Beginning with its 2019 financial statements and subsequent interim financial statements, the Company expects to apply the FASB`s new accounting standards that require material changes in the accounting for operating leases under which the Company lessees, as well as in the method and timing of recognition of certain non-lease income and certain additional charges such as sales commissions. Upon acceptance, the Company will be required, among other things, to account for assets and liabilities for all operating lease obligations with maturities of 12 months or more. These changes will result in some retroactive adjustments. The qualitative impact of these changes and associated retrospective adjustments on the Company`s future financial statements has not yet been determined. The amendments require an entity to disclose its significant accounting policies instead of its significant accounting policies. Other amendments explain how an entity can identify a material accounting policy. Examples of cases where an accounting policy is likely to be material are added. In support of the amendment, the IASB has also developed guidance and examples to explain and demonstrate the application of the « four-step materiality process » described in IFRS Practice Statement 2. Summary: The changes in this update clarify that certain simplifications and optional exceptions in Topic 848 apply to contract amendments and hedge accounting for derivatives affected by the update transition.

When new and revised statements are first applied, this may affect the financial statements, including: Closing considerations when adopting new and revised position papers The changes in this update eliminate the accounting guidelines for creditor DPRs under sub-theme 310-40, Receivables – Problematic debt restructuring by creditors, while improving disclosure requirements for certain Refinancing and creditor restructuring when a borrower is in financial difficulty. In particular, an entity is not required to apply the recognition and measurement guidance for ToRs, but rather the guidance on loan refinancing and restructuring set out in paragraphs 310-20-35-9 to 35-11 to determine whether a change results in a new loan or the continuation of an existing loan. Question 2: Disclosures – Gross depreciation For government entities, the changes in this update require an entity to present gross depreciation for the current period by commitment year for funding net receivables and investments in Credit Agreements under sub-theme 326-20, Financial Instruments – Credit Losses – Measured at Amortized Cost. For more information, see the full text of the update. There is not, and has not been, an explicit GAAP requirement to disclose the expected impact of pending accounting changes required by new accounting standards but not yet in effect. However, in the past, as in SEC Personnel Accounting Bulletin (SAB) 74, « Disclosure of the Impact that Recently Issued Accounting Standards Will Have on the Financial Statements of the Registrant when Adopted in a Future Period » (also known as SAB Topic 11M), the AICPA`s Auditing Standards Board (ASB) has issued Audit Interpretation 3 of AU Section 410 (AU 9410.13-18). , which addressed these reporting considerations. The FASB has issued a new standard that requires significant changes to the method and timing of recognition of certain contract revenue and related additional expenses (p. e.g., sales commissions) as soon as it comes into effect for non-public entities. This standard will be adopted by the Company starting in 2019 and will result in some retrospective adjustments at that time. The effects of this change on the Company`s annual financial statements are not yet foreseeable.

The amendments update an outdated reference to the conceptual framework in IFRS 3 without materially changing the requirements of the standard. The following information reflects developments up to March 18, 2022 and will be updated by June 2022 to reflect new and revised accounting standards to be considered for the years ended March 31, 2022. For financial statements approved after March 2022, we also refer to subsequent versions of this document for all new and revised IFRSs that have been issued in addition and that may require disclosure in the financial statements in accordance with IAS 8:30. The amendment allows entities that apply IFRS 17 and IFRS 9 at the same time to present comparative information on a financial asset as if the classification and measurement requirements of IFRS 9 had already been applied to that financial asset. IFRS 17 requires that insurance liabilities be measured at a current settlement value and provides a more consistent valuation and presentation approach for all insurance contracts. These requirements are intended to achieve the objective of uniform and principled accounting for insurance contracts. IFRS 17 replaces IFRS 4 Insurance Contracts effective January 1, 2023. Determining the nature, timing and extent of information that would be appropriate to permit a reasonable understanding requires considerable judgment as to what would be material to the likely users of the financial statements. For private companies, the guidelines provided by SEC employees for public entities (see below) can be consulted for ideas, but these guidelines should not replace good judgment in the particular circumstances of clients.

Even if the impact of a prescribed change is determined to be likely to be material in a subsequent period, disclosure of a financial statement by a private or public entity reporting under GAAP could be much shorter than is generally expected of SEC staff in an SEC issuer`s MD&A (MD&A) (see box for practical examples).