In January 2016, the IASB published IFRS 16, its new accounting standard on leases. This signals the end of a major and often controversial project, which aimed to provide a more faithful representation of leases in IFRS financial statements.
The core principle of IFRS 15 is that revenue recognition must depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
Businesses in the construction, civil engineering and real estate development industries are about to face the implementation of a major standard incorporating the new principles of revenue recognition: IFRS 15. Could IFRS 15 therefore call into question the recognition of revenue according to the stage of completion, or lead to a change in the pattern at which revenue and/or the margin is recognised?
IFRS 15 will be applicable to periods beginning on or after 1 January 2018, with a requirement to present comparative information from 2017 at least. Endorsement by the European Union is expected during the second quarter of 2016. Early application will then be possible.
In 2016, real estate investment in Europe fell by 9% by comparison with 2015 to €230 billion, but the listed real estate companies in our sample nevertheless achieved excellent financial performances.
This publication provides a set of illustrative financial statements of a fictitious company, Mazars SME Sdn Bhd, for the financial year ending 31 December 2016 prepared according to the Malaysian Private Entities Reporting Standard (MPERS) issued by the Malaysian Accounting Standards Board. MPERS may be applied by private entities effective for the annual financial periods beginning on or after 1 January 2016.
In February 2014, the Malaysian Accounting Standards Board issued the Malaysian Private Entities Reporting Standard (“MPERS”).
MPERS or IFRS for SMEs is designed to meet the financial reporting needs and capabilities of small and medium-sized entities (“SMEs”).
MPERS is effective for financial statements with annual periods beginning on or after 1 January 2016.
IFRS 13 "Fair Value Measurement".
Key points of the new standard in 40 questions and answers
The standard IFRS 13 "Fair Value Measurement" was published by the IASB in May 2011. As far as the IASB is concerned, application will be mandatory to current reporting periods as 1 January 2013. Early application is authorised.
The Application of IFRS 13 by the European entities is subject to its endorsement by the European Union.
IFRS 9 ‘Financial Instruments’, which is effective for annual periods beginning on or after 1 January 2018, is a single integrated standard for financial instruments. This Standard sets out the requirements for the classification and measurement of financial assets and liabilities, the impairment of financial assets and hedge accounting.
On 12 August 2014, the IASB published Equity Method in Separate Financial Statements (Amendments to IAS 27).
The amendments to IAS 27 will allow entities to use the equity method to account for investments in subsidiaries, associates and joint ventures in their separate financial statements.