Publications

Our IFRS publications address the following commonly asked questions: What are the requirements of IFRS? What does changing to IFRS involve? How does IFRS compare to other accounting frameworks? What do IFRS financial statements look like? Where can I get advice on applying and interpreting IFRS?

See our publications below for answers to these and other IFRS implementation questions.

For a printable overview of available publications, please view this PDF

Browse PwC's IFRS publications

IFRS News - May 2016

May 05, 2016

The May 2016 issue includes: Final changes to IFRS 15 - An overview, Regulator focus - What can we learn from the ESMA report?, IFRS 8 Segment Reporting - Key things to look out for, Leases lab - How to implement the new guidance?, Cannon Street Press: Insurance and IFRS 9; Conceptual Framework; Disclosure Initiative, IC rejections - IAS 18, Cryptic word-seek: Solution.

IFRS 16 'Leases' - Implications for the airlines industry - PwC In the Spotlight

April 22, 2016

Under IFRS 16 substantially all lease contracts will be on the balance sheet of the lessee. Estimates suggest this change will mean that trillions of additional lease obligations will be added to the balance sheets of Airlines world-wide. As most lease obligations are denominated in US-Dollar, many airlines will also be exposed to additional foreign currency volatility into their profit or loss. This In the Spotlight summarises the main aspects of the standard, highlighting some key challenges and questions management should ask as they prepare for transition.

IAS 29 - South Sudan enters hyperinflation - PwC In brief

April 18, 2016

The economic environment in South Sudan deteriorated rapidly towards the end of 2015. Cumulative inflation for the year to the end of January 2016 exceeded 100% and South Sudan should therefore be considered a hyper inflationary economy in 2016. IAS 29, 'Financial Reporting in Hyperinflationary Economies', should be applied by entities with a South Sudanese pound functional currency to financial statements for the year ending 31 December 2016 and for interim periods within that year. IAS 29 should also be applied to restate the financial statements of subsidiary entities with a South Sudanese pound functional currency before they are included in the consolidation at 31 December 2016.

IFRS IC decision - Immediate impact on cash pooling arrangements- PwC In brief

April 15, 2016

The IFRS Interpretations Committee (IC) issued an agenda decision in April 2016 on when and whether entities are able to offset balances in accordance with IAS 32. This could have wide ranging implications for both financial institutions and corporate entities. The IC noted that, to the extent to which a group does not expect to settle its subsidiaries’ period-end account balances on a net basis, it would not be appropriate for the group to assert that it had the intention to settle the entire period-end balances on a net basis at the reporting date. Hence such balances cannot be offset under IAS 32.

IFRS 15,'Revenue from contracts with customers', Transportation and logistics industry supplement - PwC In depth

April 13, 2016

Industry supplement discusses the areas where the revenue standard (IFRS 15) is expected to have most impact on the transportation and logistics industry.

IFRS 15 ‘Revenue from contracts with customers’ amendments - PwC In brief

April 12, 2016

A brief look at the IASB’s amendments to IFRS 15, issued in April 2016.

IFRS News - April 2016

April 08, 2016

The April 2016 issue includes key considerations for impairment tests - Cash flows and discount rate, Current IC rejections - Various topics, Leases lab - How to implement new guidance?, Cannon Street Press - Applying IFRS 9 with IFRS 4, Definition of a business, Goodwill and impairment, Agenda consultation, IC rejections: IAS 17, Cryptic word-seek.

New IFRS for 2016: PwC In depth

March 31, 2016

Summary of new IFRSs and amendments plus standards and amendments effective from 1 January 2016. Covers IFRS 16, IAS 7, IAS 12.

IFRS quarterly update - March 2016

March 24, 2016

The March 2016 IFRS quarterly update is a publication that outlines the IFRS reporting requirements as at 31 March 2016. It the standards that apply at this date; and the standards are published but effective at later dates and hence required to be disclosed plus a summary of the latest topical issues.

IFRS 16, 'Leases' - Implications for the communications industry - PwC In the Spotlight

March 23, 2016

Summary of the main aspects of IFRS 16 Leases, for the communications industry, highlighting key challenges and questions management should ask ahead of transition.

IFRS 16, 'Leases' - Implications for the shipping industry - PwC In the Spotlight

March 23, 2016

Summary of the main aspects of IFRS 16 Leases, for the shipping industry, highlighting key challenges and questions management should ask ahead of transition.

IFRS 9 - Basel Committee guidance on accounting for expected credit losses for banks - PwC In depth

March 18, 2016

A look at the IFRS 9 key accounting aspects included in the Basel Committee's Guidance on credit risk and accounting for expected credit losses.

Key considerations given current market volatility and regulatory scrutiny - PwC valuation guidance paper

March 14, 2016

Update on regulators’ focus on valuations within financial statements against the backdrop of a highly volatile market, with tips for reviewing/performing valuations.

Manual of accounting: IFRS 2016 - ebook available

March 08, 2016

Our comprehensive guidance for companies preparing financial reports under IFRS is now available as an ebook, priced at £49.99. This ebook contains the combined text of the 3 hard copy volumes that make up the 2016 IFRS Manual of accounting set, including the new Manual of accounting IFRS 2015 supplement. The supplement includes 4 new chapters, appendices of the illustrative financial statements for IFRS 9 and IFRS 15 and a summary of changes to all the other chapters (which have been incorporated into the ebook text).

IFRS 16, 'Leases' The leases standard is changing- Are you ready?

March 03, 2016

IFRS 16: The leases standard is changing: Are you ready? can help you understand the standard’s impact on your organisation, potential issues and reduce implementation costs.

IFRS News - March 2016

March 02, 2016

FRS news March 2016 looks at: APMs; IFRS 9 impairment; IAS 7 amendment; Insurance contracts; Goodwill & Impairment; Interests in associates and joint ventures.

IFRS 16, 'Leases - Implications for the Pharmaceutical industry - PwC In the Spotlight

February 29, 2016

Leases are used in the Pharmaceutical industry in a variety of ways. Pharma companies typically lease buildings, company cars and computers, many of which are currently accounted for as operating leases. This In the Spotlight summarises the main aspects of IFRS 16, highlighting some key challenges and questions management should ask as they prepare for transition.

