In view of the chemical sector's international character, reporting under International Financial Reporting Standards (IFRS) is ubiquitous. Nevertheless, this international standard for financial reporting is often perceived as being complex.
We can assist you if you are faced with special transactions, such as a takeover, for the purposes of which an understanding of IFRS is important. We will also look into the consequences of new IFRS standards for your organisation for you. Three recent standards in particular will require your attention and preparation: IFRS 15 Revenue from Contracts with Customers, IFRS 16 Leases and IFRS 9 Financial Instruments.
IFRS 15 will shift revenue recognition to a control model, with a focus on identifying discrete supply obligations. Turnover will be accounted for at the point in time at which discrete supply obligations are met. IFRS 15 will come into force from 2018.
IFRS 16 will have an impact on virtually all businesses. The classification of operational leases will be done away with for lessees, as a result of which the assets and related obligation will be presented on the balance sheet. IFRS 16 will come into force from 2019.
IFRS 9 will bring about a radical change in reporting financial instruments. Although financial institutions will be the parties most affected, this standard could also be of significance to your business. Exceptional write-downs will be calculated on the basis of the expected loss model, rules for hedge accounting are being made more flexible, and there are fewer financial asset categories. IFRS 9 will come into force from 2018.
We would be happy to advise you on IFRS within your organisation from the perspective of our knowledge and practical experience in the sector. Keen to find out more? Feel free to get in touch with us for a no-obligation chat, or read more about IFRS.
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