How Will the New Changes to IFRS Disrupt Your Business?

Many industries will be significantly affected by the new International Financial Reporting Standards (IFRS) changes. These changes have implications for how you communicate with key stakeholders, such as investors and lenders. In the video below, BDO's Marc Priestley and Graham Marjoribanks provide a brief overview of the new standards.

4 Key Takeaways from the Changes to the New IFRS Standards

1. Virtually all industries will need to understand how IFRS 15, Revenue from Contracts with Customers, affects the timing of their revenue recognition. Any potential changes to KPIs reported will need to be communicated to investors to avoid any surprises.
2. Financial services companies may have significantly different results under IFRS 9, Financial Instruments. Any entities with loan portfolios—such as credit unions, banks, and mortgage investment companies—need to address the way they track and monitor information on loan performance as IFRS 9 is linked to credit-risk management to a greater extent than previous standards.
3. IFRS 16, Leases, will result in nearly all leases added to a balance sheet. This will affect key metrics—such as earnings before interest, taxes, depreciation and amortization (EBITDA)—without any fundamental change to the underlying business. Almost all entities will be affected.
4. After more than two decades of research, IFRS 17, Insurance Contracts, transforms financial reporting for insurance companies. Their entire systems will require assessment and modification in order to comply.

To prepare for the new standards, contact us to find out how we can help you focus on your business.

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