IASB publishes proposals for amendments under its annual improvements project (cycle 2015-2017)
Jan 12, 2017
On January 12, 2017, the International Accounting Standards Board (IASB) published an exposure draft "Annual Improvements to IFRS Standards 2015–2017 Cycle". It contains proposed amendments to three International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project. Comments are requested by April 12, 2017.
The IASB uses the annual improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.
The ED proposes the following amendments:
Standard | Subject of proposed amendment |
---|---|
IAS 12 Income Taxes |
To clarify that the requirements in the existing paragraph 52B (to recognise the income tax consequences of dividends where the transactions or events that generated distributable profits are recognised) apply to all income tax consequences of dividends by moving the paragraph away from existing paragraph 52A that only deals with situations where there are different tax rates for distributed and undistributed profits |
IAS 23 Borrowing Costs |
To clarify that when an asset is ready for its intended use or sale, an entity treats any outstanding borrowing made specifically to obtain that asset as part of the funds that it has borrowed generally |
IAS 28 Investments in Associates and Joint Ventures |
To clarify that an entity applies IFRS 9 Financial Instruments to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied |
ED/2017/1 Annual Improvements to IFRS Standards 2015–2017 Cycle does not contain proposed effective dates for the proposed amendments to IAS 12 and IAS 23 as the intention is to decide on these after the exposure period. However, it is proposed that the amendments to IAS 28 should be effective for annual periods beginning on or after January 1, 2018 to align their effective date with the effective date of IFRS 9.
As for the proposed amendments to IAS 28, the ED contains a dissenting opinion as one Board member disagrees amending IAS 28 as proposed without also specifying the types of interests that an entity accounts for using the equity method and the types of interests that an entity accounts for applying IFRS 9.
Review the following additional information: