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. 

Cyber threat considerations related to implementation of internal accounting controls

In response to the continued increase in cybercrime, the United States Securities and Exchange Commission (SEC) issued an investigative report on 16 October 2018 that cautioned companies to consider cyber threats when they are implementing their internal accounting controls. 

What changes in US GAAP become effective this December?

With the approaching year end most of the companies are already prepared for key US GAAP changes becoming effective soon, for example changes in leasing accounting. There are however more changes upcoming. 

IFRS EU Endorsement Process: October

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 12 October 2018. 

Applying the expected credit loss model under IFRS 9 to trade receivables

IFRS 9 Financial Instruments is effective for annual periods beginning on or after 1 January 2018. Its new impairment requirements will affect almost all entities and not just large financial institutions. Where entities have material trade receivable, contract asset and lease receivable balances care is needed to ensure that an appropriate process is put in place to calculate the expected credit losses.