As the global business landscape continues to evolve, the need for consistent and transparent financial reporting becomes increasingly crucial.
The International Financial Reporting Standards (IFRS), are a set of accounting standards developed by the International Accounting Standards Board (IASB).
Some of these standards are set to undergo significant changes with effect from January 1, 2024.
This articles examines some of these expected changes come January 1, 2024.
1. Effective date of amendments to IAS 1
01 Jan 2024
On 31 October 2022, the IASB issued ‘Non-current Liabilities with Covenants (Amendments to IAS 1)’ to clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments are effective for reporting periods beginning on or after 1 January 2024.
2. Effective date of amendments to IFRS 16
01 Jan 2024
On 22 September 2022, the IASB issued ‘Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)’ with amendments that clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale. The amendments are effective for annual periods beginning on or after 1 January 2024.
3. Effective date of amendments to IAS 7 and IFRS 7
01 Jan 2024
On 25 May 2023, the IASB issued ‘Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)’ to add disclosure requirements, and ‘signposts’ within existing disclosure requirements, that ask entities to provide qualitative and quantitative information about supplier finance arrangements. The amendments are effective for reporting periods beginning on or after 1 January 2024
In conclusion, the above is just an attempt at highlighting the international financial reporting standards (IFRS) that will take effect from January 1, 2024 for the benefit of students, accounting practitioners, business owners and other stakeholders in financial reporting.
References
https://www.iasplus.com/en/events/effective-dates/summary