IFRS Updates of Standards

and Interpretations in issues

at 30 June 2017

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IFRS UPDATES

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IFRS UPDATES

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IFRS 15 Model overview

► Core principle: Recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Step 1: Identify the contract(s) with the customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations

Step 5: Recognise revenue when (or as) each performance obligation is satisfied

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IFRS UPDATES

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IFRS UPDATES

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Debt (including hybrid contracts)

“Characteristics” test (at instrument level)

“Business model” test (at an aggregated

level)

Conditional FVO elected?

Fail

Pass

No

Amortised

costFVTPL

FVOCI

(with recycling)

Hold to collect

contractual cash

flows

Neither (1)

nor (2)

Both (a) to hold to

collect contractual

cash flows; and (b)

to sell

1 32

No

Yes

Derivatives Equity

Held for trading?

FVOCI option

elected ?

Yes

No

No

Yes

FVOCI

(no recycling)

Overview of IFRS 9Classification and measurement

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Overview of IFRS 9Impairment

Change in credit risk since initial recognitionImprovement Deterioration

Loss allowance

(updated at each

reporting date)

Lifetime expected

credit losses

criterion

Interest revenue

calculated based

on

12-month

expected

credit losses

Lifetime

expected

credit losses

Lifetime

expected

credit losses

Credit risk increased significantly since initial

recognition (individually or collectively)

Effective

interest rate on

gross carrying

amount

Effective

interest rate on

gross carrying

amount

Effective

interest rate

on amortised

cost

Stage 1 Stage 2 Stage 3

Credit impaired

Scope : loans, FVOCI,

loan commitments, financial

guarantees, leasing

Start here

(with exceptions)

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IFRS UPDATES- IFRS 17 Insurance Contracts

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Applying IFRS 9 together with IFRS 4

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IFRIC 22 Foreign Currency Transactions and Advance Consideration

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Status of IASB’s active project

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Status of IASB’s active projects (cont.)

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Better communication in financial reporting

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Disclosure Initiative (DI

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Disclosure problem

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Discussion Paper (DP) – Principles of Disclosure

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Practice Statement (PS) and Exposure Draft (ED) on Materiality

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THANK YOU!