IASB - Implementation Support

(i) 'Big Four' IFRS Accounting Standards

The following are supporting materials published by the IASB on ‘Big Four’ IFRS Accounting Standards, i.e. IFRS 9, IFRS 15, IFRS 16 and IFRS 17.

(ii) Other IFRS Accounting Standards

Please click here for IASB materials in supporting consistent application of IFRS Accounting Standards. The materials are grouped according to individual IFRS Accounting Standard. 

(iii) Cross cutting materials

IFRS Foundation also produces materials that are relevant to multiple standards. Examples include the effects of climate-related matters on financial statements.

(iv) IFRS Interpretations Committee (IFRIC) Agenda Decisions 

The IFRS Interpretations Committee (Interpretations Committee) works with the IASB in supporting the consistent application of IFRS® Accounting Standards. The Interpretations Committee projects typically begin as an application question submitted for consideration. The Interpretations Committee then decides whether a standard-setting project should be added to the work plan to address the question submitted. The Interpretations Committee may decide not to do so if it concludes that standard-setting would be:

• unnecessary – typically because, in the Interpretations Committee’s view, IFRS Accounting Standards provide an adequate basis for a company to determine its accounting or because there is no evidence that a widespread accounting problem exists; or

• not sufficiently narrow in scope – the question could be resolved only as a part of a larger IASB project (not a narrow-scope project).

To explain why a standard-setting project is not added, the Interpretations Committee publishes an Agenda Decision to report its decision and, in many cases, also include explanatory material that explains how the applicable principles and requirements in IFRS Accounting Standards apply to the transaction or fact pattern described in the Agenda Decision so as to improve the consistency of application of IFRS Accounting Standards.

Agenda Decision (including any explanatory material contained within them) cannot add or change requirements in IFRS Accounting Standards. The explanatory material derives its authority from the IFRS Accounting Standards themselves. Accordingly, an entity is required to apply the applicable IFRS Accounting Standard(s), reflecting the explanatory material in an Agenda Decision (subject to it having sufficient time to implement that accounting).

Explanatory material may provide additional insights that might change an entity’s understanding of the principles and requirements in IFRS Accounting Standards. Because of this, an entity might determine that it needs to change an accounting policy as a result of an Agenda Decision. It is expected that an entity would be entitled to sufficient time to make that determination and implement any necessary accounting policy change (for example, an entity may need to obtain new information or adapt its systems to implement a change).

Determining how much time is sufficient to make an accounting policy change is a matter of judgement that depends on an entity’s particular facts and circumstances. Nonetheless, an entity would be expected to implement any change on a timely basis and, if material, consider whether disclosure related to the change is required by IFRS Accounting Standards. For further information, please refer to the MASB announcement available here.

Entities in Malaysia need to take note that there may be some Agenda Decisions that are case specific to a jurisdiction and hence are not relevant in the Malaysian context, for example “Revenue recognition in a real estate contract (IFRS 15 Revenue from Contracts with Customers)—March 2018”. Therefore, entities in Malaysia applying MFRSs shall assess the relevance of Agenda Decisions vis-à-vis the laws and regulations in Malaysia.

(v) Supporting the application of the IFRS for SMEs Accounting Standard 

The Small and Medium-sized Entities (SME) Implementation Group (SMEIG) works with the IASB to support the international adoption of the IFRS for SMEs Accounting Standard and monitor its implementation.

The SMEIG has two main responsibilities:

(a) To consider questions on the implementation and application of the IFRS for SMEs Accounting Standard, decide which questions merit published educational material based on the criteria set out in paragraphs 20–22 and develop Q&As, which are educational materials, that are publicly available on a timely basis. 

(b) To consider the need to amend the IFRS for SMEs Accounting Standard and make recommendations to the Board on: 

i. issues on the implementation and application of the IFRS for SMEs Accounting Standard that cannot be addressed by Q&As; and  

ii. new and amended IFRS Accounting Standards that have been approved since the IFRS for SMEs Accounting Standard was issued or last amended.

SMEIG non-mandatory guidance published in the form of Q&As to address application issues on the IFRS for SMEs Accounting Standard are as follows: 

All SMEIG Q&As issued prior to the issue of the 2015 amendments to the IFRS for SMEs Accounting Standard were either incorporated in the IFRS for SMEs Accounting Standard as a result of those amendments and/or included in the IASB’s education materials. 

IFRS for SMEs supporting materials

• IFRS for SMEs Accounting Standard modules

• IFRS for SMEs Accounting Standard and IAS 39

• Presentations

(vi) IASB’s Educational Videos 

The IASB has produced a series of short educational videos, including: