New IFRS

pronouncements not
yet effective
As at December 31, 2022
KPMG IN CANADA

© 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
About this document
We have outlined those Standards, Interpretations and amendments ("new pronouncements“) that have been issued as at December 31, 2022
but are not yet effective for annual periods beginning on January 1, 20221.
Under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, when an entity has not applied a new IFRS that has been
issued but is not yet effective, it is required to disclose this fact and any known or reasonably estimable information relevant to assessing the
possible impact that application of the new IFRS will have on the entity's financial statements in the period of initial application. IAS 8 provides
consideration as to what information should be disclosed, including the title of the new IFRS, the nature of the impending change or changes in
accounting policy, the date by which the application of the IFRS is required and the date at which the entity plans to apply the IFRS, and a
discussion of the impact that initial application of the IFRS is expected to have on the entity's financial statements or a statement that the impact
is not known or reasonably estimable. [IAS 8.30-31]
If an entity prepares condensed interim financial statements in accordance with IAS 34, there is no explicit requirement to disclose the expected
impact of future changes in accounting policies in those condensed interim financial statements. However, an entity could choose to provide
such disclosures in the interim financial statements if the information was deemed to be relevant. In light of securities regulators’ attention given
to transition disclosures and the expectations of investors and other stakeholders, an entity should consider providing updates of previously
disclosed known or reasonably estimable information relevant to assessing the possible impact that the application of new pronouncements
issued but not yet effective will have on its financial statements in the period of initial application.
National Instrument 51-102F1 requires an entity to update their interim MD&A for disclosures included in the annual MD&A, including the
disclosure on the expected impact of future changes in accounting policies.
This document assumes that an entity has already transitioned to IFRS and accordingly does not include any new pronouncements related to
IFRS 1 First-time Adoption of International Financial Reporting Standards.
Entities will need to consider which new pronouncements to cover and the level of detail to be provided. For example, if a new
pronouncement is not expected to be relevant to an entity, then it may conclude that it is not necessary to include disclosure for that
new pronouncement.
To comply with IAS 8.30-31, entities need to consider their own specific facts and circumstances and tailor their disclosures accordingly. For
example, an entity may determine that at the reporting date:
(i) it is not yet known whether the new pronouncement will have a significant impact;
(ii) it is not expected that the new pronouncement will have a significant impact; or
(iii) it is expected that the new pronouncement will have a significant impact.
For (iii), the disclosure of the expected impact will depend on the entity's specific facts and circumstances.
Some entities may determine that the expected financial impact of a particular new pronouncement is not yet known. This may be the case for
new pronouncements for which the effective date is well into the future. However, as the effective date approaches, the impact of the new
pronouncement may become reasonably estimable. Where the impact could be significant, incremental disclosures (e.g. including
quantitative information) may be expected by an entity’s key stakeholders and/or regulators.

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Where an entity’s annual reporting period does not begin on January 1, refer to this Tool to generate a customized list of newly effective and forthcoming IFRS Standards.

© 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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Standards, Interpretations and amendments to published Standards that are not yet effective – current list at December 31, 2022 for
disclosure in IFRS financial statements for annual periods beginning on or after January 1, 2022 (see About this document).

Standard/Interpretation Nature of impending change in accounting policy [IAS 8.31(b)]

[IAS 8.31(a), (c)]

IFRS 17 Insurance Contracts This Standard introduces consistent accounting for all insurance
contracts. The Standard requires a company to measure insurance
On May 18, 2017 the IASB issued IFRS 17 Insurance Contracts.
contracts using updated estimates and assumptions that reflect the
On June 25, 2020, the IASB issued amendments to IFRS 17 aimed at timing of cash flows and any uncertainty relating to insurance
helping companies implement the Standard and to defer the effective contracts. Additionally, IFRS 17 requires a company to recognize
date. IFRS 17 will replace IFRS 4 Insurance Contracts. profits as it delivers insurance services, rather than when it receives
premiums.
On December 9, 2021, the IASB issued a narrow-scope amendment to
the transition requirements in IFRS 17, providing insurers with an option
aimed at improving the usefulness of information to investors on initial
application of IFRS 17 by presenting comparative information about
financial assets, using a classification overlay approach on a basis that is
more consistent with how IFRS 9 will be applied in future reporting
periods.
The new standard and its amendments are effective for annual periods
beginning on or after January 1, 2023.

