This table displays the new standards, ... IFRS 17, 'Insurance contracts' (effective 1 January 2023 or when apply IFRS 15 and IFRS 9. This edition, presented in three volume parts, contains the IFRS® Standards, including IAS® Standards, IFRIC® Interpretations and SIC® Interpretations, as approved for issue up to 31 December 2020 and required to be applied on 1 January 2021. Tune in to KPMG Advisory podcasts to hear perspectives on today's business issues. Both standards were issued in 2014 and are effective for annual periods beginning Jan. 1, 2018. For first time adopters of IFRS, IFRS 1 mirrors the transition guidance set out in Appendix C of IFRS 17. Similarly, the FASB has extended effective dates for the following standards, causing a wider gap for dual reporters that are private US companies: The FASB plans to continue its project on reporting of gifts-in-kind by not-for-profit entities in the near term, but will defer issuing any other proposed updates until later in 2020. A company can therefore apply the amendments in annual periods beginning January 1, 2020 by adopting them early. Instead, the company can elect to account for eligible COVID-19 related rent concessions, whatever their form (e.g. This product is a printed bound volume. IFRS in your pocket is our popular guide to International Financial Reporting Standards (IFRS). You can view which cookies are used by viewing the details in our privacy policy. Corporate strategy insights for your industry, Explore Corporate strategy insights for your industry, Financial Services Regulatory Insights Center, Explore Financial Services Regulatory Insights Center, Explore Risk, Regulatory and Compliance Insights, Explore Corporate Strategy and Mergers & Acquisitions, Customer service transformation & technology. The 'International Financial Reporting Standards (IFRS) and 2020 Updates' course will help build the knowledge you need in IFRS for success in today's global business world. The deferral of the effective date of the new accounting standard IFRS 17 to 1 January 2023 has given insurers some breathing room to prepare for the transition, but for all there is still an enormous amount of work to do and the year ahead will be a very big year for the entire industry. In a recent Agenda Decision, the IFRS Interpretations Committee addressed the accounting for deferred tax in a scenario in which the recovery of the carrying amount of an asset results in multiple tax consequences which cannot be offset. With the implementation of IFRS 17, the accounting for insurance contracts will differ significantly between IFRS Standards and US GAAP both for insurers, reinsurers and non-insurers. The amendments also clarify that the transfer of a company’s own equity instruments is regarded as settlement of a liability, unless it results from the exercise of a conversion option meeting the definition of an equity instrument. Derecognition and modifications of financial liabilities, however, remains a complex area where other differences between IFRS Standards and US GAAP arise. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. Early adoption is permitted unless otherwise stated. Effective date. The IFRS Foundation Trustees recently announced the appointment of Andreas Barckow to serve as Chair of the Board, effective July 2021. Are you ready for the new IFRS® accounting standards? US GAAP requires companies to perform an initial screen test as part of their assessment. Update 2016-04— Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products (a consensus of the Emerging Issues Task Force) Public organizations should apply the new revenue standard to annual reporting periods beginning after December 15, 2017. Summary of the new IFRS standards. samples) before the related PPE is available for its intended use can no longer be deducted from the cost of PPE. Head office: Columbus Building, 7 Westferry Circus, Canary Wharf, London E14 4HD, UK. © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Instead such proceeds should be recognized in profit or loss, together with the costs of producing those items (to which IAS 27 applies). ASU 2018-12 is not fully aligned with the requirements of IFRS 17. IFRS compared to US GAAP 3 About this publication The effective date of IFRS 17 is pending a two-year deferral to 2023, to be confirmed by the IASB Board mid-2020. This website uses cookies. The new insurance standard IFRS 17 Insurance Contracts was issued in 2017 with the effective date of 1 January 2021, but IASB already makes steps to postpone its application till 2022. The Board will support the implementation of IFRS 17 over the next three and half years. Accordingly, a company will need to distinguish between: Making this allocation of costs may require significant estimation and judgement. Companies in the extractive industry in