December 2015

Overview

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.

Resource

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

 

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On-line Tax Strategies (December 2015)

ATTENTION: Dealer action required

Effective November 1, 2015, Revenu Québec announced a new position on the application of restricted input tax refunds (ITRs) when a car dealer provides a replacement vehicle to a client and is reimbursed by the manufacturer.

Targeted situations:

  • The dealer makes repairs to a vehicle covered by the manufacturer’s warranty;
  • Under the terms of the manufacturer’s warranty, the client is entitled to a replacement vehicle;
  • The dealer bills the manufacturer for the repair services, including the cost of the replacement vehicle.

 

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November 2015

Overview

The Grant Thornton International IFRS team has published IFRS Viewpoint – Related party loans at below-market interest rates.

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 provides a framework for the initial and subsequent accounting for loans made by an entity to a related party that are
at below-market levels of interest. Common examples of such loans include:

  • Inter-company loans (in the separate or individual financial statements)
  • Employee loans.

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November 2015

Overview

The Grant Thornton International IFRS team has published IFRS Viewpoint – Inventory discounts and rebates.

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 a purchaser accounts for discounts and rebates when buying inventory.