Beyond the GAAP
Keep abreast of news, insights, and standards related to accounting on an international level by downloading our group publication: Beyond The Gaap.
The "Beyond the GAAP" newsletter is published by Mazars in Europe. Its purpose is to keep readers informed of accounting developments in Europe and around the world.
Beyond the GAAP no.139 - December 2019
As the 2019 financial statements are finalised, the first-time application of IFRS 16 will have kept stakeholders on their toes right up to the last minute. This is because the IFRS Interpretations Committee did not officially clarify until 16 December how the term of certain leases should be determined.
Beyond the GAAP no.138 - November 2019
As 2019 draws to a close, we present our usual overview of applicable standards and interpretations, with IFRS 16 – Leases obviously being the key new standard for this year.
With the year-end closure approaching, the IFRS Interpretations Committee has finally confirmed its decision on determining the lease term under IFRS 16 – a topic that has been the subject of much debate – and has rejected the idea of amending the new standard just before its application date.
This so-called “clarification” could have substantive impacts for groups that had previously used a legal approach to determining the lease term. They will be forced to change their estimates.
However, in light of the publication date of the Committee’s decision, and the time needed to implement such changes where necessary, they are presumably not required in the financial statements for 2019. If an entity is unable to make the required changes, it should provide detailed disclosures in the notes, as recommended by the French market regulator (AMF).
We will provide a more detailed account of the Committee’s final agenda decision in our next issue.
With the year-end closure approaching, the IFRS Interpretations Committee has finally confirmed its decision on determining the lease term under IFRS 16 – a topic that has been the subject of much debate – and has rejected the idea of amending the new standard just before its application date.
This so-called “clarification” could have substantive impacts for groups that had previously used a legal approach to determining the lease term. They will be forced to change their estimates.
However, in light of the publication date of the Committee’s decision, and the time needed to implement such changes where necessary, they are presumably not required in the financial statements for 2019. If an entity is unable to make the required changes, it should provide detailed disclosures in the notes, as recommended by the French market regulator (AMF).
We will provide a more detailed account of the Committee’s final agenda decision in our next issue.
Beyond the GAAP no.137 - October 2019
As the end of the year approaches, we’ve reached the time when European enforcers publish their recommendations for year-end financial reporting. Unsurprisingly, the key recommendations from ESMA and the AMF (the French market regulator) focus on IFRS 16 – Leases, IFRS 15 – Revenue from Contracts with Customers, and IFRS 9 – Financial Instruments. In this issue, we review the topics highlighted by the enforcers in their published recommendations.
Beyond the GAAP no.136 - September 2019
September saw the publication of two long-awaited decisions by the IFRS Interpretations Committee (IFRS IC). One related to determination of the lessee’s incremental borrowing rate when applying IFRS 16, and the other to the classification and presentation of liabilities or assets related to uncertain tax positions. This therefore seemed the ideal time to present our study of information on the impacts of initial application of IFRIC 23 presented by a sample of French and European issuers (CAC 40 and Euro Stoxx 50) in their IFRS interim financial statements to 30 June 2019.
Beyond the GAAP no.135 - July August 2019
Following the summer break, IAS 12 – Income Taxes and IFRS 17 – Insurance Contracts are in the spotlight, with consultations on both from the IASB as well as a detailed Public Statement from ESMA, the European enforcer, on the former.