Cartagena Spanish Presentation Materials

Lunes 23 y martes 24 de noviembre 2015
Cartagena, Colombia
Documentacin Conferencia
2015
El INCP y la Fundacin IFRS
Conferencia IFRS de las Americas
Amricas
Conferencia IFRS de las
&
Lunes 23 y martes 24 de noviembre 2015 - Cartagena, Colombia

Conferencia de da y medio para altos ejecutivos financieros y dems partes interesadas
Da 1 - Lunes 23 de noviembre 2015
Taller pre-Conferencia
Fundacin IFRS: Sesiones de inters especial

Maana del 23 de noviembre 2015 - Cartagena, Colombia
Da 2 - Martes 24 de noviembre de 2015
Agenda de la Conferencia Da 2
09:00
Temas de transicin NIIF

Amaro Gomes, Miembro, IASB
Conferencistas:
- Darrel Scott, Miembros, IASB
- Felipe Jnica, Socio, EY
- Wilmar Franco Franco, Presidente,
Consejo Tcnico de la Contadura Pblica
- Jorge Gil, Presidente del GLENIF
Taller-Valor razonable y otros temas de medicin

Para mejorar el entendimiento de las mediciones bajo NIIF, la Fundacin
IFRS realizar un taller interactivo de medio da inmediatamente anterior
a la conferencia IFRS en la maana del 23 de noviembre de 2015
09:00
Registro
09:30
Introduccin
Amaro Gomes, Miembro, IASB
09:35
Visin general de las mediciones NIIF

Mike Wells, Director, Iniciativa de Educacin IFRS, IASB
10:15
Mediciones histricas basadas en el costo

Ricardo Vsquez Bernal, Socio, Bakertilly Colombia
10:55
Valor razonable
Carlos Amador, Gerente Senior,
Aseguramiento Financiero, Deloitte
11 :35
Sesin de preguntas y respuestas

Todos los expositores del taller
Cierre de sesin
12:00
Agenda de la Conferencia
12:00
Registro
Bu et y bebidas
13:30
Bienvenida
Hugo Ospina, Presidente INCP
13:45
El futuro de la informacin nanciera

Hans Hoogervorst, Presidente IASB
14:1 0
Discurso de apertura 1
Jorge Castao Gutirrez, Superintendente
Superintendencia Financiera de Colombia
14:25
Pedro Luis Bohrquez Ramrez, Contador General
Contadura General de la Nacin
14:40
Juan Antonio Duque, Superintendente Delegado
de Asuntos Econmicos y Contables,
Superintendencia de Sociedades
14:55
Actualizacin IASB
- NIIF principales
- Implementacin
- Proyectos de investigacin
Expositores: Miembros IASB - Amaro Gomes
15:30
Co ee break
16:00 - 18:00
Sesiones paralelas: Implementacin de las nuevas NIIF

Escoger 1 opcin entre:
1. Implementacin de la NIIF 9 Instrumentos Financieros:

instituciones nancieras
- Darrel Scott, Miembro, IASB
- Joao Santos, Director de Poltica Contable, Amrica Latina, HSBC
- Rafael Rodrguez, Socio, KPMG
- Jorge Humberto Hernndez, Director de Contabilidad Grupo
Bancolombia
2. Implementacin de la NIIF 9 Instrumentos Financieros:
diferentes a instituciones nancieras
- Stephen Cooper, Miembro, IASB
- Experto de implementacin 1 CFO/CAO
- Javier Enciso, Socio, PwC
3. Implementacin de la NIIF 15 Ingresos por contratos con clientes
- Amaro Gomes, Miembro, IASB
- Antonio Coronet, ex CAO de Telefnica
- Ivn Urrea, Socio, EY
4. Implementacin por primera vez de las NIIF para PYMES
- Mike Wells, Director, Iniciativa de Educacin IFRS, IASB
- Luis A. Chvez, SMEIG (Ecuador)
- Claudio Daz, Socio, KPMG
18:0019:00 Recepcin - Cocktail
10:30
Co ee break
11:00
Sesiones paralelas: Requerimientos NIIF actuales y posteriores

Escoger 1 opcin entre
1. Contratos de seguros
- Experto en implementacin 1 CFO/CAO
- Lionel Moure, Socio, Deloitte Argentina
2. Arrendamientos
- Experto en implementacin 1 CFO/CAO
- Juan Colina, Socio, PwC
3 . Aplicacin de la jerarqua de la NIC 8: incluyendo combinaciones
de negocios bajo control comn
- Oscar Rubio, Chief Accounting Officer Cementos Argos S. A.
- Richard Martin, Director, Informacion corporativa, ACCA
4 . Panel de discusin: tema regulatorio NIIF
( esta sesin es exclusivamente para reguladores de NIIF)
- Mauricio Espaol Len, Coordinador Grupo de Regulacin e
Investigacin Contable Supersociedades
- Daniel Sarmiento, Consejero Consejo Tcnico de la Contadura Pblica
12:30
Almuerzo
14 :00
Sesiones paralelas: Proyectos del IASB y miembros de temas regulatorios

Escoger 1 opcin entre:
1 . Actividades reguladas por tasas y esquemas de intercambio

2. Instrumentos nancieros con caractersticas de patrimonio
3 . Marco Conceptual
4 . NIIF para PYMES
- Luis A. Chvez, SMEIG (Ecuador)
15:30
Final de la conferencia
El INCP y de la Fundacin IFRS
Conferencia IFRS
Cartagena, Colombia
Bienvenida
HUGO F. OSPINA
Presidente
INCP
Conferencia IFRS
Cartagena, Colombia
El futuro de la informacin financiera
HANS HOOGERVORST
Presidente
IASB
Conferencia IFRS
Cartagena, Colombia
JORGE CASTAO GUTIRREZ

Superintendente
Conferencia IFRS
Cartagena, Colombia
PEDRO LUIS BOHRQUEZ RAMREZ

Contador General
Contadura General de la Nacin
Conferencia IFRS
Cartagena, Colombia
JUAN ANTONIO DUQUE

Superintendente Delegado de Asuntos Econmicos y Contables
Superintendencia de Sociedades
Conferencia IFRS
Cartagena, Colombia
Actualizacin IASB
AMARO GOMES
Miembro
IASB
International Financial Reporting Standards
IASB update
Amaro Gomes, IASB Board Member
November 2015
The views expressed in this presentation are those of the presenter,

not necessarily those of the IASB or IFRS Foundation.
Major projects
Insurance contracts
Objective to provide a single principle-based Standard that

would increase comparability and transparency of entities
that issue insurance contracts.
Timelines:
IASB issued revised Exposure Draft in June 2013.
Redeliberations started in March 2014 and expected to
conclude in 2015
Final Standard is expected during 2016.
So far, the IASB has completed its discussions on the model for
insurance contracts without participation features, and is now
finalising for the application to the general model to contracts with
participation features.
IFRS 4 / 9 interaction
Objective to avoid additional and temporary volatility

arising from applying IFRS 9 in conjunction with IFRS 4
Background: The IASB is in the process of finalising its
insurance contracts Standard which will set out how to
measure and report insurance contracts liabilities. The
forthcoming changes will likely not be effective before 2020.
Some suggest that the effective date of IFRS 9 should be
deferred for insurers and aligned with the effective date of
the forthcoming insurance contracts Standard.
Exposure Draft of amendments to IFRS 4 expected Q4 2015
2012 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
IFRS 4 / 9 interaction
Flexibility of both IAS
39* and IFRS 4**
results in little volatility
in profit or loss
Interaction of IFRS 9
and IFRS 4 may result
in increased volatility in
profit or loss
Effective date of IFRS 9

1 January 2018
IAS 39 + IFRS 4
Interaction of IFRS 9 and

the new insurance
contracts Standard
assists in reducing that
volatility in profit or loss
Effective date of the new

insurance contracts Standard
not before 2020?
IFRS 9 + IFRS 4
IFRS 9 + new
insurance contracts
Standard
*IAS 39 Financial Instruments: Recognition and Measurement is pre-IFRS 9

**IFRS 4 Insurance Contracts sets out the current accounting requirements
for insurance contracts
IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Proposed changes to IFRS 4

Concern
How IASB proposes to address concerns
Temporary effects Confirm existing flexibility in IFRS 4

of applying IFRS 9 Overlay approach: IFRS 9 applied by all entities, but P&L
in conjunction with
adjusted to remove volatility for some assets available to
IFRS 4 (existing
all entities that issue insurance contracts
insurance
Deferral approach: available to entities that predominantly
contracts
issue contracts within the scope of IFRS 4 until 2021
Standard)
Effects of applying Transition relief so entities can reassess classifications for
IFRS 9 in
financial assets under IFRS 9 when there is a change in
conjunction with
the accounting for insurance contracts
the new insurance
contracts Standard
Leases
Status: IASB has completed decision-making (except

effective date)
Main decisions:
Lessee:
All leases on-balance sheet 1

Interest and amortisation presented separately in
income statement
Lessor: Little change to existing lessor accounting
Next steps: Publication of final standard expected before end

of 2015
With the exception of short-term leases and leases of low-value assets
Leases: Comparison to US GAAP
Where we are aligned

Recognition of leases on-balance sheet
Lease definition
Liability measurement1
Little change to lessor accounting
Main difference
Recognition and presentation of some lease expenses and
cash flows
1
Lease liabilities are measured in the same way under IFRS and US
GAAP except that inflation-linked payments are reassessed when
those payments change under IFRS, but are not under US GAAP
Dynamic risk management

Discussion
Paper
Public
consultation
April 2014
Comment letter
analysis
October 2014
IASB
redeliberations
Began Q2 2015
Outreach activitiesAdditional input from:

Users, preparers, accounting firms, local
standard-setters and regulators.
Comment letter analysis
DRM - Feedback received
10
GeneralThe DP captured well the key characteristics of dynamic risk management (DRM). It
identified well the challenges in accounting for open portfolios. There is a need to:
(a) address the limitation of the current hedge accounting requirements when applied to DRM
scenarios;
(b) provide clarity in the information provided in the financial statement about DRM activities.
UsersGenerally support the project. They are interested in information about:
(a) Net interest income (NII) broken down by profit source (customer margin and the effect of
DRM activities);
(b) Derivatives by use (ie trading vs risk management);
(c) Hedged and unhedged interest rate risk exposures.
Users expressed concerns over behaviouralisation because of the high level of judgement
required which could leave room for earnings management.
PreparersTypically their preference is for a hedging solution for the purposes of managing
volatility in profit or loss arising from accounting mismatches between assets and liabilities
(amortised cost) and derivatives (FVTPL) by accepting certain aspects of DRM such as the use
of demand deposits on a behaviouralised basis.
DRM - Redeliberations
11
IASB redeliberations
In May 2015 the IASB discussed the next steps of the project. The IASB tentatively
decided to:
-
first consider how the information needs of constituents concerning DRM

activities could be addressed through disclosures before considering areas that need
to be addressed through recognition and measurement; and
prioritise the consideration of interest rate risk and consider other risks at a later
stage in the project.
The project will not be a disclosures-only project. The objective is to produce a

comprehensive solution that would include recognition, measurement and disclosure
requirements.
In July 2015 the IASB decided that the project should remain in the Research
Programme, with the aim of publishing a second Discussion Paper.
At the July meeting, the IASB also discussed the completeness and appropriateness of
the process for identifying information needs of constituents relating to dynamic risk
management activities for interest rate risk.
Rate-regulated activities
12
IFRS today has no comprehensive standard for rate-regulated activities

Interim relief for first-time adopters
of IFRS
January 2014issued IFRS 14
Regulatory Deferral Accounts.
Permits grandfathering of
previous GAAP accounting
practices for recognition,
measurement, impairment and
derecognition.
Enhanced presentation and
disclosure matters.
Effective date is 1 January 2016;
early application is permitted.
Current project
Discussion Paper published
September 2014.
Support for recognising at least
some regulatory deferral account
balances, focusing on defined
rate regulation.
Currently developing an
accounting model using a
revenue-based approach to
propose within a further
Discussion Paper (expected
2016).
Unlikely to align with US GAAP.
Conceptual Framework

not necessarily those of the IASB or IFRS Foundation
What is the Conceptual Framework?
14
It is a practical tool that assists:

the IASB to develop Standards
preparers to develop consistent accounting policies
others to understand and interpret IFRS
It underpins the decisions made by the IASB when setting Standards

It will affect future Standards developed by the IASB
It addresses fundamental issues:

What is the objective of financial reporting?
What makes financial information useful?
What are assets, liabilities, equity, income and expenses, when should they be
recognised and how should they be measured, presented and disclosed?
It is not a Standard and does not override Standards
Why are we revising the Conceptual Framework?
15
The existing Conceptual Framework has proved useful but some

improvements are needed
Gaps
Unclear
Out of date
For example, it provides

very little guidance on
measurement or
presentation and
disclosure.
For example, it is unclear

what role measurement
uncertainty should play
in decisions about
recognition and
measurement.
For example, the existing

guidance on when
assets and liabilities
should be recognised is
out of date.
Identified as a priority project by respondents to the IASBs 2011

Agenda Consultation
History of the Conceptual Framework
16
1989 Framework
2010 Framework
Objective
Objective
Objective
Qualitative
characteristics
Qualitative
characteristics
Qualitative
characteristics
Elements
Elements
Elements
Elements
Measurement
Measurement
Measurement
Measurement
Recognition
Recognition
Recognition
Recognition
Derecognition
Derecognition
Presentation &
disclosure
Presentation &
disclosure
Reporting entity
Exposure Draft
2013 Discussion Paper 2015 Exposure Draft
Reporting entity
Disclosure Initiative
Disclosure initiative - overview
18
Completed
projects
Ongoing
activities
Amendments
to IAS 1
Digital
reporting
Implementation
projects
Proposed
amendments
to
IAS 7 debt
reconciliation
Distinction
between a
change in
accounting
policy and
estimate
Research projects
Materiality
Practice
Statement
Principles
of
Disclosure
(POD)
Standards
level review
of
disclosures
Disclosure initiative overview contd.

Disclosure problem?
Too much irrelevant
information (overload)
Not enough relevant

information
19
Poor communication
IASB
drafting
guide
POD
Address
individual
disclosure
issues
Enabling
preparer
judgement
Materiality
Better
disclosure
reqments
Technology
IAS 1
Improved disclosures
Review
existing
and
proposed
Standards
The 10-point plan status

1-3 clarify current materiality guidance
Immaterial information can detract from useful information.
Materiality applies to the whole of the financial statements.
Materiality applies to each disclosure requirement in a Standard.
20
IAS 1 Amendments
Final Standard published
Q4 2014.
4-5 Clarify guidance on the order of the notes, including accounting policies
Remove language in IFRS:

that implies a prescribed order of the notes; and
prevents flexibility about the location of accounting policies in the notes.
6 net debt reconciliation
Consider adding a net-debt reconciliation requirement.
7 develop further guidance on materiality

Consider creation of either general application guidance or educational
material on materiality.
Work with the IAASB and IOSCO.
Proposed IAS 7
Amendments
Final Standard planned for
Q4 2015.
Materiality Project
ED Practice Statement
published in October
2015.
The 10-point plan status continued

New Standard
8 disclosure objectives in new Standards
21
Use less prescriptive wording for disclosure requirements

Focus on disclosure objectives and examples of disclosures that meet
that objective
Good progress regulatory

deferral accounts.
NZXRB proposals on how to
draft disclosure requirements.
POD Project
9 start research to create a new disclosure Standard
Fundamental review of IAS 1 and IAS 8.

Review of IAS 7 added to the Primary Financial Statements project.
Revisit work done in Financial Statement Presentation project.
DP planned for Q1 2016.

Primary Financial Statements
project added to the research
agenda.
Proposed IAS 8
Amendments
ED planned for Q2 2016.
Standards level
review of disclosures
10 undertake a general review of disclosure requirements in

existing Standards
Once a new disclosure standard has been completed.
Targeted review of disclosure

requirements in progress.
Timeline looking ahead

FEB 2016
JAN 2016
DEC 2015
Amendments
to IAS 7 debt
reconciliation
Final
Becomes
effective
End of
comment period
Amendments
to IAS 1
Materiality
Practice
Statement
Exposure
Draft
Drafting guide and review of existing Standards
Behavioural change
MAR 2016
POD
Discussion
Paper
Post-implementation Reviews

Post-implementation Reviews (PIR)
24
The IASB reviews each new Standard or major amendment

Assess the effect of the new requirements, considering:
issues that were important or contentious during the
development of the Standard;
issues that come to the attention of the IASB after the
publication of the Standard; and
unexpected costs or implementation problems encountered.
Seek input from preparers, auditors, securities regulators

and investors
Conduct review of academic studies on the Standard
IFRS 3 PIR - Overview
25
Request for Information (RfI) published on 30 January 2014

(comment period ended on 30 May 2014)
Evidence gathered:
93 comment letters
30 outreach events, including discussion forums,
conferences, webcasts and individual meetings principally
focused on investors and investors representative bodies
36 academic studies reviewed
IFRS 3 PIR - Key findings (1)
26
Impairment of goodwill and indefinite-life intangible assets:

Investors have mixed views on the impairment-only approach
for goodwill
Academic studies some evidence of managerial discretion
in amount and timing of impairment recognition, however
other evidence suggests IFRS impairment model is operating
effectively.
Many participants think the impairment test is complex, timeconsuming and expensive and involves significant
judgements.
IFRS 3 PIR Key findings (2)
27
Separate recognition of intangible assets from goodwill:

Investors have mixed views on the separate recognition of
intangible assets from goodwill.
Academic research indicates separate recognition of goodwill
and identifiable intangible assets are value-relevant.
Valuation of many intangible assets is challenging because
they are unique and no active market especially challenging
when not based on legally enforceable rights
IFRS 3 PIR - Key findings (3)
28
Fair value measurement in a business combination:

Fair values at acquisition date provide useful information
about how management spends the investors money
However, fair value does not facilitate comparison of trends
between companies that grow organically and those that grow
by acquisition
Measuring fair value of contingent consideration is highly
judgemental and difficult to validate
Measuring fair value of contingent liabilities is difficult
because of the uncertainties involved.
IFRS 3 PIR Key findings (4)
29
Application of the definition of a business:

Many challenges in application including the relevance of
processes acquired, and the significance of processes
missing from acquiree, and the concept of capable of being
conducted as a business.
A separate accounting treatment for business combinations
and asset acquisitions is conceptually justified only with
respect to whether or not goodwill is recognised
PIR: IFRS 3 Next steps
30
Two projects added to agenda:

Financial reporting requirements for goodwill
Relationship between separately recognised intangible assets
and goodwill
Systematic amortisation versus impairment testing
Improvements to the impairment test
Definition of a business: proposed amendments:

Add a threshold: a set is not a business if substantially all of the
fair value of the gross assets acquired is concentrated in a
single asset or a group of similar assets
Guidance on the role of substantive processes in identifying a
business
Add examples
Research projects
31
Primary Financial Statements
32
In the research project on principles of disclosure, the IASB

has tentatively decided that the primary financial statements
are the statements of:
financial position;
profit or loss and other comprehensive income;
changes in equity; and
cash flows
The research project on primary financial statements will

examine the purpose, structure and content of the primary
financial statements
We are currently planning how to progress the project
Discount Rates
33
Different discount rates are used in different Standards

In the assessment stage, IASB staff are exploring why the
differences exist and their effects
The IASB started to consider the results of the research in
September 2015
Financial Instruments with

Characteristics of Equity
34
Assessment stage identified many challenges in classifying

financial instruments as liabilities or equity
Project is currently exploring:
whether the existing classification requirements in
IAS 32 Financial Instruments: Presentation could be
improved; and
what improvements could be made to the existing
presentation and disclosure requirements
The timing of a Discussion Paper has yet to be determined
Equity Method
35
A high level of submissions to the Interpretations Committee

about this method has raised issues that:
highlight the complexities of the equity method; and
suggest the need for a fundamental review of the equity
method
In June 2015,the IASB decided to:

focus research on trying to simplify the equity method to
reduce the many implementation issues arising in practice;
and
consider the need for a more fundamental review of the equity
method at a later date, using evidence gathered through the
simplification project
Share-based Payment
36
There has been a high level of submissions to the

Interpretations Committee about the application of IFRS 2
Share-based Payment
Objective of the research project is to identify the main areas
of complexity and their causes
IASB expects to consider the research findings before the
end of 2015
Pollutant Pricing Mechanisms
37
Previous Emissions Trading Schemes (ETS) project (20052010)

IASB made a few (but important!) tentative decisions about
cap and trade issues
Current project is taking a fresh start approach so previous
tentative decisions will be revisited
Current project has been renamed because it will consider a

variety of schemes designed to provide incentives to reduce
emissions, not just ETS
Currently focussing on cap-and-trade ETS
A Discussion Paper is likely to be published in 2016
Post-employment Benefits
38
IAS 19 Post-employment Benefits does not work well for

some hybrid pension schemes that have some features of
both:
defined benefit schemes; and
defined contribution schemes
Project is assessing whether a solution can be developed

without reconsidering the current accounting for defined
contribution and defined benefit schemes
If not, a more fundamental consideration may be needed
Thank you
39
Conferencia IFRS
Cartagena, Colombia
Sesiones paralelas: Implementacin de las nuevas NIIF:
Implementacin de la NIIF 9 Instrumentos Financieros:

instituciones financieras
DARREL SCOTT
Miembro
IASB
JOAO SANTOS
Director de Poltica Contable, Amrica Latina,
HSBC
RAFAEL RODRGUEZ
Socio
KPMG
JORGE HUMBERTO HERNANDEZ

Director de Contabilidad Grupo
Bancolombia
IFRS 9
Financial Instruments
Joint IFRS Foundation and INCP IFRS Conference,
Cartagena November 2015
Darrel Scott
IASB member
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
A Standard for financial instruments

Classification and measurement
Classification approach driven by cash
flow characteristics and business model
Gain on own debt no longer affects profit
Impairment
A forward-looking expected loss model
that improves the timeliness of
information about credit risk
Hedge accounting
A model that better aligns accounting with
risk management and utilises risk
information

Principle-based, unified model with a logical structure

and rationale for classification and measurement of
financial assets
measurement categories and use of business model
reflect nature of cash flows and how they are managed
Improved reclassification requirements consistent with

changes in business model
Single approach eliminates complex bifurcation
requirements and multiple impairment approaches
Elimination of IAS 39 tainting rules
Financial Assets
Classification process
Test
Then test
Cash flow
characteristics
Satisfy
Do not satisfy
Accounting
FV P&L
Business
model
Hold to collect
and sell
FV OCI
Hold to collect
Amortised
cost
Financial Assets
Classification
Test
Accounting
Cash flow
characteristics
Amortised
cost
Business
Model
FV OCI
Instruments
which fail
either test
FV P&L
Reclassification
required if business model changes

* Same impairment model for amortised cost and FVOCI
Option
FV for
accounting
mismatch
Equities
through OCI
Financial Assets
Cash flow characteristics assessment
If cash flows solely Principal and Interest, measurement

depends on the business model
Interest is consideration received for time value of money
and credit risk
Standard provides guidance on application of the principle
when:
Interest rate is leveraged,
There is an interest rate mismatch,
Regulated rates
Financial Assets
At amortised cost
Business model:
Objective of holding instruments is to collect contractual
cash flows rather than to sell
Not an instrument by instrument
Contractual cash flow characteristics

Payments represent solely principal and interest
Interest is consideration for time value of money and
credit risk
Prepayment/extension options may qualify
No tainting rules for assets at amortised cost

Financial Assets
At Fair Value through OCI (FVOCI)
Business model:
Objective of holding instruments is to:
Collect contractual cash flows; and
Sell financial assets
Not an instrument by instrument approach
Contractual cash flow characteristics

Payments represent solely principal and interest
Interest is consideration for time value of money and
credit risk
Prepayment/extension options may qualify
Financial Assets
Fair Value Option (FVO)
10
Option
Scope
Restrictions
FV for
accounting
mismatch
Accounting
mismatch
Irrevocable
Equities
through OCI
Not held for

trading
Irrevocable
No recycling
Financial Liabilities
Classification
11
Test
Accounting
Held for
trading
FV P&L
All other
financial
liabilities
Amortised
cost
Option
FV for
accounting
mismatch
FVO and own credit
12
What is own credit?

fair value changes in liability arising from changes in the
liabilitys credit quality
How is it measured?
often measured as change in margin over a benchmark
interest rate
What is the concern?

gain when credit quality deteriorates, loss when credit
quality improves
reporting such gains and losses is not considered useful
FVO and own credit
13
Financial Statements (IFRS 9)

Balance Sheet
Comprehensive Income
Liability: All changes including P&L: all changes except own

own credit
credit
OCI: changes in own credit
Otherwise, P&L gain when own credit deteriorates,

loss when it improves
Limited amendments propose allowing the own credit
requirements to be applied before the rest of IFRS 9
Required by IFRS 9 for liabilities under the FVO
Impairment

Impairment
15
Forward-looking model that is responsive to changes in

credit risk and responds to the calls of the G20 and others
Expected credit losses always recognised
Builds on existing risk management systems to balance
costs and benefits
Differentiates assets that are underperforming or
nonperforming to inform investors
Robust disclosures to illustrate estimates and credit risk
Deterioration model
16
Credit quality deterioration since initial recognition

Impairment recognition
12 month
expected loss
Lifetime
expected loss
Lifetime
expected loss
Interest revenue
Gross basis
Stage 1
Performing
Gross basis
Stage 2
Under-performing
Net basis
Stage 3
Non-performing
12 Month expected loss
17
Recognise 12 month expected loss if probability of default

has not increased significantly since initial recognition
Proxy for adjusting interest rate for initial expected
credit losses
Expected shortfall in all contractual cash flows given
probability of default occurring in next 12 months
NOT expected cash shortfalls in next 12 months
Credit losses on assets expected to default in next 12
months
Lifetime expected loss
18
Recognise lifetime expected losses if probability of default

has increased significantly since initial recognition
Smaller change in PD for good quality assets and
bigger change in PD for poorer quality assets
Example: an existing asset would be priced differently
because of increase in credit risk since initial
recognition
To address complexity and cost:
Dont recognise lifetime losses on low risk assets
Symmetrical model
When to calculate net interest
19
When assets are credit impaired

Interest is usually calculated on the gross carrying
amount (ie before the loss allowance)
Change to calculation on a net basis (ie on the
amortised cost that is net of the loss allowance) when
IAS 39 criteria for impairment are satisfied
Consistent with population considered impaired under
IAS 39 today (excluding IBNR)
Assessing deterioration
20
Use best information available without undue cost and

effort
Information to consider includes:
Borrower specific
Macro-economic
Internal default rates and probabilities of default
External pricing
Credit ratings
Delinquencies
Rebuttable presumption that assets 30 days past due

have deteriorated
21
Change in probability of default occurring (not change in

expected losses)
Compared with initial recognition
Maturity matters
Operational simplifications:
Recognise 12-month expected credit losses if
investment grade
Rebuttable presumption: significant deterioration when
payments are more than 30 days past due
Dont need to assess for trade and lease receivables
Significant increase in credit
22
Recognise lifetime ECL on a significant increase in

credit risk
Change in credit risk over the life of the instrument (ie
probability of a default occurring)
Not changes in expected losses
Compared to credit risk at initial recognition
Doesnt require mechanical assessment of probability of

default statistics
Use information that is available without undue cost or
effort
Collective assessment
23
In general, assessment made on individual level

Collective assessment if same outcome as individual
assessment, ie same risk characteristics, such as
Credit risk ratings

Industry
Geographical location of borrower
Remaining term to maturity
Grouping changes as time reduces uncertainty of

outcome
Objective is to recognise lifetime ECL on instruments for
which credit risk has increased significantly
Measurement
24
Impairment loss measured as difference between

carrying value and Present Value of expected future
cash flows
Probability weighted outcome
Need not consider every possible outcome
Must consider (at least) possibility that a default will
occur and that a default will not occur
Time value of money

Reasonable rate between (and including) risk-free rate
and effective interest rate
Measurement
25
Particular measurement methods are not prescribed

Borrower specific:
changes in operating results of borrower
technological advances that affect future operations
changes in collateral supporting obligation
Macro-economic:
house price indexes, GDP, household debt ratios
Internal default rates and probabilities of default
External pricing, eg credit rating agency information
Low credit risk
26
Operational simplification for high quality financial

instruments (for example, investment grade)
Choice to assume instrument remains in stage 1
Therefore, no need to assess whether changes in credit
risk have been significant
Still need to update expected credit losses for changes
in expectations even if in stage 1
But
Not a hair-trigger if the credit quality falls below
investment grade, need to assess whether deterioration
is significant (ie normal model applies)
Delinquency - rebuttable presumption
27
Objective is to act as a backstop or latest point to

identify significant deterioration
Rebuttable presumption payments are more than 30
days past due
A lagging indicator, but should identify before default
Proxy for significant deterioration if no other borrowerspecific information
Can be rebutted
However, cannot ignore information that suggest
significant deterioration prior to 30 days delinquency
Credit impaired on initial recognition
28
Scope
Both originated and purchased credit-impaired
same population as IAS 39 impaired
Always outside general deterioration model

Use credit-adjusted effective interest rate
No day 1 allowance balance
No day 1 impairment loss recognised
Allowance balance represents changes in lifetime loss

expectations
Trade and lease receivables
29
Without a significant financing component (eg short

term):
Measure receivable at invoice amount
Allowance is always lifetime expected losses
Provision matrix can be used
With a significant financing component (eg long term)

and lease receivables (policy election):
general deterioration model or
always recognise lifetime expected losses
Loan commitments and guarantees

Apply general deterioration model
Instruments that create a present legal obligation to
extend credit
Maximum contractual period exposed to credit risk
Except where behavioural life prevails
Estimate usage behaviour over the lifetime

Expected losses presented as liability
30
Disclosures
31
Inputs, assumptions and techniques used in:

estimating expected credit losses; and
assessing whether the recognition of lifetime expected
losses have been met
Roll-forward of the carrying amount and allowance

balance
Disaggregation of carrying amount by credit quality
Credit-impaired assets at initial recognition
Collateral
Assets evaluated on individual basis
Other initiatives

Transition Resource Group
33
ITG established to provide support for IASBs stakeholders

implementing expected credit loss requirements:
Forum for questions regarding implementation
Make the IASB aware of implementation issues
Educational role
Limited life during the transition period
Will not publish any guidance
3 meetings to date
One issue (revolving credit facilities) raised with IASB:
Staff did not propose any further action
The IASB observed requirements of IFRS 9 were clear
Meeting notes are published.


Topics discussed (April)
34
Forecasts of future economic conditions

Loan commitments scope
ECL measurement date
Assessment of significant increase in credit risk for
guaranteed debt instruments
The maximum period to consider when measuring expected
credit losses
Revolving credit facilities
Measurement of ECL for issued financial guarantee contract
Measurement of ECL for modified financial asset

Topics discussed (September)
35
Significant increases in credit risk

Use of changes in the risk of default occurring over the next
12 months when assessing for significant increases in credit
risk
Measurement of expected credit losses for revolving credit
facilities
Forward-looking information
Basel Initiative
SCRAVL (Sound credit risk assessment and valuation of loans)
36
IASB supportive of Basel initiative to support consistent, high

quality application globally
SCRAVL emphasises key aspects of IFRS 9 - using forward
looking information and considering effects on portfolio basis
IFRS 9 allows a range of simplifications and also
emphasises the notion of undue cost and effort
SCRAVL notes some simplifications may not be justified for
internationally active banks for example:
reliance on 30 days past due information
use of investment grade simplification
Also makes recommendations re disclosures

Enhanced Disclosure Task Force
37
The Enhanced Disclosure Task Force (EDTF) is considering

the impact of ECL approaches on bank risk disclosures.
The EDTF will issue its report imminently and builds on
existing EDTF principles and recommendations.
The report is also consistent with IFRS7 "Financial
Instruments: Disclosures", illustrating and corroborating that
standard.
Hedge accounting

Introduction
39
Greater alignment with risk management including:

Designate risk components of non-financial instruments.
Ability to hedge aggregated exposures (combinations of
derivatives and non-derivatives).
Introduction of costs of hedging to improve the
transparency around some hedging instrument.
A principle-based hedge effectiveness assessment to
achieve hedge accounting.
Objectives of disclosure is to understand hedged risks;
how the risks are managed; and the effect of hedging
Hedged items
40
Qualifying
hedged item
Entire item
Component
Risk component
(separately identifiable
and reliably measurable)
Nominal component
or selected
contractual CFs
Hedged items
Risk components
41
IAS 39
IFRS 9
Fixed element
Fixed element
Variable
element
Variable
element
Benchmark
(eg interest
rate)
Benchmark
(eg interest
rate)
Benchmark
(eg interest
rate)
Benchmark
(eg interest
rate)
Hedged items
Aggregated exposures
42
Example: hedging commodity price & FX risk

Commodity
supplier
US$
Commodity
futures
contract
US$
US$
FX forward
contract
Aggregated
exposure
US$
Manufacturer
Not an
eligible
hedged item
under IAS
39
Hedging instruments
43
Qualifying hedging
instruments
Entire item
Partial designation
FX risk
component
Intrinsic value
Spot element
Proportion of
nominal amount
Costs of hedging
44
Costs of hedging
Time value
of options
Transaction
related
hedged item
Time period
related hedged
item
Forward element
of forward
contract
Option: time value
45
Accounting if the hedged item is transaction related

Cumulative
gain in OCI
Time
value
paid
Release from
accumulated
OCI to P/L
Cumulative
loss in OCI
t
T0
Expiry
Life of option
Treatment as a cost of hedging reflects economics
Option: time value
46
Accounting if the hedged item is time period related

Cumulative amortisation
of initial time value
Time
value
paid
Cumulative
loss in OCI
T0
Life of option
Cumulative
gain in OCI
Time value is
amortised to
P/L over life
t
Expiry
Treatment as a cost of hedging reflects economics

Hedge effectiveness
47
Hedge
effectiveness
Hedge effectiveness test:

1.Economic relationship
2.Effect of credit risk
3.Hedge ratio
Rebalancing
Measuring and
recognising
hedge ineffectiveness
Discontinuation
Disclosures
48
Hedge accounting
disclosures
Risk
management
strategy
Amount, timing
and uncertainty
of future
cash flows
Effects of hedge
accounting on
the primary
financial
statements
Specific
disclosures
for dynamic
strategies
and credit
risk hedging
Questions or comments?
49
IFRS 9 Financial Instruments

HSBC approach to IFRS 9
Presented by: Joao Santos
Date: 23/24 November 2015
RESTRICTED
Contents
x HSBCs project
x Implementation challenges
x Project timeline
x Messages to take away
RESTRICTED
HSBCs project
RESTRICTED
Introduction
One of the worlds largest banking and financial services organisations.

