ifrs updates of standards and interpretations in issues at ... · slide 5 ifrs updates. slide 6...
TRANSCRIPT
IFRS Updates of Standards
and Interpretations in issues
at 30 June 2017
. Slide 2
IFRS UPDATES
. Slide 3
IFRS UPDATES
. Slide 4
IFRS 15 Model overview
► Core principle: Recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
Step 1: Identify the contract(s) with the customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations
Step 5: Recognise revenue when (or as) each performance obligation is satisfied
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IFRS UPDATES
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IFRS UPDATES
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Debt (including hybrid contracts)
“Characteristics” test (at instrument level)
“Business model” test (at an aggregated
level)
Conditional FVO elected?
Fail
Pass
No
Amortised
costFVTPL
FVOCI
(with recycling)
Hold to collect
contractual cash
flows
Neither (1)
nor (2)
Both (a) to hold to
collect contractual
cash flows; and (b)
to sell
1 32
No
Yes
Derivatives Equity
Held for trading?
FVOCI option
elected ?
Yes
No
No
Yes
FVOCI
(no recycling)
Overview of IFRS 9Classification and measurement
. Slide 8
Overview of IFRS 9Impairment
Change in credit risk since initial recognitionImprovement Deterioration
Loss allowance
(updated at each
reporting date)
Lifetime expected
credit losses
criterion
Interest revenue
calculated based
on
12-month
expected
credit losses
Lifetime
expected
credit losses
Lifetime
expected
credit losses
Credit risk increased significantly since initial
recognition (individually or collectively)
Effective
interest rate on
gross carrying
amount
Effective
interest rate on
gross carrying
amount
Effective
interest rate
on amortised
cost
Stage 1 Stage 2 Stage 3
Credit impaired
Scope : loans, FVOCI,
loan commitments, financial
guarantees, leasing
Start here
(with exceptions)
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IFRS UPDATES- IFRS 17 Insurance Contracts
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Applying IFRS 9 together with IFRS 4
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IFRIC 22 Foreign Currency Transactions and Advance Consideration
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Status of IASB’s active project
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Status of IASB’s active projects (cont.)
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Better communication in financial reporting
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Disclosure Initiative (DI
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Disclosure problem
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Discussion Paper (DP) – Principles of Disclosure
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Practice Statement (PS) and Exposure Draft (ED) on Materiality
. Slide 19
THANK YOU!