Summary of IFRS developments that may impact the Real Estate Industry |
New standards and interpretations
IFRS 8 - Operating segments summary:
- Specifies how an entity should report information about its operating segments in annual financial statements and requires an entity to report selected information about its operating segments in interim financial reports
- Generally, financial information is required to be reported on the same basis as is used internally for evaluating operating segment performance and deciding how to allocate resources to operating segments
- However, IFRS 8 does not require an entity to report information that is not prepared for internal use if the necessary information is not available and the cost to develop it would be excessive
- This standard is only applicable for companies whose equity instruments are traded in a public market or entities who are filing financial statements with regulators for purpose of issuing any call of instruments in a public market.
Main changes:
- The standard replaced IAS 14 and the main changes relate to:
- Identification of segments
- Measurement of segment information
- Disclosures
IFRIC Interpretation 15 - Agreements for the construction of real estate
- Specifies whether an agreement for construction of real estate is within the scope of IAS 11 -Construction contracts or IAS 18 – Revenue
Amendments to existing standards and interpretations
IAS 1 (revised) - Presentation of financial statements
- States fundamental principles established for the preparation of the financial statements, including going concern assumptions, consistency in presentation and classification, accrual basis of accounting and materiality
- A complete set of financial statements comprises:
- A statement of financial position
- A statement of comprehensive income
- A statement of changes in equity
- A statement of cash flows
- Notes and
- A statement of financial position as at beginning of the earliest comparative period*
Main changes:
- New titles (not mandatory):
- Balance sheet => statement of financial position
- Cash flow statement => statement of cash flow
- All changes in equity arising from transactions with owners (ie, owner changes in equity) need to be presented separately from non-owners changes in equity
* Statement of financial position should include an additional period presented when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items or when it reclassifies items in its financial statements
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Summary of IFRS developments that may impact the Real Estate Industry - Slidedeck
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