Standards, interpretations, and amendments issued, but not yet to be applied

IFRSs endorsed by the EU

Proceeds before Intended Use

Jan. 1, 2022

The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Clarification of the definition of the costs of testing. Revenue and cost that relate to items produced that are not an output of the entity’s ordinary activities must be presented separately. Disclosure of the line item in the statement of comprehensive item that includes such revenue.

Provisions, Contingent Liabilities and Contingent Assets

Jan. 1, 2022

Clarification that the cost of fulfilling a contract includes all directly attributable costs. The cost of fulfilling the contract includes both the incremental costs of fulfilling that contract (such as direct wage and material costs) and an allocation of other costs that relate directly to fulfilling contracts. In addition, it is clarified that before a provision for an onerous contract is established, an entity should recognize any impairment loss that has occurred on assets used in (previously: dedicated to) fulfilling the contract.

Annual Improvements to IFRSs 2018-2020 Cycle

Jan. 1, 2022

Revision of specific aspects in IFRS 1, IFRS 9, IFRS 16, and IAS 41

Insurance Contracts

Jan. 1, 2023

IFRS 17 governs the accounting for insurance contracts and replaces IFRS 4.

Insurance Contracts

Jan. 1, 2023

Deferral of first-time application of IFRS 17 to January 1, 2023. The fundamental principles under IFRS 17 remain unaffected. The amendments to the standard, which refer to specific topics, are aimed at helping entities implement the standard and, at the same time, avoiding a significant loss of useful information. The option for companies to delay application of IFRS 9 until the initial application of IFRS 17 has also been extended until January 1, 2023.

IFRSs not yet endorsed by the EU^a

Classification of Liabilities as Current or Non-current

Jan. 1, 2023

Clarification that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period. The amendment also clarifies the definition of settlement of a liability.

Presentation of Financial Statements

Jan. 1, 2023

The amendments to IAS 1 will require entities to disclose their material accounting policies in the future rather than their significant accounting policies. The amendments to IFRS Practice Statement 2 “Making Materiality Judgements” contain guidance on applying materiality judgments to accounting policy disclosures.

Definition of Accounting Estimates

Jan. 1, 2023

Definition of accounting estimates. Clarification of how entities can distinguish between accounting policies and accounting estimates.

Deferred Tax related to Assets and Liabilities arising from a Single Transaction

Jan. 1, 2023

Clarification that deferred tax must be recognized when an entity accounts for transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The amendments clarify in particular the recognition of deferred tax arising from transactions such as leases or restoration/decommissioning obligations.

Initial Application of IFRS 17 and IFRS 9 – Comparative information

Jan. 1, 2023

Supplementary transition option relating to comparatives in the first reporting year, which allows for the option of a different classification pursuant to IFRS 9 (classification overlay) for the comparative periods in the year of first-time application of both standards. Under this option, for each financial asset for which the comparative period has not been adjusted to IFRS 9, the classification underlying the information available at the date of transition may be used. In addition, for financial assets that relate to insurance contracts, existing classification options under IFRS 9 can be exercised again if IFRS 9 was applied prior to the first-time application of IFRS 17.