Operates in over 72 countries and has over 48million customers worldwide.
Loans and advances of US$1,063bn as at 30 June 2015.
Impairment allowances of US$10bn as at 30 June 2015.
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Project Timeline
High level plan
Standard Setting
Jul 14
Final IASB
Standard
Dec 14
Q4 15
FASB
Standard
H1 16
EU
Endorsement
1/1/18
Effective
Date
Implementation Guidance
Mar 15
Regulatory
Guidance
(Draft)
Q3 15
EDTF
Guidance on
Disclosures
Q4 15
Regulatory
Guidance
(Final)
Planning & Design Phase
Delivery Phase 1
Q4 17
Full impact
disclosure
Parallel Run & Transition

Phase
Delivery Phase 2
Dec
2014
Deliverables:
Programme Initiation Document
Initial Classification &
Measurement Scope Survey
Requirements Defined
Target Operating Model
Systems Architecture
Data Dictionary
Modelling Methodologies
Regional Plans & Design
Variations Agreed
Q4 16
Limited additional
qualitative disclosure
Q4 15
Qualitative disclosure
External Disclosures
Dec
2015
Deliverables:
Full C&M Scope Survey
Data Integration
System Design
Deliverables:
Global Rollout of ECL
Calculations
Accounting & Disclosure
System Changes
Dec
2016
Mar
2018
Deliverables:
Regular Business MI
Produced
Business Mitigating Actions
Defined
Quality Enhancements
(Data, Models, Systems)
Accounting Cutover
Full Disclosures Produced
Programme Close
5
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Overview of the HSBC IFRS 9 Programme

Workstreams
Workstream
Scope & Key Deliverables
Retail Credit Risk
Impairment model development

Sourcing of additional data to support impairment calculation and reporting
Developing and rolling-out a global impairment calculation engine
Commercial and capital impact of impairment
Operating model changes in retail credit risk
Wholesale Credit Risk
Impairment model development

Sourcing of additional data to support impairment calculation and reporting
Developing and rolling-out a global impairment calculation engine
Commercial and capital impact of impairment
Operating model changes in wholesale credit risk
Accounting and Disclosure
Determine the financial instruments subject to re-classification

Operational accounting and financial reporting system changes
New disclosures, including transitional
Implementing changes to accounting and disclosure processes
Impairment process for financial assets owned by insurance entities
IFRS conversion for non-IFRS Associates
Product Control
Classification & Measurement changes in Global Markets systems

SPPI testing for Global Markets products, including securities
Specialist impairment model development for asset backed securities
Hedge accounting changes
6
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Implementation challenges
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Implementation Challenges
Complexity and accounting interpretation
Significant increase in credit risk
x IFRS 9 is not prescriptive, but provides a non-exhaustive list of information to be

considered in determining whether there has been significant increase in credit risk
(IFRS 9.B5.5.17).
x Significant, unlike impaired, cannot be related to specific events taking place (e.g.
bankruptcy). Therefore determining what is considered to be significant increase in
credit risk is considerably more challenging.
x There is not one set of criteria for significance that can suit all portfolios globally. The
following steps must be taken to determine significance for each product type/portfolio.
Step 1
Step 2
Step 3
Determine what is being

compared as the base
mechanism for a computerised
calculation (e.g. 12 m PD, lifetime
PD, internal rating, score).
Consider what other information

needs to be reflected and the
process for doing so (e.g. past
due status, watch worry monitor
lists, renegotiated status).
Determine methods to calibrate

significance and the form in
which this will be expressed
(e.g. a movement of X bands in a
rating, a movement of X% in a
PD measure).
Step 6
Apply viable method(s) to
different portfolios and
recalibrate as necessary.
Step 5
Test outcomes of different viable
methods in terms of movements
between categories (as set out
below).
8
Step 4
Trial the different
methods and review
results.
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Complexity and accounting interpretation (continued)

Significant increase in credit risk (continued)
Other considerations when determining significant increase in credit risk include:

x Bridging credit risk management practice that focuses on current behavioural
information of the customer with the relative approach as required by IFRS 9 which
considers the change from initial recognition.
x Point of initial recognition for revolving facilities with no fixed contractual life e.g. Retail
credit cards and overdrafts.
x If PD is being used as the mechanism to identify significant increase in credit risk, need
to consider appropriateness of using 12-month PD as a proxy. Additional complexity
may result from using life-time PD, without a corresponding improvement in
discrimination.
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Complexity and accounting interpretation (continued)

Other issues
x Building IFRS 9 compliant risk components (e.g. PD, LGD, EAD)

Adjusting regulatory components
Lifetime component, i.e. term structure
Life of revolving credit facilities
x Forward looking factors

Governance for the estimates, late adjustment and overlay processes.
Linkage of future economic factors with risk components via stress testing capabilities
x Definition of impaired, default, non-performing, and their interaction with Stage 3

x Developing new accounting policies and designing impairment process in the midst of
changing requirements, e.g. Basel AEG guidance not finalised, on-going ITG meetings,
on-going EDTF discussions, different requirements of different local regulators.
x Different requirements being introduced by different local regulators might undermine
IFRS 9 as an international standard, hence banks might find it particularly difficult to
implement IFRS 9 consistently globally.
10
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Complexity and regulatory interpretation
Differences to Basel scope
Standardised
Portfolios
An obvious consideration
when looking to implement
IFRS 9 is the extent to which
Basel Expected Loss models
can be leveraged.
Repos, Stock
Borrowing,
Securitisation
Exposures
The scope differences alone
Consolidate
Insurance and
Securitisation
Entities
make leveraging a banks

capital infrastructure more
difficult and it can never
provide the complete answer.
IFRS 9 requires modelling

where it may not be permitted
for regulatory purposes.
Basel EL
(NCCR) *
Unlike Basel, firms must

develop own estimates even
for portfolios with little data.
11
*Non-country party credit

risk
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Complexity and regulatory interpretation
Interaction with regulatory rules
Users of financial statements are very interested in the impact of IFRS 9,

especially the capital impact.
The interaction with capital requirements under Basel III is not straightforward:
Circularity of language one of the unlikeliness to pay indicators is described with
similar language to significant increase in credit risk.
What constitutes a specific credit risk adjustment under IFRS 9? Unlike general
credit risk adjustments, these may be deducted from the exposure value under the
Basel Standardised approach.
Treatment of deferred tax assets (expected to increase on transition to IFRS 9).
Even if Basel rules are to remain unchanged, the interpretation issues need
to be considered. More information is not expected from the Basel
Committee until mid 2016.
Readers of annual report are very interested in the impact of IFRS 9,
especially the capital impact.
12
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Systems issues
x IFRS 9 requires very significant design and build with appropriate roll-out.
x Systems design is taking place through 2015, with the majority of build taking place
through 2016.
x Due to the granular level of calculations, large volumes of data are required.
x Rapidly evolving technology solutions complicate the design process.
x Global solutions are required across multiple, diverse, business areas.
x Cross Border Data Transfer compliance issues are a challenge to implementing global
solution.
x To facilitate a robust review and challenge process, and allow the required level of data
analysis, new MI and analysis tools will be developed.
x Widespread changes to accounting and disclosure systems and processes.
13
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Other
x Data issues
Calculation of expected credit losses requires similar data to that used for regulatory capital.
Given complex legacy system architecture, it is challenging to ensure complete and consistent
availability of data for all businesses and legal entities globally.
In some cases, improvements are required to the quality of data capture in front-office.
Ensuring appropriate control and governance of data is as much of a challenge as quality.
For some long-dated instruments, information from the date of origination may not exist in our
systems.
HSBC is investing heavily in data improvements, in order to comply with BCBS 239 and other
internal and regulatory demands.
x Communication
IFRS 9 is a complex standard, impacting on both risk management and financial reporting.
There are multiple internal stakeholders to be engaged and kept informed.
External education - of investors, regulators and other users of financial statements - is also key.
14
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Resources
Implementation of IFRS 9 is a large and complex project involving the development or

amendment of over 300 risk models.
IFRS 9 requires the implementation of entirely new processes and large scale system
changes to support quarterly financial reporting.
Given the magnitude of the changes and external disclosure requirements, a one year
parallel run period is considered necessary.
We estimate that over 300 FTE are required to implement the proposals during 2015
and 2016.
Finding, recruiting and on-boarding that level of specialist resource is a major
challenge. All other banks are looking for the same resource and internally there are
many other competing regulatory projects, such as stress testing.
IFRS 9 requires significant change to the same systems impacted by other regulatory
demands including enhanced stress testing.
There is a limited capacity for changing these critical live systems, so careful planning
and prioritisation is essential.
In addition, the incorporation of forward looking information into ECL requires the
development of a new/wider assumption setting and governance process.
Regulatory demands for quantitative impact assessment will put additional pressure on
resources.
15
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Messages to take away

x IFRS 9 requires very significant design and build with appropriate roll-out. Systems build
is taking place throughout 2016.
Complete impact assessment not possible until full rollout
Any earlier impact assessment can only be on a best endeavours basis with extrapolation and
without forward looking factors
x 2018 transition impact will depend on actual business models and economic conditions
at that time
x However, the balance of impairment allowance (i.e. stock) is generally expected to be
larger due to:
Stage 1 ECL of 12-months is expected to be more than the incurred but not reported allowance
recognised based on emergence period under IAS 39.
Expected lifetime losses are recognised for Stage 2 financial instruments, which is earlier than
impaired under IAS 39.
x The IFRS 9 ECL is expected to be more volatile due to incorporation of forward looking
factors.
16
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Messages to take away

x Key interpretation challenges in process but no definitive answers at this stage, pending
finalisation of Basel AEG guidance,
outcome of ITG meetings,
other design work
x Implementation of IFRS 9 will result in changes to

end-to-end process of impairment,
overlay and governance,
credit risk policies,
But the changes should be aligned with credit risk management practices.
x Materiality/proportionality is important
We plan to have a consistent approach, however simplification will be necessary for smaller
portfolios and where there is less data (e.g. standardised portfolios, portfolios with low default
rates etc).
x Models used for IFRS 9 need not be approved by regulators for regulatory reporting
purposes. They just need to be compliant with IFRS 9.
x Models and processes should not be unnecessarily complex without adding value. The
impairment allowances need to be determined within reporting deadlines.
17
Questions?
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Implementing IFRS 9
Financial Instruments
Financial Institutions
Contents
1. IFRS 9 - Overview
Fundamental changes
call for careful planning
2. Classification and measurement Facts

3. Classification and measurement Impacts
4. Impairment Facts
5. Impairment Impacts
6. Next steps
Overview IFRS 9 Financial Instruments
In summary
Bottom line
The IASB has now issued the completed version of IFRS 9 Financial Instruments
(IFRS 9 or the standard), which substantially brings to a close the challenging
project launched in 2008 to replace IAS 39 Financial Instruments: Recognition and
Measurement.
Companies need to start planning for transition, to understand the time,

resources and changes to systems and processes needed .
IAS 39 has been revised in stages as follows.
Version
Whats included?
Retained from
IAS 39
IFRS 9 (2009)
New requirements for the

classification and measurement of
financial assets and financial liabilities.
Requirements for
recognition and
derecognition of
financial
instruments with
only minor
amendments.
IFRS 9 (2010)
IFRS 9 (2013)
New requirements for general hedge

accounting.1
IFRS 9
(Complete
standard)
Amendments to classification and

measurement requirements for
financial assets published in IFRS 9
(2009) and IFRS 9 (2010).
New impairment model based on
expected credit losses.
The standard could have a major impact across an organisation particularly

for financial institutions.
Larger and more volatile bad debt provisions are likely.
The completed standard also amends IFRS 7 Financial Instruments: Disclosures to

introduce new or amended disclosures.
2014 KPMG IFRG Limited, a UK company limited by guarantee and a member firm of the KPMG network of independent
member firms with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved
No convergence with US GAAP

The FASB had launched a similar project to revise accounting for financial
instruments but decided to continue in a different direction to the IASB.
As a result, companies applying both US GAAP and IFRS in their financial reporting
will be required to implement different guidance which could pose a significant
operational challenge.
Effective date and transition

The standard will be effective for annual periods beginning on or after 1 January
2018, and will be applied retrospectively with some exemptions.
Early adoption is permitted.
Restating comparatives is not required, and permitted only if information is available
without use of hindsight.
Fact sheet Classification and measurement
Overview
Key sectors impacted
Financial asset classification based on:

contractual cash flow characteristics; and
objective of business model in which assets are managed.
IAS 39 principles for financial liabilities retained subject to new own credit
presentation for liabilities designated at fair value through profit or loss.
Financial asset classification
The new standard may have a significant impact on the classification and measurement of:
- financial assets held by banks e.g. those held to meet various liquidity needs; and
- financial assets held by insurance companies to fund their insurance liabilities or to match
the duration of their longer-term insurance liabilities.
The impact on corporates will often be limited, although investment portfolios will be affected.
SPPI assessment
IFRS 9 has three primary measurement categories for financial

assets.
The assessment is linked to the concept of a

basic lending arrangement.
Amortised cost
Assets that meet the following criteria:
- contractual terms give rise, on specified dates, to cash
flows that are solely payments of principal and interest
(the SPPI criterion); and
- held in a business model whose objective is to hold
them in order to collect contractual cash flows.
Principal is the fair value of the financial asset at

initial recognition.
Interest consists of consideration for the time
value of money, credit risk, other basic lending
risks (e.g. liquidity risk) and costs (e.g.
administrative costs) as well as a profit margin.
The standard has specific guidance on:
Fair value through other comprehensive income (FVOCI)

Assets that meet the SPPI criterion and are held in a
business model whose objective is achieved by both
collecting contractual cash flows and selling financial
assets.
Non-trading equity instruments for which fair value changes
are irrevocably elected to be presented in OCI.
Fair value through profit or loss (FVTPL)
Business model assessment

Determined based on how groups of financial assets
are managed together to achieve a particular business
objective i.e. not at the individual instrument level.
Business model is a matter of fact that can be
assessed by considering all relevant evidence
available including sales activity, business
performance evaluation, risk management and how
business managers are compensated.
Assets irrevocably designated as at FVTPL to reduce

accounting mismatches.
regulated interest rates;
modified time value of money;
de minimis or non-genuine contractual cash

flow characteristics; and
other contractual provisions that change the

timing or amount of contractual cash flows.
There is no separation of embedded derivatives

from financial asset hosts.
All other financial assets.

Reclassification between categories is only permitted if the
business model objective has changed.
Financial liability measurement

Financial liabilities are measured at amortised cost,
with some exceptions that include liabilities held for
trading or designated at FVTPL.
Reclassifications between categories are not
permitted.
In general, for liabilities designated as at FVTPL:
- a change in fair value that is attributable to
changes in credit risk is presented in OCI; and
- any other change in fair value is presented in
profit or loss.
Impact sheet Classification and measurement

Significant judgements to be made
The business model approach will require judgement to
ensure that financial assets are classified in the right
category.
Judgement may be required in determining whether the
SPPI criterion is met.
If the time value of money is modified for example
where the interest rate resets every month to a oneyear rate then determining whether the SPPI
criterion is met may require a quantitative assessment.
This will require an entity to:
identify the characteristics of a benchmark

instrument in which the time value of money is not
modified;
identify reasonably possible scenarios; and
determine whether there could be a significant

difference between:
the undiscounted contractual cash flows of the

financial asset being assessed; and
the undiscounted cash flows of the benchmark

instrument.
Possible changes in volatility in profit or loss and equity
Regulatory capital requirements may be impacted
The standard may have a significant impact on the way

financial assets are classified and measured, resulting in
changes in the volatility in profit or loss and equity.
The type and degree of change will depend on the nature of
an entitys financial instruments and how they are managed.
For banks and other financial institutions that have

to comply with the Basel capital requirements or
other national capital adequacy requirements,
many asset measures used to calculate regulatory
capital resources and requirements are based on
the entitys financial statements.
Early application of the own credit requirements for financial

liabilities would help to reduce volatility in profit or loss
sooner than the effective date of the standard.
The way in which an entity classifies financial

assets could therefore affect the way its capital
resources and requirements are calculated.
To understand the potential implications for volatility in profit

or loss and equity, entities will need to :
Extra resources may be needed for transition
assess the business models of existing financial assets

as part of the transition effort; and
plan to assess the classification of new transactions
under IFRS 9.
Entities that have already applied, or are planning

to early apply, IFRS 9 (2009) and/or IFRS 9 (2010)
may have to re-engineer the conversion process
to take into account the requirements of the final
standard.
Banks and other financial institutions may need to enhance

systems and processes to separately analyse credit risk of
financial liabilities designated as at FVTPL.
THE BOTTOM LINE

The standard could have a major impact
across an organisation particularly for
financial institutions.
Different drivers of volatility in profit or loss

and equity could impact your future results.
Begin your business model and solely

P&I assessments and plan to assess
both existing contracts and those you
expect to enter into before 2018.
Fact Sheet Impairment

Overview
Key sectors impacted
Expected credit loss model to replace IAS 39s incurred loss model.
Applies to: debt assets (including both loans and securities, and lease and trade receivables)
measured at amortised cost or FVOCI; contract assets; certain financial guarantees; and loan
commitments. Not applicable to equity investments.
Dual measurement approach: 12-month expected credit losses or lifetime expected credit losses.
Banks are likely to see a significant impact far-reaching implications

are expected for credit systems and processes.
Insurance companies should expect a substantial impact there is
no simplification for debt instruments measured at FVOCI.
Simplified approach for certain trade and lease receivables and contract assets.
For leasing companies, the extent of the impact will depend on the
type of leases and the impairment approach elected.
Interest income recognised using effective interest rate.
Corporates will see a limited impact for trade receivables.
Special rules for assets that are credit-impaired on initial recognition.
All sectors will be affected by extensive new disclosure requirements.
Dual measurement approach
Special rules for certain assets
Disclosures
12-month expected credit losses
Trade and lease receivables and contract assets
Disclosures
Defined as the portion of lifetime expected credit losses

that represent the expected credit losses that result from
those default events on the financial instrument that are
possible within the 12 months after the reporting date.
Trade receivables or contract assets that do not

contain a significant financing component will always
carry a loss allowance equal to lifetime expected credit
losses.
Extensive qualitative and quantitative disclosures,

generally by class of financial instruments, including:
Recognised for all instruments unless criterion for lifetime

expected credit losses is met.
For trade receivables or contract assets that contain a

significant financing component and lease receivables,
an entity can elect either to:
Impairment trigger no longer required before impairment

allowance is recognised.
Recognised if credit risk on instrument has increased

significantly since initial recognition.
Conditions for recognising lifetime expected credit losses
may be assumed not to be met if credit risk is low e.g.
for investment-grade assets.
description of credit risk management practices

including how an entity determined whether credit
risk has increased significantly;
explanation of inputs, assumptions and

techniques used when applying the impairment
requirements;
reconciliation of loss allowance and explanation of

significant changes in the gross carrying amount;
and
information on modified assets and on collateral.
apply the general approach; or

recognise lifetime expected credit losses at all
times.
Lifetime expected credit losses

Defined as expected credit losses that result from all
possible default events over life of financial instrument.
Assets that are credit-impaired on initial recognition

The effective interest rate is calculated at initial
recognition using estimated future cash flows net of
lifetime expected credit losses.
Subsequent changes in lifetime expected credit losses
are recognised in profit or loss, and as a corresponding
allowance balance.
Impact Sheet Impairment
Significant increase in the number and complexity of

judgements
Judgement is required to assess future credit losses for
all exposures.
Operationalising the new requirements may be

challenging
Banks with less sophisticated credit systems may

have difficulty implementing the new requirements
Expanded data/calculation requirements may include:
They may currently lack the data or systems to

perform the expected credit loss calculations.
The model relies on robust estimates of:
expected credit losses; and
the point at which there is a significant increase in

credit risk since initial recognition of an asset.
For making those estimates, companies will need to

decide how key terms such as significant increase and
default will be defined in the context of their instruments.
The measurement of expected losses should reflect:
reasonable and supportable information that is

available without undue cost or effort about past
events, and current conditions; and
reasonable and supportable forecasts of future
economic conditions.
The standard:
does not prescribe a method to calculate expected

credit losses; and
acknowledges that methods used may vary based on

facts and circumstances.
estimates of 12-month expected credit losses;
estimates of lifetime expected credit losses; and
data to show whether significant increase in credit

risk has occurred or reversed.
Equity, covenants and regulatory capital may be

affected
Initial application may result in a large negative impact
on equity for banks and, potentially, insurers and
other financial services companies. The regulatory
capital of banks may also be impacted.
KPIs will be affected for banks and similar entities

Credit risk is at the heart of a banks business, so
transition to the expected loss model is likely to have a
significant impact on key performance indicators.
The standard is likely to introduce new volatility in
financial statements because:
credit losses will be recognised for all financial

assets in the scope of the model rather than only
for those assets for which losses have been
incurred;
external data used as inputs may be volatile e.g.

ratings, credit spreads and predictions about
future conditions; and
any move from a 12-month expected credit loss

measurement to a lifetime expected credit loss
measurement may result in a big change in the
corresponding allowance.
This is because equity will reflect not only incurred

credit losses but also expected credit losses.
The impact on an entity will be substantially
influenced by:
the size and nature of its financial instrument

holdings and their classification;
the judgements that it has made in applying the

IAS 39 requirements; and
the judgements that it makes under the new

model.
Disclosure requirements are extensive

Sourcing the additional information required could be
a complex and time-consuming process that will have
an impact on resources and systems.
THE BOTTOM LINE

Credit risk is at the heart of a banks business, so the
standard is likely to have a significant impact on
banks and similar institutions.
They may have little previous internal expertise in

developing expected loss models.
Larger and more volatile bad debt

provisions are likely.
Implementation could be challenging, with far-reaching

implications for banks credit systems and processes,
including interaction with the regulatory requirements.
5
Next steps IFRS 9 Financial Instruments
Consider the impact on your business from an accounting, tax and regulatory perspective, as well as the impact on your systems and processes, business and people.
Here are some of the impacts that we envisage.
Accounting, tax and reporting
Perform a comprehensive review of all financial assets, to ensure that they are
appropriately classified and measured.
Decide how the expected credit loss model will be applied to different financial
assets, and how key terms such as significant increase and default will be defined
in the context of the financial assets held.
Develop appropriate impairment methodologies and controls to ensure that
judgement is exercised properly and consistently and is supported by
appropriate evidence.
Put in place processes to collect additional data required.
Perform a test run on the calculations that will be needed.
Assess the impact on regulatory capital and tax requirements.
Update accounting policy manuals.
Identify additional disclosure requirements.
Systems and processes
Upgrade accounting systems to ensure that they can capture fair value, amortised
cost and any other information needed for classification and measurement.
Decide which systems and processes need to be changed to collect new data and
perform new calculations.
Consider whether any data or calculations used for regulatory purposes
e.g. Basel III may be used, and what adjustments are necessary.
Evaluate the changes needed to key internal controls over financial
and regulatory reporting.
Perform a dry run of data collection processes, to help ensure the
integrity of source data.
Develop a transition plan for parallel runs, including reconciliations.
Establish contingencies for data collection needs.
Business
Assess the risks affecting business models and how their

performance is evaluated.
Evaluate the impact of accounting change on management compensation
metrics, and performance targets and measures.
Perform a comprehensive review of contractual terms.
Assess the impact on KPIs and internal management reporting.
Factor new expected credit loss requirements into stress testing.
Assess the impact of accounting change on general business issues e.g.
contractual terms, risk management practices, treasury practices etc.
Budget for necessary changes to people, processes and systems.
Develop communication plans to minimise surprises for stakeholders.
People and change

Set up a project team with representatives from credit, accounting, tax,
regulatory and IT teams, and with an appropriate governance structure.
Develop and execute training plans for employees across functions and
locations.
Ensure that the project provides realistic timescales and accountabilities.
Assess how changes to processes may impact the way in which work is performed,
including how teams are structured.
Identify whether there is a need for additional staff with appropriate expertise, or a
need to engage external help.
Revise performance evaluation targets and measures, and communicate them to
affected personnel.
Embed knowledge build a dry run into the adoption plan to test staff understanding.
Rafael Rodrguez
Partner KPMG Colombia
This content was originally developed by KPMG International Standards Group. KPMG International Standards Group is part of KPMG IFRG Limited.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we
endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the
particular situation.
2014 KPMG IFRG Limited, a UK company limited by guarantee and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member
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The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International.
EXPERIENCIA
IMPLEMENTACION IFRS
EN BANCOLOMBIA
Jorge Humberto Hernandez
Activos
Cartera:
Tasa efectiva, por comisiones recibidas o pagadas, vehculos, microcrdito, constructor, cartera
pasiva.
Comisin por Avances en efectivo TC van diferidos.
Cuota de manejo de TC no asociada a crditos sino a cuotas de administracin, no va tasa efectiva.
Cuenta 272035 intereses capitalizados de crditos reestructurados o castigados ya es ingreso.
Frech de vivienda cartera y leasing habitacional, el auxilio del gobierno es diferido en el tiempo.
Crditos con tasa por debajo del mercado empleados se crea otros activos y amortiza en el
tiempo
Intereses no se suspende la causacin.
La UVR en creditos de vivienda no se difiere
Titularizaciones cartera, dada de baja de la cartera
Deterioro:
Perdida incurrida Vs esperada vs modelo SFC.

Reversin provisin general.
Provisin de cupos de sobregiro y TC.
Provisiones garantas bancarias, avales, cartas de crdito.
Provisin de aceptaciones bancarias. Deterioro intereses suspendidos.
Deterioro del arrendamiento financiero que antes era arrendamiento operativo.
Las reestructuraciones de crditos se estiman flujos, se aplica VPN y luego se aplica deterioro.
Activos
Inversiones deuda:
2 categoras, a costo amortizado requiere esperar flujos hasta el final (TIPS)

IFRS 9 de noviembre de 2013
No debe haber ttulos a TIR
Todo por proveedor de precios y el resto modelos propios
CDT recomprados no son inversiones, son menores CDT.
Niveles, en un mercado no muy desarrollado
Depsitos y CDT:
CDT recomprados propios, son menor pasivo
Se incluyen los intereses en las cuentas de depsitos
Obligaciones financieras:
Tasa efectiva el costo de la transaccin y se incluyen los intereses
Pasivos
Bonos:
Una porcin en moneda extranjera, son Cobertura de las acciones de un
negocio en el exterior
Son a largo plazo y se descuentan
Tasa efectiva para los costos de la transaccin
Acciones preferenciales parte pasiva:
Sale de prima en colocacin acciones, Costos emisin proporcional pasivo y
patrimonio
Dividendo mnimo va contra resultados (los intereses del pasivo).
Acciones preferenciales traslado de la parte pasiva

Inters minoritario o no controlante es patrimonio
ORI: otro resultado integral, ganancias no realizadas
Diferencia provisiones perdida incurrida vs esperada en Balance
Apertura.
Activos
Leasing arrendador:
Si tiene opcin de compra es financiero.

No se deprecia y el canon se considera capital e intereses.
Tasa efectiva de comisiones recibidas o pagadas.
Las importaciones en curso, anticipos y leasing pendiente de entregar va como cartera y se
aplica deterioro.
Comisin al frente es ingreso (son intereses).
Anticipos, importaciones y bienes por colocar se presentan en cuentas por cobrar, el
cliente es quien est asumiendo los riesgos.
Leasing arrendatario:
Cuando es financiero es un activo y un pasivo, se deprecia.

Incrementa nivel de endeudamiento del cliente
Activos
Inversiones en Ttulos Participativos:
Costo + Valorizaciones
Incluye BRP en acciones
Instrumentos financieros, 0% a 20% participacin:
Se valoran a mercado
DECEVAL, CIFIN, Cmara de Riesgo,
Asociadas o negocios conjuntos, 21% a 50%:
Se valoran por mtodo de participacin
Con base en EF con Full IFRS o con EF con excepciones
En el estado financiero separado y consolidado
Subsidiarias mayor de 50% mayoritaria:
Por mtodo de participacin, dividendos solo son caja
Ajuste de re expresin en patrimonio
Cobertura bonos Vs. inversin + crdito mercantil
Subsidiaria minoritaria:
se valora a mercado
Proveedor de precios o valorados por experto
Dividendos en acciones no es pyg.
Residuales cartera titularizada se estn registrando por el valor reportado por la titularizadora.
Crdito mercantil no se amortiza, se evala por deterioro, es parte de la inversin, no es intangible,
surge solo en el consolidado, no se re expresa en pyg.
Opciones en compra o venta de compaas
Conferencia IFRS
Cartagena, Colombia
Implementacin de la NIIF 9 Instrumentos Financieros:

diferentes a instituciones financieras
STEPHEN COOPER
Miembro
IASB
JAVIER ENCISO
Socio
PwC
IFRS 9
Financial Instruments (other
than financial institutions)
Joint IFRS Foundation and INCP IFRS Conference, Cartagena
November 2015

IFRS 9 - Financial Instruments
Final version of IFRS 9 Financial Instruments published in July

2014
replaces previous versions of IFRS 9
brings together the classification and measurement, impairment
and hedge accounting phases of the IASBs project to replace IAS
39
Mandatory effective date - 1 January 2018 with early application

permitted
EU Endorsement Status - EFRAG has issued a draft endorsement
advice letter which:
concludes that the preliminary assessment is that IFRS 9 satisfies
the criteria for endorsement for use in the EU
advises that the IASB should defer the effective date of IFRS 9 for
insurance businesses
Question 1
Regarding the 1 January 2018 effective date:
A. We plan to early adopt

B. We will need the time between now and 2018 to be
ready
C. 2018 will be near impossible to achieve; other critical
activities will need to be delayed
D. Dont know
Question 2
To date, how extensive has engagement with your
auditors (client) been on implementing IFRS 9?
A. Extensive; working closely together

B. Modest; some discussions but we still have time or
consider that we can handle it ourselves
C. None so far; we have not really started
D. None so far and none expected; IFRS 9 doesnt
present issues or challenges for us
IFRS 9 - Financial Instruments

A logical, single classification approach for
financial assets driven by cash flow
characteristics and business model
Improvements to own credit for financial
liabilities
Impairment
A much needed and strongly supported forwardlooking expected loss model
Hedge accounting
An improved and widely welcomed model that
better aligns accounting with risk management
Question 3
Operationally, which sections of IFRS 9 are most
important to your company or clients?
A.
B.
C.
D.
Classification and Measurement

Impairment
Hedging
All are about equally important

Classification & Measurement a superior

approach
Logical and principle-based, single classification approach

driven by cash flow characteristics and business model within which
the financial assets are being managed
eliminates complex bifurcation requirements
Improved reclassification rules consistent with how the assets

are being managed
financial assets reclassified between measurement categories only
when the business model for managing them changes
Solution to own credit concerns for financial liabilities

P&L volatility will no longer result from changes in own credit, while
information on own credit will still be available for users
Elimination of IAS 39 tainting rules
The IFRS 9 classification model for assets

Business
model = hold
to collect
Business
model = hold
to collect and
sell
Other
business
models
Cash flows are

solely payments of
principal and
interest (SPPI)
Amortised
cost
FV on balance
sheet and AC in
P&L*
FVPL
Other types of
cash flows
FVPL
FVPL
FVPL
FVOCI
*Excludes equity investments. Can elect to present FV changes in

OCI.
Business model test
10
Factual assessment based on how assets are managed:

Not based on intent for individual asset
Typically observable through activities that the entity undertakes
Anchor is how cash flows are realised
Reclassify only if business model changes

Hold to collect (amortised
cost)
Generate value by collecting
contractual cash flows
Consider past sales information
and future expectations
Some sales may be consistent if
infrequent or insignificant
Hold to collect and sell (FVOCI)

Generate value by collecting
contractual cash flows AND
selling
Involves greater frequency and
volume of sales eg liquidity
needs, interest yield
management, asset/liability
management
Question 4
11
Regarding use of a business model approach for

Classification and Measurement:
A. Makes perfect sense; accounting should be aligned

with managements interests and actions
B. Adds too much complexity versus IAS 39
C. Disagree with both IFRS 9 and IAS 39; all financial
assets should be at FVTPL
D. Dont know; no opinion
Solely Payments of Principal and Interest

(SPPI) characteristics
Contractual cash flows consistent with a basic lending
arrangement (simple instruments)
Principal is the fair value of the financial asset at initial
recognition
Interest is consideration for:
time value of money and credit risk;
basic lending risks(eg liquidity risks);
other associated costs(eg administrative costs); and
a profit margin
A modified time value of money element is permitted

as long as the effect of the modification on the cash
flows is not significant.
12
Question 5
13
It is possible, in a company, that the exact same financial

asset could be accounted for in 3 different ways. Does
this make sense?
A. Yes; accounting should follow the business model
B. No; identical assets should always be accounted for
in the same way
C. With adequate disclosures, it doesnt matter
D. Dont know; no opinion
Alternative Classifications
14
Financial Assets - Fair Value Option

Available in cases of accounting mismatch
Equity investments FVOCI alternative
Available for investments in equity instruments which are not held
for trading
Features:
instrument by instrument
dividends recognised in P&L
no recycling
no impairment
Financial liabilities own credit
15
designated under the fair value option (FVO)
Financial statements IFRS 9

Balance sheet
Financial liabilities
FVO
Full FV
P&L
Gain or loss
all FV
except own credit
OCI
Gain or loss
FV
due to own credit*
* Not recycled
Otherwise, P&L gain when own credit deteriorates, loss when it improves
Required by IFRS 9 for liabilities under the FVO
IFRS 9 allows the own credit requirements to be early applied in isolation
Treatment of financial liabilities is carried forward from

IAS 39 essentially unchanged
Impairment

Benefits of the expected loss model
17
Forward-looking model that is responsive to changes in

credit risk and responds to the calls of the G20 and
others
Broader range of information required to be considered
Ensures more timely recognition of expected credit losses
Elimination of IAS 39 threshold
Builds on existing systems to balance costs and benefits

Approximates 2009 ED in more operational manner
Single model reduces complexity of multiple approaches

Enhanced disclosures:
Illustrate how an entity has applied the requirements
Show assets which have significantly increased in credit risk
Overview of general model
18
Change in credit quality since initial recognition

Expected credit losses
recognised
12-month expected credit
losses
Lifetime expected credit

losses
Lifetime expected credit

losses
Interest revenue
Gross basis
Gross basis
Stage 1
Performing
Stage 2
Underperforming
Net basis
Stage 3
Non-performing
12 month expected credit losses
19
When to recognise 12-month expected credit losses?