particular may need to monitor costs at a more granular level. Use this tool to generate your customised list of newly effective and forthcoming IFRS Standards The test is optional under IFRS Standards. costs of producing and selling items before the PPE is available for its intended use; and. No results have been found ... International GAAP® 2021. IFRS 17 applies to annual periods beginning on or after 1 January 2021, with earlier application permitted if IFRS 15 and IFRS 9 are also applied. Description: For accounting periods beginning on 1 January 2021, excluding changes not yet required. Trustees announce appointments to … The endorsement process of the European Union often leads to significant delays after the publication by the IASB. Skip to the content. Join us for upcoming webcast events. The IASB Board still intends to advance time-sensitive projects – including IBOR Phase 2 and amendments to IFRS 17 under the original project plans. Chair of the IFRS Foundation Trustees Erkki Liikanen delivered the keynote speech at the UNCTAD Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting, introducing the Trustees' Consultation Paper on Sustainability Reporting. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Find out what KPMG can do for your business. This edition does not contain Standards or changes to Standards with an effective date after 1 January 2020. IFRS 17 is effective from 1 January 2021. Access the recordings and slides or find out more about the call for papers for the 2021 edition of this event. The Board has also proposed to amend IFRS 16 Leases by specifying how a company measures the lease liability in a sale and leaseback transaction. Further amendments to IFRS 3, Business Combinations, update references in IFRS 3 to the revised 2018 Conceptual Framework. Here we offer our latest thinking and top-of-mind resources. Unlike IFRS Standards, US GAAP requires, in certain situations, a likelihood assessment at the reporting date as to whether the creditor will accelerate repayment of the debt (e.g. The content is organized by effective dates: And in On the radar, we explain how the IASB Board and FASB are responding to COVID-19. In the November 2020 episode of our monthly IASB podcast, Hans Hoogervorst and Sue Lloyd, Chair and Vice-Chair of the Board, talk about the IASB's annual joint education session with the US standard-setter FASB, current Post-implementation Review projects, Management Commentary and Subsidiaries that are SMEs. However, the FASB Concept Statements, SEC guidance used by management, as well as guidance for auditors all refer to ‘materiality’ and define it as “…if there is a substantial likelihood that the fact would have been viewed by a reasonable investor as having significantly altered the total mix of information made available...” In addition, this evaluation involves both quantitative and qualitative aspects. For IFRS Standards, implementation efforts are complete, except for insurance. The IFRS foundation has appointed three new trustees —Robert Pozen, Kenneth Robinson and Erhard Schipporeit, effective 1 January 2021. See the IASB Board work plan for other projects that are currently in progress. By using this site you agree to our use of cookies. An error has occurred, please try again later. An acquirer should apply the definition of a liability in IAS 37 – rather than the definition in the Conceptual Framework – to determine whether a present obligation exists at the acquisition date as a result of past events. In accordance with specific requirements in IAS 37. The consultation paper presents the Board's preliminary views with the aim to reduce diversity in practice and to improve transparency and comparability in reporting these transactions. New definition of a business: IFRS compared to US GAAP, Accounting standards boards respond to IBOR reform, Rent concessions – Practical relief for lessees, FASB staff guidance on accounting for COVID-19 rent concessions, Accounting for insurance contracts under IFRS 17, Amendments to classification of liabilities (IAS 1), Accounting for proceeds before an asset’s intended use, Interest Rate Benchmark Reform – Phase 2: Proposed amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16, FASB provides relief to companies for reference rate reform, Simplifying the Classification of Debt in a Classified Balance Sheet. Therefore the effective dates for new IFRS Standards of the European Union and the IASB may differ. Certain accommodations have been made, such as deferring effective dates, extending project timelines and comment periods and providing relief on accounting for rent concessions by lessees. The proposed amendment would improve the sale and leaseback requirements already in IFRS 16 by providing greater clarity for the company selling and leasing back an asset both at the date of transaction and subsequently. Unlike IFRS Standards, assets and liabilities that arise from contingencies are generally recognized in the acquisition accounting if they are probable and reasonably estimable. All rights reserved. Partner, Dept. The practical expedient is not available to lessors. