IFRS outlook: Insights on International GAAP® - Ernst & Young - Global

www.ey.com/ifrs | Past issues of IFRS Outlook 

Our views on the Reporting Entity project

As part of a joint project to improve their conceptual frameworks for financial reporting, the IASB and the US FASB have published an Exposure Draft (ED) on the Reporting Entity project. Learn about our views on the proposed description of reporting entity and the ability to apply the description in the preparation of consolidated financial statements, combined financial statements and parent-only financial statements.

Refer to our Supplement to IFRS outlook issue 68: Proposals to Describe the Reporting Entity  for a more in-depth look at the proposals in the ED.

Fair value option for financial liabilities — does the proposed change reduce or retain complexity?

The IASB issued an ED on the classification and measurement of financial liabilities. With two exceptions, the proposals largely retain the existing requirements in IAS 39 Financial Instruments: Recognition and Measurement for financial liabilities.

Read about our concerns over the proposals in the ED and, on a broader context, the next steps on the joint IASB and FASB project on financial instruments.

Proposal for accounting for insurance contracts

The IASB has issued their ED on IFRS 4 Insurance Contracts. If adopted, the ED will replace the current standard with the intention of creating a single consistent recognition and measurement standard for insurance contracts internationally.

For more information on the key components of the ED refer to our Insurance Accounting Alert Special Edition: Proposal for Accounting for Insurance Contracts.