2014-10-03-德勤-国际财务报告准则_168页_1mb

Summary of Deloitte's Model Financial Statements for the Year Ended 31 December 2014

Core Content

This document provides a detailed summary of the new and revised International Financial Reporting Standards (IFRSs) effective for the year ended 31 December 2014, as well as those that allow early application. It also includes model financial statements for International GAAP Holdings Limited for the year ended 31 December 2014, prepared by the IFRS Centre of Excellence in Hong Kong and Deloitte China, with special thanks to Candy Fong and Cecilia Kwei.

Deloitte's website, www.iasplus.com, serves as a comprehensive resource for international financial reporting, including IFRS-related publications, model financial statements, checklists, and e-learning modules.

Main Points

1. Mandatorily Effective IFRS Amendments (Section 1A)

• Amendments to IFRS 10, IFRS 12, and IAS 27 Investment Entities

  • Defines an investment entity and introduces an exception from consolidation.
  • Investment entities measure their interests in subsidiaries at fair value through profit or loss.
  • Subsidiaries that provide services related to the investment entity's investment activities are not excluded.
  • Consequential amendments to IFRS 12 and IAS 27 introduce new disclosure requirements.
  • These amendments require retrospective application.

• Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities

  • Clarifies the meaning of 'currently has a legally enforceable right of set-off' and 'simultaneous realisation and settlement'.
  • Requires retrospective application.

• Amendments to IAS 36 Recoverable Amount Disclosures for Non-Financial Assets

  • Removes the requirement to disclose recoverable amounts of CGUs without impairment.
  • Introduces additional disclosures for assets or CGUs measured at fair value less costs of disposal, in line with IFRS 13.
  • Requires retrospective application.

• Amendments to IAS 39 Novation of Derivatives and Continuation of Hedge Accounting

  • Provides relief from discontinuing hedge accounting under certain novation circumstances.
  • Clarifies that changes in the fair value of a derivative due to novation should be included in the assessment of hedge effectiveness.
  • Requires retrospective application.

• IFRIC 21 Levies

  • Defines a levy and specifies that the obligating event is the activity that triggers the payment.
  • Clarifies that economic compulsion or going concern basis does not imply a present obligation to pay a levy in the future.
  • Requires retrospective application.

2. New and Revised IFRSs with Early Application (Section 1B)

• IFRS 9 Financial Instruments (Effective from 1 January 2018)

  • Replaces IAS 39 and consists of three phases:
    • Phase 1: Classification and measurement of financial assets and liabilities.
      • Debt instruments with a business model focused on collecting contractual cash flows and with terms that result in cash flows solely of principal and interest are measured at amortised cost or FVTOCI.
      • All other debt instruments and equity investments are measured at FVTPL or FVTOCI, with certain exceptions.
    • Phase 2: Impairment methodology based on expected credit losses.
      • Entities must account for expected credit losses and changes in those losses at each reporting date.
    • Phase 3: General hedge accounting, with an 'economic relationship' principle replacing the effectiveness test.
      • Retrospective assessment of hedge effectiveness is no longer required.
      • More disclosure requirements on risk management activities are introduced.
  • Transitional provisions allow for early application, with exceptions for certain elements like fair value changes due to credit risk and hedge accounting.

• IFRS 14 Regulatory Deferral Accounts (Effective from 1 January 2016)

  • Applies to first-time IFRS adopters.
  • Permits continuation of previous GAAP rate-regulated accounting policies with limited changes.
  • Requires separate presentation of regulatory deferral account balances in the financial statements.
  • Entities must disclose the nature and risks associated with rate regulation.

• IFRS 15 Revenue from Contracts with Customers (Effective from 1 January 2017)

  • Introduces a single comprehensive model for revenue recognition.
  • Supersedes IAS 18, IAS 11, IFRIC 13, IFRIC 15, IFRIC 18, and SIC 31.
  • Introduces a 5-step revenue recognition model:
    1. Identify the contract with a customer.
    2. Identify the performance obligations in the contract.
    3. Determine the transaction price.
    4. Allocate the transaction price to the performance obligations.
    5. Recognise revenue as each performance obligation is satisfied.
  • Revenue is recognised when control of the goods or services is transferred to the customer.
  • Variable consideration is only recognised if it is highly probable that a significant reversal will not occur.
  • Extensive disclosures are required.
  • Entities can choose between retrospective application or a modified transition approach.

• Amendments to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations (Effective from 1 January 2016)

  • Applies when the joint operation constitutes a business under IFRS 3.
  • Requires application of the accounting principles for business combinations.
  • Applies prospectively.

• Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and Amortisation (Effective from 1 January 2016)

  • Prohibits revenue-based depreciation for property, plant, and equipment.
  • Introduces a rebuttable presumption that revenue is not an appropriate basis for amortisation of intangible assets.
  • Exceptions include when the intangible asset is expressed as a measure of revenue or when revenue and economic benefit consumption are highly correlated.
  • Applies prospectively.

• Amendments to IAS 16 and IAS 41 Agriculture: Bearer Plants (Effective from 1 January 2016)

  • Defines bearer plants and requires them to be accounted for under IAS 16 instead of IAS 41.
  • Bearer plants can be measured using the cost or revaluation model.
  • On initial application, the fair value can be used as the deemed cost, with any difference recognised in retained earnings.
  • Produce growing on bearer plants is still accounted for under IAS 41.

• Amendments to IAS 19 Defined Benefit Plans: Employee Contributions (Effective from 1 January 2016)

  • Clarifies how contributions from employees or third parties are accounted for based on service dependency.
  • For independent contributions, they can be either a reduction of service cost or allocated using the plan’s formula or straight-line basis.
  • For dependent contributions, they must be allocated to the employees’ service periods.
  • Requires retrospective application.

• Annual Improvements to IFRSs 2010–2012 Cycle (Effective from 1 July 2014)

  • Includes amendments to IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 38, and IAS 24.
  • IFRS 2: Clarifies definitions of vesting conditions and adds performance and service conditions.
  • IFRS 3: Clarifies that contingent consideration should be measured at fair value, regardless of whether it is a financial or non-financial instrument.
  • IFRS 8: Requires disclosure of judgements in segment aggregation and clarifies reconciliation of segment assets to entity assets.
  • IFRS 13: Clarifies that the portfolio exception includes all contracts within the scope of IAS 39 or IFRS 9.
  • IAS 16 and IAS 38: Clarifies the treatment of revaluation and accumulated depreciation/amortisation.
  • IAS 24: Clarifies that a management entity providing key management personnel services is a related party.

Key Information

• The document outlines the changes to IFRSs and their effective dates, including retrospective and prospective applications.
• Entities are encouraged to consider the potential impact of new and revised IFRSs issued after 31 July 2014, especially when preparing financial statements for the year ended 31 December 2014.
• IFRS 15 is expected to have a significant impact on revenue recognition across industries.
• IFRS 9 introduces a more comprehensive and forward-looking approach to financial instruments, with a three-phase implementation plan.
• Deloitte provides resources and guidance to help entities understand and apply these standards.