Changes in this edition

Changes in this edition

This section is a brief guide to the changes since the 2016 edition that are incorporated in
this 2017 edition of IFRS® Standards (the Red Book).

Introduction

This volume includes the latest consolidated versions of all IFRS Standards, together with
the amendments to Standards that have an effective date after 1 January 2017.

Readers seeking only the consolidated text of Standards that are effective on 1 January 2017
should refer to the 2017 edition of IFRS® Standards (the Blue Book).

New requirements since the 2016 Red Book

The 2016 edition of the Red Book contained Standards issued at 13 January 2016 in order to
include IFRS 16 Leases, which was published on that date. The following are the main
changes made since 1 January 2016:

● amendments to the following Standards: IAS 7 Statement of Cash Flows, IAS 12 Income
Taxes, IFRS 15 Revenue from Contracts with Customers, IFRS 2 Share-based Payment, IFRS 4
Insurance Contracts and IAS 40 Investment Property;
● an IFRIC® Interpretation: IFRIC 22 Foreign Currency Transactions and Advance
Consideration; and
● one set of Annual Improvements: Annual Improvements to IFRS® Standards 2014–2016
Cycle.
The following table provides the publication and effective dates of amendments made to the
Standards since the 2016 Red Book was issued. No Standards have been withdrawn.

Standard/Interpretation/ When Effective date Standards

Amendment issued issued (early application amended
is possible, unless
noted otherwise)

Disclosure Initiative January 1 January 2017 IAS 7

(Amendments to IAS 7) 2016

Recognition of Deferred Tax January 1 January 2017 IAS 12

Assets for Unrealised Losses 2016
(Amendments to IAS 12)

Clarifications to IFRS 15 Revenue April 2016 1 January 2018 IFRS 15

from Contracts with Customers

Classification and Measurement of June 2016 1 January 2018 IFRS 2

Share-based Payment
Transactions
(Amendments to IFRS 2)

continued...

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...continued

Standard/Interpretation/ When Effective date Standards

Amendment issued issued (early application amended
is possible, unless
noted otherwise)

Applying IFRS 9 Financial September 1 January 2018 IFRS 4

Instruments with IFRS 4 2016
Insurance Contracts
(Amendments to IFRS 4)

Transfers of Investment Property December 1 January 2018 IAS 40

(Amendments to IAS 40) 2016

Annual Improvements to December

IFRS® Standards 2014–2016 2016
Cycle:
Amendments to IFRS 1 1 January 2018 IFRS 1, IFRS 7,
IFRS 10, IAS 19
Amendments to IFRS 12 1 January 2017 IFRS 12
Amendments to IAS 28 1 January 2018 IAS 28

IFRIC® Interpretation 22 December 1 January 2018 IFRS 1

Foreign Currency Transactions 2016
and Advance Consideration

Earlier application of these amendments and this IFRIC Interpretation are (or were)
permitted except for the annual improvement related to IFRS 1. The annual improvements
to IFRS 1 deleted reliefs that are no longer relevant to first-time adopters of IFRS Standards.

New and revised Standards and Interpretations are available to eIFRS subscribers at:
http://eifrs.ifrs.org/eifrs/PDFArchive?categoryId=71.

The narrative below further explains the amendments listed in the table.

Amendments to Standards issued as separate documents

Disclosure Initiative (Amendments to IAS 7)

The amendments to IAS 7 Statement of Cash Flows made in Disclosure Initiative (Amendments to
IAS 7) respond to investors’ requests for improved disclosures about changes in an entity’s
liabilities arising from financing activities. The amendments require entities to provide
disclosures that enable users of financial statements to evaluate changes in liabilities
arising from financing activities, including both changes arising from cash flows and
non-cash changes.

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 Changes in this edition

Recognition of Deferred Tax Assets for Unrealised Losses

(Amendments to IAS 12)
IAS 12 Income Taxes provides requirements on the recognition and measurement of current
or deferred tax liabilities or assets. The amendments in Recognition of Deferred Tax Assets for
Unrealised Losses (Amendments to IAS 12) clarify the requirements on recognition of deferred
tax assets related to debt instruments measured at fair value.

