1. IFRS Update for 31 December 2013 year ends
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МСФО и интегрированная отчетность: настоящее и будущее
Update for 31 December 2013 year ends

2. • New, amended, and revised standards effective for
periods ending 31 December 2013
• New, amended, and revised standards effective for
periods beginning on or after 1 January 2014
• Status of IASB projects
Overview
Update for 31 December 2013 year ends
IFRS Update for 31 December 2013 year ends
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3. New, amended, and revised standards effective
for periods ending 31 December 2013

4. New, amended, and revised standards
Reporting periods beginning on after 1 July 2012
Amendments
i. Presentation of Items of Other Comprehensive Income (IAS 1)
IFRS Update for 31 December 2013 year ends
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5. New, amended, and revised standards (31 Dec 2013)
i. Presentation of Items of Other Comprehensive Income (1/2)
• Amendment to IAS 1 Presentation of Financial Statements
• Amends the presentation of OCI - now split into two categories (by nature):
1) Those that could subsequently be reclassified to profit or loss
(reclassification adjustments)
- Foreign currency translation differences
- Revaluation of Financial assets classified as Available for Sale.
2) Those that that will not be reclassified
- Revaluation of property, plant and equipment
- Remeasurement of net defined benefit
IFRS Update for 31 December 2013 year ends
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6. New, amended, and revised standards (31 Dec 2013)
i. Presentation of Items of Other Comprehensive Income (2/2)
Title of the statement
• Change to ‘Statement of profit or loss and other comprehensive income’
(however flexibility to use other names remains in IAS 1)
Presentation of items of OCI before or net of tax
• Option to present items of OCI before or net of tax remains
• If presenting before tax, tax is required to be allocated and disclosed
separately for each of the two OCI groups
IFRS Update for 31 December 2013 year ends
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7. New, amended, and revised standards
Reporting periods beginning on after 1 January 2013
Consolidation suite (new and revised)
ii. IFRS 10 Consolidated Financial Statements
IFRS 11 Joint Arrangements
IFRS 12 Disclosure of Interests in Other Entities
IAS 27(R) Separate Financial Statements
IAS 28(R) Investments in Associates and Joint Ventures
New Standards
iii. IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
IFRS Update for 31 December 2013 year ends
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8. New, amended, and revised standards
Reporting periods beginning on after 1 January 2013
Amendments
iv. Employee Benefits (IAS 19)
v. Government loans (IFRS 1)
vi. Offsetting Financial Assets and Financial Liabilities (IFRS 7)
vii. Annual Improvements to IFRSs 2009-2011 Cycle
IFRS Update for 31 December 2013 year ends
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9. New, amended, and revised standards (31 Dec 2013)
ii. Consolidation suite - Consolidated Financial Statements (1/5)
• New standard IFRS 10 Consolidated Financial Statements
• High level summary:
- Replaces IAS 27 Consolidated and Separate Financial Statements and SIC-12
Consolidation – Special Purposes Entities
- Introduces a single control model (power, variable returns, linkage), that is the
sole basis for consolidation
- Requires potential voting rights to be substantive
- Specifically includes guidance relating to:
 De-facto control
 Agency relationships
 Silos (i.e. ring-fenced assets and liabilities
IFRS Update for 31 December 2013 year ends
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10. New, amended, and revised standards (31 Dec 2013)
ii. Consolidation suite - Joint Arrangements (2/5)
• New standard IFRS 11 Joint Arrangements
• High level summary:
- Replaces IAS 31 Interests in Joint Ventures
- Uses the same control model as IFRS 10
- Only two categories of joint arrangement
- Option for proportionate consolidation removed (only equity method)
- Structure of the arrangement no longer the principal factor in determining the
accounting approach – must consider other facts and circumstances
- Joint de-facto control (via IFRS 10)
IFRS Update for 31 December 2013 year ends
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11. New, amended, and revised standards (31 Dec 2013)
ii. Consolidation suite - Disclosure of Interests in Other Entities (3/5)
• New standard IFRS 12 Disclosure of Interests in Other Entities
• High level summary:
- All disclosure requirements relating to subsidiaries, joint arrangements, associates,
and any other interest held in another entity are solely within IFRS 12.
- Disclosures aim to help a user to understand:
1) The nature of, and risks associated with, its interests in other entities
(whether these are subsidiaries, joint operations, joint ventures, associates
or interests in structured entities that are not consolidated)
2) The effects of those interests on the reporting entity’s financial position,
financial performance and cash flows.
IFRS Update for 31 December 2013 year ends
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12. New, amended, and revised standards (31 Dec 2013)
ii. Consolidation suite - Separate Financial Statements (4/5)
• Revised standard IAS 27 Separate Financial Statements
• High level summary:
- Deals only with the requirements of separate financial statements
- Previous consolidation requirements moved to IFRS 10 and IFRS 12
- Disclosure requirements related to separate financial statements previously in IAS
28 and IAS 31 moved to IAS 27(R)
- Expanded disclosure - principal place of business.
IFRS Update for 31 December 2013 year ends
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13. New, amended, and revised standards (31 Dec 2013)
ii. Consolidation suite - Investments in Associates and Joint Ventures (5/5)
• Revised standard IAS 28 Investments in Associates and Joint Ventures
• High level summary:
- Most requirements have been carried forward unchanged
- Accounting for joint ventures now included
IFRS Update for 31 December 2013 year ends
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14. New, amended, and revised standards (31 Dec 2013)
