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Page 2
Agenda
Pronouncements Effective First annual year of application*
Zatwierdzony przez UE?**
IFRS 1 First-time Adoption of International Financial Reporting Standards (Amendment) - Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters
1 July 2011 31 December 2012 !
IFRS 7 Financial Instruments: Disclosures (Amendment) 1 July 2011 31 December 2012 IAS 12 Income Taxes (Amendment) - Deferred Taxes: Recovery of Underlying Assets
1 January 2012 31 December 2012 ! IAS 1 Presentation of Items of Other Comprehensive Income - Amendments to IAS 1
1 July 2012 31 December 2013
IFRS 1 Government Loans - Amendments to IFRS 1 1 January 2013 31 December 2013 ! IFRS 7 Disclosures - Offsetting Financial Assets and Financial Liabilities - Amendments to IFRS 7
1 January 2013 31 December 2013 IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial Statements
1 January 2013 31 December 2013 IFRS 11 Joint Arrangements, IAS 28 Investments in Associates and Joint Ventures
1 January 2013 31 December 2013
* Financial year = calendar year
** as of 26 November 2012
Page 3
Agenda (contd.)
Pronouncements Effective First annual year of application*
Zatwierdzony przez UE?**
IFRS 12 Disclosure of Interests in Other Entities 1 January 2013 31 December 2013 Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12)
1 January 2013 31 December 2013 !
IFRS 13 Fair Value Measurement 1 January 2013 31 December 2013
IAS 19 Employee Benefits (Revised) 1 January 2013 31 December 2013 IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
1 January 2013 31 December 2013
Annual Improvements to IFRSs - 2009-2011 Cycle 1 January 2013 31 December 2013 ! IAS 32 Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32
1 January 2014 31 December 2014 Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27)
1 January 2014 31 December 2014
IFRS 9 Financial Instruments - Classification and Measurement 1 January 2015 31 December 2015
* Financial year = calendar year
** as of 26 November 2012
Page 4
IFRS 1 First-time Adoption of IFRS (Amendment) - Severe
Hyperinflation and Removal of Fixed Dates for First-time Adopters
► Provides guidance on how an entity
should resume presenting IFRS
financial statements when its functional
currency ceases to be subject to severe
hyperinflation
► Creates new exemption on transition to
IFRS on or after the functional currency
normalisation date
► Allows the use of fair value as
deemed cost of assets and liabilities
► Provides relief from the requirement
to provide comparative information
Transition
► Earlier application permitted, which must be disclosed
► Requires source
and documentation of the
fair value estimation if the
new deemed cost
exemption availed
Effective for annual periods beginning on or after 1 July 2011
Key requirements Financial statement impact Considerations
► Allows entities that were
subject to severe
hyperinflation in the past to
recommence reporting
under IFRS
► Removes legacy fixed dates relating to
derecognition and day one gain or loss
transactions; replaced with the date of
transition to IFRS
► Relief to first-time adopters
by reducing the cost and
resources required to
retrospectively restate past
transactions
Page 5
IFRS 7 Financial Instruments: Disclosures (Amendment)
► Additional quantitative and
qualitative disclosures relating to
transfers of financial assets when:
► Financial assets are
derecognised in their entirety,
but there is a continuing
involvement in them (e.g.,
options or guarantees on the
transferred assets)
► Financial assets are not
derecognised in their entirety
► More extensive disclosures, e.g.,
estimated maximum exposure to
loss arising from continuing
involvement
Transition
► No comparative disclosures required for any period beginning before the effective date
► Earlier application permitted, which must be disclosed
► May require modification
of management information
systems and internal
controls to obtain the
necessary quantitative
information to make the
disclosures
Effective for annual periods beginning on or after 1 July 2011
Key requirements Financial statement impact Considerations
Page 6
IAS 12 Income Taxes (Amendment) - Deferred Taxes: Recovery of Underlying Assets
► May change deferred tax
measurement in certain
jurisdictions for applicable
assets
Transition
► Retrospective application; earlier application permitted, which must be disclosed
► Requires exercise
of judgement to
determine deferred
tax basis, including
analyses of
business model
Effective for annual periods beginning on or after 1 January 2012
Key requirements Financial statement impact Considerations
Investment properties at
fair value under IAS 40
Non-depreciable assets
measured using IAS 16
revaluation model
Introduces a rebuttable
presumption - deferred
tax measured on a sale
basis
Business model indicates
consumption of the
property in the business
Deferred tax always
measured on a sale
basis Unless
Deferred tax measured
on an own use basis
Page 7
IAS 1 Presentation of Items of Other Comprehensive Income - Amendments to IAS 1
► Changes the grouping of items presented in OCI
► OCI items to be reclassified to P&L in future
(e.g., effective portion of changes in hedging
instruments in a cash flow hedge) presented
separately from items never reclassified to
P&L (e.g., changes in PPE revaluation surplus)
► Does NOT change:
► Nature of items recognised in OCI
► Determination of whether OCI items are
reclassified through P&L in future
► Enables easier identification of
the potential impact that OCI
items may have on future P&L
Transition
► Retrospective application; earlier application permitted, which must be disclosed
► No significant consideration
Effective for annual periods beginning on or after 1 July 2012
