Annual improvements – 2009-2011 and 2010-2012 cycles
In October 2010 the proposed annual improvements were assessed against the proposed enhanced criteria for the annual improvement processed, before those had been approved by the Trustees. This was done because the ED was initially planned to be published in November 2011. Since the publication of the ED was delayed from November 2010 to April 2011, the proposed annual improvements can now be assessed against the finalised criteria approved by the Trustees in February 2011.
The IASB staff explained that the new assessment has not led to any new results. The IASB agreed.
Also, in January 2011 the IASB tentatively decided to include an additional proposed amendment, dealing with enhanced consistency between IAS 1 Presentation of Financial Statements and the Conceptual Framework, into the ED for the 2009-2011 cycle of annual improvements. This decision was confirmed.
The IASB staff provided the IASB members with issues that the Committee recommends should not lead to amendments within the scope of the Annual Improvements process.
The staff presented five issues to the Board and outlined the Committee's decision to recommend that the Board should not amend the relevant standards through the Annual Improvements while asking for the Board's agreement with the Committee's recommendations.
The standards concerned were IFRS 3:
- IFRS 3 Business Combinations and IAS 39 Financial Instruments: Recognition and Measurement – hedging the foreign exchange risk in a business combination
- IFRS 3 Business Combinations– settlement of a pre-existing relationship between the acquirer and the acquiree
- IAS 8 Accounting Policies, Changes in Estimates and Errors – hierarchy of guidance to select an accounting policy
- IAS 36 Impairment of Assets – accounting for impairment testing of goodwill when non-controlling interests are recognised
- IAS 41 Agriculture – Illustrative Examples – presentation of revenue in the profit or loss account.
The agenda paper handed out for this session (link to IASB website) contains background information and a detailed summary of the Committee's reasoning.
The Board IASB members had acquainted themselves with the issues and the Committee's reasoning before the meeting. No further questions were asked and no comments were made. The IASB agreed with the Committee's recommendations.