Classification of Liabilities as Current or Non-current (Amendments For the purposes of non-current classification, the Amendments
removed the requirement for a right to defer settlement or roll over

© 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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 Standard/Interpretation
[IAS 8.31(a), (c)]
to IAS 1)
On January 23, 2020, the IASB issued amendments to IAS 1
Presentation of Financial Statements (the 2020 amendments), to clarify
the classification of liabilities as current or non-current.
On October 31, 2022, the IASB issued Non-current Liabilities with
Covenants (Amendments to IAS 1) (the 2022 amendments), to improve
the information a company provides about long-term debt with covenants.
The 2020 amendments and the 2022 amendments (collectively “the
Amendments”) are effective for annual periods beginning on or after
January 1, 2024. Early adoption is permitted. A company that applies the
2020 amendments early is required to also apply the 2022 amendments.
Definition of Accounting Estimates (Amendments to IAS 8)
On February 12, 2021, the IASB issued Definition of Accounting
Estimates (Amendments to IAS 8).
The amendments are effective for annual periods beginning on or after
January 1, 2023. Early adoption is permitted.
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS
Practice Statement 2)
On February 12, 2021, the IASB issued Disclosure of Accounting Policies –
© 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Nature of impending change in accounting policy [IAS 8.31(b)]
of a liability for at least twelve months to be unconditional. Instead,
such a right must exist at the end of the reporting period and have
substance.
The Amendments reconfirmed that only covenants with which a
company must comply on or before the reporting date affect the
classification of a liability as current or non-current. Covenants with
which a company must comply after the reporting date do not affect
a liability’s classification at that date.
The Amendments also clarify how a company classifies a liability
that includes a counterparty conversion option. The Amendments
state that:
– settlement of a liability includes transferring a company’s own
equity instruments to the counterparty; and
– when classifying liabilities as current or non-current a
company can ignore only those conversion options that are
recognized as equity.
The amendments introduce a new definition for accounting
estimates, clarifying that they are monetary amounts in the financial
statements that are subject to measurement uncertainty. The
amendments also clarify the relationship between accounting
policies and accounting estimates by specifying that a company
develops an accounting estimate to achieve the objective set out by
an accounting policy.
The amendments help companies provide useful accounting policy
disclosures. The key amendments include:
requiring companies to disclose their material accounting
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 Standard/Interpretation Nature of impending change in accounting policy [IAS 8.31(b)]
[IAS 8.31(a), (c)]
(Amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality policies rather than their significant accounting policies;
Judgements).
– clarifying that accounting policies related to immaterial
The amendments are effective for annual periods beginning on or after transactions, other events or conditions are themselves
January 1, 2023. Early adoption is permitted. immaterial and as such need not be disclosed; and
– clarifying that not all accounting policies that relate to
material transactions, other events or conditions are
themselves material to a company’s financial statements.

Deferred Tax related to Assets and Liabilities arising from a Single The amendments narrow the scope of the initial recognition
Transaction (Amendments to IAS 12 Income Taxes) exemption (IRE) so that it does not apply to transactions that give
rise to equal and offsetting temporary differences. As a result,
On May 7, 2021, the IASB issued Deferred Tax related to Assets and
companies will need to recognize a deferred tax asset and a
Liabilities arising from a Single Transaction (Amendments to IAS 12).
deferred tax liability for temporary differences arising on initial
The amendments are effective for annual periods beginning on or after recognition of a lease and a decommissioning provision.
January 1, 2023. Earlier adoption is permitted.

Lease Liability in a Sale and Leaseback (Amendments to IFRS 16 The amendments introduce a new accounting model which impacts
Leases) how a seller-lessee accounts for variable lease payments that arise
in a sale-and-leaseback transaction.
On September 22, 2022, the IASB issued Lease Liability in a Sale and
Leaseback (Amendments to IFRS 16). The amendments clarify that:
The amendments are effective for annual periods beginning on or after – on initial recognition, the seller-lessee includes variable lease

© 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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 Standard/Interpretation
[IAS 8.31(a), (c)]
January 1, 2024. Early adoption is permitted.
Sale or Contribution of Assets Between an Investor and its
Associate or Joint Venture
On September 11, 2014 the IASB issued Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture (Amendments to
IFRS 10 and IAS 28). The amendments were to be applied prospectively
for annual periods beginning on or after January 1, 2016, however, on
December 17, 2015 the IASB decided to defer the effective date for these
amendments indefinitely. Adoption is still permitted.
© 2023 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Nature of impending change in accounting policy [IAS 8.31(b)]
payments when it measures a lease liability arising from a
sale-and-leaseback transaction.
– after initial recognition, the seller-lessee applies the general
requirements for subsequent accounting of the lease liability
such that it recognises no gain or loss relating to the right of
use it retains.
The amendments need to be applied retrospectively, which require
seller-lessees to reassess and potentially restate sale-and-
leaseback transactions entered into since implementation of IFRS
16 in 2019.
The amendments address an acknowledged inconsistency
between the requirements in IFRS 10 and those in IAS 28 (2011),
in dealing with the sale or contribution of assets between an
investor and its associate or joint venture (JV). Specifically, under
the existing consolidation standard the parent recognizes the full
gain on the loss of control, whereas under the existing guidance on
associates and JVs the parent recognizes the gain only to the
extent of unrelated investors’ interests in the associate or JV.
The main consequence of the amendments is that a full gain/loss is
recognized when the assets transferred meet the definition of a
‘business’ under IFRS 3. A partial gain/loss is recognized when the
assets transferred do not meet the definition of a business, even if
these assets are housed in a subsidiary.
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