Stay Smart – Recording of our Financial Reporting Webcast

On Thursday, June, 15, we gave you the opportunity to find out about and discuss important changes in financial reporting and compact form. Besides that, you had the great opportunity to interact live with peers and PwC’s specialists what made the interaction very lively and dynamic.

This year’s spring programme took the form of a one hour webcast including a Q & A session, accompanied by a live chat throughout. During this webcast, we had a focus on the upcoming interim reports and also at the areas of focus recently published by the SIX exchange regulation. You were updated on the latest developments and trends in pension accounting, including risk sharing. Furthermore, we also shared insights on the implementation of the new revenue and leasing standards.

Access the Recording

Topics

Contacts

David Mason
Assurance Partner
+ 41 58 792 94 90
david.mason@ch.pwc.com

David Baur
Assurance Director
+41 58 792 26 54
david.baur@ch.pwc.com

IFRS News July 2017

Our latest IFRS News contains some information about
IFRIC 23, the leases lab, demistifying IFRS 9 for corporates, IFRIC rejections and more.

IFRIC 23 – Putting some certainty into uncertain tax positions.

Ernesto Mendez highlights the key elements of IFRIC 23, the new Interpretation on uncertain tax treatments.

IFRS News IFRS News – July 2017

The Leases Lab

IFRS 16 brings significant changes to accounting for lessees, but what about lessors? Can Professor Lee Singh help you solve the disclosure Problem? Let’s experiment!

IFRS News – July 2017

Scene 4, Take 1: Demistifying IFRS 9 for corporates: Factoring and business model

Holger Meurer, Financial Instruments expert, explains how Factoring can affect the measurement of receivables.

IFRS News – July 2017

IFRIC Rejections Supplement – IAS 37

Looking for an answer? Maybe it was already addressed by the experts. Joanna Demetriou investigates.

IFRS News – July 2017

The IFRS 15 Mole

PwC revenue specialist Ruth Preedy investigates how to account for licenses under IFRS 15 with the help of the Mole.

Suspects: A licence Arrangement establishes a customer’s rights to an entity’s intellectual property (IP) and the entity’s obligations to provide those rights. Common licenses include patents, software, motion picture and trademarks.
Incident description: Management should assess whether the contract includes a license that is distinct and therefore treated as a separate performance obligation.

IFRS News – July 2017

Cannon Street Press

  • Definition of a business
  • IAS 8 –  Accounting policy changes resulting from IC agenda decisions
  • Rate regulated

IFRS News – July 2017

Read the latest issue on IFRS News from June 2017

Read more

In brief – A look at current
financial reporting issues

  • SEC announces policy changes designed
    to facilitate capital formation:

    PwC In brief US2017-20
    Read more
  • GASB issues new lease accounting rules:
    PwC In brief US2017-19
    Read more
  • FASB proposal would amend related party consolidation guidance for VIEs:
    PwC In brief US2017-18
    Read more

 

A look at current financial reporting issues

IFRS 17 marks a new epoch for insurance contract accounting

In May 2017, the International Accounting Standards Board (IASB) issued IFRS 17, ‘Insurance Contracts’, and thereby started a new epoch of accounting for insurers. Whereas the current standard, IFRS 4, allows insurers to use their local GAAP, IFRS 17 defines clear and consistent rules that will significantly increase the comparability of financial statements. For insurers, the transition to IFRS 17 will have an impact on financial statements and on key performance indicators.

Under IFRS 17, the general model requires entities to measure an insurance contract at initial recognition at the total of the fulfilment cash flows (comprising the estimated future cash flows, an adjustment to reflect the time value of money and an explicit risk adjustment for non-financial risk) and the contractual service margin. The fulfilment cash flows are remeasured on a current basis each reporting period. The unearned profit (contractual service margin) is recognised over the coverage period.

Aside from this general model, the standard provides, as a simplification, the premium allocation approach. This simplified approach is applicable for certain types of contract, including those with a coverage period of one year or less.

For insurance contracts with direct participation features, the variable fee approach applies. The variable fee approach is a variation on the general model. When applying the variable fee approach, the entity’s share of the fair value changes of the underlying items is included in the contractual service margin. As a consequence, the fair value changes are not recognised in profit or loss in the period in which they occur but over the remaining life of the contract.

The new standard is applicable for annual periods beginning on or after 1 January 2021. Early application is permitted for entities that apply IFRS 9, ‘Financial Instruments’, and IFRS 15, ‘Revenue from Contracts with Customers’, at or before the date of initial application of IFRS 17. The standard can be applied retrospectively in accordance with IAS 8, but it also contains a ‘modified retrospective approach’ and a ‘fair value approach’ for transition depending on the availability of data.

Read the full report on IFRS 17


Contact:

Immy Pandor
Assurance Partner
Tel. +41 58 792 48 78
immy.pandor@ch.pwc.com

IFRS News June 2017

Our latest IFRS News contains some information about
IFRS 17, the leases lab, demistifying IFRS 9 for corporates, IFRIC rejections and more.

20 years in the making: IFRS 17 has
finally been issued.

Gail Tucker, Global Insurance Accounting leader, walks through the main elements of the new standards.

