New BDO IFR Bulletin Available - IOSCO Statement on Implementation of New Standards

Summary of IFRB 2017/03

In December 2016 the International Organisation of Securities Commissions (IOSCO) issued a statement on the implementation of IFRS 9 Financial Instruments, IAS 15 Revenue from Contracts with Customers and IFRS 16 Leases.  This follows on from similar statements made by other regulatory bodies such as the European Securities and Markets Authority (ESMA), and which were addressed in IFRBs 2016/16 and 2017/1.

One of the IOSCO Principles of Securities Regulation for issuers (Principle 16) is that there should be full, accurate and timely disclosure of financial results, risk and other information which is material to investors’ decisions.  IOSCO considers the accuracy, integrity, and comparability of issuer disclosure to be essential for maintaining investor confidence and therefore facilitating a stable international financial system.

Accordingly, IOSCO has issued a statement based on, and in the light of:

• The International Accounting Standard Board (IASB) issuing 3 new accounting standards dealing with the accounting for financial instruments, revenue and leases, all of which (individually or collectively) have the potential significantly to affect the reported financial performance and positions of many issuers
• The fact that issuers will, if they have not already done so, need to commence work soon to implement the new standards by their effective dates (periods beginning on or after 1 January 2018 in the case of IFRSs 9 and 15, and 1 January 2019 in the case of IFRS 16), noting that audit committees will be engaged in oversight of the implementation processes and auditors will be planning work to perform audit procedures thereon; and
• The requirement in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to disclose transparent quantitative and qualitative information about the impact these new standards will have in accounting periods leading up to their effective date, which in turn is consistent with IOSCO Principle 16.

This IFR Bulletin summarises the main points in IOSCO’s statement.

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