Accounting considerations for Venezuelan entities – update as of February 2016 - PwC In brief

February 26, 2016

The Venezuelan government has maintained a regime of strict currency controls over recent years. On 17 February 2016, the Venezuelan government announced changes to the currency controls. The effective date is yet to be confirmed. The announced changes aim to simplify the exchange mechanisms currently in place.

IFRS 16 'Leases' topic home page is now available

February 11, 2016

PwC's topic home page including all the resources on IFRS 16, Leases' is now available on Inform. The page will be continually updated as resources are released.

IFRS 16', 'Leases - Implications for the Retail and consumer industry - PwC In the Spotlight

February 10, 2016

The new lease accounting standard will fundamentally change the accounting for lease transactions and is likely to have significant business implications. Almost all leases will be recognised on the balance sheet, with a right of use asset and financial liability. The amortisation of the right of use asset and the accretion of interest on the financial liability will likely result in recognising higher expenses in profit or loss during the earlier life of a lease. The impact on the retail and consumer industry is summarised in this 'In the Spotlight'.

IFRS News - May 2016

05/05/16

The May 2016 issue includes: Final changes to IFRS 15 - An overview, Regulator focus - What can we learn from the ESMA report?, IFRS 8 Segment Reporting - Key things to look out for, Leases lab - How to implement the new guidance?, Cannon Street Press: Insurance and IFRS 9; Conceptual Framework; Disclosure Initiative, IC rejections - IAS 18, Cryptic word-seek: Solution.

IFRS 16 'Leases' - Implications for the airlines industry - PwC In the Spotlight

22/04/16

Under IFRS 16 substantially all lease contracts will be on the balance sheet of the lessee. Estimates suggest this change will mean that trillions of additional lease obligations will be added to the balance sheets of Airlines world-wide. As most lease obligations are denominated in US-Dollar, many airlines will also be exposed to additional foreign currency volatility into their profit or loss. This In the Spotlight summarises the main aspects of the standard, highlighting some key challenges and questions management should ask as they prepare for transition.

IAS 29 - South Sudan enters hyperinflation - PwC In brief

18/04/16

The economic environment in South Sudan deteriorated rapidly towards the end of 2015. Cumulative inflation for the year to the end of January 2016 exceeded 100% and South Sudan should therefore be considered a hyper inflationary economy in 2016. IAS 29, 'Financial Reporting in Hyperinflationary Economies', should be applied by entities with a South Sudanese pound functional currency to financial statements for the year ending 31 December 2016 and for interim periods within that year. IAS 29 should also be applied to restate the financial statements of subsidiary entities with a South Sudanese pound functional currency before they are included in the consolidation at 31 December 2016.

IFRS IC decision - Immediate impact on cash pooling arrangements- PwC In brief

15/04/16

The IFRS Interpretations Committee (IC) issued an agenda decision in April 2016 on when and whether entities are able to offset balances in accordance with IAS 32. This could have wide ranging implications for both financial institutions and corporate entities. The IC noted that, to the extent to which a group does not expect to settle its subsidiaries’ period-end account balances on a net basis, it would not be appropriate for the group to assert that it had the intention to settle the entire period-end balances on a net basis at the reporting date. Hence such balances cannot be offset under IAS 32.

IFRS 15,'Revenue from contracts with customers', Transportation and logistics industry supplement - PwC In depth

13/04/16

Industry supplement discusses the areas where the revenue standard (IFRS 15) is expected to have most impact on the transportation and logistics industry.

IFRS 15 ‘Revenue from contracts with customers’ amendments - PwC In brief

12/04/16

A brief look at the IASB’s amendments to IFRS 15, issued in April 2016.

IFRS News - April 2016

08/04/16

The April 2016 issue includes key considerations for impairment tests - Cash flows and discount rate, Current IC rejections - Various topics, Leases lab - How to implement new guidance?, Cannon Street Press - Applying IFRS 9 with IFRS 4, Definition of a business, Goodwill and impairment, Agenda consultation, IC rejections: IAS 17, Cryptic word-seek.

New IFRS for 2016: PwC In depth

31/03/16

Summary of new IFRSs and amendments plus standards and amendments effective from 1 January 2016. Covers IFRS 16, IAS 7, IAS 12.

IFRS quarterly update - March 2016

24/03/16

The March 2016 IFRS quarterly update is a publication that outlines the IFRS reporting requirements as at 31 March 2016. It the standards that apply at this date; and the standards are published but effective at later dates and hence required to be disclosed plus a summary of the latest topical issues.

IFRS 16, 'Leases' - Implications for the communications industry - PwC In the Spotlight

23/03/16

Summary of the main aspects of IFRS 16 Leases, for the communications industry, highlighting key challenges and questions management should ask ahead of transition.

IFRS 16, 'Leases' - Implications for the shipping industry - PwC In the Spotlight

23/03/16

Summary of the main aspects of IFRS 16 Leases, for the shipping industry, highlighting key challenges and questions management should ask ahead of transition.

IFRS 9 - Basel Committee guidance on accounting for expected credit losses for banks - PwC In depth

18/03/16

A look at the IFRS 9 key accounting aspects included in the Basel Committee's Guidance on credit risk and accounting for expected credit losses.

Key considerations given current market volatility and regulatory scrutiny - PwC valuation guidance paper

14/03/16

Update on regulators’ focus on valuations within financial statements against the backdrop of a highly volatile market, with tips for reviewing/performing valuations.

Manual of accounting: IFRS 2016 - ebook available

08/03/16

Our comprehensive guidance for companies preparing financial reports under IFRS is now available as an ebook, priced at £49.99. This ebook contains the combined text of the 3 hard copy volumes that make up the 2016 IFRS Manual of accounting set, including the new Manual of accounting IFRS 2015 supplement. The supplement includes 4 new chapters, appendices of the illustrative financial statements for IFRS 9 and IFRS 15 and a summary of changes to all the other chapters (which have been incorporated into the ebook text).

