IFR Bulletin 2019/01
07 April 2019
BDO Global - Audit & Assurance provides its clients and business partners with news on development in the field of international financial reporting through the IFR Bulletins - one of BDO's regular publications, focusing on the latest IFRIC interpretations, exposure drafts and amendments of existing standards. Another interesting topic of IFR Bulletins is the interpretations of The European Securities and Markets Authority (ESMA) reports focusing on accounting and financial reporting.
The first issue of IFR Bulletin of 2019 deals with the interaction between the IFRS 3 Business Combinations and the following three standards which are effective from 1. 1. 2018 or 1. 1. 2019:
- IFRS 9 Financial Instruments,
- IFRS 15 Revenue from contract with customers,
- IFRS 16 Leases.
The regulation of financial reporting for the above mentioned area is rather complex. IFRS 3 add to this complexity by introducing its own requirements for valuation of the net identified assets acquired in the business combination. The interaction of IFRS 3 requirement for recognition of acquired net identified assets and the requirements of IFRS 9, IFRS 15 and IFRS 16 may cause several issues, especially in intra-group reporting for consolidation purposes. This IFR Bulletin points out the most prominent issues that the preparers of the financial statements should to be aware of.
Please speak to your BDO contact if you would like to discuss any aspects of the publication or contact the BDO Audit office for further information.
Archive of all published IFR Bulletins is available from BDO’s Global website: https://www.bdo.global/en-gb/services/audit-assurance/ifrs/ifr-bulletins