With the new revenue and financial instruments standards effective from New Year’s Day, transition to the new accounting standards just got real.
The game has changed for good. The new requirements of IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers will affect different companies from all sectors in different ways, the priorities of which cannot be set properly without a robust assessment.
There is no time to wait – all companies need to complete their transition projects, address the wider business implications and meet the expectations of stakeholders and regulators. Following the transition, it's vital for our clients to set the right tone in applying these new accounting standards in the first year for their future “business as usual” practices. It requires their attention, effort and resources from across their organisations.
The new lease standard (IFRS 16) that will take effect in January 2019 should also not be left behind. It requires companies to bring most leases onto the balance sheet. With multiple transition options and expedients to choose from, companies need to decide on a trade-off between cost and comparability. Decisions on transition could also impact the income statement for years to come. The time to act is now!
How is your company’s transition to these new standards progressing? We provide services and resources to help companies assess their new IFRS readiness – Please visit our IFRS news webpage to find out more updates and KPMG insights about the new standards, including the revenue, financial instruments and leases standards. For more information, please talk to your usual KPMG contact.
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