Performing assets, ie
No significant increase in credit risk has been
determined
Low credit risk simplification can be used to make this
determination (for example investment grade)
12 month expected credit losses are portion of the lifetime
expected credit losses they are not the expected cash
shortfalls over the next 12 months
Lifetime expected credit losses

When to recognise lifetime expected credit losses?
Underperforming assets, ie:
A significant increase in credit risk has been determined
30 Days Past Due rebuttable presumption
Non performing assets, ie:
Asset is credit impaired
90 Days Past Due rebuttable presumption
20
Question 6
21
Regarding the recognition of impairment losses, do you

prefer:
A. The expected loss emergence model required by
IFRS 9
B. The FASBs full Day 1 expected loss emergence
model
C. Neither the IASB should have retained the existing
incurred loss model
D. Some other method
Determining whether credit risk has

increased significantly
Change in credit risk over the life of the instrument (ie risk of a
default occurring)
Compared to credit risk at initial recognition
Relative rather than absolute assessment
Need to determine what is meant by default
Maturity matters
Not changes in expected credit losses
Can be done on an individual or collective basis
Does not require a mechanical assessment but need to use
reasonable and supportable information
22
Determining whether credit risk has increased

significantly operational simplifications
23
High quality financial instruments (low credit risk)

choice to assume no significant increase in credit risk therefore
continue to recognise 12 month expected credit loss
30 days past due

rebuttable presumption that credit risk has increased significantly
therefore recognise lifetime expected credit loss
Trade receivables (that contain a significant financing

component) and lease receivables
accounting policy choice to recognise lifetime expected credit loss
Trade receivables (that do not contain a significant financing

component)
requirement to recognise lifetime expected credit loss
Measuring expected credit losses

Expected credit losses need to reflect:
Probability weighted outcome
must consider possibility that default will/will not occur
Time value of money

discount at effective interest rate or an approximation thereof
Reasonable and supportable information

available without undue cost or effort at the reporting date about
past events, current conditions and forecasts of future economic
conditions
Particular measurement methods are not prescribed
24
Reasonable and supportable information
25
Borrower specific factors:

changes in operating results of borrower, technological advances that
affect future operations, changes in collateral supporting obligation
Macro-economic factors:
house price indexes, GDP, household debt ratios
The data sources could be:

Internal data - credit loss experience and ratings
External data - ratings, statistics or reports
Historical information can be used as a base but must be

updated to reflect current conditions and future forecasts
Disclosures
Quantitative
26
Qualitative
Reconciliation of allowance accounts

showing key drivers for change
Inputs, assumptions and techniques used to

estimate expected credit losses (and
changes in techniques)
Explanation of gross carrying amounts

showing key drivers for change

determine significant increase in credit risk
and default
Gross carrying amount per credit risk grade

or delinquency
Write-offs, recoveries, modifications

determine credit impaired
Write off policies, modification policies,

collateral
Transition Resource Group for Impairment of

Financial Instruments (ITG)
27
The ITG was established to provide support for the IASBs stakeholders who
are implementing the new expected credit loss requirements:
Forum for questions regarding implementation
Make the IASB aware of implementation issues any actions required
would follow normal due process
Educational role
Limited life during the transition period
Will not publish any guidance
Three meetings to date; one introductory conference call in December 2014
and two face to face meetings in April and September 2015.
One issue relating to revolving credit facilities has been raised with the IASB:
The staff dis not propose any further action in relation to this issue
The IASB noted the issue but observed that the requirements of IFRS 9
were clear
Next ITG meeting - 11th December 2015

Convergence

Convergence with the FASB
29
An important consideration throughout the project

Lack of convergence - disappointing for all of us
Ultimately, the IASB decided that it was most important to
improve IFRS on a timely basis.
IFRS 9 is a complete package which includes:
a logical, single classification approach for financial assets
including improvements to own credit
a single and more forward looking impairment model for
financial instruments and
a hedge accounting model that aligns risk management more
closely with accounting.
30
Current Status* of the FASB Financial Instruments related

projects:
Project
Current Stage
Estimated
Completion
Classification and
Measurement
Final Standard
Q4 2015
Hedge Accounting
Exposure Draft
Q1 2016
Impairment
Final Standard
Q1 2016
* Per FASB website as at 10th November 2015
Question 7
31
Regarding convergence on Financial Instruments as a

whole:
A. Convergence is/ was critical. IFRS 9 should not have

been finalised at this time
B. Convergence, while desirable, is not critical. The
IASB was correct to finalise IFRS 9 when it did.
C. For financial instruments, convergence is not
important and did not need to be a joint project
D. Some other answer
Question 8
32
Having listened to us, which of the below describes what

you think about IFRS 9?
A.
B.
C.
D.
Its more difficult

Its easier than I thought
Youve confirmed my assessment of IFRS 9
I wish we had stayed with IAS 39
Hedge accounting
The views expressed in this presentation are those of the

presenter,
Accounting and risk management
34
Feedback on IAS 39: Recognition and Measurement

Lack of an overarching principle; complex and rule-based
Inability for preparers to reflect hedges in financial statements
Hard for users to understand risk management practices
Solutions in IFRS 9: Financial Instruments

Major overhaul of hedge accounting
Align accounting treatment with risk management activity
Enable preparers to better reflect hedging in financial statements
Provide disclosures to help users understand risk management
and its impact on the financial statements
Hedge Accounting - major improvements
35
Designate risk components of non-financial instruments

Ability to hedge aggregated exposures (combinations of
derivatives and non-derivatives)
Introduction of costs of hedging to improve the transparency
around some hedging instruments
A principle-based hedge effectiveness assessment to achieve
hedge accounting
Disclosures that meet the objectives of understanding the
hedged risks; how those are managed; and effect of hedging
A new approach to how accounting interacts with risk
management
Designating Risk Components
36
Example hedging a component of a non financial item

Measuring the
success of hedging
jet fuel contracts
with crude oil
futures
Portion
unreflective
of hedge
Crude oil
hedging
instrument
IAS 39
Jet fuel
price
Gas oil
price
IFRS 9
Crude oil
price
Hedging Aggregated Exposures
37
Example: hedging commodity price & FX risk

Commodity
supplier
US$
Commodity
Commodity
futures
contract
US$
US$
FX forward
contract
US$
Aggregated
exposure
Manufacturer
Not an eligible
hedged item
under IAS 39
Costs of hedging
38
Costs of
hedging
Time value
of options
Forward element of
forward contract
Foreign currency
basis spreads
New accounting approach should result in less volatility in P&L

and aid the alignment of accounting and risk management
Hedge effectiveness
39
Hedge
effectiveness
Hedge effectiveness test

1. Economic relationship
2. Effect of credit risk
3. Hedge ratio
Measuring and recognising

hedge ineffectiveness
Assessment of hedge effectiveness is now more closely aligned

with risk management
Disclosures
40
Hedge accounting
disclosures
Risk
management
strategy
Amount, timing
and uncertainty
of future
cash flows
Effects of hedge
accounting on
the primary
financial
statements
Specific
disclosures for
dynamic
strategies and
credit risk
hedging
Questions and comments
41
www.pwc.com
Norma Internacional de
Informacin Financiera
No. 9
Instrumentos Financieros
Los retos de su aplicacin para las
empresas no financieras en Colombia
Agenda
Introduccin
Clasificacin y medicin
Tasa de inters efectiva
Deterioro
Cobertura
Puntos clave
PwC
Introduccin
Estado
Servicio pblico
NIC 39
NIIF 9
versiones
iniciales
NIIF 9
versin
final
PwC
Activos financieros
NIC 39
Mantenidos hasta
el vencimiento
NIIF 9
Costo amortizado
Cuentas por cobrar y

prstamos
Disponibles para la
venta
Negociacin
PwC
Valor
Razonable
Estado de
resultados
ORI
Activos financieros
Inversiones en instrumentos
de patrimonio
Inversiones en instrumentos
de deuda
PwC
Instrumentos de patrimonio
Instrumentos de patrimonio medidos al
valor razonable a travs del estado de
resultados
Opcin de elegir la medicin a travs del
ORI sino se tienen para negociar
No se reciclan los efectos del ORI pero si
se pueden transferir dentro del
patrimonio
Los dividendos se reconocen en el estado
de resultados
La exencin de costo para instrumentos
de patrimonio no cotizados fue
eliminada
PwC
Instrumentos de deuda Solo pagos de principal e intereses
Los flujos de caja

consisten solo en
capital e intereses
SPPI
PwC
Instrumentos de deuda Ejemplo 1
Chocolate Fanatic posee un bono que paga intereses a tasa libre de riesgos y es
convertible en acciones hasta el 31 de diciembre de 2010. El bono tiene vencimiento el 31
de diciembre de 2011 y paga un inters anual del 5%.
No solo paga principal e intereses VR a travs

del ER
PwC
Chocolate Fanatic posee varios bonos indexados por inflacin denominados en dlares
Australianos. Los bonos tienen vencimiento el 31 de diciembre de 2011 y pagan un inters
anual de 5% + CPI (ndice de inflacin anual en Australia).
Si paga solo principal e intereses Costo

Amortizado
PwC
Chocolate Fanatic posee bonos que vencen el 31 de diciembre 2011. Los bonos pagan
intereses anuales del 5% y estn indexados al EBITDA del deudor (ganancias antes de
intereses, impuestos, depreciacin y amortizacin).
Depende - VR a travs del ER o Costo

Amortizado
PwC
Chocolate Fanatic posee un bono que paga una tasa de inters variable con vencimiento el
31 de diciembre de 2011. Los trminos le permiten a Chocolate Fanatic elegir la tasa de
inters. En cada fecha de cambio de tasa de inters, el titular puede optar por pagar 3
meses LIBOR por un plazo de 3 meses o 1 mes LIBOR por un plazo de 1 mes.
Si paga solo principal e intereses Costo

Amortizado
PwC
Instrumentos de deuda Modelo de negocios
Mantenido
para recaudar
Para determinar el objetivo

del modelo de negocio
Considere lo siguiente:
La poltica de la compaa para
manejar activos financieros.
Mantenido para
recaudar y vender
Valor razonable a
travs del resultado
El modelo de negocio no depende
Evaluacin
del modelo
de negocio
de las intenciones de la gerencia

para cada instrumento.
La clasificacin no es una libre
eleccin.
nicamente ventas poco
frecuentes.
PwC
Modelo de negocio Ejemplo 1
La entidad espera efectuar inversiones de capital en 5 aos e invierte un exceso
de efectivo en activos financieros para fondear dichas inversiones.
El objetivo es maximizar el retorno de los activos financieros.
La entidad mantendr algunos activos financieros para recaudar flujos de

efectivo y cuando se presenten oportunidades har ventas para realizar ganancias.
Cul es el modelo de negocios para este activo?
Mantenido para
recaudar
Mantenido para
recaudar y vender
VR ER
La entidad toma decisiones en la marcha sobre mantener para recaudar o vender

maximizando el retorno.
Cuando la entidad invierte sus excesos de caja en activos financieros de corto plazo,
que reinvierte en nuevos activos financieros de corto plazo y solo ocurren ventas
insignificantes, esto puede cumplir el modelo de mantener para recaudar.
PwC
Modelo de negocio Ejemplo 2
Un asegurador mantiene activos financieros para fondear sus reservas de seguros.
Efecta importantes compras y ventas para rebalancear el portafolio y cumplir los
requerimientos de flujos de caja segn se van necesitando.
Cul es el modelo de negocios para este activo?
Mantenido para
recaudar
PwC
Mantenido para
recaudar y vender
VR ER
Para cumplir el objetivo de fondear las reservas de seguros, la entidad recauda

flujos de caja cuando se dan los vencimientos y vende activos financieros para
cumplir los requerimientos de caja.
Tanto recaudar como vender son actividades esenciales del modelo de negocio.
Instrumentos de deuda resumen y otros
Los flujos de caja
son solo capital e
intereses?
Si
(instrumentos de
deuda: prstamos y
cuentas por cobrar,
inversiones con
inters fijo)
No
Cul es el modelo
de negocio?
Cul es la
categora de
medicin?
Hay alguna opcin

alternativa?
Mantenido para
recaudar flujos
de caja
contractuales
Costo amortizado
Valor razonable a
travs del estado de
resultados
Opcin *
Mantenido para
recaudar flujos
de caja y vender
Valor razonable a
travs de ORI con
reciclaje
Valor razonable a
travs del estado de
resultados
Opcin *
Irrelevante
Valor razonable a
travs del estado
de resultados
* Puede de manera irrevocable designarse como valor razonable a travs del estado de resultados si se reduce o elimina una
discrepancia contable
PwC

Lo bsico
Cmo funciona la Tasa de inters efectiva?
5%
Banco
5%
Pago
1,000
5%
1,000
980
940
960
990
920
930
950
970
910
Vencimiento
VR costos de
transaccin = 900
(1,000 -100)
Cierre ao 1
Cierre ao 2
Cierre ao 3
9%
9%
La tasa de inters efectiva es un mtodo

para alocar el ingreso o gasto en el
perodo aplicable
Da 0
900
900
PwC
9%
Prestatario
1,000

Lo bsico
Entonces, los registros en el ao 1 seran los siguientes
Dr Gasto intereses
81
Cr Deuda
31
Cr Efectivo
50
PwC

Cambios en los flujos de caja
Los flujos de caja rara vez ocurren en lnea con las expectativas
Variacin en la cantidad de los flujos de efectivo, tiempo o ambos
Ejemplos:
Tasas de referencia
ndices estrechamente
relacionados (ej., CMS)
PwC
Cambios en
las tasas de
inters del
mercado
(NIC
39.AG7)
Cambios en
estimaciones
de pagos
/recaudos
(NIC
39.AG8)
Ejemplos:
Pagos anticipados
EBITDA

Requerimientos de la NIC 39. AG7
La reestimacin de los flujos de efectivo para instrumentos de tasa flotante
normalmente no tiene un impacto significativo sobre el valor en libros
1.000
50
Prestamista
Cierre ao 1
50
60
50
60
Cierre ao 2
Cierre ao 3
Descontando
Descontando
Ahora la tasa
elestos
nuevo
de inters
flujos
flujode
del
decaja
caja
mercado
alal5%
6%sese
mantendra
tendra
el
cambia
un
valor
valor
en
a 6%
de
libros
1,000
de 1,000
5%
Prestatario
6%
5%
6%
5%
1.000
LaVLTIE
se actualiza sobre el cambio en los flujos de efectivo con base
=
en1.000
las tasas de inters del mercado
PwC
Las primas, descuentos, cuotas y costos debern amortizarse

Ejemplo de la NIC 39.AG8 Instrumento de tasa fija
Cmo funciona la tasa de inters efectiva?
1,000
-100
50
Prestamista
50
50
Costo amortizado inmediatamente despus del 464 [despus del reembolso anticipado de CU500]
reembolso
Cierre ao 1
Cierre ao 2
Cierre ao 3
Nuevos
flujos
de ao
efectivo
descontados
[pagos
Al final
del
2 el
prestatario
paga482
50%el
Al
comienzo
se esperaba
pagoprevistos en el plazo de un ao
(reembolso de CU500 + cupn de CU25
(500)
en el vencimiento descontado a la TIE original de 9%)]
Ajuste de actualizacin
18
900
PwC
5%
Prestatario
5%
500
25
5%
1,000
500
Deterioro de activos financieros

NIC 39 Prdida incurrida
Paso 1 Evidencia objetiva del

deterioro
Paso 2 Clculo del monto
recuperable
Paso 3 Registro del deterioro en el
estado de resultados
PwC
DC0 - Informacin pblica

NIIF 9 Con elemento de prdida esperada
Cambio en la calidad crediticia desde el reconocimiento inicial
Estado 1
Sin deterioro significativo
(Reconocimiento inicial*)
Estado 2
Con deterioro significativo
(Activos con incremento
significativo en el riesgo
crediticio desde el
reconocimiento inicial* )
Estado 3
Deteriorados
(Con evidencia objetiva de
deterioro)
Reconocimiento de Prdida Crediticia Esperada

PCE de 12 meses
PCE todo el
perodo
PCE todo el
perodo
Inters efectivo sobre

el valor en libros
bruto
Inters efectivo sobre el

valor en libros (es decir,
neto de la provisin
crediticia)
Ingreso de intereses
Inters efectivo sobre
el valor en libros
bruto
*excepto para los activos deteriorados originados o adquiridos

PwC

Medicin y simplificaciones operacionales
Cuentas por cobrar o activos comerciales que no contienen
un componente financiero significativo:
Cuentas por
cobrar o activos de
contratos sin un
componente
financiero
significativo
Enfoque
simplificado:
PCE
PCE todo el
perodo
PwC

Medicin y simplificaciones operacionales
Cuentas por cobrar por arrendamientos y cuentas por cobrar
o activos comerciales que s contienen un componente
financiero significativo:
Cuentas por cobrar

comerciales o activos de
contratos con un
componente financiero
significativo + cuentas
por cobrar por
arrendamiento
PwC
Enfoque
simplificado
PCE todo el
perodo
Modelo
general
Monitoreo de
incrementos
significativos
en riesgos
crediticios
Opcin de
poltica
Qu es una cobertura?
Riesgos
financieros
Volatilidad del
estado de resultados
Contabilidad
de la cobertura
Derivativos para
cubrir riesgos
Tipos de coberturas
Designar la
cobertura
Cobertura del
valor
razonable
El riesgo es un
cambio en el
valor
razonable de
una posicin
El cambio en el VR de la
partida cubierta y el
instrumento de
cobertura se reconoce
en el P&G
Cobertura de
flujos de
efectivo
El riesgo es
una exposicin
a la variacin
de flujos de
efectivo
Los cambios en el
valor razonable de
instrumentos de
cobertura se
difieren en el ORI
Cobertura de
la inversin
neta
El riesgo es
una exposicin
al efecto de
conversin
La
ganancia/prdida
de divisas en el
instrumento de
cobertura se
difiere en el ORI
La
ineficacia
se reporta
en el P&G
Criterios de calificacin
Requerimientos de NIIF 9
Criterios de
calificacin
Solamente instrumentos
de cobertura y partidas
cubiertas elegibles
3
Documentacin y
designacin formal
Cumple los requisitos de

efectividad de la
cobertura
Criterios de calificacin
Efectividad de la cobertura Relacin econmica
Valor de la
partida
cubierta
Valor del
instrumento
de cobertura
Variable subyacente relacionado responde de manera similar

al riesgo cubierto
Componentes de riesgo
Componentes de riesgo de un contrato para la compra de
una lata de aluminio
Elementos del precio de la
compra contractualmente
especificada de aluminio:
Precio variable de
marcado del
aluminio
La exposicin de los precios de

mercado pueden designarse como
partida cubierta
Prima o descuento
por la calidad del
aluminio
Costos de conversin
Margen de ganancia
del vendedor
NIC 39
NIIF 9
Puntos clave
Instrumentos de patrimonio medidos al valor razonable a travs del
resultado a menos que se haga la eleccin de usar el ORI para los no
negociables.
Las entidades necesitan evaluar los instrumentos de deuda bajo el modelo de
negocios y evaluar si solo implican pagos de capital e intereses para determinar
si el modelo de medicin es costo amortizado o VR a travs del ORI.
Opcin para designar a VR a travs del resultado si existe una discrepancia
contable.
Puntos clave
Deterioro
Se pueden generar prdidas de primer da en todos los activos financieros
que no se midan al valor razonable a travs del estado de resultados, con lo cual
la provisin de deterioro puede ser ms grandes y con mayor volatilidad
Impacto mnimo sobre las cuentas por cobrar a corto plazo dada su
naturaleza a corto plazo
Una matriz de provisiones puede aplicarse para medir la provisin de
prdidas para las cuentas por cobrar a corto plazo. Sin embargo, debe
considerarse la informacin a futuro.
Desafo para aplicar el modelo general a activos que no estn en el alcance de
las simplificaciones operacionales (ej., ttulos de deuda) en tanto se necesite
evaluar cuando o si ha habido un incremento significativo en el riesgo crediticio
y medir la PCE por todo el perodo.
Puntos clave
Cobertura
La prueba de efectividad es ahora ms sencilla Elimina muchas de las
condiciones que hacan difcil aplicar la contabilidad de cobertura de acuerdo
con la NIC 39
Ms exposiciones pueden ser cubiertas. Por ejemplo, componentes de riesgo
de partidas no financieras
Muchas Gracias
Conferencia IFRS
Cartagena, Colombia
Implementacin de la NIIF15 Ingresos porcontratos con

clientes
AMARO GOMES
Miembro
IASB
ANTONIO CORONET
Ex CAO
TELEFNICA
IVN URREA
Socio
PwC
Implementing IFRS 15
Joint INCP and IFRS Foundation Conference,
Cartagena - November 2015

Introduction

Your panel
Chair: Amaro Gomes (IASB Member)
Ivn Urrea (Partner, EY)

Antonio Corone (former CAO, Telefnica)
Recent developments
May 2014
IASB
issues IFRS 15
with effective date
1 January 2017
May 2015
July 2015
IASB proposes to defer

effective date
of IFRS 15
by one year
IASB proposes
clarifications
to IFRS 15
September
2015
IASB issues amendment

to the effective date of
IFRS 15 to
1 January 2018
Joint IASB/FASB TRG discussions
End of
2015
Expected completion
of re-deliberations of
the proposed
clarifications to IFRS
15
TRG and the IASBs follow up

Activities of TRG
Information about the TRG at http://go.ifrs.org/RTRG
6 meetings held since formation of the group
Meetings not scheduled for 2016monitor questions and
submissions
Activities of TRGoverview of topics

submitted and discussed
submissions
discussed by
TRG
No further action
considered
by the Boards
Clarifications
Clarifications
Practical expedients
Practical expedients
* 1 topic arising out of November 2015 TRG meeting yet to be discussed

by the Boards
Where to access TRG discussions

Meeting reports
together with papers
and recordings of
meetings are available
on IASBs website
http://go.ifrs.org/RTRG
-meetings
Updated Submissions
log posted for every
TRG meeting
Where to access TRG discussions
Meeting reports
together with papers
and recordings of
meetings are available
on IASBs website
http://go.ifrs.org/RTRG
-meetings
Updated Submissions
log posted for every
TRG meeting
Follow up by IASB and FASB until now

The 8 topics considered by the Boards
Identifying performance obligations
Principal versus agent considerations
Licensing
Collectability
Non-cash consideration
Completed contracts on transition
Practical expedients on transition
Presentation of sales (or similar) taxes
10
July 2015 ED Clarifications to IFRS 15
11
Identifying performance obligations

New examples to clarify assessment of distinct within the
context of the contract
Objective of assessmentidentify when promised goods or
services in a contract are considered:
A bundle, ie a single performance obligation
Individually as separate performance obligations
Judgement required, reflecting level of integration,

interrelationship or interdependence of promises
Principle in #27(b) complemented by factors in #29 (not a checklist)

Identifying performance obligationsExamples
Contract to provide equipment & installation service.
Equipment functional without customisation & modification.
Installation could be performed by others.
Contract to provide equipment and related specialised
consumables. Consumables sold separately by entity.
Contract to produce multiple units of a unique, complex,
specialised device. Supplier manages contract (includes
procurement, managing subcontractors, manufacturing,
assembly & testing)
12
13
Principal versus agent considerations

Amendments to Application Guidance and Examples
Clarify the thought process to be followed
Control is the determining factorindicators complement
Indicators not a checklist; some more or less relevant depending
on facts and circumstances
Appropriately identify the specified good or service

Right to good or service provided by another party (eg ticket)
Bundle of goods or services
How control applies to services
14
Distinguishing licences
New paragraph in Application Guidance (and examples)
Clarify which activities significantly affect IP (so licence is a
right to access IP)
Change form or functionality of the IP
Benefits substantially derived/dependent on the activities
Activities dont affect the IP if it has significant standalone

functionality
Sales-based royalties constraint
Clarify application
if royalty relates only to licence or licence is predominant item
15
Practical expedients on transition

New practical expedients to permit:
use of hindsight in restating modified contracts
not to apply IFRS 15 to completed contracts at the beginning of
the earliest period presented (when using full retrospective
transition method)
Comparison of IASB and FASB decisions

Topic
16
IASB decision
FASB decision
Add IE
Amend Standard & add IE
Performance obligations
Distinct performance
obligations
Immaterial goods or services
Amend Standard
Shipping and handling

activities
Amend Standard
Licensing
Distinguishing licences
Royalties constraint
Contractual restrictions in
licences
Amend Standard & IE
When to assess the nature

of licence
Amend Standard
Amend Standard & IE
Amend Standard & IE
Amend Standard & IE
Comparison of IASB and FASB decisions

Topic
IASB decision
Principal versus agent

considerations
17
FASB decision
Amend Standard & add IE
Presentation of sales taxes
Amend Standard
Collectability
Amend Standard & IE
Non-cash consideration
Amend Standard & IE
Practical expedients on
transition
Modified contracts
Completed contracts
Amend Standard
Amend Standard
-
Accounting for completed

contracts on transition
Amend Standard
Clarifications ED Next Steps
18
Comment letters currently being analysed

IASB plans to complete substantive redeliberations by end of
2015
Finalise amendment next year
Implementing IFRS 15
some accounting considerations

IFRS 15 Core principle & 5-steps
20
Recognise revenue to depict transfer of goods or services in an

amount of consideration to which expected to be entitled
Identify the contract(s) with a customer
Identify the performance obligations in the contract
Determine the transaction price
Allocate the transaction price to the performance

obligations
Recognise revenue when (as) a performance

obligation is satisfied
Thank you
21
NIIF 15 Ingresos procedentes de

contratos con clientes
La nueva norma de ingresos
Alcance de la norma
Qu esta en el alcance o se ver
afectado por la nueva norma?
Contratos con clientes

Venta de algunos activos no financieros que no son del
giro normal de los negocios (PPE, activos intangibles, etc)
Qu esta fuera de su alcance?
Page 2
Contratos de arrendamientos
Contratos de seguros
Contratos de instrumentos financieros
Algunos intercabio no monetarios
Algunos acuerdos put options en la venta y recompra
Ingresos procedentes de contratos con clientes NIIF 15: la nueva norma de ingresos
Entrada el vigor y transicin
Fecha efectiva:
Perodos anuales iniciando o despes del 1 de enero de

2018
Adopcin temprana es permitida
Perodo de trancisin:
Retroactiva o retroactiva modificada

NIC 8 aplican revelaciones
Adopcin temprana
2014
2015
Emisin de la
norma (05/14)
Page 3
2016
Efectiva
2017
Aplicacin
retroactiva
2018
2019
Aplicacin retroactiva
modificada
Entrada el vigor y transicin
NIIF: Efectiva 1 de enero de 2018. Adopcin temprana permitida

US GAAP compaas pblicas: 15 de diciembre de 2017. Adopcin
temprana permitida (pero no antes de 15 de diciembre 2016)
Consideraciones
clave
A qu periodos
aplican?
A qu contratos
aplican?
Reconocimiento del
impacto de la
adopcin en los
EEFF?
Page 4
Mtodo retroactivo
Mtodo retroactivo
modificado
Todos los perodos presentados Solo el perodo mas reciente

presentado
Todos los contratos que han
Todos quellos contratos
existido durante todos los
existentes a la fecha de entrada
perodos presentados como si
en vigor (como si la norma
la norma hubiere aplicado
hubiere aplicado desde la firma
desde la firma del contrato
del contrato), as como todos
aquellos contratos firmados en
adelante.
Efecto acumulado de los
Efecto acumulado de los cambios
cambios sern presentados en sern reflejados en el balance de
el balance de apertura de
apertura de ganancias
ganancias acumuladas del
acumuladas en el perodo mas
primer perodo presentado
reciente presentado.
Resumen del modelo

Principio base: Reconocer ingresos ordinarios de la
transferencia de bienes y servicios comprometidos a los clientes
en un importe que refleje la contraprestacin que la empresa
espera que le corresponda a cambio de dichos bienes o
servicios.
Paso 1 :
Identificar el(los) contrato(s) con el cliente
Paso 2 :
Identificar las obligaciones separadas del contrato
Paso 3 :
Determinar el precio de la transaccin

Distribuir el precio de la transaccin entre las
obligaciones del contrato
Reconocer el ingreso cuando o en la medida que la
entidad satisface las obligaciones
Paso 4 :
Paso 5 :
Page 5
Resumen del modelo
Los retos de los cinco pasos
El modelo de 5
pasos viene con
complejidades y
retos
Contratos
Destacamos
algunos retos que
enfrentarn las
entidades
Identificar los
trminos del
contrato
Combinacin
de contratos
Modificaciones
de contratos
Practicas de
negocios
Identificar al
cliente
Exigibilidad
legal
Obligaciones
separadas
Precio de la
transaccin
Distribucin
Tiempo de
reconocimiento
Identificar los
bienes y
servicios
prometidos
Precio de
transaccin
base
Determinar
precios
separados
Transferencia
del control
Precios
variables
(bonos, devol,
descuentos)
Distribuir el
precio variable
Opciones de
recompra
Componente
financiero
significativo
Distribuir el
descuento
Identificar las
obligaciones
separadas
Tipos de
servicios y
garantias
Opciones de
concer un
derecho
material
Aportes no
monetarios
Pago a
proveedores
Principal vs.
agente
Cambios en
precio
Restricciones
Page 6
Vender y
retener
Acuerdos de
consignacin
Aceptacin del
cliente
Licencias
Medir el
progreso o
entrega de
control
Impactos de la nueva norma

No solo un cambio contable
Impacto en multiples
reas del negocio fuera
del rea financiera y
contable
Ambiente de
control
Planeacin
fiscal
Entrenamiento y
comunicacin
Operaciones
de negocio
Se requerirn nuevos
recursos para
implementar los
requerimientos
Asuntos
de
industria
Revenue
recognition
impacts
Procesos y
sistemas
Adm. proyectos
Informacin
gerencial
Relacin con
inversionistas
Beneficios a
empleados
Page 7
Impactos de la nueva norma

Factores de complejidad
Menos complejo
Page 8
Ms complejo
Ciclo de ingresos corto
Contratos de largo plazo
Unica lnea de negocios
Negocios diversos y multiples
Solo operaciones domsticas
Operaciones globales
Altamente centralizado
Decentralizacin
Buenos procesos de
estimaciones
Pobres procesos de estimaciones
Cambios en las obligaciones con

clientes
Multiples y dispersos sistemas de

informacin
Debil gestin y aceptacin del

cambio
Pocos o ninigun cambio a

obligaciones
Un ERP global
Fuerte administracin del

cambio en la organizacin
El nivel de complejidad depender de una serie de factores organizacionales

Qu deberan hacer las entidades?
1 2 3 4
Evaluacin
inicial
(diagnstico)
Disear e iniciar
un plan de
implementacin
Preparar
comunicaciones
y revelaciones
Monitorear la
implementacin
Puede parecer que hay suficiente tiempo. Sin embargo, los potenciales cambios
en algunas entidades pueden resultar significativos
Es prudente anticiparse a los impactos y estar preparados
Page 9
Qu se debera preguntar la entidad?

Preguntas de corto plazo
Negocio
Cual es el plan de la
gerencia para tener un
anlisis preliminar de
los impactos?
Cuando estara el
diagnstico?
Plan de
comunicaciones
Controles
internos
Trminos
contratos
Metricas de
estados
financieros
Datos
Cmo se planea monitorear los procesos de implementacin?
Se tiene claro las necesidades de informacin para las

revelaciones requeridas por NIC 8?
Page 10
Preguntas?
Page 11
Conferencia IFRS
Cartagena, Colombia
Implementacin por primera vez de las NIIF para

PYMES
MIKE WELLS
Director, Iniciativa de Educacin IFRS
IASB
LUIS A. CHAVEZ
Experto y Formador en NIIF
Servicio de Rentas Internas del Ecuador (SRI)
CLAUDIO DIAZ
Socio
KPMG
Overview of
the IFRS for SMEs
Cartagena, November 2015

The IFRS for SMEs
Issued in 2009
Amended in 2015 (effective 1 January 2017)
Simplified IFRSs, but built on an IFRS foundation
Completely stand-alone
the only fallback option to full IFRS is the option to
use IAS 39 instead of the financial instruments
sections of IFRS for SMEs
Designed specifically for SMEs

Internationally recognised
Who is the Standard aimed at?

Full
IFRS
Publically
accountable
IFRS for SMEs
Not publically
accountable, but
require GPFS
No requirement for GPFS

No IFRS requirement
eg, financials for

tax or partners
How does it differ from full IFRSs?
Tailored for SMEs

User needs
Costs and SME capabilities
Much smaller: 250 pages vs 3,000 in full IFRSs

Simplifications from full IFRSs
Some topics in IFRSs omitted if irrelevant to private entities
Where IFRSs have options, include only simpler option
Recognition and measurement simplifications
Reduced disclosures
Simplified drafting
Why would an SME want to adopt it?
Improved access to capital

This is the #1 issue with SMEs
Improved comparability
Improved quality of reporting as compared to
existing national GAAP
World Bank ROSC reports
Less of a burden for entities in jurisdictions where

full IFRSs or full national GAAP are now required.
Adoptions of the IFRS for SMEs
IFRS Foundation is developing profiles of

application of full IFRSs and the IFRS for SMEs
73 of the 140 jurisdictions require or permit the
IFRS for SMEs
14 are currently considering requiring or permitting
the IFRS for SMEs
IASB Implementation Support
Download standard and translations (eg Spanish)

SME Implementation Group
Develop non-mandatory guidance on the IFRS for SMEs
(Q&As)
Recommendations on the need to amend the IFRS for SMEs
Training material and translations (eg Spanish)

Multi-day train the trainer workshops
Update newsletter
Guidance to help micro-sized SMEs apply IFRS for
SMEs
Executive Briefing booklet
Presentations, webcasts, resource
Free self-study training materials

35 Modules (one for each Section of the Standard):
Explanation of all the requirements
Full text of the requirements
How to numerical examples
Other explanations
Discussion of important judgements

Comparison with full IFRSs
Test your knowledge multiple choice quiz
Apply your knowledge case studies
Free downloads from IASB
IFRS for SMEs (full standard, translations)

http://go.ifrs.org/IFRSforSMEs
Training materials (35 modules)

http://go.ifrs.org/smetraining
PowerPoint training modules (20 PPTs)

http://go.ifrs.org/trainingppts
Board and staff presentations

http://go.ifrs.org/presentations
Update newsletter
http://go.ifrs.org/smeupdate
Executive briefing booklet

http://go.ifrs.org/SMEguide
Updating the IFRS for SMEs

Comprehensive review
11
Initial comprehensive review: After 2 years

implementation experience
Fix errors and omissions, lack of clarity, and other
implementation problems
Also consider need for improvements based on
recent IFRSs and amendments
Thereafter: Once every three years

(approximately) omnibus exposure draft of updates
Main amendments
12
Permitting revaluation model for PPE

Aligning recognition and measurement requirements for
income tax with full IFRS
A few additional undue cost or effort exemptions, plus
guidance on application
required disclosure of reasoning
Most other amendments clarify or add guidance
rather than change underlying requirements
Section by Section
Highlights

Section 1
Small and medium entities
Defines SME as used by IASB:
not publicly accountable, and
publish general purpose financial statements for
external users
Listed companies may not use, no matter how small

Not publicly accountable:
debt or equity not traded, nor in preparation for being
traded, in a public market
do not hold assets in fiduciary capacity for broad group
as primary business
14
Section 2
Concepts and principles
15
Objective: information about financial position,

performance, cash flows for economic decision making
by a broad range of users
also shows results of stewardship of management over
resources
Qualitative characteristics: relevance, reliability, etc

Defines asset, liability, equity, income and expenses
Source of guidance if a specific issue is not addressed
in the IFRS for SMEs
Principles for offsetting
Section 3
Financial statement presentation
16
Fair presentation: presumed to result if IFRS for

SMEs is followed (maybe need for supplemental
disclosures)
Full compliance: State compliance with IFRS for
SMEs only if the financial statements comply in full
Comparatives: At least one year comparative
financial statements and note data
Section 4
Statement of financial position
17
May still be called balance sheet

Current/non-current split is not required if entity
concludes liquidity approach is better
Some minimum line items
And some items that may be in the statement or in
the notes
But sequencing, format, and titles are not
mandated
Section 5
Statement of Comprehensive Income
18
One-statement or two-statement approach

Must segregate discontinued operations
Must present profit or loss subtotal if entity has
items of other comprehensive income
If an SME presents consolidated financial
statements:
Bottom line (Profit or Loss in the income statement
and Total Comprehensive Income in the statement
of comprehensive income) is before allocating
those amounts to non-controlling interest and
owners of the parent
Section 6
Statement of Changes in Equity
19
Shows all changes to equity including

total comprehensive income
owners investments and withdrawals
dividends
treasury share transactions
Can omit if no owner investments or withdrawals

other than dividends
Section 7
Statement of cash flows
20
All SMEs must present a statement of cash flows

Option to use the
indirect method, or
direct method
to present operating cash flows
Section 8
Notes
21
Disclose basis of preparation (ie IFRS for SMEs)

Summary of significant accounting policies
Information about judgements
Information about key sources of estimation
uncertainty
Supporting information for items in financial
statements
Other disclosures
Section 9
Consolidation
22
Consolidation is required when parent-subsidiary

relationship except:
Sub was acquired with intent to dispose within one
year
Parent itself is a sub and its parent or ultimate
parent uses full IFRSs or IFRS for SMEs
Basis of consolidation: control

Consolidate all controlled SPEs
Section 10
Accounting policies
23
Change in accounting policy:

If mandated, follow the transition guidance as
mandated
If voluntary, retrospective
Change in accounting estimate: prospective

Correction of prior period error: restate prior
periods if practicable
Section 11
Basic financial instruments
24
Section 11 is an amortised historical cost model

with one exception:
Equity investments with quoted price or readily
determinable fair value are at fair value through
P&L.
Option to follow IAS 39 instead of sections 11 and

12
Even if IAS 39 is followed, make Section 11/12
disclosures (not IFRS 7 disclosures)
Section 12
Complex financial instruments
25
Financial instruments not covered by Section 11

are at fair value through profit or loss. This
includes:
Investments in convertible and puttable ordinary
and preference shares
Options, forwards, swaps, and other derivatives
Financial assets that would otherwise be in Section
11 but that have exotic provisions that could
cause gain/loss to the holder or issuer
Hedge accounting
Section 13
Inventories
26
At cost, which may be

specific identification for specialised items
FIFO or weighted average for others
Impairment (write down to estimated selling price

less costs to complete and sell)
Section 14
Associates
27
Option to use:
Cost model (except if published quotation then
must use Fair Value through P&L)
Equity method
Fair value through profit or loss (if impracticable,
then use cost)
Cost and FV models are not allowed by IAS 28.