Key requirements Financial statement impact Considerations
Page 8
IFRS 1 Government Loans - Amendments to IFRS 1
► Current IFRS requires entities to measure
government loans with below-market
interest rates at fair value, with the benefit
accounted for as a government grant
► Amendment to IFRS 1 requires a
first-time adopter to apply this requirement
prospectively to government loans existing
at the date of transition to IFRS
► A first-time adopter may choose to apply
these requirements retrospectively to any
government loan, if the information
needed had been obtained at the time of
initially accounting for the loan
► Relief to first-time adopters by
reducing the cost of transition to
IFRS
► Restriction on retrospective fair
valuation of government loans may
impact:
► Financial position at date of
transition to IFRS
► Future P&L
Transition
► Earlier application permitted, which must be disclosed
► Source documentation
and timing of fair value
information required if
entity chooses
retrospective application
Effective for annual periods beginning on or after 1 January 2013
Key requirements Financial statement impact Considerations
Page 9
IFRS 7 Disclosures - Offsetting Financial Assets and Financial Liabilities - Amendments to IFRS 7
At minimum, the following disclosure is required ► Provides information useful
in evaluating the effect of
netting arrangements on an
entity’s financial position
► Retrospective application,
combined with 2013
effective date, creates an
urgent need to gather
related data and
information to make these
disclosures
Transition
► Retrospective application
► No reference to early adoption. However, if an entity chooses to early adopt IAS 32 Offsetting Financial Assets and
Financial Liabilities – Amendments to IAS 32, it must also make the disclosures required by this amendment
► May require
modification of
management
information systems
and related internal
controls, including
linking credit
systems to
accounting systems
Effective for periods beginning on or after 1 January 2013
Key requirements Financial statement impact Considerations
Gross amount
Amounts offset in accordance with
IAS 32 Financial Instruments: Presentation
Net amount reported in statement of
financial position
Amounts subject to an enforceable
master netting agreement that do not
result in net presentation
Net amount
A
B
C=A-B
D
E= C-D
Page 10
IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial Statements
Transition
► Modified retrospective application taking into account whether the control assessment is different under IFRS 10
► Only one comparative period required to be restated
► Early adoption permitted if IFRS 11, IFRS 12, IAS 27(Revised) and IAS 28 (Revised) also adopted at the same time
► Consolidation model entirely founded
on the notion of control applicable to
all entities (including SPEs)
► New definition of control
► Continuous reassessment of control
required
► New and broader definition
of control may result in
changes to a consolidated
group:
► On transition to IFRS 10
► In future reporting
periods due to
continuous
reassessment
Requires:
► Judgement of facts and circumstances
► Assessment of control, including
comprehensive understanding of:
► Investee’s purpose, design and activities
► Investor’s rights and exposures to
variable returns
► Rights and returns of other investors
► Additional procedures and internal controls
to:
► Identify controlled entities
► Assess internal and external evidence
► Inputs from sources outside accounting
function
Effective for annual periods beginning on or after 1 January 2013
Key requirements Financial statement impact Considerations
Power to direct relevant activities
Exposure or rights to variable returns
Link between power and exposure
+
+
Page 11
IFRS 11 Joint Arrangements, IAS 28 Investments in Associates and Joint Ventures
Transition
► Modified retrospective application; similar to the IFRS 10 relief, only one comparative period required to be restated
► Early adoption permitted if IFRS 10, IFRS 12, IAS 27(Revised) and IAS 28 (Revised) also adopted at the same time
Effective for annual periods beginning on or after 1 January 2013
► Requires significant
judgement and
comprehensive analysis
of existing arrangements
to:
► Assess whether joint
control exists
► Determine the
appropriate
classification
Key requirements Financial statement impact Considerations
► New classification may
change accounting for
arrangements previously
considered to be JCEs as
they may be potentially
classified as JOs
► Significant change for
entities currently applying
proportionate consolidation
to account for JCEs
IAS
31
IF
RS
11
Jointly
controlled
entities (JCE)
Jointly controlled
assets (JCA)
Jointly controlled
operations(JCO)
Joint ventures (JV)
Parties have rights to
the net assets of the
arrangement
Joint operations (JO)
Parties have rights to the assets
and obligations for the liabilities of
the arrangement
Recognise assets,
liabilities, expenses
and share of
income
Recognise share of
assets, liabilities,
income and
expenses
Equity method or
proportionate
consolidation
Recognise assets, liabilities,
revenue, and expenses, and/or
relative shares thereof
►Equity method (now
sunder IAS 28)
►Proportionate
consolidation coped
prohibited
Page 12
IFRS 12 Disclosure of Interests in Other Entities
Transition
► Retrospective application with some relief; similar to the IFRS 10, only one comparative period required to be restated
► Earlier application permitted including partial application
Effective for annual periods beginning on or after 1 January 2013
► Disclosure of significant judgements and assumptions
► Key financial information of group entities
► Disclosure of interest in unconsolidated structured entities
► More extensive
disclosures available to
users when making
assessment of the
