Closing Out 2018 in IFRS Financial Statements

This article provides a high-level overview of the new and revised Standards and Interpretations that are effective for December 2018 calendar year-ends and subsequent accounting periods. Entities are, however, generally permitted to adopt the new and revised Standards and Interpretations in advance of their effective dates (refer to individual Standards and Interpretations for additional details). This article provides a summary of IFRSs and interpretations that an entity may elect to apply for the year ended 31 December 2018. 

FASB publishes Q&A Document on Estimating Credit Loss Reserves

Do you prepare any set of financial information or full set of financial statements based on the US GAAP? 

Recognition of bonuses for work and life jubilees in Czech accounting

Low unemployment and demand exceeding supply of certain professions mean that employers compete in introducing wide portfolios of newly structured benefits in the hope of obtaining the necessary reinforcements for their teams. Traditional benefits are experiencing a renaissance in many companies, helping retain existing employees and strengthen their loyalty. Employee bonuses for work anniversaries and major birthdays are starting to reappear and employers newly offer bonuses to mark the occasion of marriage, birth of a child etc. And questions resurface regarding the correct way to account for these traditional benefits. 

IFRS EU Endorsement Process: January

The European Financial Reporting Advisory Group (EFRAG) updated its report showing the status of endorsement of each IFRS, including standards, interpretations, and amendments, most recently on 14 January 2019. 

IFRS EU Endorsement Process: November

The European Financial Reporting Advisory Group (EFRAG) updated its report showing the status of endorsement of each IFRS, including standards, interpretations, and amendments, most recently on 2 November 2018. 

IFRIC 23 endorsed for use in the EU

On 23 October 2018, IFRIC 23 Uncertainty over Income Tax Treatments was endorsed by the European Commission for use in the European Union. The EU effective date is the same as the IASB’s effective date (annual periods beginning on or after 1 January 2019). Earlier adoption of IFRIC 23 is permitted. 

IASB issued amendments to IAS 1 and IAS 8 regarding the definition of materiality

On 31 October, the International Accounting Standards Board (IASB) issued ‘Definition of Material (Amendments to IAS 1 and IAS 8)’ to clarify the definition of ‘material’ to make it easier for companies to make materiality judgements. 

Restructuring Reserve

Restructuring refers to a programme that significantly changes an entity’s subject of business or the way it operates. If the entity enters the restructuring process, it should create a restructuring reserve in line with applicable legislation as of the effective date of the restructuring. 

IASB issued amendments to IFRS 3 regarding the definition of a business

On 22 October 2018, the IASB issued 'Definition of a Business (Amendments to IFRS 3)' aimed at resolving the difficulties that arise when an entity determines whether it has acquired a business or a group of assets. The amendments are effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 January 2020.