iii. Stripping Costs in the Production Phase of a Surface Mine (1/2)
• IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
• Entities in surface mining may find it necessary to remove (‘strip’) mine
waste materials (‘overburden’) to gain access to mineral ore deposits
• In the development phase before production these costs are capitalised
• In the production phase, diversity in practice existed
• IFRIC 20 clarifies that in the production phase of a surface mine:
- Overburden that can be used to build up inventory is accounted for under IAS 2
- Other overburden, that provides access to deeper levels of material that will be
mined in future periods, is recognised as a non-current asset subject to certain
criteria being met.
• Effective for annual periods beginning on/after 1 January 2013, with earlier
application permitted
IFRS Update for 31 December 2013 year ends
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15. New, amended, and revised standards (31 Dec 2013)
iii. Stripping Costs in the Production Phase of a Surface Mine (2/2)
• Criteria to recognise ‘stripping activity asset’:
- It is probable that the future economic benefit (improved access to the ore body)
associated with the stripping activity will flow to the entity
- The entity can identify the component of the ore body for which access has been
improved
- The costs relating to the stripping activity associated with that component can be
measured reliably.
• The stripping activity asset is not recognised separately - added to an existing
asset (tangible or intangible).
IFRS Update for 31 December 2013 year ends
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16. New, amended, and revised standards (31 Dec 2013)
iv. Employee benefits (1/2)
• Amendment to IAS 19 Employee Benefits
• Main changes to defined benefit plans (DBP) include:
- Elimination of the ‘corridor’ approach for deferring gains/losses
- Actuarial gains/losses to be recognised in OCI rather than in P&L (and cannot be
reclassified in subsequent periods).
• Other changes include:
- Subtle amendments to timing for recognition of termination benefits.
- Employee benefits expected to be settled (vs. due to settled) wholly within 12
months after the end of the reporting period are short-term benefits, all others are
non-current (and will require discounting)
• Effective for annual periods beginning on/after 1 January 2013, with earlier
application permitted
IFRS Update for 31 December 2013 year ends
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17. New, amended, and revised standards (31 Dec 2013)
iv. Employee benefits (2/2)
Impacts for entities with DBP
• Full recognition of actuarial gains through OCI and a decrease in the net defined
benefit plan deficit
• Immediate recognition of past service cost in profit or loss and an increase in the net
defined benefit plan deficit
• Reversal through OCI of the difference in the gain arising in the expected rate of
return on defined benefit plan assets and the discount rate.
Impacts for all entities
• Reassessment of measurement and presentation of all employee benefits (particularly
annual leave balances) – will vary entity-by-entity
IFRS Update for 31 December 2013 year ends
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18. New, amended, and revised standards (31 Dec 2013)
v. Government loans (1/1)
• Amendment to IFRS 1 First-Time Adoption of IFRS
• Applies to first time adopter that had received a government loan at a below-
market rate
• Difference between the proceeds received and the fair value of the loan is
recognised prospectively
• Already incorporated in IAS 20
• Retrospective application is permitted if fair value information was available
when loan was granted
• Effective for annual periods beginning on/after 1 January 2013, with earlier
application permitted
IFRS Update for 31 December 2013 year ends
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19. New, amended, and revised standards (31 Dec 2013)
vi. Offsetting Financial Assets and Financial Liabilities (1/2)
• Amendments to IFRS 7 Financial Instruments: Disclosure and IAS 32 Financial
Instruments: Presentation
• Amendment clarifies that right of set-off:
a) Must not be contingent on a future event
b) Must be legally enforceable in all of the following circumstances
i. The normal course of business
ii. The event of default
iii. The event of insolvency or bankruptcy of the entity and all counterparties.
• Effective date
- Disclosures (IFRS 7): Annual periods beginning on or after 1 January 2013
and interim periods within those annual periods (early adoption permitted).
- Presentation (IAS 32): Annual periods beginning on or after 1 January 2014
(early adoption permitted)
IFRS Update for 31 December 2013 year ends
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20. New, amended, and revised standards (31 Dec 2013)
vi. Offsetting Financial Assets and Financial Liabilities (2/2)
• New disclosure requirements (in a tabular format):
a) The gross amounts of those recognised financial assets and liabilities
b) The amounts that are set off when determining the net amounts presented in the
statement of financial position;
c) The net amounts presented in the statement of financial position;
d) The amounts subject to an enforceable master netting arrangement or similar
agreement that are not otherwise included in paragraph b), including:
i. amounts related to recognised financial instruments that do not meet some
or all of the offsetting criteria; and
ii. Amounts related to financial collateral (including cash collateral); and
e) The net amount after deducting the amounts in d) from the amounts in c) above.
IFRS Update for 31 December 2013 year ends
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21. New, amended, and revised standards (31 Dec 2013)
• vii(a) Repeat application of IFRS 1 (IFRS 1)
• vii(b) Borrowing costs (IFRS 1)
• vii(c) Clarification of requirements for comparative information (IAS 1)
• vii(d) Classification of servicing equipment (IAS 16)
• vii(e) Tax effect of distribution to holders of equity instruments (IAS 32)
• vii(f) Interim financial reporting and segment information for total
assets and liabilities
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IFRS Update for 31 December 2012 year ends
vii. Annual Improvements 2009-2011 Cycle

