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SEC Filings
8-K/A
TERRAFORM POWER, INC. filed this Form 8-K/A on 08/22/2018
Entire Document
 

Saeta Yield, S.A.U. and Subsidiaries
 

None of the aforementioned standards were applied early in the preparation of these consolidated financial statements.

As at today’s date, the Group has analysed the impacts of the application of IFRS 15 and IFRS 9 and continues to assess the impacts of the future application of IFRS 16 “Leases”. The main aspects analysed and the estimated impacts are as follows:

IFRS 15 Revenue from contracts with customers

IFRS 15 establishes a new model for recognising revenue from contracts with customers. The new model is based on a control approach, unlike the current model of IAS 18, which is based on a risks and rewards approach.

This standard will be applicable for years beginning on or after 1 January 2018 and will replace the following standards and interpretations currently in force: IAS 18 Revenue, IAS 11 Construction contracts, IFRIC 13 Customer loyalty programmes, IFRIC 15 Agreements for the construction and real estate, IFRIC 18 Transfers of customers and SIC-31 Revenue - Barter Transactions involving advertising services.

In accordance with the new requirements established in IFRS 15, revenue must be recognised such that the transfer of goods or services to customers is shown for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This core principle is structured in a five-step model framework:

·
Step 1: Identify the contract with a customer
·
Step 2: Identify the performance obligations in the contract
·
Step 3: Determine the transaction price
·
Step 4: Allocate the transaction price to the performance obligations in the contract
·
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.

In relation to this standard, the application of the criteria included in IFRS 15 in the Saeta Group’s business (electricity production), using the modified retrospective approach contemplated in the standard, will not foreseeably entail significant differences in the recognition of income that differ from the model currently applied. The performance obligation is defined as the electricity production and subsequent delivery to the customers.

It should also be noted that the Group did not apply this standard early.

IFRS 9 Financial Instruments

IFRS 9 will replace IAS 39 for years beginning on or after 1 January 2018 and affects both financial assets and financial liabilities.

The amendments to IFRS 9 can be broken down into three areas:

·
Classification and measurement of financial instruments
·
Impairment
·
Hedge accounting

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