Section 15
Joint ventures
Option to use:
Cost model (except if published quotation then
must use Fair Value through P&L)
Equity method
Fair value through profit or loss (if impracticable,
then use cost)
Proportionate consolidation is prohibited

Cost and FV models are not allowed by IAS 31.
Proportionate consol. is different in IFRS 11.
28
Section 16
Investment property
29
If fair value can be measured reliably without

undue cost or effort, use Fair Value through P&L
Otherwise, must treat investment property as
property, plant and equipment using Section 17
IAS 40 is pure accounting policy choice either

depreciation model or fair value through P&L.
Section 17
Property, plant & equipment
30
Historical cost depreciation impairment model,

revaluation model allowed under 2015 amendments
IAS 16 allows revaluation of PPE through equity.
Section 17 applies to investment property if fair value
cannot be measured reliably
Section 17 applies to property held for sale
Holding for sale is an impairment indicator
IFRS 5 requires separate treatment for non-current
assets held for sale
Section 17
Property, plant & equipment continued
31
Component depreciation only if major parts of an

item of PPE have significantly different patterns of
consumption of economic benefits
Review useful life, residual value, depreciation rate
only if there is a significant change in the asset or
how it is used
IAS 16 requires annual review
Impairment testing and reversal follow Section 27
Section 18
Intangibles other than goodwill
32
No recognition of internally generated intangible

assets
Amortise intangibles that are purchased separately,
acquired in a business combination, acquired by
grant, and acquired by exchange of other assets
Amortise over useful life. If unable to estimate useful
life, then use 10 years
Impairment testing follow Section 27
IAS 38 requires capitalisation of development costs.
IAS 38 does not amortise indefinite life intangibles
Section 19
Business combinations & goodwill
33
Acquisition method
Amortise goodwill. If unable to estimate useful life,
then must not exceed 10 years.
Impairment testing and reversal follow Section 27
Negative goodwill first reassess original
accounting. If that is ok, then immediate credit to
P&L
Goodwill amortisation is prohibited by IAS 38.
Section 20
Leases
34
Finance and operating lease classification

Measure finance leases at lower of FV of interest in
leased property and present value of minimum
lease payments
For operating leases, do not force straight-line
expense recognition if lease payments are
structured to compensate lessor for general
inflation
IAS 17 requires straight-line recognition of
operating lease payments
Section 21
Provisions and contingencies
35
Accrue if an obligation arising from a past event

and amount can be estimated reliably
Disclose (no accrual) contingent liability
Measure at best estimate
Large population weighted average calculation
Single obligation adjusted most likely outcome
Includes an appendix of examples
Section 22
Liabilities and equity
36
Guidance on classifying an instrument as liability or

equity:
Instrument is a liability if the issuer could be
required to pay cash
However, if puttable only on liquidation or death or
retirement of owner, then it is equity
Section 23
Revenue
37
Same principles as IAS 18 and IAS 11

Goods: Revenue recognised when risks and
rewards are transferred, seller has no continuing
involvement, measurable
Services and construction contracts: Recognised by
percentage of completion
Principle for measurement is fair value of

consideration received or receivable
Section 24
Government grants
38
All measured at the fair value of the asset received

or receivable
Recognition as income:
Immediately if no performance conditions are
imposed
If conditions, recognise when conditions are fulfilled
IAS 20 allows a wide range of methods of

accounting for government grants.
Section 25
Borrowing costs
39
All charged to expense when incurred

No capitalisation
IAS 23 requires capitalisation of borrowing costs

relating to an asset during construction.
Section 26
Share-based payment
Must recognise
Measure at fair value if practicable
If it is impracticable to determine the fair value of
the option or other instrument granted, the entitys
directors should use their judgement to apply the
most appropriate valuation method
IFRS 2 has an intrinsic value simplification.

40
Section 27
Impairment of assets
41
Inventories - write down selling price less costs to

complete and sell, if below carrying amount
Other assets - write down to recoverable amount, if
below carrying amount
Recoverable amount is the greater of fair value
less costs to sell and value in use
Section 28
Employee benefits
For defined benefit plans, use projected unit credit
calculation if entity is able to do so without undue
cost or effort. Otherwise, can simplify by ignoring:
estimated future salary increases;
future service of current employees (assume
closure of plan); and
possible future in-service mortality.
42
Section 29
Income tax
43
Previously based on full IFRS ED

Now amended to be based on IAS 12
Recognition of deferred tax asset/liability for timing
differences between accounting and tax
measurement of assets and liabilities
Section 30
Foreign currency translation
44
Functional currency approach similar to that in IAS

21
However, no recycling of gains or losses on net
investment in a foreign entity that are initially
recognised in other comprehensive income
Section 31
Hyperinflation
45
An entity must prepare general price-level adjusted

financial statements when its functional currency is
hyperinflationary
Approximately greater than 100% over three years
Section 32
Events after reporting period
46
Adjust financial statements for events after the

balance sheet date that provide further evidence of
conditions that existed at the end of the reporting
period (adjusting events)
Do not adjust for events or conditions that arose
after the end of the reporting period (disclosure
events)
Dividends declared after end of period are not a
liability
Section 33
Related party disclosures
47
Government departments and agencies are not

related parties simply by virtue of their normal
dealings with an entity
Disclosure of key management personnel
compensation only as one number in total
Fewer disclosures about transactions
Section 34
Specialised activities
48
Agriculture use historical cost model unless fair

value is readily determinable without undue cost or
effort
IAS 41 requires FVTPL for all biological assets
(except bearer-plants now PPE (ie IAS 16)) and
agricultural produce at point of harvest
Oil and gas and mining not required to charge
exploration costs to expense
Section 35
First-time adoption
49
Principleprepare current year and one prior

years financial statements as if the entity has
always applied the IFRS for SMEs
However:
there are many exemptions for restating specific
items; and
a general exemption for impracticability.
No sections covering these topics

Segment reporting
Earnings per share
Interim reporting
Assets held for sale
50
Thank you
51
Conferencia IFRS
de las Amricas
Seccin 35 Transicin a la NIIF para las PYMES
Aspectos clave en la implementacin
El futuro tiene muchos nombres. Para

los dbiles es lo inalcanzable. Para los
temerosos, lo desconocido. Para los
valientes es la oportunidad.
Vctor Hugo (1802 1885), poeta y novelista francs.
Alcance de la Seccin 35
Se aplicar a una entidad que adopte por primera vez la NIIF
para las PYMES, independientemente de si su marco contable
anterior estuvo basado en las NIIF completas o en otro conjunto
de principios de contabilidad generalmente aceptados (PCGA),
tales como sus normas contables nacionales, o en otro marco tal
como la base del impuesto a las ganancias local.
Aplicacin de la Seccin 35
Versin 2009: Una entidad solo puede adoptar por primera

vez la NIIF para las PYMES en una nica ocasin.
Versin 2015: Permite la aplicacin de los principios de la

Seccin 35 ms de una vez.
Informacin Comparativa
Se requiere que una entidad revele, dentro de un conjunto

completo de estados financieros, informacin comparativa con
respecto al periodo comparable anterior para todos los importes
monetarios presentados en los estados financieros, as como
informacin comparativa especfica de tipo narrativo y
descriptivo.
Fecha de transicin versus fecha sobre la que se informa

El estado de situacin financiera de apertura est elaborado a la fecha
de transicin a la NIIF para las PYMES
Procedimientos para preparar los estados financieros

en la fecha de transicin
Una entidad deber, en su estado de situacin financiera de
apertura de la fecha de transicin a la NIIF para las
PYMES:
1
Reconocer todos los activos y pasivos cuyo reconocimiento sea

requerido por la NIIF para las PYMES.
No reconocer partidas como activos o pasivos si esta NIIF no

permite dicho reconocimiento.
Reclasificar las partidas que reconoci, segn PCGA anteriores,

que son una partidas diferente segn NIIF para las PYMES.
Aplicar esta NIIF al medir todos los activos y pasivos reconocidos.
El principio general sobre el que se fundamente la

transicin
Importante:
El principio general sobre el que se fundamenta la
transicin a la NIIF para las PYMES implica que una
entidad que adopta por primera vez la norma debe aplicar
retroactivamente todas las secciones.
Por lo tanto, los primeros estados financieros
conforme a la NIIF para las PYMES se presentan
como si la entidad siempre hubiera aplicado la NIIF
para las PYMES.
Aplicacin retrospectiva en la transicin

Las polticas contables que una entidad utilice en su estado
de situacin financiera de apertura conforme a esta NIIF
pueden diferir de las que aplicaba en la misma fecha
utilizando su marco de informacin financiera anterior.
Los ajustes resultantes surgen de transacciones, otros
sucesos o condiciones anteriores a la fecha de transicin a
esta NIIF se reconocern en:
Ganancias acumuladas
(o, si fuera apropiado, en otra categora
dentro del patrimonio)
Excepciones a la aplicacin retroactiva (obligatorias)

(a) Baja en cuentas de activos financieros y pasivos financieros
(b) Contabilidad de coberturas.
(c) Estimaciones contables
(d) Operaciones discontinuadas
(e) Medicin de participaciones no controladoras.
Algunas exenciones a la aplicacin retroactiva

(opcionales)
(a) Combinaciones de negocios.
(b) Transacciones con pagos basados en acciones.
(c) Valor razonable como costo atribuido.
(d) Revaluacin como costo atribuido.
(e) Diferencias de conversin acumuladas.
Impracticabilidad en la reexpresin de saldos

Importante:
Cuando sea impracticable para una entidad la reexpresin
del estado de situacin financiera de apertura, en la fecha
de transicin, con relacin a uno o varios de los ajustes
requeridos por esta norma, realizar dichos ajustes en el
primer periodo para el que resulte practicable hacerlo.
A su vez, identificar los datos presentados en periodos
anteriores que no sean comparables con los saldos del
periodo que se reporta y revelar este hecho.
Informacin a revelar
Explicacin de la transicin a la NIIF para las PYMES
Una entidad explicar cmo afect la transicin del

marco de informacin financiera anterior a esta
NIIF a su situacin financiera, rendimiento
financiero y flujos de efectivo presentados.
Informacin a revelar
Conciliaciones
Los primeros estados financieros preparados conforme a
esta NIIF de una entidad incluirn:
(a) Una descripcin de la naturaleza de cada cambio en la
poltica contable.
(b) Conciliaciones de su patrimonio y su resultado,
determinado con los PCGA anteriores, con su
patrimonio y resultado, de conformidad con la NIIF
para las PYMES.
Otras consideraciones importantes

para una implementacin efectiva
NIIF: Proyecto de toda la empresa
La transicin a las NIIF no es slo un ejercicio tcnico que

se limita al cambio de un sistema de principios contables a
otro (valoracin y monitoreo de propiedades, planta y
equipo, activos biolgicos, instrumentos derivados,
impuestos
diferidos,
consolidaciones,
correccin
monetaria).
NIIF: Proyecto de toda la empresa
De acuerdo con las NIIF, son proyectos en s mismo, que

afectarn las distintas reas y estructuras de la organizacin
Funciones afectadas por la transicin a NIIF
Funciones / Normas
NIC 8
Cambios en
Polticas
Contables,
Estimaciones y
Errores
NIC 16
Propiedades,
Planta y Equipo
NIC 12
Impuesto sobre
las Ganancias
NIC 2
Inventarios
NIC 36
Deterioro del
Valor de Activos
NIC 38
Activos
Intangibles
NIC 17
Arrendamientos
NIC 37
Provisiones y
Activos y Pasivos
Contingentes
NIC 18
Ingresos
Ordinarios
Recursos Humanos
Crdito y Cobranzas
Marketing y Ventas
Produccin e I+D
Alta Administracin
Legal y Tributario
Sistemas de Informacin
Contabilidad y Finanzas
Fuente: Libro NIIF para PYMES Teora y Prctica
Mejores Prcticas
Ver la implementacin como un proceso.
Buscar el cierre de las brechas de conocimiento del
equipo considerando los requerimientos funcionales.
Involucramiento de la alta gerencia en la identificacin
de las tareas a realizar.
Conformacin
de
implementacin.
comisiones
por
rea
de
NIIF 1
Adopcin por
primera vez de las
NIIF
Mejores Prcticas
Cada comisin establece su plan de trabajo.
Se trabaja con MS Project centralizado, u otros utilitarios.
Cada comisin establece el resultado de su anlisis, mismo
que es conocido por la gerencia para convocar en Junta
General.
Aplicar benchmarks internacionales, al identificar Estados
Financieros de compaas que estn en la misma actividad y
que han reportado conforme a las NIIF.
Empieza por hacer lo necesario, luego lo

que es posible, y de pronto te encontrars
haciendo lo imposible.
San Francisco de Ass (1182 1226), dicono italiano.
Copyright por Luis A. Chvez. Todos los Derechos Reservados.
SECC 35 Transicin a
la NIIF para las
PYMES
Claudio Enrique Daz Andrade
Socio de KPMG
1. Adopcin en Colombia grupo 2

NIIF para PYMES
Fuente
Direccionamiento
Estratgico CTCP
Ao 2012
Grupo 2
Referencia
Tipo de Empresa
Empresas con:
Activos totales > 500 y < 30.000 SMMLV o
planta de personal > 11 y < 200 trabajadores
Micro empresas con:
Activos totales por valor mximo a 500
SMMLV Planta de personal no superior a 10
trabajadores
Ingresos brutos anuales ao anterior 6.000
SMMLV.
2. Polticas contables
Secc 2.35
Requerimiento de las NIIF PYME que traten temas

similares y relacionados
Definiciones, criterios de reconocimiento del Marco

Conceptual
Pronunciamientos ms recientes de otras instituciones

3
emisoras de normas
Literatura contable
4
Prcticas aceptadas en los diferentes sectores de
actividad, en la medida que no entren en conflicto con 5
NIIF PYME
3. Marco Conceptual
Hiptesis fundamentales
Base de la acumulacin (o devengo):

SECC 2.36
Se describen los efectos de las

transacciones en los periodos en que
esos efectos tienen lugar.
Si los cobros y pagos resultantes se
producen en un periodo diferente, se
deben reconocer en el momento.
Negocio en marcha:
SECC 3.8
Los EEFF se preparen bajo el
supuesto de que la entidad est en
funcionamiento.
Continuar su actividad dentro del
futuro previsible.
4. Asuntos de inters con relacin al

Balance de Apertura bajo NIIF PYME
1. Polticas
contables
acordes con las
NIIF PYME
4. Estados
financieros bajo
NIIF PYME con
opinin de
auditores
Moneda funcional
3. Declaracin
explicita y sin
reserva de la
aplicacin de las
NIIF PYME
2. Preparacin
del balance de
apertura
5. Emisin
pblica de
Estados
Financieros bajo
NIIF PYME
5. Asuntos de inters con relacin al

Balance de Apertura bajo NIIF PYME
Una entidad usar las mismas polticas contables en su estado de situacin financiera de apertura conforme
a las NIIF PYME y a lo largo de todos los periodos que se presenten en sus primeros estados financieros
conforme a las NIIF PYME (Intermedios). Estas polticas contables cumplirn con cada NIIF vigente al final
del primer periodo sobre el que se informe segn las NIIF PYME.
La compaa debe preparar su balance de apertura teniendo en cuenta lo siguiente:

a) Reconocer todos los activos y pasivos cuyo reconocimiento sea requerido por las NIIF, Secc 35.7A
b) No reconocer partidas como activos o pasivos si las NIIF no lo permiten, Secc 35.7B
c) Reclasificar partidas reconocidas segn los PCGA anteriores como un tipo de activo, pasivo o
componente del patrimonio, que conforme a las NIIF son un tipo diferente de activo, pasivo o
componente del patrimonio Secc 35.7C; y
d) Aplicar las NIIF al medir todos los activos y pasivos reconocidos.
Los primeros estados financieros conforme a las NIIF PYME son los primeros estados financieros anuales en
los cuales la entidad adopta las NIIF, mediante una declaracin, explcita y sin reservas, contenida en tales
estados financieros, del cumplimiento con todas las NIIF PYME.
6. Exenciones opcionales de Impacto Mayor Secc 35
3. Arrendamientos
(Secc35.10K)
4. Reevaluacin
como costo
atribuido
5. Inversiones en
subsidiarias,
negocios
conjuntos y
asociadas
(Secc35.10F)
(Secc35.10D)
7. Valuacin a
valor razonable de
activos y pasivos
financieros en su
reconocimiento
inicial
(NIC 39)
2. Valor
razonable como
costo atribuido
para activo fijo
8. Contratos de
concesin de
servicios
(Secc35.10I)
(Secc35.10C)
Impacto
Mayor
1. Combinacin
de negocios
(Secc35.10A)
11. Impuestos
diferidos
(Secc35.10H)
6. Exenciones opcionales de Impacto Menor Secc 35
15. Pagos basados

en acciones
(Secc35.10B)
12. Extincin de
pasivos
financieros con
instrumentos de
capital
(CINIIF 19)
10. Diferencias
por conversin
acumuladas
13. Revelaciones
comparativas de
periodos
anteriores
(NIIF7)
(Secc35.10E)
9. Actividades de
extraccin
(Secc35.10J)
16. Instrumentos
financieros
compuestos
(Secc35.10G)
Impacto
Menor
14. Pasivos por

desmantelamientos
incluidos en el
costo de activos
fijos
(Secc35.10L)
7. Exepciones Obligatorias Secc 35
Estimaciones
contables
(Secc 35.9C)
Participacin no
controladora
(Secc 35.9E)
Contabilidad de
cobertura
(Secc 35.9B)
Cancelacin de activos
y pasivos financieros
(Secc 35.9A)
Excepciones
Obligatorias
8. Asuntos de mayor relevancia

en IFRS PYME
Sec 3.12
SEC 2.26
Impracticable La aplicacin de un requerimiento es impracticable cuando la

entidad no pueda aplicarlo tras efectuar todos los esfuerzos razonables para
hacerlo sin incurrir en un costo o esfuerzo desproporcionado.
Materialidad Las omisiones o inexactitudes de partidas tienen

importancia relativa cuando pueden, individualmente o en su conjunto,
influir en las decisiones econmicas tomadas por los usuarios sobre la
base de los estados financieros. La importancia relativa depender de
la magnitud y de la naturaleza de la omisin o inexactitud, enjuiciada
en funcin de las circunstancias particulares en que se hayan
producido.
Conferencia IFRS
Cartagena, Colombia
Panel de discusin:- Temas de transicin NIIF
AMARO GOMES
Miembro
IASB
JORGE GIL
Director General de la FACPCE y
Ex Presidente del GLENIF
FELIPE JNICA
Socio
EY
WILMAR FRANCO FRANCO
Presidente
Conferencia IFRS
Cartagena, Colombia
Sesiones paralelas: Requerimientos NIIF actuales y posteriore
Contratos de seguros
DARREL SCOTT
Miembro
IASB
LIONEL MOURE
Socio
Deloitte Argentina
Insurance
IFRS 4 (phase II)
Joint IFRS Foundation and INCP IFRS Conference,
Cartagena November 2015
Darrel Scott
IASB member
Agenda
Introduction
Contracts with participation features
IFRS 9 and Insurance
Outstanding issues and next steps
Appendix
Introduction

Need for a global insurance standard
IFRS 4 Insurance Contracts is an interim Standard

Permits continuation of wide variety of practice
Includes a temporary exemption from general
requirement that accounting policies should be
relevant and reliable
IFRS 4 does not provide transparent information about
the effect of insurance contracts on financial statements
Existing accounting makes comparisons difficult
between products, companies and across jurisdictions
How will accounting improve?

Existing issues
Proposals
Variety of accounting
treatments
Consistent accounting
Estimates not updated
Estimates reflect current

information
Discount rate based on

investment
Discount rate reflects cash

flows of the contract
Lack of discounting
Measurement reflects
discounting where significant
Little information about

options and guarantees
Measurement reflects full

range of possible outcomes
Identify and recognise the contract

The defining
feature of an
insurance
contract is the
presence of
significant
insurance risk.
Entity may need to separate components from an

insurance contract
Distinct
goods and
services
Embedded
derivatives that are
not closely related
Insurance
component
Distinct
investment
components
Measure using insurance

contracts standard
Measure using financial
instruments standards
Measure using revenue
recognition standard
Entity recognises contract from beginning of coverage

period, unless contract is onerous or payments due before
the coverage period begins
Measure contract at initial recognition

Measurement
of an insurance
contract
incorporates all
available
information, in
a way
consistent with
observable
market
information.
Contractual service
margin
Fulfilment cash flows
Future cash flows
Contractual service
margin is measured as the
difference between the riskadjusted present value of
expected inflows and
outflows at inception.
expected cash flows from

premiums, claims and benefits
Risk adjustment
assessment of uncertainty
about amount of future cash
flows and its cost to entity
Fulfilment cash flows is a

probability-weighted
estimate of cash inflows and
outflows that will arise as the
entity fulfils the contract.
Discounting
adjustment that converts
future cash flows into current
amounts
Remeasure in subsequent periods

IASB believes
a current value
measure of an
insurance
contract
provides the
most useful
information
about
insurance
contracts in the
statement of
financial
position.
Contractual service
margin
Future cash
flows
Risk adjustment
Discounting
CSM is adjusted by changes

in estimates and is allocated
to profit or loss on basis of
passage of time.
For some contracts, changes
in estimate include entity
share of policyholder assets.
In each reporting period, an
entity remeasures the
fulfilment cash flows using
updated assumptions about
cash flows, discount rate and
risk.

Recognition of changes in estimates
Contractual service
margin
Profit or loss:
underwriting result

Future cash flows
Changes related to past and current services

reflected in profit and loss
Changes related to futures services unlock
CSM
Any changes not related to future services
reflected in profit and loss

Contractual service
margin
10
Profit or loss:
underwriting result

Changes related to past and current services
reflected in profit and loss as entity is
released from risk
Risk Margin
Changes related to futures services unlock

CSM

Contractual service
margin
11
Unwind of the discount (time value of

money) in profit or loss
Option to present the effect of change in rate
on fulfilment cash flows in either:
OCI, or
Profit or loss
Profit or loss:
investment result
Discounting
Other comprehensive income

Contractual service
margin
12
Profit or loss:
underwriting result

Recognise CSM in profit or loss as entity
provides coverage:
Passage of time
Number of contracts in force

The different
types of
changes in
estimates are
recognised in
different parts
of the financial
statements.
Contractual service
margin
13
Profit or loss:
underwriting result

Future cash
flows
Profit or loss:
investment result
Risk adjustment
Discounting
Other comprehensive
income

The
presentation
format of the
statement of
comprehensive
income will be
consistent
between
insurers and
entities that do
not issue
insurance
contracts.

20XX
Insurance contracts revenue
Incurred claims and expenses
X
(X)
Operating result
Investment income
Interest on insurance liability
(X)
Investment result
Profit or loss
Effect of discount rate changes

on insurance liability (optional)
(X)
Total comprehensive income
XX
14
Revenue and
expense
recognised as
earned or
incurred
Interest expense
either current or
cost, depending
on accounting
policy choice
If interest expense
is cost, effect of
difference
between current
and cost rates is
presented in OCI
Contracts with
Participation Features

A participation feature is
16
A mechanism by which the entity shares additional

rewards and risks with a policyholder, based on or
referenced to the performance of an underlying item
Participation features result in benefits other than
payments commensurate to loss suffered
Determination of these additional benefits may be
contractually specified
Contracts with participation features are accounted for using
the variable fee approach
A participation feature is not
17
A variable return without reference to underlying items,

even if:
These features result in benefits other than payments
commensurate to loss suffered
A variable return where additional benefits are at the

discretion of entity
Contracts with variable features, that are not participation
features are accounted for using the general model
Variable fee approach

Scope
18
Variable fee approach is intended for contracts with

participation features
Scope of the variable fee approach
Policyholder participates in defined share of underlying
items;
Entity expects to pay policyholder a substantial share of the
returns from those underlying items;
Cash flows expected to vary substantially with underlying
items
Variable contracts outside the variable fee approach apply

the general model
Variable Fee approach
19
Under the variable fee approach, the entitys obligation to

the policyholder is considered to be the net of:
the obligation to pay the policyholder an amount equal
to the fair value of the underlying items and
A variable fee that the entity deducts in exchange for
the services provided by the insurance contract
Mechanics of variable fee approach
20
Measurement of obligation reflects change in fair value of

all underlying items
Fulfillment cash flow is calculated consistently with the
general model
Modify general measurement model so that changes in
the estimate of fee entity expects to earn are adjusted in
CSM
Fee is equal to entity's expected share of returns on
underlying items, less
any expected cash flows that do not vary with the
underlying items.
Risk mitigation
21
Entity is permitted to recognise in profit or loss changes in

value of guarantee (ie as in the general model) if:
Entity holds derivative instruments
consistent with entitys risk management strategy;
economic offset exists between guarantee and derivative, and
credit risk does not dominate the economic offset
Entity is required to:

document its risk management objective and strategy
discontinue prospectively when economic offset ceases
disclose the effect of changes in the value of the guarantee in
the profit or loss for the period
Allocation of CSM
22
Proposed release pattern consistent with general model

Basis of passage of time
Number of contracts in force
Alternatives rejected:
Based only on investment services
What is the pattern for those services?
How to reflect two services and changes in magnitude in
those services over time?
Variable contracts
Accounted for using the general model
23
Fails variable fee scope test because either:

No identifiable underlying item, or
Very limited participation in assets
Under general model, promise to pay:

a guaranteed minimum amount (non participation), plus
Discretionary amount which may (or may not) be correlated
to assets returns
Contrast
General model versus variable fee
Cash flows
Discount rate
Risk margin
CSM at
inception
Allocation of
CSM
24
General model
Variable fee model
No difference
No difference
No difference
No difference
No difference
Contrast
General model versus variable fee
General model
CSM
Subsequent
Measurement
(financial)
- Except risk
mitigated
Subsequent
(non financial)
Accretion
25
Variable fee model
Changes in all financial

assumptions in SCI
Changes in guarantees
and shareholders share
in CSM
Changes in all financial Changes in sh/share in
assumptions in SCI
CSM
No difference
Accreted at locked in
rate
Effective accretion at
current rate
Presentation of investment expense

Current period book yield
26
Insurance investment expense in profit or loss that mirrors

the investment income on the underlying items.
Reduces accounting mismatch by ensuring no net
investment margin on the underlying items in profit or loss
Can be applied when entity has obligation to pass on
returns on underlying items that it holds

Background
28
IFRS 9 sets out financial reporting requirements for financial

instruments and is effective from 1 January 2018
IASB is in process of finalising insurance contracts Standard
which will set out how to measure and report insurance
contracts
These changes will not be effective before 2020
Concerns raised about the interaction between the financial

instrument and insurance contracts accounting
Some suggest that the effective date of IFRS 9 should be
deferred for insurers and aligned with the effective date of
the forthcoming insurance contracts Standard
Problem statement
29
Some preparers have raised the following concerns

If IFRS 9 applied before new insurance contracts Standard
may lead to increased volatility in profit or loss
Greater use of fair value accounting for some insurers
Existing IFRS 4 accounting at cost for many
Complexity of understanding two significant accounting

changes within a limited period of time
Potential cost for some of implementing two changes in
accounting standards in a relatively short period of time
Possible solutions
30
The IASB has considered the following potential approaches to

address these issues:
1. additional transition relief on implementation of IFRS 4 to
negate affects of double implementation (Transition
approach)
2. remove the increased volatility from profit or loss (Overlay
approach)
3. defer the effective date of IFRS 9 for insurers (Deferral
approach)
Timeline
31
IAS 39 & IFRS 4
IFRS 9 & IFRS 4
IFRS 9 & IFRS4:II
Flexibility in IAS
39 and IFRS 4
results in little
volatility in profit
or loss
Interaction of
IFRS 9 and IFRS
4 may increase
or loss
Commonalities
in IFRS 9 and
new IFRS 4
should reduce
or loss
IFRS 9
1 January
2018
New IFRS 4
1 January
2020 -
Overlay approach
32
IFRS 9 applied by all entities, including insurers from 2018

Insurers permitted to include in profit or loss a transfer to
OCI of:
the difference between amounts recognised under IFRS 9
and amounts that would have been recognised under IAS 39
for financial assets measured at FVPL under IFRS 9 that
were not or would not have been measured at FVPL under
IAS 39
The objective of the adjustment is to remove from profit or

loss any increased volatility in a transparent and consistent
manner
Overlay approach
33
Advantages
Directly addresses volatility concerns
Maintain integrity and comparability of statement of financial
positions
Transparently adjusts profit and loss (through OCI)
Disadvantages
Does not address costs related to double application
Does not address lack of readiness of some preparers
Will create some equity volatility
The Deferral Approach
34
Consider a financial conglomerate that issues insurance

contracts and also undertakes banking activities:
HoldCo
Sub A
Insurance activities
Sub B
Banking activities

Legal entity level
35
Has option to apply IAS 39 to assets that relate to insurance

Must apply IFRS 9 to financial assets that do NOT relate to
insurance
HoldCo
IFRS 9
IAS 39
Sub A
Sub B
Banking activities

Legal entity level
36
Advantages
Addresses costs related to double application
Addresses lack of readiness of some preparers
Disadvantages
Defining legal entity is challenging
Results in mixed statement of financial position, and
incomparability both within insurance sector, and across sectors
No direct transparency, so need for disclosures
Transfers will create confusion whichever approach followed

Reporting entity level
37
If predominant activity of the conglomerate is insurance;

Entity has option to continue to apply IAS 39 to all financial
assets in consolidated financial statements
HoldCo
IFRS 9
IAS 39
Sub A
Sub B
Banking activities

38
If predominant activity of the conglomerate is not insurance;

Entity must apply IFRS to all financial assets in consolidated
financial statements
HoldCo
IFRS 9
IAS 39
Sub A
Sub B
Banking activities

39
Advantages
Addresses costs related to double application
Addresses lack of readiness of some preparers
No confusion of mixed statement of financial position and
transfers
Disadvantages
Optional, so incomparability of statement of financial position
both within insurance sector, and across sectors
No direct transparency, so need for disclosures
Limited scope
40
Board has proposed to amend IFRS 4:

Permit the overlay approach for entities which engage in
insurance activities
Permit the deferral approach
At a reporting entity level
For entities which predominantly engage in insurance
activities
Until 2021
ED will be issued in mid December with a 60 day comment

period
When?
Outstanding issues and next steps

Next steps
The IASB has substantially completed deliberations
Publish the new Standard after the end of 2015
Still to consider:
due process implications
sweep issues
42
Thank You
43
Appendix
Project Update

Why?
The need for change

Need for a global insurance standard
46
IFRS 4 Insurance Contracts is an interim Standard

Permits continuation of wide variety of practice
Includes a temporary exemption from general
requirement that accounting policies should be
relevant and reliable
IFRS 4 does not provide transparent information about
the effect of insurance contracts on financial statements
Existing accounting makes comparisons difficult
between products, companies and across jurisdictions
How will accounting improve?

Existing issues
47
Proposals
Variety of accounting treatments

depending on type of contract and type of
company that issues the contracts
Consistent accounting for all insurance

contracts by all companies (not just
insurance companies)
Estimates for long duration contracts not

updated
Estimates updated to reflect current

market-based information
Discount rate based on estimates of

investment returns does not reflect
economic risks of insurance contract
Discount rate reflects characteristics of

the cash flows of the contract
Lack of discounting for measurement of

some contracts
Measurement of insurance contract

reflects discounting where significant
Little information about economic value of

embedded options and guarantees
Measurement reflects information about

full range of possible outcomes
How?
Project History and Consultation

Project History
1997
2004
49
2007
2011
2010
2013
TBC
1997
March 2004
May 2007
July 2010
June 2013
After 2015
IASC starts project

on insurance
contracts
IFRS 4 Insurance
contracts
Discussion paper
Preliminary views on
Insurance Contracts
Exposure Draft
Insurance Contracts
Exposure Draft
Insurance Contracts
253 comment letters

received
194 comment letters

received
Earliest
expected
publication
IFRS x Insurance
contracts
Phase I completed
Interim standard on
insurance contracts
issued
162 comment letters

received
Mid-2004
IASB takes up
Phase II
Insurance Working
Group formed
Extensive consultation
50
Consultation documents issued

2007 Discussion Paper Preliminary Views on Insurance
Contracts
2010 Exposure Draft Insurance Contracts
2013 Exposure Draft Insurance Contracts
Extensive outreach with investors, analysts, preparers,

regulators, accounting firms and standard-setters, in all
regions with significant insurance industry
Three rounds of field work focused on assessing
operationality of the proposals
What?
The IASBs proposals

Overview of the accounting model

Measure the contract at initial recognition
Present results in financial statements
Provide disclosures
52

The defining
feature of an
insurance
contract is the
presence of
significant
insurance risk.
53
Entity may need to separate components from an

insurance contract
Distinct
goods and
services
Embedded
derivatives that are
not closely related
Insurance
component
Distinct
investment
components
Measure using insurance

contracts standard
Measure using financial
instruments standards
Measure using revenue
recognition standard
Entity recognises contract from beginning of coverage

period, unless contract is onerous or payments due before
the coverage period begins
Measure contract at initial recognition

Measurement
of an insurance
contract
incorporates all
available
information, in
a way
consistent with
observable
market
information.
Contractual service
margin
Future cash
flows
expected cash flows from
premiums, claims and
benefits
Risk adjustment
assessment of uncertainty
about amount of future cash
flows and its cost to entity
Discounting
adjustment that converts
future cash flows into current
amounts
54
Contractual service
margin is measured as the
difference between the riskadjusted present value of
expected inflows and
outflows at inception.
Fulfilment cash flows is a
probability-weighted
estimate of cash inflows and
outflows that will arise as the
entity fulfils the contract.

IASB believes
a current value
measure of an
insurance
contract
provides the
most useful
information
about
insurance
contracts in the
statement of
financial
position.
Contractual service
margin
Future cash
flows
Risk adjustment
Discounting
55
CSM is adjusted by changes

in estimates and is allocated
to profit or loss on basis of
passage of time.
For some contracts, changes
in estimate include entity
share of policyholder assets.
In each reporting period, an
entity remeasures the
fulfilment cash flows using
updated assumptions about
cash flows, discount rate and
risk.

