IFRS Update - EY

1 EY ifrs Core Tools ifrs Update of standards and interpretations in issue at 28 february 2014 . Contents Introduction 2. Section 1: New pronouncements issued as at 28 february 2014 4. Table of mandatory application 4. ifrs 1 Government Loans Amendments to ifrs 1 6. ifrs 7 Disclosures Offsetting financial Assets and financial Liabilities Amendments to ifrs 7 6. ifrs 9 financial Instruments 7. ifrs 10 Consolidated financial Statements, IAS 27 Separate financial Statements 8. ifrs 10, ifrs 12 and IAS 27 Investment Entities (Amendments) 9. ifrs 11 Joint Arrangements, IAS 28 Investments in Associates and Joint Ventures 10.

2 ifrs 12 Disclosure of Interests in Other Entities 11. ifrs 13 Fair Value Measurement 12. ifrs 14 Regulatory Deferral Accounts 12. IAS 1 Presentation of Items of Other Comprehensive Income Amendments to IAS 1 13. IAS 19 Employee Benefits (Revised) 13. IAS 19 Defined Benefit Plans: Employee Contributions Amendments to IAS 19 14. IAS 32 Offsetting financial Assets and financial Liabilities Amendments to IAS 32 14. IAS 36 Recoverable Amount Disclosures for Non- financial Assets Amendments to IAS 36 15. IAS 39 Novation of Derivatives and Continuation of Hedge Accounting Amendments to IAS 39 15. IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine 16.

3 IFRIC 21 Levies 16. Improvements to international financial reporting standards 17. Section 2: Items not taken onto the Interpretations Committee's agenda 20. Section 3: Expected pronouncements from the IASB 23. ifrs Update of standards and interpretations in issue at 28 february 2014 1. Introduction Companies reporting under international financial reporting This section is presented in the numerical order of the standards ( ifrs ) continue to face a steady flow of new pronouncements, except the AIP. All AIP amendments are standards and interpretations. The nature of the resulting presented at the end of Section 1.

4 Changes ranges from significant amendments of fundamental In addition, a table comparing mandatory application for different principles to some minor changes from the annual year ends is presented at the beginning of Section 1. In the table, improvements process (AIP). They will affect many different the pronouncements are presented in order of their effective areas of accounting ranging from the presentation of financial dates. However, many pronouncements contain provisions that statements to changes to particular elements, such as financial would allow entities to adopt in earlier periods. instruments and employee benefits.

5 When a standard or interpretation has been issued, but has yet to Some of the changes have implications that go beyond matters be applied by an entity, IAS 8 Accounting Policies, Changes in of accounting, potentially also impacting the information Accounting Estimates and Errors requires the entity to disclose any systems of many entities. Furthermore, the changes may known (or reasonably estimable) information relevant to impact business decisions, such as the creation of joint understanding the possible impact that the new pronouncement arrangements or the structuring of particular transactions. will have on the financial statements, or indicate the reason for not The challenge for preparers is to gain an understanding doing so.

6 The table at the beginning of Section 1 is helpful in of what lies ahead. identifying the pronouncements that fall within the scope of this disclosure requirement. Purpose of this publication Section 2 provides a summary of the agenda rejection notices This publication provides an overview of the upcoming published in the IFRIC Update1 since March 2013 that are changes in standards and interpretations (pronouncements). considered to provide relevant guidance on the application of It does not attempt to provide an in-depth analysis or ifrs . In some rejection notices, the Interpretations Committee discussion of the topics.

7 Rather, the objective is to highlight refers to the existing pronouncements that provide adequate key aspects of these changes. Reference should be made to guidance. These rejection notices provide a view on the the text of the pronouncements before taking any decisions or application of the pronouncements and fall within other actions. accounting literature and accepted industry practices' in paragraph 12 of IAS 8. This publication consists of three sections, which are summarised below. Section 3 lists expected pronouncements from the IASB and the Interpretations Committee. As mentioned above, if a standard or Section 1 provides a high-level overview of the key interpretation is published prior to the date on which the financial requirements of each pronouncement issued by the IASB and statements are authorised for issue, an entity will have to provide the ifrs Interpretations Committee (Interpretations the IAS 8 disclosures for pronouncements that are issued but not Committee) as at 28 february 2014 that is applicable for the yet effective.

8 First time for fiscal years ended March 2014 and thereafter. This overview provides a summary of the transitional requirements and a brief discussion of the potential impact that the changes may have on an entity's financial statements. 1 The IFRIC Update is available on the IASB's website at +Updates/IFRIC+ 2 ifrs Update of standards and interpretations in issue at 28 february 2014 ifrs Core Tools Also available from EY: This publication provides an overview of new pronouncements Other EY publications issued as at 28 february 2014 that contribute to a significant References to other EY publications that contain further amount of accounting change expected in the coming years.

9 Details and discussion on these topics are included Frequent changes to ifrs add to the complexity entities face throughout the ifrs Update , all of which can be when approaching the financial reporting cycle. downloaded from our website EY's ifrs Core Tools provide the starting point for international GAAP 20142. assessing the impact of these changes to ifrs . Our ifrs Our international GAAP 2014 is a comprehensive guide to Core Tools include a number of practical building blocks interpreting and implementing ifrs . It includes pronouncements that can help the user to navigate the changing landscape mentioned in this publication that were issued prior to September of ifrs .

10 In addition to this publication, EY's ifrs Core Tools 2013, and it provides examples that illustrate how the include the publications described below. requirements are applied. international GAAP Disclosure Checklist Our 2014 international GAAP Disclosure Checklist as at february 2014 captures disclosure requirements applicable to periods ended 30 June 2014 , disclosures that are permitted to be adopted early, and disclosure requirements for all pronouncements issued as at 28 february 2014 . This tool assists preparers to comply with the presentation and disclosure requirements of ifrs in their interim and year-end ifrs financial statements.