2010-01-04 Closing the GAAP: New IFRS Pronouncements Affecting 2011 Financial Statements (updated to December 31, 2009)

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This Newsletter presents a summary of new IFRS pronouncements relevant to financial statements prepared for 2011 (updated to December 31, 2009).

The following summarizes IFRS pronouncements that must be applied, if applicable, for the first time in 2011 to a company with a calendar year-end that is preparing financial statements in accordance with IFRS.

The listing includes the following pronouncements:

International Financial Reporting Standards ("IFRS")
International Financial Reporting Interpretations Committee ("IFRIC") Interpretations

The International Accounting Standards Board ("IASB") has a number of projects in progress. Information on these projects is available on the IASB website at http://www.iasb.org/Current+Projects/IASB+Projects/IASB+Work+Plan.htm.

Information on IFRIC projects is available at http://www.iasb.org/Current+Projects/IFRIC+Projects/IFRIC+Projects.htm.

This Newsletter will be updated quarterly.

Reference	Pronouncement and Effective Date
IAS 24	Related party transactions Amended to remove the requirement for government related entities to disclose details of all transactions with the government and other government-related entities and to clarify and simplify the definition of a related party. Effective for years beginning on/after January 1, 2011.
IAS 32	Classification of rights issues Amended to address the accounting for rights issues (rights, options or warrants) that are denominated in a currency other than the functional currency of the issuer. Prior to the amendment, such rights issues were accounted for as derivative liabilities. The amendment states that, if such rights are issued pro rata to an entity's existing shareholders for a fixed amount of any currency, they should be classified as equity, regardless of the currency in which the exercise price is denominated. Effective for years beginning on/after February 1, 2010.
IFRIC 14	Prepayments of a minimum funding requirement Amended to remove an unintended consequence of IFRIC 14 related to voluntary pension prepayments when there is a minimum funding requirement. Effective for years beginning on/after January 1, 2011.
IFRIC 19	Debt for equity swaps Clarifies the accounting when an entity renegotiates the terms of its debt with the result that the liability is extinguished through the debtor issuing its own equity instruments to the creditor. Effective for years beginning on/after July 1, 2010.

While we have attempted to make this Newsletter as complete as possible, it may not include all changes or modifications to existing authoritative literature that may affect a particular enterprise.

International Financial Reporting Standards (IFRS)The transition to IFRS can be complicated.

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Of further interest

For an indepth analysis of the most notable financial reporting developments, read our bi-annual review, Financial Reporting Release.

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