New and updated IFRS standards effective for the annual periods beginning on or after 1 January 2024
New and updated IFRS standards effective for the annual periods beginning on or after 1 January 2024
Hopefully our summary would be helpful in preparing your 2024 IFRS financial statements.
New IFRS standards effective for the annual periods beginning on or after 1 January 2024 (*)
| IFRS | Effective date | Brief description | BDO Global resources |
| Classification of Liabilities as Current or Non-current (Amendments to IAS 1) |
1/1/2024 | - Entity's right to defer settlement of a liability for at least twelve months after the reporting period must have substance and must exist at the end of the reporting period. - Classification of a liability is unaffected by the likelyhood that the entity will exercise its right to defer settlement for at least twelve months after the reporting period. - Clarification provided on the meaning of 'settlement' for the purpose of classifying a liability as current or non-current. |
IFRS AS IP - Classification of Loans as current non-current 2024-2025 |
| IFRB 2024/02 Amendments to IAS 1 - Clarification of the Meaning of Settlement in the Classification of Liabilities | |||
| Non-current Liabilities with Covenants (Amendments to IAS 1) |
1/1/2024 | - If an entity's right to defer is subject to the entity complying with specified conditions, such conditions affect whether that right exists at the end of the reporting period, if the entity is required to comply with the condition on or before the end of the reporting period and not if the entity is required to comply with the conditions after the reporting period. | IFRS AS IP - Classification of Loans as current non-current 2024-2025 |
| IFRB 2024/02 Amendments to IAS 1 - Clarification of the Meaning of Settlement in the Classification of Liabilities | |||
| Lease liability in a Sale and Leaseback (Amendments to IFRS 16) |
1/1/2024 | - Requirement for the seller-lessee to determine 'lease payments' or 'revised lease payments' in a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee. | IFRB 2022/05 IASB Issues Amendments to IFRS 16 – Lease liability in a Sale and Leaseback |
| Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7) |
1/1/2024 | - The amendments introduce additional disclosure requirements about an entity's supplier finance arrangements. - The amendments also provide clarification on characteristics of supplier finance arrangements. |
IFRB 2023/05 IASB issues amendments to IAS 7 & IFRS 7 - Supplier finance arrangements |
* Based on BDO Global publication (International Financial Reporting Bulletin 2024/08 - 30 June 2024 Period-end IFRS Accounting Standards Update, IFRB 2024_08)
New standards issued but not yet effective – Standards and Amendments mandatorily effective from 1 January 2025 (*)
| IFRS | Effective date | Brief description | BDO Global resources |
| Lack of Exchangeability (Amendments to IAS 21) |
1/1/2025 | - Requirement to assess when a currency is exchangeable into another currency and when it is not. - The amendments require an entity to estimate the spot exchange rate when it concludes that a currency is not exchangeable into another currency. |
IFRB 2023/08 IASB issues amendments to IAS 21 - Lack of Exchangeability |
| Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) | 1/1/2026 |
- In response to matters that had been raised to IFRS Interpretations Committee as well as matters arose during the post-implementation review of classification and measurement requirements of IFRS 9, the IASB issued Amendments to Classification and Measurement of Financial Instruments. The Amendments address three issues:
|
IFRB-2024_07 IASB issues amendments to the classification and measurement of financial instruments |
| IFRS 18 Presentation and Disclosure in Financial Statements |
1/1/2027 | - Requires new defined subtotals in the statement of profit or loss. - Requires to disclose information about management defined performance measures (MPMs). - Provides companies with principles for grouping information. |
IFRB 2024-04 IASB publishes IFRS 18 Presentation and disclosure in Financial Statements |
| IFRS 19 Subsidiaries without Public Accountability: Disclosures |
1/1/2027 | - IFRS 19 permits some subsidiaries to apply IFRS Accounting Standards with reduced disclosure requirements. - These entities apply the recognition, measurement and presentation requirements in other IFRS Accounting Standards and the disclosure requirements in IFRS 19. |
IASB issues IFRS 19 Subsidiaries without Public Accountability: Disclosures - BDO |
This IFRS publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. This IFRS publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact your respective BDO member firm to discuss these matters in the context of your particular circumstances. Neither BDO IFR Advisory Limited, Brussels Worldwide Services BV, BDO International Limited and/or BDO member firms, nor their respective partners, employees and/or agents accept or assume any liability or duty of care for any loss arising from action taken or not taken by anyone in reliance on the information in this IFRS publication or for any decision based on it.
* Based on BDO Global publication (International Financial Reporting Bulletin 2024/08 - 30 June 2024 Period-end IFRS Accounting Standards Update, IFRB 2024_08)