Clarifications to IFRS 15 Revenue from Contracts with

Customers
The purpose of Clarifications to IFRS 15 Revenue from Contracts with Customers was to clarify the
intentions of the International Accounting Standards Board (the Board) when developing
some of the requirements in IFRS 15.

These amendments do not change the underlying principles of the Standard. They arise as
a result of discussions of the Transition Resource Group. The Transition Resource Group
was set up jointly by the Board and the United States national standard-setter, the Financial
Accounting Standards Board, to assist companies with the implementation of IFRS 15.

The amendments clarify how to:

● identify a performance obligation (the promise to transfer a good or a service to a
customer) in a contract;
● determine whether an entity is a principal (the provider of a good or service) or an
agent (responsible for arranging for the good or service to be provided); and

● determine whether the revenue from granting a licence to an entity’s intellectual

property should be recognised at a point in time or over time.

In addition to clarifications, the amendments include two additional reliefs to reduce cost
and complexity for an entity when it first applies IFRS 15.

Classification and Measurement of Share-based Payment

Transactions (Amendments to IFRS 2)
Classification and Measurement of Share-based Payment Transactions (Amendments to IFRS 2) was
developed through the IFRS Interpretations Committee. The amendments provide
requirements on the accounting for:

● the effects of vesting and non-vesting conditions on the measurement of cash-settled

share-based payments;

● share-based payment transactions with a net settlement feature for withholding tax
obligations; and
● a modification to the terms and conditions of a share-based payment that changes
the classification of the transaction from cash-settled to equity-settled.

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Changes in this edition

Applying IFRS 9 Financial Instruments with IFRS 4 Insurance

Contracts (Amendments to IFRS 4)
Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments to IFRS 4)
addresses concerns arising from the different effective dates of IFRS 9 and the forthcoming
insurance contracts Standard. The amendments introduce two optional approaches:
● a temporary exemption—entities whose activities are predominantly connected with
insurance may choose to continue to apply IAS 39 instead of IFRS 9. This optional
temporary exemption from IFRS 9 is available until 2021.

● an overlay approach—all entities that issue insurance contracts and apply IFRS 9
may choose to reclassify in other comprehensive income, the difference in the
amounts recognised in profit or loss for eligible financial assets between applying
IFRS 9 and applying IAS 39.

Transfers of Investment Property (Amendments to IAS 40)

Transfers of Investment Property (Amendments to IAS 40) clarifies when there is a transfer to or
from investment property.

Annual Improvements

Annual Improvements to IFRS® Standards 2014–2016 Cycle contains three amendments related to
three Standards. The following table shows the topics addressed by these amendments.

Standard Subject of amendment

IFRS 1 First-time Adoption of International Financial Deletion of short-term exemptions

Reporting Standards for first-time adopters.

IFRS 12 Disclosure of Interests in Other Entities Clarification of the scope of the

Standard.

IAS 28 Investments in Associates and Joint Ventures Measuring an associate or joint

venture at fair value.

IFRIC Interpretation

IFRIC® Interpretation 22 Foreign Currency Transactions and Advance Consideration addresses how
to determine the date of the transaction for the purpose of determining the exchange rate
to use on initial recognition of an asset, expense or income (or part of it) when
derecognising a non-monetary asset or non-monetary liability arising from the payment or
receipt of advance consideration in a foreign currency.

Other material that has changed

The Glossary has been revised.

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Minor editorial corrections to Standards (including necessary updating) have been made; a
list of these is available on the website at http://www.ifrs.org/IFRSs/Pages/International-
Accounting-Standards-Board-IASB-Editorial-Corrections.aspx.

The IFRS Foundation Constitution and the IFRS Foundation Due Process Handbook have not been
reproduced in this edition. In earlier editions they were reproduced in Part B. They can be
accessed at:
● http://go.ifrs.org/IFRS-Foundation-Constitution

● http://go.ifrs.org/DPOC

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