IAS 27 — Impairment of investments in subsidiaries, jointly controlled entities and associates in the separate financial statements of the investor
The IFRIC considered the comment letters received to the proposed amendments to IAS 27 Separate Financial Statements. After a short discussion the IFRIC decided not to finalise the amendments. The amendments would have been relevant if equity instruments are measured at cost. However, the recently-issued IFRS 9 Financial Instruments requires that all equity instruments must be measured at fair value.
Some IFRIC members expressed their view that IAS 36 Impairment of Assets would be the most appropriate standard on which to base impairment of investments in associates in the separate financial statements of the investor. Other IFRIC members disagreed. The IFRIC asked the staff to analyse the issue and provide additional analysis at a future IFRIC meeting with the aim to include the issue in the next year's annual improvements process. Finally, in a preliminary indicative vote, a slight majority of the IFRIC members expressed their preference for the new guidance to be based on IAS 36 requirements.
Some IFRIC members noted that this issue was too broad for an annual improvement and might be accommodated better by a separate Board project that would encompass the whole remit of accounting in the separate financial statements.