1 China Accounting Alert August 2016. This edition of China EY publications Accounting Alert introduces Applying IFRS: A closer look at the new leases standard some EY publications on IFRS, The IASB issued IFRS 16 Leases earlier this year, which requires lessees to and provides a summary of recognize assets and liabilities for most leases on their balance sheets. This could the recent developments in have implications for entities' finances and operations and may require new IFRS and news about financial processes and controls, or adjustments to existing ones, to identify and account reporting in Mainland China for leases. This edition of Applying IFRS discusses how IFRS 16 is applied and is intended to help companies consider the effects of adopting it. Preparers and users of financial statements are encouraged to read this edition of Applying IFRS. carefully and consider the potential effects of the new standard.
2 Good Insurance (International) Limited 2015. Good Insurance (International) Limited is a set of illustrative financial statements specific to the insurance industry for the year ended 31 December 2015. It was prepared in accordance with IFRS issued as at 31 August 2015. IFRS adopted by the European Union This edition of IFRS adopted by the European Union provides an overview of the status of the European Union (EU) endorsement process for IFRS standards and amendments issued by the IASB as at 30 June 2016 with an EU effective date after 1 January 2015. Information related to the EU endorsement is as of 30 June 2016. IASB news and updates Mainland news and updates IASB Update for July 2016 MOF seeks public comments on Accounting Standards for Business Enterprises The July 2016 issue of the IASB Update contains the IASB staff summary of the IASB meeting held from 18 Recently, the MOF has issued multiple exposure drafts of to 19 July 2016 when the board discussed: supplements and amendments to Accounting Standards for Business Enterprises, to seek public comments.
3 Amendments to IFRS 4 - Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts Financial instruments: The MOF has proposed amendments to Accounting Standard for Business IFRS Standards Implementation Enterprises Financial Instruments: Recognition Conceptual Framework - Definition of an asset, and Measurement, Accounting Standard for Business recognition and factors to consider when selecting a Enterprises Transfer of Financial Assets, and measurement basis Accounting Standard for Business Enterprises . Financial Instruments with Characteristics of Equity Hedging, in order to achieve the full convergence with IFRSs, and address Accounting issues in practice ( , Research Update financial asset transfer innovation such as asset 2015 Agenda Consultation securitization). The comment period for the exposure drafts of these three revised standards regarding financial instruments ends on 11 October 2016.
4 IFRIC Update for July 2016. Government grants: The MOF has proposed amendments At its July 2016 meeting, the IFRS Interpretations to Accounting Standard for Business Enterprises . Committee (IFRIC) discussed: Government Grants, mainly relating to the scope and IAS 21 The Effects of Changes in Foreign Exchange presentation of government grants as well as the Rates - Foreign currency transactions and advance Accounting treatment for subsidies on interest, to address consideration issues that emerge in practice. The comment period for the exposure draft of the revised standard ends on 5. IAS 19 Employee Benefits and IFRIC 14 IAS 19 - The September 2016. Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction - Comment Non-current assets held for sale, disposal groups and letter summary discontinued operations: The MOF has reviewed the requirements presented across different Accounting IAS 12 Income Taxes - Uncertainty over Income Tax Standards for Business Enterprises regarding non-current Treatments: Comment letter summary assets held for sale, disposal groups and discontinued IAS 12 Income Taxes - Expected manner of recovery operations, and has developed a new separate standard of indefinite life intangible assets when measuring with consideration of International Financial Reporting deferred tax Standard 5 Non-current Assets Held for Sale and Discontinued Operations.
5 The comment period for the IFRS 11 Joint Arrangements and IFRS 10. exposure draft of the new standard ends on 5 September Consolidated Financial Statements - Accounting for 2016. loss of control transactions IFRIC 12 Service Concession Arrangements - Publication of Case Studies on Listed Companies'. Payments made by an operator to a grantor in a Application of Accounting Standards for Business service concession arrangement Enterprises (2016). The July 2016 issue of the IFRIC Update summarizes Compiled by the Department of Accounting under the CSRC, what you need to know about these and other issues the 2016 edition of Case Studies on Listed Companies'. discussed at the IFRS Interpretations Committee's July Application of Accounting Standards for Business Enterprises 2016 meeting. has been published recently by China Financial & Economic Publishing House. In 2012, the Department of Accounting under the CSRC has compiled and published the first edition of the book, which was designed to provide guidance on the key areas involving listed companies' Accounting treatments.
6 In view of the new issues emerging in recent years, especially the substantial amendments to Accounting Standards for Business Enterprises in 2014, the CSRC has revised the previous case studies, adding a series of supplement case studies based on emerging issues, removing cases no longer applicable due to changes in standards, as well as improving the presentation of case studies. The case studies in this book cover key and difficult issues on Accounting standards regarding equity investments and business combinations, financial instruments, share-based payments, government grants, revenue recognition and others. China Accounting Alert 2. Contact us Hong Kong Dalian Qingdao 22/F, CITIC Tower Unit D, 10/F, International Finance Tower Unit 3904-3905. 1 Tim Mei Avenue 15 and 17 Renmin Road Qingdao International Financial Center Central, Hong Kong Zhongshan District 59 Hong Kong Middle Road Tel: +852 2846 9888 Dalian, China 116001 Shinan District Fax: +852 2868 4432 Tel: +86 411 8252 8888 Qingdao, China 266071.
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10 Ernst & Young Global Limited, a UK. company limited by guarantee, does not provide services to clients. For more information about our organization, please visit 2016 Ernst & Young, China . All Rights Reserved. APAC No. 03003668. China Accounting Alert is our monthly executive update for Mainland ED None. China and Hong Kong on recent developments in local and international financial reporting, and related hot topics and emerging This material has been prepared for general informational purposes issues. China Accounting Alert is designed to help keep you one step only and is not intended to be relied upon as Accounting , tax, or ahead by providing easy access to the information you need, all in one place. It is not intended to be a substitute for reading the other professional advice. Please refer to your advisors for specific financial reporting standards or other appropriate authoritative advice.