As IFRS (International Financial Reporting Standards) are evolving fast, we are continuing our focus on the latest IASB's (International Accounting Standards Board) updates. The following synthesis aims to help SAP customers and partners anticipate the potential impact of short-term IFRS evolution both on their business processes and SAP BusinessObjects solutions for consolidation.
Since our last blog published in January 2016, the following publications have been issued by the IASB:
IFRS 16 - Leases
IFRS 16, published in January 2016, is the conclusion of a major project started in 2005 to significantly reform lease accounting. For more information, please consult our dedicated blog hereIFRS 16: a new standard for lease accounting.
Other publications
The amendments to IAS 12 (Income Taxes) clarify how to account for deferred tax assets related to debt instruments measured at fair value.
The amendments to IFRS 15 (Revenue from Contracts with Customers) do not change the underlying principles of the standard but gives more guidance on how those principles should be applied. The amendments have the same effective date as the standard: 1 January 2018.
The amendments to IFRS 2 (Share-based Payment) clarify how to account for certain types of share-based payment transactions.
Lastly, the proposed amendments to IFRS 3 (Business Combinations) and IFRS 11 (Joint Arrangements) relate to the definition of a business on one hand and to the accounting for previously held interests in a joint arrangement on the other hand. We will carry out a deeper analysis if these amendments are eventually adopted (comments period ending on 31 October 2016).
Update of IASB Work Plan
Only one major long-awaited project remains on the Board's Work Plan: the new version of IFRS 4 (Insurance Contracts) is currently being drafted and is expected around the end of 2016. Its effective date will not be earlier than 2020.
Another major project named Disclosure Initiative, currently at an early stage, may bring significant changes to the presentation of financial statements and related disclosures.
In addition to these major projects, the IASB works on many other topics, which can be classified under two categories. On one hand, the implementation projects relate to existing standards for which amendments are considered. On the other hand, the research program is a portfolio of projects that require further research before the IASB decides whether they should be developed into full projects. No major publication is expected regarding those projects in H2 2016.
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