Read more

The Leases Lab

IFRS 16 brings significant changes to accounting for lessees, but what about lessors? Can Professor Lee Singh and his assistant Derek Carmichael help you separate the truth from the fiction? Let’s experiment!

Read more

Scene 3, Take 1: Demistifying IFRS 9 for corporates: Good news for
financial liabilities

Nitassha Somai, Financial Instruments expert, works through one of the biggest impacts of IFRS 9 on corporates.

Read more

IFRIC Rejections Supplement – IAS 36

Paul Shepherd of Accounting Consulting Services examines the practical implications of IFRIC rejections (NIFRICs) related to IAS 36.

Read more

The IFRS 15 Mole

PwC revenue specialists investigate how to account for warranties under IFRS 15.

Suspects: Warranties – are they distinct?
Incident description: Sellers often provide customers with warranties, a type of guarantee that the seller will replace or repair a product that becomes defective within a particular time period. The nature and terms of such agreements vary across entities, industries, products and/or contracts.

Read more

Cannon Street Press

  • IFRIC Interpretation Ratification
  • Amendments to IAS 28 – Long-term interests in associates and joint ventures
  • Research projects: Goodwill and impairment

Read more

Read the latest issue on IFRS News from May 2017

Read more

In brief – A look at current
financial reporting issues

  • FASB to permit adoption of new hedging guidance
    at issuance, expected in Q3:

    PwC In brief US2017-17
    Read more
  • PCAOB issues proposals on auditing estimates
    and using specialists:
    PwC In brief US2017-16
    Read more
  • PCAOB adopts new standard enhancing
    auditor reporting:
    PwC In brief US2017-15
    Read more

 

IFRS News May 2017

Our latest IFRS News contains some information about
solving carve-outs, IFRS 8 ED, demistifying IFRS 9 for corporates,
IFRIC rejections, the leases lab and more.

Solving the mystery of carve-out
financial statements

Rich Jones, divestment specialist, explains what carve-out financial statements are and what they may be used for.

Read more

The Leases Lab

The lease term is key when calculating the lease liability. Professor Lee Singh and his assistant Holger Meurer explore how to determine the lease term. Let’s experiment!

Read more

Proposed tweak to IFRS 8,
Operating Segments

Joanna Demetriou provides the latest from the standard setter – the IFRS 8 Exposure Draft.

Read more

Scene 2, Take 1: Demistifying IFRS 9 for Corporates: Intra-Group loans

Nitassha Somai, Financial instruments expert, works through one of the biggest impacts of IFRS 9 on corporates – Intragroup loans.

Read more

IFRIC Rejections Supplement – IAS 34

Looking for an answer? Maybe it was already addressed by the experts.

Read more

The IFRS 15 Mole

PwC revenue specialists and the IFRS 15 Mole investigate how to identify a principal or an agent in a revenue transaction.

Suspects: Accounting for variable consideration.
Incident description: It can be difficult to determine revenue when the amount of consideration due from a customer is dependent on the outcome of a future event. Examples include:

  • contracts with early completion bonuses in the construction industry or;
  • volume related discounts or rebates.

Read more

Cannon Street Press

  • Definition of a business exposure draft (ED)
  • Fees included in the ’10 per cent’ test
  • Amendments to IAS 19 and IFRIC 14
  • Amendments to IFRS 3 and IFRS 11 – previously held interests in joint operations

Read more

Read the latest issue on IFRS News from April 2017

Read more

In brief – A look at current
financial reporting issues

  • FASB clarifies share-based payment
    modification guidance:

    PwC In brief US2017-13
    Read more
  • FASB changes made to premium
    amortization period on callable
    debt securities:
    PwC In brief US2017-12
    Read more
  • Brexit – income tax accounting
    implications:
    PwC In brief US2017-11
    Read more

 

 

 

Live PwC IFRS 17 webcast

IFRS 17 is coming – Why should you care about it?

In May 2017, the IASB will be finalising its long-standing project on insurance accounting and publish IFRS 17.

As an insurer, you will need to apply IFRS 17 for annual periods beginning on or after 1 January 2021. IFRS 17 will fundamentally change the accounting for all entities that issue insurance contracts and investment contracts with discretionary participation features.

Join our live webcast on IFRS 17, ‘Insurance Contracts’, on 31 May 2017 when we’ll be joined by Darrell Scott, an IASB board member. During the webcast you’ll get:

  • An overview of the accounting requirements
  • Practical issues that your organisation should consider in relation to IFRS 17
  • Expected implementation challenges

Webcast details

Date: Wednesday 31 May 2017

Time: 11:00 (GMT + 01:00)

 

Registration

You will receive a link to join the webcast from Alex Bertolotti, our Global IFRS Insurance Leader, nearer the time.

Contact

Patrick Maeder
Partner – FS Advisory
PwC Switzerland
+41 58 792 4590
maeder.patrick@ch.pwc.com

IFRS News April 2017

Our latest IFRS News contains some information about
uncertainty in income tax accounting, demistifying IFRS 9, the leases lab, the IFRS 15 mole and more.

