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IFRS for Real Estate

IFRS for Real Estate

IFRS requirements are evolving, especially for real estate sector! Are you good to go?

IFRS requirements are evolving, especially for real estate sector! Are you good to go?

The International Accounting Standards Board (IASB) issued new accounting standards (IFRS 9, IFRS 15, and IFRS 16) that brought unique challenges—in particular to the real estate sector. Additionally, regulators expect issuers to provide certain entity-specific qualitative and quantitative information about the impact of these new standards.

IFRS 9 replaced IAS 39 Financial Instruments: Recognition and Measurement and introduced new guidance for classification and measurement, impairment of financial instruments, and hedge accounting. IFRS 15 introduced a new recognition model for contracts with customers and extensive new disclosure requirements, some of which will have a notable impact within the global real estate sector. IFRSs 9 and 15 were both effective for annual periods beginning on or after 1 January 2018.

IFRS 16, which is effective for annual periods beginning on or after 1 January 2019 (early adoption permitted), requires lessees to recognize new assets and liabilities using an on-balance-sheet accounting model that is similar to current finance lease accounting.

KPMG Luxembourg has created this site to assist real estate companies with how to address and deal with the IFRS requirements, which are expected to evolve and to continue affecting the real estate sector in the coming years.

If you would like an overview of the effective dates for IFRS inside and outside the EU, have a look at our IFRS Calendar. Please find also our Guides to IFRS financial statements.

© 2020 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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