2019 06 New and Proposed Changes to IFRS PDF

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New and Proposed Changes to IFRS Sections for the Two Years Ended June 30, 2019

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New and Proposed Changes to IFRS Sections for the Two Years Ended June 30, 2019 NEW AND AMENDED STANDARDS

DATE ISSUED IASB AcSB December 2018

Framework for Reporting Performance Measures (New)

EFFECTIVE DATE Non-authoritative guidance.

Conceptual Framework for Financial Reporting (Amendment)

March 2018

October 2018

Effective for annual periods beginning on or after 1 January 2020. Earlier application is permitted.

Annual Improvements to IFRSs 2014 – 2016 Cycle (Amendment)

December 2016

March 2017

Effective for annual periods beginning on or after January 1, 2018.

Annual Improvements to IFRSs 2015 – 2017 Cycle (Amendment)

December 2017

April 2018

Effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted.

IFRS 2 Share-based Payment (Amendment)

June 2016

November 2016

Amendment, clarifying how to account for certain types of share-based payment transactions, is effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted.

IFRS 3 Business Combinations (Amendment)

October 2018

December 2018

Effective for transactions for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020. Earlier application is permitted.

IFRS 4 Insurance Contracts (Amendment)

September 2016

January 2017

Amendment to address concerns arising from the implementation of the new IFRS 9 Financial Instruments standard. Effective for annual periods beginning on or after January 1, 2018 or at the time IFRS 9 is implemented.

IFRS 9 Financial Instruments (New)

July 2014

February 2015

Effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted.

October 2017

November 2017

Effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted.

September 2014

November 2014

Effective date for these amendments is deferred indefinitely. Earlier application is still permitted.

IFRS 9 Financial Instruments (Amendments)

IFRS 10 Consolidated Financial Statements and IAS 28 (Revised) Investments in Associates and Joint Ventures (Amendment)

Page 1 This communication contains a general overview of the topic and is current as of June 30, 2019. This information is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional. Contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2019. All rights reserved.

New and Proposed Changes to IFRS Sections for the Two Years Ended June 30, 2019 NEW AND AMENDED STANDARDS

DATE ISSUED IASB AcSB

EFFECTIVE DATE

IFRS 15 Revenue from Contracts with Customers (New)

May 2014

February 2015

Effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted.

IFRS 15 Revenue from Contracts with Customers (Amendment)

April 2016

August 2016

Amendment clarifying some requirements and providing additional transitional relief. Effective the same date as the Standard.

January 2016

June 2016

Effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted for entities that also apply IFRS 15.

May 2017

March 2018

Effective for annual periods beginning on or after January 1, 2021. Earlier application is permitted for entities that also apply IFRS 9 and IFRS 15.

IAS 1 Presentation of Financial Statements (Amendment)

October 2018

February 2019

Effective for annual periods beginning on or after January 1, 2020. Earlier application is permitted.

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

October 2018

February 2019

Effective for annual periods beginning on or after January 1, 2020. Earlier application is permitted.

IAS 19 Employee Benefits (Amendments)

February 2018

April 2018

Effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted.

IAS 28 Investments in Associates and Joint Ventures (Amendments)

October 2017

November 2017

Effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted.

IAS 40 Investment Property (Amendment)

December 2016

March 2017

Effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted.

IFRIC 22 Foreign Currency Transactions and Advance Consideration (New)

December 2016

March 2017

Effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted.

IFRIC 23 Uncertainty over Income Tax Treatments

June 2017

September 2017

Effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted.

IFRS 16 Leases (New)

IFRS 17 Insurance Contracts (New)

Page 2 This communication contains a general overview of the topic and is current as of June 30, 2019. This information is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional. Contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2019. All rights reserved.

New and Proposed Changes to IFRS Sections for the Two Years Ended June 30, 2019

EXPOSURE DRAFTS

DATE ISSUED

EFFECTIVE DATE

Amendments to IFRS 17

June 2019

Proposed to be effective for annual periods beginning on or after January 1, 2022.

Annual Improvements to IFRS Standards 2018 – 2020

May 2019

No date yet specified.

Interest Rate Benchmark Reform (Proposed Amendments to IFRS 9 and IAS 39)

May 2019

Proposed to be effective for annual periods beginning on or after January 1, 2020. Earlier application would be permitted.

Reference to the Conceptual Framework (Proposed Amendments to IFRS 3)

May 2019

No date yet specified.

Onerous Contracts – Cost of Fulfilling a Contract (Proposed Amendments to IAS 37)

December 2018

No date yet specified.

