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News : New Providence Last Updated: Nov 21, 2017 - 11:35:44 AM


PwC gives detailed technical update on International Reporting Standards (IFRS) 9, 15 &16
By Mieko Smith
Nov 21, 2017 - 8:28:43 AM

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L-R: Technical Update Presenters: Gail Moore, Partner, PwC Jamaica; Tricia-Anne Smith, Director Assurance, PwC Jamaica; Kara Culmer, Assurance Manager, PwC Bahamas and Myra Lundy-Mortimer, Assurance and Risk Assurance Partner, PwC Bahamas

PwC gives eagerly awaited technical update which shows that

IFRS 9, 15 and 16 will not just impact financial institutions
but also the business landscape.

Nassau, Bahamas - PwC in the Bahamas gave a detailed update at BICA’s Accountant’s Week Technical Update on International Financial Reporting Standards (IFRS) 9, 15 and 16 – all of which will impact not only financial institutions but the entire landscape.

In hosting the discussion, entitled "Enhancing our technical competency in New Providence and Grand Bahama" covering IFRS 9, 15 and 16, Myra R. Lundy-Mortimer, Partner, PwC Bahamas, said “These are the common global financial reporting language with major new standards for financial instruments, revenue recognition and leasing present significant challenges to preparers of financial statements. We, at PwC, are here to provide the latest practical application guidance.”

She noted that “While there’ll be a number of decisions and choices to be made at transitioning to IFRS 9, 15 and 16 that there was some good news where some rules with be eased and streamlined but warned that banks and financial institutions will be most affected, and that corporates need to consider the new requirements as well.”

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PwC's Technical Team takes questions from the audience.

Speaking directly about IFRS 9, Gail Moore, Partner, PwC, Jamaica said “It affects more than just financial institutions. Any entity could have significant changes to its financial reporting as the result of this standard, with respect to classification and measurement and the new impairment model. IFRS 9 is based on the concept that financial assets should be classified and measured at fair value, with changes in fair value recognised in profit and loss as they arise, unless restrictive criteria are met for classifying and measuring the asset at either Amortized Cost or Fair Value through other Comprehensive Income”.

Turning her attention to IFRS 15, Moore explained that “IFRS 15 introduces a revenue model in which the core principle is that an entity should recognise revenue to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Almost all entities will be affected to some extent by IFRS 15. The effect on entities will vary depending on industry and current accounting practices.”

In reference to IFRS 16, she said it will fundamentally change the accounting for lease transactions and likely have significant business implications: “Almost all leases will be recognised on the balance sheet, with a right of use asset and financial liability that recognise more expenses in profit or loss during the earlier life of a lease. IFRS 16 moves from a risks and rewards model to one based on right to control the use of an identified asset for a period of time.”

 

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