Ernst - International GAAP 2017: Generally Accepted Accounting Principles Under International Financial Reporting Standards

This edition first published in 2017 by John Wiley & Sons Ltd.

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International GAAP 2017 has been fully revised and updated in order to:

• Include a new chapter on the new leases standard IFRS 16 (Leases). This is a joint standard issued by the IASB and FASB which is likely to affect all entities in all industries, and will result in more assets and liabilities being recognised on the Statement of Financial Position.
• Explore the implementation issues arising as entities plan for the future adoption of IFRS 9 (Financial Instruments) and IFRS 15 (Revenue from Contracts with Customers), including those referred to the IFRS Transition Resource Group for Impairment of Financial Instruments and the Joint Transition Resource Group for Revenue Recognition.
• Address amended standards and new interpretations issued since the preparation of the 2016 edition.
• Explain the many other initiatives that are currently being discussed by the IASB and by the IFRS Interpretations Committee and the potential consequential changes to accounting requirements. In particular, projects on insurance contracts, and the conceptual framework for financial reporting may all result in significant changes to current accounting practice.
• Provide insight on the many issues relating to the practical application of IFRS, based on the extensive experience of the book's authors in dealing with recent day-to-day issues.

The book is published in three volumes. The 54 chapters listed on pages ix to xi are split between the three volumes as follows:

• Volume 1 Chapters 1 to 23,
• Volume 2 Chapters 24 to 41,
• Volume 3 Chapters 42 to 55.

Each chapter includes a detailed list of contents and list of illustrative examples.

Each of the three volumes contains the following indexes covering all three volumes:

• an index of extracts from financial statements,
• an index of references to standards and interpretations,
• a general index.

The IASB reported earlier this year that 122 of the 147 jurisdictions they have researched require the use of IFRS for all or most listed companies and financial institutions, and a further 13 jurisdictions permit the use of IFRS. Several large economies like China, India and Japan do not require IFRS for all or most of their listed companies, but they have made considerable progress to move towards or to converge with IFRS. While it is unlikely that the United States will adopt IFRS in the near term, there are more than 500 foreign IFRS reporters with a significant market capitalisation listed on US markets and many US investors are familiar with IFRS-based financial statements. Global financial reporting is now in a position where there are essentially only two global-scale systems of financial reporting IFRS and US GAAP.

In 2016, the IASB completed its project on lease accounting and made considerable efforts to provide implementation and adoption support regarding the new revenue recognition and financial instruments standards.

The publication of IFRS 16 Leases, which is effective from 1 January 2019 onwards, marks the completion of the IASB's long-running project on lease accounting. The main objective of the new standard to bring most lease obligations that are currently not recognised, on to the balance sheet is converged with the FASB's objective. However, certain requirements for the recognition, measurement, presentation and disclosure of leases by lessees and lessors differ. IFRS 16 is more complex than its predecessor, IAS 17 Leases, and is giving rise to implementation questions that the IASB will need to address in a timely manner.

IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers, which are effective from 1 January 2018, introduce important improvements and fill major gaps in the existing literature. The joint IASB/FASB transition resource group for revenue recognition (TRG) and the IASB's transition resource group for impairment of financial instruments have provided valuable forums for identifying interpretation questions that inevitably arise when entities implement complex accounting standards. In April 2016, the IASB published amendments that improve the guidance in IFRS 15 and address some issues that the TRG discussed. These amendments and the many interpretations and emerging practices regarding the new standards have been included in this edition of