New IFRS Accounting Standards effective for financial years 2023 and thereafter

In this issue we outline the effective dates of IFRS Accounting Standards, separately identifying the effective date of each significant amendment made to those standards for financial statements starting 1 January 2023.

Entities should consider these to determine the impact of new pronouncements in accordance with IAS 8 disclosure requirements.

The International Accounting Standards Board (IASB) continuously issues new standards and pronouncements to be considered when preparing financial statements to ensure compliance with International Financial Reporting Standards (IFRS).

It should be noted that the previous reference to IFRS has been amended to IFRS Accounting Standards, which need to be considered when stating the compliance framework.

Entities must apply these amendments from the effective date of the standard and should consider IAS 8 disclosure requirements when stating the impact on its financial statements.

When considering what to disclose and how many details to present, entities

should apply Practice Statement 2, Making Materiality Judgements.

New Pronouncements

Standards/Amendments effective 1 January 2023:
STANDARDNature of changeIssued date
IAS 1

Presentation of Financial Statements

Amendments regarding the disclosure of accounting policies.01/02/2021
IAS 8

Accounting Policies, Changes in Accounting Estimates and

Errors

Amendments regarding the definition of accounting estimates.01/02/2021
IAS 12

Income Taxes1

Amendments regarding deferred tax on leases and decommissioning obligations related to pillar two income taxes.01/05/2021

₁These amendments are also applicable to the IFRS for SME standard

Standards/Amendments effective 1 January 2024:
STANDARDNature of changeIssued date
IAS 1

Presentation of Financial Statements

Classification of liabilities as current or non- current – clarification that liabilities is classified as current or non-current based on the rights in existence at the end of the reporting period. The classification is not affected by the expectation about whether

the entity will exercise its right to defer settlement.

23/01/2020
IAS 1

Presentation of Financial Statements

Amendments regarding the classification of

debt with covenants clarification on how conditions with which an entity must comply

within 12 months affect the classification of a liability.

01/10/2022
IAS 7

Statement of Cash Flows

Amendments   regarding   supplier   finance arrangements disclosures.01/05/2023
IFRS 15

Revenue from Contracts with Customers

Amendments to clarify how a seller-lessee subsequently measures sale and leaseback transactions.01/09/2022
IFRS 7

Financial Instruments: Disclosures

Amendments   regarding   supplier   finance arrangements disclosures.01/05/2023

Although an entity is not required to disclose immaterial impacts and amendments that will have no impact on it, IAS 1.122 requires material judgements that were made in this regard. This means that where an entity concludes that there are no material impact from these amendments, or a standard is not effective, disclosure may still be required due to material judgements in this regard (see IAS 1.25 note E4).

Belinda van der Merwe
Email: belinda.v@nexia-sabt.co.za