IFRS 16, 'Leases' The leases standard is changing- Are you ready?

03/03/16

IFRS 16: The leases standard is changing: Are you ready? can help you understand the standard’s impact on your organisation, potential issues and reduce implementation costs.

IFRS News - March 2016

02/03/16

FRS news March 2016 looks at: APMs; IFRS 9 impairment; IAS 7 amendment; Insurance contracts; Goodwill & Impairment; Interests in associates and joint ventures.

IFRS 16, 'Leases - Implications for the Pharmaceutical industry - PwC In the Spotlight

29/02/16

Leases are used in the Pharmaceutical industry in a variety of ways. Pharma companies typically lease buildings, company cars and computers, many of which are currently accounted for as operating leases. This In the Spotlight summarises the main aspects of IFRS 16, highlighting some key challenges and questions management should ask as they prepare for transition.

Accounting considerations for Venezuelan entities – update as of February 2016 - PwC In brief

26/02/16

The Venezuelan government has maintained a regime of strict currency controls over recent years. On 17 February 2016, the Venezuelan government announced changes to the currency controls. The effective date is yet to be confirmed. The announced changes aim to simplify the exchange mechanisms currently in place.

IFRS 16 'Leases' topic home page is now available

11/02/16

PwC's topic home page including all the resources on IFRS 16, Leases' is now available on Inform. The page will be continually updated as resources are released.

IFRS 16', 'Leases - Implications for the Retail and consumer industry - PwC In the Spotlight

10/02/16

The new lease accounting standard will fundamentally change the accounting for lease transactions and is likely to have significant business implications. Almost all leases will be recognised on the balance sheet, with a right of use asset and financial liability. The amortisation of the right of use asset and the accretion of interest on the financial liability will likely result in recognising higher expenses in profit or loss during the earlier life of a lease. The impact on the retail and consumer industry is summarised in this 'In the Spotlight'.

IFRS 16, 'Leases' - Implications for the Real estate industry - PwC In the Spotlight

10/02/16

The new lease accounting standard will fundamentally change the accounting for lease transactions and is likely to have significant business implications. Almost all leases will be recognised on the balance sheet, with a right of use asset and financial liability. The amortisation of the right of use asset and the accretion of interest on the financial liability will likely result in recognising higher expenses in profit or loss during the earlier life of a lease. The impact on the real estate industry is summarised in this In the Spotlight.

IFRS News - February 2016

04/02/16

The February 2016 issue includes IFRS 16 Leases:A glance at the new standard, Narrow-scope amendments to IAS 12: Recognition of deferred tax assets on unrealised losses, Current IC rejections: Various topics, P*Q crashes, Insurance contracts, Revenue from contracts with customers, Measurement of interests in associates and joint ventures, IC rejections: IAS 12.

IFRS 16 - A new era of lease accounting - PwC In depth

03/02/16

In January 2016 the International Accounting Standards Board (IASB) issued IFRS 16, ‘Leases’, and thereby started a new era of lease accounting – at least for lessees. Whereas, under the previous guidance in IAS 17, 'Leases', a lessee had to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet), the new model requires the lessee to recognise almost all lease contracts on the balance sheet; the only optional exemptions are for certain short-term leases and leases of low-value assets. For lessees that have entered into contracts classified as operating leases under IAS 17, this could have a huge impact on the financial statements.

In brief - Hyper-inflationary economies at 31 December 2015

25/01/16

Paragraph 4 of IAS 29 requires that the standard is applied from the beginning of the period in which the existence of hyper inflation is identified. The implications of that guidance and countries that are hyper-inflationary at 31 December 2015 (based on data from the IMF) are explained in this In brief.

In brief - New Italian MedTech payback measure

22/12/15

The Italian Parliament has approved Law No. 125/2015 on 6 August 2015. A key provision of the law is a 'Payback' measure requiring companies selling medical devices on the Italian market to make payments to the Italian state if healthcare expenditure on medical devices exceeds regional maximum caps.

In brief - Accounting considerations for Venezuelan subsidiaries

18/12/15

This In brief supersedes In brief INT2015-03 Consolidation considerations for Venezuelan subsidiaries and In brief INT2015-04 Exchange rates in Venezuela, for reporting periods starting after 15 December 2015.

IFRS News - December 2015/January 2016

18/12/15

The December 2015/January 2016 issue covers Revenue - TRG discusses optional purchases, licences and other topics, Financial instruments - News from the TRG for impairment, Definition of a business - FASB exposure draft, Update: IFRS in the US, Year-end reminders, Insurance contracts, Classification and measurement of share-based payments, Santa and the leasing standard, The accounting horoscope 2016, IFRIC rejections - IAS 10.

IFRS quarterly update - December 2015

11/12/15

The December 2015 IFRS quarterly update is a publication that outlines the IFRS reporting requirements as at 31 December 2015. It includes the standards that apply at this date; and the standards are published but effective at later dates and hence required to be disclosed plus a summary of the latest topical issues.

IFRS News - November 2015

24/11/15

IFRS News - November 2015

Illustrative IFRS consolidated financial statements for 2015 year ends

03/11/15

Illustrative IFRS consolidated financial statements for 2015 year ends

Illustrative IFRS consolidated financial statements 2015 - Investment property

02/11/15

Illustrative IFRS consolidated financial statements 2015 - Investment property

Illustrative IFRS financial statements - Investment funds 2015

01/11/15

Illustrative IFRS financial statements - Investment funds 2015

IFRS News - October 2015

08/10/15

In this issue: Revenue recognition: Proposed deferral of effective date; Employee benefit: IASB research project; Cannon street press: (Disclosure initiative; Annual improvements; Fair value of quoted instruments); Questions and answers: ‘Z’ for Zoos and IAS 41.

IFRS quarterly update - September 2015

30/09/15

IFRS quarterly update - September 2015

IFRS News - September 2015

03/09/15

IFRS News - September 2015

IFRS News - July/August 2015

02/08/15

The July/August 2015 edition covers: Revenue recognition - IFRS 15 ED, Pension accounting requirements - ED on IAS 19 and IFRIC 14, Revenue recognition - News from the Revenue TRG, Cannon Street Press: Insurance and IFRS 9; IFRS implementation issues; Fair value measurement, Financial instruments with characteristics of equity, IFRIC rejections - IAS 2.