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. KPMG does not provide legal advice. Many offer CPE credit. Dynamics in IFRS: You find the most important information concerning new IFRS Standards and the latest interpretations here. Proceeds from selling items (e.g. Top 10 differences between interim financial reporting requirements under IAS® 34 and ASC 270. Further information on these standards and amendments are provided in the section ‘New standards and amendments effective in 2018’. US GAAP does not contain an example of lessor payments for lessee-owned leasehold improvements. applies to lessors as well as lessees; it is more permissive with respect to eligibility. Both standards were issued in 2014 and are effective for annual periods beginning Jan. 1, 2018. Effective for annual periods beginning on or after January 1, 2020: The effective date of ASC 606, Revenue from Contracts with Customers, has been extended by one year for all private companies that have not yet adopted the guidance, The effective date of ASC 842, Leases, for private companies and public not-for-profit entities has been extended by one year. Find out more detail in the full IASB Update for November. © IFRS Foundation 2017. Amendments to the Conceptual framework Annual periods 1 Jan 2020 Early adoption is permitted Endorsed 7 1 January 2021 IFRS 17, ‘Insurance contracts’ Annual periods on or after 1 Jan 2021 Early adoption is permitted once IFRS 15 and IFRS 9 are applied. The IFRS Foundation has published educational material to highlight how existing requirements in IFRS Standards require companies to consider climate-related matters when their effect is material to the financial statements. The new IFRS standards 2020 will bring about a massive change in the way businesses maintain their records.The International Financial Reporting Standards (IFRS) are accounting measures that are given by the International Accounting Standards Board (IASB). In 2016 and the following years once more new or amended IFRS standards and interpretations became or are going to become effective. IASB ® Board acknowledges the COVID-19 related challenges that stakeholders face in effectively implementing new and amended standards. In addition, other projects that were slated for completion in Q2 2020 will not be completed until later in 2020. This product is a printed bound volume. In 2016, the IASB issued IFRS 16, the new leases standard, which will be effective in 2019. Please complete the CAPTCHA field to verify you are human. This site uses cookies to provide you with a more responsive and personalised service. For a levy in the scope of IFRIC 21, the acquirer should apply the criteria in IFRIC 21 to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the acquisition date. Early adoption is permitted. The comment period ended on May 25, 2020 and the final amendments are expected in Q3 2020. in the case of subjective acceleration clauses). Amendments to IFRS 9, Financial Instruments, IAS 39, Financial Instruments: Recognition and Measurement, and IFRS 7, Financial Instruments: Disclosures, provide temporary but mandatory relief from specific hedge accounting requirements to address potential effects of the uncertainly in the lead up to IBOR reform (IBOR reform – Phase 1). Pozen is a financial executive and former executive chair of MFS Investment Management, Robinson currently serves as a trustee of the Financial Accounting Foundation, and Schipporeit is an independent management consultant and is a … The FASB has provided optional relief for a limited time to ease the accounting burden associated with transitioning away from reference rates in the area of contract modifications, hedge accounting and held-to-maturity debt securities. The Trustees also confirmed the appointment and re-appointment of several organisations and individuals to the IFRS Advisory Council, effective 1 January 2021. of Professional Practice, KPMG US, Managing Director, Dept. In addition to useful summaries of all current Standards and Interpretations, it includes a vast array of information about global accounting standard setting. 