2010-01-04 Closing the GAAP: New IFRS Pronouncements Affecting 2009 Financial Statements (updated to December 31, 2009)

Amended to clarify that vesting conditions are service conditions and performance conditions only. Other features that are not vesting conditions would need to be included in the grant date fair value for transactions with employees and others providing similar services, that is, these features would not impact the number of awards expected to vest or the valuation thereof subsequent to the grant date. It also specifies that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment. Effective for years beginning on/after January 1, 2009.

Amended to increase disclosure requirements about fair value measurement and to reinforce existing principles for disclosure about liquidity risk. The amendment introduces a three-level hierarchy for fair value measurement disclosure and requires some specific quantitative disclosures for financial instruments in the lowest level in the hierarchy. In addition, the amendment clarifies and enhances existing requirements for the disclosure of liquidity risk primarily requiring a separate liquidity risk analysis for derivative and non-derivative financial liabilities. Effective for years beginning on/after January 1, 2009.

Sets out new requirements for disclosure of information about an entity's operating segments and also about an entity's products and services, the geographical areas in which it operates, and its major customers. IFRS 8 replaces IAS 14, Segment Reporting. Effective for years beginning on/after January 1, 2009.

Revised to require entities to prepare a statement of comprehensive income. All non-owner changes in equity are required to be shown in a performance statement, but entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). Owner changes in equity are shown in a statement of changes in equity. Also entities making restatements or reclassifications of comparative information are required to present a restated balance sheet as at the beginning of the comparative period in addition to the current requirement to present balance sheets at the end of the current period and comparative period. Effective for years beginning on/after January 1, 2009.

• Puttable financial instruments (for example, some shares issued by cooperative entities and some partnership interests).
• Instruments, or components of instruments, that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation (for example, some shares issued by limited life entities).

Clarifies the accounting treatment of embedded derivatives for entities that make use of the reclassification amendment issued by the IASB in October 2008. The reclassification amendment allowed entities to reclassify particular financial instruments out of the fair value through profit or loss or available sale categories in specific circumstances. The amendments to IAS 39 and IFRIC 9 clarify that on reclassification of a financial asset out of the ‘at fair value through profit or loss’ category, all embedded derivatives should be re-assessed and, if necessary, separately accounted for. Effective for years ending on/after June 30, 2009. 

Improves existing standards and amends 20 standards, basis of conclusions and guidance. The improvements include changes in presentation, recognition and measurement plus terminology and editorial changes. The improvements are generally effective for 2009 calendar years but reference should be made to the effective date of each amendment in the IFRS affected.

IFRS	Subject of amendment
PART I
IFRS 5, Non-current Assets Held for Sale and Discontinued Operations	Plan to sell the controlling interest in a subsidiary
IAS 1, Presentation of Financial Statements	Current/non-current classification of derivatives
IAS 16, Property, Plant and Equipment	Recoverable amount Sale of assets held for rental
IAS 19, Employee Benefits	Curtailments and negative past service cost Plan administration costs Replacement of term "fall due" Guidance on contingent liabilities
IAS 20, Accounting for Government Grants and Disclosure of Government Assistance	Government loans with a below-market rate of interest
IAS 23, Borrowing Costs	Components of borrowing costs
IAS 27, Consolidated and Separate Financial Statements	Measurement of subsidiary held for sale in separate financial statements
IAS 28, Investments in Associates	Required disclosures when investments in associates are accounted for at fair value through profit and loss Impairment of investment in associate
IAS 31, Interests in Joint Ventures	Required disclosures when interests in jointly controlled entities are accounted for at fair value through profit or loss
IAS 29, Financial Reporting in Hyperinflationary Economies	Description of measurement basis in financial statements
IAS 36, Impairment of Assets	Disclosure of estimates used to determine recoverable amount
IAS 38, Intangible Assets	Advertising and promotional activities Unit of production method of amortization
IAS 39, Financial Instruments: Recognition and Measurement	Reclassification of derivatives into or out of the classification of at fair value through profit or loss Designating and documenting hedges at the segment level Applicable effective interest rate on cessation of fair value hedge accounting
IAS 40, Investment Property	Property under construction or development for future use as investment property
IAS 41, Agriculture	Discount rate for fair value calculations Additional biological transformation