• IFRS Advisory - Natural Resources
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IFRS Advisory - Natural Resources

04 September 2019

BDO’s IFRS Advisory group in Australia produces guidance to keep clients and staff informed about the latest regulatory and legislative changes, and financial reporting requirements for businesses.

IFRS 9 Financial Instruments

The origins of IFRS 9 Financial Instruments stem from the global financial crisis and is a very significant standard for the banking sector. Whilst the impact on IFRS 9 is not as great on nonfinancial entities, those in the natural resources sector should not ignore its impacts.

The key features of IFRS 9 to be considered by those in the natural resources sector include:

  • Moving from an incurred loss model to a predicted loss model
  • The strict rules as to which financial assets can be recorded at amortised cost
  • Investments in unlisted shares to be recorded at fair value
  • Simplified hedge accounting rules

See the full report here.

Videos

IFRS 9 - Loans to Associates & JV Issues - By Wayne Basford

IFRS 15 Revenue from Contracts with Customers

IFRS 15 Revenue from Contracts with Customers fundamentally changes the financial reporting landscape for how entities recognise revenue.

Most entities will face significant challenges when they prepare their financial statements using this new accounting standard. The changes can be complex and can have effects beyond just the accounting treatment. When adopting IFRS 15, including deciding which transition route to apply, entities need to consider both the commercial impacts on their business as well as any changes that need to be made to business processes and accounting systems. 

Our IFRS 15 experts can help you determine the impact of the new standard on your reported earnings.

Please see the IFRS 15 Fact Sheet for further information including:

  • Commercial and practical considerations
  • A checklist of complex issues
  • The tax impacts; and
  • Consideration of the adoption methodology.

Videos

Disaggregation of Revenue - Mining By Wayne Basford


Disaggregation of Revenue - Oil & Gas By Susan Oldmeadow - Hall


Impacts of IFRS 15 on Revenue Recognition in Mining - By Susan Oldmeadow-Hall

IFRS 16 Leases

IFRS 16 Leases fundamentally changes the financial reporting landscape for how lessees account for operating leases. The new standard effectively removes the operating leases classification and requires all lessees to show a lease liability and a corresponding right-of-use asset for all leases (with some limited exceptions).

Entities need to ascertain what actions need to be taken so as to allow them to prepare their financial statements using this new accounting standard. The changes can be complex and have effects beyond just the accounting treatment.

As the choices made will affect the way the performance of the business is measured and reported, it is vital to consider not only the commercial and practical issues, but also the tax implications of these changes.

Our experts in this area can help you establish the impact of these issues and advise on what actions you should be taking.

Please see the IFRS 16 Fact Sheet for further information including:

  • Commercial and practical considerations
  • A checklist of complex issues
  • The tax impacts; and
  • Consideration of the adoption methodology.

More information on IFRS 16 can be found under Accounting Standards Training and IFRS Publications.

Videos

IFRS Issues For The Natural Resources Sector - What Does Control Mean? By Wayne Basford

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