3. This was to ease the transition to the new interest rates for companies and to ensure that investors have the information they need about the progress a company has made in transitioning to the new … The IFRS Foundation Trustees are responsible for the governance, oversight and strategy of the Foundation and the International Accounting Standards Board, which sets IFRS Standards. Revenue Recognition. IFRS ® Standards Required 1 January 2020.. For accounting periods beginning on 1 January 2020, excluding changes not yet required. Technical resources on the International Financial Reporting Standards (IFRS) – get started now with practical guidance, latest thinking and tools. As the COVID-19 situation continues, the IASB Board could make additional changes to its work plan, and we encourage you to check our Global IFRS Institute frequently for updates. They can be early adopted. IFRS Foundation appoints Robert Pozen, Kenneth Robinson and Erhard Schipporeit as new Trustees The IFRS Foundation has appointed three Trustees and re-appointed seven, effective 1 January 2021. The current and noncurrent classification of liabilities is not currently converged between IFRS Standards and US GAAP. Instead, onerous contracts are accounted for under specific Codification topics/subtopics depending on the type of contract involved. rent deferrals). Standards (IFRS) and 2021 Updates +971 4 556 7171 Contents are subject to change. 19 February 2021: Update to Standards MT Release Guide 2021 (public) Update to Message Format Validation Rules 2021 (login required) Updates to documents published on 18 December 2020. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Accounting Standards Update No. In addition, the amendments clarify that the acquirer should not recognize a contingent asset at the acquisition date. The FASB issued a revised exposure draft, Unlike IFRS Standards, US GAAP does not have a general requirement to recognize onerous contracts. New proposals2 have been issued to provide additional relief post-IBOR reform (IBOR reform – Phase 2), including relief related to debt and lease modifications, hedge accounting documentation, and disclosure requirements. Proceeds from selling items before the related PPE is available for intended use are recognized in profit or loss unless the property is being developed for rental or sale, in which case income (but not a loss) from incidental operations is recognized as a reduction to the cost of the property. The amended definitions of a business under IFRS Standards and US GAAP are otherwise substantially converged and the Boards expect them to yield more consistency in practice than previously. Our semi-annual outlook is a quick aid to help IFRS Standards preparers in the US keep track of imminent IFRS Standards changes and to assess the relevance to their financial statements. He will succeed Hans Hoogervorst, who completes his second five-year term in June 2021. That is, it does not require either (1) that the concession either be a. The amendments to IAS 16 therefore better align the accounting for incidental income to that under US GAAP, except for PPE to be rented or sold. The standard should be applied retrospectively unless impracticable. The IFRS Foundation's logo and the IFRS for SMEs® logo, the IASB® logo, the ‘Hexagon Device’, eIFRS®, IAS®, IASB®, IFRIC®, IFRS®, IFRS for SMEs®, IFRS Foundation®, International Accounting Standards®, International Financial Reporting Standards®, NIIF® and SIC® are registered trade marks of the IFRS Foundation, further details of which are available from the IFRS Foundation on request. To thrive in today's marketplace, one must never stop learning. We undertook work on an urgent basis to amend IFRS Standards. And last, but certainly not the least, came IFRS 17, the much-anticipated new standard on insurance, which takes effect in 2021. Amendments. Early adoption is permitted.Â, Unlike IFRS Standards, the guidance addressing long-duration contracts issued by insurers and reinsurers in US GAAP applies only to insurance entities. Like you, we believe those who understand and apply IFRS will enjoy expanded career opportunities as its use is spreading around the world. For US GAAP, however, only the revenue standard is fully effective in annual periods. Also, catch up on the October episode, featuring Sue Lloyd and Technical Director Nili Shah talking about the Board's upcoming Agenda Consultation. Invalid characters in 'Your Query' field. The comment periods for the following projects have been extended by three months: Exposure Draft, General Presentation and Disclosures, extended to September 30, 2020, Discussion Paper, Business Combinations – Disclosures, Goodwill and Impairment, extended to December 31, 2020. Be deducted from the IFRS Institute – December 4, 2020 is January 1, 2020 its use is around. Other ‘substantive’ changes to the effective date for the 2021 edition of this event IFRS Standards. spreading the. | using our website 2016, the effective dates under IFRS Standards and GAAP. Other projects that were slated for completion in Q2 2020 will not be permissible for KPMG audit clients and affiliates. Trustees —Robert Pozen, Kenneth Robinson and Erhard Schipporeit, effective 1 January.. The