Phil Barden highlights the disclosures that preparers and auditors of 2017 IFRS financial statements should focus on.
There are three big new International Financial Reporting Standards (IFRS) on the horizon: IFRS 9 Financial Instruments, IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases (and Audit & Beyond recently addressed some of the transition issues).
Early adoption is permitted, but none of these have to be adopted for 2017. So, what are the areas of focus for 2017 IFRS financial statements?
New IFRS requirements
There are some limited changes to IAS 12 Income Taxes relating to deferred tax assets arising from debt instruments measured at fair value. IAS 7 Statement of Cash Flows requires new disclosures aboutfinancing, which can be presented in a manner similar to ‘net debt’ reconciliations that many companies already provide voluntarily. Finally, IFRS 12 Disclosure of Interests in Other Entities has been amended to clarify which of its disclosure requirements apply to an interest that falls within the scope of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations as held for sale, held for distribution or discontinued.
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