The critical International Financial Reporting Standards, which featured significant argument in their application techniques, include:
IFRS 9 Financial Instruments
IFRS 9 replaces IAS 39 Financial Instruments: Recognition and Measurement. The Standard includes requirements for recognition and measurement, impairment, derecognition and general hedge accounting.
In the State of Kuwait, the Ministry of Commerce & Industry issued the Ministerial Resolution No. 603 of 2017 regarding application of the IFRS 9 “Financial Instruments”, which became effective from 1 January 2018.
IFRS 15 Revenues from Contracts with Customers
IFRS 15 replaces IAS 11 “Construction Contracts” and IAS 18 “Revenues”. The standard is effective for annual periods beginning on or after 1 January 2018. IFRS 15 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers. This core principle is achieved through a five-step model framework, i.e. 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 in the contract; and recognize revenue when the entity satisfies a performance obligation.
IFRS 16 Leases
IFRS 16 replaces IAS 17 “Leases” and is effective for annual periods beginning on or after 1 January 2019. This standard requires lessees to account for all leases under a single on-balance sheet model in a similar way to finance leases under IAS 17 with limited exceptions for low-value assets and short-term leases.
IFRS 17 – Insurance Contracts
IFRS 17 supersedes IFRS 4 Insurance Contracts and is effective for annual periods beginning on or after 1 January 2021. This standard establishes principles for the recognition, measurement, presentation, and disclosure of insurance contracts within the financial statements.