Sun Life 2015 Annual Report Download - page 107

2. Changes in Accounting Policies
2.A New and Amended International Financial Reporting Standards Adopted in 2015
We have adopted the following amended IFRS in the current year.
In November 2013, Defined Benefit Plans: Employee Contributions was issued to amend IAS 19 Employee Benefits. These narrow-
scope amendments clarify the accounting for contributions by employees or third-parties to defined benefit plans. These amendments
are effective for annual periods beginning on or after July 1, 2014, applied retrospectively. The adoption of these amendments did not
have an impact on our Consolidated Financial Statements.
2.B New and Amended International Financial Reporting Standards to be Adopted in
2016
The following amended IFRS were issued by the IASB and are expected to be adopted by us in 2016.
In May 2014, Accounting for Acquisitions of Interests in Joint Operations was issued, which amends IFRS 11 Joint Arrangements.
These amendments provide guidance on the accounting for an acquisition of an interest in a joint operation when the operation
constitutes a business. These amendments are effective for annual periods beginning on or after January 1, 2016, to be applied
prospectively. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial
Statements.
In May 2014, Clarification of Acceptable Methods of Depreciation and Amortization was issued, which amends IAS 16 Property, Plant
and Equipment and IAS 38 Intangible Assets. These amendments clarify that, in general, revenue based methods of depreciation or
amortization of property, plant and equipment and intangible assets should not be used. These amendments are effective for annual
periods beginning on or after January 1, 2016, to be applied prospectively. We do not expect the adoption of these amendments to
have a material impact on our Consolidated Financial Statements.
In September 2014, the IASB issued Annual Improvements to IFRSs 2012-2014 Cycle, which includes minor amendments to various
IFRSs, with some amendments to be applied prospectively and others to be applied retrospectively. These amendments are effective
for annual periods beginning on or after January 1, 2016. We do not expect the adoption of these amendments to have a material
impact on our Consolidated Financial Statements.
In December 2014, Disclosure Initiative was issued, which amends IAS 1 Presentation of Financial Statements. The amendments are
designed to encourage entities to use professional judgment to determine what information to disclose in the financial statements and
accompanying notes by clarifying the guidance on materiality, presentation, and note structure. The amendments also require separate
disclosure of other comprehensive income attributable to joint ventures and associates, classified by nature. These amendments are
effective for annual periods beginning on or after January 1, 2016. We will provide this disclosure in our 2016 Consolidated Financial
Statements.
In December 2014, Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28) was
issued. The amendments clarify certain accounting requirements related to investment entities, which are entities that evaluate the
performance of their investments on a fair value basis and whose business purpose is to invest funds solely for returns from capital
appreciation, investment income, or both. The amendments include permitting a non-investment entity to retain the fair value
accounting applied by its investment entity joint venture or associate when applying the equity method of accounting. The amendments
are effective for annual periods beginning on or after January 1, 2016, to be applied retrospectively. We do not expect the adoption of
this standard to have an impact on our Consolidated Financial Statements.
2.C New and Amended International Financial Reporting Standards to be Adopted in
2017 or Later
The following new standards were issued by the IASB and are expected to be adopted by us in 2017 or later.
In May 2014, IFRS 15 Revenue from Contracts with Customers (“IFRS 15”) was issued, which replaces IAS 11 Construction Contracts,
IAS 18 Revenue and various interpretations. IFRS 15 establishes principles about the nature, amount, timing, and uncertainty of
revenue arising from contracts with customers. IFRS 15 requires entities to recognize revenue to reflect the transfer of goods or
services to customers measured at the amounts an entity expects to be entitled to in exchange for those goods or services. In
September 2015, the IASB deferred the effective date of IFRS 15 from January 1, 2017 to annual periods beginning on or after
January 1, 2018. IFRS 15 is to be applied retrospectively, or on a modified retrospective basis. Insurance and investment contracts are
not in the scope of this standard. We are currently assessing the impact the adoption of this standard will have on our Consolidated
Financial Statements.
In July 2014, the final version of IFRS 9 Financial Instruments (“IFRS 9”) was issued, which replaces IAS 39 Financial Instruments:
Recognition and Measurement. IFRS 9 includes guidance on the classification and measurement of financial instruments, impairment
of financial assets, and hedge accounting. Financial asset classification is based on the cash flow characteristics and the business
model in which an asset is held. The classification determines how a financial instrument is accounted for and measured. IFRS 9 also
introduces an impairment model for financial instruments not measured at fair value through profit or loss that requires recognition of
expected losses at initial recognition of a financial instrument and the recognition of full lifetime expected losses if certain criteria are
met. In addition, a new model for hedge accounting was introduced to achieve better alignment with risk management activities. IFRS 9
is effective for annual periods beginning on or after January 1, 2018, to be applied retrospectively, or on a modified retrospective basis.
In December 2015, the IASB published an exposure draft that proposes amendments to IFRS 4, which will allow insurance entities to
be temporarily exempt from applying IFRS 9 if certain conditions are met. The IASB is currently developing a standard that will replace
IFRS 4 and the proposed amendments will provide an option for certain insurers to be temporarily exempt from applying IFRS 9 until
the earlier of the effective date of the replacement standard for IFRS 4 and 2021. We are currently assessing the impact the adoption
of these standards will have on our Consolidated Financial Statements.
Notes to Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2015 105