Illustrative IFRS consolidated financial statements for 2015 year ends

30/07/15

This publication presents illustrative consolidated financial statements for a fictional listed company, Value IFRS Plc, that manufactures goods, provides services and holds investment property. The financial statements comply with International Financial Reporting Standards (IFRS) as issued at 30 April 2015 and that apply to financial years commencing on or after 1 January 2015.

IFRS News - June 2015

02/06/15

In this issue: Conceptual Framework: IASB issues exposure draft, segment disclosures: proposed changes arising from the IFRS 8 PIR, IFRS 9 and EFRAG: Close monitoring required, Cannon Street Press, NIFRICs by numbers: IAS 1.

IFRS News - May 2015

01/05/15

In this issue: Revenue recognition: Proposed deferral of effective date; Employee benefit: IASB research project; Cannon street press: (Disclosure initiative; Annual improvements; Fair value of quoted instruments); Questions and answers: ‘Z’ for Zoos and IAS 41.

INT2015-05 IASB proposes one-year deferral of new revenue standard

25/04/15

This In brief looks at the IASB's proposed deferral of the effective date of the IFRS 15, ‘Revenue from contracts with customers’, by one year, until 1 January 2018.

IFRS News - April 2015

01/04/15

The April 2015 edition of IFRS News covers: Revenue recognition: Proposed clarifications and expedients; FASB deferral; Leasing: New standard approved for ballot; IFRS 15 implementation issues: March revenue TRG meeting. Cannon Street Press:(IC discussion of IFRS 11; Leasing project; Disclosure initiative; Conceptual framework);Questions and answers:‘Y’ for Yields.

INT2015-14 A fresh look at IFRS 8, ‘Operating segments’

30/03/15

Segment reporting is viewed as a compliance exercise by many entities and, as such, its importance is often overlooked by management. This In depth explains the key requirements of IFRS 8, ‘Operating segments’, and discusses practical issues that have evolved over time. It also offers insights to the importance of segment reporting for telling the ‘whole story’ of an entity.

INT2015-13 IFRS 9: Impairment of financial assets – Questions and answers

27/03/15

In July 2014, the IASB published the complete version of IFRS 9, Financial instruments, which replaces most of the guidance in IAS 39. The final standard contains a new impairment model which will result in earlier recognition of impairment losses. This new In depth includes our views on some of the most common issues that have been raised by preparers and reviewers of financial statements as part of implementation of the new standard in relation to impairment.

INT2015-12 IFRS 9: Classification, measurement and modifications – Questions and answers

23/03/15

In July 2014, the IASB published the complete version of IFRS 9, 'Financial instruments', which replaces most of the guidance in IAS 39. The final standard includes amended guidance on classification and measurement of financial assets from the previous versions of IFRS 9. This new In depth includes our views on some of the most common issues that have been raised by preparers and reviewers of financial statements as part of implementation of the new standard in relation to classification and measurement.

INT2015-11 Testing for impairment in the upstream industries - top reminders

18/03/15

Commodities prices have declined considerably over the past year, with the most dramatic change experienced by the oil and gas industry. Crude oil prices have dropped by 60% over six months, and the fourth quarter of 2014 has seen impairment losses recognised for oil and gas assets. Canadian-based Talisman Energy recorded after-tax impairments during the fourth quarter of 2014 of approximately $1.37 billion, primarily as a result of declining oil prices.

INT2015-10 New IFRSs for 2015

16/03/15

This publication outlines the new IFRS standards and interpretations that come into effect for 2015 year ends. Three new standards have been issued: Financial instruments - IFRS 9, Regulatory deferral accounts - IFRS 14, and Revenue from contracts with customers - IFRS 15. A few narrow scope amendments to existing standards effective for 1 July 2014 have been EU endorsed as effective for on or after 1 January 2015 and the IASB has issued various other amendments that are subject to endorsement for EU entities.

INT2015-09 IAS 23 - Capitalisation of borrowing costs

13/03/15

IAS 23, ‘Capitalisation of borrowing costs’, is one of the shortest standards in IFRS. It has remained virtually unchanged since 1993, except that the option to expense borrowing costs related to acquisition or construction of qualifying assets was eliminated in 2009. However, practical implementation of this seemingly simple standard often raises questions for which the standard does not give clear answers. Challenges include specific versus general borrowings, when to start capitalisation, total borrowing costs eligible for capitalisation, and whether foreign exchange differences should be capitalised. These practical challenges are the focus of this In depth.

INT2015-08 Impairment of non-financial assets – Expanding on the top 5 tips for impairment testing

01/03/15

Recent months have been marked by increased volatility in global markets. This economic environment could lead to revised budgets and forecasts with an expectation of lower cash flows from existing non-financial assets. The amount of headroom in impairment tests is therefore likely to diminish. This In depth provides a more detailed look at 5 key areas to focus on when completing your impairment review for non-financial assets.

IFRS News - March 2015

01/03/15

The March 2015 edition of IFRS News covers: New revenue standard: Convergence under pressure; Investor view: Accounting policies: Cannon Street Press (ED on IAS 1 amendments; Leasing project; Rate regulated activities) Questions and answers: ‘X’ for eXiting a business.

INT2015-07 IFRS 13 disclosure requirements – Questions and answers

28/02/15

IFRS 13 expanded the guidance on assessing fair value measurements within the three levels of the fair value hierarchy. As a result, the classification as Level 1, Level 2 or Level 3 became required for non-financial assets and liabilities measured at fair value and disclosures of fair values in the notes to the financial statements. This publication sets out our views on some of the key considerations in determining the appropriate classification of fair value measurements.

