Update - Publication ‘Dutch GAAP versus IFRS’: similarities and differences

IFRS developments

After a period of significant changes in financial reporting under IFRS, including the implementation of the reporting standards IFRS 9, IFRS 15 and IFRS 16, we expect there will be a period of calm 

the coming years. The International Accounting Standards Board (IASB) is currently working on 
the content of a request for information as part of the 2020 Agenda Consultation. The primary objective of this consultation is to seek public comments on: 

• The strategic direction and balance of the IASB’s activities
• The criteria for assessing the priority of financial reporting issues that may be added to the work plan
• The financial reporting issues that should be given priority 

As a consequence of the coronavirus pandemic the IASB has decided to postpone the publication of the request for information to 2021. Based on the feedback to be received the IASB will decide on the content of the work plan.

Dutch GAAP developments

Dutch GAAP was already a more stable set of standards. Before 2005 the DASB had a strategy to implement changes to IFRS into its own standards. But the strategy of the DASB changed around 2005 as a consequence of the introduction of IFRS regulation in Europe, including the Netherlands. Since 2005 the strategy of the DASB is to focus on financial reporting standards for non-listed entities, while the IASB focusses with IFRS on entities which have public accountability. Based on this difference we expect that many of the current differences will not be eliminated in the future.

One example is the accounting for leases by lessees. The DASB decided not to require the recognition of operating leases on the balance sheet as required under IFRS. Another example is the accounting for revenue. The DASB has decided not to integrate all the provisions of IFRS 15 ‘Revenue from contracts with customers’ into the Dutch Accounting Standard. The current provisions on revenue recognition will stay in place and guidance regarding specific areas has been added. Examples of these areas are performance obligations, variable consideration and licensing.

We refer to the publication of the new accounting standards on revenue by the DASB on 23 December 2020 (RJ-Uiting 2020-15). An entity shall apply these new standards for annual periods beginning on or after 1 January 2022. Earlier application is permitted. 

Mazars can help you

We can assist you converting to IFRS (or Dutch GAAP). We can also provide technical advice on other accounting issues, as well as training courses on Dutch GAAP and IFRS.