Article 50 triggers uncertainty in income tax accounting

John Chan, IAS 12 specialist, explains the deferred tax implications of article 50.

Read more

Demystifying IFRS 9

IFRS 9 expected credit loss model 2. Emma Edelshein, Financial Instruments Director, explains more on expected credit losses in IFRS 9

Read more

The Leases Lab

IFRS 16 contains new guidance on separating lease components from other lease components to be considered by both lessees and lessors. Can Professor Lee Singh and his assistant Derek Carmichael help you separate the truth from the fiction? Let’s Experiment!

Read more

Scene 1, Take 1: Demistifying IFRS 9 for Corporates

Nitassha Somai, Financial instruments expert takes us through the first in the series of demystifying IFRS 9 for corporates.

Read more

The IFRS 15 Mole

PwC revenue specialists and the IFRS 15 Mole investigate how to identify a principal or an agent in a revenue transaction

Suspects: Accounting as principal or as agent
Incident description: There are many arrangements in which two or more unrelated parties are involved in providing a specified good or Service to a customer. IFRS 15 requires an entity to determine whether it is the principal or the agent.

Read more

Cannon Street Press

  • Board’s Primary Financial Statement Project
  • The Conceptual Framework for Financial Reporting
  • Financial Instruments with Characteristics of Equity

Read more

IFRIC Rejections Supplement – IAS 32

Helen Wise of Accounting Consulting Services examines the practical implications of IC rejections related to IAS 32.

Read more

Read the latest issue on IFRS News from March 2017

Read more

In brief – A look at current
financial reporting issues

  • FASB Changes made to premium amortization period on callable debt securities:
    PwC In brief US2017-12
    Read more
  • Brexit – income tax accounting implications:
    PwC In brief US2017-11
    Read more
  • FASB proposal would align the accounting for all share-based payment awards:
    PwC In brief US2017-10
    Read more

Enhanced auditor’s report: towards trust and transparency

The new auditor’s report required by Swiss legislation is designed to be more informative and insightful, and give the stakeholders of reporting entities greater assurance. We at PwC welcome the new reporting requirements as an opportunity to unlock the ‘black box ’of what we actually do as auditors and increase trust in our role.

We also realise, though, that the new reports and their potential impact on governance have to be discussed and understood – not only by the auditors who produce them, but by reporting entities and their stakeholders, from shareholders to regulators. For this reason we’ve produced a short flyer explaining the major changes and their implications, including a commented overview of the structure of the new report.

You can read the flyer via the link below. Feel free to contact us if you’d like to discuss the new auditor’s report and its implications in more detail.

Download flyer

 

IFRS News February 2017

Our latest IFRS News provides new year’s resolutions every company should take on board, presents the five stages of grief concerning
IFRS 17, current IC rejections and the PwC leases lab.

New year’s resolutions every company should take on board

Elana Du Plessis, PwC Senior Manager, shares the new year’s resolutions all companies should consider.

Read more

Demystifying IFRS 9

Incorporating forward looking information is a big change under IFRS 9. Nitassha Somai, Financial instruments specialist, looks into her crystal ball to make some predictions!

Read more

The five stages of grief

Irina Sedelnikova, PwC Insurance specialist, explains how to work
towards accepting IFRS 17.

Read more

IC rejections

Joanna Demetriou of Accounting Consulting Services examines the
practical implications of IFRIC rejections related to IAS 28.

Read more

IFRS 15 Mole

The IFRS 15 mole is back and has a new case! Katie Woods, PwC revenue specialist, is helping him get to the bottom of accounting for free gifts!

Suspects: Accounting for free gifts
Incident description: Performance obligations (POs) are promises to a customer that arise every time they enter a contract to supply a good or service.
Once the contract has been identified, the next step is to identify the POs. The ‘incidents’ start when not all of the POs are identified resulting in the incorrect measurement of revenue or recognition in the wrong period.

Read more

Cannon Street Press

  • Post Implementation Review of IFRS 13, Fair Value
  • Insurance
  • Conceptual Framework
  • IFRS 9 – Symmetric Prepayment options

Read more

The PwC leases lab

IFRS 16 gives rise to many challenges, so Professor Lee Singh starts a new experiment – this time with his assistant Dr Holger Meurer.

Read more

In brief – A look at current
financial reporting issues

  • FASB simplifies measurement of goodwill     impairment:
    PwC In brief US2017-05
    Read more
  • NFP consolidation: FASB clarifies how to
    evaluate limited partnerships:
    PwC In brief US2017-04
    Read more
  • FASB proposes new inventory disclosures: PwC In brief US2017-03
    Read more

Illustrative Financial Statements of Private Equity Fund holding an Investment Entity subsidiary

This publication provides illustrative disclosures which are considered best practice disclosures to be made by an Investment Entity (as a result of the Investment Entities Applying the Consolidation Exception: Amendments to IFRS 10 – Consolidated Financial Statements, IFRS 12 – Disclosure of Interests in Other Entities and IAS 28 – Investments in Associates and Joint Ventures) (the “Amendments”) which has a controlled subsidiary, that itself meets the definition of an “Investment Entity”, and which had previously consolidated that subsidiary.

 

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