The different
types of
changes in
estimates are
recognised in
different parts
of the financial
statements.
Contractual service
margin
56
Profit or loss:
underwriting result

Future cash
flows
Profit or loss:
investment result
Risk adjustment
Discounting
Other comprehensive
income
Present results in financial statement

The
presentation
format of the
statement of
comprehensive
income will be
consistent
between
insurers and
entities that do
not issue
insurance
contracts.

20XX
Insurance contracts revenue
Incurred claims and expenses
(X)
Operating result
Investment income
Interest on insurance liability
(X)
Investment result
Profit or loss
Effect of discount rate changes

on insurance liability (optional)
(X)
Total comprehensive income
XX
57
Revenue and
expense
recognised as
earned or
incurred
Interest expense
either current or
cost, depending
on accounting
policy choice
If interest expense
is cost, effect of
difference
between current
and cost rates is
presented in OCI
Present results in financial statement

Interest expense in profit or loss
Presenting
insurance
investment
expense in
profit or loss on
a cost basis
can reduce
accounting
mismatches
between
related assets
measured on a
cost basis.
58
Approaches for determining insurance

investment expense on a cost basis in
profit or loss
Current period
book yield
approach
Effective yield
approaches
Different versions appropriate for

different contracts
Reflects cost measurement basis in

P&L
Insurance investment expense in

profit or loss eliminates accounting
mismatch with items held in profit or
loss
Only for specified contracts (ie with

no economic mismatches
OCI: difference between current and cost measurement basis
Disclosures
The IASB
proposes to
extend the
existing
disclosures in
IFRS 4 relating
to the risks and
amounts
reported in the
financial
statements.
59
Amounts
Judgements
Changes in expected
present value of
future payments and
receipts
Processes for the

estimating inputs and
methods used
Changes in risk and

the contractual
service margin
during the period
Changes in the time
value of money
(interest expense)
Effects of new
contracts written in
the period
Effects of changes in
the methods and
inputs used
Explanation of
reason for change,
identifying the type
of contracts affected
Risk
Nature and extent of
risks arising from
insurance contracts
Extent of mitigation
of risks that arises
from reinsurance
and participation
features
Quantitative
information about
exposure to credit,
market and liquidity
risk
Other matters
The new
insurance
contracts
standard
provides
additional
accounting
models for
different types
of contracts.
60
A simplified measurement approach for simpler insurance

contracts, based on the unearned premium reserve
approach used in many jurisdictions
Accounting requirements for reinsurance contracts an
entity holds, based on the general model
Accounting requirements for investment contracts with
discretionary participation features
Applying the new Standard for the

first time
When an entity
applies the
Standard for
the first time, it
can measure
the fulfilment
cash flows
directly, but the
remaining
balance of the
contractual
service margin
requires
historical data.
61
The IASB has specified different approaches for estimating

the contractual service margin in a way that balances
comparability with the costs of obtaining historical
information.
Retrospective application
When historical
data exists and
hindsight is not
required
Prescribed simplified approach

When not all
historical data is
available but
information about
historical cash
flows is available
or can be
constructed
Liability calibrated to
fair value
When no
historical
information about
cash flows is
available
Responding to feedback

Common concerns in feedback
63
The IASB has received extensive and detailed feedback on its

proposals. Underlying the feedback are three common
concerns:
1. Concerns about the effect of changes in current value
measurement on profit or loss
2. Concerns about the accounting for contracts with participation
features
3. Concerns about complexity of the proposals as a whole
A summary of how the IASB responded to specific feedback is

available on the project website.
1. Concern
Changes in current value measurement
64
Some question IASB tentatively decided some changes in current value

should not be recognised in profit or loss for a current period:
whether all
changes in
changes relating to future service recognised in future
current value
periods - adjust the contractual service margin
measurement
(unlocking)
should affect
permitted to choose whether to present effects of interest
current period
rate changes in OCI or profit or loss.
performance.
Entity permitted to use top-down approach to determine
discount rate to measure insurance contracts. As a result
changes in credit spreads are reflected in both asset and
liability measurement, significantly reducing accounting
mismatches
2. Concern
Complexity of the proposals as a whole
The accounting
model reflects
the complexity
inherent in
insurance
contracts.
Significant
complexity also
arises from
decisions taken
to address
specific
feedback from
constituents.
65
The IASB has sought to reduce complexity through the

following tentative decisions:
Pragmatic scope exceptions to avoid imposing costs with no
significant benefits
Optional simplified measurement approach
Contracts not recognised until coverage period begins
Contracts may be aggregated for accounting purposes
Limited unbundling of components
Measurement includes renewal cash flows when there is a
substantive obligation to provide coverage determined at a
portfolio, rather the contract level
Simplified transition requirements allow more entities to
approximate retrospective application
3. Concern
Contracts with participation features
Some were
concerned
about a faithful
representation
of the source
and pattern of
contracts with
participating
features.
66
The IASB tentatively decided that some contracts with

participation features should be viewed as providing the entity
with an expected fee for service.
Changes in the estimate of the expected fee are adjusted in the
contractual service margin, provided that:
The contractual terms specify that the policyholder
participates in a defined share of a clearly identified pool of
underlying items
The entity expects to pay to the policyholder an amount equal
to a substantial share of the returns from the underlying items
A substantial proportion of the cash flows that the entity
expects to pay to the policyholder should be expected to vary
with the cash flows from the underlying items
Simplifications
Short term insurance

Premium Allocation Approach
68
IASB tentatively decided to require one model for

insurance contracts
Practical expedient simplified approach (Premium
Allocation Approach)
Therefore:
Subject to entry criteria
Optional to use
Key criteria: simplified approach should mimic general

model
Premium Allocation Approach

Eligibility
Residual
margin
Risk
adjustment
Time value
of money
Cash flows
69
Permitted if reasonable approximation to the

building block approach, ie if:
coverage period is 12 months or less, or
both following apply:
no significant changes in estimate are
likely to occur before the claims incur
no significant judgement needed to
allocate the premium
69
Premium allocation approach

Measurement
Residual
margin
Risk
adjustment
Time value
of money
70
On initial recognition
Record a liability at the PV of premiums
received/receivable, less acquisition costs;
or
Record an asset as the PV of premiums
receivable
Reduce the liability for passage of time
Cash flows
Reduce asset for receipt of premiums

Recognise a liability for incurred claims (using
general model)
70
Premium allocation approach

Measurement
Residual
margin
Risk
adjustment
Time value
of money
continued
Liability for incurred claims

Measured consistently with the building block
approach (with no contractual service margin)
Discounted if material. Practical expedient 12
months
Includes a risk adjustment
Cash flows
71
71
Normas Internacionales de
Informacin Financiera
Borrador 2013 sobre contratos de seguros
Conferencia IFRS de las Amricas
Temas a tratar
El nuevo modelo contable de 3 bloques
La proyeccin de flujos futuros.
El ajuste por riesgo.
El descuento financiero.
El modelo simplificado.
Caractersticas del borrador de norma 2013
Instala un modelo integral de 3 bloques:
- Proyeccin actual y objetiva de todos los flujos derivados del

contrato de seguros existentes al cierre descontados por valor del
tiempo del dinero.
- Ajuste por riesgo asociado a dicho flujo que refleje la

incertidumbre respecto del monto y oportunidad de los flujos.
- Establece un margen contractual por servicio (utilidad diferida) al

inicio de la pliza que debe distribuirse a lo largo de la vida de la
pliza.
Contempla un mtodo simplificado para contratos cortos (menos de

1 ao).
Elementos del nuevo modelo contable

Borrador de norma 2013
Margen Contractual por Servicio

(Ganancia esperada)
Flujo de fondos de
cumplimiento corriente
Flujos de Fondos Fututos

(Flujo de fondos por primas,
siniestros y beneficios)
Ajuste por Riesgo

(incertidumbre sobre los montos y
oportunidad de los fondos)
Descuento financiero
(convierte flujos futuros en
cifras corrientes)
16
Bloque 1:
Proyeccin de los flujos
futuros por contratos de
seguros.
Estimaciones de los flujos futuros

Las estimaciones de flujos de carteras de contratos de seguros

deben incluir todos los flujos de ingresos y egresos derivados de
tales contratos.
Las estimaciones de descuentos financieros de los flujos debe ser

explcitas.
Las estimaciones deben contemplar el ajuste por riesgo de los flujos

por el efecto de la incertidumbre del monto y momento de los flujos
futuros y deben ser explcitas.
Estimaciones de los flujos futuros (cont.)

Las estimaciones deben ser corrientes. Deben reflejar toda la

informacin disponible a la fecha de emisin de los estados
financieros.
Incluir solo los flujos derivados de contratos existentes sin

considerar ingresos por contratos futuros.
Las estimaciones deben reflejar la perspectiva de la entidad pero,

para las variables del mercado, stas deben ser consistentes con
precios observables de mercado.

Los activos o pasivos vinculados con contratos de seguros deben

reconocerse cuando ocurre lo primero de los siguientes eventos:
Cuando comienza el perodo de cobertura.
Con el vencimiento del primer pago por parte del

asegurado.
Si aplica, cuando la cartera al cual pertenece el

contrato se torna oneroso. La evaluacin se efecta
cuando existen indicios sobre una cartera.

Deben reflejarse el comportamiento futuro de los asegurados sobre

bases esperadas contemplando un ajuste en caso que el
comportamiento efectivo difiera del comportamiento esperado.
El lmite del contrato es cuando la aseguradora cesa su exposicin a

riesgo o cuando la entidad pueda retarifar su cobertura de forma tal
que represente ntegramente el riesgo asumido.
No deben compensarse ingresos y egresos por seguros directos con

los provenientes del reaseguro.

Los gastos de adquisicin deben considerar aquellos que sean

directamente atribuibles a las carteras de contratos de seguros.
Deben incluirse en la proyeccin los gastos de gestin de los

siniestros en la medida que sean directamente atribuibles a una
cartera de contratos.
No deben incorporarse en la estimacin de flujos los ingresos

provenientes de inversiones ya que stos son reconocidos, medidos
y presentados en forma separada.
10
Bloque 2:
El Ajuste por Riesgo
11
El Ajuste por Riesgo

El ajuste de riesgo representa la incertidumbre asociada con el flujo de
fondos esperado de los pasivos por contratos de seguros.

Si bien el ajuste de riesgo puede verse como una proteccin al
asegurado ante posibles desvos en la estimacin por pasivos, ese fin no

es el del ED.
La proteccin es otorgada por el capital de las aseguradoras
el cual es establecido por los distintos mrgenes de solvencia requeridos

en los mercados de seguros.
En el modelo contable establecido por el ED el ajuste de riesgo es visto
como una recompensa hacia los inversores de las aseguradoras por

asumir las incertidumbres derivadas de las obligaciones del contrato de
seguro.
12
El Ajuste por Riesgo (cont.)

Dicha recompensa a los inversores por asumir los riesgos e
incertidumbres derivados de contratos de seguros debe reflejar la

perspectiva del mercado en relacin con las caractersticas de dichos
riesgos e incertidumbre.
El ajuste de riesgo debiera ser el retorno razonable que en el contexto
de las condiciones de mercado corriente se espera tener por hacer frente

a los riesgos e incertidumbres derivados de los contratos de seguros.
Un objetivo del ED es el de brindar a los inversores y grupos de inters
una herramienta til para la toma de decisiones. La valorizacin de la

apreciacin del riesgo por parte del mercado es informacin valorada por
los inversores.
13

Los riesgos que no se concreten originarn la liberacin a resultados del
ajuste de riesgo. Dicho resultado representar el retorno o recompensa

de los inversores por la exposicin al riesgo del negocio de seguro.
El ajuste de riesgo debe ser determinado en forma consistente con la
evaluacin del mercado, dado la inexistencia de un mercado respecto de

este tipo de riesgo y la dificultad de adaptar esa perspectiva de riesgo de
mercado a las caractersticas de cada perfil de cartera de seguro, dicho
ajuste se determina en base a una evaluacin especfica de la cartera de
la entidad sobre la base de tcnicas o modelos de simulacin.
14

El borrador de norma del 2010 haba originalmente limitado a tres las

tcnicas que se podan utilizar para la determinacin del ajuste de
riesgo (valor a riesgo, CTE y costo de capital). .
El borrador de norma del 2013 elimin esa limitacin pudindose

utilizar la tcnica que la aseguradora estime ms representativa de su
negocio.
Los beneficios de la diversificacin deben considerados en las

estimaciones en la medida que tambin sean considerados para
determinar las tarifas.
15
Bloque 3:
El Descuento Financiero
16
El Descuento Financiero (cont.)

El descuento de flujos de contratos de seguros debe ser una tasa libre
de riesgo que mejor refleje las caractersticas del flujo en trminos de

duracin, moneda y liquidez.
El factor de riesgo del flujo es reconocido por el margen de riesgo
incorporado a la estimacin es por ello que la tasa es libre de riesgo.
El efecto de los cambios en la tasa de descuento entre la medicin inicial
de un contrato y su medicin posterior, no se imputa a resultados sino al

patrimonio neto como resultados integrales.
17
El Margen Contractual
por Servicio
18
El Margen Contractual por Servicio (cont.)

Determinacin del Margen
Valor presente de los egresos de fondos

ajustador por riesgo
(Valor presente de los ingresos de fondos

ajustado por riesgo)
(Margen Contractual por Servicio)
El Margen Contractual por Servicio (cont.)

Caractersticas
Se calcula al inicio de vigencia por cartera de contratos.
Debe ser cero al final de la vigencia de la cobertura.
Con posterioridad al fin de la vigencia los contratos y agotado el

Margen se mide por el valor presente de los flujos estimados para
cumplir con las obligaciones del contrato.
El margen residual devenga intereses.
El margen residual puede recalcularse si en un cierre contable

cambia la estimacin de los flujos de fondos que lo determinaron. El
efecto del cambio se reconoce en resultados a lo largo de la vida
restante del servicio o de la cobertura.
20
Nuevos pasivos tcnicos Modelo Integral
Margen contractual por servicio

Ajuste por riesgo
Pasivos totales
por contratos
de seguros
Estimacin las obligaciones
por contratos de seguros
Medicin y exposicin de resultados
(1)
El estado de resultados y los resultados integrales
Ingresos por contratos de seguros
1.000
Siniestros incurridos
-50
Gastos incurridos
-40
910
Ganancias (Prdidas) por inversiones
Resultado operativo
200
Intereses por pasivos de contratos de seguros
-120
Intereses netos e inversiones
320
Resultado final Ganancia (Prdida)
1.230
Cambios en el valor razonable de activos
90
Efectos del cambio en la tasa de descuento sobre los pasivos

-60
1.260
Resultados integrales
(1) Simplificado con fines ejemplificativos. Las cifras son meramente ejemplificativas.
(1)
Medicin y exposicin de resultados (cont.)

Los ingresos por contratos de seguros
1.000
-50
Gastos incurridos
-40
Este ingreso estar determinado por la
910
sumatoria de los siguientes conceptos:
200
-120
320
1.230
90

-60
1.260
Resultado operativo
Cambios en el Margen Contractual por

Servicio.
Cambios en el Ajuste por riesgo

Siniestros esperados
Gastos esperados
(1)

1.000
-50
Intereses por pasivos de contratos
Gastos incurridos
-40
de seguros (prdida)
910
Resultado operativo
200
-120
320
1.230
90

-60
1.260
Corresponde a los intereses que devengan

los pasivos por contratos de seguros que
han sido estimados sobre bases
descontadas.
Se determinan sobre los intereses
estimados al inicio del contrato (costo
amortizado).
No se aplican intereses corrientes.
(1)

Efectos del cambio en la tasa de descuento sobre pasivos
1.000
-50
Gastos incurridos
-40
910
Resultado operativo
200
-120
320
1.230
90

-60
1.260
Efecto del cambio en la tasa de

descuento de pasivos
Corresponde a los intereses diferenciales
sobre los pasivos por contratos de seguros
producto de aplicar una tasa de inters
corriente a la fecha de cierre contable
respecto de la tasa aplicada al inicio del
contrato.
El MTODO SIMPLIFICADO
26
El Mtodo Simplificado
Caractersticas
Se aplica a los ingresos y gastos de adquisicin correspondientes a

contratos menores a un ao con excepciones limitadas.
Permite tomar el valor presente de los flujos esperados de primas

ms los pagos recibidos por anticipado y distribuirlos a los largo de
la vigencia (similar a la reserva por prima no ganada actual).
Requiere diferir de manera similar las gastos de adquisicin a lo

largo de la vigencia de la pliza (similar a la riesgos en cursos de los
gastos de adquisicin).
Deben devengarse intereses sobre los valores as estimados.
Los contratos onerosos medidos en forma inicial o en forma

subsecuente deben reconocerse a prdida.
27
Nuevos pasivos tcnicos Contratos cortos
Margen de riesgo
Pasivos totales
por contratos
de seguros
Estimacin las obligaciones

Principales impactos del borrador de norma 2013

Resumen de los cambios por tipo de seguro
Vida
No Vida
Cambios en la estimacin de
ganancias futuras
Significativo
No significativo
Medicin de ingresos por

contratos de seguros
Significativo
Moderado
Intereses sobre pasivos por

costo amortizado
Significativo
Transicin
Significativo
Significativo
(pasivo por siniestros)
Significativo
(pasivos por siniestros)
(1) Se consideran para medir el impacto las prcticas actuales ms relevantes en las principales geografas.
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each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of
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the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to
becoming the standard of excellence.
2015. For information, contact Deloitte Touche Tohmatsu Limited.
(1)
Conferencia IFRS
Cartagena, Colombia
Arrendamientos
STEPHEN COOPER
Miembro
IASB
JUAN COLINA
Socio
PwC
The new leases standard

Steve Cooper, IASB Board Member
November 2015

Project status
Publication of new
Leases Standard
In January 2014 joint
re-deliberations
begin
Q2
2013
In May 2013 a revised

Exposure Draft (2013
ED) published; over
640 comment letters
received
Q1
2014
(effective date
1 January 2019)
Q1
2015
Re-deliberations
complete
in March 2015
(except effective date)
Dec 2015
The big picture
Lessee accounting: single lessee model

All leases on-balance sheet1
Interest and depreciation presented separately in income
statement
Cash paid split into principal (financing activities) and interest
(operating or financing activities) in cash flow statement
Lessor accounting: little change to existing lessor accounting
With the exception of short-term leases and leases of low-value assets
The need for change
Leases create assets and liabilities

Most leases are not reported on the balance sheet
Long-term liabilities of heaviest users of off balance sheet
leases1 understated by:
26% Europe
22% North America
32% Asia Pacific
Huge variation across and within industries

(1) 1,022 IFRS/US GAAP listed entities (excluding banks and insurance companies) each with estimated operating lease liabilities of >$300M
(discounted basis). Data obtained from financial data aggregators that may contain errors; this information should, therefore, be used with a
degree of caution.
Effects of lessee accounting changes

Current issues
Benefits of the new Leases

Standard
A lack of information
Investors attempt to
estimate
Companies provide leaseadjusted information
Improved quality of financial reporting
A lack of comparability
Improved comparability
No level playing field
Currently a lack of information
6 retail chains that ultimately went into liquidation

Retailer
Off balance sheet leases
On
balance
sheet
debt1
Off balance sheet

leases (discounted) as
a multiple of on
balance sheet debt
(undiscounted)
1
(discounted)2
Borders (US)
$2,796M
$2,152M
$379M
5.68
Circuit City (US)
$4,537M
$3,293M
$50M
65.86
652M
525M
58M
9.05
Clinton Cards
(UK)
HMV (UK)
1,016M
809M
115M
7.03
Praktiker
(Germany)
2,268M
1,776M
481M
3.69
Woolworths (UK)
2,432M
1,602M
147M
10.90
(1) Based on averaged published financial statements data available in the 5 years before the company entered Chapter 11 (US),
liquidation (UK) or bankruptcy (Germany).
(2) Estimated using (i) a discount rate of 5% and (ii) estimated average lease terms based on the information disclosed in the financial
statements.
Why investors need better information?
Expert investors attempt to estimate; others do not

Asymmetry and inaccuracy of information in the market
Many do not adjust reported numbers

More sophisticated investors do using estimation techniques
(eg multiples of rent expense)
But based on incomplete information - difficult and inaccurate
Inaccurate adjustments
1,022 entities(1)
Long-term (LT) debt

(In millions of US dollars)
LT debt to equity
Reported on
balance sheet
If all leases on
balance sheet
Common
market practice
(rent x8)
6,440,942
8,102,729
9,063,971
59%
74%
82%
degree of caution.
Companies also adjust

Airlines
Retail
Hotels
Transport
and courier
Air France
KLM
Ahold
AutoZone
Accor
Alaska
Airlines
Foot Locker
Home Retail
Group (Argos,
Homebase)
Whitbread
(Premier Inn)
Delta Airlines
Easyjet
Emirates
Kingfisher
(B&Q,
Castorama)
Nordstrom
Sainsburys
Whole Foods
SAS Airlines
A.P. Moller
Maersk
Group
Deutsche
Post
Oil and gas
Construction
Shell
Hochtief
Statoil
Travis
Perkins
Lack of comparability
Airline 1 (leases <10% of
aircraft)
10
Airline 2 (leases 70% of

aircraft)
Reported on
balance sheet
If all leases on
balance sheet1
Reported on
balance sheet
If all leases on
balance sheet1
Property, plant and

equipment
16,908
19,926
15,748
24,020
Non-current
liabilities
13,232
16,567
9,615
18,320
Equity
6,719
6,402
5,604
5,171
Ratio of non-current
liabilities to equity
2.0:1
2.6:1
1.7:1
3.5:1
(1) The figures included in the if all leases on balance sheet columns are estimates using various assumptions about the discount
rate and average lease term of leases held by each company.
Lessees affected by changes
Listed entities only
Percentage of IFRS/US GAAP entities who

report material off balance sheet leases
North America
62%
Europe
47%
Asia / Pacific
43%
Africa / Middle East
23%
Latin America and Caribbean
23%
Total future minimum payments for off

balance sheet leases (undiscounted)1
11
Off-balance-sheet lease
financing numbers
substantial
About 50% of listed
entities report material
off balance sheet leases
Use of off balance sheet
leases is highly
concentrated
US$ 2.9tn
1
Present value of future minimum

payments for off balance sheet leases
(estimate)2
2014 annual reports for the vast majority of entities.

Estimate using the average cost of debt for these entities,
that was 5%.
US$ 2.2tn
Lease vs service
Lease
Service
Customer
Supplier
controls
the use of
an asset
controls the
use of an
asset
12
Similar to the existing definition;

changed guidance on control
Control = directing the use and
obtaining the benefits from use
Separate services provided with
leases
Can use estimates
Practical expedient not to
separate
Optional recognition exemptions
13
Short-term leases
Leases with lease term <12 months
Low-value asset leases

Leased assets in order of magnitude of <$5,000
Examples: laptops, office furniture, mobile phones
Lessee - measurement
14
Assets and liabilities measured on a present value basis

Lease payments
Those payable during non-cancellable period plus optional
periods that the lessee is reasonably certain to exercise
Include fixed payments and inflation-linked payments
Exclude variable payments linked to future sales or use
Discount rate
Rate in the contract or lessees incremental borrowing rate
Lessee - presentation
15
Balance sheet
ROU assets together with PPE or as own line item
Lease liabilities in accordance with IAS 1
Profit and loss
Depreciation and interest reported as for any other asset and
financing
Cash flow statement
Principal within financing activities
Interest within either operating or financing activities (IAS 7
option)
Lessee - disclosure
16
Quantitative disclosures
Entity-specific information
Breakdown of lease costs

Total lease cash flows
Maturity analysis of
undiscounted
commitments
Information about ROU
assets by major class of
leased asset
Additional information, if
relevant
Extension and termination
options
Variable lease payments
Residual value
guarantees
Sale and leaseback
Lessee - transition
17
Full retrospective
Modified retrospective
Existing finance leases:
Carry forward IAS 17 asset & liability
Existing operating leases:

No restatement of comparatives
Choice of measurement of ROU
assets
Exemption for leases ending within 12
mths
Rely on onerous lease assessment
No reassessment of existing contracts (lease vs service) required

Converged
decisions
Different
Leases
reported onbalance sheet
Definition of a
lease
18
Measurement
of lease
liabilities
Lease expenses in
income statement and
cash flows in cash flow
statement
In practice, little difference in profit or loss reported for many

companies
IASB lessee model
19
Useful information
Most investors think leases create debt-like liabilities
Link between balance sheet and income statement important
for analyses, eg return on capital
Strong conceptual basis

All leases contain rights of use
Cost and complexity

No difference in liability measurement
IASB model:
Can use fixed asset systems for lease asset
No lease classification
IASB vs FASB
20
IASB
FASB
FASB
existing capital
leases
existing
operating leases
Balance sheet
Recognition
Measurement
All leases on balance sheet
Exemption for ST leases
Exemption for low-value leases
---
---
Lease liabilities on a
discounted basis
Initial lease asset = liability
Depreciation of lease assets
Typically straightline
Typically straightline
Typically
increasing
Lease liabilities
Financial liabilities
or separate line
Separate
presentation
Separate
presentation
Presentation
Lease assets
1
Different reassessment of inflation-linked payments

PPE or separate
line
IASB vs FASB
21
IASB
FASB existing
capital leases
FASB existing
operating leases
Depreciation
Depreciation
Single expense
Interest
Interest
---
Income statement
Operating costs
Finance costs
Cash flow statement
Operating activities
Interest1
Interest
Interest and principal
Financing activities
Principal
Principal
---
Under IFRS, interest payments can be presented within either operating or financing activities
Illustrationlessee accounting
22
A company wants to lease a truck for a 4-year period. It

considers two different lease structures:
Lease 1pay 60,000 in equal amounts over 4 years
Lease 2pay 53,000 at the end of year 1
Difference in total payments relates solely to difference in
timing of payments. Both leases are operating leases under
IAS 17.
Accounting over 4-year lease term
IASB
model
Lease 1
Lease 2
Lease Assetcost
50,000
50,000
Operating expense
50,000
50,000
Interest expense
10,000
3,000
Same expense reflecting

use of an identical asset
that costs the same
amount in PV terms
Higher operating profit
FASB /
IAS 17
Operating expense
60,000
53,000
Benefit of separating interest exp.
23
Many investors adjust the income statement using rough

estimation techniques (eg interest = 1/3 rent expense,
depreciation = 2/3 rent expense; or EBITDAR)
Estimated effects of IASB lessee model on operating profit:
1,022 listed companies1
Increase in operating profit margin

%
45%
< 0.5%
19%
0.51%
32%
15%
3%
510%
1%
> 10%
degree of caution.
Subleases, Sale and leaseback
24
Subleases - Intermediate lessor

Account for head lease and sublease as two separate
contracts
Classify a sublease with reference to the ROU asset arising
from the head lease
Sale and leaseback transactions

Sale must meet the requirements in IFRS 15
Seller/lessee recognises only gain related to rights transferred
Adjustment made for off market terms
Lessor accounting
25
In essence, no change to existing lessor accounting

Feedback on 2013 ED
Existing lessor accounting is not broken
Concerns about cost and complexity
Redeliberations: enhanced disclosures

Information about the residual value risk
Operating leases: separate disclosures for leased assets and
assets used by a lessor for other than leasing
Thank you
26
www.pwc.co.uk
Problemas emergentes
sobre arrendamientos:
Lo que debe saber
Contenido
1. Generalidades
2. Descripcin de nivel alto
3. Estado del proyecto (incluye nicamente un tipo de arrendamiento y no
incluye cambios reales para arrendadores y diferencias de nivel alto para los
PCGA de los Estados Unidos)
4. Definicin de arrendamiento
5. Arrendamiento a corto plazo y exenciones de activos pequeos
6. Duracin del arrendamiento
7. Cuotas contingentes del arrendamiento - Cuotas fijas en
sustancia/variables
PwC
Slide 2
Contenido
8. Contabilidad del arrendatario
Reconocimiento y medicin inicial
Medicin posterior
9. Subarrendamientos
10. Transicin
PwC
Slide 3
Generalidades
El arrendatario tiene que reconocer
activos de derecho de uso y pasivos
de arrendamiento en casi todos los
contratos de arrendamiento
La contabilidad del
arrendador se
mantiene igual bajo la
gua actual
Exenciones para
arrendamientos a corto
plazo y de activos pequeos
Se espera la
publicacin de
nuevas normas de
arrendamiento a
finales de 2015
PwC
Siguen las diferencias entre las

NIIF y los PCGA de los Estados
Unidos
La fecha de
entrada en
vigencia an por
determinar
Requerimientos
mejorados de
divulgacin
Slide 4
Descripcin de nivel alto - Arrendatario (1/3)

FASB
IASB
Balance
general
Activo de derecho de
uso/Pasivo de
arrendamiento
Estado de
resultados
Enfoque nico
(igual que IASB)
Enfoque doble
Amortizacin
(Activo de derecho de uso)
Tipo A
(financiero)
Tipo B
(operativo)
Gasto por intereses

(Pasivo de arrendamiento)
Amortizacin
Gasto por
arrendamiento
Gasto por
intereses
PwC
Slide 5
Descripcin de alto nivel - Arrendatario (2/3)

FASB
Estado de
resultados
Tipo A vs. Tipo B
Criterios de clasificacin
Transferencia de propiedad sobre el activo subyacente
Opcin de compra (razonablemente seguro?)
Plazo del arrendamiento comparado con la vida
econmica del activo subyacente
Valor actual de las cuotas del arrendamiento comparado
con el valor razonable del activo subyacente
Naturaleza especializada del activo subyacente
PwC
Slide 6
Descripcin de alto nivel - Arrendatario (3/3)

Diferencia entre el tipo A y B sobre el estado de resultados
Tipo A - Amortizacin
Tipo A - Gasto por
intereses
Tipo A - Gasto total
Tipo B - Gasto total
PwC
IASB/
FASB
nica
mente
FASB
Slide 7
Descripcin de alto nivel - Arrendador

FASB
IASB
Clasificacin
Distincin basada en riesgos y

recompensas
Arrendamiento
financiero
Arrendamiento por cobrar

(inversin neta en arrendamiento)
Arrendamiento
operativo
Activo subyacente
(igual que IASB)
(igual que IASB)
(igual que IASB)
Ningn cambio comparado con la gua actual
PwC
Slide 8
Estado del proyecto - Dnde estamos ahora?
Marzo 2009:
Documento de
Julio 1996:
discusin
G4+1 - Arrendamientos:
Implementacin de un
nuevo enfoque
Agosto 2010:
Proyecto de
norma
Mayo 2013:
Proyecto de
norma revisado
Diciembre 2015 (?):

Norma final
Fecha de entrada en vigor: por confirmar (se espera la

decisin para septiembre de 2015 (IASB))
Aval de Estados Unidos (NIIF): por confirmar
PwC
Slide 9
Definicin de arrendamiento (IASB/FASB)*
El contrato depende del uso de un activo identificado

No se identifica ningn activo si el proveedor tiene un derecho
sustantivo para sustuir el activo
El cliente controla el uso del activo identificado
Derecho a obtener razonablemente todos los beneficios econmicos

que resulten del uso del activo durante la duracin contractual
Derecho a dirigir el uso del activo
* Basado en la actualizacin de la IASB - Octubre 2014 y la actualizacin del proyecto - Febrero 2015
PwC
Slide 10
Definicin de arrendamiento (IASB/FASB)*

Activo identificado
El derecho a sustituir el activo es sustancial si
(a) el proveedor tiene la capacidad prctica para sustituir y
(b) el proveedor puede beneficiarse de la sustitucin
Sustancialmente todos los beneficios econmicos

El cliente tiene derecho a dirigir el uso si
l tiene la capacidad de cambiar cmo y con qu propsito se usa
el activo durante la duracin contractual o
Se predeterminan las decisiones y
(a) el cliente maneja el activo o
(b) el cliente ha diseado el activo
Los derechos de proteccin del proveedor no impiden que el
cliente tenga derecho a dirigir el uso
* Basado en la actualizacin del IASB - Octubre 2014 y la actualizacin del proyecto - Febrero 2015
Slide 11
PwC
Definicin de arrendamiento
Ejemplo*
Una compaa petrolera firma un contrato con un armador para el
arrendamiento exclusivo de un buque cisterna especial por un
periodo de 20 aos.
La compaa petrolera decide cundo y por cules puertos navegara
el buque cisterna y el petrleo a transportar durante un periodo de
20 aos.
El equipo del armador trabaja y mantiene el buque cisterna durante
la duracin contractual.
Activo identificado?
Sustancialmente todos los beneficios econmicos?
Derecho a dirigir el uso?
El contrato contiene un contrato de arrendamiento y de servicio.

* Extrado de la actualizacin del proyecto (ejemplo 4) - Febrero 2015
PwC
Slide 12
Ejemplo*
Una compaa de caf firma un contrato con un operador
aeroportuario para utilizar un espacio por un periodo de tres aos
para vender sus productos.
El contrato establece la cantidad exacta de espacio y la ubicacin en
cualquiera de las diferentes zonas de embarque dentro del
aeropuerto.
El operador aeroportuario puede cambiar la ubicacin en cualquier
momento. Hay costos mnimos para el operador relacionados con
este cambio.
Activo identificado?
Sustancialmente todos los beneficios econmicos?
n/a
Derecho a dirigir el uso?
n/a
El contrato es un servicio.
* Extrado de la actualizacin del proyecto (ejemplo 2) - Febrero 2015
PwC
Slide 13
Arrendamiento a corto plazo y exenciones de

activos pequeos*
Arrendamientos a corto plazo (IASB/FASB)
Los arrendamientos con una duracin de 12 meses o menos se pueden

contabilizar como arrendamientos operativos (las cuotas se reconocen segn el
mtodo de lnea recta durante la duracin del arrendamiento) eleccin de
poltica contable
Aplica nicamente para el arrendatario
Exencin para arrendamientos de activos pequeos (nicamente

IASB)
Aplica nicamente para arrendamientos de ciertos activos pequeos
Eleccin de poltica contable aplicable sobre una base arrendamiento

por arrendamiento (ni grupo ni cartera)
Aplicable para arrendamientos de activos de bajo valor (en el momento

de lograr una decisin la IASB consider activos con un valor, cuando
son nuevos, de USD 5.000 o menos)
Aplica nicamente para el arrendatario
* Basado en la actualizacin de la IASB - Marzo 2014

PwC
Slide 14
Duracin del arrendamiento (IASB/FASB)*

Periodo del arrendamiento no
cancelable
Periodos cubiertos por una

opcin de ampliacin
si
el arrendatario est
prcticamente seguro de ejercer
la opcin
si el arrendatario est
prcticamente seguro de no
ejercer la opcin
Trminos/condiciones contractuales para periodos opcionales comparados con
las tasas del mercado.
Periodos cubiertos por una
opcin de terminacin
Mejoras realizadas (o se espera realizar) en locales arrendados.

