February 2016


The Grant Thornton International IFRS team has published IFRS Viewpoint – Classification of loans with covenants.

The IFRS Viewpoint series provides insights on applying IFRS in challenging situations. Each edition will focus on an area where the Standards have proved difficult to apply or lack guidance.

This edition considers how the existence of covenants can impact the presentation of debt on the balance sheet.


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January 2016

Executive Summary

On January 13, 2016 the IASB released IFRS 16 Leases, completing its long-running project on lease accounting. IFRS 16 will require lessees to account for leases “onbalance sheet’’ by recognizing a “right-ofuse” asset and a lease liability.

IFRS 16 also:

  • changes the definition of a lease;
  • sets requirements on how to account for the asset and liability, including complexities such as non-lease elements, variable lease payments and option periods;
  • provides exemptions for short-term leases and leases of low-value assets;
  • changes the accounting for sale and leaseback arrangements;
  • largely retains the IAS 17 Leases approach to lessor accounting;
  • introduces new disclosure requirements.

The Standard is effective for annual periods beginning on or after January 1, 2019, with early application permitted in certain circumstances.


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December 2015

Flash bulletins provide a summary of the most recent news and publications from standard setters on accounting standards for private enterprises (ASPE), not-for-profit organizations (NFPO) and pension plans. International Financial Reporting Standards (IFRS) are not covered by the Flash bulletins, but we issue IFRS Newsletters, dedicated exclusively to new IFRS developments, and Adviser Alerts on specific topics of importance.

This publication is intended to inform readers about recent changes in accounting; however, it cannot deal with all topics. Readers are always encouraged to refer to the original publications mentioned in the articles before making any décisions.

To view this publication, click on the “Download” button on the right.

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December 2015


The Grant Thornton International Ltd IFRS Team has published Get ready for IFRS 9 – Classifying and measuring financial instruments, the first issue in a series of publications intended to help you prepare for IFRS 9 (2014) Financial Instruments.

IFRS 9 (2014) fundamentally rewrites the accounting rules for financial instruments. While IFRS 9’s mandatory effective date of January 1, 2018 may seem a long way off, companies really need to start evaluating the impact of the new Standard now. As well as the impact on reported results, many businesses will need to collect and analyze additional data and implement changes to systems.

The first issue in the series of publications has been written to assist companies in understanding the requirements for classifying and measuring financial instruments under IFRS 9 and to provide practical insights related to these requirements. This edition includes the following sections:

  •  Overview of classification and measurement requirements;
  •  The business model test;
  •  Contractual cash flows characteristics test;
  •  Classification and measurement;
  •  Classification of financial liabilities; and
  •  Practical insight – next steps.


The publication Get ready for IFRS 9 – Classifying and measuring financial instruments follows this Adviser alert.