CapitalQuarter: Summer 2024
Read time: 23 mins
Service: Welcome to our Summer 2024 edition of Capital Quarter – the newsletter for listed businesses and their advisors.
In this edition:
IFRS 9 presents users with a comprehensive guide for accounting classes of financial instruments. However, which IFRS 9 impairment conditions apply to company loans? And how do you apply expected credited losses? Furthermore, how should you present related company loans in your financial reports? Calum McChrystal explores the application of this accounting standard and the wider considerations when applying it to company related loans.
The International Sustainability Standards Board (ISSB) issued its first two sustainability standards in June 2023 – IFRS S1 and IFRS S2 – aiming to set a global baseline for information sharing on sustainability-related risks and opportunities for the purposes of investor decision making. Both standards will be effective for annual reporting periods starting on or after 1 January 2024, with the possibility of early adoption. In addition, the UK Government announced in May that it will make endorsed standards available in the first quarter of 2025. Kate Walker shares insight into the newly proposed requirements and reviews the latest climate-related disclosures.
Long-term contracts relate to large-scale projects that will span multiple reporting periods, which could have one or multiple performance obligations across the length of the project and can apply to many service industries. Chad Everitt examines accounting for your long-term contracts under IFRS 15 and details what, as auditors, we need clients to prepare and provide.
We hope you find this edition useful. We are always keen to hear your comments and suggestions for future articles, so please do get in touch.