INT2015-06 IFRS 11, 'Joint arrangements' - Implementation issues considered by the IFRS Interpretations Committee

23/02/15

IFRS 11 seems to have given rise to a record number of issues for the IFRS Interpretations Committee (IC) even before its widespread adoption.The IC published tentative agenda decisions on a number of these issues in November 2014 These might provide some additional clarity on the application of the standard, particularly the ‘facts and circumstances’ around classification as a joint operation. This In depth summarises the tentative conclusions reached by the IC and the practical implications. The conclusions are not expected to result in a significant change in how the standard is applied.

The axe: a much neglected tool for standard setting

19/02/15

The axe: a much neglected tool for standard setting

INT2015-04 Exchange rates in Venezuela

17/02/15

Currency exchange legislation in Venezuela was amended in February 2015 to create a new system(known as SIMADI), which permits foreign exchange barter and cash transactions. SIMADI allows both individuals and entities to buy and sell foreign currency with fewer restrictions than other systems in Venezuela. In brief 2015-04 discusses the detail.

Written put options on non-controlling interests – read this for the answer!

10/02/15

Written put options on non-controlling interests – read this for the answer!

IFRS News - February 2015

01/02/15

The February 2015 edition of IFRS News covers: Financial volatility: Accounting implications; Revenue TRG: January meeting; IFRS in the EU: A good idea?; Cannon Street Press (Disclosure initiative; Employee benefits); and Questions and answers:‘W’ for Written options.

INT2015-05 IFRS 9: Hedging in practice - Frequently asked questions

30/01/15

Many companies are now considering IFRS 9, the new accounting standard on financial instruments. IFRS 9 addresses all the relevant aspects on the accounting for financial instruments, including classification and measurement, impairment of financial assets and general hedge accounting. This publication presents a number of frequently asked questions and focuses on just one topic in IFRS 9: general hedge accounting.

INT2015-04 Alternative financing for extractive industries

27/01/15

Globally, the extractive industries (oil & gas, mining and metals) have suffered a lack of investor confidence, multi-billion dollar write downs, poor returns, volatile commodity prices and escalating operating costs. Compounding this challenge, the typical sources of funding might be more difficult to find, particularly in times when the equity or debt markets are not welcoming. Companies continue to look to alternative sources of finance and creative deal structures for growth and funding. This In depth helps identify the key features of the deal and how those features impact the accounting.

INT2015-03 Distinguishing a business from an asset or a group of assets (pharmaceutical and life sciences industry)

23/01/15

Pharmaceutical, biotech, medical device and other life sciences companies frequently deal with the highly judgmental and complicated area of determining whether an acquisition, investment or license should be accounted for as a business combination or an asset acquisition. This distinction matters as the accounting for a business combination varies significantly from the accounting for an asset acquisition, particularly in the pharmaceutical and life sciences industry. This In depth discusses the issue and some illustrative examples.

INT2015-02 IFRS 9: Expected credit loss disclosures for banking

20/01/15

IFRS 9 introduces significant additional disclosure requirements relating to credit risk and expected credit loss allowances. Understanding the data and systems needed to meet these new requirements will be critical to ensuring the completeness of IFRS 9 project scopes, thereby avoiding revisions later in the project that could be costly and jeopardise project timings. Considering these disclosure requirements as part of the broader consideration of internal management reporting and investor communications will also likely deliver significant benefits. This ‘In depth’ sets out key considerations and what they will mean in practice.

INT2015-03 Consolidation considerations for Venezuelan subsidiaries

15/01/15

Venezuela is a hyper-inflationary economy and the government maintains a regime of strict currency controls. Multinational companies are facing significant difficulty in repatriating earnings from Venezuelan subsidiaries. In brief INT2015-03 discusses the issue.

Convergence – is it worth it?

13/01/15

Convergence – is it worth it?

INT2015-02 Top 5 tips for impairment reviews of non-financial assets

12/01/15

Recent months have been marked by increased volatility in global markets. This environment could lead to revised budgets and forecasts with an expectation of lower cashflows from existing non-financial assets. This In brief highlights the top 5 tips to focus on when completing your impairment review for non-financial assets.

INT2015-01 Disposals – seller accounting for contingent consideration (pharmaceutical and life sciences industry)

07/01/15

Contingent consideration arrangements in acquisitions and disposals are common within the pharmaceutical and life sciences industry as they can be a convenient way of validating a company’s value as well as sharing economic risk between the buyer and the seller. In the industry, many acquisitions and disposals involve compounds or devices that have not yet received regulatory approval, which inherently increases the risk that the degree of commercial success of what is acquired or sold may not be known at the date of acquisition. The focus of this In brief is to discuss the accounting for contingent consideration from the seller’s perspective as this is an area where IFRS and US GAAP are not aligned.

INT2015-01 IFRS 10 and IFRS 12 - Questions and answers

02/01/15

IFRS 10 and IFRS 12 were issued in May 2011. Any new standard presents challenges and questions when preparers of financial statements start implementation. IFRS 10 retains the key principle of IAS 27 and SIC 12: all entities that are controlled by a parent are consolidated. However, some of the detailed guidance is new and may result in changes in the scope of consolidation for some parent companies. Experience suggests that the new requirements will have the greatest impact on consolidation decisions for structured entities (or ‘special purpose entities’) and for pooled funds managed by a third party. This In depth sets out our views on some of the most common issues that arise during the implementation of the new standards.

Illustrative IFRS consolidated financial statements 2014 - Investment property: PwC

30/12/14

This publication provides an illustrative set of consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), for a fictional investment property group (IP Group). The group prepares its consolidated financial statements in accordance with IFRS as issued by the IASB and is based on standards and interpretations for the financial year beginning on 1 January 2014.

Santa’s other present – the new revenue standard

25/12/14

Santa’s other present – the new revenue standard

‘Big’ banks and impairment – how do you compare to your peers?

19/12/14

‘Big’ banks and impairment – how do you compare to your peers?

INT2014-16 Hyperinflationary economies at 31 December 2014

17/12/14

Paragraph 4 of IAS 29 states that it is preferable for all entities that report in the currency of the same hyperinflationary economy to apply IAS 29 from the same date. We have listed below those countries that meet the criteria in IAS 29 to be classified as hyperinflationary at 31 December 2014.

