Financial reporting is undergoing several upcoming changes in
2018. We've summarized the new measures and discuss how they
may impact you.
International Financial Reporting Standards (IFRS)
If you prepare your financial statements using IFRS, there are
two major new standards that have to be applied for fiscal years
commencing on January 1, 2018. All entities will be affected by
these changes to some extent.
There is a new standard on revenue, IFRS 15, which applies to
all contracts with customers except for leases, non-monetary
exchanges, insurance contracts and financial instruments (the
latter has its own standard – see below). The new revenue
recognition model spells out a five step process, with the core
principle that revenue recognized reflects the transfer of promised
goods or services to customers in an amount that reflects the
consideration to which you expect to be entitled. The five steps
appear fairly straight-forward; however, at each step there
