Closing Out 2019 in IFRS Financial Statements

This article provides a high-level overview of the new and revised Standards and Interpretations that are effective for the December 2019 calendar year-end 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 2019.

A word of caution regarding early adoption of Standards and Interpretations in the case of entities that prepare financial statements according to IFRS as adopted by the European Union (EU). Standards, Interpretations and amendments to the existing standards, which were not endorsed for use in the EU, cannot be applied by the entities preparing their financial statements in accordance with IFRS as adopted by the EU.

Where applicable, we have made reference to past issues of Accounting News dealing with the specific Standard or Interpretation in greater detail. These past newsletters are also available at As always, entities should refer to the Standards and Interpretations themselves to identify all of the changes that may affect their particular circumstances.

Where a Standard or Interpretation is adopted in advance of its effective date, disclosure of that fact is generally required.

Even where there is no intention to implement a Standard or Interpretation in advance of its effective date, entities need to be aware of new Standards and Interpretations as they are issued, in order to comply with the requirement included in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to disclose in their financial statements the potential impact of Standards and Interpretations in issue but not yet effective. This requirement is valid irrespective of whether a Standard or Interpretation has already been endorsed in the EU.

We therefore recommend reviewing further newly issued amendments to standards and interpretations that will be approved by the date of the issuance of a company’s financial statements. We will be providing updates on these developments on and in our Accounting News.

The effective dates of IFRSs issued by the IASB and IFRSs as adopted by the EU can be different.

New and Revised Standards and Interpretations

The following tables provide a list of new and revised Standards and Interpretations in issue as of 26 January 2020 that are either effective, or available for early adoption, for 31 December 2018 calendar year-end.

All of the newsletters referred to may be found here.

*In June 2019, the IASB issued Exposure Draft Amendments to IFRS 17. In this Exposure Draft, the IASB proposes to defer the mandatory effective date of IFRS 17 by one year, so that entities would be required to apply IFRS 17 for annual periods beginning on or after 1 January 2022.

In the special edition of IFRS in Focus – Closing out 2019, you can find financial reporting issues that may be relevant for years ending on or after 31 December 2019 as a result of areas of regulatory focus, the current economic environment or changes in accounting standards. This 24-page publication covers the following topics:

  • Initial application of IFRS 16 Leases
  • How to improve and refine disclosures required by IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers
  • Reporting the effects of income tax
  • Impairment reviews
  • Brexit and 2019 annual reports (relevant for entities with material operations in the United Kingdom)
  • The use of ‘non-GAAP’ or alternative performance measures
  • Changes resulting from the Interest Rate Benchmark Reform
  • Changes to the definition of a business
  • ESG disclosures (environmental, social, and governance)
  • Currency and hyperinflation
  • Disclosure of judgements and estimates
  • IFRS Interpretations Committee agenda decisions in 2019

Sources: IFRS in Focus – Closing out

IASB IFRS dReport newsletter

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