INT2014-12 A look at current financial reporting issues

16/12/14

In this publication we look at how a sample of European real estate companies have responded to IFRS 13 disclosure requirements in relation to investment properties, specifically, the quantitative information disclosed about significant unobservable inputs used in fair value measurement and the sensitivity of the fair value measurement to significant changes in those unobservable inputs.

INT2014-11 Frequently asked questions - offsetting financial instruments for investment funds

13/12/14

Offsetting is a complex area of accounting, where understanding of the operational and contractual arrangements that an investment fund enters into is key to arriving at the appropriate accounting conclusion. A previous ‘in depth’ was issued in July 2014 entitled ‘offsetting financial instruments for financial institutions’. This ‘In depth’ sets out our views on the main questions we are seeing in practice specifically for investment funds

INT2014-10 In depth on the IFRS 10 investment entities amendment – exception to consolidation for real estate entities

12/12/14

This publication contains a number of questions and answers on the application of the investment entities amendment on the exception to consolidation and assists the management of real estate structures in assessing whether an entity or entities within those structures meet the criteria of an investment entity.

IASB defines ‘profit or loss’ but what are the consequences for OCI?

10/12/14

IASB defines ‘profit or loss’ but what are the consequences for OCI?

IFRS news - December 2014/January 2015

01/12/14

The December edition of IFRS news covers the following: Joint arrangements: IC tentative agenda decisions; A present from Santa: New revenue standard; Year-end reporting: Top ten reminders; Cannon Street Press (investment entities: Amendments to IFRS 10, and IAS 28; IAS 1 narrow scope amendments; IFRS 2 proposed amendments; IAS 7 proposed amendments); Questions and answers:‘V’ for Vesting conditions.

IFRS disclosure checklist 2014

28/11/14

The global version of the IFRS disclosure checklist 2014 has been updated to outline the disclosures required for December 2014 year ends. It also contains a section (Section H) which provides the disclosures required of entities that early-adopt IFRSs effective for annual periods beginning after 1 January 2014.

Illustrative IFRS financial statements 2014 - Investment funds: PwC

24/11/14

This publication is based on the requirements of IFRS standards and interpretations for the financial year beginning on 1 January 2014. The new standards and amendments effective for annual periods beginning on 1 January 2014 which are relevant to investment funds include; Amendments to IAS 32, ‘Offsetting financial assets and financial liabilities and Amendments to IFRS 10, IFRS 12 and IAS 27, ‘Investment entities’. The guidance and illustrative disclosure on these amendments are contained in either the main body of the financial statements or an attached appendix and are largely consistent with our 2013 publication.

INT2014-15 Investigations into ‘state aid’

20/11/14

The European Commission (EC) has announced an investigation into whether certain income tax legislation and rulings of European Union (EU) member states constitute unlawful ‘state aid’. State aid is an EC term that refers to forms of public assistance given to entities on a selective basis that has the potential to distort competition and affect trade. These developments and similar investigations of other jurisdictions might require consideration in the context of uncertain income tax positions. In brief INT 2014-15 looks at the details.

INT2014-14 Research and development funding arrangements: Accounting under IFRS

15/11/14

R&D funding arrangements between pharmaceutical companies and financial investors are often very complex and can last for many years over the different phases of a product’s life cycle - all the way from an early stage development project through to a marketed product. Differing levels of risk and reward may be transferred between parties depending on the stage in a product’s life cycle that an agreement is signed. When negotiating these arrangements, Pharma and financial investors often have competing priorities. This publication looks at the details.

Illustrative IFRS consolidated financial statements for 2014 year ends

10/11/14

This publication provides an illustrative set of consolidated financial statements, prepared in accordance with IFRS, for a fictional manufacturing, wholesale and retail group (IFRS GAAP plc). IFRS GAAP plc is an existing preparer of IFRS consolidated financial statements. This publication is based on the requirements of IFRS standards and interpretations for financial years beginning on or after 1 January 2014. Areas in which presentation has changed significantly since 2013 are highlighted. Significant changes include disclosures of the offsetting of financial assets and liabilities under IFRS 7 and enhanced impairment disclosures under IAS 36.

The IFRS Interpretations Committee – Is it doing enough?

01/11/14

In this blog, Mary Dolson discusses the role of the IFRS Interpretations Committee and if they are doing enough to support the consistent interpretation and application of IFRS.

IFRS News - November 2014

01/11/14

The November edition of IFRS news covers the following: Revenue TRG - October meeting, EFRAG - New governance structure, ESMA enforcement priorities, Cannon Street Press; Leases, Conceptual Framework, Research agenda, Questions and answers - ‘U’ is for underlying and The bit at the back.

IFRS pocket guide 2014

30/10/14

Our IFRS pocket guide 2014 provides a summary of the recognition and measurement requirements of International Financial Reporting Standards published up to August 2014. This quick-reference guide is intended for a variety of audiences, including finance directors, financial controllers and other members of the finance team, as well as broader management, actuaries, lawyers, merchant bankers and analysts.

Rate regulation – solving problems you didn't know you had?

24/10/14

In this blog, Andrea Allocco discusses rate regulation.

Illustrative condensed interim financial statements 2014

19/10/14

This illustrative set of condensed interim financial statements reflects IFRSs in issue at 1 March 2014 that are required to be applied by an existing preparer of IFRS financial statements with an annual period beginning on or after 1 January 2014. Preparers should check for IASB pronouncements made after 1 March that may apply to their interim financial statements.

A comparison of IFRS and US GAAP - 2014

14/10/14

"This publication is designed to alert companies to the major differences between IFRS and US GAAP as they exist today and to the timing and scope of accounting changes that the boards’ standard setting agendas will bring. "

INT2014-09 IFRIC 21 - Levies

10/10/14

In May 2013, the IASB issued IFRIC 21 'Levies' which clarifies the existing guidance in IAS 37 'Provisions, contingent liabilities and contingent assets' for recognising an obligation to pay a levy that is not income tax. The interpretation could result in recognition of a liability later than previously, particularly in connection with levies that are triggered by circumstances on a specific date.

