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.

IASB approves seven new Interpretations

Dec 20, 2001

At its meeting this week, the IASB Board approved the following final Interpretations: SIC-27, Evaluating the Substance of Transactions in the Legal Form of a Lease; SIC-28, Business Combinations - 'Date of Exchange' and Fair Value of Equity Instruments; SIC-29, Disclosure - Service Concession Agreements; SIC-30, Reporting Currency - Translation from Measurement Currency to Presentation Currency (some changes in the wording to a number of paragraphs of the Interpretation are to be made, but the substance of these paragraphs remains unchanged); SIC-31, Revenue - Barter Transactions Involving Advertising Services; SIC-33, Consolidation and Equity Method - Potential Voting Rights Redeemable by Holder; SIC 34, Financial Instruments - Instruments or Rights Redeemable by the Holder (was approved, but an effective date has not yet been set). SIC-32, Intangible Assets - Website Costs, was tentatively approved.

However the Board objected to the lack of convergence of the paragraphs dealing with the graphical design of a website with other similar literature on the topic. For instance under US GAAP, EITF 00-2, Accounting for Website Development Costs, allows for the capitalisation of these costs. The SIC proposed to expense the cost of graphical design as incurred. The SIC was urged to take another look at these specific paragraphs and try to seek further convergence. No objections to the other paragraphs were made.