IFRIC 10 — Interim Financial Reporting and Impairment
- IAS 34 Interim Financial Reporting
- IAS 36 Impairment of Assets
- IAS 39 Financial Instruments: Recognition and Measurement
- IFRS 9 Financial Instruments
- IFRIC D18 was issued 12 January 2006. Click for Press release on proposal (PDF 53k).
- Comment deadline 31 March 2006
- IFRIC Interpretation 10 Interim Financial Reporting and Impairment issued 20 July 2006 Click for press release (PDF 63k).
- Effective Date of IFRIC 10: Annual periods beginning on or after 1 November 2006
IAS Plus Newsletter
- August 2006 – Special Edition – IFRIC 10 Interim Financial Reporting and Impairment (PDF 49k)
Summary of IFRIC 10
The Interpretation addresses an apparent conflict between the requirements of IAS 34 and those in other standards on the recognition and reversal in financial statements of impairment losses on goodwill and certain financial assets.
IFRIC 10 concludes that:
- An entity shall not reverse an impairment loss recognised in a previous interim period in respect of goodwill or an investment in either an equity instrument or a financial asset carried at cost.
- An entity shall not extend this consensus by analogy to other areas of potential conflict between IAS 34 and other standards.
Note: Consequential amendments have been made to IFRIC 10 by IFRS 9. Accordingly, entities that have adopted IFRS 9 (mandatory for annual periods beginning on or after 1 January 2015) apply the guidance above only in respect of goodwill and not equity instruments or financial assets carried at cost.
IFRIC 10 is effective for annual periods beginning on or after 1 November 2006. Earlier application is encouraged.