This edition of China Accounting Alert provides news and updates about IFRS, financial reporting in Mainland China and EY publications.

IASB news and updates

► IASB Update for May 2019

The May 2019 issue of the IASB Update contains the IASB staff summary of the

IASB meeting held from 14 to 16 May 2019 when the board discussed:

► Provisions

► Implementation matters

► Primary Financial Statements

► Amendments to IFRS 17 Insurance Contracts

► Disclosure Initiative

► Management Commentary

► Review of the IFRS for SMEs Standard

► Rate-regulated Activities

► Goodwill and Impairment

June 2019

China Accounting Alert

2China Accounting Alert

Mainland news and updates

► MOF revises Accounting Standard for Business

Enterprises No.12 - Debt Restructuring

In order to regulate the recognition and measurement

of debt restructuring, and the disclosure of the

relevant information, the Ministry of Finance (the

“MOF”) has revised Accounting Standard for Business

Enterprises No.12 - Debt Restructuring (the “revised

standard”), which is applicable to all enterprises

applying Accounting Standards for Business

Enterprises.

The revised standard modifies the definition of debt

restructuring, keeps the consistency of the

requirements on the accounting treatments for

restructuring credits and debts with the new financial

instruments standards and removes the requirements

for contingent receivables and payables to follow the

standard of contingent events. Under the revised

standard, the creditor as a transferee is required to

measure the assets other than financial assets at cost

on initial recognition and consolidate gains or losses on

debt reconstructing and gains or losses on asset

disposal as related gains or losses on debt

reconstructing without distinguishing the above gains

and losses.

► For the debt reconstructing between 1 January

2019 and the effective date of the revised standard,

adjustments should be made in accordance with the

revised standard.

► For the debt reconstructing prior to 1 January

2019, retrospective application is not required by

the revised standard.

The revised standard is effective starting from 17

June 2019.

For further details about the main content of the

revised standard, please refer to EY WeChat: Results

of Internal Coordination of Accounting Standards for

Business Enterprises: Issuance of Revised Accounting

Standard for Business Enterprises No.12 - Debt

Restructuring.

► Shanghai Stock Exchange issues Guidelines on the

Contents and Formats of Announcements on Listing of

Securities on the Sci-Tech Innovation Board

In order to regulate the information disclosure of listed

companies on the Sci-Tech Innovation Board of the

Shanghai Stock Exchange for initial public offering and

depository receipts, the Shanghai Stock Exchange has

issued Circular on Issuing Guidelines on the Contents and

Formats of Announcements on Listing of Securities on the

Sci-Tech Innovation Board. The Shanghai Stock Exchange

has formulated the Guidelines on the Contents and

Formats of Announcements on Initial Public Offering on

the Sci-Tech Innovation Board of the Shanghai Stock

Exchange and the Guidelines on the Contents and Formats

of Announcements on Listing of Depository Receipts on the

Sci-Tech Innovation Board of the Shanghai Stock Exchange

based on the type of securities, respectively. Domestic

technology innovation companies and red-chip companies

shall apply the corresponding guidelines based on their

type of securities.

The above guidelines are effective upon release on 8 June

2019.

EY publications

► IFRS Developments Issue 149: Sale of output by a joint

operator

IFRS Developments Issue 149 summarizes a recent

agenda decision of the IFRS Interpretations Committee

(IFRIC), which clarifies that a joint operator recognizes

revenue only to the extent that it depicts the transfer of

output to its customers in each reporting period (i.e.,

revenue recognized applying IFRS 15).

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China Accounting Alert is our monthly executive update for Mainland China and Hong Kong on recent developments in local and international financial reporting, and related hot topics and emerging issues. China Accounting Alert is designed to help keep you one step ahead by providing easy access to the information you need, all in one place. It is not intended to be a substitute for reading the financial reporting standards or other appropriate authoritative guidance, to which reference should be made for a full understanding of the relevant subject matters.

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