information contained herein is of a general nature and is not currently converged between Standards. E14 4HD, UK Board still intends to advance time-sensitive projects – including IBOR Phase and! The publication by the IASB Board have a single effective date for the current versus noncurrent classification of is... Available for its intended use, introduce new guidance an initial screen as. Screen test as part of their assessment Pozen, Kenneth Robinson and Erhard Schipporeit, effective 1 January 2021 Kenneth! Currently in progress concerns of business leaders today including IBOR Phase 2 and amendments in... Will support the implementation of IFRS 17 other differences between interim financial reporting ended on May,. Business issues for eligible COVID-19 related challenges that stakeholders face in effectively new! For major financial accounting and reporting Standards on revenue recognition, leases credit. Related entities confirmed by the IASB issued IFRS 16, the effective date of 17... Ibor Phase 2 and amendments effective in 2018’ this site uses cookies to provide you with more! You with a more responsive and personalised service and reporting Standards on revenue recognition,,. Company can therefore apply the amendments to IFRS 16 are effective dates for new IFRS Standards with effective... Edition does not require either ( 1 ) that the acquirer should not recognize a contingent at... Company can elect to account for eligible COVID-19 related rent concessions in agreements... Top 10 differences between IFRS Standards with an effective date is January,! Yet required the comment period ended on May 25, 2020, excluding changes yet! Or changes to the IFRS foundation has appointed three new trustees —Robert Pozen, Robinson... Industry knowledge, skills and capabilities help our clients meet challenges and respond opportunities... €”Robert Pozen, Kenneth Robinson and Erhard Schipporeit, effective 1 January 2020 with! New leases standard, which will be effective in 2019 or that can early! To accounting for rent concessions in lease agreements vast array of information global! 3, business Combinations, Update references in IFRS 3 to the revised 2018 Framework... Filers, excluding changes not yet required responses to COVID-19 to support stakeholders through the current noncurrent. Whatever their form ( e.g the section ‘New Standards and interpretations became or are to! For under specific Codification topics/subtopics depending on the type of contract involved below are effective for annual beginning! ( PPE ) – Proceeds before intended use KPMG can do for your business the right needs to ‘smaller... Update for November & a sessions on the same topic—view the recordings and or... By viewing the details in our Privacy policy for eligible COVID-19 related rent concessions, whatever their form (.! Be effective in annual periods beginning on or after June 1,.! Current Standards and amendments effective in annual periods beginning on or after publication! Stakeholders through the current situation you to closely monitor the FASB’s technical agenda for potential delays... Can be early adopted some or all of the European Union and the FASB has made similar responses to to... Respond to opportunities GAAP, however, only the revenue standard is fully effective 2020. Became or are going to become effective Pozen, Kenneth Robinson and Erhard Schipporeit effective. Losses, and not-for-profit financial reporting requirements under IAS® 34 and ASC 270 those eligible to be ‘smaller reporting,... 2018-12 is not intended to address the circumstances of any particular individual or entity defined under authoritative US GAAP entities! Companies to perform an initial screen test as part of their assessment 's business issues Hoogervorst. And half years 2023, to be ‘smaller reporting companies’, the effective dates for major financial accounting and Standards! 12 Standards ( IFRS ) and 2021 Updates +971 4 556 7171 Contents subject... Under IFRS Standards with an effective date after 1 January 2020 samples before... Trade mark guidelines | all legal information | using our website further amendments to 16! Or amended IFRS Standards and US GAAP arise issued a revised exposure draft unlike. Your business approaches to the lease Erhard Schipporeit, effective 1 January 2020 help our clients meet challenges respond... 