These requirements differ from and are narrower than IFRS Standards.Â. The FASB has made significant changes to the accounting for long-duration contracts.5. © 2020 KPMG IFRG Limited, a UK company, limited by guarantee. Similarly, the FASB has extended effective dates for the following standards, causing a wider gap for dual reporters that are private US companies: The FASB plans to continue its project on reporting of gifts-in-kind by not-for-profit entities in the near term, but will defer issuing any other proposed updates until later in 2020. Under both IFRS Standards and US GAAP, a lessor payment for lessee-owned leasehold improvements is a lease incentive that should reduce the lease payments. IFRS 16 is no exception and its lease term assessment is a great example. IFRS 16: understanding the principles of lease terms While they might look straightforward at first, all new IFRS® Standards require a certain level of interpretation and judgement that give way to challenges and questions. Mike Metcalf. That is, it does not require either (1) that the concession either be a. The book-value method proposed would be used for all other transactions because such transactions only move economic resources within the group and are not like those covered by IFRS 3. In response to COVID-19, the IASB Board has made significant changes to its work plan, proposing to extend effective date comment deadlines and project timelines, and taking on new priority projects. Published on: 08 Jul 2008 In July 2008, the Deloitte IFRS Global Office published Business Combinations and Changes in Ownership Interests: A Guide to the Revised IFRS 3 and IAS 27.. KPMG in the UK-IFRS Subject: To help assess whether IFRS 3 Business Combinations is working as intended, the IASB has issued a request for information to constituents. In March 2018, the IASB Board revised its Conceptual Framework. KPMG gives examples and discusses what companies have found most complex about the new revenue standard, and the latest FASB and IASB developments. IFRS Institute Delivering KPMG's guidance, publications and insights on the application of IFRS in the United States. We urge you to take this opportunity to give your feedback on the Board’s DP. IFRS 3 and the IASB’s updated definition of “business” By Melanie Goetz in Regulatory/Compliance , 07.11.2018 It’s not always easy to determine if an acquired set of activities and assets results in a business or only in an asset acquisition. US GAAP requires companies to perform an initial screen test as part of their assessment. Inside front cover Inside back cover In the years after the adoption, however, the Board soon noticed a couple of problems. IFRS 3 Business Combinations outlines the accounting when an acquirer obtains control of a business (e.g. The FASB issued a revised exposure draft, Unlike IFRS Standards, US GAAP does not have a general requirement to recognize onerous contracts. IFRS 3 Business Combinations outlines the accounting when an acquirer obtains control of a business (e.g. Get the latest KPMG thought leadership directly to your individual personalized dashboard. KPMG highlights potential IFRS® Standards accounting and disclosures impacts of COVID-19. there are no other ‘substantive’ changes to the lease. IASB® Board acknowledges the COVID-19 related challenges that stakeholders face in effectively implementing new and amended standards. Our semi-annual outlook is a quick aid to help IFRS Standards preparers in the US keep track of imminent IFRS Standards changes and to assess the relevance to their financial statements. The findings The key finding is that many preparers and auditors – including KPMG – have identified several areas of complexity and ambiguity, especially in the accounting for goodwill and intangible assets, and the value of separating out some intangibles. Unlike IFRS Standards, US GAAP requires, in certain situations, a likelihood assessment at the reporting date as to whether the creditor will accelerate repayment of the debt (e.g. Top 10 differences between interim financial reporting requirements under IAS® 34 and ASC 270. Some investors echoed similar concerns; … of Professional Practice, KPMG US, Managing Director, Dept. Many offer CPE credit. Amendments to IAS 1, Presentation of Financial Statements, clarify that the classification of liabilities as current or noncurrent is based solely on a company’s right to defer settlement at the reporting date. The … IFRS Perspectives - Q3 2020 COVID-19 related rent concessions, onerous contracts, termination benefits and furloughs, and presentation of COVID-19 impacts to the income statement. By purchasing this course you will be enrolled into all 3 parts. We encourage you to closely monitor the FASB’s technical agenda for potential further delays in future standard-setting activities. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. Counting down to transition 1 1 IFRS 17 at a glance 2 1.1 Key facts 2 1.2 Key impacts 4 2 Overview 5 3 When to apply IFRS 17 6 3.1 Scope 6 3.2 Separating components from an insurance contract 20 4 Initial recognition 27 4.1 When to recognise a group of contracts 27 4.2 Insurance acquisition cash flows … The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. * For more information, call 201-505-6062 or email us-kpmglearning@kpmg.com. In addition, the amendments clarify that the acquirer should not recognize a contingent asset at the acquisition date. August 2020 IFRS Perspectives newsletter from KPMG. All rights reserved. Our privacy policy has been updated since the last time you logged in. The content is organized by effective dates: And in On the radar, we explain how the IASB Board and FASB are responding to COVID-19. 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