This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

IFRS Interpretations Committee meeting — 22-23 January 2013

Start date:

End date:

Location: London

About meeting notes

Agenda for the meeting

Tuesday, 22 January 2013 (09:00-17:10)

Introduction

Review of Tentative Agenda Decisions published in September IFRIC Update

  • IFRS 3 Business Combinations — Continuing employment
  • IAS 27 Separate Financial Statements — Non-cash acquisition of non-controlling interest
  • IAS 28 Investments in Associates and Joint Ventures — Impairment of investments in associates in separate financial statements
  • IAS 39 Financial Instruments: Recognition and Measurement — Negative interest rates

Items for continuing consideration

  • IAS 19 Employee Benefits — Measurement of the net DBO for post employee benefit plans with employee contributions
  • IAS 19 Employee Benefits — Determination of discount rate
  • IAS 7 Statement of Cash Flows — Definitions of operating, financing and investing (not discussed)
  • IAS 7 Statement of Cash Flows — Classification of interest paid that is capitalised as part of the cost of an asset (not discussed)
  • IAS 10 Events after the Reporting Period — Reissue of financial statements
  • IAS 40 Investment Property — Accounting for a structure that appears to lack the physical characteristics of a building

    Active Committee projects

    • IAS 16 Property, Plant and Equipment, IAS 38 Intangible Assets, and IFRIC 12 Service Concession Arrangements — Variable payments for the separate acquisition of PPE and intangible assets
    • IAS 1 Presentation of Financial Statements — Disclosures requirements about assessment of going concern

    New Items for initial consideration

    • IFRS 2 Share-based Payment — Timing of the recognition of intercompany recharges

     

    Wednesday, 23 January 2013 (09:00-17:00)

    Due process documents

    • IAS 32 Financial Instruments: Presentation — Put options written over non-controlling interests
    • IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 6 Liabilities arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment — IFRIC Interpretation X Levies

    Annual Improvements

    • IFRS 2 ― Definition of ‘vesting conditions’
    • IFRS 3 ― Accounting for contingent consideration in a business combination
    • IAS 1 ― Current/non-current classification of liabilities
    • IAS 16 & IAS 38 ― Revaluation method - proportionate restatement of accumulated depreciation
    • IAS 24 ― Key management personnel services

    New items for initial consideration

    • IAS 39 Financial Instruments: Recognition and Measurement — Novation of derivatives under EMIR legislation
    • IFRS 7 Financial Instruments: Disclosures — Whether the transfers of financial assets disclosure requirements apply to servicing rights/obligations
    • IAS 28 Investments in Associates and Joint Ventures and IFRS 3 Business Combinations — Associates and common control
    • IAS 7 Statement of Cash Flows — Identification of cash equivalents
    • IAS 29 Financial Reporting in Hyperinflationary Economies — Applicability of IAS 29 to financial statements prepared under the concept of financial capital maintenance in constant purchasing power units (not discussed)

    Administrative session

    • Committee work in progress

         

        Agenda papers from this meeting are available on the IASB's website.


        Related Discussions

        • Introduction

          Jan 22, 2013

          The Chair noted that a number of papers would not be discussed at this meeting as planned (in relation to IAS 29 and IAS 7).

        • IFRS 3 — Continuing employment

          Jan 22, 2013

          The IFRS Interpretations Committee considered its final agenda decision in relation to a request for guidance on the accounting, in accordance with IFRS 3 'Business Combinations', for contingent payments to selling shareholders in circumstances in which those selling shareholders become, or continue as, employees.

        • IAS 27 — Non-cash acquisition of a non-controlling interest

          Jan 22, 2013

          The IFRS Interpretations Committee discussed the agenda decision wording in relation to a request for guidance on the accounting for the purchase of a non-controlling interest (NCI) by the controlling shareholder when the consideration includes non-cash items.

        • IAS 28 — Impairment of investments in associates in separate financial statements

          Jan 22, 2013

          The IFRS Interpretation Committee finalised its agenda decision on the issue of whether, in its separate financial statements, an entity should apply the provisions of IAS 36 'Impairment of Assets' or IAS 39 'Financial Instruments: Recognition and Measurement' to test its investments in subsidiaries, joint ventures, and associates carried at cost for impairment.

