The IASB has issued 3 new IFRS (3 in 2014 and 1 in 2016)
IFRS 14 – Regulatory Deferral Accounts 2014
IFRS 15 – Revenue from Contracts with Customers – this standard will replace IAS 18 as of January 2018
IFRS 9 – Financial Instrument – to replace IAS 38 with effect from January 2018. There are views from public that IAS 32 (Presentation of Financial Instrument should also be merged with IFRS 9. However, given the complexity in some
IFRS 16 – Leases – will replace IAS 17 by January 2019
When IFRS 16 becomes effective in 2019, it will result in a substantial change to many companies’ balance sheets. All leases will be recognized as assets and liabilities by lessees, better reflecting the underlying economics. It’s mainly for Economic growth
IFRS 15 – REVENUE FROM CONTRACTS
This standard will supersedes the IAS 18 effective January 2018.
5 step Approach
- Step 1: Identify Contract with Customer
- Step 2: identify Performance Obligations
- Step 3 : Determine transaction price
- Step 4: Allocate transaction price to Performance Obligations
- Step 5: Recognise revenue
Changed from Transfer of Risks and Rewards of Ownership to Transfer of CONTROL & Transfer of goods and services to Customers.