IFRS Insight

IFRS 9 — Financial Instruments

  • Significant impact on the financial services sector, leading to fundamental changes in calculation models to support accounting procedures

  • The accrual of the expected impairment of loans obviously demotivates the financial services sector to support the economy through business lending

  • Exclusively waive the requirements of recalculation of comparative data, but do not apply to the relevant standards

  • Weakening of hedge accounting rules that motivate the use of a hedging tool to stabilize the future incomes of a articular core business

IFRS 10 — Consolidated Financial Statements

  • Just> 50% of shares cannot determine whether to use the full consolidation method

  • Conditions: 1. Power Over Investee 2. Examine the right to variable returns 3. Ability to use power to impact ROI

  • Transforming data to address different accounting policies and practices, eliminate all intragroup transactions

  • Not only an IFRS 10 solution, but also an extension to eliminate unnecessary manual entry of IFRS 7, 9, 11 and 12

IFRS 11 — Joint Arrangements

  • Any changes in business cooperation with business partners in the form of a substance or form that require your further consideration


  • Invest in efforts to clearly understand the differences between accounting, legal and business terms in relation to interconnection agreements


  • Proportional method Increased complexity although IFRS 11 does not require this to account for joint operations at the consolidation level


  • From determining the share of each account balance at a single % at a consolidation level to a different % to assets, liabilities and income at the company level

IFRS 12 — Disclosure of Interests in Other Entities

  • Requirement to disclose your judgments and assumptions regarding the definition of types of organizations belonging to your consolidation group


  • Managing the disclosure matrix for subsidiaries, joint agreements, associates and two types of structured organisations


  • Not only to combine disclosure requirements for interests in other enterprises into a single IFRS, but also for non-consolidation enterprises

  • Expanding a double-entry group consolidation system to integrate integrated information management for each entity

IFRS 13 — Fair Value Measurement

  • The history of the “accounting war” between reliability and relevance, IFRS 13 “Reaffirming the winner – the relevance of the information”

  • Fair value “relevance” penetrates various standards for more than a decade and ultimately merges into an authoritative standard

  • Obviously, providing a more complex hierarchy of fair value and valuation techniques based on the relevance of information

  • Systematic registration and classification of transactions at the planning stage to effectively implement the winner’s rules

14 — Regulatory Deferral Accounts

  • Applies to regulated rate entities that limit the pricing set by regulators or governments

  • Development as a standard with a limited scope of action to provide an optional short-term solution for these organizations that work with IFRS for the first time

  • The involvement of manual works in relation to the classification and disclosure of movement groups of the respective balances for the reporting period

  • It does not seem to be relevant to existing IFRS preparers, but signals multidimensional accounting that challenges your handicraft practice

IFRS 15 Impacts on Revenue from Contracts with Customers

  • Comprehensive guide to recognising revenue from contracts that deeply affect most businesses

  • Applying a five-step model to determine the distribution of a recognised amount of income over periods and accounts

  • Different industry sectors facing different levels of exposure; different model determinants

  • Not only to analyse the impact of various types of contracts, but also to automate all relevant accounts

IFRS 16 — Leases

  • Off-balance sheet finance for leasing these become assets and liabilities on the balance sheet, prompting you to create many account codes

  • Your existing incentive plan policy motivates you to maintain two sets of measurement rules for monthly closing

  • Significantly increases the complexity of your spreadsheet models if your ERP cannot adapt these changes

  • Quickly replace tenant rent using depreciation and effective interest formula for automating vouchers

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