IASB issues minor changes to IFRS
The IASB issued several amendments to IFRS Standards and an Interpretation that clarifies the requirements in particular Standards. These changes are part of the Board’s process to maintain IFRS Standards.
The changes include:
Shining the Light on Leases
IFRS 16 will require leases to be carried on corporate balance sheets from January 2019
The new IFRS 16 Leases standard, replaces accounting standards (IAS 17) indroduced more than 30 years ago. As there are a lot of leases in the market, a major revision has been proposed to the way companies accounts for leases. Listed companies have trillion of them, of which more than 85% of them do not appear on Statements of Financial Position. IASB chair Hans Hoogervorst says that when IFRS 16 becomes effective in 2019 it will result in a substantial change to many companies Balance Sheet.
China to explore further use of IFRS
The IFRS Foundation and the Chinese Ministry of Finance today announced the formation of a joint working group to explore ways and steps to advance the use of IFRS Standards within China, especially for internationally oriented Chinese companies.
IFRS 15 – Revenue from contracts with customers.
The new IFRS 15
- Replaces IAS 18 Revenue, IAS 11 Construction Contracts and some revenue-related Interpretations,
- Establishes a new control-based revenue recognition model,
- Changes the basis for deciding whether revenue is to be recognized over time or at a point in time,
- Provides new and more detailed guidance on specific topics,
- Expands and improves disclosures about revenue.
The Standard will impact all entities in all industries, but the extent of the impact can vary significantly.