Monday, March 21, 2011

A Practical Guide to New IFRSs 2011 (PwC IFRS Publications)

In March 2011, one of the Big 4 accounting firm PricewaterhouseCoopers published its IFRS implementation guidance “A Practical Guide to New IFRSs for 2011”.

Within the 24-page guide book in Q & A format, it provides a high-level outline of the key requirements of new IFRS standards and interpretations that come into effect in 2011. Significant changes to IFRS are due to be published in 2011, but there is a relatively small number of changes that come into effect for 2011 year ends.

One of the significant changes was the IFRS 9, Financial Instruments which was reissued in 2010 to include guidance on financial liabilities and derecognition of financial instruments. This material was relocated from IAS 39, Financial Instruments : Recognition and Measurement, without change, except for financial liabilities that are designated at fair value through profit or loss. The rules on the classification and measurement of financial assets were previously published in the earlier version of IFRS 9. The standard is being added to as the IASB endorses different phases of the project to replace IAS 39. The reissued IFRS 9 applies to 2013 year ends but can be adopted with immediate effect.

Another changes was regarding IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments which comes into effect in 2011.

Two further amendments that have effective dates in 2010 and will impact 2011 year ends. Amendments to IAS 32, Financial Instruments : Presentation, on classification of right issues and amendment to IFRS 1, First-time Adoption of IFRS, on financial instrument disclosures. Amendments that apply from 1 January 2011 include an amendment to IAS 24, Related Party Disclosures, and an amendment to IFRIC 14, IAS 19 – The limit on a defined benefit asset, minimum funding requirements and their interaction.

Download the publication directly from here : A Practical Guide to New IFRSs for 2011

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