This edition covers current developments released prior to March 31, 2018.
What happened this quarter?
Companies that have calendar year ends and are preparing interim financial statements will need to consider the newly effective standards IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments, as well as other amendments to IFRSs. Further information on these standards and amendments are provided in the section 'New standards and amendments effective in 2018'.
The interim financial statements will be prepared in accordance with the recognition and measurement requirements of IFRS 9 and IFRS 15, as well as other amendments effective in 2018. In addition to the new disclosures that are explicitly required in condensed interim financial statements, companies will have to apply significant judgement in determining how much additional disclosure is necessary to meet the objectives of IAS 34 Interim Financial Reporting. Our recently published 2018 interim illustrative disclosures provide a comprehensive illustration of the potential disclosures.
With the passing of the effective date of IFRS 9 and IFRS 15, it seems like the significant changes are behind us. However, IFRS 16 Leases is not far off with an effective date of January 1, 2019. As the effective date approaches, communication and the disclosures of the expected impact on the financial statements are required as per IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, and are expected by investors and regulators. As the implementation of the new standard progresses, more information about its impact should be known or reasonably estimable and so entities should be able to provide more entity specific qualitative and quantitative information throughout 2018.
Other activities in the first quarter include the issuance by the International Accounting Standards Board (IASB) of a narrow scope amendment to IAS 19 Employee Benefits, the first meeting of the IFRS 17 Insurance Transition Resource Group and the release of the IASB's revised Conceptual Framework for Financial Reporting.