Current IFRS projects

IASB Projects: a pocketbook guide

The IASB continues to move forward with its standard-setting activities and the ability to stay one step ahead in a sea of change is critical. IASB Projects: a pocketbook guide summarises the key features of the various IASB projects, many of which are joint projects with the US FASB as part of ongoing efforts to converge IFRS and US GAAP.

In particular, the pocketbook guide summarises the proposed standards based on the tentative decisions taken to date and sets out some of the potential financial and business implications of the proposed standards, together with EYs views on the projects.

• IASB Projects. A pocketbook guide as at 30 September 2014
• IFRS Developments Issue 91. IASB concludes the 2012-2014 Annual Improvements Cycle
• IASB Projects. A pocketbook guide 30 June 2014
• IFRS Developments, Issue 79. Recent IASB and Interpretations Committee discussions on the investment entity exception. (May 2014)
• IASB Projects: A pocketbook guide as at 31 March 2014
• IASB Projects: A pocketbook guide as at 31 December 2013
• IASB Projects: A pocketbook guide as at 30 September 2013
• IASB Projects: A pocketbook guide as at 30 June 2013
• IASB Projects: A pocketbook guide as at 31 March 2013
• The June 2012 edition of IASB Projects: a pocketbook guide is now available.

Joint Project Watch

The standard-setting activities of the IASB and the FASB on their joint projects continue to move forward. The Boards have issued final standards or exposure drafts on several projects and continue to re-deliberate others. Our Joint Project Watch publication is designed to give you a snapshot of key developments from an IFRS perspective, along with our observations about the potential implications for companies.

The IASB and the FASB have issued new requirements for recognising revenue under both IFRS and US GAAP. IFRS 15 Revenue from Contracts with Customers provides a single revenue recognition model based on the transfer of control of a good or service to a customer.

The new revenue standard marks a significant change from current requirements under IFRS. It provides a more structured approach to measuring and recognising revenue, with detailed application guidance. Therefore, adoption may be a significant undertaking for many entities. Early assessment will be key to managing a successful implementation.

The standard is effective in 2017, with early adoption only permitted under IFRS.

EY thought leadership

General materials

Under a joint project, the IASB’s and FASB’s proposal for lease accounting would eliminate the distinction between operating and finance/capital leases for lessees and would result in nearly all leases being reflected on the balance sheet. The proposed model would also require lessees and lessors to make a number of estimates and periodically reassess those estimates in accounting for leases. The Boards will re-expose the proposal in 2012.

EY thought leadership

General materials

• IFRS Developments Issue 101: IASB substantially completes redeliberations on leases
• IFRS Developments Issue 99: IASB and FASB decide to require different lessee disclosures (January 2015)
• IFRS Developments Issue 96: Boards complete redeliberations of the definition of a lease (December 2014)
• IFRS Developments Issue 94: Boards reaffirm the definition of a lease but continue to work on its application (October 2014)
• IFRS Developments Issue 89: FASB addresses sale and leasebacks, US GAAP topics in leases project (September 2014)
• IFRS Developments Issue 88: Boards address sale and leaseback transactions, lessor disclosures (July 2014)
• IFRS Developments Issue 83: Boards continue their march towards new leases standard. (June 2014)
• IFRS Developments Issue 81: Is it a lease? Boards defer decision on definition of a lease (May 2014)
• IFRS Developments Issue 76: Boards make more progress on leases project (April 2014)
• IFRS Developments Issue 75: Boards back away from key aspects of leases proposal (March 2014)
• IFRS Developments Issue 69: Boards to re-deliberate key aspects of lease accounting — again (November 2013)
• Comment Letter: Comments on the IASB’s May 2013 Exposure Draft Leases (September 2013)
• Applying IFRS. How the lease accounting proposal might affect your company (August 2013)
• IFRS Practical Matters. Leases re-exposed: Another attempt at improving lease accounting (June 2013)
• Thought center webcast: Leases re-exposed (June 2013)
• IFRS Developments Issue 58: Boards issue revised leases proposal (May 2013)
• Applying IFRS. A closer look at the revised lease accounting proposal (May 2013)
• Comment Letter: Comments on Exposure Draft 2010/12 Leases (December 2010)

Industry materials

• Applying IFRS. implications of the revised Leases ED for real estate (October 2013)

The International Accounting Standards Board (IASB) issued the final version of IFRS 9 Financial Instruments on 24 July 2014. IFRS 9 brings together the classification and measurement, impairment and hedge accounting phases of the IASBs project to replace IAS 39 Financial Instruments: Recognition and Measurement and is expected to be effective for annual periods beginning on or after 1 January 2018.

IFRS 9 introduces principles-based requirements for classification and measurement. Also, the IASB has addressed the key concern that arose as a result of the financial crisis that the incurred loss model in IAS 39 contributed to the delayed recognition of credit losses, by issuing the new impairment requirements that are based on a more forward-looking expected credit loss model. The hedge accounting requirements in IFRS 9 were developed with a view to providing better information about the management activities that involve hedging.

EY thought leadership

Classification and measurement