year ends Page 12
  13. 13. New, amended, and revised standards (31 Dec 2013) ii. Consolidation suite - Investments in Associates and Joint Ventures (5/5) • Revised standard IAS 28 Investments in Associates and Joint Ventures • High level summary: - Most requirements have been carried forward unchanged - Accounting for joint ventures now included IFRS Update for 31 December 2013 year ends Page 13
  14. 14. New, amended, and revised standards (31 Dec 2013) iii. Stripping Costs in the Production Phase of a Surface Mine (1/2) • IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine • Entities in surface mining may find it necessary to remove (‘strip’) mine waste materials (‘overburden’) to gain access to mineral ore deposits • In the development phase before production these costs are capitalised • In the production phase, diversity in practice existed • IFRIC 20 clarifies that in the production phase of a surface mine: - Overburden that can be used to build up inventory is accounted for under IAS 2 - Other overburden, that provides access to deeper levels of material that will be mined in future periods, is recognised as a non-current asset subject to certain criteria being met. • Effective for annual periods beginning on/after 1 January 2013, with earlier application permitted IFRS Update for 31 December 2013 year ends Page 14
  15. 15. New, amended, and revised standards (31 Dec 2013) iii. Stripping Costs in the Production Phase of a Surface Mine (2/2) • Criteria to recognise ‘stripping activity asset’: - It is probable that the future economic benefit (improved access to the ore body) associated with the stripping activity will flow to the entity - The entity can identify the component of the ore body for which access has been improved - The costs relating to the stripping activity associated with that component can be measured reliably. • The stripping activity asset is not recognised separately - added to an existing asset (tangible or intangible). IFRS Update for 31 December 2013 year ends Page 15
  16. 16. New, amended, and revised standards (31 Dec 2013) iv. Employee benefits (1/2) • Amendment to IAS 19 Employee Benefits • Main changes to defined benefit plans (DBP) include: - Elimination of the ‘corridor’ approach for deferring gains/losses - Actuarial gains/losses to be recognised in OCI rather than in P&L (and cannot be reclassified in subsequent periods). • Other changes include: - Subtle amendments to timing for recognition of termination benefits. - Employee benefits expected to be settled (vs. due to settled) wholly within 12 months after the end of the reporting period are short-term benefits, all others are non-current (and will require discounting) • Effective for annual periods beginning on/after 1 January 2013, with earlier application permitted IFRS Update for 31 December 2013 year ends Page 16
  17. 17. New, amended, and revised standards (31 Dec 2013) iv. Employee benefits (2/2) Impacts for entities with DBP • Full recognition of actuarial gains through OCI and a decrease in the net defined benefit plan deficit • Immediate recognition of past service cost in profit or loss and an increase in the net defined benefit plan deficit • Reversal through OCI of the difference in the gain arising in the expected rate of return on defined benefit plan assets and the discount rate. Impacts for all entities • Reassessment of measurement and presentation of all employee benefits (particularly annual leave balances) – will vary entity-by-entity IFRS Update for 31 December 2013 year ends Page 17
  18. 18. New, amended, and revised standards (31 Dec 2013) v. Government loans (1/1) • Amendment to IFRS 1 First-Time Adoption of IFRS • Applies to first time adopter that had received a government loan at a below- market rate • Difference between the proceeds received and the fair value of the loan is recognised prospectively • Already incorporated in IAS 20 • Retrospective application is permitted if fair value information was available when loan was granted • Effective for annual periods beginning on/after 1 January 2013, with earlier application permitted IFRS Update for 31 December 2013 year ends Page 18
  19. 19. New, amended, and revised standards (31 Dec 2013) vi. Offsetting Financial Assets and Financial Liabilities (1/2) • Amendments to IFRS 7 Financial Instruments: Disclosure and IAS 32 Financial Instruments: Presentation • Amendment clarifies that right of set-off: a) Must not be contingent on a future event b) Must be legally enforceable in all of the following circumstances i. The normal course of business ii. The event of default iii. The event of insolvency or bankruptcy of the entity and all counterparties. • Effective date - Disclosures (IFRS 7): Annual periods beginning on or after 1 January 2013 and interim periods within those annual periods (early adoption permitted). - Presentation (IAS 32): Annual periods beginning on or after 1 January 2014 (early adoption permitted) IFRS Update for 31 December 2013 year ends Page 19
  20. 20. New, amended, and revised standards (31 Dec 2013) vi. Offsetting Financial Assets and Financial Liabilities (2/2) • New disclosure requirements (in a tabular format): a) The gross amounts of those recognised financial assets and liabilities b) The amounts that are set off when determining the net amounts presented in the statement of financial position; c) The net amounts presented in the statement of financial position; d) The amounts subject to an enforceable master netting arrangement or similar agreement that are not otherwise included in paragraph b), including: i. amounts related to recognised financial instruments that do not meet some or all of the offsetting criteria; and ii. Amounts related to financial collateral (including cash collateral); and e) The net amount after deducting the amounts in d) from the amounts in c) above. IFRS Update for 31 December 2013 year ends Page 20
