IFRS Section - Doing Business
You will find here a series of summaries providing an overview of useful IFRS regulations, processes and IFRS issues for Doing Business in Thailand.
IPTF publishes document for discussion on hyperinflationary economies
The International Practices Task Force (IPTF) of the Center for Audit Quality (CAQ) SEC Regulations Committee has again updated its document for discussion identifying countries that are considered to have hyperinflationary economies. Ethiopia, Suriname and Yemen have been added to the list of countries with a three-year cumulative inflation rate exceeding 100%.
FICE project: discussions continue
At its meeting on 20 June 2022, the IASB continued its discussions on the FICE (Financial Instruments with Characteristics of Equity) project, following a request from the IFRS Interpretations Committee. The Board discussed the reclassification of financial instruments issued by an entity from financial liabilities to equity or vice versa, when the substance of the contractual terms changes without a modification to the contract.
Discussions on the equity method
Following the 2015 consultation on its work plan for 2017-2021, the IASB decided to add the equity method to its list of research projects. However, the project did not get going until October 2020, once the PiR of the consolidation standards was almost ready to be launched. In fact, it was only recently that discussions began on identifying problems relating to the application of IAS 28.
Classification of liabilities with covenants: clarification of the scope of the amendment to IAS 1 proposed in November 2021
In November 2021, the International Accounting Standards Board (IASB) published an exposure draft of proposed limited-scope amendments to IAS 1, supplementing the initial exposure draft published in January 2020. The November 2021 amendments focused specifically on how covenants affect the classification of a liability as current or non-current, and the disclosures required on this topic.
ESMA highlights key issues for 2022 interim reporting raised by Russia’s invasion of Ukraine
On 13 May 2022, ESMA published a statement (available here) highlighting key issues raised by Russia’s invasion of Ukraine, which require particular attention when preparing interim financial reporting at 30 June (including both the IFRS financial statements and the management report).