IFRS Interpretations Committee work in progress
The staff provided the Committee with an update on the current status of issues that are in progress but not to be discussed during the Committee’s July 2012 meeting. The Committee deferred work on three new issues and five outstanding issues which will be discussed at future meetings. These issues include:
- IFRS 3 outstanding issue requesting clarification on whether an asset with relatively simple associated processes meets the definition of a business in accordance with IFRS 3.
- IAS 12 outstanding issue requesting clarification of the calculation of deferred tax in circumstances where the entity holds a subsidiary which has a single asset within it.
- IAS 41 Agriculture outstanding issue requesting clarification of paragraph 25 of IAS 41 regarding the use of a residual method to arrive at the fair value of biological assets physically attached to land if the biological assets have no separate market but an active market exists for the combined assets.
- IAS 19 new issue requesting clarification of the scope of paragraph 93 of IAS 19 (2011).
- IFRS 3 new issue requesting clear guidelines for Special Purpose Acquisition Company (SPAC)-related merger transactions.
- IAS 27 and IFRIC 17 Distribution of Non-cash Assets to Owners new issue requesting clarification on the accounting for the purchase of a non-controlling interest when the consideration includes non-cash items.
- IAS 16 Property, Plant and Equipment outstanding issue requesting clarification on how to account for contingent pricing for the outright purchase of a single item of property, plant and equipment or an intangible asset. The staff are monitoring this issue in the context of developments on the IASB’s leases project.
- IAS 2 Inventories outstanding issue requesting clarification on the accounting for long-term supply contracts of raw materials when the purchaser of the raw materials agrees to make prepayments to the supplier. The staff are monitoring this issue in the context of developments on the IASB’s revenue recognition project.
One Committee member asked if the Committee would be considering the issue of push-down accounting at a future meeting. The Committee Chair noted that there were no plans to take this issue forward at this time. This is based on the results of a questionnaire the Committee Chair had circulated to National Standard Setters regarding the prevalence of push-down accounting in their jurisdiction.