INT2014-13 Change in timing for recording the annual pharmaceutical fee

09/10/14

New US regulation accelerates recognition of the annual fee on sales of branded prescription drugs in Q3, resulting in a double-hit to income in 2014 for many pharmaceutical manufacturers and importers.

Deferred tax - where imaginary numbers meet accounting

05/10/14

In this blog, Dave Walters discusses the complexity of measurement issues when calculating deferred tax.

IFRS 9 - not just for banks

01/10/14

In this blog, Jessica Taurae discussed IFRS 9 and the impact it will have on entities outside of the financial services sector.

What is this blog for?

01/10/14

In this blog, Mary Dolson gives an insight into what the IFRS blog is all about and encourages readers to engage in debate around the issues covered in the blog.

What might Warren Buffet contribute to the IFRS 3 (Revised) post-implementation review?

01/10/14

In this blog, Dave Walters discusses Warren Buffet's views on the IFRS 3 (Revised) post implementation review.

IFRS quarterly update - September 2014

01/10/14

The September 2014 IFRS quarterly update is a publication that outlines the IFRS reporting requirements as at 30 September 2014. It the standards that apply at this date; and the standards are published but effective at later dates and hence required to be disclosed plus a summary of the latest topical issues.

IFRS news - October 2014

01/10/14

The October edition of IFRS news covers the following (Conceptual Framework: IASB takes debt versus equity off the table; Leases: IASB holds the line on a single model; Financial reporting: Calling time on the blame game; IFRS in the EU: EC consultation; Cannon Street Press (IFRS 10 and IAS 28 amendments; Annual Improvements 2012–14; ED on fair value – PxQ; Rate-regulated activities DP; Disclosure initiative; Insurance redeliberations) Questions and answers: ‘T’ is for ‘Translation of foreign currencies’.

INT2014-08 Measurement of joint operations: Reading between the lines

11/09/14

Measurement of a joint operation (JO) is largely unaddressed in IFRS 11, ‘Joint arrangements’, and as such, some diversity in practice has developed. In depth INT2014-08 walks through some common JO measurement issues, discussing the measurement approach(es) observed under this guidance. It also covers the recent amendment to IFRS 11 which requires the application of IFRS 3 to transactions where an investor obtains an interest in a JO that constitutes a business. The guidance is mandatory from January 2016, prior to which a policy choice is available and must be applied consistently for each arrangement.

INT2014-07 Amendments to classification of bearer plants

10/09/14

IFRS 7 has been amended several times with the clear intention to improve the disclosure requirements about financial instruments. The latest two amendments relate to transfers of financial assets and offsetting assets and financial liabilities. Furthermore, some disclosure requirements previously included in IFRS have been transferred to IFRS 13. In depth INT2014-01 (formerly practical guide) looks at the changes.

INT2014-12 IASB concludes the annual improvements to IFRSs 2012–2014 cycle

08/09/14

These set of amendments impacts 4 standards: •IFRS 5, 'Non-current assets held for sale and discontinued operations' regarding methods of disposal.•IFRS 7, 'Financial instruments: Disclosures', (with consequential amendments to IFRS 1) regarding servicing contracts.•IAS 19,'Employee benefits' regarding discount rates.•IAS 34, 'Interim financial reporting' regarding disclosure of information. The amendments are effective 1 July 2016, subject to EU endorsement.

INT2014-11 IASB publishes amendments to IFRS 10 and IAS 28

02/09/14

These amendments address an inconsistency between the requirements in IFRS 10 and those in IAS 28 in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognised when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.The amendments will be effective from annual periods commencing on or after 1 January 2016 subject to EU endorsement.

IFRS news - September 2014

01/09/14

The September edition of IFRS news covers the following: Alternative performance measures, Time for ground rules, IFRIC activity: The ‘NIFRIC’, Spotlight on IASB: Interview with Amaro Gomes, Cannon Street Press, IAS 27 narrow scope amendment, Exposure draft on IAS 12 narrow scope amendment, IASB Workplan and Questions and answers:‘S’ is for service concession arrangements.

INT2014-06 IFRS 9: Expected credit losses

30/08/14

On 24 July 2014 the IASB published the complete version of IFRS 9, ‘Financial instruments’, which replaces most of the guidance in IAS 39. This includes amended guidance for the classification and measurement of financial assets by introducing a fair value through other comprehensive income category for certain debt instruments. It also contains a new impairment model which will result in earlier recognition of losses. In depth INT2014-06 (considers the new impairment model. Further details on the changes to classification and measurement of financial assets are included in our In Depth 'IFRS 9: Classification and measurement'. The general hedging model is covered in the 'General hedge accounting Practical guide'.

INT2014-05 IFRS 9-Classification and measurement

27/08/14

On 24 July 2014 the IASB published the complete version of IFRS 9 Financial Instruments, which replaces most of the guidance in IAS 39. This includes amended guidance for the classification and measurement of financial assets by introducing a fair value through other comprehensive income category for certain debt instruments. It also contains a new impairment model which will result in earlier recognition of losses.

Revenue from contracts with customers - 2014 edition

25/08/14

This guide describes the accounting under IFRS 15, Revenue from contracts with customers, the converged IFRS and US GAAP revenue standard issued in May 2014. This guide is to assist in understanding and evaluating the accounting for revenue transactions under the new standard.

IFRS News - May 2016

May 05, 2016

The May 2016 issue includes: Final changes to IFRS 15 - An overview, Regulator focus - What can we learn from the ESMA report?, IFRS 8 Segment Reporting - Key things to look out for, Leases lab - How to implement the new guidance?, Cannon Street Press: Insurance and IFRS 9; Conceptual Framework; Disclosure Initiative, IC rejections - IAS 18, Cryptic word-seek: Solution.

IFRS 16 'Leases' - Implications for the airlines industry - PwC In the Spotlight

April 22, 2016

Under IFRS 16 substantially all lease contracts will be on the balance sheet of the lessee. Estimates suggest this change will mean that trillions of additional lease obligations will be added to the balance sheets of Airlines world-wide. As most lease obligations are denominated in US-Dollar, many airlines will also be exposed to additional foreign currency volatility into their profit or loss. This In the Spotlight summarises the main aspects of the standard, highlighting some key challenges and questions management should ask as they prepare for transition.

