We understand the specialized markets in which you operate and provide tailored solutions to meet your unique business needs.
Our comprehensive suite of business services combines industry expertise, market knowledge and professional insights.
MNP is a leading national accounting, tax and business consulting firm in Canada.
Suite 2000, 330 5th Ave. S.W.
Submit an RFP
MNP careers are Different by Design. As an entrepreneurial firm, we truly believe there are no limits to where your career can go.
In May 2019, the International Accounting Standards Board (IASB) published an Exposure Draft (ED) of proposed amendments to IFRS standards as part of its Annual Improvements process. The Annual Improvements process provides a mechanism for dealing with minor amendments to IFRS standards.
A summary of the changes proposed in the 2018-2020 Annual Improvements follows.
First-time Adoption of International Financial Reporting Standards
The ED proposes that a subsidiary, associate or joint venture, who is a first-time adopter later than its parent, and elects to measure its assets and liabilities at carrying amounts based on its parent’s transition date to IFRSs, is required to measure its cumulative translation differences using the amount reported by the parent at the parent’s date of transition to IFRSs.
The proposed amendment will be applicable to first-time adoptions of IFRSs occurring on or after the effective date; an effective date is yet to be decided. It is proposed that previous first-time adopters will not be permitted to apply this amendment. Early application will be permitted.
The proposed amendment clarifies that only the fees paid or received between the borrower and lender, including fees paid on eithers’ behalf, are to be included in the “10% test” when assessing whether to derecognize a financial liability that has been modified or exchanged.
The proposed amendment will be applied prospectively to modifications or exchanges occurring on or after the beginning of the first annual reporting period in which the amendment is first applied; an effective date is yet to be decided. Early application will be permitted.
The ED proposes to remove payments from the lessor relating to leasehold improvements from an illustrative example. The proposed amendment does not change the requirements of IFRS 16.
The IASB proposes to remove the requirements to exclude cash flows for taxation when measuring fair value, aligning the requirements in IAS 41 on fair value measurement with those in IFRS 13
Fair Value Measurement. Specifically, the present value technique must incorporate taxation on a consistent basis (i.e., by discounting after-tax cash flows using an after-tax discount rate or pre-tax cash flows using a pre-tax discount rate).
The proposed amendment will be applied prospectively to fair value measurements occurring on or after the beginning of the first annual reporting period in which the amendment is first applied; an effective date is yet to be decided. Early application will be permitted.
Comments on the ED are requested by the IASB by August 20, 2019.
The full history of this IASB project, including related supporting materials, can be accessed
For more information on the financial reporting library, contact a local
MNP Assurance Professional, or
Jody MacKenzie, Director, Assurance Professional Standards.
This communication contains a general overview of the topic and is current as of June 30, 2019. The application of the principles addressed will depend upon the particular facts and circumstances of each individual case. Accordingly, this publication is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional who can address any variance that may be required to reflect your circumstances. Please contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2019. All rights reserved.
Suite 2000, 330 5th Ave. S.W.
Find an office near me