financial impact of group
entities
► Requires additional
procedures, and
changes to information
systems, to gather
information to make
new disclosures
► Requires significant
judgement to
determine
‘unconsolidated
structured entities’
Key requirements Financial statement impact Considerations
Draws
together
disclosure
related to
Subsidiaries
Joint arrangements
Associates
Unconsolidated structured entities
Objective: to establish the information necessary to evaluate:
► Nature of, and risks associated with, interests in other
entities
► Effects of those interests on the financial position, financial
performance and cash flows
Page 13
IFRS 13 Fair Value Measurement
► Establishes a single set of
principles on how to determine
fair value of financial and
non-financial assets and
liabilities, when required or
permitted under IFRS
► Requires new disclosures on
valuation techniques and inputs
used to determine fair values
and the effect of certain inputs
on fair value measurement
► May lead to changes in fair value
measurement
► May require additional disclosures to be
provided
Transition
► Prospective application; earlier application permitted, which must be disclosed
► Requires:
► Re-evaluation of
techniques, inputs,
processes and procedures
to determine fair value and
provide appropriate
disclosures
► Availability of appropriate
valuation expertise
Effective for annual periods beginning on or after 1 January 2013
Key requirements Financial statement impact Considerations
Page 14
IAS 19 Employee Benefits (Revised)
Transition
► Retrospective application with limited exceptions; earlier application permitted, which must be disclosed
Effective for annual periods beginning on or after 1 January 2013
Defined benefit plans:
► Higher balance sheet
volatility for those following
corridor approach or having
unvested past service cost
► Remeasurements, including
actuarial movements,
permanently bypass earnings
► Requires:
► Compliance by actuaries
with the revised
requirements
► Additional procedures,
internal controls and
actuarial information for
new/revised disclosures,
such as disclosure of
sensitivity analyses
► Additional judgement
and estimates, e.g., to
determine expected timing
of settlement of employee
benefits
Key requirements Financial statement impact Considerations
Defined benefit plans:
► Corridor approach removed, requires immediate
recognition of changes to plan
assets/obligations
► Concept of expected returns removed, interest
must be recognised on net plan obligation/asset
► Service cost and net interest charged to P&L
► Remaining changes in plans recognised in OCI
► Past service cost recognised immediately
► New disclosures, including sensitivity analyses
of defined benefit plans
Other changes:
► Short-term vs long-term employee benefits
classification based on expected timing of
settlement rather than employee entitlements
► Timing of recognition of termination benefits
Page 15
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
► Requires capitalisation of production stripping
costs as part of an asset, if criteria met
► Classified as:
► Inventory, if benefits realised in current
period
► Non-current asset (‘stripping activity asset’)
if the benefit is the improved access to ore,
recognised as addition to or enhancement
of existing asset, e.g., mine asset
► Initially measured at cost plus directly
attributable overhead
► Subsequently measured using either:
► Cost model
Or
► Revaluation model
► May represent a change
from the current approach
used, e.g., average life of
mine strip ratio
► Depending on the specific
facts and circumstances,
these changes may
impact both the financial
position and P&L
Transition
► IFRIC 20 applied to stripping costs incurred on or after the beginning of the earliest period presented
► Full retrospective application not required, instead practical expedient provided for stripping costs incurred and
capitalised prior to that date
► Earlier application permitted, which must be disclosed
► Requires management
judgement for assessment of:
► The capitalisation criteria
► Identification of
‘components’ of mine
► Depreciation approach
Effective for annual periods beginning on or after 1 January 2013
Key requirements Financial statement impact Considerations
Page 16
Annual Improvements to IFRSs - 2009-2011 Cycle
Effective for annual periods beginning on or after 1 January 2013
IFRS 1 First-time Adoption of International Financial Reporting Standards
IAS 1 Presentation of Financial Statements
The first amendment clarifies that an entity that has stopped applying IFRS may choose either of the following in order to
resume reporting under IFRS :
► Re-apply IFRS 1, even if it had applied IFRS 1 in a previous reporting period
Or
► Apply IFRS retrospectively (i.e., as if it had never stopped applying IFRS)
An entity must disclose the reasons why it previously stopped and subsequently resumed reporting under IFRS
The second amendment clarifies that, upon adoption of IFRS, an entity that capitalised borrowing costs under previous
GAAP:
► May carry forward, without adjustment, the amount previously capitalised in the opening statement of financial position
at the date of transition
► Is required to apply IAS 23 Borrowing Costs to subsequent borrowing costs, including those incurred on qualifying
assets under construction
The amendment clarifies the difference between voluntary additional comparative information and the required minimum
comparative information :
► When additional financial statements are voluntarily provided:
► Need not be a complete set of financial statements - only related notes are required
► When a ‘third balance sheet’ is required under IAS 1:
► Need not present related notes to the opening balance sheet
Page 17
Annual Improvements to IFRSs - 2009-2011 Cycle (contd.)