Costos relacionados con la terminacin del arrendamiento/firma de un nuevo
arrendamiento de reemplazo.
La importancia de ese activo subyacente a las operaciones del arrendatario.
Slide 15
PwC
Cuotas contingentes del arrendamiento - Cuotas fijas

en sustancia/variables (IASB/FASB)
Cuotas variables del arrendamiento
Cuotas fijas en
sustancia
depende de
tasa/ndice
otras variables
Por ejemplo, inflacin Por ejemplo, ventas en

o tasa de inters
un negocio minorista
Hace parte del

pasivo de
arrendamiento
No hace parte
del pasivo de
arrendamiento
Por ejemplo, cuotas efectuadas

nicamente si se prueba que
el activo puede funcionar
Hace parte del pasivo

de arrendamiento
* Basado en la actualizacin de la IASB - Abril 2014

PwC
Slide 16
Contabilidad del arrendatario - Medicin inicial

(1/4)
Activo de derecho de
uso
Pasivo de
arrendamiento
Cuotas de
arrendamiento
Tasa de
descuento
Cuotas de arrendamiento
realizadas antes de la fecha
de inicio
Costos directos
iniciales
PwC
Slide 17

(2/4)
Cuotas fijas
+
variables
+
Garantas de valor residual
Incluye cuotas fijas en sustancia

Ver las diapositivas anteriores
nicamente si dependen del/de la
ndice/tasa
Se miden utilizando la tasa en la
fecha de inicio
Ver las diapositivas anteriores
Cuotas previstas que el arrendatario
tiene que realizar

PwC
Slide 18

(3/4)
+
Precio de ejercicio de
la opcin de compra
si
+
Sanciones por terminacin
el arrendatario est
razonablemente seguro de
ejercer la opcin
si
la duracin del arrendamiento

refleja la terminacin por parte del
arrendatario

Slide 19
PwC

(4/4)
Tasa de descuento*
Tasa implcita en el arrendamiento
si la tasa no se puede determinar
fcilmente
Tasa incremental de endeudamiento
Costos iniciales directos**

Costos incrementales que no se habran incurrido si el
arrendamiento no se hubiese obtenido
Por ejemplo: comisiones, cuotas del arrendatario existentes para
obtener el arrendamiento
* Basado en la actualizacin de la IASB - Febrero 2015
** Basado en la actualizacin de la IASB - Mayo 2014
PwC
Slide 20
Contabilidad del arrendatario - Medicin

posterior (1/2)
Activo de derecho de uso
Amortizacin (en general el mtodo de lnea recta)

Prueba de deterioro basada en las guas de la NIC 36
Pasivo de arrendamiento
Se mide utilizando el mtodo de la tasa de inters efectiva

Cuotas variables de arrendamiento
(no dependen de la/el tasa/ndice)
Se reconocen en ganancia/prdida en el periodo en que se incurren
PwC
Slide 21
Contabilidad del arrendatario - Medicin

posterior (2/2)
Reevaluacin
Pasivo de arrendamiento
Right-of-use asset
Cambio relacionado con las cuotas
segn las garantas de valor residual.
Cambio en el/la ndice/tasa para
calcular las cuotas variables de
arrendamiento.
Cambio en la duracin del
arrendamiento.
Ejercicio de la opcin se vuelve o deja de
ser razonablemente seguro (teniendo en
cuenta que se cumplan ciertos criterios
adicionales).
PwC
Slide 22
Subarrendamientos*
Arrendador
Arrendador
principal
Arrendamiento
principal
Arrendatario
Subarrendamiento
El arrendador tiene que evaluar el subarrendamiento con

referencia al activo de derecho de uso.
Muchos subarrendamientos que han sido clasificados
como arrendamiento operativo ahora se clasifican
probablemente como arriendo financiero.
* Basado en la actualizacin de la IASB - Junio 2014
Slide 23
PwC
Transicin (1/3)*
La reevaluacin es obligatoria (recurso prctico)

Arrendatario
Retrospectivamente de acuerdo con la NIC 8
o
Enfoque modificado
* Basado en la actualizacin de la IASB - Febrero 2015
PwC
Slide 24
Transicin (2/3)
Enfoque modificado
Previamente arrendamiento
financiero
Previamente arrendamiento
operativo
Sin re expresin de la informacin

comparativa.
Pasivo de arrendamiento = cuotas de

arrendamiento restantes y descontadas
utilizando la tasa incremental de
endeudamiento del arrendatario en la

fecha de aplicacin inicial.
Activo de derecho de uso = clculo

retrospectivo basado en la tasa
incremental de endeudamiento del
arrendatario en la fecha de aplicacin
inicial o monto del pasivo de
arrendamiento.
Varios recursos prcticos adicionales.
Pasivo de arrendamiento = valor en

libros del pasivo de arrendamiento
inmediatamente antes de la fecha de
aplicacin inicial.
Activo de derecho de uso = valor en
libros del activo de arrendamiento
inmediatamente antes de la fecha de
aplicacin inicial.
PwC
Slide 25
Transicin (3/3)
Arrendador
El arrendador en general no debe realizar ningn ajuste en

la transicin.
Arrendador intermedio:
Reevaluacin de subarrendamientos operativos.
Si los subarrendamientos operativos han sido
clasificados ahora como arrendamientos financieros, el
arrendador deber contabilizar el subarrendamiento
como un nuevo arrendamiento financiero firmado en la
fecha de aplicacin inicial.
PwC
Slide 26
Conferencia IFRS
Cartagena, Colombia
Qu hay que hacer cuando Normas (NIIF o la NIIF para

las PYMES) no especifican contabilizar las transacciones
particulares: incluyendo combinaciones de negocios bajo
control comn
MIKE WELLS
IASB
RICHARD MARTIN
Director, Informacion corporativa
ACCA
OSCAR RUBIO
CAO
ACCA
IFRS judgements:
applying the
IAS 8 and SME hierarchies

Framework-based approach for

applying IFRS and the IFRS for SMEs
What are the economics of the phenomenon (eg

transaction or event)?
What information about the phenomenon is relevant for
informing resource allocation decisions by existing and
potential investors and lenders who cannot require
information directly and that can be faithfully represented
etc?
Then consider the requirements (IFRS or IFRS for SMEs)
Make judgements to develop accounting policy
Make judgements and estimates to apply the
requirements with rigour and consistency
If no IFRS specifically applies:

apply the IAS 8 hierarchy
Objective = information relevant to resource allocation

decisions by existing and potential investors, lenders
and other creditors who cannot require information
directly and that can be faithfully represented etc.
Process
1st try to analogise to requirements in IFRS dealing
with similar and related issues; and
2nd definitions, recognition criteria and measurement
concepts in Framework
may also use most recent pronouncements of others
with similar conceptual framework, other accounting
literature and accepted industry practices, to the
extent that these do not conflict with the sources in 1
and 2 above.
Applying the IAS 8 hierarchy continued
IFRIC UpdateMarch 2011:

The IFRS Interpretations Committee observed that
when management develops an accounting policy
through analogy to an IFRS dealing with similar and
related matters, it needs to use its judgement in
applying all aspects of the IFRS that are applicable
to the particular issue.
Examplemushroom farming
What are the economics of a mushroom farmers living

mushrooms?
What information about living mushrooms is most
relevant (capable of making a difference) to resource
allocation decisions by the primary usersexisting and
potential investors, lenders and other creditors that
cannot require the reporting entity to provide information
directly to themand that can be faithfully represented?
Examplemushroom farming continued
Which IFRS specifies accounting for a farmers

living mushrooms?
Choose 1 of:
(a) no specific IFRS therefore apply the IAS 8
hierarchy;
(b) IAS 2 Inventories; (c) IAS 16 PPE;
(d) IAS 38 Intangible Assets; (e) IAS 40 Investment
Property;
(f) IAS 41 Agriculture; (g) IFRS 6 Exploration for and
Evaluation of Mineral Resources; or
(h) IFRS 9 Financial Instruments.
Examplemushroom farming continued
Which IFRS deals with a similar and related issue?

Choose 1 of:
(a) no specific IFRS therefore apply the IAS 8
hierarchy;
(b) IAS 2 Inventories; (c) IAS 16 PPE;
(d) IAS 38 Intangible Assets; (e) IAS 40 Investment
Property;
(f) IAS 41 Agriculture; (g) IFRS 6 Exploration for and
Evaluation of Mineral Resources; or
(h) IFRS 9 Financial Instruments.
Concepts-based approach for

applying the IFRS for SMEs
What are the economics of the phenomenon (eg

transaction or event)?
What information about the phenomenon is relevant
(useful for economic decision-making) by those who
cannot require information directly and that is reliable
can be faithfully represented, is free from bias etc?
Then consider IFRS for SMEs requirements
Make judgements to develop accounting policy
Make judgements and estimates to apply the
requirements with rigour and consistency
If IFRS for SMEs does not specifically

address a phenomenon apply hierarchy
Objective = information relevant to economic decisionsmaking needs of users and that is reliable.
Process (hierarchy)
1st try to analogise to requirements and guidance in
the IFRS for SMEs dealing with similar and related
issues; and
concepts in Section 2
may also consider the requirements and guidance in
full IFRSs dealing with similar and related issues,
provided full IFRSs do not conflict with 1st and 2nd
above.
10
What are the economics of a farmers living mushrooms?

What information about living mushrooms is most relevant
(useful for economic decision-making) by those who cannot
require information directly and that is reliablecan be
faithfully represented, is free from bias etc?
continued
11
Which Section of the IFRS for SMEs specifies

accounting for a farmers living mushrooms?
Choose 1 of:
(a) no Section therefore apply paragraphs 10.410.6;
(b) S13 Inventories; (c) S17 PPE;
(d) S18 Intangible Assets; (e) S16 Investment
Property;
(f) S34 Agriculture; (g) S34 Extractive Activities;
(h) S11 Basic Financial Instruments;
(i) S12 Other Financial Instrument Issues; or
(j) S30 Foreign Currency Translation
continued
12
Which Section of the IFRS for SMEs deals with a

similar and related issue?
Choose 1 of:
(a) no Section therefore apply paragraphs 10.4, 10.5(b)
and 10.6; (b) S13 Inventories; (c) S17 PPE;
(d) S18 Intangible Assets; (e) S16 Investment Property;
(f) S34 Agriculture; (g) S34 Extractive Activities;
(h) S11 Basic Financial Instruments;
(i) S12 Other Financial Instrument Issues; or
(j) S30 Foreign Currency Translation
Thank you
13
When there is no
relevant IFRS
guidance some
practical issues
Richard Martin
24 November
2015
ACCA
Global body for professional accountants
178,000 members and 455,000 students
In 181 countries served by 92 offices and
centres
IFRS in the professional qualification since
1996
Diploma and Certificate in IFRS
Certificate in IFRS for SMEs
Certificate in IPSAS
2
ACCA
What to do when there is no relevant IFRS

guidance some practical examples
Artworks
Grants receivable
IFRS and IFRS for SMEs
ACCA
Artworks example
Financial services and investment company
Prepares financial statements in compliance
with IFRS
Commissioned artworks from a local artist for
$500k
Statements from companys management that
they were acquired for investment purposes
Hung them in the secured reception area of the
companys offices
4
ACCA
Artworks example
Artist has successful international exhibition
Increased number of transactions in their work
Their artworks were valued at year end for
insurance purposes to $2.5 million
Net assets of $20 million
Loss of $3 million
ACCA
How should these artworks be accounted for

under IFRS?
IAS2 Inventory
Assets held for sale in the ordinary course of
business?
Is the company a commodity broker-trader?
Works held for selling in the near future,
generating a profit from price fluctuations?
IAS16 property, plant and equipment
Tangible items held for use in production or
administrative purposes and expected to be
used in more than one period
6
ACCA
How should these artworks be accounted for

under IFRS?
IFRS5 property classified as held for sale
Non-current asset available for immediate sale
and its sale must be highly probable
IAS40 Investment property
land or building held to earn rentals or capital
appreciation or both
IAS39/IFRS9 Financial instruments
A contractual right to receive cash or another
financial asset .
ACCA
IAS8 hierarchy
IAS8.10 accounting policy
Investment model was a key
Users of the financial statements relevant
information to equity shareholders and lenders
Represent faithfully position, performance etc
Reflect economic substance of transactions
Neutral
Prudent
complete
8
ACCA
IAS8 hierarchy
IAS8.11(a) Similar and related issues
Investment model points to IAS39 or IAS40
Measurement issues more like unquoted
equities or property
No need for 11(b) reference to framework
No need for reference to pronouncements of
other standards setters
ACCA
Artworks conclusions
Measurement:
IAS40 amortised cost model or fair value
through profit or loss (FVTPL)
IAS39 unquoted equities FVTPL or cost if no
reliable value
FVTPL most relevant to users
Will values of the artworks be reliable enough?
Must look to guidance in IAS40 on reliable
measurement
Disclosures of the valuer
10
ACCA
Grants from non-governmental bodies

Trying to write a companion guide to IFRS for SMEs for the
not-for-profit (NFP) sector
Section 24 of IFRS for SMEs deals with grants from
governments (national or local) or governmental agencies
Many in the social sector or NFPs receive grants from nongovernmental bodies such as private foundations, religious
groups, campaigning organisations etc.
So Section 10.4 similar to IAS8 hierarchy except may
refer to full IFRS as well
No other section in IFRS for SMEs deals with income from
non-reciprocal transactions
Are the users (donors, beneficiaries, society) want to see the
same sort of information as for government grants?
11
ACCA
Grants from non-governmental bodies

Recognition and measurement as per Section 24
When grant receivable and as conditions are met
fair value of the asset received
Disclosures from Section 24
Nature and amounts of grants recognised
Contingencies including unfulfilled conditions
The Guide recommends NFP go beyond that, to
sources, restricted and unrestricted fund
presentations
based on the wider responsibilities of most NFPs
12
ACCA
Grants
We preferred not to refer to full IFRS
IAS20 requires recognition of grant revenue in income
statement in line with related expenditure
Either net or gross
Grants for assets either separate deferral or net
against the cost of the asset
Non-monetary assets can be at fair value or a nominal
amount
IAS41 agricultural grants for biological assets
measured at fair value to be recognised when receivable
and conditions have been met (as for IFRS for SMEs)
If our guide had been to full IFRS could we have referred
to IFRS for SMEs?
13
ACCA
Conclusions when no IFRS guidance

Consider carefully whether your issue is covered
by a specific IFRS or Section
If not, apply the hierarchy carefully including the
order
Using an IFRS by analogy look at the guidance
given and disclosures
Using the framework is probably more difficult
Our not-for-profit guide to IFRS for SMEs is at
http://www.accaglobal.com/gb/en/technicalactivities/technical-resourcessearch/2015/october/companion-guide-nfp-ifrs-sme.html
14
ACCA
Juicios bajo NIIF: Aplicacin de la

NIC 8 y NIIF para Pymes y su jerarqua en
la combinacin de negocios
Contenido
1. Cuales son los principales problemas en la aplicacin de las NIIF en Colombia
2. Consideraciones contables cuando no hay guas
3. Diferencias en los criterios de combinaciones de negocios (Pymes NIIF

Plenas)
Planta Cartagena
Cuales son los principales problemas en la

aplicacin de las NIIF en Colombia?
Cuales son los principales problemas en la

aplicacin de las NIIF en Colombia?
1. El plan de cuentas y sus dinmicas contables - COLGAAP, han limitado el juicio

profesional, el cual es esencial para la aplicacin de los nuevos estndares.
2. Mayor conciencia en los contadores pblicos y sus necesidades de estar
adecuadamente preparados
Deficiencias de conocimiento
Deficiencias en el momento de implementacin de las normas
3. Baja preparacin de los contadores pblicos por parte de las universidades.

Foco en vender las especializaciones de NIIF.
4. Top Management underestimate the change Subestimacin del cambio por
parte de la alta gerencia
Cuales son los principales problemas para

aplicar las normas en Colombia
1. Determinacin de control (ej: resistencia de los abogados en reconocer el

control, aunque ya las partes lo han acordado)
2. Determinacin de activos intangibles por la adquiriente (uso de expertos para
valorar los activos antes todo era Goodwill)
3. Manejo de los activos de indemnizacin (nuevo concepto)
4. Contraprestacin contingente (nuevo concepto)
5. Calculo de los beneficios de empleados (nueva estimacin no aplicable en
COLGAAP)
6. Reconocimiento y medicin del impuesto diferido (no existe la costumbre de su
reconocimiento)
Planta Cartagena
Consideraciones contables cuando no hay

guas
Consideraciones contables cuando no hay

guias
1. Importancia de la adecuada aplicacin del juicio profesional para definir y

aplicar las polticas contables:
- Informacin sea relevante
- Informacin sea confiable
2. Considerar las fuentes de informacin:
- Guas para NIIF
- Definiciones, criterios y conceptos
- Principios generales
Dado la complejidad para aplicar y definir las polticas contables en cuestiones no
reguladas, se permite la aplicacin de las NIIF completas, de las cuales en este
aspecto las ms relevantes son:
IFRS 3 Combinaciones de negocios
IFRS 13 Medicin del valor razonable
Planta Cartagena
Diferencias en los criterios de combinaciones

de negocios (Pymes NIIF Plenas)

de negocios (Pymes NIIF Plenas)
A continuacin se detallan las diferencias ms relevantes:

Costos atribuibles a la combinacin de negocios
NIIF Pymes
los costos atribuibles a la combinacin de
negocios se reconocen como costos de la
combinacin
NIIF Plenas
de la NIIF 3 se reconocen como gasto del
ejercicio o, si son relativos a la emisin de
ttulos de deuda o patrimonio neto, como
menor valor del importe recibido.
Pagos por contraprestacin contingentes

NIIF Pymes
los pagos por contraprestacin contingente
solo se incluyen como costo de la
combinacin si se consideran probables. Si
no han sido reconocidos, y
finalmente se pagan, su importe ajusta el
costo de la combinacin.
NIIF Plenas
la NIIF 3 los pagos por contraprestacin
contingente se reconocen inicialmente al
valor razonable, como parte de la
contraprestacin entregada. Los cambios de
valor razonable posteriores no se
contabilizan como ajuste a la plusvala (es
decir, no se consideran un ajuste el costo de
la combinacin).

de negocios
A continuacin se detallan las diferencias ms relevantes:

Valoracin inicial de las participaciones no controladoras
NIIF Pymes
las participaciones no controladoras se
registran inicialmente por el importe atribuible
a estas en el valor razonable de los activos,
pasivos y pasivos
contingentes.
NIIF Plenas
la NIIF 3, adems del criterio que se sigue en
la NIIF para las Pymes, se permite reconocer
las participaciones no controladoras al valor
razonable.
Plusvala
NIIF Pymes
se reconoce inicialmente como la diferencia
entre el costo de la combinacin de negocios
y el importe atribuible a la sociedad
controladora en el importe neto del valor
razonable de los activos, pasivos y pasivos
contingentes reconocidos inicialmente de la
sociedad adquirida. La plusvala se amortiza.
10
NIIF Plenas
En la NIIF 3, la valoracin inicial de la
plusvala puede diferir si se elige medir
inicialmente las participaciones no
controladoras al valor razonable (en este caso
la plusvala incorpora la plusvala atribuible a
las participaciones no controladoras). En la
NIIF 3 la plusvala se contabiliza al costo
menos, en su caso, deterioro, sin que sea
objeto de amortizacin sistemtica.
Planta
Planta Cartagena,
Cartagena, Colombia
Colombia
Gracias
Conferencia IFRS
Cartagena, Colombia
Panel de discusin:- tema regulatorio NIIF

( esta sesin es exclusivamente para reguladores de NIIF)
AMARO GOMES
Miembro
IASB
MAURICIO ESPAOL LEN

Coordinador Grupo de Regulacin e
Investigacin Contable Supersociedades
DANIEL SARMIENTO
Consejero
LUCINDA DAZ
Coordinador, Convergencia a las NIIF y NIC Proyecto
Conferencia IFRS
Cartagena, Colombia
Sesiones paralelas: Proyectos del IASB y miembros de temas

regulatorios::
Actividades reguladas por tasas y esquemas de

Intercambio
DARREL SCOTT
Miembro
IASB
Pollutant Pricing
Mechanisms and
Rate-regulated activities
Cartegena, Columbia
November 2015
Darrel Scott
IASB Board Member
Agenda
Introduction
Conceptual Framework elements
Pollutant Pricing Mechanisms
Project background
Cap-and-trade emissions trading schemes
Accounting issues
Rate Regulation
Project background and update
Defined rate regulation
Accounting issues
Assets and Liabilities

Rate Regulation and ETS activities
Governments restrict or regulate specified activities

Variety of mechanisms used to achieve similar objectives
Mechanisms may create rights and obligations
Applying the IASBs Conceptual Framework
Do the rights and obligations create assets/liabilities?

If so, should they be recognised?
What is the nature of those assets/liabilities?
When should they be recognised?
How should they be measured?
Should they be accounted for separately or in combination
with related items?
In May 2015, the IASB published proposals to revise the

Project objectives: To improve financial reporting by
providing a more complete, clearer and updated Conceptual
Framework that can be used by:
the IASB when it develops International Financial Reporting
Standards (IFRS); and
others to help them understand and apply IFRS.
Comment deadline: 25 November 2015

Elements
Elements are the basic building blocks from which financial

statements are constructed
Statement of financial position
Assets
Liabilities
Equity
Statement(s) of financial performance

Income
Expenses
Definitions of Elements
Asset: Present
economic resources
controlled by the
entity as a result of
past events
Liability: Present obligations of the

entity to transfer an economic
resource as a result of past events
Equity: Assets - Liabilities
An economic resource is a right that has the potential to

produce economic benefits.
A present obligation is an obligation to transfer economic
resources that:
the entity has no practical ability to avoid; and
has arisen from a past event (ie economic benefits already
received or activities already conducted)
7
Pollutant pricing
mechanisms
(formerly Emission Trading Schemes)

Where are we in the project?
Early stages
staff research: identifying the financial effects of various
schemes and current accounting practices
wide variety of accounting methods used in financial
statements
IASB aims to issue a Discussion paper for comment
Previous project (2005-2010)

Began after the issue (2004) and withdrawal (2005) of
IFRIC 3 Emission Rights
IASB made some tentative decisions about cap-and-trade
issues but these will be revisited
Purpose of this session
Generate discussion
Gather your viewsthe IASB has not been asked to make
any decisions yet, we are researching the issues
Consider issues about the nature of any assets and liabilities
created, when they should be recognised and how they
should be measured
Looking from a fresh start perspective so starting

with a blank sheet of paper
Growth of pollutant pricing

mechanisms
10
Climate change is a critical issue

More jurisdictions developing some form of pollutant
emissions reduction policy
Emissions trading schemes is a common solution
Others include carbon taxes or environmental regulations
Pollutant pricing mechanisms

European
Emissions
Trading
Scheme
(EU ETS)
World
Capital
Initiative
(WCI)
Republic
of Korea
cap-andtrade
scheme
Regional
Greenhouse
Gas Initiative
(RGGI)
AB 32 Capand-Trade
(California)
Tokyo
Emissions
Trading
Scheme
New
Zealand
Emissions
Trading
Scheme
Many
existing &
proposed
schemes
11
There are many emission trading

schemes in place around the
world. They differ in details but
have many common features.
No current
international
guidance
Divergent
accounting
practices
Greenhouse
Gas
Reduction
Scheme
(GGAS)
US Acid
Rain
Program
Cap-and-trade type of schemes
12
Common features
Overall cap
(emissions
target)
Units of emission (eg tonnes of CO2) that may

be released by emitters within commitment
period
Implementation Allocation of allowances to participants up to

of overall cap
cap. Typically reducing instalments.
Trading
mechanism
Allowances are tradeable.
Remittance
obligation
Allowances covering total emissions made

during the compliance year
Main accounting issues
13
What elements should an entity recognise in its financial

statements for emissions trading schemes?
Allowances are they assets?
If so, what type of asset? (intangible, financial, inventory)
What are the obligations/liabilities in the scheme when do
they arise?
Should the assets/liabilities be recognised?
How do you measure the assets and liabilities?
What income/expenses arise and when do you recognise
gains/losses?
Cap and trade scheme

Example: Assets
14
Fact Pattern
On 1 Jan 14, government gives 50 000 free allowances to Entity A
Entity A expects to emit 52 000 tonnes during 2014
A deep and liquid trading market exists for allowances but
Entity A decides not to sell any of its allowances
On 30 Sept 14, Entity A purchases 2,000 allowances in the market
Entity A submits the 52,000 allowances to the scheme
administrator on 1 Apr 15, in accordance with scheme rules
Does A have an assets before 1 Jan 2014? And on 1

Jan 2014? And on 31 Dec 2014?
Asset: Present
economic resources
controlled by the
past events
15

An economic resource is a right that has the potential to

produce economic benefits.
The allowances are tradeable instruments that:
are allocated free of charge or auctioned
have market value
can be sold or used to settle obligation

Asset recognition
16
Allocated
allowances
(Free)
Purchased
Allowances
Recognition
Should allowances be recognised as
assets? What type of asset?
Intangible, financial, inventory

Measuring the assets
17
Alternative 1: Measure the assets initially and subsequently at

fair value
Alternative 2: Measure the assets initially at fair value or cost,
no remeasurement
Alternative 3: Measure the assets based on intended use
a) held for use: measure assets initially at fair
value or cost, no remeasurement
b) trading: measure assets initially and
subsequently at fair value

Example: Liabilities
18
Fact Pattern
On 1 Jan 14, government gives 50 000 free allowances to Entity A
Entity A expects to emit 52 000 tonnes during 2014
A deep and liquid trading market exists for allowances but
Entity A decides not to sell any of its allowances
On 30 Sept 14, Entity A purchases 2,000 allowances in the market
Entity A submits the 52,000 allowances to the scheme
administrator on 1 Apr 15, in accordance with scheme rules
Does A have an obligation before 1 Jan 2014? And on

1 Jan 2014? And on 31 Dec 2014?
Asset: Present
economic resources
controlled by the
past events
19

Present obligation: obligation to transfer economic resources

entity has no practical ability to avoid; and
has arisen from a past event (ie economic benefit already
received or activities already conducted)
Entity A has obligation for pollutants emitted in the period

no obligation to emit
no obligation to return unused allowances

Measuring the Liability
20
Alternative 1: Measure the liability at the market price of the

number of allowances needed to settle the
obligation, using actual volume of emissions
Alternative 2: Measure the liability at the carrying amount of
allowances on hand (cost or fair value), with any
shortfall measured at the market price
10

Accounting mismatches
21
Liability settled at
end of compliance
period
Asset recognised
when allowances
received
Obligation to remit allowances

arises as emissions occur
Observed accounting practice: designed to minimise

accounting mismatches caused by differences in the
timing and measurement of assets and related liabilities
Rate Regulated Activities

11
Discussion Paper
Reporting financial effects of rate regulation
Observed
accounting policies
are designed to
Comprehensive
project for rateregulated activities:
Discussion Paper
published
September 2014
23
What information is needed to help

investors understand the financial
effects of rate regulation?
What do we mean by rate
regulation?
How does rate regulation affect the
amount, timing and certainty of
revenue, profit and cash flows?
How should IFRS be amended, if at

all, to provide relevant information to
Comment deadline:
investors through IFRS financial
15 January 2015
statements?
24
Is a restriction in the setting of prices that can be

charged to customers for essential goods or services
Requires suppliers to adjust the selling price (rate) to
recover allowable costs or unbilled revenue amounts, or
eliminate excess revenue or profits
Regulates the timing and amount of revenue (and profit) that

an entity can bill to its customers
Defined rate regulation creates differences between
amounts reported to rate regulator and those reported in
IFRS financials (regulatory deferral account balances)
12
Reporting
Financial effects of rate regulation
25
Exploring viable financial reporting approaches

Responses to DP suggest strong support for
recognising some regulatory deferral account balances
Most common suggestion is focus on a revenue-based
approach, using either:
an Interpretation of / amendment to IFRS 15 Revenue
from Contracts with Customers; or
a separate Standard based on the principles in IFRS 15
Relate the rights and obligations to the definitions of

asset and liability in the Conceptual Framework
26
Creates enforceable rights and obligations for entity and

rate regulator
3-way relationship
Rate regulator
Focus of the rate
regulation
project
Affects relationship
between rate
regulator and
entity
Rate-regulated entity
Entitys customers
Existing standards
13
The revenue requirement
27
Allowable revenue based on estimates

Consideration entity is entitled to for estimated volume of
sales to customers plus other rate-regulated activities to be
performed in the period
Regulated rate (ie price per unit) equals estimated revenue
requirement divided by estimated sales units
Revenue requirement recovered through future billings to

customers at regulated price per unit
Observed accounting practice: revenue based on
regulated price per unit and goods and services delivered
to customers ie based on the contracts with customers
Accounting issue
28
Should the entity recognise a regulatory asset or regulatory

liability when:
the regulated rate reflects activities that:
occur in a different period?
do not meet the definition of a performance obligation in
IFRS 15?
the regulated rate will be adjusted in the next or subsequent

period(s) to reverse any under- or over-recovery by the entity
14
Revenue Requirement
Example
29
Fact Pattern
Entity As regulator determines a fixed revenue requirement of
CU200million for 3 year period (x1, x2 and x3)
Determination includes:
CU10m per year for storm costs (no costs in x1 or x2, CU30m in x3)
CU5m per year for research project (project starts in x2)
CU5m per year for CU15m under recovered in prior period
In x1, A actually receives CU210m
How much revenue should A report in x1? If not

CU210m, what should happen to the difference?
Next steps
30
Continue research with targeted consultation/field work

Develop proposals for an accounting model
Consider implications of the responses to the Conceptual
Framework proposals
Consult more widely through a second Discussion Paper
15
Thank you
31
32
Appendix
Pollutant pricing
mechanisms

16
Observed policiesallowances
Approach Approach
1
Initial recognition
Allocated
Approach 3
33
Approach 4
Recognise and
allowances measure at market

value at date of
Recognise and
Recognise and
measure at cost,
measure at market
which for granted value at date of
issue; corresponding allowances is nil.
issue; corresponding
entry to government
entry to income
grant.
(day 1 gain).
Purchased Recognise and measure at cost.

allowances
Observed policiesallowances (2)

Approach 1 Approach 2
of
Allowances are
Approach 3
Approach 4
Allowances are
Allowances are
allowances subsequently measured subsequently

Subsequent treatment
34
subsequently
at cost or market value, measured at cost, measured at cost

subject to review for
subject to review
or market value,
impairment.
for impairment.
subject to review
for impairment.
of
Government grant
Not applicable.
government amortised on a
grant
systematic and rational

basis over compliance
period.
17
Observed policiesliabilities
Approach Approach
Initial recognition
Liability
35
Approach 3
Approach 4
Recognise liability
Recognise liability when incurred
Recognise
when incurred
(ie as emissions are produced).
liability when
(ie as emissions are However, the way in which the
incurred
produced).
liability is measured means that
(ie as emissions
often no liability is shown in the
are produced).
statement of financial position until

emissions produced exceed the
allowances allocated to the
participant.
Observed policiesliabilities (2)
Liability
Subsequent measurement
Approach 1
Approach 2
36
Approach 3
Approach 4
Liability is
Liability is measured based on:
Liability is measured based on:
Liability is
measured based
the carrying amount of
measured
the carrying amount of allowances
on the market
on hand at each period end to be
allowances on hand at each
based on
value of
used to cover actual emissions (ie
period end to be used to
either
allowances at each
market value at date of recognition
cover actual emissions (nil or Approach 1
period end that
if cost model is used; market value
cost) on a FIFO or weighted
or
would be required
at date of revaluation if revaluation
average basis; plus
Approach 2
to cover actual
model is used) on either a FIFO or
the market value of
emissions,
weighted average basis; plus
allowances at each period
the market value of allowances at
end that would be required to
each period end that would be
cover any excess emissions
required to cover any excess
(ie actual emissions in
emissions (ie actual emissions in
excess of allowances on
excess of allowances on hand).
hand).
regardless of
whether the
allowances are on
hand or would be
purchased from
the market.
18
Jargon busting
37
Pollutant pricing mechanisms: price- or market-based approaches used to

control pollution by providing economic incentives for achieving reductions in
the emissions of pollutants. The price can be set directly (eg through a tax)
or indirectly through a market.
Cap-and-trade emissions trading scheme (ETS): a type of ETS in which
the government sets an overall cap on the volume of specified pollutants
and uses tradeable allowances (sometimes called certificates, rights or
credits) of equal quantity to establish the price.
Participants: entities that emit the specified pollutants that are subject to an
ETS and have an obligation to remit allowances to the government.
Traders: entities that buy and sell emissions allowances but are not
participants in the scheme.
Commitment period: the period over which the cap has been established.
Compliance year: a year within the commitment period, for which the
participant must verify its emissions and submit allowances.
19
Conferencia IFRS
Cartagena, Colombia

regulatorios:
Instrumentos financieros con caractersticas de

patrimonio
STEPHEN COOPER
Miembro
IASB
Financial Instruments with

Characteristics of Equity
Joint IFRS Foundation and INCP IFRS Conference, Cartagena
November 2015

Agenda
Background and current requirements
Case studies
What are the challenges?
How are we approaching these challenges?
Next steps
3
Background and current

requirements

About this project
The issue of debt vs equity has a long history in standard

setting
on and off the agenda of the FASB and IASB since 1986
the MoU project with the FASB (suspended in 2010)
Responses to the Agenda Consultation 2011 noted

continuing challenges with IAS 32 Financial Instruments:
Presentation
however IAS 32 proved robust during financial crisis
The IASB considered some of the issues in the Conceptual

Framework project
The Research Project continues that work with a focus on
IAS 32
How will the project interact with the Conceptual

Framework project?
The recent Conceptual Framework Exposure Draft will include proposed

changes to the definition of a liability:
Those changes are directed at addressing problems to do with the
application of the definition to uncertain or conditional liabilities.
However, those changes do not address problems to do with the

application of the definition to distinguishing liabilities from equity claims:
the IASB will consider these problems in this research project, and the
research project will not be constrained by the proposed definitions in the
Conceptual Framework ED
one possible outcome of the research is a recommendation to consider
adding a project to amend the Conceptual Framework in relation to
distinguishing between liabilities and equity
nevertheless, the IASB does not expect that any potential changes will
reverse the clarifications to be suggested in the Conceptual Framework ED
What is the scope of the project?

