IAS 32, change in offsetting and cash pooling arrangements presentation following IFRIC agenda decision

Thomson Reuters Corporation – Annual report – 31 December 2016

Industry: media

Note 1: Summary of Business and Significant Accounting Policies (extract)

Changes in accounting policies

In April 2016, the International Financial Reporting Interpretations Committee (“IFRIC”) issued an agenda decision regarding the treatment of offsetting and cash-pooling arrangements in accordance with IAS 32, Financial Instruments: Presentation. This decision provided additional guidance regarding when bank overdrafts in cash-pooling arrangements would meet the requirements for offsetting in accordance with IAS 32. Following this additional guidance, the Company changed its accounting policy and revised the amounts of cash and cash equivalents and current indebtedness in the consolidated statement of financial position and cash and cash equivalents and bank overdrafts in the consolidated statement of cash flow. The impact was as follows:

  • cash and cash equivalents and current indebtedness increased $40 million in equal and offsetting amounts in the consolidated statement of financial position at December 31, 2015; and
  • cash and cash equivalents and bank overdrafts increased $40 million in equal and offsetting amounts in the consolidated statement of cash flow for the year ended December 31, 2015.
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