PKF in Eastern Africa
In January 2016 the IASB abolished the need for classification of leases as either finance or operating (for lessees) which previously resulted in assets and obligations related to operating leases being left out of the balance sheet. Other than for short term leases and leases of low value assets, lessees will present all leased assets and obligations on the balance sheet with effect from 1 January 2019.
IFRS 9 and 15 are now a reality, the effective date is 1 January 2018 and if you are a 31 December 2018 IFRS reporter, your financial statements will need to comply with the requirements of these new standards. This brief edition of iNews seeks to remind all reporters of the key requirements of these new standards and their effect on the financial statements. If you have not already addressed these standards, we suggest that you engage your professional advisors immediately to discuss the impact and next steps.
Welcome to another edition of i-News. In this edition, we discuss the proposed changes to the Conceptual Framework, summarise the key changes to the IFRS for SMEs issued in 2015, and discuss the new Revenue Recognition standard – IFRS 15 which is likely to have significant impact to preparers of financial statements. We also have a refresher on the application of deferred tax on fair value measurements.