22. New, amended, and revised standards effective
for periods beginning on or after 1 January 2014

23. New, amended, and revised standards
Reporting periods beginning on after 1 January 2014
Amendments
i. Investment Entities (IFRS 10)
ii. Offsetting Financial Assets and Financial Liabilities (IAS 32 requirements)
- Refer to previous section (vi)
New Standards
iii. IFRS 9
IFRS Update for 31 December 2013 year ends
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24. New, amended, and revised standards (31 Dec 2013)
i. Investment Entities (1/1)
• Amendment to IFRS 10 Consolidated financial Statements
• Effective for periods on/after 1 January 2014 (early adoption permitted)
• Note: Not yet EU endorsed
• High level summary:
- Prohibits consolidation accounting for Investment Entities, instead use FVTPL
- Must meet three criteria
- There are also four characteristics to assess – additional disclosures required if any
not met but the entity considers the definition to still be met
IFRS Update for 31 December 2013 year ends
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25. Status of IASB projects

26. IASB Work Plan (1/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Financial Crisis related projects
Classification & measurement
(Limited amendments)
Redeliberations
Impairment (comment period
ended 5 July 2013)
Redeliberations
General hedge accounting Target IFRS
Macro hedge accounting Target DP
IFRS Update for 31 December 2013 year ends
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27. IASB Work Plan (2/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Previous Memorandum of Understanding projects
Leases (comment period ends
13 September 2013)
Redeliberations
Revenue recognition Target IFRS
IFRS Update for 31 December 2013 year ends
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28. IASB Work Plan (3/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Other Significant Projects
Insurance contracts
(comment period ends 25
October 2013)
Redeliberations
Rate-regulated Activities
- Interim IFRS (comment
period ends 4 September
2013)
Redeliberatio
ns
Rate-regulated Activities
- Comprehensive project
Target DP
IFRS Update for 31 December 2013 year ends
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29. IASB Work Plan (4/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Narrow-scope amendments
Acquisition of an Interest in a
Joint Operation (IFRS 11)
Target IFRS
Actuarial Assumptions: Discount
Rate (IAS 19)
Target ED
Annual Improvements 2010–2012 Target IFRS
Annual Improvements 2011–2013 Target IFRS
Annual Improvements 2012–2014 Target ED
IFRS Update for 31 December 2013 year ends
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30. IASB Work Plan (5/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Narrow-scope amendments (Cont’d)
Bearer Plants – amendments to IAS
41 (comment period ends 28
October 2013)
Redeliberati
ons
Clarification of Acceptable
Methods of Depreciation and
Amortisation (IAS 16, IAS 38)
Target IFRS
Defined Benefit Plans: Employee
Contributions (IAS 19)
Target IFRS
Disclosure Requirements about
Assessment of Going Concern
(IAS 1)
Target ED
IFRS Update for 31 December 2013 year ends
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31. IASB Work Plan (6/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Narrow-scope amendments (Cont’d)
Equity Method: Share of Other Net
Asset Changes (IAS 28)
Target IFRS
Fair Value Measurement: Unit of
Account (IFRS 13)
Target ED
Put Options Written on Non-
controlling Interests (IAS 32)
Target ED
IFRS Update for 31 December 2013 year ends
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32. IASB Work Plan (7/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Narrow-scope amendments (Cont’d)
Recognition of Deferred Tax Assets
for Unrealised Losses (IAS12)
Target ED
Sale or Contribution of Assets
between an Investor and its
Associate or Joint Venture
(IFRS10 and IAS28)
Target IFRS
Separate Financial Statements
(Equity Method) (IAS27)
Target ED
IFRS Update for 31 December 2013 year ends
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33. IASB Work Plan (8/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Post-implementation reviews
IFRS 8 Operating Segments Published
Report on 18
July 2013
IFRS 3 Business Combinations Publish
Request for
Information
IFRS Update for 31 December 2013 year ends
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34. IASB Work Plan (9/9)
As at 29 July 2013
2013
Q3
2013
Q4
2014
Q1
2014
Q2
Conceptual Framework
Conceptual Framework chapters
• Elements of financial
statements
• Measurement
• Reporting entity
• Presentation and disclosure
(comment period ends 14
January 2014)
Redeliberatio
ns
Disclosures: Discussion Forum
• Feedback statement
published 28 May 2013
To double check
IFRS Update for 31 December 2013 year ends
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35. IFRS Update for 31 December 2013 year ends
ar endsPage 35
МСФО и интегрированная отчетность: настоящее и будущее
Update for 31 December 2013 year ends