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FORTUNA SILVER MINES INC. | 2014 ANNUAL REPORT
IFRS 11 Joint Arrangements (Amendment)
The amendment to IFRS 11
Joint Arrangements
adds new guidance on how to account for the acquisition of an interest
in a joint operation that constitutes a business. The amendments specify the appropriate accounting treatment for such
acquisitions. The amendments are effective for annual periods beginning on or after January 1, 2016, with earlier
application permitted. Transactions before the adoption date are grandfathered.
IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets (Amendment)
The amendment to IAS 16
Property, plant and equipment
and IAS 38
Intangible assets
on depreciation and amortisation
clarifies that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because
revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption
of the economic benefits embodied in the asset. The amendment also clarified that revenue is generally presumed to be
an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset. The
amendment is effective for annual periods starting on or after January 1, 2016, with earlier application permitted.
IFRS 15 Revenue from Contracts with Customers
IFRS 15,
Revenue from Contracts with Customers
specifies how and when revenue should be recognized as well as
requiring more informative and relevant disclosures. The standard supersedes IAS 18 Revenue, IAS 11 Construction
Contracts and a number of revenue-related interpretations. Application of the standard is mandatory and it applies to
nearly all contracts with customers: the main exceptions are leases, financial instruments and insurance contracts.
IFRS 15 is effective for annual periods starting on or after January 1, 2017, with earlier application permitted.
IFRS 9 Financial Instruments - Classification and Measurement
IFRS 9,
Financial Instruments:
IFRS 9 introduces the new requirements for the classification, measurement and de-
recognition of financial assets and financial liabilities. The amendments are effective for annual periods beginning on or
after January 1, 2018, with earlier application permitted.
IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) (Amendment)
The amendment to IFRS 9
Financial Instruments
which includes the new hedge accounting requirements and some related
amendments to IAS 39
Financial Instruments; Recognition and Measurement
and IFRS 7
Financial Instruments;
Disclosures.
IFRS 9 (2013) also replicates the amendments in IAS 39 in respect of novations. The amendments allow
for early adoption of the requirement to present fair value changes due to own credit on liabilities designated as at fair
value through profit or loss to be presented in other comprehensive income. The amendments are effective for annual
periods beginning on or after January 1, 2018, with earlier application permitted.
IFRS 9 Financial Instruments - Expected Credit Losses
On 24 July 2014, the International Accounting Standards Board (IASB) issued the final version of IFRS 9
Financial
Instruments,
bringing together the classification and measurement, impairment and hedge accounting phases of the
IASB’s project to replace IAS 39
Financial Instruments: Recognition and Measurement
and all previous versions of IFRS
9. The amendments are effective for annual periods beginning on or after January 1, 2018. Entities will also have the
option to early apply the accounting for own credit risk-related fair value gains and losses arising on financial liabilities
designated at fair value through profit or loss without applying the other requirements of IFRS 9.
Other Data
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