The Society for Studies and Research in Auditing and Accounting SEIAC, is an institution dedicated to the research and study of different topics in the field of Auditing, Accounting and Taxes, in accordance with current regulations in our country.
Likewise, the SEIAC, thinking that the information presented in the Financial Statements must always be framed in accordance with technical, legal and tax regulations in force within the national territory, is pleased to send you our newsletter with the following content:
What are the latest changes to the IFRS version 2012?
It is very interesting to see how our profession is constantly changing and adapting together to the evolution of business.
Thus, the IASB (= International Accounting Standards Board) on January 1, 2012 approved the IFRS in its 2012 version with certain changes in relation to the previous year's version. These standards were published in their official language (English) in March 2012 and it is expected that the official translation of IFRS 2012 will be issued to the public as of July 2012.
Thus, the SEIAC in this publication wants to present a summary of the main changes that this latest version of the IFRS (= IFRS) brings us.
We consider that to answer the title of this newsletter we will divide this publication into 3 parts, described below:
A. Publication of new Standards
B. New interpretation of IFRS - IFRIC 20
C. Revisions and modifications of 7 standards
A. Publication of new Standards
The new edition of IFRS will jointly include:
IFRS 10 - Consolidated Financial Statements (applicable as of 01/01/2013)
IFRS 11 - Joint Arrangements (applicable from 01/01/2013)
IFRS 12 - Disclosure of interests in other entities (applicable from 01/01/2013)
IFRS 13 - Fair value measurement (applicable as of 01/01/2013) However, in all cases its early application is allowed.
This set of rules was published separately in May 2011.
B. New interpretation of IFRS - IFRIC 20
The IFRS Interpretations Committee issues the:
“IFRIC 20 - Extraction costs in the production phase of an open-pit mine”.
This new interpretation contains 16 paragraphs and has 2 appendices. This interpretation is mainly about:
The recognition and production of the costs of extraction of a property;
The initial measurement of a property's extraction activities; and
The subsequent measurement of the extraction activities of the properties.
C. Revisions and modifications of 7 standards
Thus, for this new game of norm, below we present a summary of changes in 7 norms.
1. IAS 1 - Presentation of Financial Statements
It mainly changes the presentation of the components of the Statement of Comprehensive Income, eliminating the option of presenting the Statement of Income and the Statement of Other Comprehensive Income separately.
2. IAS 12 - Income tax
In this standard, paragraph 77 which said:
“If an entity presents the components of the result in a separate income statement as described in paragraph 81 of IAS 1 Presentation of Financial Statements (revised in 2007), it will present the tax expense (income) related to the result of activities ordinary in that separate state. "
Which coincides with the amendment to IAS 1. Paragraphs 98A (Applying IFRS 11) and 99 are also added, which mentions the elimination of paragraph 77 of IAS 12.
3. IAS 19 - Employee benefits
In this standard, one of the main modifications is the application of IFRS 13 Fair Value Measurement in terms of the measurement of short-term and long-term benefits of employees.
It also establishes the application of this standard retrospectively, in accordance with IAS 8 of Accounting Policies, Changes in accounting estimates and errors.
This rule with these arrangements would take effect as of 01/01/2013, however its early application is recommended.
4. IAS 27 - Separate Financial Statements
It is important to mention that IAS 27 (2011 Version) entitled Consolidated and Separate Financial Statements is radically modified from the application of IFRS 10 Consolidated Financial Statements.
As of this modification, this standard only has 20 paragraphs, and its objective is limited only to the accounting treatment and disclosure of requirements for investments in subsidiaries, joint venture contracts (= Joint contracts) and associations when an entity prepares separate financial statements..
This rule will apply from 2013, however its early application is allowed.
5. IAS 28 - Investments in Associates
This standard changes significantly due to the incorporation of IFRS 10 Consolidated Financial Statements and IFRS 11 of joint arrangements.
The objective of this standard, taking into account the incidence of the aforementioned standards, would be to establish the accounting treatment for investments in associates and establish the requirements for applying the equity method in accounting for investments in associates and shared risk contracts. (Joint Venture).
This rule would apply from 2013, however its early application is also allowed.
6. IFRS 7 - Financial Instruments: Information to be Disclosed
Regarding this standard, one of the most significant changes is the Disclosure of compensation between financial assets and financial liabilities, in the sense that disclosing this information is important for users of the entity's financial statements to evaluate the effect or potential effects of the financial statements. compensation agreements on the financial position of the entity.
7. IFRS 9 - Financial Instruments
The most significant changes in this standard are the application of IFRS 13 Fair Value Measurement and the extension of its application date from 01/01/2015, allowing its early application.
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The content of this newsletter is published for informational purposes only. For the application of the information contained in this bulletin, you should always act with the appropriate professional advice for each particular case.
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