Grandfather: Difference between revisions
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To continue a previous financial accounting treatment - where permitted - for pre-existing contracts or transactions, during a transition period. | To continue a previous financial accounting treatment - where permitted - for pre-existing contracts or transactions, during a transition period. | ||
For example, IFRS 16 (Leases) allows existing leases to continue be accounted for under the previous accounting regime, applying the new | 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. | ||
== See also== | == See also== | ||
* [[IFRS 16]] | * [[IFRS 16]] | ||
Revision as of 22:02, 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.
See also
Other links
Feeling the force of FATCA, The Treasurer, December 2013/January 2014