IAS 29 - South Sudan enters hyperinflation - PwC In brief

April 18, 2016

The economic environment in South Sudan deteriorated rapidly towards the end of 2015. Cumulative inflation for the year to the end of January 2016 exceeded 100% and South Sudan should therefore be considered a hyper inflationary economy in 2016. IAS 29, 'Financial Reporting in Hyperinflationary Economies', should be applied by entities with a South Sudanese pound functional currency to financial statements for the year ending 31 December 2016 and for interim periods within that year. IAS 29 should also be applied to restate the financial statements of subsidiary entities with a South Sudanese pound functional currency before they are included in the consolidation at 31 December 2016.

IFRS IC decision - Immediate impact on cash pooling arrangements- PwC In brief

April 15, 2016

The IFRS Interpretations Committee (IC) issued an agenda decision in April 2016 on when and whether entities are able to offset balances in accordance with IAS 32. This could have wide ranging implications for both financial institutions and corporate entities. The IC noted that, to the extent to which a group does not expect to settle its subsidiaries’ period-end account balances on a net basis, it would not be appropriate for the group to assert that it had the intention to settle the entire period-end balances on a net basis at the reporting date. Hence such balances cannot be offset under IAS 32.

IFRS 15,'Revenue from contracts with customers', Transportation and logistics industry supplement - PwC In depth

April 13, 2016

Industry supplement discusses the areas where the revenue standard (IFRS 15) is expected to have most impact on the transportation and logistics industry.

IFRS 15 ‘Revenue from contracts with customers’ amendments - PwC In brief

April 12, 2016

A brief look at the IASB’s amendments to IFRS 15, issued in April 2016.

IFRS News - April 2016

April 08, 2016

The April 2016 issue includes key considerations for impairment tests - Cash flows and discount rate, Current IC rejections - Various topics, Leases lab - How to implement new guidance?, Cannon Street Press - Applying IFRS 9 with IFRS 4, Definition of a business, Goodwill and impairment, Agenda consultation, IC rejections: IAS 17, Cryptic word-seek.

New IFRS for 2016: PwC In depth

March 31, 2016

Summary of new IFRSs and amendments plus standards and amendments effective from 1 January 2016. Covers IFRS 16, IAS 7, IAS 12.

IFRS quarterly update - March 2016

March 24, 2016

The March 2016 IFRS quarterly update is a publication that outlines the IFRS reporting requirements as at 31 March 2016. It the standards that apply at this date; and the standards are published but effective at later dates and hence required to be disclosed plus a summary of the latest topical issues.

IFRS 16, 'Leases' - Implications for the communications industry - PwC In the Spotlight

March 23, 2016

Summary of the main aspects of IFRS 16 Leases, for the communications industry, highlighting key challenges and questions management should ask ahead of transition.

IFRS 16, 'Leases' - Implications for the shipping industry - PwC In the Spotlight

March 23, 2016

Summary of the main aspects of IFRS 16 Leases, for the shipping industry, highlighting key challenges and questions management should ask ahead of transition.

IFRS 9 - Basel Committee guidance on accounting for expected credit losses for banks - PwC In depth

March 18, 2016

A look at the IFRS 9 key accounting aspects included in the Basel Committee's Guidance on credit risk and accounting for expected credit losses.

Key considerations given current market volatility and regulatory scrutiny - PwC valuation guidance paper

March 14, 2016

Update on regulators’ focus on valuations within financial statements against the backdrop of a highly volatile market, with tips for reviewing/performing valuations.

Manual of accounting: IFRS 2016 - ebook available

March 08, 2016

Our comprehensive guidance for companies preparing financial reports under IFRS is now available as an ebook, priced at £49.99. This ebook contains the combined text of the 3 hard copy volumes that make up the 2016 IFRS Manual of accounting set, including the new Manual of accounting IFRS 2015 supplement. The supplement includes 4 new chapters, appendices of the illustrative financial statements for IFRS 9 and IFRS 15 and a summary of changes to all the other chapters (which have been incorporated into the ebook text).

IFRS 16, 'Leases' The leases standard is changing- Are you ready?

March 03, 2016

IFRS 16: The leases standard is changing: Are you ready? can help you understand the standard’s impact on your organisation, potential issues and reduce implementation costs.

IFRS News - March 2016

March 02, 2016

FRS news March 2016 looks at: APMs; IFRS 9 impairment; IAS 7 amendment; Insurance contracts; Goodwill & Impairment; Interests in associates and joint ventures.

IFRS 16, 'Leases - Implications for the Pharmaceutical industry - PwC In the Spotlight

February 29, 2016

Leases are used in the Pharmaceutical industry in a variety of ways. Pharma companies typically lease buildings, company cars and computers, many of which are currently accounted for as operating leases. This In the Spotlight summarises the main aspects of IFRS 16, highlighting some key challenges and questions management should ask as they prepare for transition.

Accounting considerations for Venezuelan entities – update as of February 2016 - PwC In brief

February 26, 2016

The Venezuelan government has maintained a regime of strict currency controls over recent years. On 17 February 2016, the Venezuelan government announced changes to the currency controls. The effective date is yet to be confirmed. The announced changes aim to simplify the exchange mechanisms currently in place.

IFRS 16 'Leases' topic home page is now available

February 11, 2016

PwC's topic home page including all the resources on IFRS 16, Leases' is now available on Inform. The page will be continually updated as resources are released.

IFRS 16', 'Leases - Implications for the Retail and consumer industry - PwC In the Spotlight

February 10, 2016

The new lease accounting standard will fundamentally change the accounting for lease transactions and is likely to have significant business implications. Almost all leases will be recognised on the balance sheet, with a right of use asset and financial liability. The amortisation of the right of use asset and the accretion of interest on the financial liability will likely result in recognising higher expenses in profit or loss during the earlier life of a lease. The impact on the retail and consumer industry is summarised in this 'In the Spotlight'.