Non-GAAP and Other Financial Measures Disclosure (Proposed National Instrument 52112)

September 2018

No date yet specified.

Accounting Policy Changes (Proposed Amendments to IAS 8)

March 2018

No date yet specified.

Accounting Policies and Accounting Estimates (Proposed Amendments to IAS 8)

September 2017

No date yet specified.

Property, Plant and Equipment – Proceeds before Intended Use (Proposed Amendments to IAS 16)

June 2017

No date yet specified.

Availability of a Refund from a Defined Benefit Plan (IFRIC 14)

June 2015

No date yet specified.

February 2015

No date yet specified.

Classification of Liabilities (Proposed Amendments to IAS 1)

Page 3 This communication contains a general overview of the topic and is current as of June 30, 2019. This information is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional. Contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2019. All rights reserved.

New and Proposed Changes to IFRS Sections for the Two Years Ended June 30, 2019 New and Amended Standards Framework for Reporting Performance Measures (New) In December 2018, the Accounting Standards Board (AcSB) issued the first edition of the Framework for Reporting Performance Measures (the “Framework”). The aim of this Framework is to assist entities in en hancing the transparency, consistency and comparability of financial and non-financial performance measures reported outside the financial statements. A public company, not-for-profit organization, private company or pension plan can apply this Framework to a financial, non-financial or operational performance measure. The key features of this Framework include: ▪ Identification of the characteristics of a high-quality performance measure. ▪ The application of materiality and cost benefit constraints when developing and reporting a performance measure. ▪ A robust process for assessing what performance measure to report, and for developing and reporting relevant performance measures, that includes: (i) Selecting a relevant performance measure that can be faithfully depicted. (ii) Applying materiality and cost benefit constraint considering the type and size of an entity and the complexity of its activities. (iii) Establishing policies, controls and procedures to ensure consistency, comparability, verifiability, timeliness, and understandability. (iv) Reinforcing with governance practices. Application of this Framework is voluntary and it is non-authoritative guidance. Conceptual Framework for Financial Reporting (Amendment) In March 2018, the International Accounting Standards Board (IASB) issued the revised Conceptual Framework for Financial Reporting, incorporated into Part I of the CPA Canada Handbook – Accounting by the Accounting Standards Board (AcSB) in October 2018. This revised Conceptual Framework replaces the previous version of the Conceptual Framework issued in 2010. The Conceptual Framework assists entities in developing accounting policies when no IFRS Standard applies to a particular transaction and helps stakeholders to more broadly and better understand the standards. The revised Conceptual Framework includes the following clarifications and updates: ▪ A new chapter on measurement; ▪ Guidance on reporting financial performance; ▪ Improved definitions and guidance, particularly for the definition of a liability; and, ▪ Clarifications in important areas such as the roles of stewardship, prudence and measurement uncertainty in financial reporting. The revised Conceptual Framework is effective for annual periods beginning on or after January 1, 2020. Earlier application is permitted. Annual Improvements to IFRSs 2014-2016 Cycle (Amendment) In December 2016, the International Accounting Standards Board (IASB) issued a series of amendments to IFRSs , incorporated into Part I of the CPA Canada Handbook – Accounting by the Accounting Standards Board (AcSB) in March 2017, in response to issues addressed during the 2014-2016 cycle. The amendments are summarized below:

Page 4 This communication contains a general overview of the topic and is current as of June 30, 2019. This information is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional. Contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2019. All rights reserved.

