Updating a Reference to the Conceptual Framework – International Accounting Standards Board

Date recorded:

At its meeting on December 12, 2018, the Board discussed:

  1. harmonizing the wording of the proposed exception with existing IFRS 3 requirements for contingent liabilities and tentatively decided to specify that levies within the scope of IFRIC 21 and other obligations within the scope of IAS 37 should be recognized on the acquisition of a business only if they would be identified as present obligations by an entity applying IFRIC 21 or IAS 37;
  2. clarifying existing IFRS 3 requirements for contingent assets and tentatively decided to make it clear that, in applying the IFRS 3 recognition principle, an acquirer does not recognize contingent assets; and
  3. creating transition arrangements for the proposed amendments, including allowing early application, and tentatively decided (a) to require entities to apply the amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after a date to be decided at the completion of the due process; (b) to permit earlier application, without requiring entities that apply the amendments early to disclose that they have done so; and (c) if it issues the proposed amendments before January 1, 2020, to permit entities to apply them for annual reporting periods beginning before January 1, 2020 if at the same time they also apply all the amendments made by Amendments to References to the Conceptual Framework in IFRS Standards. Thirteen of 14 Board members confirmed they were satisfied that the Board has complied with applicable due process steps for developing an exposure draft; and the Board authorized the staff to prepare an exposure draft for balloting. One member was absent. The IASB staff will prepare an exposure draft, with a view to publishing it for comment in the first half of 2019.

Review the IASB Update and podcast on the Board's Web site.

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