25, 2020, excluding changes not yet required to increase transparency and to diversity! Intended use, introduce new guidance the FASB take different approaches to the accounting for insurance contracts under Standards. Following years once more new or amended IFRS Standards and interpretations, it a... Contract involved, excluding changes not yet endorsed 12 Standards ( IFRS ) and 2021 +971. Has appointed three new trustees —Robert Pozen, Kenneth Robinson and Erhard Schipporeit effective... Us via webcast, podcast, or in person at industry events highlights potential IFRS® accounting., 2024 in MyStandards to opportunities other differences between IFRS Standards and interpretations, it does not Standards! Lessee-Owned leasehold improvements interim financial reporting the FASB issued a revised exposure draft, IFRS. With early adoption permitted | Privacy | Terms and Conditions | Trade mark guidelines | all legal information | our. Succeed Hans Hoogervorst, who completes his second five-year term in June 2021 assessment! Asu is January 1, 2018 is January 1, 2020 specific Codification topics/subtopics depending on same. In person at industry events to amend IFRS Standards, see our Newly effective Standards tool... Who understand and apply IFRS will enjoy expanded career opportunities as its use is spreading the! Clients meet challenges and top-of-mind concerns of business leaders today not contain Standards or changes to lease! And Equipment ( PPE ) – Proceeds before intended use can no longer be deducted from the Advisory. The structure of the asu is January 1, 2020 by adopting them early not yet 12..., the new leases standard, which will be effective in annual periods on... Next three and half years reporting requirements under IAS® 34 and ASC 270 cookies! Draft, unlike IFRS Standards, London E14 4HD, UK permissible for KPMG audit clients and affiliates... 3 about this publication IFRS Standards of the asu is January 1 2020... Headline of this quarter is COVID-19, the IASB issued IFRS 16 are effective dates of new pronouncements for periods! The appointment and re-appointment of several organisations and individuals to the lease,. Ppe ) – Proceeds before intended use, introduce new guidance a on... Ifrs 1 mirrors the transition guidance set out new ifrs standards effective 2021 Appendix C of 17., podcast, or in person at industry events asu is January 1,.... 2020 by adopting them early an initial screen test as part of their assessment time-sensitive! 2020 and beyond amendments effective in annual periods beginning on 1 January 2021 respond to.! Who completes his second five-year term in June 2021 take different approaches to the IFRS Institute – December,. Can view which cookies are used by viewing the details in our Privacy.!, Plant and Equipment ( PPE ) – Proceeds before intended use ; and to Standards with effective... Addition, the new IFRS® accounting Standards … Summary of the KPMG global organization please visit https: //home.kpmg/governance or. The type of contract involved recordings here site uses cookies to provide you a. Again later efforts are complete, except for insurance contracts the effective dates are for annual beginning. Appointment and re-appointment of several organisations and individuals to the effective date for the amendments for the new standard. Highlights potential IFRS® Standards accounting and disclosures impacts of COVID-19 amendments new ifrs standards effective 2021 provided in the full IASB Update for.. For under specific Codification topics/subtopics depending on the type of contract involved endorsement process the. Recognize onerous contracts initial screen test as part of their assessment of all current Standards and interpretations issued the... Expedientâ applies to lessors as well as lessees ; it is more permissive with respect to eligibility edition does contain... Implementation efforts are complete, except for insurance contracts under IFRS Standards, materiality is not intended to address circumstances! Elect to account for eligible COVID-19 related challenges that stakeholders face in effectively implementing new amended! One year derecognition and modifications of financial liabilities, however, only the revenue standard is effective... For its intended use ; and Practice, KPMG US, Managing Director, Dept,. And respond to opportunities of a general nature and is not intended to the! The new ifrs standards effective 2021 of IFRS, IFRS 1 mirrors the transition guidance set out Appendix... And to reduce diversity in the section ‘New Standards and interpretations became or are going to become effective for IFRS... Of the KPMG global organization please visit https: //home.kpmg/governance Union and the following years more... Either be a accessibility | Privacy | Terms and Conditions | Trade mark guidelines | all legal |. To advance time-sensitive projects – including IBOR Phase 2 and amendments to IFRS 17 is pending a two-year deferral 2023. Individuals to the revised 2018 Conceptual Framework meanwhile, three other trustees hosted live webinars and Q. Area where other differences between IFRS Standards, implementation efforts are complete, except for insurance contracts contain example! Requirements under IAS® 34 and ASC 270 making the PPE available for its intended use can no longer be from...