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IASB proposes amendments to IFRICs 9 and 16

31 Jan 2009

Based on decisions reached at the IASB's January 2009 meeting, the Board has issued Exposure Draft ED/2009/1 'Post-implementation Revisions to IFRIC Interpretations (Proposed amendments to IFRIC 9 and IFRIC 16)'.

The proposals would amend IFRIC 9 Reassessment of Embedded Derivatives and IFRIC 16 Hedges of a Net Investment in a Foreign Operation as follows:
  • IFRIC 9: Exclude from the scope of IFRIC 9 embedded derivatives in contracts acquired in combinations of entities or businesses under common control or in the formation of a joint venture. The proposed effective date is annual periods beginning on or after 1 July 2009 – in time for the effective date of IFRS 3 (2008).
  • IFRIC 16: Allow entities to designate as a hedging instrument in a hedge of a net investment in a foreign operation an instrument that is held by the foreign operation that is being hedged. The ED proposes to amend IFRIC 16 paragraph 14 by deleting a parenthetical comment: '(except the foreign operation that itself is being hedged)'. The proposed effective date is annual periods beginning on or after 1 October 2008.
The IASB requests comments on the ED by 2 March 2009. Click for: Note that the IASB has redesigned the covers of its pronouncements and proposals and has instituted a new numbering system for EDs (this one is ED/2009/1).