        • IAS 19 — Measurement of the net DBO for post-employment benefit plans with employee contributions

          Jan 22, 2013

          The Interpretations Committee discussed the classification of employee benefits that involve employee contributions to a defined benefit plan (i.e. whether such contributions reduce short-term employee benefits cost or whether they reduce post-employment benefits cost) by considering some examples where an employee is required to contribute to a defined benefit plan. The majority of Committee members tentatively agreed to an amendment to IAS 19 in the form of an exception to paragraph 93.

        • IAS 19 — Determination of discount rate

          Jan 22, 2013

          The IFRS Interpretations Committee continued debate on the determination of the rate used to discount post-employment obligations, in particular, whether corporate bonds with an internationally recognised rating lower than “AA” can be considered to be high quality corporate bonds.

        • IAS 10 — Reissue of financial statements

          Jan 22, 2013

          The Committee received and discussed the draft tentative agenda decision developed by the staff (requested at the November 2012 meeting) regarding whether IAS 10 permits an entity to dual date its financial statements.

        • IFRS 2 — Timing of recognition of intercompany recharges

          Jan 22, 2013

          The IFRS Interpretations Committee considered a request for clarification relating to the accounting for intragroup recharges made in respect of share-based transactions, tentatively deciding not to add the item to its agenda.

        • IAS 37 & IFRIC 6 — IFRS Interpretation - Levies

          Jan 23, 2013

          The IFRS Interpretations Committee continued redeliberations on its proposed Interpretation on accounting for levies charged by a public authority on entities that participate in a specific market.

        • IFRS 2 — Definition of vesting conditions

          Jan 23, 2013

          The IFRS Interpretations Committee considered comment letters received on the proposals included in the 2010-2012 cycle of annual improvements to clarify the definition of "vesting conditions", tentatively agreeing to recommend the IASB make the amendments.

        • IFRS 3 — Accounting for contingent consideration in a business combination

          Jan 23, 2013

          The IFRS Interpretations Committee considered comment letters received on the proposals included in the 2010-2012 cycle of annual improvements to clarify certain aspects of accounting for contingent consideration arising in business combinations, tentatively agreeing to recommend the IASB make the amendments, after incorporating changes as recommended by staff.

        • IAS 1 — Current/non–current classification of liabilities

          Jan 23, 2013

          The IFRS Interpretations Committee considered comment letters received on the proposals included in the 2010-2012 cycle of annual improvements to clarify that a liability is classified as non-current if an entity expects, and has discretion, to refinance or roll over an obligation for at least 12 months after the reporting period under an existing loan facility with the same lender, on the same or similar terms. The Committee tentatively agreed to recommend the IASB make the amendments, but also agreed that the Staff should undertake a more comprehensive review of classification.

        • IAS 24 — Key management personnel services

          Jan 23, 2013

          The IFRS Interpretations Committee considered comment letters received on the proposals included in the 2010-2012 cycle of annual improvements to extend the definition of a 'related party' to include management entities and make other amendments to IAS 24. The Committee tentatively agreed to recommend the IASB make the amendments, in the manner recommended by the staff.

        • IAS 39 — Novation of derivatives under EMIR legislation

          Jan 23, 2013

          The Committee considered a request to clarify whether an entity is required to discontinue hedge accounting in a circumstance where the hedging instrument is novated from one counterparty to another following the introduction of new regulations.

        • IAS 28 and IFRS 3 — Associates and common control

          Jan 23, 2013

          The staff agreed that it was not appropriate to apply the scope exemption for business combinations under common control by analogy to the acquisition of an interest in an associate or joint venture under common control. Many Committee members expressed concerns with the unintended consequences with issuing a tentative agenda decision on the basis of this analysis.

        • IAS 7 — Identification of cash equivalents

          Jan 23, 2013

          The Committee discussed the basis of classification of financial assets as cash equivalents at the date of the acquisition of the investment in accordance with IAS 7.

        • Administrative Session — Work in progress

          Jan 23, 2013

          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 January 2013 meeting.