  21. 21. New, amended, and revised standards (31 Dec 2013) • vii(a) Repeat application of IFRS 1 (IFRS 1) • vii(b) Borrowing costs (IFRS 1) • vii(c) Clarification of requirements for comparative information (IAS 1) • vii(d) Classification of servicing equipment (IAS 16) • vii(e) Tax effect of distribution to holders of equity instruments (IAS 32) • vii(f) Interim financial reporting and segment information for total assets and liabilities Page 21 IFRS Update for 31 December 2012 year ends vii. Annual Improvements 2009-2011 Cycle
  22. 22. New, amended, and revised standards effective for periods beginning on or after 1 January 2014
  23. 23. New, amended, and revised standards Reporting periods beginning on after 1 January 2014 Amendments i. Investment Entities (IFRS 10) ii. Offsetting Financial Assets and Financial Liabilities (IAS 32 requirements) - Refer to previous section (vi) New Standards iii. IFRS 9 IFRS Update for 31 December 2013 year ends Page 23
  24. 24. New, amended, and revised standards (31 Dec 2013) i. Investment Entities (1/1) • Amendment to IFRS 10 Consolidated financial Statements • Effective for periods on/after 1 January 2014 (early adoption permitted) • Note: Not yet EU endorsed • High level summary: - Prohibits consolidation accounting for Investment Entities, instead use FVTPL - Must meet three criteria - There are also four characteristics to assess – additional disclosures required if any not met but the entity considers the definition to still be met IFRS Update for 31 December 2013 year ends Page 24
  25. 25. Status of IASB projects
  26. 26. IASB Work Plan (1/9) As at 29 July 2013 2013 Q3 2013 Q4 2014 Q1 2014 Q2 Financial Crisis related projects Classification & measurement (Limited amendments) Redeliberations Impairment (comment period ended 5 July 2013) Redeliberations General hedge accounting Target IFRS Macro hedge accounting Target DP IFRS Update for 31 December 2013 year ends Page 26
  27. 27. IASB Work Plan (2/9) As at 29 July 2013 2013 Q3 2013 Q4 2014 Q1 2014 Q2 Previous Memorandum of Understanding projects Leases (comment period ends 13 September 2013) Redeliberations Revenue recognition Target IFRS IFRS Update for 31 December 2013 year ends Page 27
  28. 28. IASB Work Plan (3/9) As at 29 July 2013 2013 Q3 2013 Q4 2014 Q1 2014 Q2 Other Significant Projects Insurance contracts (comment period ends 25 October 2013) Redeliberations Rate-regulated Activities - Interim IFRS (comment period ends 4 September 2013) Redeliberatio ns Rate-regulated Activities - Comprehensive project Target DP IFRS Update for 31 December 2013 year ends Page 28
  29. 29. IASB Work Plan (4/9) As at 29 July 2013 2013 Q3 2013 Q4 2014 Q1 2014 Q2 Narrow-scope amendments Acquisition of an Interest in a Joint Operation (IFRS 11) Target IFRS Actuarial Assumptions: Discount Rate (IAS 19) Target ED Annual Improvements 2010–2012 Target IFRS Annual Improvements 2011–2013 Target IFRS Annual Improvements 2012–2014 Target ED IFRS Update for 31 December 2013 year ends Page 29
  30. 30. IASB Work Plan (5/9) As at 29 July 2013 2013 Q3 2013 Q4 2014 Q1 2014 Q2 Narrow-scope amendments (Cont’d) Bearer Plants – amendments to IAS 41 (comment period ends 28 October 2013) Redeliberati ons Clarification of Acceptable Methods of Depreciation and Amortisation (IAS 16, IAS 38) Target IFRS Defined Benefit Plans: Employee Contributions (IAS 19) Target IFRS Disclosure Requirements about Assessment of Going Concern (IAS 1) Target ED IFRS Update for 31 December 2013 year ends Page 30
  31. 31. IASB Work Plan (6/9) As at 29 July 2013 2013 Q3 2013 Q4 2014 Q1 2014 Q2 Narrow-scope amendments (Cont’d) Equity Method: Share of Other Net Asset Changes (IAS 28) Target IFRS Fair Value Measurement: Unit of Account (IFRS 13) Target ED Put Options Written on Non- controlling Interests (IAS 32) Target ED IFRS Update for 31 December 2013 year ends Page 31
  32. 32. IASB Work Plan (7/9) As at 29 July 2013 2013 Q3 2013 Q4 2014 Q1 2014 Q2 Narrow-scope amendments (Cont’d) Recognition of Deferred Tax Assets for Unrealised Losses (IAS12) Target ED Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (IFRS10 and IAS28) Target IFRS Separate Financial Statements (Equity Method) (IAS27) Target ED IFRS Update for 31 December 2013 year ends Page 32
  33. 33. IASB Work Plan (8/9) As at 29 July 2013 2013 Q3 2013 Q4 2014 Q1 2014 Q2 Post-implementation reviews IFRS 8 Operating Segments Published Report on 18 July 2013 IFRS 3 Business Combinations Publish Request for Information IFRS Update for 31 December 2013 year ends Page 33
  34. 34. IASB Work Plan (9/9) As at 29 July 2013 2013 Q3 2013 Q4 2014 Q1 2014 Q2 Conceptual Framework Conceptual Framework chapters • Elements of financial statements • Measurement • Reporting entity • Presentation and disclosure (comment period ends 14 January 2014) Redeliberatio ns Disclosures: Discussion Forum • Feedback statement published 28 May 2013 To double check IFRS Update for 31 December 2013 year ends Page 34
  35. 35. IFRS Update for 31 December 2013 year ends ar endsPage 35 МСФО и интегрированная отчетность: настоящее и будущее Update for 31 December 2013 year ends

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