LensCrafters 2015 Annual Report Download - page 112

Notes to the consolidated financial statement as of December 31, 2015 Page 18 di 68
fair value or at the amortized cost. IFRS 9 also provides that embedded derivatives which fall within the scope of IFRS 9 must
no longer be separated from the primary contract which contains them and states that a company may decide to directly
record—within the consolidated statement of comprehensive income—any changes in the fair value of investments which fall
within the scope of IFRS 9. The new model introduced by IFRS 9 eliminates the threshold for the recognition of expected credit
losses, so that it is no longer necessary for a trigger event to have occurred before credit losses are recognized, and requires an
entity to recognize expected credit losses at all times and to update the amount of expected credit losses at each reporting date to
reflect changes in the credit risk of the financial instrument. IFRS 9 contains a three-stage approach to account for credit losses.
Each stage dictates how an entity measures impairment losses. IFRS 9 aligns hedge accounting with risk management activities
undertaken by companies when hedging their financial and non-financial risk exposures. The new standard enables an entity to
use information produced internally as a basis for hedge accounting. IFRS 9 is applicable to periods beginning on or after
January 1, 2018 unless changes after the European Union endorsment.
IFRS 16—Leases. The standard replaces IAS 17 “Leases” and requires all leases to be recorded on the balance sheet as assets
and liabilities. IFRS 16 is applicable to periods beginning on or after January 1, 2019 unless changes after the European Union
endorsement. An entity can apply IFRS 16 before that date but only if it also applies IFRS 15 “Revenue from contracts with
customers”.
Amendments to IFRS 10 and IAS 28—Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture. These amendments clarify the accounting treatment in relation to profits or losses arising from transactions with
joint ventures or associates accounted for using the equity method. The applicability has not been defined yet.