New and Proposed Changes to IFRS Sections for the Two Years Ended June 30, 2019 IFRS 1 First-time Adoption of International Financial Reporting Standards Amendments delete the short-term exemptions from the IFRSs contained in Appendix E, as the reliefs provided had been available to entities only for reporting periods that had passed. IAS 28 Investments in Associates and Joint Ventures Amendments clarify that the election to measure at fair value through profit or loss an investment in an associate or joint venture that is held by an entity that is a venture capital organization, or other qualifying entity, is available for each investment in an associate or joint venture on an investment-by-investment basis, upon initial recognition. The amendments above are effective for annual periods beginning on or after January 1, 2018. Annual Improvements to IFRSs 2015 – 2017 Cycle (Amendment) In December 2017, the International Accounting Standards Board (IASB) issued a series of amendments to IFRSs , incorporated into Part I of the CPA Canada Handbook – Accounting by the Accounting Standards Board (AcSB) in April 2018, in response to issues addressed during the 2015-2017 cycle. The amendments are summarized below: IFRS 3 Business Combinations Amendments clarify that an entity remeasures its previously held interest in a joint operation when control of the business is obtained. IFRS 11 Joint Arrangements Amendments clarify that an entity does not remeasure its previously held interest in a joint operation when joint control of the business is obtained. IAS 12 Income Taxes Amendments clarify that an entity must recognise the income tax consequences of dividends when a dividend liability is recognised, and not only in circumstances where income taxes payable or refundable are measured at the tax rate applicable to undistributed profits. IAS 23 Borrowing Costs Amendments clarify that any outstanding borrowing made to obtain a qualifying asset should be treated as general borrowings when the qualifying asset is ready for its intended use or sale. The amendments above are effective for annual periods beginning on or after January 1, 2019. Earlier application is permitted. IFRS 2 Share-based Payment (Amendment) In June 2016, the International Accounting Standards Board (IASB) issued amendments to IFRS 2, incorporated into Part I of the CPA Canada Handbook – Accounting by the Accounting Standards Board (AcSB) in November 2016, to clarify how to account for certain types of share-based payment transactions. The amendments provide requirements on the accounting for: ▪ The effects of vesting and non-vesting conditions on measurement of cash-settled share-based payments; ▪ Share-based payment transactions with a net settlement feature for withholding tax obligations; and ▪ A modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. The amendments are effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted. IFRS 3 Business Combinations (Amendment) In October 2018, the International Accounting Standards Board (IASB) issued amendments to IFRS 3, incorporated into Part I of the CPA Canada Handbook – Accounting by the Accounting Standards Board (AcSB) in December 2018. The amendments clarify the definition of a business, permitting a simplified assessment to determine whether a transaction should be accounted for as a business combination or as an asset acquisition. Page 5 This communication contains a general overview of the topic and is current as of June 30, 2019. This information is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional. Contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2019. All rights reserved.

New and Proposed Changes to IFRS Sections for the Two Years Ended June 30, 2019 The amendments are effective for transactions for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020. Earlier application is permitted. IFRS 4 Insurance Contracts (Amendment) In September 2016, the International Accounting Standards Board (IASB) issued amendments to IFRS 4, incorporated into Part I of the CPA Canada Handbook – Accounting by the Accounting Standards Board (AcSB) in January 2017. The amendments address the concerns created by the implementation of IFRS 9 Financial Instruments before an entity has implemented the replacement Standard being developed for IFRS 4. The amendment provides two voluntary approaches to deal with the transition to IFRS 9: ▪ Overlay approach – provides all entities that issue insurance contracts the choice to recognize, in comprehensive income instead of profit and loss, the volatility that may arise from implementing IFRS 9 before the new insurance contract standard is available. ▪ Deferral approach – provides entities that have activities predominantly connected with insurance the option to temporarily apply an exemption from IFRS 9 (until 2021). In June 2019, the IASB issued an Exposure Draft proposing to extend this temporary exemption expiry date to 2022 to coincide with the proposed amendment to the effective date of IFRS 17. Entities applying this exemption will continue to apply IAS 39 Financial Instruments: Recognition and Measurement. The amendments to IFRS 4 for entities applying the deferral approach are effective for annual periods beginning on or after January 1, 2018. The amendments for entities applying the overlay approach are effective at the time IFRS 9 is implemented. IFRS 9 Financial Instruments (New) In July 2014, the International Accounting Standards Board (IASB) issued the complete and final version of IFRS 9 (2014), which was incorporated into Part I of the CPA Canada Handbook – Accounting by the Accounting Standards Board (AcSB) in February 2015. IFRS 9 (2014) supersedes all previous versions including IFRS 9 (2009), IFRS 9 (2010) and IFRS 9 (2013). This new standard will replace IAS 39 Financial Instruments: Recognition and Measurement, effective for reporting periods beginning on or after January 1, 2018. Earlier application is permitted. The key features of IFRS 9 (2014) are as follows: Classification and measurement ▪ Financial assets are initially measured at fair value plus, in the case of those not subsequently measured at fair value through profit or loss, transaction costs. ▪ Financial assets are classified based on both a “business model” test and a “cash flow characteristics” test into one of three subsequent measurement categories: amortized cost, fair value through other comprehensive income, or fair value through profit or loss. ▪ Investments in equity instruments, including those without a reliably determinable fair value, are classified as at fair value through profit or loss. ▪ However, investments in equity instruments not held for trading may be irrevocably designated as fair value through other comprehensive income with only dividends recognized in profit or loss. ▪ When designating a financial liability at fair value, changes in fair val...