This project is investigating potential improvements:
to the classification of liabilities and equity in IAS 32, including
investigating potential amendments to the definitions of liabilities
and equity in the Conceptual Framework; and
to the presentation and disclosure requirements, irrespective of
whether they are classified as liabilities or equity.
By exploring ways to provide information through classification,

presentation and disclosure, it is hoped that the project will be
more successful
We are not starting with a blank sheet of paper, we are starting
with the current requirements of IAS 32
Current requirements
IAS 32 has two main requirements for financial

liabilities:
Obligation to transfer cash or another financial asset
Obligation to transfer variable number of shares (or, for
derivatives, not fixed-for-fixed)
Some basic examples:
Case 1: Ordinary shares: No obligation to transfer anything, does
not meet the definition of liability, therefore equity.
Case 2: Fixed debt: Obligation to transfer a specified amount of
cash at a specified time meets the definition of a liability.
Current requirements
However IAS 32 has seen various exceptions through

piecemeal amendments over the years:
Some puttable shares classified as equity
even though there is an obligation to transfer cash
Foreign currency rights issues classified as equity

even though there is an obligation to transfer shares that
is not fixed-for-fixed in the functional currency
What information is currently provided

through classification as liabilities or equity?
Classification provides the following information:

Financial position:
Aggregation of total liabilities and total equity
Measurement:
Direct measurement if liability (eg amortised cost, fair value
etc); or
Indirect measurement if equity (eg through allocation of the
accounting residual)
Financial performance:
Changes in liabilities are income or expense
Changes in equity are not income or expense
10
Case studies

Case 1: Ordinary shares (no liabilities)
11
Ordinary share: An obligation to deliver any remaining assets at liquidation and

to participate in any dividends paid, however the timing, amount or type (eg cash)
of payment is not specified.
Depiction through indirect measurement (ie depending on the recognition and
measurement of the assets) is sufficient because the claim depends only on the
assets.
Financial
Performance
Financial
Position
Assets
Ordinary shares
Changes in
equity
Total profit or loss

and other
comprehensive
income
Total net income

generated on
assets
(return on assets)
Return on ordinary
shares
Case 2: Cash-settled debt
12
Cash-settled debt: An obligation to deliver a specified amount of cash at a

specified time prior to liquidation.
Depiction of cash-settled debt through direct measurement (eg amortised cost or
fair value) and presentation separately from ordinary shares provides a user with
information about:
the cash payment requirement; and
returns to the debt holder as determined by the specified amount (eg interest)
Financial
Position
Financial
Performance
Changes in
equity
Interest on cashsettled debt

Cash-settled debt
Total net income
generated on
assets
(return on assets)
Assets
Ordinary shares

and other
comprehensive
income
Return on ordinary
shares
Case 3: Puttable shares
13
Puttable shares: An obligation to deliver, at the option of the holder, an amount

of cash equal to the value of a fixed number of ordinary shares:
Cash payment requirement is similar to cash settled debt
However value changes (hence returns) are similar to ordinary shares
Currently meet the definitions of a liability under both IAS 32 and CF (although
IAS 32 has an exception if they are the most residual claim)
Financial
Position
Financial
Performance
Cash-settled debt
Assets
Puttable shares
Changes in
equity
Total net income

generated on
assets
(return on assets)
Ordinary shares
Gain/loss on
puttable shares
and other
comprehensive
income
Return on ordinary
shares
Case 3: Puttable shares (as liability)
14
Depiction of puttable shares through direct measurement and presentation

separately from ordinary shares provides a user with information about the
similarity with cash settled debt (the cash payment requirement)
But how can we depict the similarity with ordinary shares?
Financial
Position
Financial
Performance
Cash-settled debt
Assets
Puttable shares
Ordinary shares
Changes in
equity
Total net income

generated on
assets
(return on assets)
Gain/loss on
puttable shares
and other
comprehensive
income
Return on ordinary
shares
Case 3: Puttable shares (as equity)
15
Depiction of puttable shares through indirect measurement and presentation

separately from cash-settled debt provides a user with information about the
similarity of returns with ordinary shares
But how can we depict the similarity with cash-settled debt?
Financial
Performance
Financial
Position
Cash-settled debt
Assets
Puttable shares
Changes in
equity
Total net income

generated on
assets
(return on assets)

and other
comprehensive
income
Ordinary shares
Gain/loss on
puttable shares
Return on ordinary
shares
Case 4: Share-settled debt
16
Share-settled debt: Obligations to deliver a variable number of common shares

equal to the value of a fixed monetary amount (eg CU 100).
Value changes (hence returns) are similar to cash-settled debt
However, lack of any requirement to pay cash (or transfer any economic resources)
is similar to ordinary shares
Currently meet the definition of a liability under IAS 32 but not under the CF
Financial
Position
Financial
Performance
Cash-settled debt
Assets
Share-settled debt
Ordinary shares
Changes in
equity
Total net income

generated on
assets
(return on assets)
Gain/loss on
share-settled debt
and other
comprehensive
income
Return on ordinary
shares
Case 4: Share-settled debt (as liability)
17
Depiction of share-settled debt through direct measurement and presentation

separately from ordinary shares provides a user with information about its
similarity with cash-settled debt (ie returns based on a specified amount)
But how can we depict the similarities with ordinary shares?
Financial
Performance
Financial
Position
Cash-settled debt
Assets
Share-settled debt
Changes in
equity

Total net income
generated on
assets
(return on assets)
Common shares
Gain/loss on sharesettled debt

and other
comprehensive
income
Return on common
shares
Case 4: Share-settled debt (as equity)
18
Depiction of share-settled debt through indirect measurement and presentation

separately from cash-settled debt provides a user with information about the
similarity with ordinary shares (ie the lack of cash requirement)
But how can we depict the similarities with cash-settled debt?
Financial
Position
Financial
Performance
Cash-settled debt
Assets
Share-settled debt
Ordinary shares
Changes in
equity
Total net income

generated on
assets
(return on assets)
Gain/loss on sharesettled debt

and other
comprehensive
income
Return on ordinary
shares
19
What are the challenges?

Challenges
20
Conceptual challenges
Fundamental challenge of depicting similarities and
differences between a wide range of claims with a single
distinction
Difficulty identifying the underlying rationale of the
distinction between liabilities and equity in IAS 32
Application challenges
Difficulty applying requirements of IAS 32 to some types
of instruments
Some requirements of IAS 32 are inconsistent,
incomplete or unclear
What is the fundamental challenge?
21
Economic factors
Wide range of different types of claims

Claims can also be complex and opaque
Financial instruments can be structured in different ways
Instruments with a mix of debt and equity features are becoming
more prevalent.
Accounting factors
We want to distinguish between claims to show similarities and
differences
Distinction between liabilities and equity has polarised reporting
outcomes with consequences for balance sheet and performance
ratios and analysis
We are constrained by partial recognition and mixed measurement
What is the underlying rationale of

IAS 32?
22
Inconsistent use of liability definition in IFRS

variable share settlement requirement not in Conceptual
Framework (or IFRS 2)
Exception to IAS 32 for puttable shares

otherwise some entities would have no equity (ie all claims
meet definition of a liability)
Put options on own equity instruments

PV of redemption amount as liability
If fixed redemption amount, then accounting arguably consistent with
convertible bonds
If fair value redemption amount, then should changes in value of
shares be recognised in P&L?
Complex instruments
23
Contingently convertible bonds

Many banks have been issuing these lately for
regulatory capital purposes
Have various outcomes depending on different types of
contingent events
Put options written on non-controlling interest shares

Common example is when NCI is closely held
Issuer has the obligation to repurchase shares at the
option of the holder(s)
Foreign currency convertible bonds

Many entities raise capital in foreign markets
Unclear requirements
24
When does a contractual obligation exist?

What does the fixed in the fixed-for-fixed really mean?
When is a contingent settlement option within control of
holder?
How should the present value of redemption amount be
measured?
How should items be accounted for within equity?
25
How are we approaching

these challenges?

Approaches other than binary distinction
26
Some suggest a no-split or claims approach

However recognised elements are not complete,
therefore there needs to be one element that is a
residual measurement
Some suggest third category

Would changes be income/expense?
We can have sub-classes within liabilities or equity
IASB tentatively decided to continue to make a binary

distinction between liabilities and equity, and to use
additional sub-classes within liabilities or within equity
for additional info
Overall approach
27
Conceptual
Need to identify, confirm (or change) and reinforce
underlying rationale for the distinction between
liabilities and equity
Need to develop other distinctions within liabilities or
within equity that will provide other information through
better presentation and disclosure
Application
Need to improve consistency, completeness and
clarity of requirements
Approach to conceptual challenges
28
Information about all relevant characteristics will need to

be provided in the financial statements in some way.
Our challenge is to identify:
what information is best provided using the debt/equity distinction;
and
what information is best provided through disclosure, presentation
of subclasses and other means (such as EPS).
To do the above, we need to better understand:

What distinctions between claims might be useful and why.
How different approaches to the classification might enhance (or
diminish) the usefulness of the distinction.
Should all information rely on the same

distinction?
29
Features of claims have different consequences for the

financial position and financial performance of the entity
Using the same distinction for all information provided results
in trading-off the usefulness of depicting one feature for
another
Instead we might provide more useful information by
depicting different features in different ways
Recent discussions
30
In June and July the IASB discussed:

what features of claims might be relevant to users of financial statements,
including:
the timing of the transfer of economic resources (eg specified payment dates)
the amount of economic resources required to be transferred if the claim is
settled (eg currency units, commodity units etc)
the type of economic resource to required to be transferred (eg cash)
the priority of the claim on liquidation (eg senior, junior etc)
the relevance of those features to assessments of financial position and

financial performance
In September the IASB discussed:

an analysis of the existing requirements in IAS 32 using the features
identified; and
three possible approaches for improvements to those requirements based
on the features identified
Recent discussions
31
In October the IASB discussed:

the challenges with the accounting for derivatives on own equity and
how IAS 32 deals with those challenges.
The IASB has not yet formed preliminary views.
32
Next steps?

Next steps
33
IASB has acknowledged that a single distinction cannot convey all

relevant characteristics of claims against an entity
The IASB will still need to decide on classification, however, in
addition, the IASB will consider presentation and disclosure
requirements in parallel
The IASB is currently considering the various features of claims,
their implications for the entity, and how information about those
features can be best provided to users of financial statements
Thank you
34
Expressions of individual
views by members of
the IASB and its staff
are encouraged.
The views expressed in this presentation are those
of the presenter. Official positions of the IASB on
accounting matters are determined only after
extensive due process and deliberation.
Conferencia IFRS
Cartagena, Colombia

regulatorios:
Marco Conceptual
MIKE WELLS
IASB
The Conceptual Framework

and IASB project

Why the Conceptual

Framework matters to you
The Conceptual Framework for Financial Reporting

Why the Conceptual Framework matters
Concepts for the IASB to use when setting IFRS (cohesiveness)

IFRS mindset
the lens through which IFRS judgements are made/audited/regulated
Basis for developing accounting policy when no specific IFRS applies
Objective
Concepts
Principles
Rules
If no IFRS specifically applies: develop

policy by applying the IAS 8 hierarchy

decisions by existing and potential investors, lenders and
other creditors who cannot require information directly and
that can be faithfully represented etc.
Process:
1st try to analogise to requirements in IFRS dealing with
similar and related issues; and
concepts in Framework
may also use most recent pronouncements of others with
similar conceptual framework, other accounting literature
and accepted industry practices, to the extent that these
do not conflict with the sources in 1 and 2 above.
What do you think?

judgement
Questionhow should an entity account for a grant from a nongovernmental philanthropist? Objective = relevant information.
Select one of:
1) In accordance with IAS 20similar and related to a government grant
2) In accordance with IAS 41.34 and .35similar and related to a
government grant
3) It dependsIAS 41 if the grant relates to an asset is carried at fair
value; otherwise IAS 20similar and related to a government grant
4) Another accounting policy in accordance with the definitions,
recognition criteria and measurement concepts in the Conceptual
Frameworknot similar and related to a government grant.
The objective of IFRS


What do you think?

objective of IFRS financial information
Questiontoday the objective/s of IFRS reporting is to provide financial

information about the reporting entity that is useful to?
Select one of:
1) existing and potential investors (including the controlling shareholder),
lenders and other creditors in making resource allocation decisions
(buy, sell, hold, provide loan/settle);
2) existing and potential investors, lenders and other creditors who cannot
require reporting entities to provide information directly to them in
making resource allocation decisions;
3) same as 2) PLUS a second equal objectivestewardship; or
4) a broad range of users who are not in a position to demand reports
tailored to meet their particular information needs.
Objective of IFRS financial reporting
Provide financial information about the reporting entity that is

useful to existing and potential investors, lenders and other
creditors in making decisions about providing resources to
the entity (buy, sell, hold, provide loan/settle) (OB 2)
who cannot require reporting entities to provide information
directly to them (OB 5)
who have a reasonable knowledge of business and
economic activities and who review and analyse the
information diligently (QC 32)

continued
Investors, lenders and other creditors expectations about

returns depend on their assessment of the amount, timing
and uncertainty of (the prospects for) future net cash
inflows to the entity.

continued
10
To assess an entitys prospects for future net cash inflows,

existing and potential investors, lenders and other creditors
need information about:
the resources of the entity;
claims against the entity; and
stewardshiphow efficiently and effectively the entitys
management and governing board have discharged their
responsibilities to use the entitys resources.
eg protecting the entity's resources from unfavourable
effects of economic factors such as price and
technological changes; and ensuring legal compliance.
What do you think?

stewardship
11
Questionstewardship is best satisfied with?

Select one of:
1. cash accounting (no accruals);
2. historical cost accounting (no depreciation; no impairment);
3. cost-impairment accounting (no depreciation);
4. cost-depreciation-impairment accounting;
5. fair value accounting (without some assets, eg brands); or
6. fair value accounting (with all assets).
IASB projectwhat do you think?

stewardship
Questionshould the IASB give more prominence within the
objective of financial reporting to stewardship?
Select one of:
1. Yes;
2. No; or
3. I dont know.
12
Qualitative Characteristics

Qualitative characteristics
14
If financial information is to be useful, it must be relevant and

faithfully represent what it purports to represent (ie
fundamental qualities).
Financial information without both relevance and faithful
representation is not useful, and it cannot be made useful by being
more comparable, verifiable, timely or understandable.
The usefulness of financial information is enhanced if it is

comparable, verifiable, timely and understandable (ie
enhancing qualitiesless critical but still highly desirable)
Financial information that is relevant and faithfully represented may
still be useful even if it does not have any of the enhancing
qualitative characteristics.
Fundamental qualitative characteristics
15
Relevance: capable of making a difference in users decisions

predictive value (input to process to predict future cash flows)
confirmatory value (confirm/disconfirm prior cash flow expectations)
materiality (entity-specificcould affect a users decision)
Faithful representation: faithfully represents the phenomena it

purports to represent
completeness (depiction including numbers and words)
neutrality (unbiased)
free from error (ideally)
Note: faithful representation replaced reliability
Accounting policies
16

decisions by existing and potential investors, lenders and
other creditors who cannot require information directly and
that can be faithfully represented etc.
Principle = voluntary change of accounting policies only if
results in more relevant information (IAS 814)
Application guidance = it is highly unlikely that a change from
the fair value model to the cost model will result in a more relevant
presentation. (IAS 4031)
What do you think?

judgement: relevance
17
Questioncan an entity justify voluntarily changing its accounting

policy for a class of property, plant and equipment from the
revaluation model to the cost model? Select one of:
1) Yesthe cost model will result in a more relevant presentation;
2) Highly unlikelybecause it is highly unlikely that a change
from the revaluation value model to the cost model will result in a
more relevant information; or
3) Nothe cost model will not result in a more relevant
information.
Enhancing qualitative characteristics
18
Comparability: like things look alike; different things look

different
Verifiability: knowledgeable and independent observers
could reach consensus, but not necessarily complete
agreement, that a depiction is a faithful representation
can be direct or indirectcheck inputs, recalculate output
Timeliness: having info in time to be capable of influencing

decisionsgenerally older information is less useful
Understandability: classify, characterise, and present
information clearly and concisely
What do you think?

prudence
19
Questionin IFRS speak prudence is? Select one of:

1) the inclusion of a degree of caution in the exercise of the judgements
needed in making the estimates required under conditions of uncertainty (it
does not permit bias);
2) a bias towards understating assets and income and to overstating
liabilities and expenses (ie unconditional conservatism);
3) a bias towards the more timely recognition of expenses and liabilities
rather than income and assets (ie conditional conservatism);
4) a useful mechanism for smoothing profits over time (understate profits in
good years and overstate profits in bad years); or
5) reporting profit at the number management would like it to be.

prudence
20
Questionshould the IASB reintroduce an explicit reference to

prudence and state that prudence is important in achieving
neutrality?
Select one of:
1) Yes;
2) No; or
3) I dont know.
Cost constraint
21
Reporting financial information imposes costs, and it is

important that those costs are justified by the benefits of
reporting that information.
In applying the cost constraint, the IASB assesses whether
the benefits of reporting particular information are likely to
justify the costs incurred to provide and use that
information.
Elements

Identifying elements
Asset (see Conceptual
Framework 4.4(a))
resource controlled by the

entity
expected inflow of economic
benefits
Liability (4.4(b))
present obligation
expected outflow of
economic benefits
Equity (4.4(c))
assets liabilities
23
Income (4.25(a))
recognised increase in
asset/decrease in liability in
current reporting period
that result in increased equity
except
Expense (4.25(b))
recognised decrease in
asset/increase in liability in
current period
that result in decreased equity
except
What do you think?

example 1levy based on revenue
24
Facts
Question
Government charges levy on entities that

supply electricity to a specific market.
Whats the economics?

At 31/12/20x0 does the
supplier have a liability?
Levy is charged on suppliers operating in

market on 1 April each year.
Levy is 10% of suppliers revenue for the
previous year ending 31 December.
Entitys revenue in 20x0 = CU100 million.
Suppliers are permitted to enter or exit
market at any time.
1) Yes;
2) Nono present obligation;
3) Nono expected
economic benefit outflow;
4) Noneither present
obligation nor expected
outflow.
What do you think?

example 2levy based on revenue
Question
Facts
Levy is charged on suppliers operating in
25
Whats the economics?

1)
2)
The annual amount of the levy is fixed for 3)
the next 10 years at 10% of suppliers 4)
revenue for the year ending 31/12/20x0.

market at any time.
Yes1 years levy;

Yes100 years levies;
Nono present obligation;
Nono expected
economic benefit outflow;
5) Noneither present
obligation nor expected
outflow.
IASB project
proposed new liability definition
26
A liability is a present obligation of the entity to transfer an

economic resource as a result of past events.
An entity has a present obligation to transfer an economic
resource if both:
the entity has no practical ability to avoid the transfer; and
the obligation has arisen from past events; in other words,
the entity has received the economic benefits, or conducted
the activities, that establish the extent of its obligation.

example 2 (on ED)levy based on revenue
ED applied to the facts
27
Question


Levy is charged on suppliers operating in 1) Yes1 years levy;
2) Yes10 years levies;
3) Nohas practical ability
The annual amount of the levy is fixed for
to avoid; or
the next 10 years at 10% of suppliers 4) Nohas not yet
revenue for the year ending 31/12/20x0.
conducted the activities,
that establish the extent
of its obligation.

market at any time.

proposed description of present obligation
Questiondo you agree with the proposed definition of a
present obligation?
Select one of:
1) Yes;
2) No; or
3) I dont know.
28
IASB projectexecutory contract
29
A contract that is equally unperformed establishes a right and an

obligation to exchange economic resources.
That right, and the obligation to exchange economic resources,
are interdependent and cannot be separated. Hence, the
combined right and obligation constitute a single asset or liability.
The entity has:
an asset if the terms of the exchange are favourable;
a liability if the terms of the exchange are unfavourable.

asset or liability or both: executory contract
30
Questiondo you agree that the combined right and obligation in

an executory contracts constitute a single asset or liability?
an asset if the terms of the exchange are favourable;
a liability if the terms of the exchange are unfavourable.
Select one of:
1) Yes;
2) No; or
3) I dont know.
What do you think?

recognition and derecognition
31
Conceptually, does failure to:

recognise an item that meets the definition of an element; or
derecognise an item that no longer satisfies the definition of an
element
result in relevant information?
Select one of:
1) Yes;
2) No; or
3) I dont know.
What do you think?

meaning of recognition criteria: probable
What does probable mean?
Select one of:
1)>0% probability;
2)>50% probability (ie more likely than not);
3)>75% probability;
4)100% probability;
5)a qualitative assessment; or
6)unspecified meaning.
32
What do you think?

meaning of recognition criteria: reliability
33
What does measure with reliability mean?

1) complete, neutral and free from error (ie faithful
representation);
2) the degree of measurement uncertainty associated with an
item;
3) precision; or
4) different knowledgeable and independent observers could
reach consensus, although not necessarily complete
agreement, that a particular depiction is a faithful
representation of what it purports to represent (ie verifiability).
Derecognition
concept?
34
There is no explicit concept for derecognition in the

Conceptual Framework. Consequently:
derecognition requirements are specified at the Standards
level
inconsistencies exist between the derecognition
requirements of different IFRSs
derecognition does not necessarily coincide with no longer
meeting the requirements specified for recognition
Measurement
35
Measurement is the process of determining the monetary

amounts at which the recognised elements are carried.
IFRS measurements are largely based on estimates,
judgements and models.
Conceptual Framework currently does NOT provide
concepts for measurement. It only provides a list of
measurement conventions (4.544.56)
What do you think?

most relevant measurement
36
Which of the measurements below, if used for all of the asest of

all entities, would provide the most relevant information?
Select one of:
1) historical cost (no depreciation; no impairment);
2) cost model (cost-depreciation-impairment);
3) fair value
4) revaluation model (fair value-depreciation-impairment)
5) value in use;
6) net realisable value; or
7) another measurement.
What do you think?

single measurement or mixed measurement
37
Should a single measurement basis be specified for

all assets?
Select one of:
1. Yes;
2. No; or
3. I dont know.
IASB projectmeasurement
38
Consideration of the objective of financial reporting, the

qualitative characteristics and the cost constraint is likely to
result in different measurement bases for different items
(paragraph 6.3 of IASB Exposure Draft Conceptual Framework
for Financial Reporting)
The selection of a measurement (paragraph 6.35 of IASB
Discussion Paper DP/2013/1 A Review of the Conceptual
Framework for Financial Reporting)
for a particular asset should depend on how that asset
contributes to future cash flows
for a particular liability should depend on how the entity will
settle or fulfil that liability
the number of different measurements used should be the
smallest number necessary to provide relevant information.
Presentation
39
Presentation: financial statements portray financial effects

of transactions and events by:
grouping into broad classes (eg liability)
sub-classifing liabilities by their nature (eg separate
provisions from financial liabilities) and into current and
non-current
analysing provisions by class
not offseting assets and liabilities (or income and
expenses)
Presentation: financial position

why classify assets and claims?
40
Information about the nature and amounts of a reporting entitys

economic resources and claims can help users to identify the
reporting entitys financial strengths and weaknesses.
That information can help users to:
assess the reporting entitys liquidity and solvency
its needs for additional financing and how successful it is
likely to be in obtaining that financing. (OB13)
Presentation: financial position

why classify claims?
41
Information about priorities and payment requirements of

existing claims helps users to predict how future cash flows will
be distributed among those with a claim against the reporting
entity (OB13)
For example, if you are considering lending money to a
company you need information in order to assess the likelihood
that the company will be able to pay you interest and to repay
your loan when those amounts fall due.
Presentation: financial performance

profit or loss and OCI
42
81A to 105 of IAS 1 specify the statement of profit or loss

and other comprehensive income (OCI).
Items of OCI that are reclassified subsequently to profit or loss
(sometimes called recycling) are presented separately from
those that are not.
not recycled include: income/expenses presented in OCI
from revaluing PPE and some intangible assets and
financial assets FVOCI.
recycled include: income/expenses presented in OCI from
hedge accounting.
What do you think?

other comprehensive income (OCI)
43
Question 1is there a concept for OCI in the Conceptual

Framework?
Select one of:
1)Yes;
2)No; or
3)I dont know.
What do you think?

other comprehensive income (OCI)
Question 2is there a concept for recycling in the

Conceptual Framework?
Select one of:
1)Yes;
2)No; or
3)I dont know.
44
IASB projectpresentation proposals

profit or loss
45
Profit or loss is the primary source of information about an

entitys performance for the period (7.21 and 7.23) that
depicts the return that the entity has made on its economic
resources (7.20(a)).
Present income and expenses in OCI only when that
presentation enhances the relevance of profit or loss.
Presumption 1: all items of income and expense will be
included in profit or loss
cannot rebut the presumption for performance of assets and
liabilities measured at historical cost
can rebut for most items measured at current values if including
such items in OCI would enhance the relevance of profit and loss.

Question 1is the IASB proposing robust concepts for the
distinction between profit and loss and OCI?
Select one of:
1) Yes;
2) No; or
3) I dont know.
46

47
Question 2Can you think of concepts for the presentation of

financial performance that might provide relevant information for
primary users to use as a basis for making their resource
allocation decisions?
Select one of:
1) Yes;
2) No; or
3) I think so (lets discuss).
IASB projectproposals
recycling OCI
48
All items of OCI will be recycled in profit or loss.

However, can rebut for example, if no clear basis
identifying when reclassification would enhance the
relevance of profit or loss.
may indicate item should not be included in OCI in
the first place.

recycling OCI
49
Question 3do you support the IASBs proposals regarding the

recycling of OCI to profit or loss?
Select one of:
1) Yes;
2) No; or
3) I dont know.
Framework-based approach

Framework-based approach
51
What is the economics of the phenomenon (eg transaction, event)?

What information about that economic phenomenon would primary
usersexisting and potential investors, lenders and other creditors that
cannot demand information from the entityfind useful in making
decisions about providing resources to the entity?
Then identify the relevant IFRS requirement/s and evaluate the
requirement/s against the objective
is the requirement a principle rooted in the Conceptual Framework?
if not, understand why the rule does not maximise concepts (eg
application of the cost constraint, reason often in Basis for Conclusions)
Focus on making/auditing/regulating/analysing IFRS judgements

and estimates
Debunking common conceptual

misunderstandings

Common conceptual
misunderstandings
Myth
53
Clarificationthe Conceptual
Framework includes
Conceptual Framework Conceptual Framework never

overrides an IFRS (see purpose and
= IFRS constitution
status of Conceptual Framework).
In absence of an IFRS, the
Conceptual Framework is in hierarchy
for developing an accounting policy
(see IAS 8.11(b))
Common conceptual
misunderstandings continued
Myth
54
Framework includes
Objective of IFRS
Objective = provide financial
financial information = information about the reporting entity
inform entitys tax return that is useful to primary users
existing and potential investors,
lenders and other creditors who
cannot demand information directly to
themin making decisions about
providing resources to the entity (eg
buy, sell, hold) (OB 2 and OB5)
Common conceptual
Myth
55
Framework includes
Measured with reliability Reliability = complete, neutral and

= precise
free from error (see 4.38)
Common conceptual
Myth
Matching expenses to
income = underlying
concept/qualitative
characteristic in the
56
Framework includes
Expenses are only decreases in

assets/increase in liabilities in current
period that result in decreased equity
except(4.25(b))
Qualitative characteristics are only
relevance and faithful representation
(fundamental) and comparability,
verifiability, timely and
understandability (enhancing) (QC4)
Common conceptual
Myth
Materiality is based on
size alone.
57
Framework includes
Information is material if omitting it or

misstating it could influence decisions
that users make on the basis of financial
information about a specific reporting
entity. In other words, materiality is an
entity-specific aspect of relevance based
on the nature or magnitude, or both, of
the items to which the information relates
in the context of an individual entitys
financial report. (QC11)
Common conceptual
Myth
An entity must account

for immaterial items
58
Clarification
Financial statements do not comply with

IFRS if they contain either material
errors or immaterial errors made
intentionally to achieve a particular
presentation of an entitys financial
position, financial performance or cash
flows (IAS 841)
Common conceptual
Myth
59
Clarification
An entity must disclose

immaterial items
An entity need not provide a specific

disclosure required by an IFRS if the
information is not material
(IAS 131)
Common conceptual
Myth
Comparability =
uniformity
60
Clarification
For information to be comparable, like

things must look alike and different things
must look different. (QC23)
Making unlike things look alike does not
provide information that is most useful to
primary usersexisting and potential
investors lenders and other creditors that
cannot demand information from the entity.
Common conceptual
Framework includes
Myth
There are two

measurement
bases in IFRS
historical cost and
fair value
61
The Conceptual Framework describes a

number of observed measurement
conventions including historical cost.
(4.544.56)
Standards provide further conventionsfor
example net realisable value, value in use,
the equity method, adjustments for hedge
accounting and first time adoption.
IFRS 13 provides a measurement
conceptfair value.
Thank you
62
Conferencia IFRS
Cartagena, Colombia

regulatorios:
NIIF para PYMES
AMARO GOMES
Miembro
IASB
LUIS A. CHAVEZ
Experto y Formador en NIIF
Servicio de Rentas Internas del Ecuador (SRI)
IFRS for SMEs

November 2015
Joint IFRS Foundation and INCP

IFRS Conference

Future reviews of the

Standard

Future reviews of the Standard

Comprehensive review: revisit
Proposal
To start two years after effective date of amendments from
the last comprehensive review
Includes Request for Information and Exposure Draft
Probable effect in current cycle

Review would start January 2019
Includes consideration of:
Consequences of 2017 changes
New application issues
New IFRSs
Effective 2022/2023

Interim review: maintenance
Proposal
Optional interim review to consider new and revised IFRS
not yet incorporated
Consider any urgent changes
Includes Exposure Draft (but not Request for Information)
Effect in current cycle

Optional, but if exercised, would start in late 2015
Application of Financial Instruments, Revenue, Leases,
Control and Rate Regulated (IFRS 9 through 16)
Revised Conceptual Framework?
Effective 2019/2020

Stable platform, but responsive
We think:
A mandatory review every 5 to 6 years,
Together with
An optional interim review to consider any big IFRS changes
or urgent issues inbetween
With
Updates expected to be no more frequently than approx.
once every three years
Means
Stable platform that is still responsive to a changing
environment

What do you think?
Are the planned comprehensive reviews too far

apart?
5 to 6 years is a long time
IFRS changes frequently, IFRS for SMEs needs to keep up
But does IFRS for SMEs really need to be closely aligned
with IFRS?
Do we need an interim review?

Several new and revised IFRS to consider
Some really important changes to full IFRS
Hey, wait, weve just gone through this and now you want to
start again..
SMEIG Q&As and other

supporting activities

SME Implementation Group (SMEIG)

Responsibilities
Objective
Support international adoption of the IFRS for SMEs
and monitor its implementation
Main responsibilities
Develop non-mandatory guidance on the IFRS for
SMEs in the form of Q&As
Make recommendations to the IASB on the need to
amend the IFRS for SMEs
SME Implementation Group (SMEIG)

Membership
Set up in 2010
On 30 June 2014 second term of existing 22 SMEIG
members ended
Expansion to a maximum of 30 members
10 existing members reappointed for continuity
16 new members
4 vacancies, in case suitable candidates identified at a

later date
On 30 June 2016, 10 existing members will retire
Nominations/applications for new members in early
2016
Q&As
Pre 2015
10
Existing Q&As deleted on issue of 2015 Amendments to

the IFRS for SMEs
some content included in 2015 Amendments, making it
mandatory
where relevant, remaining content was incorporated in
IFRS Foundation educational material (remains nonmandatory)
Q&As
2015 onwards
11
SMEIG Q&A programme to continue as a two tier system

Tier 1: issues requiring authoritative guidance and full IASB due
process, expected to be rare
Tier 2: issues dealt with by non-mandatory education material
subject to due process for educational material
Procedure being considered to allow constituents to

submit issues via IASB website
issues meeting criteria in paragraph 15 of SMEIG terms of
reference dealt with by SMEIG or during periodic reviews of
Standard
other issues considered when updating IFRS Foundation
education material
Other ongoing support activities
12
Ongoing during 2016

translations of the 2015 Amendments and 2015 IFRS for SMEs
(Bound Volume)
Spanish translation of 2015 Amendments is now available
updating our IFRS for SMEs training material for the 2015
Amendments
SME presentations/workshops
information on these ongoing activities, Q&As and SME related
activity available in the monthly IFRS for SMEs Update newsletter
Web links in the appendix

Thank you
13
Useful links and downloads (1 of 2)
14
IFRS for SMEs (full standard, translations)

http://go.ifrs.org/IFRSforSMEs
Training materials (one module per section)
http://go.ifrs.org/smetraining
PowerPoint training modules (20 PPTs)
http://go.ifrs.org/trainingppts
IASB and staff presentations
http://go.ifrs.org/presentations
IFRS for SMEs Update newsletter
http://go.ifrs.org/smeupdate
Useful links and downloads (2 of 2)
15
Use around the world

http://go.ifrs.org/Analysis-of-SME-profiles
Recently completed comprehensive review
http://go.ifrs.org/Comprehensive-Review-SMEs
SME Implementation Group
http://go.ifrs.org/SMEIG
Conferencia IFRS
de las Amricas
Tema:
Principales cambios a la
NIIF para las PYMES
Luis A. Chvez
Noviembre 24, 2015
El futuro tiene muchos nombres. Para

los dbiles es lo inalcanzable. Para los
temerosos, lo desconocido. Para los
valientes es la oportunidad.
Vctor Hugo (1802 1885), poeta y novelista francs.
Modificaciones a la NIIF para las PYMES
Fecha de Emisin: Mayo 2015
Fecha de Aplicacin Obligatoria: 1 de enero del 2017
Principales cambios a la NIIF para las PYMES:
Medicin
de
Propiedades,
Planta y Equipo (Seccin 17):
- Incorporacin del modelo de
revaluacin
Impuesto a las Ganancias

(Seccin 29):
- Alineacin con la NIC 12.
Actividades Extractivas (Seccin

34):
- Incorporacin de mayores guas
alineadas con la NIIF 6
OTRAS MODIFICACIONES
Aplicacin del costo o esfuerzo desproporcionado
Se aadi el siguiente prrafo en la Seccin 2:
La aplicacin de un requerimiento dara lugar a un costo
o esfuerzo desproporcionado ya sea porque el costo es
excesivo (por ejemplo, los honorarios de un tasador son
excesivos) o los esfuerzos de los empleados son
excesivos en comparacin con los beneficios que
recibiran los usuarios de los estados financieros por
contar con la informacin.
Se debe revelar cada exencin de costo y esfuerzo

desproporcionado utilizada y el porqu.
Vida til de la plusvala y otros activos intangibles (Seccin 18).
Uso de la exencin de costo o esfuerzo desproporcionado en

combinaciones de negocios (Seccin 19).
Agrupacin de partidas en el Otro Resultado Integral ORI (Seccin

5).
Aclaracin de que las diferencias de cambio acumuladas de la conversin de
una subsidiaria en el extranjero no se reconocen en el Estado de Resultados
(ER) en la disposicin de la subsidiaria (Seccin 9).
Eliminacin del requerimiento de revelacin de poltica contable para

los beneficios por terminacin (Seccin 28).
Aclaracin de que todas las subsidarias adquiridas y mantenidas para la venta

exentas de consolidacin (Seccin 9) . Se aadi mayor orientacin en
caso de que la controladora cambie su intencin de venderla.
El ED propone guas adicionales para la contabilizacin de la cancelacin

del dividendo por pagar por una distribucin de activos distintos al
efectivo (Seccin 22). Se aadi una excencin por costo o esfuerzo
desproporcionado.
El ED propone una aclaracin de que la mejor evidencia del
valor razonable puede ser un precio en un acuerdo de venta
vinculante (Seccin 11). Se modific en las enmiendas finales.
Aclaracin de la clasificacin de las piezas de recambio,
equipo de mantenimiento permanente y equipo auxiliar
(Seccin 17).
Incorporacin del mtodo de la participacin en los estados
financieros separados (Seccin 9).
Se permite utilizar la Seccin 35 Transicin a la NIIF para las

PYMES ms de una vez (Seccin 35).
DISPOSICIONES DE TRANSICIN Y FECHA DE VIGENCIA
Aplicacin retrospectiva de los requerimientos (a menos que sea

impracticable hacerlo).
Eleccin de aplicacin prospectiva de la Seccin 29 (revisada).
Propuesta de fecha de vigencia despus de un ao de la publicacin de

las modificiones finales.
Fecha de modificaciones finales: primera mitad del 2015
Fecha de vigencia de nueva NIIF para las PYMES: 1 de enero del 2017
Empieza por hacer lo necesario, luego lo

que es posible, y de pronto te encontrars
haciendo lo imposible.
San Francisco de Ass (1182 1226), dicono italiano.
Copyright por Luis A. Chvez. Todos los Derechos Reservados.
Conferencia IFRS
Cartagena, Colombia
Taller pre-Conferencia Fundacin IFRS: Sesiones de inters

especial :
Taller-Valor razonable y otros temas de medicin
AMARO GOMES
Miembro
IASB
MIKE WELLS
IASB
RICARDO VSQUEZ BERNAL

Socio
Baker Tilly Colombia
CARLOS AMADOR
Gerente Senior Aseguramiento Financiero
Deloitte
Overview of IFRS asset

measurements
Michael Wells, Director of Education, IASB

IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK | www.ifrs.org
The requirements are set out in International Financial Reporting

Standards (IFRS), as issued by the IASB at 1 January 2015,
including those with an effective date after 1 January 2015, but
not the IFRSs they will replace.
Disclaimer: The IFRS Foundation, the authors, the presenters
and the workshop organisers do not accept responsibility for any
loss caused by acting or refraining from acting in reliance on the
material in this PowerPoint presentation, whether such loss is
caused by negligence or otherwise and this presentation is not a
form of advice or opinion.
A selection of IFRS asset measurements

(slide 1 of 2 slides)
ASSET TYPE
IAS 16 Property, Plant

and Equipment
IAS 38 Intangibles Assets
MEASUREMENT AT INITIAL
RECOGNITION
Purchase costs + construction
costs + costs to bring to the
location and condition necessary to
be capable of operating in the
manner intended by management.
Purchase costs + development
costs + costs to bring to the
location and condition necessary to
be capable of operating as intended
by management
IFRS 6 Exploration for

and Evaluation of Mineral
Resources
Cost (if accounting policy is not to

expense on initial recognition)
IAS 40 Investment
Property
Cost including transaction costs
IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
THEREAFTER
Accounting policy choice:

cost or revaluation less
accumulated
depreciation/amortisation
(unless indefinite life) and
impairment, if any
BASIS OF
IMPAIRMENT
TEST
IAS 36 Impairment
of Assets (and
IFRS 6) compare
carrying amount to
recoverable
amount (RA).
RA is greater of:
- value in use;
and
- fair value less
disposal costs.
Accounting policy choice: cost

less accumulated depreciation
(unless land) and impairment (if
any) or fair value
(not applicable to
IAS 40s fair value
model)
A selection of IFRS asset measurements

(slide 2 of 2 slides)
ASSET TYPE
MEASUREMENT AT
INITIAL RECOGNITION
THEREAFTER
BASIS OF
IMPAIRMENT
TEST
IFRS 5 Non-current
Assets Held for Sale
and Discontinued
Operations
Accounting determined in
accordance with other
IFRS (eg IAS 16 and IAS
38)
Lower of carrying amount under

other IFRS and fair value less
costs to sell (no further
depreciation)
Fair value less

costs to sell
IFRS 9 Financial
Instruments
Fair value
For particular cash flow

characteristics and business
model amortised cost for other
business models or cash flow
characteristics fair value model
IFRS 9 specifies
impairment rules
(expected loss
model)
IAS 2 Inventory
Cost of purchase and/or

conversion costs and
costs to get the item to the
location and condition for
sale. Exceptions apply
Lower of cost (initial recognition)

and net realisable value.
Exceptions apply
Net realisable
value
IAS 12 Income Taxes
Recognise to the extent it is probable that it will be utilised Measure using

substantitvely enacted tax rates
IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
Historical cost:
what is it?