Transition
► Retrospective application; earlier application permitted, which must be disclosed
The amendment clarifies the requirements in IAS 34 relating to segment information for total assets and liabilities for
each reportable segment to enhance consistency with the requirements in IFRS 8 Operating Segments:
► Total assets and liabilities for a particular reportable segment need to be disclosed only when:
► The amounts are regularly provided to the chief operating decision maker
And
► There has been a material change in the total amount disclosed in the entity’s previous annual financial statements
for that reportable segment
IAS 16 Property, Plant and Equipment
IAS 12 Income Taxes
IAS 34 Interim Financial Reporting
Classification of servicing equipment:
► The amendment clarifies that major spare parts and servicing equipment that meet the definition of property, plant
and equipment are not inventory
Tax effects of distribution to holders of equity instruments:
► The amendment removes existing income tax requirements from IAS 32 Financial Instruments: Presentation and
requires entities to apply the IAS 12 requirements to any income taxes arising from distributions to equity holders
Page 18
IAS 32 Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32
Transition
► Retrospective application; early application permitted, only if disclosure of the fact made and the disclosures
required by IFRS 7 Disclosures – Offsetting Financial Assets and Financial Liabilities – Amendments to IFRS 7
made
Effective for annual periods beginning on or after 1 January 2014
► Clarifies the meaning of
‘currently has a legally
enforceable right to set-off’
► Clarifies the criteria for
non-simultaneous settlement
mechanisms of clearing houses
(e.g., batch processing) to
qualify for offsetting
► May change assets and liabilities eligible
for net presentation
► Changes in offsetting may impact
leverage ratios and regulatory capital
requirements
► Requires review of legal
documentation and
settlement procedures to
ensure that offsetting is still
possible in cases where it
has been achieved in the
past
Key requirements Financial statement impact Considerations
Page 19
Investment entities – amendments to IFRS 10, IFRS 12 and IAS 27
Transition
► Retrospective application; early application permitted
Effective for annual periods beginning on or after 1 January 2014
► The exception to consolidation
requires investment entities
to account for subsidiaries at
fair value through profit or loss
in accordance with IFRS 9
Financial Instruments.
► An entity must meet all three
elements of the definition and
consider whether it has four
typical characteristics in order
to qualify as and investment
entity.
► When making an assessment
all facts and circumstances
need to be considered including
purpose and design.
► Entities that meet the definition will de-
consolidate subsidiaries and measure
them at FVTPL.
► May have little to no effect on banks,
insurers and many other organizations
involved in investment activities.
► Entities will need
to consider how much
planning and preparation
time will be needed
to update systems and
processes to accommodate
new requirements including
disclosure requirements.
Key requirements Financial statement impact Considerations
Page 20
IFRS 9 Financial Instruments - Classification and Measurement
Transition
► Specific transition requirements on adoption
► Phased early application permitted i.e., early adoption of financial assets only or financial assets and financial liabilities permitted
► Phased adoption to be removed when the final standard is issued
► IASB’s current projects on limited modification to classification and measurement, impact of impairment and general hedging still
to be incorporated
Effective for annual periods beginning on or after 1 January 2015
► Requires classification of financial
assets on the basis of:
► The objective of entity’s business
model for managing the financial
assets
And
► The characteristics of contractual
cash flows
► Changes classification
and measurement of
financial assets
► Requires exercise of judgement,
including the assessment of:
► Business model
► Characteristics of contractual cash
flows
► May require changes in internal
systems to meet new requirements, e.g.:
► Determine fair value changes
attributable to credit risk in
designated financial liabilities
► Determine fair values of financial
instruments that do not qualify for
amortised cost measurement
Key requirements Financial statement impact Considerations
► All IAS 39 classification and
measurement requirements for financial
liabilities, other than for those designated
at fair value through P&L (using the fair
value option), carried forward
► For liabilities designated
at fair value through
P&L, fair value changes
attributable to changes in
credit risk are presented
in OCI instead of P&L