Notes from CIMA/BPP IFRS update, Russell Hotel, London

Changes for periods after 1 Jan 13

IAS 19 employee benefits including holiday pay
IFRS13 Increased disclosure where fair value accounting used

Changes for periods after 1 Jan 14
IAS 27 separate financial statements
IAS 28 investments in assocs and jvs
IFRS 10 consol fin statements. Vodafone is good example of explaining valuation methods
IFRS 11 joint arrangements - looks at control to define ownership

New standards affecting this year
IAS 8 para 28 about new standards adopted this period and effect
Para 30 where has not applied yet but adoption in future will affect accounts
Highlight areas requiring significant estimate or judgement

3i good example for financial instruments

Lease accounting Exposure draft could be effective in 2015
Capitalise if have right to control use of the asset.
Capitalise fair value at acquisition then depreciate
Note that leased asset are to be shown separately from owned assets
Options to renew only taken account of if there is significant financial incentive to extend (but this could be just the moving costs?)

Ifrs4 insurance

IAS 18 revenue published at 2014. Waiting for EU approval.
IFRS 15 Revenue from contacts with customers. Examples Vodafone and Arm Holdings

FRC corporate reporting review key messages - worth looking at.

Project summaries available from IAS website

Efrag website to show what standards have been adopted by EU.

To do:

Read up on FRS 102  uk gaap revised in Aug 14 effective for SMEs from 2016; info on FRC website. Staff eduction notes SEN prefix.
New std on lease accounting

Where it says early adoption permitted - remember needs to be ratified by EU first.

Technical update - IFRS and UK GAAP

Found this one hour webcast update kindly shared by wwwDeloitte.com (use STOJUL13 as the recording ID).  It has useful information, especially about the proposed changes for accounting treatment for leases and FRS102 the new standard to replace UKGAAP .

An article reminding us that operating leases will become even rarer.  Lease accounting changes 'little known' - Accountancy Age mobile

Technical Accounting and Auditing Standards Update

Full day technical update organised by ACCA and South Coast Audit.  Presented by Charles Gubbins BSc CA.

AM: Mainly IFRS updates with some UKGAAP.
PM: Governance and audit.

Particular points of interest:

• Treatment of leases still moving.  Moving towards capitalisation of all leases but distinction between operating and finance leases will remain.
• Profit and loss account to change again and become 'Statement of Profit or Loss and other comprehensive income'.
• Sustainability: not a requirement to report this yet but need to be in a position to do so.  In particular, business mileages, gas, electricity and this information for any major subcontractors.
• UK Corporate Governance code

Certificate

Revision of differences between IFRS and UK GAAP

Found this concise summary although it deals only with policy differences and seems to miss out leases.  Many of the changes are actually to do with disclosure.

For a really thorough analysis, look at this site which has a pdf of a detailed report comparing and contrasting UKGAAP to IFRS.  The executive summary is on pages 4 to 8 of 96.  The report was written in Nov 2010.

Grant Thornton Technical Update Seminar

A 3 part seminar:

Overview of The Future of UK Financial Reporting Standards
Presented by Michelle Sansom of the UK Accounting Standards Board

Specifics relating to the future of UK Financial Reporting Standards
Presented by Philip Allen, Assurance Senior Manager at Grant Thornton

Outsourcing and Rightsourcing
Presented by Mike Morrison, CEO and James Bowkes, FD, ISG Technology

1.5 hours

CIMA Members in Pactice Conference

2 day event covering a range of subjects including technical updates.

Technical Update

A BPP/Grant Thornton update covering the latest changes to IFRS and UK GAAP.

IFRS Practitioner Training

A two day course run by Price Waterhouse, specifically aimed at people leading IFRS implementation projects.