Historical cost
what is it?
Do you know how to measure the historical cost of an asset?

Choose 1 of:
(a) Yes
(b) No
Historical cost?
the concept 4.55(a)
The historical cost of an asset is:

the amount of cash or cash equivalents paid; or
the fair value of the consideration given to acquire it at the time
of its acquisition. (paragraph 4.55(a) of the Conceptual
Framework)
IFRS Standards codify particular historical cost conventions BUT
many questions of interpretation continue to arise.
Whats the root cause of this problem?
Historical cost?
example 1
Two years ago you paid CU100 cash in exchange for a

promise to receive (and gain control of) a new machine
two years later. Market interest rate = 10%
Today (two years later) when you receive the machine, its
fair value = CU150.
What is the historical cost of the machine?choose 1 of:
1) CU100
2) CU121
3) CU150
Historical cost?
example 2
Today you receive (and gain control of) a new aircraft in

exchange for:
- cash CU100; and
- transferable ticket required to get into the queue to
purchase the aircraft. You purchased the ticket a year
ago for CU10 cash; today its fair value = CU25.
What is the historical cost of the aircraft?choose 1 of:
(1) CU100; (2) CU110; or (5) CU125.
Historical cost? example 3 (see Draft IFRIC

Interpretationcomments by 19/01/2016)
10
Today you receive (and gain control of) a new machine. You paid
FCU100 to the supplier of the machine:
Scenario 1: today when spot rate is FCU100 = CU100
What is the cost of the machine?choose 1 of: (1)90 (2)100
Scenario 2: 1 month earlier when FCU100 = CU90 and
prepayment is a monetary asset (non-performance = FCU refund)
Scenario 3: 1 month earlier when FCU100 = CU90 and
prepayment is a non-monetary asset
Historical cost?
example 4
11
100 years ago your great-grandfather acquired a flock of

1,000 sheep in exchange for CU1,000.
Today your familys first 100th generation lamb is born.
What is the cost of the 100th generation lamb?
Historical cost
a misnomer?
Do you know what the historical cost of an asset is (ie the
concept of historical cost)?
Choose 1 of:
(a) yes
(b) no
12
Fair value

What is fair value?
14
Fair value is the price that would be received to sell an

asset or paid to transfer a liability (exit price) in an orderly
transaction (not a forced sale) between market
participants (market-based view) at the measurement
date (current price). (see IFRS 13)
Fair value is a market-based measurement (it is not an
entity-specific measurement)
Fair value assumes a non-financial asset is used by
market participants at its highest and best use
Non-financial assets
example 1
15
For generations your family farms apples in rural

farmland that your great-grandfather purchased for 1.
Today:
- the fair value of the land with fruit-bearing trees = 50
- if vacant, the fair value of the farmland would be 20
What is the fair value of the fruit-bearing trees?
Choose 1 of: (1)50 (2)30 (3)20 (4)0 (5)another
amount
example 2: scenario 1
16
For generations your family farms palm oil in rural

Colombia on farmland that your great-grandfather
purchased for 1. Today:
- the fair value of the land with fruit-bearing trees = 100
- if vacant, the fair value of the farmland would also be 100
Scenario 1: you revalue farmland (ie revaluation model)
Choose 1 of: (1)100 (2)30 (3)23 (4)0 (5)another amount
example 2: scenario 2
17
For generations your family farms palm oil in what is now

the financial district of Bogota on farmland that your greatgrandfather purchased for 1. Today:
- fair value of the farmland with fruit-bearing trees = 100
- if vacant, fair value of the farmland would also = 100
Scenario 2: you do not revalue farmland (ie cost model)
Choose 1 of: (1)100 (2)30 (3)23 (4)0 (5)another amount
Now what about the judgements
necessary to measure such fair value?
18
example 3: a regulatory ruling
19
Anglo-Eastern Plantations Plc (the company) for the year

ended 31 December 2010
The Conduct Committees Financial Reporting Review Panel (FRRP) considered
the company's use of historical rather than current data to estimate the
fair value of palm oil trees, recognised in the balance sheet as biological
assets. In its 2010 accounts the company valued its plantation estates using a
discounted cash flow technique by estimating future sales proceeds of palm
oil, deducting from this the estimated cash costs of production and discounting
these estimated net cash flows. The company used historical percentages to
allocate the plantation estate values between land, palm oil trees and
equipment. However, an allocation on this basis does not achieve fair value
for the biological asset, as required by IAS 41 Agriculture. (emphasis added)
example 3: a regulatory ruling continued
20
In its 2012 accounts, whilst the FRRPs enquiries were on-going, the company
changed its valuation method to value land and biological assets separately and
recorded its first prior year restatement. Land was valued by reference to
market prices. The fair value of palm oil trees was valued using a similar
discounted cash flow technique to the plantation estate method. However, the
estimated cash costs of production used historical, rather than current data,
to estimate the cost of using the land on which the palm oil trees are planted. As
a consequence, the fair value of biological assets was over-stated.
Following further discussion with the FRRP, the company has used current market
data to estimate the cost for the use of land in its discounted cash flow. This has
given rise to a second prior period restatement, announced by the company
today, that reduced the value of its biological assets at December 2012 by $37
million from $245 million to $208 million. Profit after tax for the year ended 31
December 2012 was reduced by $1.6 million. There was no impact on cash.
(emphasis added)
Example 4legally permissible
21
You own a plot of land in Greater London that is currently

zoned green beltcurrently planning permission would not
be granted to put the land to a use other than agriculture (its
current use). The price at which the land could be sold at
31/12/20x1 is:
Scenario (S)1 if the land was now zoned for the construction of
high-rise buildings: price = CU100,000,000;
S2 if market participants believed there was no prospect of the
zoning laws changing: price = CU1,000,000
Example 4legally permissible continued
22
Recent sales of similar neighbouring plots subject to the same zoning

restrictions increased from CU2,000,000 two months ago to
CU3,000,000 on 31/12/20x1 when to the Government unexpectedly
announced it is considering relaxing the restrictions on green belt land.
In the absence of other relevant factors at 31/12/20x1 what is the fair
value of your plot?
(1) CU100,000,000 (if already rezoned for high-rise development)
(2) CU3,000,000 (price for similar asset on measurement date)
(3) CU2,500,000 (recent average sale price for similar assets)
(4) CU2,000,000 (lowest recent price for similar asset)
(5) CU1,000,000 (zoned agricultural use only)
Comparing measurements for

non-financial assets

Which model better enables primary

users to project future cash flows?
24
Example:
Day 1: you pay CU1,000,000 to construct a car
manufacturing plant in Country A (A).
Day 2: the market value of your plant quadruples when vast
quantities of oil are unexpectedly discovered in A
Day 3: your competitor builds a plant in A: cost =
CU4,000,000.
Which model better enables primary

users to project future cash flows?
25
Example continued:
The cost of each car that you build is:
- CU100 if you use the cost model; or
- CU300 if you use the revaluation model.
The cost of your competitors cars = CU300 each.
Cars sell at CU250 each in A.

For each car sold economically are you making
(1) CU150 profit (2) CU50 loss
Root causes of financial

reporting anomalies

Purchase own equity instruments

the facts
27
At 31 December 20x0 Companys statement of financial

position reflects equity of CU80 million.
On 1 January 20x1 Company exchanges in an active market
CU100 million cash for 25% of its issued shares.
In other words, Company pays CU100 million cash to
extinguish the former shareholders CU100 million (fair value)
claim against the groups assets.
Purchase own equity instruments

economics versus IFRS accounting
economics:
before buy-back: net assets CU400 million = equity CU400 million
buy-back: assets CU100 million and equity CU100 million
after buy-back: net assets CU300 million = equity CU300 million
IFRS accounting (IAS 32):

before buy-back: net assets CU80 million = equity CU80 million
buy-back: assets CU100 million and equity CU100 million
after buy-back: net assets CU-20 million = equity CU-20 million
What is the root cause of the anomaly?
28
Purchase Non-controlling interest (NCI)

extract 1 [emphasis added]
29
Warren Buffetts letter to Berkshire Hathaway Inc. shareholders 2013 (see

http://www.berkshirehathaway.com/letters/2013ltr.pdf)
Last year we invested $3.5 billion in the surest sort of bolt-on: the purchase of additional shares
in two wonderful businesses that we already controlled. In one case Marmon our purchases
brought us to the 100% ownership we had signed up for in 2008. In the other instance Iscar
the Wertheimer family elected to exercise a put option it held, selling us the 20% of the business
it retained when we bought control in 2006. These purchases added about $300 million pre-tax
to our current earning power and also delivered us $800 million of cash. Meanwhile, the same
nonsensical accounting rule that I described in last years letter required that
we enter these purchases on our books at $1.8 billion less than we paid, a process that reduced
Berkshires book value. (The charge was made to capital in excess of par value; figure that one
out.) This weird accounting, you should understand, instantly increased Berkshires
excess of intrinsic value over book value by the same $1.8 billion.
Purchase NCI
extract 2 [emphasis added]
30
UBS Research Footnotes Compendium issued by Dennis Jullens, former

UBS Accounting and Valuation Analyst (8 December 2010)
In 2009, Swiss company Roche increased its stake in US group Genentech from 56% to 100%
by buying out the minority interest. As Roche already fully consolidated Genentech, the
transaction from the accounting perspective was viewed as a transaction between shareholders
that does not give rise to goodwill.
In the case of the Roche/Genentech transaction, the difference between purchase price and net
asset value of minority interest of CHF 43.8bn was charged to Roches shareholders equity.
This accounting adjustment caused return on equity to increase from 17% in 2008 to 119% in
2009... (p68) However,
the principal reason for Roches return on

equity is accounting rather than underlying economics. (p71)
The rationale here is that the wealth generating ability of business assets is unaffected by the
acquisition of the minority interest. That is to say, the parent is not investing in more or new
assets. It is simply acquiring more rights to income from the assets it already controls, but to
which non controlling interests previously had rights... (p68)
Purchase NCI
facts
31
At 31 December 20x0 Groups consolidated statement of

financial position reflects NCI of CU20 million.
On 1 January 20x1 Parent increased its equity interest in
Subsidiary from 75 per cent to 100 per cent in exchange for
CU100 million cash.
Purchase NCI
economics versus IFRS accounting
32
Economics: (Ps only assets are its investment in S and CU100 million cash)
before buying NCI: groups net assets CU500 million = equity CU500 million
(CU400 million P shareholders interest + CU100 million NCI)
buy NCI: net assets CU100 million and equity NCI CU100 million
after buying NCI: net assets CU400 million = equity CU400 million (ie CU400
million P shareholders interest ; NCI = nil)
IFRS accounting (IFRS 10):

before buy NCI: groups net assets CU180 million = equity CU180 million
(CU20 million NCI + CU160 million P shareholders interest)
buy NCI: assets CU100 million and equity CU100 million (NCI CU20
million + P shareholders interest CU80 million)
after buying NCI: net assets CU80 million = equity CU80 million
What is the root cause of the anomaly?

Summaryroot causes of these

financial reporting anomalies
33
What others say when we run workshops with them.

Accounting for:(i) treasury shares; (ii) purchase NCIs shares; (iii)
change in own credit risk; and (iv) emissions trading schemes.
Root cause 1: not recognising some items that satisfy the
definition of an asset. For example, in-process research,
internally generated brands, etc
Root cause 2: incomplete measurementmeasuring some
items at values that are different from their current economic
value
Thank you
34
Mediciones Basadas
en el Costo Histrico
Ricardo Vsquez Bernal
Socio de Consultora de Negocios
BAKER TILLY
Agenda
1.Concepto de Mantenimiento de Capital
2.Sentido y criterio de las bases de medicin.
3.Cambios en el Marco Conceptual de IASB
4.Mediciones Basadas en el Costo Histrico
5.Factores e Implicaciones del Costo Histrico
Agenda
1. El Mantenimiento de Capital
Las empresas tienen vocacin de continuidad y el
negocio en marcha es una hiptesis fundamental del
marco conceptual.
La preservacin del capital es una base crtica de las
organizaciones.
Las bases de medicin son fundamentales para
establecer qu representa rendimiento y qu
representa sostenibilidad de la capacidad productiva:
resultados y patrimonio.
1. El Mantenimiento de Capital
Capital
Capital
Financiero
Fsico
Valor
Nominal
Valor
Operativo
Valor
Constante
Valor
Corriente
Agenda
2. Sentido y Criterio de las bases de medicin

La informacin debe permitir tomar decisiones sobre el
aporte o financiacin de recursos a la Entidad.
La utilidad se basa en condiciones de relevancia y
representacin fiel.
El valor de los recursos, de acuerdo con las
definiciones de los elementos, se basa en su capacidad
futura de generacin o efecto, que introduce el factor
de incertidumbre.
2. Sentido y Criterio de las bases de medicin

El incremento de la riqueza empresarial o
patrimonio es una variacin econmica de los
ingresos y gastos.
La variacin econmica de los ingreso y gastos
pueden ser:
Parte del componente del mantenimiento de capital o
Parte del recurso excedente de disposicin.
El objetivo de la informacin, las caractersticas
cualitativas de utilidad y restriccin del costo
puede dar lugar a la seleccin de bases de
medicin diferentes.
Agenda
3. Cambios en el marco Conceptual de IASB.

La medicin implica cuantificar, en trminos
monetarios, la situacin financiera informacin sobre
los activos, pasivos, patrimonio, ingresos y gastos de
una entidad.
Una medicin es el resultado de valuar un activo, un
pasivo, patrimonio o una partida de ingreso o gasto
sobre una base de valuacin especfica.
3. Cambios en el marco conceptual de IASB
Marco Actual
Propuesta de
Modificacin
Costo Histrico
Costo Histrico
Costo Corriente
Valor Realizable
Valor Corriente
Valor Presente
Valor Razonable
Valor de Uso
Valor de Cumplimiento
Agenda
4. Mediciones basadas en el Costo Histrico.

Activos No Financieros
Activos Financieros
Costos de Adquisicin y Construccin
Costo Amortizado
Costo Amortizado
Valor de la Adquisicin y Construccin.
Valor de Contraprestacin dada
Mas Costos de Contraprestacin
Mas Costos de Transaccin
Mas Costos de Transaccin
Incorpora las estimaciones y cambios de

valor endgenos.
Ajustes
de Medicin
Estimaciones
de Valor
No Incorpora los efectos de factores

exgenos
Consumo del Recurso

(Depreciacin y Amortizacin)
Deterioro de Valor
4. Mediciones basadas en el Costo Histrico.
Pasivos No Financieros
Pasivos Financieros
Valor de Contraprestacin Recibida
Costo Amortizado
Costo Amortizado
Valor de la Contraprestacin
Valor de Contraprestacin recibida
Menos los Costos de Transaccin
Menos los Costos de Transaccin
Estimaciones de Valor
Incorpora las estimaciones y cambios de

valor endgenos.
Ajustes de Medicin
Causacin de Intereses
Costos de Cumplimiento del Pasivo
Excesos de salida de efectivo Contratos
Onerosos
No incorpora los cambios de factores

exgenos.
Agenda
5. Factores e Implicaciones del Costo Histrico.

Los activos y pasivos incurridos en transacciones
que no involucran intercambios pueden no tener
costos inicial y se requiere un Costo atribuido.
El costo histrico es un valor de entrada como
los costos corrientes y no de salida como son
los valores corrientes.
Los ingresos y gastos medidos a costo histrico
pueden tener valor predictivo o confirmatorio de
hechos y estimaciones.
Puede ser mas simple y menos costoso desarrollar
una base de medicin al costo.
5. Factores e Implicaciones del Costo Histrico.

Las medidas del costo pueden ser mas
comprensible y verificables, lo cual no significa
que sean ms objetivas.
La base del costo histrico puede afectar la
comparabilidad de activos o pasivos similares.
El costo corriente puede aplicarse como sustituto
del costo histrico, ajustado a los trminos que
definan las normas, cuando:
La condicin de inflacin es alta
Se aplica un modelo de mantenimiento de capital basado en la
productividad de los activos.
Muchas Gracias
Ricardo Vsquez Bernal
[email protected]
Valor razonable:
Instrumentos
Financieros
Carlos Alberto Amador Lpez
Senior Manager, Financial Advisory Services
Cartagena, 23 de noviembre de 2015
2008 Deloitte Touche Tohmatsu
IASB sobre Instrumentos Financieros

El IASB emiti la versin final de la IFRS 9 Instrumentos Financieros
el 24 de julio de 2014.
Clasificacin y Medicin
Deterioro
Contabilidad de Cobertura General
Contabilidad de Macro Cobertura

2015 Deloitte
Proyecto aparte
Desarrollo de la IFRS 9 Instrumentos Financieros

IFRS 9 Instrumentos Financieros
Previo al 2013
Clasificacin y
Medicin
Fase
finalizada
2013
Borrador de
Modificaciones
Contabilidad de
Cobertura
general
2018
Modificaciones
limitadas
limitadas
Nuevo modelo
de deterioro
Proyecto de
norma
Deterioro
2014
Entra en
vigencia el
1/1/2018
Fase
finalizada
Papel de
discusin
Macro Cobertura
2015 Deloitte
Qu impacto tendr la IFRS 9?

Aplica a todas
las compaas
con ingresos
fijos, no slo a
Instituciones
financieras
Mayor juicio
involucrado
IFRS 9
Se requieren
ms datos y
revelaciones
Es una gua
detallada
que podra
ser difcil de
comprender
y aplicar
2015 Deloitte
Por qu se hicieron cambios a la IFRS 9?

Clasificacin y Medicin
IAS 39
IFRS 9
Contiene muchas categoras

de clasificacin y medicin,
as como requerimientos de
deterioro, lo cual reduce la
comparabilidad
Reduce la complejidad de las

categoras de clasificacin y
los requerimientos de
medicin
Hace que el modelo de
clasificacin y medicin sea
compatible con un mismo
modelo de deterioro
Surgen problemas de
aplicacin en la clasificacin y
medicin de los activos
financieros
Mejora la comparabilidad y
hace que la presentacin sea
ms fcil de entender para los
lectores
Dificultad para comprenderla

y aplicarla en la prctica
2015 Deloitte
Enfoque de clasificacin conforme a la IFRS 9

Punto de partida y atributo de valoracin predeterminado:
Valor razonable para
todos los instrumentos
financieros
Pero: los mtodos basados en el costo pueden ofrecer

informacin til para ciertos tipos de activos financieros en
circunstancias particulares.
Costo
Amortizado
Modelo de Negocios para administrar
Activos Financieros
Caractersticas contractuales de
flujos de efectivo
5
2015 Deloitte
Cules son las diferencias?

Basada en principios
Aplicacin compleja y
difcil
Prdidas y ganancias de
crdito propias
reconocidas en Prdidas
y Ganancias (P&L) para
pasivos con opcin a
valor razonable (FVO)
IFRS 9 Clasificacin
IAS 39 Clasificacin
Basada en reglas
Reglas de reclasificacin
complicadas
Clasificacin con base en

el modelo de negocio y
naturaleza de los flujos
de efectivo
Prdidas y ganancias de
crdito propias
reconocidas en OCI para
pasivos con opcin a
valor razonable (FVO)
Clasificacin basada en
el modelo de negocio
2015 Deloitte
Modelo de negocios para costo amortizado
Objetivo
cobro o pago
de flujos de
efectivo
Determinado por
funcionarios
clave de la
administracin
Ventas
En general no es
necesario conservarlos
hasta su vencimiento
Modelo de
negocios
Ejemplos de ventas
permitidas:
El instrumento ya no
cumple la estrategia
de inversin
La venta se hace con
fines de liquidez
No se aplica
sobre la base de
instrumento por
instrumento
Se requieren
revelaciones
adicionales.
7
2015 Deloitte
Valor Razonable a travs de OCI (FVTOCI)

En julio de 2014, se introdujo una nueva categora de medicin: el Valor Razonable
a travs de OCI (FVTOCI).
Instrumentos
de deuda
medidos a
FVTOCI
(Valor
razonable a
travs de ORI)
Los ingresos de
inters,
ganancias y
prdidas (G&L)
cambiarias y de
deterioro se
reconocen en
P&L
(Utilidades y
Prdidas)
Inicial y
posteriormente
medido a Valor
Razonable
+/- costos de
transaccin
directamente
atribuibles
Todas las dems

ganancias y prdidas
(G&L) se reconocen en
OCI
2015 Deloitte
Clasificacin y Medicin Resumen general

Activos financieros
Los flujos de efectivo
se consideran slo
pagos de principal e
intereses?
Cul es el modelo de
negocio?
2015 Deloitte
Hay opciones
alternativas disponibles?
Mantenido para cobrar

los flujos de efectivo
contractuales
Costo amortizado
Opcin de FVTPL
(en caso de
incompatibilidad
contable)
Mantenido para cobrar

los flujos de efectivo
contractuales Y
Nuevovenderlo
FVTOCI (Valor
razonable a travs de
ORI)
Opcin de FVTPL
(en caso de
incompatibilidad
contable)
Todas las dems

estrategias
(negociacin)
FVTPL (Valor
utilidad o prdida)
FVTPL (Valor
utilidad o prdida)
No
Se permiten ciertas
modificaciones en la
relacin entre el
principal y el inters
Cul es la categora de
medicin?
Opcin de FVOCI para

inversiones de capital
(dividendos en
Prdidas y Ganancias)
Nuevo
Mtodos de medicin: Resumen

FVTPL (Valor razonable a travs de P&G)
Inicial y posteriormente medido a valor razonable (sin ajustes para
costos de transaccin).
Todas las ganancias y prdidas (G&L) se reconocen en P&L.
Costo amortizado
Inicialmente medido a valor razonable ms / menos los costos de
transaccin directamente atribuibles.
Calcular el ingreso por inters utilizando el mtodo de inters
efectivo, aplicado al monto bruto del activo en libros.
Activos financieros con deterioro de valor crediticio comprados u
originados: aplicar la tasa de inters efectiva ajustada al crdito
para el costo amortizado desde el reconocimiento.
Activos financieros con deterioro de valor crediticio posterior:
aplicar la tasa de inters efectiva al costo amortizado del activo
financiero.
Los instrumentos que cumplan los criterios de costo amortizado
deben medirse a costo amortizado salvo que se elija la opcin de
valor razonable.
2015 Deloitte
10
Medicin de instrumentos de capital
FVTPL
(Valor razonable a
travs de P&G)
No al
costo
Las inversiones de capital por lo general se mantienen a FVTPL ya que no

pasan la prueba de flujo de efectivo contractual.
Los instrumentos derivados vinculados a inversiones de capital no cotizadas
deben mantenerse al FVTPL.
(Valor razonable a
travs de ORI)
La opcin de medir una inversin de capital a FVTOCI es irrevocable debe

hacerse en el reconocimiento inicial.
Reconocer los ingresos por dividendo a travs de P&L
La opcin no est disponible si la inversin se mantiene para negociacin
Estimar el
valor
razonable
(FV)
El costo puede ser una estimacin apropiada de FV para las inversiones no

cotizadas si no se cuenta con suficiente informacin reciente, o si hay un
amplio rango de posibles FV, y el costo representa la mejor estimacin de FV.
En la IFRS 9 B5.2.4., se muestran algunos indicadores de los casos en que
esta opcin no es adecuada
FVTOCI
Incluyendo los cambios en el mercado, el desempeo, la economa mundial,

el ambiente econmico, los competidores y el progreso tcnico
2015 Deloitte
11
Clasificacin y medicin de los pasivos financieros

El modelo de clasificacin y medicin de la IFRS 9 para los pasivos financieros
es el mismo de la IAS 39 a excepcin de lo siguiente:
La presentacin de los cambios en el valor razonable para el propio crdito
Opcin de
valor
razonable
Pasivos
financieros
Medicin a
FVTPL
(Si se cumplen
los criterios
especficos)
Contratos
de
garanta
financiera
No pueden
reciclarse a P&L
pero pueden
aplicarse por
separado
Las dems
prdidas/ganancias
de valor razonable
se presentan en
P&L
Costo
amortizado
Con fines de
negociacin
(incluyendo
derivados)
Las
prdidas/ganancias
de valor razonable
relacionadas con el
riesgo de crdito se
presentan por
separado en ORI
Medicin a
FVTPL
Medicin al mayor de:

Monto de provisin para prdidas;
Monto reconocido inicialmente,
menos el ingreso acumulado
reconocido
2015 Deloitte
12
Cundo se permite la reclasificacin?
Activos
Cuando una entidad
cambia su modelo de
negocio para
gestionar activos
financieros
Pasivos
NUNCA
Ejemplos comunes de cambios que no son reclasificaciones

Un elemento que previamente haya sido un instrumento de cobertura
efectivo y haya sido designado en una cobertura de flujo de efectivo o
de inversin neta pero que ya no califique como tal;
Un elemento que se vuelva un instrumento de cobertura efectivo y sea
designado en una cobertura de flujo de efectivo o de inversin neta; y
Cambios en la medicin-exposicin de crdito determinada como
FVTPL
2015 Deloitte
13
reas problemticas para determinar el valor razonable

de los instrumentos financieros
Nocin de un
mercado activo
versus un
mercado inactivo
Cotizaciones de
corredor:
Son de Nivel 2 o Nivel 3,
conforme a la
jerarqua
de revelacin
del valor razonable?
Son siempre
confiables los datos
de un proveedor o un sistema de
informacin (v.gr. Bloomberg)?
Cundo no?
14
2015 Deloitte
Revelacin del valor razonable conforme a la IFRS 7

Revelaciones de instrumentos financieros conforme a la IFRS 7
Algunas revelaciones se hacen por categora y otras por clase.

Las clases pueden ser ms detalladas que las categoras que menciona la IFRS 9.
Deben ser adecuadas a la naturaleza de la informacin que se revela.
Deben tenerse presentes las caractersticas de los instrumentos financieros.
Por ejemplo, prstamos y cuentas por cobrar con instituciones de crdito y prstamos y
cuentas por cobrar con pblico pueden ser dos clases de la misma categora de
prstamos y cuentas por cobrar.
Como mnimo, debe hacerse la distincin entre instrumentos a valor razonable e
instrumentos a costo amortizado
Conciliar con los rubros que se presentan en el estado de situacin financiera.
2015 Deloitte
15
Revelaciones
Otras consideraciones
Mayores revelaciones requeridos bajo IFRS 13, incluyendo
entre otras (aplicable a mediciones recurrentes de FV):
La medicin a FV al final del periodo de reporte (final o intermedio)
El nivel de acuerdo con la jerarqua de FV
Los cambios entre Nivel 1 y Nivel 2 junto con las razones para dichos
cambios
Descripcin de la tcnicas de valoracin y de los datos usados en las
mediciones de FV (si las mediciones son clasificadas como de Nivel 2 o 3)
Reconciliacin de las mediciones de FV de Nivel 3
Los valores de ganancias o prdidas no realizadas del periodo (si se han
clasificado de Nivel 3) y
La descripcin de los anlisis de sensibilidad de la medicin de FV a los
cambios en los datos de entrada no observables (si se han clasificado de
Nivel 3)
16
2015 Deloitte
Revelaciones
Informacin que se
presentar en el
estado de
resultados
(IAS 1.82)
Pasivos financieros
designados a
FVTPL
(IFRS 7.10-10A)
Inversiones en
instrumentos de
capital a FVTOCI
(IFRS 7.11A y 7.11B)
2015 Deloitte
Cuando se reclasifica un activo financiero de costo amortizado a

FVTPL, cualquier prdida o ganancia derivada de la reevaluacin
se debe reconocer por separado en P&L
Cuando se reclasifica un activo financiero de FVTOCI a FVTPL, se
deben revelar por separado las transferencias de los montos
reconocidos en OCI a P&L.
Transferencias de prdidas o ganancias en capital, incluyendo la

razn de la transferencia y los montos involucrados
Montos presentados en OCI que se identificaron en el
desreconocimiento durante el periodo de presentacin (en caso de
haberlos)
Revelar qu inversiones en instrumento de capital se designaron

como FVTOCI y por qu
Valor razonable de cada inversin a la fecha de presentacin
Dividendos reconocidos durante el periodo de presentacin
Transferencias de ganancias o prdidas acumuladas dentro de
capital y el porqu de las mismas
Revelar la informacin sobre las inversiones desreconocidas de los
instrumentos de capital medidos a FVTOCI, incluyendo las razones
del desreconocimiento, su valor razonable al momento del
desreconocimiento y la prdida/ganancia del desreconocimiento
17
Revelaciones
Deficiencias usuales en las revelaciones que se han

encontrado con la aplicacin prctica de la IFRS 13
Revelaciones insuficientes sobre valor razonable tanto en los estados
financieros anuales como en los intermedios
Clasificacin incorrecta de los niveles de la jerarqua de FV
Segregacin incorrecta o inapropiada de las clases de activos y pasivos
No presentacin de los FV de los activos y pasivos financieros que estn
valorados y reconocidos a costo amortizado
18
2015 Deloitte
Principales retos en medicin y revelaciones
Clasificacin y
medicin
Basadas en el modelo de negocio y en las caractersticas del

flujo de efectivo contractual
o Costo amortizado (cobras flujos de efectivo, pasa la
prueba de SPPI, salvo que se designe a FVTPL)
o FVTOCI (recauda los flujos de efectivo, vende los
instrumentos y pasa la prueba de flujos, salvo que se
determine como FVTPL) o si se determina bajo FVO
o FVTPL si no es costo amortizado o FVTOCI.
Las inversiones en instrumentos de capital siempre a FV
FVTOCI para inversiones de capital no negociables por
eleccin
Instrumentos de
capital
Todas Las inversiones en instrumentos de capital deben

medirse a FV. Ya no se permite la excepcin para valorar al
costo, aquellos instrumentos de patrimonio no cotizados
Uso de proveedores
de precios
Verificacin de si el precio estimado proporcionado por

dichos terceros est desarrollado de acuerdo con NIIF 13
FV derivados:
Inclusin CVA/DVA
Determinacin de los ajustes por CVA/DVA en la medicin de

los derivados financieros contratados
Crdito propio
Cambios en el FV reconocido en OCI para los otros pasivos

financieros designados a FVTPL
2015 Deloitte
19
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (DTTL), its
network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent
entities. DTTL (also referred to as Deloitte Global) does not provide services to clients. Please see www.deloitte.com/about for a
more detailed description of DTTL and its member firms.
.
This communication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member
firms, and their related entities (collectively, the Deloitte Network). None of the Deloitte Network shall be responsible for any loss
whatsoever sustained by any person who relies on this communication
2008 Deloitte Global Services Limited

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Lunes 23 y martes 24 de noviembre 2015

El INCP y la Fundacin IFRS

Conferencia IFRS de las Americas

Conferencia IFRS de las

Lunes 23 y martes 24 de noviembre 2015 - Cartagena, Colombia

Da 1 - Lunes 23 de noviembre 2015

Fundacin IFRS: Sesiones de inters especial

Da 2 - Martes 24 de noviembre de 2015

Temas de transicin NIIF

Taller-Valor razonable y otros temas de medicin

Visin general de las mediciones NIIF

Mediciones histricas basadas en el costo

Sesin de preguntas y respuestas

El futuro de la informacin nanciera

Sesiones paralelas: Implementacin de las nuevas NIIF

1. Implementacin de la NIIF 9 Instrumentos Financieros:

18:0019:00 Recepcin - Cocktail

Sesiones paralelas: Requerimientos NIIF actuales y posteriores

Sesiones paralelas: Proyectos del IASB y miembros de temas regulatorios

1 . Actividades reguladas por tasas y esquemas de intercambio

El INCP y de la Fundacin IFRS

El INCP y de la Fundacin IFRS

El futuro de la informacin financiera

El INCP y de la Fundacin IFRS

JORGE CASTAO GUTIRREZ

El INCP y de la Fundacin IFRS

PEDRO LUIS BOHRQUEZ RAMREZ

El INCP y de la Fundacin IFRS

JUAN ANTONIO DUQUE

El INCP y de la Fundacin IFRS

International Financial Reporting Standards

The views expressed in this presentation are those of the presenter,

Objective to provide a single principle-based Standard that

Objective to avoid additional and temporary volatility

Effective date of IFRS 9

Interaction of IFRS 9 and

Effective date of the new

*IAS 39 Financial Instruments: Recognition and Measurement is pre-IFRS 9

Proposed changes to IFRS 4

How IASB proposes to address concerns

Temporary effects Confirm existing flexibility in IFRS 4

IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

Status: IASB has completed decision-making (except

All leases on-balance sheet 1

Next steps: Publication of final standard expected before end

With the exception of short-term leases and leases of low-value assets

Leases: Comparison to US GAAP

Where we are aligned

Dynamic risk management

Outreach activitiesAdditional input from:

Comment letter analysis

DRM - Feedback received

first consider how the information needs of constituents concerning DRM

The project will not be a disclosures-only project. The objective is to produce a

IFRS today has no comprehensive standard for rate-regulated activities

International Financial Reporting Standards

The views expressed in this presentation are those of the presenter,

What is the Conceptual Framework?

It is a practical tool that assists:

It underpins the decisions made by the IASB when setting Standards