• Accounting Alert

    December 2017

How will the three new accounting standards affect your deals?

Between now and 2020, financial reporting will go through the biggest change this century with the introduction of three new accounting standards, NZ IFRS 9 Financial Instruments, NZ IFRS 15 Revenue from Contracts with Customers and NZ IFRS 16 Leases.

This ‘Triple Threat’ of standards will impact how bad debt provisions are calculated, cause more financial assets to be measured at fair value, introduce very complex rules as to when revenue can be recognised, and effectively scrap the operating lease classification for lessees, bringing all leases, together with the lease liability, onto a lessee’s balance sheet.

Wayne Basford FCA (BDO’s IFRS Leader, Asia Pacific) and Susan Oldmeadow-Hall FCA (Associate Director at BDO Australia), discuss the impacts of these three new standards in a recent Perspective Series article for Chartered Accountants Australia and New Zealand, including how performance measures such as EBITDA will be impacted.