Grandfather: Difference between revisions
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imported>Doug Williamson (Remove surplus link and update.) |
imported>Doug Williamson (Remove out of date link.) |
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== See also== | == See also== | ||
* [[IFRS 16]] | * [[IFRS 16]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Compliance_and_audit]] | [[Category:Compliance_and_audit]] | ||
Latest revision as of 22:03, 21 November 2017
1.
To exempt pre-existing arrangements from subsequent more restrictive laws or regulation.
Grandfathering may be applied for the full natural life of pre-existing arrangements, or for a more limited period which is considered long enough to allow new and compliant arrangements to be put in place.
2. Financial reporting
To continue a previous financial accounting treatment - where permitted - for pre-existing contracts or transactions, during a transition period.
For example, the introduction of IFRS 16 (Leases) allows pre-existing leases to continue be accounted for under the previous accounting regime, applying the new rules only to new contracts.
